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of <h1>Debts Recovery Act does not affect pending proceedings; Corporation's rights safeguarded; original petition remains valid.</h1> <h3>Industrial Finance Corporation of India Versus Allied International Products Ltd. and Ors.</h3> The court held that the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, did not impact the pending proceedings involving the ... - Issues:1. Interpretation of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993.2. Application of section 31 of the Act to transfer pending cases to the Tribunal.3. Examination of the overriding effect of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, on existing laws.Analysis:1. The judgment involves the interpretation of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, in a case where the Industrial Finance Corporation of India filed a petition for the recovery of outstanding amounts from a borrower. The Act established a Tribunal to handle debt recovery matters and restricted the jurisdiction of other courts under section 17 and 18. The key issue was whether the proceedings fell within the purview of the Act.2. The court examined the applicability of section 31 of the Act, which mandated the transfer of pending cases to the Tribunal if the cause of action would fall within its jurisdiction. The petitioner argued that as a financial institution seeking debt recovery, the proceedings should be transferred. However, the respondent raised concerns regarding a counter-claim and pending Supreme Court decisions on the matter.3. The judgment delved into the overriding effect of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, on existing laws, particularly the Industrial Finance Corporation Act, 1948. Section 34 of the Act clarified that its provisions were additional and not derogatory to the listed Acts. The court emphasized that the new Act did not limit or impair the existing rights of the Industrial Finance Corporation, ensuring prompt debt recovery without hindrance.4. Ultimately, the court held that the provisions of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, did not affect the pending proceedings involving the Industrial Finance Corporation. The judgment emphasized the importance of protecting the Corporation's rights and facilitating efficient debt recovery processes. Therefore, the proceedings were not transferred to the Tribunal, and the original petition remained valid under the Industrial Finance Corporation Act, 1948.
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