Recovery Tribunal procedure: dismissal for missing accounts record cannot replace adjudication on merits, and supervisory correction may follow.

An appellate tribunal cannot direct dismissal of a pending recovery application merely because the statement of accounts was not filed within time, as that record is evidentiary and the Tribunal may proceed on the available material and decide the case on merits. Such a direction curtails the Tribunal's adjudicatory function, exceeds appellate jurisdiction, and offends natural justice. Supervisory jurisdiction under Article 227 may be invoked to correct the resulting jurisdictional error and grave injustice, leaving the matter to be determined before the Tribunal on merits with the accounts placed on record.

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Issues: Whether the Appellate Tribunal could direct dismissal of the original application for non-filing of the statement of accounts, and whether such direction was liable to be interfered with in supervisory jurisdiction.

Analysis: The statutory scheme under Section 17 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 vests the Tribunal with jurisdiction to entertain and decide recovery applications, while Section 19 provides the procedure for adjudication. The statement of accounts was only evidentiary material and, even if not filed within time, the Tribunal could proceed on the available record and decide the matter on merits. Directing dismissal of the original application for that default amounted to curtailing the Tribunal's adjudicatory function, exceeded appellate jurisdiction, and caused prejudice contrary to the principles of natural justice. The High Court held that supervisory jurisdiction under Article 227 of the Constitution of India could be invoked to correct such manifest jurisdictional error and grave injustice.

Conclusion: The direction to dismiss the original application could not be sustained and was set aside.

Final Conclusion: The impugned appellate order was quashed, and the matter was left to proceed before the Tribunal on merits with the statement of accounts to be placed on record.

Ratio Decidendi: An appellate tribunal cannot compel dismissal of a pending recovery application for non-filing of evidentiary records; where such a direction exceeds jurisdiction and violates natural justice, the High Court may intervene under Article 227 to restore adjudication on merits.

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