Statutory tribunal remedies limit writ intervention in recovery and insolvency disputes, while forum shopping may attract costs.
Writ jurisdiction under Articles 226 and 227 should ordinarily not be used to consolidate or expedite proceedings before Debts Recovery Tribunals or to stay personal insolvency proceedings before the NCLT where effective remedies exist under the RDB Act and IBC. Requests for directions within the statutory forums, without challenging a specific tribunal order, should be pursued through the DRT, DRAT or NCLT. Distinct recovery and insolvency frameworks reduce concerns of conflicting adjudications. Bypassing those remedies, failing to diligently pursue tribunal proceedings, and seeking an unsupported transfer may amount to forum shopping and abuse of process, warranting dismissal with costs.
Issues: (i) whether a writ petition under Articles 226 and 227 of the Constitution of India could be entertained to direct consolidation and expeditious disposal of applications pending before the Debts Recovery Tribunals and to stay personal insolvency proceedings pending before the National Company Law Tribunal; (ii) whether the petitioner's conduct justified dismissal with costs on the ground of abuse of process and forum shopping.
Issue (i): Whether a writ petition under Articles 226 and 227 of the Constitution of India could be entertained to direct consolidation and expeditious disposal of applications pending before the Debts Recovery Tribunals and to stay personal insolvency proceedings pending before the National Company Law Tribunal.
Analysis: The availability of efficacious statutory remedies before the DRT, the DRAT and the NCLT, together with the self-contained scheme of the RDB Act and the IBC, required judicial restraint in the exercise of writ jurisdiction. The petition did not challenge any specific order of the tribunals and instead sought directions that properly belonged to the statutory forums. The apprehension of conflicting adjudications was held to be unfounded in view of the distinct statutory framework governing insolvency proceedings and the remedies available within those forums.
Conclusion: The request to intervene in the pending tribunal proceedings was rejected and the writ relief was held not to be maintainable in the circumstances.
Issue (ii): Whether the petitioner's conduct justified dismissal with costs on the ground of abuse of process and forum shopping.
Analysis: The Court found that the petitioner had not shown diligence before the concerned tribunal forums, had attempted to bypass the statutory scheme, and had also moved a transfer request without any legal basis. This conduct was treated as a calculated attempt to select a more favourable forum rather than to pursue a legitimate jurisdictional grievance.
Conclusion: The petition was dismissed with costs, and the conduct was characterised as an abuse of process.
Final Conclusion: The extraordinary writ jurisdiction was declined in favour of allowing the statutory proceedings to continue before the competent tribunals, and the petitioner was saddled with costs for misuse of process.
Ratio Decidendi: High Courts should ordinarily not interfere under Articles 226 and 227 where effective statutory remedies exist before specialised tribunals, especially in recovery and insolvency matters, and such jurisdiction cannot be used to bypass the statutory scheme or to secure reliefs that fall within the domain of those tribunals.