Avneesh Chandan Gadgil & Anr. v. Oriental Bank of Commerce & Ors.
M. R. SHAH, J.
1. Feeling aggrieved and dissatisfied with the impugned judgment
and order dated 16.02.2016 passed by the High Court of Delhi in Writ
Petition (C) No. 4207 of 2015 by which the High Court has allowed the
said appeal preferred by the respondent No. 1 herein - Ba nk and has
quashed and set aside the order passed by the Debts Recovery Appellate
Tribunal (hereinafter referred to as “DRAT”) by which the learned DRAT
quashed and set aside the order passed by the Debts Recovery Tribunal
condoning the delay in preferring the appeal under Section 30 of the
Recovery of Debts due to Banks and Financial Institutions Act, 1993
(hereinafter referred to as “the Act, 1993”), the original respondent has
preferred the present appeal.
2. The issue involved in the present appeal is in a very narrow
compass.
3. The short question, which is posed for consideration before this
Court is whether Section 5 of the Limitation Act shall be applicable to
the appeal against the order of Recovery Officer under Se ction 30 of
the Act, 1993?
4. It is not in dispute that there was a delay of 31 day s in the
appeal preferred by the respondent No. 1 – Bank preferred against the
order of Recovery Officer. The Debts Recovery Tribunal condoned the
delay by applying Section 5 of the Limitation Act, 1963. The DRAT set
AVNEESH CHANDAN GADGIL & ANR. v. ORIENTAL BANK
OF COMMERCE & ORS.
aside the order passed by the Debts Recovery Tribunal con doning the
delay applying Section 5 of the Limitation Act observing that Section 5
of the Limitation Act shall not be applicable to the appeal under Section
30 of the Act, 1993 against the order passed by the Recovery O fficer.
By the impugned judgment and order, the High Court has set aside the
order passed by the DRAT relying upon the decision of this Court in the
case of A.R. Venugopal Alias R. Venugopal Vs. Jotheeswaran and
Ors., (2016) 16 SCC 588 .
5. Feeling aggrieved and dissatisfied with the impugned judgment
and order passed by the High Court restoring the order pas sed by the
Debts Recovery Tribunal condoning the delay applying Section 5 of the
Limitation Act to the appeal under Section 30 of the Act, 1993, the original
respondent – Bank has preferred the present appeal.
6. We have heard the learned counsel for the respective par ties
at length.
7. At the outset, it is required to be noted that the issue involved in
the present appeal is now not res integra in view of the direct decision of
this Court in the case of International Asset Reconstruction
Company of India Limited Vs. Official Liquidator of Aldrich
Pharmaceuticals Limited and Ors., (2017) 16 SCC 137. Dealing
with the appeal under Section 30 of the Act, 1993 after 2000 amendment,
it is held that Section 5 of the limitation Act is specifically excluded so
far as appeal under Section 30 of the Act, 1993 is concerned. W hile
holding so, in paragraph 13, it is observed and held as under:-
“13. The RDB Act is a special law. The proceedings are befo re
a statutory Tribunal. The scheme of the Act manifestly provides
that the legislature has provided for application of the Limitation
Act to original proceedings before the Tribunal under Section 19
only. The Appellate Tribunal has been conferred the power to
condone delay beyond 45 days under Section 20(3) of the Act.
The proceedings before the Recovery Officer are not before a
Tribunal. Section 24 is limited in its application to proc eedings
before the Tribunal originating under Section 19 only. The exclusion
of any provision for extension of time by the Tribunal in preferring
an appeal under Section 30 of the Act makes it manifest that the
legislative intent for exclusion was express. The applic ation of
Section 5 of the Limitation Act by resort to Section 29(2) of the
531
Limitation Act, 1963 therefore does not arise. The prescribed period
of 30 days under Section 30(1) of the RDB Act for preferring an
appeal against the order of the Recovery Officer therefore cannot
be condoned by application of Section 5 of the Limitation Act.”
8. At this stage, it is required to be noted that the decision of this
Court in the case of A.R. Venugopal Alias R. Venugopal (supra) ,
which has been relied upon by the High Court while passing the impugned
judgment and order has been expressly overruled by this Court in the
decision in the case of International Asset Reconstruction Company
of India Limited (supra).
9. Thus, as per the law laid down by this Court in the afor esaid
case and even otherwise considering Section 30 of the Act, 1993, we
are also of the view that Section 5 of the Limitation Act sha ll not be
applicable to the appeal against the order of Recovery Officer as provided
under Section 30 of the Act, 1993. Therefore, the High Court has
committed a grave error in quashing and setting aside the order passed
by the DRAT and in restoring the order passed by the Debts Recovery
Tribunal condoning the delay in preferring the appeal under Section 30
by applying Section 5 of the Limitation Act.
10. In view of the above and for the reasons stated above, t he
present appeal succeeds, the impugned judgment and order pass ed by
the High Court and the order passed by the Debts Recovery Tr ibunal
condoning the delay in preferring the appeal under Section 30 of the Act,
1993, preferred against the order passed by the Recovery Off icer are
unsustainable and deserve to be quashed and set aside and are accordingly
quashed and set aside. The order passed by the DRAT setting aside the
order passed by the Debts Recovery Tribunal is restored . Appeal is
allowed accordingly. However, in the facts and circumstances of the
case, there shall be no order as to costs.
Devika Gujral Appeal allowed.
AVNEESH CHANDAN GADGIL & ANR. v. ORIENTAL BANK
OF COMMERCE & ORS. [M. R. SHAH, J.]