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2019 (11) TMI 1766 - HC - Indian LawsContinuity of recovery proceedings which are pending before the Recovery Officer pursuant to the Recovery Certificate granted by the learned DRT in favour of respondent No.1 - whether the DRT committed any error in passing the impugned order? HELD THAT:- As a neat question of law has been raised before us, we straightway go to the decision of the Supreme Court in the case of KSL & Industries Limited [2014 (12) TMI 1023 - SUPREME COURT]. KSL was in appeal before the Supreme Court by way of a reference made by a two Judge Bench, which heard the matter and held that the appeal deserved to be allowed and that the judgment and order passed by the High Court, which was impugned, was liable to be set aside. However, in view of a difference of opinion having arose on the interpretation of Section 34 of the Act, 1993, the matter came to be referred for decision to a larger Bench. The dictum of law as laid in KSL & Industries Ltd. is very clear. The provisions of SICA, in particular, Section 22 shall prevail over the provision for Recovery of Debts in the RDDB Act. If that be the position of law, then the learned senior counsel is right in his submission that the impugned order could not have been passed by the DRT. The decision of the Supreme Court in the case of Managing Director (supra) was in context with a civil suit filed by the respondent for recovery of a particular amount in the court of the Civil Judge. The Supreme Court looked into Section 22 of the Act, 1985 and held that a suit would be barred when an inquiry under Section 16 of the SICA is pending - It is a well-settled principle of law that a judgment and decree passed by a court or tribunal, lacking inherent jurisdiction, would be a nullity. The impugned order passed by the DRT as well as the recovery certificate and the order of attachment passed by the Recovery Officer is not sustainable in law - Application allowed.
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