TMI Blog2003 (2) TMI 357X X X X Extracts X X X X X X X X Extracts X X X X ..... stir and an unusual ado to judicial discipline but also provokes and in a way accelerates the institutional syllogistic rethinking to have a deeper and greater probe into the arena of controversy. The spinal issue spiralled to this Court when the writ petitions were instituted assailing the orders passed by the Debts Recovery Tribunal (in short the Tribunal ) on the foundation that Debts Recovery Appellate Tribunal (for short the Appellate Tribunal ) had already pronounced a verdict that against and interlocutory order passed under the Recovery of Debts Due to Banks and financial Institutions Act, 1993 (for brevity the Act ) no appeal lies. The learned Single Judge felt that a complex situation had surfaced inasmuch as this Court in the case of Earnest Health Care Ltd. v. Debts Recovery Tribunal [W.P. No. 4955 of 2000] placing reliance on the decisions rendered in the cases of Kavita Pigments Chemicals (P.) Ltd. v. Allahabad Bank AIR 2000 Pat. 43, Shoes East Ltd. v. Allahabad Bank AIR 1997 Delhi 325 and Bank of India v. Baroda Cables [1999] ISJ (Bom.) 309 had expressed the view that any order passed by the Debts Recovery Tribunal is appealable. In that backgro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the affidavits, but, objecting the procedure adopted by the Tribunal by which it had received the evidence on affidavits. Being dissatisfied by the aforesaid order, the petitioner knocked at the doors of this Court in W.P. No. 660/2001 in which the petitioner questioned the defensibility of the order passed by the Tribunal and simultaneously raised the issue of validity of the provisions contained in Regulations 31 and 32 of the Debts Recovery Tribunal Regulation of Practice, 1998 (hereinafter referred to as the Regulations ) on many a ground. This Court vide order dated 14-2-2001 dismissed the petition holding that the vires had been considered in Kishorilal Loomba v. Debts Recovery Tribunal [2001] 1 MPLJ 400 and the provisions in question have been held to be valid. It is contended that after passing of the aforesaid order, the petitioners by way of abundant caution filed an application for cross-examination of the deponents as the said prayer was not made in the earlier application. In the application, the petitioners set out the reasons why cross-examination was sought for. The Bank filed a reply in opposition to the said prayer. It is alleged that the prayer was made be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herein, namely, M/s. Dhar Industries Ltd. and others forming the subject-matter of W.P. No. 894 of 2001 was dismissed relying on the earlier judgment passed in Kishorilal Loomba s case ( supra ). The said order was assailed before the Supreme Court and their Lordships of the Apex Court have dismissed the Special Leave Petition in limine . However, for the sake of completeness, we will advert to the same. We reiterate, we are not delving into the niceties and subtleties of the issue whether the said matter can be dealt with in a reference of this nature but as the learned counsel argued for some time, we are inclined to devote some space to put the controversy to rest, more so, in view of the latest Apex Court decision rendered in the case of Union of India v. Delhi High Court Bar Association AIR 2002 SCW 1347. Thus, three questions emerge for adjudication : ( i )Whether interim order passed by the Tribunal is appealable before the Appellate Tribunal? ( ii )Whether Regulations 31 and 32 of the Regulations famed by the Tribunal are invalid and deserve to be so declared ? ( iii )Whether the impugned order deserves to be interfered with in exercise of jurisdiction under Ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the realm of objective law and that cannot govern the prescription in the main statute. It is also urged by them the Act was enacted with an avowed purpose, and recourse of appeal as provided in the 1994 Rules are to apply mutatis mutandis even in respect of an appeal preferred against the interim or interlocutory order barring an appeal which is referred to under section 21 of the Act. In support of their contentions, they have placed reliance on the decisions rendered in the cases of Kavita Pigments Chemicals (P.) Ltd. ( supra ), Baroda Cables ( supra ), Shoes East Ltd. ( supra ), Sandeep Singh Sandhu v. Debt Recovery Tribunal II (1999) BC 556, M.C. Mittal v. Central Bank of India [L.P.A. No. 9 of 1996 dated 18-1-1996]. 6. To appreciate the rival submissions raised at the bar, it is appropriate to refer to the statement of objects and reasons. We are referring to the same only for the purpose of appreciating why the aforesaid Act was enacted by the Parliament and to understand the basic requisite. The enactment was made for establishment of Tribunals for expeditious adjudication and recovery of debts due to banks and financial institutions and for matters ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve days if it is satisfied that there was sufficient cause for not filing it within that period. (4) On receipt of an appeal under sub-section (1), the Appellate Tribunal may, after giving the parties to the appeal, an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against. (5) The Appellate Tribunal shall send a copy of every order made by it to the parties to the appeal and to the concerned Tribunal. (6) The appeal filed before the Appellate Tribunal under sub-section (1) shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal finally within six months from the date of receipt of the appeal." 8. Section 21 deals with deposit of amount of debt due, on filing appeal. The said provision reads as under : " Deposit of amount of debt due, on filing appeal. When an appeal is preferred by any person from whom the amount of debt is due to a bank or a financial institution or a consortium of banks or financial institutions, such appeal shall not be entertained by the Appellate Tribunal unless such person has deposited with the Appellate Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... akes a deposit of 75 per cent of the amount of debt as determined by the Tribunal under section 19 of the said Act. 40. This requirement of pre-deposit of amount determined is a common feature in many fiscal statutes and the said requirement of pre-deposit is only to be enforced in a case where the determination has been made by the Tribunal under section 19 of the said Act. Therefore, the expression such appeal has been used. The requirement of such pre-deposit of the amount determined cannot be enforced by the Appellate Tribunal in connection with an appeal where no such determination has been made as is in the instant case. So this point has no substance." (p. 50) 11. In the case of Baroda Cables ( supra ) a Division Bench of Gujarat High Court in paragraph 14 held as under : "14. Looking to the above provisions, there is no doubt in our minds that there is no provision in the Act stating that an appeal would lie before an Appellate Tribunal only when the order is final in nature. On the contrary, looking to the above provisions in their entirety, it is clear that any order passed by the Debt Recovery Tribunal is subject to challenge under section 20 before the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the Tribunal made under the Act which affects the rights and liabilities of the parties.Obviously, any interim order passed under section 19(6) of the Act by the Tribunal, if it affects the rights or liabilities of any party, will be subject to appeal under section 20(1) of the Act." 14. In the case of M.C. Mittal ( supra ) a Division Bench of Delhi High Court after referring to sections 17 and 20 in paragraph 3 expressed the view as under : "3. A reading of sub-clause (2) of section 20 shows that the Appellate Tribunal shall exercise its powers in relations any order made or deemed to have been made by the Tribunal. The words any order would include interlocutory orders which substantially affect the rights of the parties and those words are not confined to the final disposal of the application filed under section 19. Similarly, sub-clause (1) of section 20 reads the words an order and that would also mean that an appeal lies against interim orders which substantially affect the rights of the parties and those words are not confined to an order which finally disposes of the application before the Tribunal." 15. In this context, we may profitably refer to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubject to the aforesaid limitation, an appeal lies to the Rent Control Tribunal from every order passed by the Controller under the Act. Even an interlocutory order passed under section 37(2) is an order passed under the Act and is subject to appeal under section 38(1) provided it affects some right or liability of any party. Thus, an order of the Rent Controller refusing to set aside an ex parte order is subject to appeal to the Rent Control Tribunal. 4. Similar considerations have induced the Courts to give a limited construction on the apparently wide words of other statutes conferring rights of appeal. Section 202 of the Indian Companies Act, 1913 confers a right of appeal from any order or decision made or given in the matter of the winding up of a company by the court. In Shankarlal Agarwal v. Shankarlal Poddar [1964] 1 SCR 717 at p. 736 this Court decided that these words, though wide, would exclude merely procedural orders or those which did not affect the rights or liabilities of parties." (p. 800) 16. After noticing the aforesaid pronouncements we think it condign to deal with another facet of submission of Mr. Kishore Shrivastava that no rules having been p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed by the submission of Mr. Shrivastava that it is only section 20 which confers the power on the Tribunal to entertain an appeal. Section 17(2) uses the word "any order made" and section 20(1) uses the word "an order made". Though Mr. Shrivastava has made herculean endeavour to point out the difference between the terminology used in section 17 and section 20 on the backdrop that in one provision the word an is used and in another provision the word any is used. There is no difference between the two terms, namely an and any . If the words used are understood in proper perspective taking into consideration the text and the context, we are of the considered view that the expressions used in sections 17 and 20 are not repugnant to each other. In fact, they point out to a complete harmonious whole leading to a specific, precise, appropriate destination i.e. the tenability of appeal from an order or any order. The distinction which is sought to be drawn by Mr. Shrivastava on the basis of the use of the word, in our considered opinion, is absolutely fallacious. The High Court of Delhi in the case of M.C. Mittal ( supra ) accepted the interpretation that any order would mea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f appeals. Any litigant who intends to have the luxury of preferring an appeal has to be guided by the procedure prescribed. He cannot be allowed to dictate terms and put forth a specious proponement that he has to pay a less fee or for that matter the fee provided under Rule 8 is only applicable to appeals preferred against the final adjudication but not against the interim orders. The acceptation of this nature would defeat the science of interpretation. Judged from all this angle, we are inclined to hold that an appeal lies against any order or an order which substantially affect some rights or liabilities of the party and is not confined to the final order alone. 20. The second limb of argument of Mr. Shrivastava relates to validity of Regulations 31 and 32. We are dealing with this facet as an argument was canvassed, for sake of completeness and put the controversy to rest. The Regulations 31 and 32 occurring in Chapter XI of the Regulations read as under : "31. Examination of witnesses and the issue of Commissions ( a ) Evidence shall be on affidavits. ( b ) Provisions of section 22 sub-section (2) of the Act and the relevant provisions of the Code of Civil Procedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de of Civil Procedure. The learned counsel has laid emphasis on paragraphs 12 and 14 of the decision rendered in the case of Virendra Kumar Saklecha ( supra ) to highlight that an opportunity has to be given to the other side to test the genuineness and veracity of sources of information. The learned counsel has commended to the decision rendered in the case of Kalpanaben M. Shah ( supra ) to show that the right of cross-examination cannot be throttled or thwarted. He has also drawn inspiration from the decision rendered in the case of Rajinder Pershad ( supra ) wherein the Apex Court in paragraph 4 has indicated that right to cross-examination is a valuable right. The other decisions which have been cited are on the same line. It is contended by Mr. Shrivastava the Regulations totally curtail the rights of the defendants in relation to cross-examination of witnesses by stating that evidence shall be on affidavits. The learned counsel has submitted that when the averments made in the application are combatted or resisted there has to be grant of permission for cross-examination. It is proponed by him that sub-rule 6 of Rule 12 casts an obligation on the Tribunal to permit cro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng bound by the provisions of the Code of Civil Procedure. 18. On behalf of some of the respondents, it was contended that on a correct interpretation of Rule 12(6) of the Debts Recovery Tribunal (Procedure) Rules, 1993, wherever any party desires the production of a witness for cross-examination, then his evidence could not be taken by way of affidavit but it would be mandatory for the Tribunal to require the production of the witness. It was submitted that this provision is in pari materia with Order 19, Rule 1 of the Code of Civil Procedure, and the view taken by some of the Tribunals that a party does not have a right to cross-examine a witness, whose evidence is taken on affidavit, is not correct." Thereafter, their Lordships referred to section 22 and Rule 12 and eventually in paragraphs 21 and 23 held as under : "21. As a result of the amendments made in the Act and the Rules, the position which would emerge is that section 19(1) of the Act requires the filing of an application by a bank or a financial institution for the recovery of debt to be made before a Tribunal having territorial jurisdiction. On receipt of the application, summons are issued to the defendant w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the affidavit of a witness being read at the hearing. The said proviso refers to the desire of an applicant or defendant for the production of a witness for cross-examination. In the setting in which the said proviso occurs, it would appear to us that once the parties have filed affidavits in support of their respective cases, it is only thereafter that the desire for a witness to be cross-examined can legitimately arise. It is at that time, if it appears to the Tribunal, that such a witness can be produced and it is necessary to do so and there is no desire to prolong the case that it shall require the witness to be present for cross-examination and in the event of his not appearing, then the affidavit shall not be taken into evidence. When the High Courts and the Supreme Court in exercise of their jurisdiction under Art. 226 and Art. 32 can decide questions of fact as well as law merely on the basis of documents and affidavits filed before it ordinarily, there should be no reason as to why a Tribunal, likewise, should not be able to decide the case merely on the basis of documents and affidavits before it. It is common knowledge that hardly any transaction with the Bank would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. Bank of India dated 21-7-2000, W.P. No. 4475 of 2000, (2001)(1) MPLJ 400, M/s Shree Santoshi Pipe Works v. Debts Recovery Tribunal dated 9-8-2000, W.P. No. 4764 of 2000 M/s Maheshwari Agencies v. Debts Recovery Tribunal, Jabalpur dated 19-8-2000 and W.P. No. 4775 of 2000 Omprakash Mantri v. Debts Recovery Tribunal dated 19-8-2000. 11. In the aforesaid background, statement that Regulations 31 and 32 of the Regulations of Practice 1998 are in excess of the authority under section 22 of the Act is not sustainable. Construing them in manner submitted by the petitioners would make the purpose of the Act and the scheme redundant. Rather harmonious and purposeful meaning has to be assigned to the provisions of the Act, Rules and Regulations to achieve the basis purpose of the legislation." [Emphasis supplied] 24. In our considered view, the view expressed by the Division Bench of this Court is absolutely in consonance and unquestionably in accord with the view expressed later on by the Apex Court in the case of Delhi High Court Bar Association ( supra ). The perception of the learned counsel in regard to the term appears is inconceivable even by conferring the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it also contains elaborate provisions dealing with the tenure, salaries, allowances, retirement age of Judges as well as the mechanism for selecting Judges to the superior Courts. The inclusion of such elaborate provisions appears to have been occasioned by the belief that, armed by such provisions, the superior Courts would be insulated from any executive or legislative attempts to interfere with the making of their decisions. The Judges of the Superior Courts have been entrusted with the task of upholding the Constitution and to this end, have been conferred the power to interpret it. It is they who have to ensure that the balance of power envisaged by the Constitution is maintained and that the Legislature and the executive do not, in the discharge of their functions, transgress constitutional limitations. It is equally their duty to oversee that the judicial decisions rendered by those who man the subordinate Courts and Tribunals do not fall foul of strict standards of legal correctness and judicial indpendence. The constitutional safeguards which ensure the independence of the Judges of the superior judiciary are not available to the Judges of the subordinate judiciary or to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by an order of an Authority under the Income-tax Act has an adequate alternative remedy which he may resort to against the improper action of the authority and he does not avail himself of that remedy of the High Court will require a strong case to be made out for entertaining a petition for a writ. Where the aggrieved party has an alternative remedy the High Court would be slow to entertain a petition challenging an order of a taxing authority which is ex facie with jurisdiction. A petition for a writ of certiorari may lie to the High Court, where the order is on the face of it erroneous or raises question of jurisdiction or of infringement of fundamental rights of the petitioner. . . ." (p. 647) 29. In the case of A.V. Venkateswaran v. Ramchand Sobhraj Wadhwani AIR 1961 SC 1506 the Apex Court expressed thus : "The wide proposition that the existence of an alternative remedy is a bar to the entertainment of a petition under article 226 of the Constitution unless ( 1 ) there was a complete lack of jurisdiction in the officer or authority to take the action impugned, or ( 2 ) where the order prejudicial to the writ petitioner has been passed in violation of the princ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n rightly. . . ." (p. 1134) 31. In this regard, the decision rendered in the case of Shiv Shanker Dal Mills v. State of Haryana AIR 1980 SC 1037 is worthnoting. In the aforesaid decision, their Lordships spoke thus : "Where public bodies, under colour of public laws, recover people s money, later discovered to be erroneous levies, the Dharma of the situation admits of no equivocation. There is no law of limitation, especially for public bodies, on the virtue of returning what was wrongly recovered to whom it belongs. Nor is it palatable to our jurisprudence to turn down the prayer for high prerogative writs, on the negative plea of alternative remedy since the root principle of law married to justice, is ubi jus ibi remedium. " (p. 1038) Their Lordships further proceeded to lay down as under : "6. Article 226 grants an extraordinary remedy which is essentially discretionary, although founded on legal injury. It is perfectly open for the Court, exercising this, flexible power, to pass such order such as public interest dictates and equity projects. Courts of equity may, and frequently do, go much further both to give and withhold relief in furtherance of the publi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itution of India when an alternative remedy has not been resorted to is only a self-imposed limitation adopted more for the necessity of propriety than as a mandatory requirement of law and that such a policy has no application where the act complained of is that of violation of the principles of natural justice, or one of lack of jurisdiction. Even apart from it, nothing prevents the prerogative of the High Court to issue a writ of certiorari in a fit case where recourse to the alternative remedy would be unnecessary, lengthy and circuitous and the question involved for interpretation would be more appropriately decided by the High Court, such as cases involving purely questions regarding interpretation of law. . . ." (p. 93) 35. In this context we may profitably quote a passage from the decision rendered in the case of Reg. v. Hillington, London Borough Council 1974-1 QB 720, wherein Lord Widgery, C.J. stated thus : "It has always been a principle that certiorari will go only where there is no other equally effective and convenient remedy. . . The statutory system of appeal is more effective and more convenient than application for certiorari and the principal r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case. 37. In view of the aforesaid pronouncement of law, it is discernible that list is not exhaustive but only illustrative. It would depend upon the facts and circumstances of each case. In the present case, we are of the considered opinion, the extraordinary jurisdiction of this Court under Articles 226 and 227 of the Constitution of India is not warranted to be exercised. If the rights or liabilities of the petitioners have been substan-tially affected, they may approach the Tribunal. However, as the writ petition was pending before this Court, we can only grant leave to the petitioners to prefer an appeal within a period of 6 weeks and the Tribunal shall not dismiss the appeal on the ground that it is barred by limitation. At the beginning, we stated that we will be stating the facts in each case. In every case, on a proper scanning, it transpires that the petitioners filed an application seeking grant of privilege to cross examine the deponent. The prayer having been declined, they have visited this Court. Thus, in essence the grievance pertains to refusal of permission of cross-examination. Hence the directions issued herein shall apply to all the cases. 38. In view ..... X X X X Extracts X X X X X X X X Extracts X X X X
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