TMI Blog1999 (4) TMI 633X X X X Extracts X X X X X X X X Extracts X X X X ..... thereunder that the tribunal had no jurisdiction to entertain suit in question in view of the nature of the reliefs prayed for and as such, plaint should be returned to the plaintiff for being filed in the High Court itself. The tribunal disposed of the applications filed by the defendants holding that the tribunal has the jurisdiction to decide the claim of the plaintiff. The three defendants, thereafter filed three separate applications under Article 227 of the Constitution of India, challenging the orders passed by the tribunal. By the impugned order, the High Court set aside the order of the tribunal on a finding that under the Act, the tribunal gets jurisdiction to entertain and decide applications from the banks and financial institutions for recovery of debts due to such banks and financial institutions but the plaintiff's claim in question cannot be held to be a 'debt' as defined in Section 2(g) of the Act inasmuch as the claim is of an undetermined sum, which is required to be ascertained upon an inquiry to be conducted by the tribunal. The High Court was also of the view that the suit as framed, is one for damages and compensation which is required to be quan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ully justified in coming to the conclusion that the tribunal has no jurisdiction to entertain the suit in question. In view of the rival stand of the parties, the short question that arises for consideration is, as to whether the said claim of the plaintiff can be said to be a claim for recovery of debts due to the plaintiff as provided under Section 17(1) of the Act. The answer to this question in turn would depend upon the meaning of the expression 'debt' as defined in Section 2(g) of the Act. Before we examine the two provisions referred to above, it is to be borne in mind that the procedure for recovery of debts due to the banks and financial institutions which was being followed, resulted in a significant portion of the funds being blocked. To remedy the locking up of huge funds, the Finance Minister introduced The Recovery of Debts Due to Banks and Financial Institutions Bill, 1993 , which was passed by the Parliament and the Act has come into existence. The statement and objects of the Act as reflected in the Bill introduced by the Minister in the Parliament may be extracted hereunder in extenso: Banks and financial institutions at present experience consider ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal thereto. The expression 'debt' has been defined in Section 2(g) to mean: Sec.2(g) : 'debt' means any liability(inclusive of interest) which is alleged as due from any person by a bank or a financial institution or by a consortium of banks or financial institutions during the course of any business activity undertaken by the bank or the financial institution or the consortium under any law for the time being in force, in cash or otherwise, whether secured or unsecured, or whether payable under a decree or order of any civil court or otherwise and subsisting on, and legally recoverable on, the date of the application. Section 3(1) provides for establishment of tribunal which reads as under: Section3(1): The Central Government shall, by notification, establish one or more Tribunals, to be known as the Debts Recovery Tribunal, to exercise the jurisdiction, powers and authority conferred on such Tribunal by or under this Act. Section 17(1) provides the jurisdiction, powers and authority of tribunal which reads as under: Section 17(1) : A Tribunal shall exercise, on and from the appointed day, the jurisdiction, powers and authority to entertain and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can retain the sum of the contractor, even before the claim of the Union against the contractor is adjudicated upon. We do not think that this decision is of any assistance for adjudicating the lis in question in the case in hand. Mr. Sanghi, the learned Senior Counsel, appearing for the appellant relied upon the decision of this court in Kesoram Industries Cottton Mills Ltd. vs. Commissioner of Wealth Tax (Central) Calcutta, reported in 1966(2) SCR 688, in support of his contention that the plaintiff's claim would be a debt. In the aforesaid case, the court was considering as to what is the meaning of the expression 'debt' as it was required to ascertain whether a liability to pay income tax and super tax on the income of the accounting year would be a 'debt' within the meaning of Section 2(m) of the Wealth Tax Act. This decision to our mind will be not of much assistance inasmuch as the expression 'debt' has been defined in the Act in question though the general meaning of 'debt' may be of a persuasive value in interpreting the expression 'debt' in the Act but it is too well settled that where an expression in any Act has been defi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is imperative that the entire averments made by the plaintiff in the plaint have to be looked into and then find out whether notwithstanding the specially created tribunal having been constituted, the averments are such that it is possible to hold that the jurisdiction of such tribunal is ousted. With the aforesaid principle in mind, on examining the averments made in the plaint, we have no hesitation to come to the conclusion that the claim in question made by the plaintiff is essentially one for recovery of a debt due to it from the defendants and, therefore, it is the tribunal which has the exclusive jurisdiction to decide the dispute and not the ordinary civil court. In this view of the matter the High Court was in error to hold that the dispute in question is not entertainable by the tribunal under Section 17 of the Act. We, accordingly set aside the impugned order of the Calcutta High Court and direct that the suit in question which stood transferred to the tribunal, constituted under the Act and was registered as Transferred Application No.163 of 1996 be disposed of by the tribunal in accordance with law. These appeals are allowed but in the circumstances, without any orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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