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TMI Blog1995 (9) TMI 406X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 2(g) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter called the-Act), Therefore, the Tribunal constituted under the Act would have no jurisdiction to try the suit and that consequently, the suit be not transferred to it. (2) The question, as would be borne out from the preceding paragraph, revolves around the meaning of the term "debt" as defined in section 2(g) of the Act. However, before I proceed to examine that definition let me first refer to the essentials of plaintiffs claim. (3) It appear that the defendant, who is a practicing advocate of this court, was on the panel of lawyers of the plaintiff bank and in that capacity he had been entrusted from time to lime with some of its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 institutions 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". (6) What does the definition of "debt" show? It shows that debt means any liability in cash or otherwise whether secured or unsecured or whether payable under a decree or order of any c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect". True, it may not itself be an 'object' of the bank to take premises on rent either for its own office or for the residence of its officers but then banking business cannot be run without an office and its staff cannot perform its duties efficiently without residential accommodation. The provision for such accommodation would thus be a necessary part of "business activity" of the Bank. And, once this position is accepted, the deposit of rents with regards to such premises would also necessarily form part of "business activity". Since the amount claimed had been allegedly handed over to the defendant for deposit towards such rent, the entire transaction would fall within the ambit of the words "busi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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