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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Judges
Acts
  • The Limitation Act, 1963 (36 of 1963)
  • Section 30, Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (the Act)
  • Sections 20 and 24 of the Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Judges
Acts
  • The Limitation Act, 1963 (36 of 1963)
  • Section 30, Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (the Act)
  • Sections 20 and 24 of the Act
Smart Summary

Factual and Procedural Background

The appellants filed an appeal under Section 30 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (“the Act”) against an order of the Recovery Officer. The statutory limitation period for such an appeal is 30 days, but the appellants were 15 days late. The Debts Recovery Tribunal (“DRT”) condoned the delay. The respondent challenged that order before the High Court, which held that the Limitation Act, 1963 does not apply to proceedings before the DRT and therefore set aside the condonation order. The appellants then approached the Supreme Court, which granted leave and heard the matter finally.

Legal Issues Presented

  1. Whether the Debts Recovery Tribunal possesses statutory power to condone delay in filing an appeal under Section 30 of the Act.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Supreme Court focused on the statutory scheme of the Act. It highlighted Section 24, which explicitly states that the provisions of the Limitation Act, 1963 “shall, as far as may be, apply” to applications made to a Tribunal. The Court reasoned that this clause empowers the DRT to invoke Section 5 of the Limitation Act and condone delays when sufficient cause is shown. The High Court’s contrary view—that the Limitation Act is inapplicable—was therefore inconsistent with the clear legislative mandate. Because Section 24 confers the power to condone delay, the DRT had acted within its jurisdiction in allowing the 15-day delay.

Holding and Implications

ORDER SET ASIDE AND APPEAL ALLOWED. The Supreme Court quashed the High Court’s decision and restored the DRT’s order condoning the delay. The matter is remitted to the DRT, which must decide the appeal on merits within three months of receiving the Court’s order. The ruling clarifies the applicability of Section 24 of the Act but does not establish new precedent beyond reaffirming the statutory text.

    A.R. Venugopal Alias R. Venugopal v. Jotheeswaran And Others

    Order

    1. Leave granted. We have heard the matter finally with the consent of the learned counsel appearing for the parties. The short question which is involved in this appeal is as to whether the Debts Recovery Tribunal (hereinafter referred to as “DRT”) has power to condone the delay in filing the appeal?

    2. The appellants have filed the appeal against the order of the Recovery Officer before DRT under Section 30 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as “the Act”, for short). There is a limitation period of 30 days provided for filing such an appeal. However, there was a delay of 15 days in filing the appeal which was condoned by DRT. This order was challenged before the High Court and the High Court has set aside Civil Revision Petition No. 1745 of 2012 the order of DRT on the ground that the Limitation Act, 1963, does not apply to the proceedings before DRT. This opinion of the High Court is contrary to the specific provisions contained in Sections 20 and 24 of the Act which reads as under:

    “20. Appeal to the Appellate Tribunal.—(1) Save as provided in sub-section (2), any person aggrieved by an order made, or deemed to have been made, by a Tribunal under this Act, may prefer an appeal to an Appellate Tribunal having jurisdiction in the matter.
    (2) No appeal shall lie to the Appellate Tribunal from an order made by a Tribunal with the consent of the parties.
    (3) Every appeal under sub-section (1) shall be filed within a period of forty-five days from the date on which a copy of the order made, or deemed to have been made, by the Tribunal is received by him and it shall be in such form and be accompanied by such fee as may be prescribed:
    Provided that the Appellate Tribunal may entertain an appeal after the expiry of the said period of forty-five 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 Tribunal concerned.
    (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.
    ***
    24. Limitation.—The provisions of the Limitation Act, 1963 (36 of 1963), shall, as far as may be, apply to an application made to a Tribunal.”

    3. It is clear from the aforesaid Section 24 that specific power is given to DRT to condone the delay. Therefore, the High Court order Civil Revision Petition No. 1745 of 2012 is clearly unsustainable and is set aside. The appeal is remitted back to DRT for deciding on merits. Having regard to the nature of the dispute involved, we direct DRT to decide the appeal preferred against the order of the Recovery Officer within a period of 3 months from the date of receipt of the copy of this order.

    4. The appeal stands disposed of accordingly.

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    Comments

    A.R. Venugopal Alias R. Venugopal v. Jotheeswaran And Others
    (Jul 1, 2015)