Advertisement

Bombay HC Takes Suo Motu Cognizance To Secure Interest Of Litigants

INDUSLAW team comprising of Amit Jajoo and Sushmita Gandhi, Partners and Anamika and Darpan Bhatia, Senior Associates, led by Sr. Counsel Dr. B. Saraf and Counsel, R. Gupta, advised and represented MSTC Ltd. in a Writ Petition seeking urgent orders for stay of recovery proceedings, as no Chairperson has been appointed in the Debts Recovery Appellate Tribunal (DRAT), Mumbai since 15 September 2021.c

Standard Chartered Bank had initiated execution proceedings after the Debts Recovery Tribunal (DRT) passed a decree against MSTC, based on certain statements allegedly made in MSTC’s balance sheets.

MSTC filed an appeal challenging the decree, before DRAT. During the hearing of the appeal, the Ld. Chairperson of the DRAT retired and the appeal could not be heard finally.  During this period, Standard Chartered Bank proceeded with the execution proceedings. As no new Chairperson was appointed in Mumbai nor was any in-charge DRAT assigned the matters of DRAT Mumbai, MSTC was advised to file a Writ Petition before the High Court of Bombay, as it was left remediless, despite having a statutory right to appeal and being heard. 

The High Court, during the hearing of MSTC’s petition, realised that many other litigants are also suffering due to non-appointment of the Chairperson in DRAT, Mumbai. The High Court therefore sought assistance of the Additional Solicitor General and heard the petition filed by MSTC. During the hearing, the High Court was informed that none of the DRAT’s in other States are functional and appointments for DRAT’s are pending. 

The Hon’ble Court looking at the plight of litigants and appellants took suo moto cognizance of all such matters and invoked its powers to secure the interest of the litigants who have the right to appeal under the provisions of the SARFAESI Act and RDB Act. The High Court, by its Order dated 2 December 2021, granted complete protection to the litigants who have filed appeals from the orders of DRT’s situated in Mumbai and stayed such orders till 4 January 2022. The High Court has also directed such litigants to make statutory deposit of 25% as required for availing stay. The High Court while passing this Order further observed that, the litigants are forced to approach the writ courts for judicial review which entails limited scrutiny on settled parameters. 

INDUSLAW team comprising of Amit Jajoo and Sushmita Gandhi, Partners and Anamika and Darpan Bhatia, Senior Associates, led by Sr. Counsel Dr. B. Saraf and Counsel, R. Gupta, advised and represented MSTC Ltd. in a Writ Petition seeking urgent orders for stay of recovery proceedings, as no Chairperson has been appointed in the Debts Recovery Appellate Tribunal (DRAT), Mumbai since 15 September 2021.


Tags assigned to this article:

Around The World

Advertisement