M/S TRANSCORE versus UNION OF INDIA AND ANR.

M/S TRANSCORE versus UNION OF INDIA AND ANR.

Withdrawal of the original application before the DRT under Section 19(1) of the Recovery of Debts Due to Banks and Financial Institutions Act is not a precondition for recourse to measures under Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act; the NPA Act provides additional and not inconsistent remedies, and fees as prescribed by Government Order 2004 continue to apply until specific rules are framed.

Parties
Appellant: MIS TRANSCORE; Respondent: UNION OF INDIA; Respondent: ANR.
Jurisdiction
India
Judgment Date
29 November 2006
Procedural Posture
Civil Appeal / Supreme Court Judgment
Outcome
Borrower's appeal/I.A. dismissed; Banks/Fis' appeal/I.A. allowed.
Legal Topics
Securitisation, Enforcement of Security Interest, Debt Recovery, Doctrine of Election, Possession Under Securitisation Act, Court Fees Under DRT Rules
Banking Law Financial Law Securitisation Enforcement of Security Interest Debt Recovery Doctrine of Election Possession Under Securitisation Act Court Fees Under DRT Rules

Case Brief

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Parties

MIS TRANSCORE

Appellant

UNION OF INDIA

Respondent

ANR.

Respondent

Procedural Posture

Civil Appeal / Supreme Court Judgment

Legal Issues

  1. 1 Whether withdrawal of the Original Application (O.A.) under Section 19(1) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 is a condition precedent for taking recourse to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
  2. 2 Whether recourse to Section 13(4) of NPA Act contemplates actual possession of secured assets by banks/financial institutions.
  3. 3 Whether ad valorem court fee prescribed under Rule 7 of the DRT (Procedure) Rules, 1993 is payable on an application under Section 17(1) of the NPA Act in the absence of any rule framed under that Act.

Ratio Decidendi

Withdrawal of the original application before the DRT under Section 19(1) of the Recovery of Debts Due to Banks and Financial Institutions Act is not a precondition for recourse to measures under Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act; the NPA Act provides additional and not inconsistent remedies, and fees as prescribed by Government Order 2004 continue to apply until specific rules are framed.

Court Disposition

Borrower's appeal/I.A. dismissed; Banks/Fis' appeal/I.A. allowed.

Orders

  • Interim order for continuation of stay on confirmation of sale extended for four weeks from the date of judgment in Civil Appeal No. 3228 of 2006.
  • No order as to costs.