- Court
- Supreme Court of India
- Decided
- 11 May 1999
- Bench
- B. N. Kirpal, S. Rajendra Babu
- Result
- Petition dismissed.
Headnote
Recovery of Debts Due to Banks' and Financial Institutions Act. 1993; Debi., Recovery Tribunal-Suit instituted by Bank-Grant of stay of recovery proceedings as a matter of course-Propriety of-Proceeding initiated in the State of Madhya Pradesh-Held Allahabad High Court has
Headnote as published in the Digital Supreme Court Reports by the Supreme Court of India. Paragraph references point to the judgment below.
Judgment
We see no reason why the High Courts in such matters filed by the defendants in suits instituted by the banks before the Debt Recovery Tribunal should more or less as a matter of course grant stay of proceedings before the Tribunals. The very purpose of setting up the 'tribunals will be lost by granting stay merely because there is challenge to the notification constituting the Tribunal. In the present case, the High Court has rightly come to the conclusion that as the proceedings were initiated in the State of Madhya Pradesh, the Allahabad High Court had no jurisdiction.
The special leave petition is dismissed.
Source: Supreme Court of India, Digital Supreme Court Reports, via the Indian Supreme Court Judgments open dataset (CC BY 4.0). Text was extracted from the official PDF and may contain conversion errors. Check the official PDF before relying on it.