IN THE HIGH COURT OF KARNATAKA AT BENGALURU ON THE 28TH DAY OF MARCH, 2019 BEFORE THE HON'BLE MR. JUSTICE RAVI MALIMATH AND THE HON'BLE MR. JUSTICE S. G. PANDIT WRIT PETITION NO.57902 OF 2015 (GM-DRT) BETWEEN:
MRS. B S GOWRAMMA WIFE OF MALLIKARJUNARADHYA AGED ABOUT 50 YEARS BANAVADI VILLAGAE SOLUR HOBLI, MAGADI TALUK BENGALURU RURAL DISTRICT.
... PETITIONER (BY SRI. NAGARAJ DAMODAR, ADVOCATE) AND:
1. M/S. FINA GROUP REPRESENTED BY ITS PROPRIETOR SRI.B.P.SRINIVAS AGE:MAJOR NO.88, 11TH MAIN, 6TH SECTOR HSR LAYOUT BENGALURU -560034.
2. B.P.SRINIVAAS SON OF B.G.PUTTASWAMY GOWDA AGE:MAJOR PROPRIETOR, M/S. FINA GROUP NO.300, 3RD MAIN ROAD, 2ND CROSS A BLOCK, RHCS LAYOUT ANNAPOORNESHWARI NAGAR BENGALURU-560091.
3. THE CENTRAL BANK OF INDIA REPRESENTED BY ITS BRANCH MANAGER NO.78, J.C.ROAD BENGALURU -560002.
4. THE REGISTRAR DEBT RECOVERY APPELLATE TRIBUNAAL 4TH FLOOR, INDIAN BANK CIRCLE OFFICE 55, ETHIRAJ SALAI CHENNAI-600008.
... RESPONDENTS (BY SRI.EASHWAR PRASAD B, ADVOCATE FOR RESPONDENT No.3 VIDE ORDER DATED 28.03.2019 NOTICE TO RESPONDENT Nos.1 AND 2 IS HELD SUFFICIENT VIDE ORDER DATED 06.09.2016 NOTICE SERVED TO RESPONDENT No.4 IS HELD SUFFICIENT) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED ORDER DATED 18.09.2015 PASSED AT ANNEX-A AND CONSEQUENTLY SET ASIDE THE IMPUGNED ORDER DATED 02.11.2015, ANN-B REJECTING THE APPEAL (IN O.A.596/2009 ON THE FILE OF DRT, BENGALURU) BY THE DEBTS RECOVERY APPELLATE TRIBUNAL - AT CHENNAI (R-4) AND THERE BY ALLOW THE I.A.862/2014 IN AIR 127/2014 ON THE FILE OF THE DEBT RECOVERY APPELLATE TRIBUNAL - CHENNAI (R-4) BY ORDERING TO RESTORE THE APPEAL TO THE ORIGINAL FILE.
THIS PETITION COMING ON FOR ORDERS THIS DAY, RAVI MALIMATH J., PASSED THE FOLLOWING:
ORDER This petition is filed being aggrieved by the order dated 02.11.2015 passed by the Debt Recovery Appellate Tribunal, Chennai in AIR 127 of 2014. In terms of the said order, the appellant/writ petitioner was directed to deposit 25% of the Principal amount of Rs.27,48,098.46p as a condition precedent for numbering of the Appeal.
2. Learned counsel for the petitioner submits that the petitioner is neither a borrower nor a guarantor and her property has been wrongly mortgaged. Further more, the provision of law as on the date the order was passed entail waiver of the pre-deposit. The impugned order was passed on 18.09.2015.
3. The proviso to Section 21 was amended with effect from 01.09.2016. Prior to the amendment, the proviso included that the Appellate Tribunal may, for the reasons to be recorded in writing, waive or reduce the amount to be deposited under this section. Therefore, this unamended provision of law that would stand applicable to the writ petitioner herein.
4. In view of the reasons assigned by the writ petitioner that the petitioner is neither a borrower nor a guarantor, we find it just and expedient that the pre-deposit amount be waived since law as it stood on that day entailed waiver or reduction of the amount of pre-deposit.
5. For the aforesaid reasons, the petition is allowed.
The order dated 18.09.2015 in AIR 127/2014 passed by the Debt Recovery Appellate Tribunal, Chennai is set aside.
Payment of pre-deposit by the petitioner is waived.
The appeal shall stand restored to file.
The Appellate Tribunal shall consider the appeal on merits in accordance with law.
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JUDGE JUDGE mpk/-* ct:bms