IN THE HIGH COURT OF JUDICATURE AT MADRAS Dated: 06.01.2009 Coram: The Honourable Mr.S.J.MUKHOPADHAYA, ACTING CHIEF JUSTICE and The Honourable Mr.Justice V.DHANAPALAN Writ Petition No. 28342 of 2008 and M.P.Nos. 1 & 2 of 2008 V.K.Seshasayee …. Petitioner Vs. 1. Debts Recovery Appellate Tribunal, Ethiraj Salai, Egmore, Chennai – 600 008. 2. UCO Bank, (Formerly United Commercial Bank) Chennai Main Branch, 328, Thambu Street, Chennai – 600 001. 3. Indian Overseas Bank, Vadalur Branch, 20, Panruti Road, Vadalur – 607 302. 4. Syndicate Bank, Chennai Main Branch, 69, Armenian Street, Chennai – 600 001. … Respondents Petition filed under Article 226 of the Constitution of India praying for the issue of a Writ of Certiorari calling for the records of the 1st respondent which culminated in the order dated 29.10.2008 in I.A.No.308 of 2008 in M.A.No.244 of 2008 and quash the same. For Petitioner :::: Mr. A.L.Somayaji, Senior Counsel For Mr.Sriram https://hcservices.ecourts.gov.in/hcservices/ For Respondents 2 to 4 :::: Ms.Abitha Banu for M/s.Surana & Surana O R D E R (The Order of the Court was made by Hon’ble The Acting Chief Justice) This writ petition has been preferred by the petitioner/guarantor against the interim conditional order dated 29th October, 2008 passed by the Debt Recovery Appellate Tribunal, Chennai in I.A.No.308 of 2008 in M.A.No.244 of 2008. By the said order, the Debt Recovery Appellate Tribunal directed the petitioner to deposit a sum of Rs.1 crore with the first respondent/UCO Bank therein in two equal instalments each at Rs.50 lakhs and on such deposit, the bank has been directed to keep the said amount in an interest earning no-lien account and granted interim stay till 01.12.2008. 2. As the case can be disposed of on a short point, it is not necessary to discuss all the facts, expect the relevant one. 3. An original suit in C.S.No.595 of 1996 was jointly filed by three banks namely, UCO Bank, Indian Overseas Bank and Syndicate Bank for recovery of the amount due. However, on constitution of Debt Recovery Tribunal, the case was transferred to the aforesaid Tribunal and numbered as T.A.No.673 of 1997 and is pending before the Debt Recovery Tribunal-I, Chennai. The petitioner filed an application in I.A.No.465 of 2000 in T.A.No.673 of 1997 to cross examine one of the plaintiffs’/respondents witness namely, an officer of the bank. The said application having came to be dismissed, the petitioner preferred an appeal under Section 20 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 before the Debt Recovery Appellate Tribunal, Chennai seeking for stay of all further proceedings and the impugned conditional stay order was passed on 29th October, 2008. 4. Learned counsel appearing on behalf of the petitioner submitted that the Debt Recovery Appellate Tribunal cannot direct to deposit the amount in terms of Section 21 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 as no final determination having been made by the Debt Recovery Tribunal-I, Chennai. On the other hand, learned counsel appearing on behalf of all the three banks submitted that it was open to the Appellate Tribunal to pass a conditional interim order. 5. At this stage, learned counsel appearing on behalf of the petitioner submitted that the petitioner do not want to press the interim application i.e., I.A.No.308 of 2008, which was preferred https://hcservices.ecourts.gov.in/hcservices/ by the petitioner before the Debt Recovery Appellate Tribunal, Chennai in M.A.No.244 of 2008. It is submitted that if the petitioner do not press the application for interim stay, the question of payment of conditional amount will not arise. An endorsement has also been made by the learned counsel appearing on behalf of the petitioner. 6. We have heard the learned counsel appearing for the parties, and noticed the rival contentions. It is true that for preferring an appeal under Section 20 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, no pre-deposit is required to be made under Section 21 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 in a case where final determination has not been made by the Debt Recovery Tribunal. However, it is always open to the Appellate Tribunal to pass conditional interim order by directing person concerned to deposit certain amount in case interim order is sought for. In the present case, as we find that the petitioner do not want to press the application for interim order (I.A.No.308 of 2008 in M.A.No.244 of 2008), we allow the petitioner to do so and accordingly, direct the Appellate Tribunal to dismiss I.A.No.308 of 2008 in M.A.No.244 of 2008 as not pressed. Interim stay has been granted till 1st December, 2008. In the absence of any extension of stay, the said stay order will automatically stand vacated. 7. So far as M.A.No.244 of 2008 is concerned, the Appellate Tribunal is suppose to decide the same on merits. However, in the absence of any stay, the Debt Recovery Tribunal-II, Chennai can proceed with T.A.No.637 of 1997 on merits and pass appropriate orders, on hearing the parties. The Debt Recovery Tribunal-II, shall take into consideration the fact that the case is pending since 1996 and now more than 12 years have passed. The Appellate Tribunal is also supposed to decide the appeal at an early date, without unnecessary adjournments, preferably within a month. 8. The writ petition stands disposed of with the aforesaid directions/observations. But, however, there shall be no order as to costs. Consequently, miscellaneous petitions are closed. Sd/- Asst. Registrar. /true copy/ Sub Asst. Registrar. pv/- https://hcservices.ecourts.gov.in/hcservices/ To 1. Debts Recovery Appellate Tribunal, Ethiraj Salai, Egmore, Chennai – 600 008. 2. UCO Bank, Chennai Main Branch, 328, Thambu Street, Chennai – 600 001. 3. Indian Overseas Bank, Vadalur Branch, Vadalur – 607 302. 4. Syndicate Bank, Chennai Main Branch, 69, Armenian Street, Chennai – 600 001. 1 cc to Mr.A.S. Kailasam, Associates, SR. 754 2 ccs to M/s. Surana and Surana, SR. 364 W.P.No. 28342 of 2008 and M.P.Nos.1 &2 of 2008 RSY (CO) kk 23/1 https://hcservices.ecourts.gov.in/hcservices/