IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD THURSDAY, THE SEVENTEENTH DAY OF JULY TWO THOUSAND AND EIGHT PRESENT HON'BLE SRI ANIL R. DAVE, THE CHIEF JUSTICE And HON'BLE SRI JUSTICE R.SUBHASH REDDY WRIT PETITION NO : 7748 of 2008 Between: M/s. Suguna Pharma Ltd., A Company registered under the Companies Act., Having its Registered Office at B-4, President Banjara, Road No. 2, Banjara Hilla, Hyd.-500 034, rep. by its M.D., Mr.Ch. Ramesh Babu S/o. Ch.Venkat Rao, Age: 51 Years. ..... PETITIONER AND 1 Industrial Investment Bank of India Ltd., A Company registered under the Companies Act, Having its Registered office at 19, Netaji Subhas Road, Kolkatta-700 001 and a branch office at 7th floor, United Insurance Company Building, Basheerbagh, Hyd.-500 029. Rep. by its Authorised Person. 2 Industrial Development Bank of India. Chappel Road, Near L.B. Stadium, Hyd. Rep. by its General Manager. 3 Shri Chadalawada Ramesh Babu S/o. Late Sri Ch. Venkat Rao 23-2265, Sivalayam Street, Satyanarayanapuram, Vijayawada-520 011. 4 Shri Chadalawada Sri Saila Babu S/o. Sri Ch. Venkat Rao 23-22-65, Sivalayam Street, Satyanarayanapuram, Vijayawada-520 011. 5 Sri Katakam Krishna Kumar. S/o. Sri K.V.Subbaiah 59A-9-7, RTC Colony, Vijayawada. 6 Venkat Pharma Ltd., 8-2-334, Plot No. 3, Road No. 3, Banjara Hills, Hyd.-34. 7 Venkat Pharma Ltd., Plot No. 65, Street No. 6, Road No. 2, Banjara Hills, Hyd.-34. .....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue a writ of certiorarified Mandamus firstly by calling for the records relating to I.N.No. 769/2007 on the file at the Debt Recovery Appellate Tribunal dated 03.03.2008 at Chennai and quash the same and secondary directing the Debit Recovery Appellate Tribunal at Chinnai to dispose of the IN 769/07 in Accordance with law. Counsel for the Petitioner :MR.K.V.SATYANARAYANA Counsel for the Respondents : MR.P.V.MARKENDEYULU. The Court made the following : HON'BLE SRI ANIL R. DAVE, THE CHIEF JUSTICE And HON'BLE SRI JUSTICE R.SUBHASH REDDY WRIT PETITION NO : 7748 of 2008 ORDER : (Per Hon’ble Sri Justice R.Subhash Reddy) This writ petition is filed aggrieved by the order, dated 3rd March 2008, passed in I.N.No.769 of 2007 by the Debt Recovery Appellate Tribunal at Chennai. Though the matter is at the admission stage, at the request of the learned counsel for the parties, this writ petition is disposed of at this stage. 2. The petitioner-Company is respondent No.1 in O.A.No.778 of 2002 before the Debt Recovery Tribunal, Visakhapatnam. The said application is filed for recovery of certain amounts advanced by respondents 1 and 2 Creditors. In the above said application, the petitioner herein filed I.A.No.159 of 2004 under Order VII Rule 11 (a) of C.P.C. to reject the application on the ground that there is no cause of action for filing the same. When the said application was decided against the petitioner, he carried the matter in appeal under Section 20 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as ‘the Act’). In appeal, at first instance, he prayed for passing interim order in I.A.No.87 of 2008, and the Debt Recovery Appellate Tribunal, Chennai, on 28th January 2008, passed the following order:- “Heard the Ld.Counsel for the Petitioner. Perused the records. 1. Interim stay till 3.3.2008 on condition of payment of Rs.25,00,000/- (Rupees Twenty Five Lakhs only) by the petitioner, to the respondent bank, in two instalments, 1st a sum of Rs.10/- lakhs on or before 29.2.2008 and the balance amount of Rs.15/- lakhs on or before 31.3.2008. On such deposit, the respondent bank is directed to keep the said amount in interest earning no-lien account until further orders. 2. Call on 3.3.2008. Notice by then.” 3. Further, when the matter has come up on 3rd of March 2008, on the ground that the petitioner herein has not complied with the condition of depositing Rs.25 lakhs as per the order dated 28th January 2008, the Appellate Tribunal has dismissed the appeal itself, which was numbered as I.N.No.769 of 2007. Aggrieved by the order dated 3rd March 2008, this writ petition is filed. 4. Heard learned counsel for the parties. 5. It is not in dispute that there is a remedy of statutory appeal provided under Section 20 of the Act against any order passed by the primary Tribunal under the provisions of the said Act. When the condition imposed in the order dated 28th January 2008 is not complied with, the Appellate Tribunal ought to have rejected the relief sought for in I.A.No.87 of 2008, but however, that cannot be the reason to dismiss the appeal itself. As the Appeal remedy is a substantive remedy provided in the Act itself, same cannot be dismissed only on the ground that the condition imposed in the order dated 28th January 2008 is not complied with. 6. In that view of the matter, the order dated 3rd of March 2008 passed by the Debt Recovery Appellate Tribunal, Chennai in I.N.No.769 of 2007, is set aside and the matter is remanded to the Appellate Tribunal to consider the appeal afresh and pass appropriate orders on merits. 7. Writ petition is disposed of accordingly. 8. Asmuch as the writ petition itself is disposed of, the order dated 3rd of March 2008, passed by this Court, stands dissolved. _________________ ANIL R. DAVE, CJ 17th July 2008 ______________________ R. SUBHASH REDDY, J ajr To The General Manager, Industrial Development Bank of India, Chappel Road, Near L.B. Stadium, Hyderabad.