Section 5 of the Limitation Act shall not be applicable to the appeal against the order of Recovery Officer: SC

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Shivani Bhati | Dec 4, 2021 | Views 219891

Section 5 of the Limitation Act shall not be applicable to the appeal against the order of Recovery Officer: SC

Section 5 of the Limitation Act shall not be applicable to the appeal against the order of Recovery Officer: SC

Issue  

Writ Petition filed before Supreme Court questioning; 

Whether Section 5 of the Limitation Act shall be applicable to the appeal against the order of Recovery Officer under Section 30 of the Banks and Financial Institutions Act, 1993? 

Facts  

  • Petitioner felt dissatisfied and aggrieved by judgment of the High Court that has set aside the order passed by the DRAT which result in delay of appeal by the respondent (Bank) and Debts Recovery Tribunal accepted the same by applying Section 30 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993. 
  • Section 5 of the Limitation Act shall not be applicable to the appeal under Section 30 of the Act, 1993 against the order passed by the Recovery Officer. 

Findings  

In the case of International Asset Reconstruction Company of India Limited Vs. Official Liquidator of Aldrich Pharmaceuticals Limited and Ors., (2017) 16 SCC 137 Supreme Court held that the application of Section 5 of the Limitation Act by resort to Section 29(2) of the Limitation Act, 1963 therefore does not arise. The prescribed period of 30 days under Section 30(1) of the RDB Act for preferring an appeal against the order of the Recovery Officer therefore cannot be condoned by application of Section 5 of the Limitation Act. 

Judgement  

Supreme Court held that Section 5 of the Limitation Act shall not be applicable to the appeal against the order of Recovery Officer as provided under Section 30 of the Act, 1993. Therefore, the High Court has committed a grave error in quashing and setting aside the order passed by the DRAT and in restoring the order passed by the Debts Recovery Tribunal condoning the delay in preferring the appeal under Section 30 by applying Section 5 of the Limitation Act.  

Therefore, the order passed by the Debts Recovery Tribunal is restored. 

To Read the Judgment Download PDF Given Below :

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