Delhi High Court - Orders
Jitender Kumar vs Punjab National Bank & Anr on 7 February, 2023
Author: Najmi Waziri
Bench: Najmi Waziri, Tushar Rao Gedela
$~2 & 26
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 476/2023 & CM APPL. 1866/2023
JITENDER KUMAR ..... Petitioner
versus
PUNJAB NATIONAL BANK & ANR. ..... Respondents
+ W.P.(C) 14316/2022 & CM APPL. 43727/2022
INDU KAPOOR ..... Petitioner
versus
AU SMALL FINANCE BANK & ANR. ..... Respondents
Through: Mr. Sanjeet K. Trivedi and Mr.
Hemant Gupta, Advocates for
petitioner in Item No. 2.
Ms. Neetu Bansal, Advocate for R-2
in Item No. 2.
Ms. Nidhi Raman, CGSC for UOI in
Item No. 2.
Mr. Vishnu J., Advocate for Mr.
Samarendra Kumar, Advocate for
R-1/AU Bank in Item No. 26.
Mr. Kirtiman Singh, CGSC along
with Ms. Vidhi Jain, Advocate for
UOI in Item No. 26.
Mr. Sanjeev Bhandari, Advocate in
Item No. 26.
(Amicus Curiae)
Mr. Ashwini Mata, Senior Advocate.
CORAM:
HON'BLE MR. JUSTICE NAJMI WAZIRI
HON'BLE MR. TUSHAR RAO GEDELA
ORDER
% 07.02.2023 The hearing has been conducted through hybrid mode (physical and Signature Not Verified W.P.(C) 476/2023 & W.P.(C) 14316/2022 Page 1 of 12 Digitally Signed By:KAMLESH KUMAR Signing Date:09.02.2023 16:10:10 virtual hearing).
1. An affidavit filed by the Economic Advisor (Joint Secretary equivalent), Department of Financial Services, Government of India, is to the effect that repairs are underway on expedited basis to ensure that the 4th Floor of Jeevan Tara Building, Sansad Marg, New Delhi, where the DRTs of Delhi were earlier functioning from is completed. The building is stated to be more than about half a century old. The extreme state of disrepair of the said premises, indeed of the entire building led to a study by IIT, Kanpur, which has concluded in its Report of February, 2020 that the building was distressed and needed extensive repairs. It has recommended structural repairs of distressed RC elements for the stability and safety of the building.
2. The court has requested Mr. Ashwini Mata, the learned Senior Advocate to assist the court in these matters. He and Mr. Sanjeev Bhandari, the learned Amicus Curiae inform the court that a few years ago, a large concrete slab fell from the 4th floor of the building and damaged about four cars parked next to it. It is only the matter of good fortune that there was no injury or causality to any living creature. Indeed, the roof of the Registry of the DRT is said to have fallen one day, as if portending or that the entire system would collapse. The DRTs have not been physically functional since 23.03.2020. The poor state of affairs of the infrastructure have adversely affected the functioning of the DRTs. Surely, this would have been noticed and is in any case, is deemed to be in the notice of the Department of Financial Services, Ministry of Finance, Government of India, which is the Administrative Ministry over the DRTs. Why was it not looked into, is not referred to in the affidavit is another matter. However, if the Signature Not Verified W.P.(C) 476/2023 & W.P.(C) 14316/2022 Page 2 of 12 Digitally Signed By:KAMLESH KUMAR Signing Date:09.02.2023 16:10:10 state of despair of the DRTs was known to the Ministry, and yet no action was taken, then it is a much worse and an alarming case. It is the primary duty of the Administrative Ministry to ensure that all requirements of the DRTs, both in terms of the personnel and other requisite facilities, are made available, so as to facilitate efficient adjudication of the cases, in accordance with the objectives of the statutes for which the DRTs discharge their duties. It would be an imprudent and indeed a lackadaisical disposition to wait for the system to collapse, both actually and metaphorically, for any authority to wake up and address the issue.
3. This court has also recorded in its previous order dated 12.11.2022 that Rs.497,861 lakh crores (USD 62 billion) is the claim value of the roughly 17,000 cases pending in the three DRTs in Delhi. This, by any standard, is a large amount of money being locked up in litigation. Economic prudence and common sense would demand that these monies be actually put in the stream of commerce so as to contribute towards the growth of the economy which in turn would be of much benefit of the people, as well as lend to the generation of employment. However, this aspect finds no mention in the aforesaid affidavit despite the courts' previous three orders dated 14.11.2022, 23.11.2022 and 20.12.2022. The objective of the two statutes, namely, SARFAESI, 2002 and The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 was that the DRTs would facilitate an expeditious disposal of cases within 6 months and 3 months respectively. This objective seems to be getting defeated because of the DRTs not functioning physically or otherwise impeded by the lack of appropriate infrastructure coupled with the intermittent vacancy in Signature Not Verified W.P.(C) 476/2023 & W.P.(C) 14316/2022 Page 3 of 12 Digitally Signed By:KAMLESH KUMAR Signing Date:09.02.2023 16:10:10 the post of the Presiding Officer.
4. The aforesaid affidavit of the Economic Advisor states that 4th Floor of the Jeevan Tara Building will be made available for use of the premises of the three DRTs by the end of April, 2023 i.e. about another three months from now. However, prior to that, it will also require for IIT, Kanpur to ascertain whether the building has been repaired, as suggested by it, and/or whether it is safe enough to occupy for the purposes it is proposed to be put. To ensure that there is no further delay, the DFS may consider requesting IIT to assess the nature of repairs currently underway so that if any anomaly or shortcoming is noticed, the same could be addressed during the current repair process itself. The need for such urgent corrective measures, be brought to the notice of the landlord by the DSF.
5. Mr. Mata, the learned Senior Advocate draws the court's attention to the recommendations of IIT, Kanpur which has observed that the building is extremely distressed. The recommendations read as under:
Signature Not Verified W.P.(C) 476/2023 & W.P.(C) 14316/2022 Page 4 of 12 Digitally Signed By:KAMLESH KUMAR Signing Date:09.02.2023 16:10:10 Signature Not Verified W.P.(C) 476/2023 & W.P.(C) 14316/2022 Page 5 of 12 Digitally Signed By:KAMLESH KUMAR Signing Date:09.02.2023 16:10:10 Signature Not Verified W.P.(C) 476/2023 & W.P.(C) 14316/2022 Page 6 of 12 Digitally Signed By:KAMLESH KUMAR Signing Date:09.02.2023 16:10:106. The repair work is being carried out on the basis of the recommendations of the IIT by LIC/the landlord. The efficient Signature Not Verified W.P.(C) 476/2023 & W.P.(C) 14316/2022 Page 7 of 12 Digitally Signed By:KAMLESH KUMAR Signing Date:09.02.2023 16:10:10 functioning of the DRTs would facilitate freeing up large sums of money which are lying in litigation. The present lack of requisite physical infrastructure is causing irreparable prejudice to the parties concerned, in terms of: (i) irretrievable time; (ii) loss of opportunities, and (iii) cost of finance. Let the Department of Financial Services expedite the repairs and ensure that it is completed in four weeks, in consultation with IIT, Kanpur.
7. The court is informed that in the last week, the DSF has become alive of the anomalous situation and has, in principal, agreed to take on rent 8,700 sq. ft. on the 3rd floor of the same building. This said space could be utilized for creation of three court rooms on an expedited basis. In the three existing but non-functional DRTs court rooms, records of pending cases have been dumped, as is evident from the photographs reproduced in the order dated 20.12.2022. Some of them are reproduced as under:
Signature Not Verified W.P.(C) 476/2023 & W.P.(C) 14316/2022 Page 8 of 12 Digitally Signed By:KAMLESH KUMAR Signing Date:09.02.2023 16:10:108. Let the DSF ensure the storage and security of these records at another convenient place so that three court rooms are made functional. However, whether mere shifting of the files would ensure safe and convenient access to the court rooms is not known, as work is underway in the passage way outside the court rooms, as is seen in the Signature Not Verified W.P.(C) 476/2023 & W.P.(C) 14316/2022 Page 9 of 12 Digitally Signed By:KAMLESH KUMAR Signing Date:09.02.2023 16:10:10 photograph reproduced as under:
9. To facilitate an expeditious resolution of the issue, Mr. Kirtiman Singh, the learned CGSC, Mr. Sanjeev Bhandari, the learned Amicus Curiae along with other counsel, who may wish to assist, offer to visit the site on 09.02.2023 at 4:30 pm, where they shall be assisted by deponent of Signature Not Verified W.P.(C) 476/2023 & W.P.(C) 14316/2022 Page 10 of 12 Digitally Signed By:KAMLESH KUMAR Signing Date:09.02.2023 16:10:10 the affidavit and by General Manager and the Chief Engineer of LIC/the landlord. Since, the building is owned by LIC and the issue involves public interest and the provision of appropriate office space, LIC is a necessary party and is accordingly impleaded as respondent no.3. Amended Memo of Parties be filed before the next date. Issue notice. Mr. Anil Soni, the learned CGSC, who is present in court, is directed to accept notice on behalf of LIC. E-copy of the petition be supplied to him during the course of the day.
10. Extensive photography and videography shall be done by DSF and the same shall be filed along with an affidavit and compliance of this order. A report may also be filed by the learned Amicus Curiae by 15.02.2013.
11. Mr. Mata also draws the court's attention to an order passed on 13.09.2022 by this court in W.P.(C) 8599/2019 titled DRT Bar Association and Anr. Vs. Union of India and Ors. in which the issue of poor maintenance of the DRT premises was considered and the Department of Financial Services was expected to provide due infrastructure, so that there was no impediment in terms of infrastructure or otherwise, in the optimal functioning of the DRTs.
12. Para 16 of the order dated 23.11.2022 notes the large pendency of cases before the three Delhi DRTs. The affidavit is silent on the suggestions of the learned Amicus Curiae apropos the augmentation of the number of DRTs in Delhi. Paras 7 and 8 of the said order are reproduced hereunder for ready reference:
" 7. The notification dated 04.10.2022 has been stayed by the Bombay High Court in W.P (C) 11164/2022 on 17.11.2022, therefore, in the first instance, the pendency of number of cases before the DRT-I, II & III will be taken Signature Not Verified W.P.(C) 476/2023 & W.P.(C) 14316/2022 Page 11 of 12 Digitally Signed By:KAMLESH KUMAR Signing Date:09.02.2023 16:10:10 as figures mentioned in the report from the Registrar, DRAT, Delhi. The pendency of cases is about 17,000 and for a claim value of Rs.497,861 lakh crores (USD 62 billion). With these figures in mind and in the larger public interest, the Government may consider urgently augmenting the number of Tribunals and equip them with adequate infrastructure to function efficiently and to discharge their duties.
8. Mr. Sanjeev Bhandari, the learned Amicus Curiae, submits that presently DRT-II is not functioning and its additional charge has been handed over to the DRT-III, thus doubting the pendency before the DRT-III to 8790 cases. Let the matter be examined by the Ministry of Finance apropos filling up of the vacancies as well as creation of additional DRTs. The learned Amicus Curiae submits that looking at the number of pending cases and fresh cases being filed, it would be in the fitness of things that at least 10 DRTs be made functional in Delhi. He submits that space available on the third floor of the same building where the present DRTs are functioning i.e., 4thFloor, Jeevan Tara Building, Sansad Marg, Janpath, Connaught Place, New Delhi, Delhi 110001, the new DRTs if created could be located in the said vacant space."
13. Let Secretary, DSF file an affidavit before the next date.
14. List on 16.02.2023.
NAJMI WAZIRI, J TUSHAR RAO GEDELA, J FEBRUARY 7, 2023 RW Signature Not Verified W.P.(C) 476/2023 & W.P.(C) 14316/2022 Page 12 of 12 Digitally Signed By:KAMLESH KUMAR Signing Date:09.02.2023 16:10:10