Delhi High Court - Orders
Indu Kapoor vs Au Small Finance Bank & Anr on 19 April, 2023
Author: Najmi Waziri
Bench: Najmi Waziri, Sudhir Kumar Jain
$~12, 14, 15 & 16
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 14316/2022 & CM APPL. 43727/2022
INDU KAPOOR ..... Petitioner
Through: Mr. Sanjeev Bhandari, Advocate
(Amicus Curiae).
Mr. Gaurav Srivastava and Ms.
Namrata Parashar, Advocates.
versus
AU SMALL FINANCE BANK & ANR. ..... Respondents
Through: Mr. Vishnu, Advocate for Mr.
Samvendra Kumar, Advocate for AU
Small Finance Bank.
Mr. Kirtiman Singh, CGSC along
with Ms. Vidhi Jain, Advocate for
UOI.
+ W.P.(C) 1532/2023 & CM APPL. 5815/2023
KOTAK MAHINDRA BANK LIMITED ..... Petitioner
Through: Mr. Mahip Datta Parashar with Ms.
Sanya Lamba, Advocates.
versus
BHAVINDER SINGH KHURANA & ANR ..... Respondents
Through: Mr. Gagan Chhabra , Advocate.
Mr Kirtiman Singh, CGSC for UOI
with Ms Nidhi Jain, Advocate.
+ W.P.(C) 476/2023 & CM APPL. 1866/2023
JITENDER KUMAR ..... Petitioner
Through: Mr. Sanjeev Bhandari, Advocate
(Amicus Curiae).
Signature Not Verified
Digitally Signed By:KAMLESH W.P.(C) 14316/2022 Page 1 of 7
KUMAR
Signing Date:26.04.2023
11:13:05
Mr. Sanjeet K. Trivedi and Mr.
Hemant Gupta, Advocates for
petitioner.
versus
PUNJAB NATIONAL BANK & ANR. ..... Respondents
Through: Mr. Santosh Kumar Rout, Mr. B.N.
Mishra and Mr. Pawan Kumar
Dhiman, Advocates for PNB.
Mr. R.Y. Kalia, Advocate for
respondent.
Mr Nidhi Raman, CGSC for UOI
with Mr Zubin Singh, Advocate.
+ W.P.(C) 1474/2023 & CM APPL. 5535/2023
KOTAK MAHINDRA BANK LIMITED ..... Petitioner
Through: Mr. Mahip Datta Parashar with Ms.
Sanya Lamba, Advocates.
versus
MR.BHAVINDERSINGHKHURANA & ANR ..... Respondents
Through: Mr. Gagan Chhabra , Advocate.
CORAM:
HON'BLE MR. JUSTICE NAJMI WAZIRI
HON'BLE MR. JUSTICE SUDHIR KUMAR JAIN
ORDER
% 19.04.2023 The hearing has been conducted through hybrid mode (physical and virtual hearing).
1. Mr. Sanjeev Bhandari, Advocate (Amicus Curiae) informs the court that one retiring room for the Presiding Officers of the DRTs has been handed-over to the Ministry/landlord for carrying out renovation. The Ministry concerned shall ensure that the entire premises of the DRT, Signature Not Verified Digitally Signed By:KAMLESH W.P.(C) 14316/2022 Page 2 of 7 KUMAR Signing Date:26.04.2023 11:13:05 Delhi is handed over within three weeks from today and/or by 15.05.2023 to the respective Registrars of the three DRTs, in due compliance of this court's orders dated 16.02.2023 and 05.04.2023.
2. As regards the ongoing repairs at site, the learned Amicus Curiae submits that the work is underway and it could be expedited if additional workforce is deployed, the entire premises could well be operationlized by the third week of May, 2023. Mr Kirtiman Singh, the learned Standing Counsel for the Central Government submits that the matter will be looked into and LIC i.e. the landlord will be requested by the Ministry to deploy twice the number of personnel to see that the work is completed at a faster pace. Let the Ministry of Finance issue a reminder and a request to the LIC, that the premises of the DRT, including the additional space of 8700 sq. ft. be made available by 20th May 2023, keeping in mind the larger public interest. In the circumstances, it would be expected of LIC to deploy about twice the labour force that it has currently deployed for carrying out the work.
3. The Ministry and the LIC shall monitor the progress at the site every 72 hours to ensure that the structural reinforcement is completed preferably within 20 days. Work in this regard had already begun many weeks ago and only the residual aspects would remain. The furnishing of the rooms as well as the provision of requisite infrastructure, such as computers, cameras, internet connectivity, audio systems, etc. should not take more than a week. Let the entire premises of the DRTs be handed over by 20.05.2023. A status report shall be filed within twenty working days to show the progress. It is expected that the progress report shall be filed, on the assumption that the Administrative Ministry Signature Not Verified Digitally Signed By:KAMLESH W.P.(C) 14316/2022 Page 3 of 7 KUMAR Signing Date:26.04.2023 11:13:05 is satisfied with the progress.
4. At this stage, it is to be noted that various orders have been passed by the court apropos pendency of around 17,000 cases before the DRTs in Delhi and the claim value of the same is roughly Rs.4,97,861/- crores, equivalent to USD 62 billion. Keeping this figure in mind and the larger public interest, the Ministry would consider augmenting the number of DRTs, equip them with requisite infrastructure, so that they can discharge their duties efficiently. No worthwhile response has come from the Ministry for the past two months.
5. The objective of the two statutes viz. Recovery and Debts and Bankruptcy Act, 1993, and Securitisation and Reconstruction of financial Assets and enforcement of Security interest Act, 2002, is disposal of cases within six months and three months respectively. That, however, is impossible in view of the fact that as of today, only two DRTs are functional, of which the post of the Presiding Officer of DRT-III, is likely to become vacant in June, 2023 or within a few weeks, since the incumbent Presiding Officer has already put in his resignation. The reason for frequent resignations of the DRT Officers is perhaps partly occasioned due to pay disparity, as has been noted in the order dated 05.04.2023 and the same is reproduced hereunder:
"3. Of the three DRTs in Delhi, only two are functional currently. Now one more Presiding Officer is stated to have put in his papers because of his appointment in another Tribunal. This would leave only one functional DRT with the pendency of over 17,000 cases of all DRTs. The frequent vacancy arising in the DRT is an issue which needs consideration by R-3 and practical solution has to be found at the earliest. The learned Amicus Curiae submits that frequent vacancy is possibly Signature Not Verified Digitally Signed By:KAMLESH W.P.(C) 14316/2022 Page 4 of 7 KUMAR Signing Date:26.04.2023 11:13:05 because of the disproportionate remuneration offered to the DRT Presiding Officers vis-a-vis the other Tribunals.
4. The learned Amicus Curiae seeks to submit a note in this regard. Let the same be filed before the next date. A copy of the same be supplied to Mr. Kirtiman Singh, the learned CGSC for R-3, for him to obtain instructions..."
6. The Ministry has not filed any study or audit report apropos the ideal case load per DRT. Ordinarily 700-800 cases per DRT would be handled best. Instead, as of now, effectively nearly 17,000 cases are burdened upon the three DRTs in Delhi. It could safely be estimated that they cannot be disposed-off for many years to come. Additional charge of the non-functional DRT at Delhi has been given to other DRTs in Jaipur, Chandigarh, Allahabad and Aurangabad, this is not convenient to some of the parties concerned. It is therefore imperative, that the Administrative Ministry look into the matter and come up with ameliorative measures so that the number of DRTs are augmented, preferably to 15 in number and make available to the litigants a meaningful forum for adjudication of their lis and grievances, otherwise they would be effectively remediless. Scores of cases are being filed before the writ courts seeking directions for urgent hearing of their cases. Apart from additional unnecessary costs being imposed upon parties to such petitions, there is the issue of how any such petitions/cases can be given priority before a DRT. Not providing the requisite infrastructure for dealing with the large pendency would tantamount to suffocating the course of adjudicatory redressal and defeating the objective of the statutes.
Signature Not Verified Digitally Signed By:KAMLESH W.P.(C) 14316/2022 Page 5 of 7 KUMAR Signing Date:26.04.2023 11:13:057. In view of the above, at this stage, Mr Kirtiman Singh, the learned Standing Counsel for the Central Government says that he would bring the matter to the notice of the learned Advocate General and seek his guidance. Let the same be done in a fortnight.
8. The learned Amicus Curiae informs the court that the infrastructure for e-filing has not yet been operationalized. The prudence of insisting of filing of physical copies by the Officers of the DRTs needs to be maintained.
9. The learned CGSC appearing in Item No.17 (W.P.(C) 4236/2023), referring to the affidavit filed by the Ministry submits that filing of hard copies along with e-copies is part of a notification which was upheld by the Supreme Court. However, as of 17.04.2023, the Supreme Court in Civil Appeal no. 674/2021 titled C.C.E. and S.T., Surat I vs. Bilfinder Neo Structo Construction Ltd. pertaining to ITAT insisting upon filing of hard copies along with electronic copies, has observed as under:
"5. As regards the ITAT, it is incumbent on the tribunal to ensure that revenue appeals are filed only in the e-filing mode and a target date of 30 June 2023should be set down.
6. The Ministry of Finance shall depute a senior officer to engage with the acting President of the ITAT. If the rules are required to be amended, they should be amended to incorporate e-filing requirements.
7. It would defeat the purpose if in addition to e-filing, the ITATs insist on filing of the appeals in the physical mode. This has to be discontinued since it imposes an unnecessary burden on litigants. If there is a training deficit in respect of the Members of the ITAT, this shall be attended to immediately so that all Members of the ITAT are equipped to handle e-filed Signature Not Verified Digitally Signed By:KAMLESH W.P.(C) 14316/2022 Page 6 of 7 KUMAR Signing Date:26.04.2023 11:13:05 cases.
8. We appreciate the work which has been carried out by the CESTAT and would request the President of the Tribunal to ensure that e-filing is implemented by 30 June 2023.
9. An updated status report shall be placed on the record on the next date of listing..."
10. In view of the aforequoted order of the Supreme Court let the Administrative Ministry look into the matter afresh and issue a fresh notice discontinuing filing of hard copies of petitions, as "it imposes an unnecessary burden on litigants"
11. Renotify on 03.05.2023 at 2:30 pm. NAJMI WAZIRI, J SUDHIR KUMAR JAIN, J APRIL 19, 2023/rd Signature Not Verified Digitally Signed By:KAMLESH W.P.(C) 14316/2022 Page 7 of 7 KUMAR Signing Date:26.04.2023 11:13:05