Delhi High Court - Orders
Pegasus Assets Reconstruction Pvt Ltd vs Sulabh Kapur And Ors on 6 April, 2023
Author: Najmi Waziri
Bench: Najmi Waziri, Sudhir Kumar Jain
$~8
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 4236/2023
PEGASUS ASSETS RECONSTRUCTION PVT LTD ..... Petitioner
Through: Mr. B Kaushik Mishra, Mr. Ankur Sood and
Mr. Shivenra Singh, Advocates.
versus
SULABH KAPUR AND ORS ..... Respondents
Through: Mr. Ravi Prakash, CGSC with Mr. Farman
Ali, Ms. Usha Jamaal and Ms. Astu
Khandelwal, Advocates for R-3.
CORAM:
HON'BLE MR. JUSTICE NAJMI WAZIRI
HON'BLE MR. JUSTICE SUDHIR KUMAR JAIN
ORDER
% 06.04.2023 The hearing has been conducted through hybrid mode (physical and virtual hearing).
C.M.APPL. 16439/2023(exemption)
1. Allowed, subject to all just exceptions.
2. The application stands disposed-off.
W.P.(C) 4236/2023
3. Issue notice.
4. The learned counsel named above accepts notice on behalf of their respective respondents.
5. The petitioner's SA No. 69/2022 is pending for some time and he seeks adjudication of the same in a time bound manner. However, two of the three Tribunals in Delhi are non-functional. The petitioner seeks directions for the appointment of the Presiding Officer of DRT-II.
6. On 16.08.2022, the Department of Financial Services, Ministry of Finance was notified by the incumbent Presiding Officer that he would be resigning and would cease work as Presiding Officer w.e.f.
Signature Not Verified Digitally Signed By:JITENDRA Signing Date:10.04.2023 13:44:2501.11.2022. Despite a passage of eight months, the vacancy has not been filled up. The learned counsel for R-3 says that personal interactions with prospective candidates were held on 25.03.2023 and 27.03.2023. He expects a Presiding Officer to be appointed in the near future.
7. Mr. Sanjeev Bhandari, Advocate, who has been appointed as Amicus Curiae in W.P.(C) 14316/2022 awaiting his turn in another matter seeks to inform the Court that in the last week, the Presiding Officer of DRT- III also, who held additional charge of DRT-II, has since submitted his resignation, which would render only one DRT functional.
8. The court is informed that in the past few years, there has been a notable incidence of resignations of DRT Presiding Officers. As noticed, it takes quite some time to fill each vacancy. The reason why they resign mid-term or within a few months of taking charge needs to be looked into. One of the plausible causes is stated to be the anomalous pay-scale of the Presiding Officer of DRTs, it is virtually half or 40% less than the remuneration of the Members or Presiding Officers of other Tribunals. This issue needs to be addressed by the Administrative Ministry on an urgent basis so as to stem the frequent vacancies, at least, by eliminating the cause of remuneration disparity.
9. We have noted in Indu Kapoor vs. AU Small Finace Bank & Anr. in W.P.(C) 14316/2022, that the total pendency of cases before DRTs, Delhi is over 17,000 cases. It will be impossible for one DRT to look into all the matters alone. The total value of the pending claims in Delhi DRTs is about Rs.4,97,861 lakh crores. Surely, this is a large amount which should be factored in by the Administrative Ministry so as to Signature Not Verified Digitally Signed By:JITENDRA Signing Date:10.04.2023 13:44:25 ensure that the DRTs are regularly functional and are fully equipped with all requisite facilities, so that cases are adjudicated and disposed off at the earliest possible. In Indu Kapoor (supra) this court had also directed that the Ministry of Finance would also look into the augmentation of the number of DRTs in Delhi. It is well-nigh impossible for three DRTs to dispose off cases within six months' time which is envisaged under section 19(24) of Recovery of Debts and Bankruptcy Act, 1993 and three months' time which is envisaged under section 17(5) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
10. It is to be borne in mind that the aforesaid two statutes were enacted to facilitate and expedite resolution of disputes and recovery of dues towards the banks and financial institutions. Once statutory jurisdiction has been vested in the DRTs, there is an expectation that the DRTs would be fully and regularly functional so as to achieve the statutory objectives. The non-availability of functional DRTs renders litigants remediless.
11. In view of the above, this Court would exercise its powers under Article 226 and 227 of the Constitution of India especially with respect to the party becoming remediless and the responsibility of superintendence of DRTs. The duty rests entirely upon the Administrative Ministry to ensure fully functional DRTs on an unhindered basis. Pro-active measures are expected in such matters, especially when it involves the nation's economy and assets of banks and financial institutions, private entities and citizens. It Signature Not Verified Digitally Signed By:JITENDRA Signing Date:10.04.2023 13:44:25 will be open to the Administrative Ministry to submit an audit report, if one was prepared, since the enactment of the two statutes, apropos their efficacy vis-à-vis their respective objectives. Let the said Ministry look into the matter and file its reply/ affidavit before the next date. The said affidavit shall be filed with prior approval of the Secretary of the Department of Financial Services.
12. List on 19.04.2023.
NAJMI WAZIRI, J SUDHIR KUMAR JAIN, J APRIL 6, 2023 N/AM Signature Not Verified Digitally Signed By:JITENDRA Signing Date:10.04.2023 13:44:25