AIR 2007 SUPREME COURT 712 ::2007 AIR SCW 389 ::2007 CLC 363 (SC) ::(2007) 2 BankJ 303 ::2006 (135) DLT 151 ::(2007) 76 CorLA 175 ::2008 (1) SCC 125 ::(2006) 12 Scale 585 ::(2007) 1 BankCLR 1 ::2006 (4) CurCC 381 ::(2007) 1 BankCas 33 ::2007 (135) Com Cas 1 ::(2006) 5 CTC 753 (SC) ::(2007) 1 AndhLD 109 ::(2009) 1 NIJ 86 ::MANU/SC/5319/2006 ::2007 (1) MadLJ929 ::2007 (1) Pun LR 222 ::2006 (8) SLT 617

Supreme Court Of India

(From : Madras)*

Hon'ble Judge(s): Arijit Pasayat, S. H. Kapadia , JJ

(A) Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (54 of 2002) , S.13— Recovery of Debts Due to Banks and Financial Institutions Act (51 of 1993) , S.19(1)— Realisation of secured assets - Application by Banks or Financial Institutions filed before DRT under DRT Act, 1993 - Taking recourse to NPA Act, 2002 by them - Withdrawal of application pending before DRT in terms of S. 19(1) of DRT Act, 1993 - Not a condition precedent. Civil P.C. (5 of 1908) , O.23 R.1— The Banks or Financial Institutions having elected to seek their remedy in terms of DRT Act, 1993 can still invoke the NPA Act, 2002 for realizing the secured assets without withdrawing or abandoning the O.A. filed before the DRT under the DRT Act. It is for the Bank/FI to exercise its discretion as to cases in which it may apply for leave and in cases where they may not apply for leave to withdraw.(Para 51) The object behind introducing the first proviso and the third proviso to S. 19(1) of the DRT Act vide amending Act 30 of 2004 is to align the provisions of DRT Act, the NPA Act and O. 23, CPC. Assuming that an O.A. is filed in the DRT for recovery of an amount on a term loan, on credit facility and on hypothecation account. After filing of O.A., on account of non disposal of the O.A. by the....