Monday, 9 January 2017

No right for Defendants to demand the Cross Examination of a person whose affidavit is not filed before the DRT – Mumbai High Court


Noting that the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act, 2002) and the Debts Recovery Tribunal (Procedure) Rules, 1993 envisages summary procedures for an early disposal of applications before DRT, High Court of Bombay, in Sonu Textiles v Punjab National Bank [Manu/MH/2703/2016] upheld the view extended by DRT - I Mumbai that the defendants have no right to demand the examination of a particular witness or a particular person whose affidavit is not filed for the purpose of cross-examination.

Hon’ble High Court agreed with the views of DRT that the procedure provided for disposal of the application under RDDB Act is summary in nature and the Tribunals are disposing of the matters by receiving documentary evidence along with the supporting claim affidavits of the respective parties. However, in necessary circumstances and in exceptional cases on the application of the parties, the witnesses are also tendered for oral examination. Since the claim of the Bank is mostly basing on the documents, the above procedure was prescribed and provided under the Act for speedy disposal of claims relating to Bank and Public Financial Institution. Even otherwise it is the prerogative of the applicant or plaintiff to lead evidence according to his choice as he being the dominus litis of its case. The plaintiff has to either stand or fall down on the strength of his own case and evidence. The defendants have no right to demand the examination of a particular witness or a particular person whose affidavit is not filed for the purpose of cross-examination.


It was held by the High Court that the Court needs to consider the facts and circumstances in hand, keeping in mind the purpose and object of the SARFAESI Act, 2002. These provisions are with intent to expedite the procedure for early disposal of such application which is summary in nature but by keeping in mind the principles of natural justice. The provision and the power of Tribunal to call a witness and/or issue summons and/or issue appropriate order, or directions to creditors as well as borrowers and equally situated persons. However, this is always subject to the nature of application as well as purpose of such application including the conduct of the parties.

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