Case Law Details
Arjun Industries Ltd & Anr Vs. Industrial Development Bank Of India & Anr.(Delhi HC) – Para 7 of the order dated 23.05.2007 reads as under:-
‘During the course of arguments, we had put to learned counsel for the parties that prima facie there does not appear to be any legal impediment or obstacle in the assignment of the debt by financial institution like IDBI. However, if the respondents wish to contest the O.A. filed by the petitioner before the Debt Recovery Tribunal on merits and/or to contend that petitioner was also bound by the settlement recommended for acceptance by the petitioner predecessor-ininterest i.e. IDBI or to urge any ground on merits in defence to the OA, these would be raised before the Debt Recovery Tribunal.
Confronted with this situation after some position and says that the matter be disposed of and the Debt Recovery Tribunal be asked to examine afresh the defence of the respondents on merits including its contention that the petitioner were bound by the purported decision of its predecessor-in-interest i.e. IDBI to accept the proposal of the respondents. Learned counsel for the petitioners has no objection to the same, subject to their right to contend that there has been no settlement. Besides petitioner’s right to urge that respondent No.3 itself had recognized the petitioner as an assignee when they offered to improve upon the proposal already made to IDBI’.
The appeal is accordingly disposed of declaring that the observations made by the learned Single Judge in the impuged order are set aside. The writ petition filed by the appellant is dismissed, but not on the reasoning of the Single Judge but on the reasoning that the same was not maintainable in view of the consent recorded on behalf of the appellants in para 7 of the order dated 23.05.2007 disposing of the W.P. (C) No. 3535/2007.
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We really feel this judgment of Hon’ble bench of Delhi High Court is bringing breeze in the field of debtors who want to settle their dues.Thanks to the positive thought.An attempt has been made to create a equality before law,for a honest debtor and guarantors. Right to get a fair deal is also an universal legal right.