Case Law Details
Case Name : Narayan Chandra Ghosh Vs. UCO Bank & Ors. (Supreme Court of India)
Appeal Number : 18/03/2011
Date of Judgement/Order :
Related Assessment Year :
Courts :
Supreme Court of India
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The Supreme Court has stated that the debt recovery appellate tribunal has no power to exempt a defaulter from making a pre- deposit before entertaining his appeal under the Securitisation & Reconstruction of Financial Assets and Enforcement of Security Interest Act. In this case, Narayan Chandra vs UCO Bank, the tribunal granted exemption. The Calcutta high court set aside the order. He appealed to the Supreme Court which upheld the high court ruling.
Supreme Court
Narayan Chandra Ghosh Vs. UCO Bank & Ors.
O R D E R
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The decision of the Apex Court appears to have been misplaced and it is a rule of interpretation that if a literal interpretation leads to absurd consequences, the Court should explore other option. In the instant case, it is a matter of record that amount due has not been determined and in such circumstances insisting for a pre-deposit violates basic right of a citizen. Further, when bank is already holding asset to support their claim, the very provision of pre-deposit negates the citizen’s right to justice. Once an asset is held by the creditor his right/interest is secured and asking once again the debtor to offer pre-deposit is a double trouble for the borrower. The constitutional courts should over come statutory compulsions, in appropriate cases.