SC JUDGEMENT-Recovery of Debts Due to Banks and Financial Institutions

FULL TEXT OF THE SUPREME COURT JUDGEMENT

[Civil Appeal Nos.433/2004, Civil Appeal No.434/2004, Civil Appeal No.436/2004, SLP (C) Nos.15651- 15652/2005, SLP (C) No.5592/2004, SLP (C) No.5598/2004, SLP (C) No.5890/2004, Civil Appeal No.36/2006, Civil Appeal No.37/2006, Civil Appeal No.38/2006, Civil Appeal No.916/2006, Civil Appeal No.2819/2006, Civil Appeal No.2820/2006, Civil Appeal No.2821/2006, Civil Appeal No.2822/2006 and SLP (C) Nos.25246-25247/2005]

[Civil Appeal No.6069/2005, Civil Appeal No.6077/2005 and SLP (Crl.) No.2071/2006 – Not on board]

Lokeshwar Singh Panta, J.

Civil Appeal No.6069/2005, Civil Appeal No.6077/2005 and SLP (Crl.) No.2071/2006 are taken on board. A Bench of two judges before which this batch of twelve civil appeals and five special leave petitions came up for consideration was of the view that looking to the issues involved and the far-reaching consequences which such a decision will leave, these matters require consideration by a larger Bench. This is what the Bench observed in the order dated 1st December, 2005.

“This batch of appeals/SLPs involved an

important issue regarding right of recovery of debts by the co-operative banks constituted under the Co-operative Societies Acts of the States of Maharashtra and Andhra Pradesh. The issue has arisen in the context of enactment of the Recovery of Debts Due to Banks and