LI Network
Published on: January 16, 2024 at 12:13 IST
The Allahabad High Court, upheld the validity of a special appeal filed under Chapter VIII Rule 5 of the Allahabad High Court Rules, 1952 (Special Appeals).
The appeal challenged an order by a single judge dealing with the order of the Debt Recovery Appellate Tribunal (DRAT).
The central question addressed by the Court was whether the bar on filing special appeals applied only when the order under scrutiny was passed by a tribunal concerning matters in the State List or the Concurrent List.
The Court held that the bar on filing special appeals did not extend to tribunals constituted under an entry in the Union List.
In the matter of Sharp Industries v. Bank of Maharashtra and 3 Others, the Debt Recovery Appellate Tribunal had set aside the auction sale held by the respondent bank and directed the bank to refund the auction money to the purchaser. The appellant borrower was granted the liberty to proceed afresh from the stage of issuance of the sale notice.
The single judge, sitting in writ jurisdiction, set aside the DRAT’s order, stating that the appellant was aware of the auction date and had knowledge of the auction notice. The appellant challenged this order through a special appeal under Chapter VIII Rule 5.
The Court, observing that the Debt Recovery Tribunal was constituted under Entry 45 of the Union List, held, “Once the tribunal has been constituted in exercise of powers under the Union list, the exclusion clause curtailing entertainment of appeal arising out of orders passed by tribunals constituted under List II or List III would not apply.”
The Court emphasized that Rule 5 of Chapter VIII of the Rules of 1952 provides for appeals against judgments of a single judge, and this provision was not restricted based on the subject matter falling within the Union, State, or Concurrent Lists.
The decision serves as a precedent, reinforcing the maintainability of special appeals against orders of a single judge dealing with the orders of tribunals constituted under the Union List.
Case Title: Sharp Industries v. Bank Of Maharashtra And 3 Others [SPECIAL APPEAL No. – 220 of 2023]
