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The Supreme Court has held that the Debts Recovery Tribunal (DRT) cannot condone delay in preferring appeal under Section 30 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 by invoking Section 5 of the Limitation Act.

A bench of Justices MR Shah and Sanjiv Khanna held so after relying on the courts' judgment in International Asset Reconstruction Company of India Limited Vs. Official Liquidator of Aldrich Pharmaceuticals Limited and Ors., (2017) 16 SCC 137.

The appeal before court was filed against the judgment and order passed by the Delhi High Court of whereby it has allowed the appeal preferred by the Oriental Bank of Commerce and has quashed and set aside the order passed by the Debts Recovery Appellate Tribunal.

In its order the DRAT had quashed and set aside the order passed by the Debts Recovery Tribunal condoning the delay in preferring the appeal under Section 30.

"It is not in dispute that there was a delay of 31 days in the appeal preferred by the Bank against the order of Recovery Officer", noted the bench.

DRT had condoned the delay by applying Section 5 which was later set aside by DRAT observing that Section 5 of the Limitation Act shall not be applicable to the appeal under Section 30 of the Act, 1993 against the order passed by the Recovery Officer. 

In International Asset, while dealing with the appeal under Section 30 of the Act, 1993 after 2000 amendment, it was held that Section 5 of the limitation Act is specifically excluded so far as appeal under Section 30 of the Act, 1993 is concerned.

Thus, while relying on the law laid down by it and even otherwise considering Section 30 of the Act, 1993, the bench was of the view that Section 5 of the Limitation Act shall not be applicable to the appeal against the order of Recovery Officer as provided under Section 30 of the Act, 1993.

Therefore, the High Court was held to have committed a grave error in quashing and setting aside the order passed by the DRAT and in restoring the order passed by the Debts Recovery Tribunal condoning the delay.

Accordingly, the appeal succeeded.

Cause Title: Avneesh Chandan Gadgil & Anr. v Oriental Bank of Commerce & Ors.