The Punjab and Haryana High Court has instructed the Debts Recovery Tribunal (DRT-III), Chandigarh, to furnish a report regarding cases where orders have been pending for over three months. This directive was issued by a Division Bench comprising Justice Jusgurpreet Singh Puri and Justice Sanjiv Berry in response to a petition filed by Jairath Dyeing and Finishing.
Jairath Dyeing and Finishing, a proprietorship involved in the manufacturing and export of knitted cloth and garments, filed a securitization application with the DRT-III in March. The petition contested Indian Bank’s move to sell properties mortgaged as collateral for a cash credit facility granted in 2011. The account was previously classified as a Non-Performing Asset (NPA) due to non-payment of dues.
The plea highlighted that their case was heard on April 6, and the final order was scheduled for pronouncement on April 18. However, no order has been issued to date, with no updates on the case status. The petition further claimed that this delay is not an isolated incident; many reserved cases in DRT-III Chandigarh experience similar delays, often exceeding three months. Conversely, some judgments are delivered within a week.
The petition also raised concerns about the tribunal’s erratic practices, noting instances where cases reserved after final arguments are unexpectedly rescheduled for re-hearing. “In the DRT-III, Chandigarh, there is grave arbitrariness and inconsistency in the passing of the final judgment, where the final arguments have been heard and the judgment has been reserved,” stated the plea.
In response, the High Court has mandated the DRT-III to submit a report by August 17 detailing not only Jairath Dyeing and Finishing’s case but also other cases where orders have been reserved for more than three months without pronouncement. This intervention aims to address concerns of procedural delays and ensure timely justice.
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Advocate Pankaj Gupta represented the petitioners, while Additional Solicitor General Satya Pal Jain and Central Government Counsel Prajwal Chauhan represented the Union government in the matter.
The court’s directive underscores the importance of timely legal proceedings and seeks to rectify systemic delays in the tribunal’s adjudication process.
