TATA CAPITAL HOUSING FINANCE LIMITED vs ICICI HOME FINANCE LIMITED on 5 April 2025

CA/3/2024Exh-5

**IN THE HON'BLE DEBTS RECOVERY TRIBUNAL-II AT AHMEDABAD**

**CHAMBER APPEAL NO: 3 OF 2024**

**SECURITISATION APPLICATION (DIARY) NO: NDN/713 OF 2024**

**Date of Order : 05/04/2025**

TATA CAPITAL HOUSING FINANCE LIMITED

... APPELLANT

ORIGINAL APPLICANT

Versus

ICIC HOME FINANCE COMPANY LTD & OTHERS ... Respondents **Present:**

Shri Lalit M. Patel

:

Ld. Counsel for Applicants

This Chamber Appeal has been preferred by the Appellant against the objection raised by the Ld. Registrar to the effect that in this SA there are disputes between two financial institutions and the matter may be referred to arbitration as per provision of Section 11 of SARFAESI Act. The contentions of the Appellant is that against the objection of Ld. Registrar, the Appellant/Applicant has filed Purshish before the Ld. Registrar claiming therein their case does not come within the purview of Section 11 of SARFAESI Act. On this ground, it was requested that the objection may be removed and the connected SA be registered as Securitisation Application. According to the Appellant, the Ld. Registrar has not considered their Purshish and exercising a jurisdiction which is not vested in him, he has hold that the proposed SA is not maintainable under Section 17(1) of the SARFAESI Act and declined to register the SA and consigned the file to record.

Aggrieved by this order, this Appeal has been preferred mainly on the ground that under Rule 22 & 23 of recovery of the Debts Recovery Tribunal (Procedure) Rule 1993, the Ld. Registrar has no judicial power vested in him so declining to register the SA on the ground of maintainability being the judicial order, cannot be passed by the Ld. Registrar. On this ground, it is prayed that this appeal may be allowed and the impugned order of Ld. Registrar be set aside and the SA filed by CA/3/2024

the Appellant may be permitted to be registered for disposal in accordance with law.

I have heard the Ld. Counsel of the Appellant and perused the record. Without commenting on the issue that whether Section 11 of SARFAESI Act attract with SA filed by the Appellant or not, at the outset this Tribunal is in full conformity with the argument of the Ld. For the Appellant that the Ld. Registrar derives his power under Debts Recovery Tribunal(Procedure) Rule 1993 as defined under Rule 22 & 23. One of the power is laid down in Rule 23(II) to decide all questions arising out of the scrutiny of the applications before they are registered but this rule cannot be overstretched to include the right to pass the judicial order.

In Paul D'Souza and Ors. Vs. Canara Bank, Bangalore and Ors. MANU/KA/0079/2002 Hon'ble Karnataka High Court has hold:

"Constitution - delegation - Rules 22 and 23 of Debt Recovery Tribunal (Procedure) Rules, 1993 - powers of Registrar analogous to Shirestedar in a Civil Court - Rules 23 provides for general Order being issued by Registrar - Presiding Officer issued an office Order granting powers to Registrar to receive and dispose of application with regard to impleading, substitution of legal representatives return of documents set aside any ex parte Order representation of mentally/unsound party in proceedings and to appoint lawful guardian and all other interlocutory applications as and when Presiding Officer directs Registrar to do so - no judicial power can be exercised by Registrar - he is only to act as an administrative head as he can receive, scrutinise and place applications before Presiding Officer - held, office order providing judicial powers to Registrar by way of delegation - contrary to Rules 22 and 23 - Order is in far excess of scrutiny powers".

The above observations by the Hon'ble Court makes it clear that the power of scrutiny does not include judicial power and there is no doubt that declining to register any SA on the ground of non-maintainability is a judicial order which the Ld. Registrar has no power to pass.

Accordingly, in the view of this Tribunal this Appeal deserves to be allowed.

CA/3/2024