The Hindu : Tamil Nadu / Chennai News : High Court stays DRT jurisdiction proposal

Online edition of India's National Newspaper
Tuesday, Feb 27, 2007
ePaper

Tamil Nadu

Tamil Nadu - Chennai

High Court stays DRT jurisdiction proposal

Special Correspondent

CHENNAI: The Madras High Court has stayed the inclusion of Erode, Namakkal and Salem districts within the jurisdiction of the proposed Debts Recovery Tribunal (DRT) at Madurai.

Justice D. Murugesan granted the interim stay on a writ petition filed by Salem-based industrialist R. Prabakaran.

The Union Ministry of Finance issued a notification in January 2007 constituting a new DRT at Madurai and a third DRT in Chennai. As of now, these three districts, along with Dharmapuri and Krishnagiri, come under the jurisdiction of the DRT at Coimbatore.

According to the impugned notification, Dharmapuri is to be brought under the administrative control of DRT-III, Chennai. Cases in Krishnagiri district do not find mention in the notification.

When the matter came up for admission, senior counsel A.L. Somayaji contended that extending the jurisdiction of the new DRT at Madurai to the three districts was unreasonable and would put pressure on litigants, bank officials and advocates conducting the cases.

The petitioner said the notification redefining the jurisdiction of existing DRTs had been issued without the usual consultation with a cross-section of society, especially the litigating parties.

He said litigants of Salem have to go to Chennai to file civil, criminal and writ cases. If the impugned notification were given effect to, it would mean that they have to go to Madurai and then to Chennai, for DRT-related proceedings. Litigants had to engage different counsel at different places, resulting in a multiplicity of expenditure.

Maintaining that the impugned notification contravened the provisions of the Recovery of Debts Due to Banks and Financial Institutions Act, he said there had been no application of mind on the part of the officials concerned.

"The authorities failed to take into account the proximity and geographical location as criteria while considering the convenience of parties and before the jurisdiction and constitution of tribunals are decided," he submitted.

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