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Patna High Court

M/s Tirupati Storage and Allied Pvt. Ltd.,versusUCO Bank Frazer Road Branch,

Decided
Disposal
ALLOWED

Holding

The DRAT possessed jurisdiction under Section 22(2)(e) and (g) of the Recovery of Debts and Bankruptcy Act, 1993 to recall its dismissal order, and the non‑deposit dismissal is procedural, not final, thus the restoration order is valid.

Summary

The appellants, directors of M/s Tirupati Storage, defaulted on a term loan from UCO Bank, leading to recovery proceedings and a decree by the Debt Recovery Tribunal (DRT) in 2012. Subsequent appeals before the Debt Recovery Appellate Tribunal (DRAT) were dismissed in 2015 for failure to make the statutory pre‑deposit under Section 21 of the Recovery of Debts and Bankruptcy Act, 1993, and the dismissal was upheld by the High Court in 2023. After depositing the required amount in June 2023, the DRAT restored the appeal on 29‑09‑2023, which the Bank challenged before the Patna High Court. The Single Judge set aside the restoration order, holding the DRAT lacked jurisdiction to recall its earlier order after finality. On intra‑court appeal, the Court examined the statutory powers under Section 22(2) of the Act and held that the DRAT could review and set aside its dismissal order, and that non‑deposit is a procedural bar, not an irreversible dismissal. Consequently, the Court affirmed the DRAT’s restoration order and allowed the appeal.

Issues considered

  • Whether the Debt Recovery Appellate Tribunal had jurisdiction to recall or restore its earlier order dismissing an appeal for non‑compliance with the pre‑deposit requirement after the order had attained finality.
  • Whether the pre‑deposit requirement under Section 21 of the Recovery of Debts and Bankruptcy Act, 1993, when not complied with, results in an automatic and irrevocable dismissal of the appeal, precluding later restoration.

Legislation cited

Subjects

  • Debt Recovery
  • Pre‑deposit
  • Jurisdiction
  • Review Power
  • Appellate Tribunal
  • Procedural Default
  • Recovery of Debts and Bankruptcy Act
  • Finality
  • Restoration of Appeal

Judgment

          IN THE HIGH COURT OF JUDICATURE AT PATNA
                        Letters Patent Appeal No.1093 of 2024
                                           In
                     Civil Writ Jurisdiction Case No.1388 of 2024
     ======================================================
1.    M/s Tirupati Storage and Allied Pvt. Ltd., Anandpur, Bihta, Patna, having its
      registered office at M-52/22A, Road No. 25, Sri Krishna Nagar, Patna-
      800001, through its Managing Director, Smt. Vijya Singh.
2.   Smt. Vijya Singh Wife of Dr. Yashwant Singh Resident of M-52/22A, Road
     No. 25, Sri Krishna Nagar, Patna-800001.
3.   Dr. Satish Kumar Singh Son of Late Durga Prasad Singh Resident of M-
     52/22A, Road No. 25, Sri Krishna Nagar, Patna-800001.
4.   Dr. Yashwant Singh S/o Late Shakti Prasad Singh Resident of M-52/22A,
     Road No. 25, Sri Krishna Nagar, Patna-800001.
                                                           ... ... Appellant/s
                                      Versus

1.   UCO Bank Frazer Road Branch, Patna through its Branch Manager namely
     Abhishek Sinha, S/o-Sri Ajit Sinha, UCO Bank, Frazer Road Branch, Patna
     P.S.- Kotwali, District- Patna.
2.   The Union of India, through the Secretary, Ministry of Finance, Department
     of Financial Services, Govt. of India, New Delhi.
3.    The Debt Recovery Appellate Tribunal, Allahabad through the Registrar,
      Debt Recovery Appellate Tribunal, Allahabad.
                                                          ... ... Respondent/s
     ======================================================
     Appearance :
     For the Appellant/s    :       Mr. Deo Prakash Singh, Advocate
                                    Mr. Pankaj Kumar, Advocate
                                    Ms. Nishu Kumari, Advocate
     For the Bank           :       Mr. Ranjeet Kumar Pandey, Advocate
     For the UOI            :       Mrs. Radhika Kumari, CGC.
     ======================================================
     CORAM: HONOURABLE MR. JUSTICE SUDHIR SINGH
             and
             HONOURABLE MR. JUSTICE SUNIL DUTTA MISHRA
     ORAL JUDGMENT
     (Per: HONOURABLE MR. JUSTICE SUDHIR SINGH)

      Date : 16-04-2026

                    Heard learned counsel for the parties.

                    2. The present intra court appeal has been preferred

      against the judgment dated 04.09.2024 passed by the learned

      Single Judge in CWJC No. 1388 of 2024, whereby the writ
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         petition preferred by the respondent- Bank was allowed and the

         order dated 29.09.2023 passed by the Debt Recovery Appellate

         Tribunal, Allahabad (for brevity ‘DRAT’), restoring Appeal No.

         R-99/2014, was set aside.

                      3. In the writ petition, the writ petitioner had sought

         the following reliefs:

                          “(i) For issuance of writ/writs, order/orders or
                          direction/directions in the nature of certiorari for
                          setting aside order dated 29.09.2023 passed in Appeal
                          Dy. No.748/2023 passed by learned Chairperson, Debt
                          Recovery Appellate Tribunal, Allahabad whereby and
                          whereunder restoration /recall application filed on
                          behalf of private respondents no. 3 to 6, after expiry of
                          more than 8 years for recall of order dated 23.03.2015
                          by which the appeal preferred by the private respondent
                          no. 3 to 6 was dismissed as not maintainable for want of
                          pre deposit, has been recalled and the main appeal has
                          been directed to be restored to its original number and
                          the private respondents were permitted to file waiver
                          application by the next date, although the waiver
                          application filed on behalf of the appellants was
                          disposed of on 13.02.2015 itself and the appeal was
                          dismissed as not maintainable for want of pre deposit as
                          per order dated 23.03.2015.
                          (ii) For a declaration that order dated 29.09.2023
                          passed in Appeal Dy. No. 748/2023 by learned
                          Chairperson, DRAT, Allahabad is without jurisdiction
                          as order dated 13.02.2015 passed in Appeal No. R-
                          99/2014 whereby waiver application of the private
                          respondents was disposed of and they were directed to
                          deposit 50% of the determined amount to maintain the
                          appeal and order dated 23.03.2015 has attained finality
                          and merged with the order passed by the Hon'ble High
                          Court whereby writ petition vide CWJC No. 4678/2015
                          preferred by private respondents against order dated
                          13.02.2015 and 23.03.2015 has been dismissed on
                          27.06.2023 and as such after dismissal of writ petition
                          by the Hon'ble High Court, learned Chairperson DRAT,
                          Allahabad has got no jurisdiction to recall the order
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                          dated 23.03.2015 which has already attained finality by
                          order of Hon'ble High Court.
                          (iii) For any other relief/reliefs for which the petitioner
                          may be found entitle in the eye of law and in the facts
                          and circumstances of the case may also be granted in
                          favour of the petitioner.”


                       4. The brief facts of the case are that the respondent-

         Bank had sanctioned a term loan to the appellants. Upon default

         in repayment, the account was classified as NPA, and recovery

         proceedings were initiated by filing O.A. No. 283 of 2011

         before the DRT, Patna.               The Tribunal, by judgment dated

         17.09.2012, allowed the Bank’s claim and issued a recovery

         certificate      for    Rs.     1,53,38,333/-,      while     rejecting        the

         counterclaim filed by the appellants.

                       5. Subsequently, appellants filed M.A. No. 406 of

         2012 and M.A. No. 482 of 2012, both of which were dismissed.

         Thereafter, Appeal No. R-99/2014 was preferred before the

         DRAT, Allahabad against the order passed in M.A. No. 482 of

         2012. By order dated 13.02.2015, the appellants were directed

         to deposit 50% of the decretal amount under Section 21 of the

         Act. Despite grant of further time vide order dated 23.03.2015,

         the appellants failed to comply with the pre-deposit condition,

         resulting in dismissal of the appeal as not maintainable.

                       6. The appellants challenged the pre-deposit condition

         before this Court in CWJC No. 4678 of 2015, which was
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         dismissed on 27.06.2023.

                      7. In the meantime, appellants had also filed a third

         miscellaneous application, being M.A. no. 150 of 2014 before

         the DRT, Patna, seeking settlement of the loan account. The

         DRT passed an order dated 05.05.2014 allowing such

         settlement.

                      8. The Bank challenged the said order before the

         DRAT, Allahabad, which, by judgment dated 13.02.2018 in

         Appeal No. R- 79 of 2014, set aside the DRT’s order. A review

         application (M.A. No. 37 of 2018) filed by the appellants was

         dismissed on 14.10.2019. The appellants further challenged

         these orders before this Court in C.W.J.C. No. 1178 of 2020,

         which was dismissed on 09.08.2021 with costs. The LPA

         therefrom was withdrawn on 05.04.2022, thereby affirming the

         said orders.

                      9. Subsequently, the appellants claim to have

         deposited approximately Rs. 76 lakhs in June 2023 and filed a

         restoration application before the DRAT, Allahabad. The DRAT,

         Allahabad, by order dated 29.09.2023, allowed the same and

         revived Appeal No. R-99/2014.

                      10. The         respondent-Bank   challenged   the   said

         restoration order in CWJC No. 1388 of 2024, which was
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         allowed by the learned Single Judge on 04.09.2024, holding that

         the DRAT lacked jurisdiction to recall its order after such lapse

         of time and finality of proceedings. The relevant extract of the

         said order is reproduced hereinbelow:

                          “6….Though the learned counsel for the Respondent
                          No. 3 has tried to argue the matter on merits of the
                          case, this Court is not inclined to go into the same as
                          the only issue before this Court is as to whether the
                          DRAT, Allahabad had the power or jurisdiction to
                          recall its own order which had attained finality after the
                          dimissal of the CWJC, that too after lapse of more than
                          eight years. Admittedly, there is no specific provision in
                          the Act for recalling or reviewing the orders passed by
                          the Tribunal. It is settled principles of law that unless
                          and until the statute confers the power of review/recall,
                          the Tribunal cannot exercise the power of review more
                          so, after the lapse of more than eight years. Further, it is
                          pertinent to mention that the orders of Tribunal dated
                          13.02.2015 & 23.03.2015 were already challenged
                          before this Court in CWJC No. 4678 of 2015. The said
                          CWJC was dismissed on 27.06.2023 confirming the
                          earlier orders passed. Once an order has been
                          challenged before a superior Forums/Court and the
                          same has been confirmed and become final, the
                          Tribunal/Forum which has passed the order cannot
                          review or recall its own orders. Further, it is pertinent
                          to note that in the impugned order, the Tribunal has not
                          given any reason for recalling its earlier order except
                          adverting to the judgement of the Allahabad High Court
                          passed in Writ-C No. 7439 of 2023 in the case of M/s
                          Sai Enterprises & 2 Ors. Vs. Debts Recovery Appellate
                          Tribunal & Anr. decided on 17.03.2023 which is
                          distinguishable on the facts of this particular case. 7.
                          Having regard to the same, the present writ petition is
                          allowed, the impugned order passed by the DRAT,
                          Allahabad dated 29.09.2023 is set aside.”

                      11. Learned counsel for the appellants submits that the

         appellants had already complied with the requirement of pre-
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         deposit by depositing more than 50% of the decretal amount on

         07.06.2023, i.e., prior to dismissal of CWJC No. 4678 of 2015

         on 27.06.2023. The proof of such compliance was also brought

         on record. Therefore, the finding that the orders dated

         13.02.2015 and 23.03.2015 attained finality or merged with the

         judgment dated 27.06.2023, is erroneous and contrary to the

         material on record. It is further submitted that Section 21 of the

         Recovery of Debts and Bankruptcy Act, 1993 (for brevity the

         ‘Act’) does not prescribe any limitation for making pre-deposit,

         nor does it contemplate dismissal of an appeal for non-deposit.

                      12. Learned counsel further submits that the

         Tribunal/DRAT has the power to review/recall its own orders

         under Section 22(2)(e) & (g) of the Act, and therefore, the order

         dated 29.09.2023 restoring the appeal was well within

         jurisdiction. Moreover, since the original DRT judgment was

         under challenge, it could not have been said to have attained

         finality. Thus, the impugned judgment suffers from errors of law

         and deserves to be set aside.

                      13. Per contra, learned counsel for the respondent

         submits that the order dated 17.09.2012 passed by the DRT,

         Patna had already attained finality after dismissal of earlier writ

         proceedings, pursuant to which recovery was completed, the
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         secured asset was auctioned, and possession was handed over.

         The appellants cannot now reopen settled issues by seeking

         restoration of an appeal dismissed more than eight years ago. It

         is further submitted that the orders dated 13.02.2015 and

         23.03.2015, passed by the DRAT, Allahabad attained finality

         after dismissal of CWJC No. 4678 of 2015 on 27.06.2023, and

         therefore, the DRAT had no jurisdiction to restore the appeal

         thereafter. The restoration order dated 29.09.2023 was without

         jurisdiction and has rightly been set aside by the learned Single

         Judge.

                      14. In the backdrop of the facts and submissions

         noticed       hereinabove,        the     following   issues   arise   for

         consideration:

                      (i) Whether the learned Single Judge was justified in

         law in setting aside the order dated 29.09.2023 passed by the

         DRAT, Allahabad on the ground of lack of jurisdiction, by

         holding that the Appellate Tribunal had no power to

         recall/restore its earlier order dismissing the appeal for non-

         compliance of pre-deposit?

                      (ii) Whether the requirement of pre-deposit under

         Section 21 of the Act, and the expression “shall not be

         entertained”, can be construed to result in automatic dismissal
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         of the appeal for non-compliance, thereby rendering such

         dismissal final and incapable of recall upon subsequent

         compliance?

                      15. This Court has carefully considered the rival

         submissions advanced on behalf of the parties and perused the

         materials available on record. The controversy in the present

         appeal centers around the interplay between the requirement of

         pre-deposit under Section 21 and the scope of powers of

         recall/review vested in the Debts Recovery Appellate Tribunal

         under Section 22(2) of the Recovery of Debts and Bankruptcy

         Act, 1993.

                      Re. Issue No. (i)

                      16. At the outset, it would be apposite to refer to the

         statutory scheme governing the powers of the Tribunal. Section

         22(2) of the Recovery of Debts and Bankruptcy Act, 1993

         provides as follows:

                          “22. Procedure and powers of the Tribunal and the
                          Appellate Tribunal.-
                          (1) xx         xx           xx
                          (2) The Tribunal and the Appellate Tribunal shall
                          have, for the purposes of discharging their
                          functions under this Act, the same powers as are
                          vested in a Civil Court under the Code of Civil
                          Procedure, 1908 (5 of 1908), while trying a suit, in
                          respect of the following matters, namely:-
                          (a) xx         xx           xx
                          (b) xx         xx           xx
                          (c) xx         xx           xx
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                          (d) xx        xx             xx
                          (e) Reviewing its decisions:
                          (f) xx        xx             xx
                          (g) setting aside any order of dismissal of any
                          application for default or any order passed by it ex
                          parte;

                      17. A plain and purposive reading of the aforesaid

         provision makes it abundantly clear that the Tribunal and the

         Appellate Tribunal are not mere adjudicatory bodies with

         limited jurisdiction, but are vested with substantive powers akin

         to those of a Civil Court, including the power to review their

         own decisions and to set aside orders passed for default. The

         legislative intent behind incorporating such provisions is to

         ensure that procedural lapses do not result in irreparable

         prejudice and that matters are, as far as possible, decided on

         merits.

                      18. In this context, the Hon’ble Supreme Court in

         Grindlays Bank Ltd. v. Central Government Industrial

         Tribunal & Ors reported in 1980 Supp SCC 420, has held that

         where an order is passed due to a procedural defect or

         inadvertent error, the Tribunal is empowered to recall the same

         ex debito justitiae to prevent abuse of process. The relevant part

         of the said order reads as follows:

                          “13…The expression 'review' is used in two distinct
                          senses, namely (1) a procedural review which is either
                          inherent or implied in a court or Tribunal to set aside a
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                          palpably erroneous order passed under a
                          misapprehension by it, and (2) a review on merits when
                          the error sought to be corrected is one of law and is
                          apparent on the face of the record. It is in the latter
                          sense that the Court in Narshi Thakershi's case held
                          that no review lies on merits unless a status specifically
                          provides for it. Obviously when a review is sought due
                          to a procedural defect, the inadvertent error committed
                          by the Tribunal must be corrected ex debito justitiae to
                          prevent the abuse of its process, and such power inheres
                          in every court or Tribunal.”

                      19. The Hon’ble Supreme Court in Kapra Mazdoor

         Ekta Union v. Birla Cotton Spinning and Weaving Mills Ltd.

         & Ors. reported in (2005) 13 SCC 777, has elaborately

         explained the distinction between review on merits and

         procedural recall, holding that where an order is vitiated on

         account of a procedural illegality which goes to the root of the

         matter, the Tribunal has the power to recall such order without

         entering into the merits. It was further held that such power is

         exercised to correct proceedings which stand vitiated due to

         procedural defects, and the matter must be re-heard in

         accordance with law. The relevant part of the said order reads as

         follows:

                          19. Applying these principles it is apparent that where a
                          Court or quasi judicial authority having jurisdiction to
                          adjudicate on merit proceeds to do so, its judgment or
                          order can be reviewed on merit only if the Court or the
                          quasi judicial authority is vested with power of review
                          by express provision or by necessary implication. The
                          procedural review belongs to a different category. In
                          such a review, the Court or quasi judicial authority
                          having jurisdiction to adjudicate proceeds to do so, but
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                          in doing so commits a procedural illegality which goes
                          to the root of the matter and invalidates the proceeding
                          itself, and consequently the order passed therein. Cases
                          where a decision is rendered by the Court or quasi
                          judicial authority without notice to the opposite party or
                          under a mistaken impression that the notice had been
                          served upon the opposite party, or where a matter is
                          taken up for hearing and decision on a date other than
                          the date fixed for its hearing, are some illustrative cases
                          in which the power of procedural review may be
                          invoked. In such a case the party seeking review or
                          recall of the order does not have to substantiate the
                          ground that the order passed suffers from an error
                          apparent on the face of the record or any other ground
                          which may justify a review. He has to establish that the
                          procedure followed by the Court or the quasi judicial
                          authority suffered from such illegality that it vitiated the
                          proceeding and invalidated the order made therein,
                          inasmuch the opposite party concerned was not heard
                          for no fault of his, or that the matter was heard and
                          decided on a date other than the one fixed for hearing
                          of the matter which he could not attend for no fault of
                          his. In such cases, therefore, the matter has to be re-
                          heard in accordance with law without going into the
                          merit of the order passed. The order passed is liable to
                          be recalled and reviewed not because it is found to be
                          erroneous, but because it was passed in a proceeding
                          which was itself vitiated by an error of procedure or
                          mistake which went to the root of the matter and
                          invalidated the entire proceeding. In Grindlays Bank
                          Ltd. v. Central Government Industrial Tribunal and
                          Ors. (supra), it was held that once it is established that
                          the respondents were prevented from appearing at the
                          hearing due to sufficient cause, it followed that the
                          matter must be re-heard and decided again.”

                      20. Applying the aforesaid principles to the facts of

         the present case, it is evident that the dismissal of the appeal on

         23.03.2015 was not an adjudication on merits, but was

         occasioned solely on account of non-compliance of the pre-

         deposit requirement. Such dismissal is, therefore, in the nature
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         of a dismissal for default or non- compliance of a procedural

         condition.

                      21. Once such dismissal falls within the category

         contemplated under Section 22(2)(g), the Tribunal cannot be

         said to be denuded of its jurisdiction to recall or set aside the

         same. The reasoning adopted by the learned Single judge, that

         there exists no provision for recall or that the Tribunal becomes

         functus officio, overlooks this express statutory conferment of

         power under Section 22(2). The doctrine of finality, though

         significant, cannot be applied in a manner so as to render a

         statutory provision otiose.

                      22. Accordingly, this Court holds that the DRAT,

         Allahabad did possess the jurisdiction to recall/restore its earlier

         order in exercise of powers under Section 22(2)(e) and (g) of the

         Recovery of Debts and Bankruptcy Act,1993, and the learned

         Single Judge was not justified in holding otherwise. Issue No.

         (i) is answered in favour of appellants.

                      Re. Issue No. (ii)

                      23. Section 21 of the Act reads as follows:

                          “21. Deposit of amount of debt due, on filing appeal.—
                          Where an appeal is preferred by any person from whom
                          the amount of debt is due to a bank or a financial
                          institution or a consortium of banks or financial
                          institutions, such appeal shall not be entertained by the
                          Appellate Tribunal unless such person has deposited
                          with the Appellate Tribunal 3 [fifty per cent.] of the
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                          amount of debt so due from him as determined by the
                          Tribunal under section 19: Provided that the Appellate
                          Tribunal may, for reasons to be recorded in writing, 4
                          [reduce the amount to be deposited by such amount
                          which shall not be less than twenty-five per cent. of the
                          amount of such debt so due] to be deposited under this
                          section.”

                      24. Section 21 of the Act provides that an appeal

         “shall not be entertained” unless the appellant deposits the

         prescribed percentage of the debt. The provision, however,

         neither prescribes any limitation for making such deposit not

         provides that failure to deposit within a particular time would

         result in automatic dismissal of the appeal.

                      25. The expression “entertain” has been interpreted by

         the Hon’ble Supreme Court in Lakshmi Rattan Engineering

         Works Ltd. v. Assistant Commissioner Sales Tax, Kanpur &

         Ors. reported in 1968 AIR 488, to mean                        “to admit to

         consideration” (Para 10), and does not necessarily imply

         dismissal. Thus, the embargo under Section 21 operates at the

         threshold stage of consideration of the appeal and does not

         amount to a final adjudication. The relevant part of the said

         order reads as follows:

                          “10. The word 'entertain' is explained by a Divisional
                          Bench of the Allahabad High Court as denoting the
                          point of time at which an application to set aside the
                          sale is heard by the court. The expression 'entertain', it
                          is stated, does not mean the same thing as the filing of
                          the application or admission of the application by the
                          court. A similar view was again taken in Dhoom Chand
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                          Jain v. Chamanlal Gupta & Anr., in which the learned
                          Chief Justice Desai and Mr. Justice Dwivedi gave the
                          same meaning to the expression 'entertain'. It is
                          observed by Dwivedi J. that the word 'entertain' in its
                          application bears the meaning 'admitting to
                          consideration'. and therefore when the court cannot
                          refuse to take an application which is backed by deposit
                          or security, it cannot refuse judicially to consider it. In a
                          single bench decision of the same court reported in
                          Bawan Ram & Anr. v. Kuni Beharilal A.I.R. 1961 All.
                          42, one of us (Bhargava, J.) had to consider the same
                          rule. There the deposit had not been made within the
                          period of limitation and the question had arisen
                          whether the court could entertain the application or
                          not. It was decided that the application could not be
                          entertained because proviso (b) debarred the court from
                          entertaining an objection unless the requirement of
                          depositing the amount or furnishing security was
                          complied with within the time prescribed. In that case of
                          the word 'entertain' is not interpreted but it is held that
                          the court cannot proceed to consider the application in
                          the absence of deposit made within the time allowed by
                          law. This case turned on the fact that the deposit was
                          made out of time. In yet another case of the Allahabad
                          High Court reported in Haji Rahim Bux & Sons and
                          Ors. v. Firm Samiullah & Sons A.I.R. 1963 All. 326, a
                          division bench consisting of Chief Justice Desai and Mr.
                          Justice S. D. Singh interpreted the words of O. 21, r. 90,
                          by saying that the word 'entertain' meant not 'receive' or
                          'accept' but proceed to consider on merits' or
                          'adjudicate upon'.”

                      26. Therefore, non-compliance with the requirement

         of pre- deposit may justify the Tribunal in declining to proceed

         with the appeal at that stage; however, such non-compliance

         cannot be construed as leading to an irrevocable dismissal so as

         to extinguish the statutory right of appeal. The dismissal of the

         appeal on 23.03.2015 must, therefore, be understood as a

         procedural       order,     amenable          to recall    upon     subsequent
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         compliance.

                      27. A similar view has been reiterated by the Hon’ble

         Supreme Court in Hindusthan Commercial Bank Ltd. v.

         Punnu Sahu reported in (1971) 3 SCC 124, wherein it was held

         that the expression “entertain” has been consistently understood

         to mean “adjudicate upon” or “proceed to consider on merits”,

         and not the initiation of proceedings. The said interpretation, as

         adopted in earlier decisions of the Allahabad High Court, was

         expressly approved by the Hon’ble Supreme Court. The relevant

         part of the said order reads as follows:

                          “4…It is the contention of the appellant that the
                          expression. "entertain" found in the proviso refers to the
                          initiation of the proceedings and not to the stage when
                          the court takes up, the application for consideration.
                          This; contention was rejected by the High Court relying
                          on the decision of that court in Kundan Lal v. Jagan
                          Nath Sharma .The same view had been taken by the
                          said High Court in Dhoom Chand Jain v. Chamanlal
                          Gupta and Haji Rahim Bux and Sons v. Firm Samiullah
                          and Sons       and again in Mahavir Singh v. Gauri
                          Shankar. These decisions have interpreted the
                          expression "entertain" as meaning 'adjudicate upon' or
                          'proceed to consider on merits'. This view of the High
                          Court has been accepted as correct by this Court in
                          Lakshmiratan Engineering Works Ltd. v. Asst Commr.,
                          Sales Tax, Kanpur. We are bound by that decision and
                          as such we are unable to accept the contention of the
                          appellant that Clause (b) of the proviso did not apply to
                          the present proceedings.”

                      28. In such circumstances, once the appellants

         complied with the requirement of pre-deposit and approached

         the Tribunal, the DRAT was well within its jurisdiction to
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         consider the application for restoration. To hold otherwise

         would result in an unduly rigid interpretation, defeating the very

         purpose of providing a statutory remedy of appeal.

                      29. Accordingly, it is held that in light of Section 21 of

         the Act, dismissal of an appeal for non-compliance of pre-

         deposit is procedural in nature, and is amenable to recall subject

         to compliance of the statutory requirements.

                      30. Issue No. (ii) is also answered in favour of the

         appellants.

                      31. In the present case, it is not in dispute that the

         appellants,       though      belatedly,      have   complied   with   the

         requirement of pre-deposit and approached the Tribunal for

         restoration of the appeal. The DRAT, while passing the order

         dated 29.09.2023, exercised the jurisdiction vested in it under

         the Act. The absence of elaborate reasoning in the order, by

         itself, would not render the exercise of jurisdiction non est, if

         the power to pass such an order otherwise exists in law.

                      32. Another aspect which merits consideration is that

         the powers under Section 22(2) are intended to advance the

         cause of justice and to ensure that adjudication is not thwarted

         solely on technical grounds. The legislative intent underlying

         such provision is to strike a balance between procedural
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                      discipline and substantive justice. To hold that the Tribunal

                      becomes completely powerless to recall its order, even in a

                      situation where the statute expressly provides for review and

                      setting aside of dismissal orders, would lead to an unduly

                      restrictive interpretation, contrary to the object of the enactment.

                                   33. In view of the aforesaid, the judgment dated

                      04.09.2024 passed by the learned Single Judge in CWJC No.

                      1388 of 2024 is hereby set aside.

                                   34. Consequently, the order dated 29.09.2023 passed

                      by the Debts Recovery Appellate Tribunal, Allahabad in Appeal

                      Dy. No. 748/2023, restoring Appeal No. R-99/2014, is affirmed.

                                   35. Accordingly, the present intra court appeal stands

                      allowed.

                                   36. Pending application(s), if any, shall also stand

                      disposed of.




                                                    (Sudhir Singh, J)


                                                (Sunil Dutta Mishra, J)
Sujit/-
AFR/NAFR                AFR
CAV DATE                NA
Uploading Date          21.04.2026
Transmission Date       NA


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