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Allahabad High Court

CHANDRALEKHA SINGHversusCANARA BANK REGIONAL OFFICE,LKO. THRU. AUTH. OFFICER/CHIEF MANAGER AND 3 OTHERS

Decided
Disposal
Allowed/Partly Allowed on merits/Granted

Holding

The order dated 02‑09‑2024 passed by the DRT is quashed and the matter is remanded for a fresh order after a hearing.

Summary

Petitioner Chandralekha Singh filed a petition under Article 227 challenging a Debt Recovery Tribunal (DRT) order dated 02‑09‑2024, alleging that the order was passed without any hearing and was prima facie suspicious. The respondent, Canara Bank Regional Office, contended that an appeal against the same order was pending before the Debt Recovery Appellate Tribunal (DRAT). The High Court, relying on its earlier decision in a similar matter (Matters Under Article 227 No.5381 of 2024), held that the DRT had violated principles of natural justice and quashed the impugned order. The matter was remanded to the DRT to pass a fresh order after affording the petitioner a proper hearing, with a direction to decide the case expeditiously. The petition was allowed.

Issues considered

  • Whether the DRT order dated 02‑09‑2024 was passed in violation of the principles of natural justice by not affording a hearing.
  • Whether the order is prima facie suspicious and therefore liable to be quashed under Article 227 of the Constitution.
  • Effect of a pending appeal before the DRAT on the petition under Article 227.

Subjects

  • Article 227
  • natural justice
  • Debt Recovery Tribunal
  • quash order
  • remand
  • hearing
  • bank dispute
  • appeal pending

Judgment

                                                                              Neutral Citation No. - 2025:AHC-LKO:31231


                                         Court No. - 6
                                         Case :- MATTERS UNDER ARTICLE 227 No. - 3164 of 2025
                                         Petitioner :- Chandralekha Singh
                                         Respondent :- Canara Bank Regional Office,Lko. Thru. Auth.
                                         Officer/Chief Manager And 3 Others
                                         Counsel for Petitioner :- Anuj Kudesia,Abhishek Tiwari,Rishabh
                                         Chauhan
                                         Counsel for Respondent :- Prashant Kumar Srivastava

                                         Hon'ble Pankaj Bhatia,J.

                                         1. Heard Shri Rishabh Chauhan, learned counsel for the
                                         petitioner and Shri Prashant Kumar Srivastava, learned counsel
                                         for the respondent/Bank.

                                         2. Present petition has been filed by the petitioner challenging
                                         the order dated 02.09.2024 passed by the DRT.

                                         3. Submission of learned counsel for the petitioner is that no
                                         hearing was done and the order came to be passed. He draws
                                         my attention to the similar orders passed by this Court wherein
                                         this Court had noticed the prima-facie misconduct of the officer
                                         of the DRT and also directed the CBI to proceed with the
                                         matter. The said order is a series of orders passed by the then
                                         DRT which are prima-facie suspicious and do not inspire
                                         confidence.

                                         4. Learned counsel for the respondent states that against the
                                         impugned order, the petitioner has also preferred an appeal
                                         before the DRAT being Misc. Appeal No.580 of 2024, which is
                                         pending.

                                         5. In view thereof, considering and following the reasoning
                                         recorded in the order dated 10.12.2024 passed Matters Under
                                         Article 227 No.5381 of 2024, impugned order dated 02.09.2024
                                         is quashed.

                                         6. Matter is remanded to the DRT to pass a fresh order in
                                         accordance with law after affording an opportunity of hearing to
                                         the petitioner.

                                         7. The DRT shall endeavour to decide the matter expeditiously.

                                         8. Present petition stands allowed in above terms.

                                         Order Date :- 26.5.2025
                                         nishant


Digitally signed by :-
NISHANT MOHAN
High Court of Judicature at Allahabad,
Lucknow Bench


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