At, High Court of Rajasthan Jaipur Bench
By, THE HONOURABLE MR. JUSTICE MOHAMMAD RAFIQ & THE HONOURABLE MR. JUSTICE GOVERDHAN BARDHAR
For the Petitioners: Anita Agarwal, Advocate. For the Respondent: --------------
Contention of learned counsel for the petitioners is that according to Section 1(4) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (for short ‘the Act’), the provisions of the Act shall not apply where the amount of debt due to any bank or financial institution or to a consortium of banks or financial institutions is less than ten lakh rupees or such other amount, being not less than one lakh rupees, as the Central Government may, by notification, specify. It is contended that the Central Government, by notification, can specify any other amount between ten lakh rupees and one lakh rupees but not lesser than one lakh rupees. However, vide Notification dated 06.09.2018 (Annexure-1), the Central Government has raised such pecuniary limit from ten lakh rupees to twenty lakh rupees for filing application for recovery before the Debts Recovery Tribunal by such banking or financial institutions, which is contrary to the authority conferred upon the Central Government by Section 1(4) of the Act. This could be done only by the Parliament by amending the said provision raising the outer limit upwards and not by the Central Government under its delegated powers by the impugned notification.
Issue notice to respondent
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, returnable by 12.11.2018. Till the returnable date, operation of Notification dated 06.09.2018 (Annexure-1) shall remain stayed.