Case Note & Summary
The dispute arose from recovery proceedings initiated by ICICI Bank Ltd. against Sajjan Textile Mills Ltd. after the latter defaulted on a loan of Rs.3 Crore sanctioned on 15th July 1992. Following the default, the Bank filed a civil suit for recovery, and the Bombay High Court appointed a Court Receiver for the appellant's properties. The appellant sought registration as a sick industrial unit, which was granted, and subsequently, the BIFR ordered its winding up. Recovery proceedings were initiated, leading to the attachment and sale of the appellant's properties. The appellant contested the proceedings, claiming it was not adequately represented in a writ petition filed by the Bank in the Madras High Court. The High Court disposed of the writ petition without the appellant's counsel present, which led to the appeal. The appellant argued that it suffered prejudice due to lack of representation. The respondent Bank contended that the appellant was a formal party and that the sale proceedings had attained finality. The Supreme Court found merit in the appellant's claim, stating that it was entitled to a hearing as a party in the writ proceedings. The Court set aside the High Court's order and remitted the case for a fresh decision, directing that the status quo be maintained until the High Court's decision was rendered. The appeal was allowed without costs.
Headnote
A) Civil Procedure - Right to be Heard - Denial of Hearing - Constitution of India, Article 14 - Appellant was not represented during the High Court proceedings, leading to serious prejudice. The court held that the appellant, being a party to the writ proceedings, was entitled to a hearing before the impugned order was made. The order of the High Court was set aside and the case was remitted for a fresh decision (Paras 5-7).
Issue of Consideration
Whether the appellant was denied the right to be heard in the writ proceedings before the High Court.
Final Decision
The Supreme Court set aside the High Court's order dated 2nd August 2004 and remitted the case for a fresh decision, maintaining the status quo until the High Court's decision.
Law Points
- Right to be heard
- Writ jurisdiction
- Recovery proceedings
- Finality of orders
