Law:

Section:

(a) Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act (XV of 1997) Ss. 9(4), 10 & 21 Specific Relief Act (I of 1877), S. 42 ¬Civil Procedure Code (V of 1908), O.VII R. 11 Suit for rendition of accounts and declaration Rejection of plaint without deciding leave application Plaintiff customer claimed to have adjusted financial facility well within time and thus, becoming entitled to clearance certificate, but Bank was not issuing clearance certificate and was demanding more amount from him Bank filed application for leave to defend the suit, which was replied by plaintiff ¬Banking Court instead of deciding leave application while relying upon statement of accounts filed by Bank rejected the plaint for not disclosing any cause of action Validity ¬Rejection of plaint without deciding leave application was against the provisions of law Defendant as a matter of right could not defend the suit unless upon filing of proper application as provided under S. 9(4) read with S. 10 of the Act, Banking Court granted leave to defend the suit to such defendant Banking Court without deciding leave applica¬tion was not empowered to call upon defendant to defend suit, muchless on filing of statement of accounts to reject the plaint Banking Court had completely travelled beyond the scope and provisions of special statute i.e. Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997 Court in order to reject a plaint had to take into account only the contents of plaint and defence pleas raised by defendant could not be considered for such purpose Plaint disclosed a cause of action as averments contained therein were supported by photo copies of voluminous receipts showing that plaintiff had faithfully paid the amount in instalments Present case did not fall under any of the clauses of O. VII, R. 11, C.P.C. Impugned suffered from grave legal infirmity as having been passed in complete oblivion of the express provisions of law High Court accepted appeal, set aside impugned / decree, and remanded the case for its fresh decision with, observations that leave application would be deemed to be pending before Banking Court, which would…

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