Debt under the debt recovery act
John P Thomas
(Querist) 18 November 2016
This query is : Resolved
Bank filed a suit against its servant for realization of money for an amount more than ten lakhs, on the allegation that the money due to the bank is the misappropriated amount and the same has been acknowledged by the servant . Whether the suit is maintainable or the civil court has jurisdiction to entertain the suit in the light of the bar under section 18 of the Debt recovery act?
Devajyoti Barman
(Expert) 19 November 2016
The suit is very much maintainable though the efficacious remedy would have been to to start departmental proceeding and deduct the amount from his salary or other benefits.
Kumar Doab
(Expert) 19 November 2016
"on the allegation that the money due to the bank is the misappropriated amount and the same has been acknowledged by the servant "
If the employee is deliquent and dept has established the misappropriation and employee has admitted misappropriation then as per service rules recovery/forfeiture are options.
The statement is mere allegation or it has been proved?
rajeev sharma
(Expert) 19 November 2016
RDDBF ACT defines that the debt means any liability claimed by bank from any person which occurred during the course of business activity undertaken by bank. In your case the amount misappropriated was accepted by employee and the bank now proposes to recover that amount. Obviously the liability was not incurred in the course of business undertaken by bank. Bank has a right to recover money in the usual course by filing money suit and obtaining a decree and civil court has jurisdiction. The bank may not recover money by taking action under RDDBF Act
Rajendra K Goyal
(Expert) 19 November 2016
Agree with the expert Devajyoti Barman, Kumar Doab.
J K Agrawal
(Expert) 20 November 2016
Only Civil Court has jurisdiction.
Dr J C Vashista
(Expert) 21 November 2016
I agree with the expert advise of Mr. Rajeev Sharma and Sh. J K Agarwal, if the query is not an academic.
Civil Court (but not DRT) have jurisdiction to entertain present case for recovery of amount from the bank servants/employees who have admitted misappropriation of bank funds.
Kumar Doab
(Expert) 23 November 2016
It is good to see that some authors do come back to thank the experts.
