SITA RAM SINGHANIA vs BANK OF TOKYO-MITSUBISHI LTD.&ORS

The Supreme Court held that High Courts should not routinely grant stays on proceedings before Debt Recovery Tribunals when defendants challenge the constitution of the Tribunal. The Court emphasized that granting such stays undermines the purpose of establishing these Tribunals. In this case, the Allahabad High Court's conclusion that it lacked jurisdiction over proceedings initiated in Madhya Pradesh was affirmed.