Punjab Nat.Iona.L Bank, Dasuya vs Chajju Ram & Ors.

The Supreme Court held that under Section 31 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, execution proceedings pending in a Civil Court are subject to transfer to the Debts Recovery Tribunal if they pertain to debts as defined in Section 2(g) of the Act. The Court reaffirmed its earlier ruling in Allahabad Bank vs. Canara Bank, establishing that the definition of 'debt' includes liabilities due under a Civil Court decree. Consequently, the High Court's decision to reverse the trial court's transfer order was set aside, allowing the transfer of execution proceedings to the Tribunal.