BANK OF RAJASTHAN LTD. vs VCK SHARES AND STOCK BROKING SERVICES LTD.

The Supreme Court ruled that under Section 19 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (RDB Act), a Debt Recovery Tribunal (DRT) has jurisdiction to hear counter-claims and set-offs made by a debtor. The Court held that such claims should not be tried exclusively by a Civil Court, affirming the DRT's authority to adjudicate these matters. The judgment of the Calcutta High Court was set aside, reinforcing the DRT's jurisdiction over the counter-claims in question.