PROMILA GHAI Vs. ORIENTAL BANK OF COMMERCE

JUDGEMENT

(1.) In this proceeding under Article 226, an order of the Debt Recovery Appellate Tribunal (DRAT) made on 27.6.2011 dismissing the Petitioner's appeal has been impugned.

(2.) The appeal before DRAT emanated from proceedings initiated by the first respondent bank (hereinafter referred to as "the OBC") against M/s Mahine Tools, Sh. P.S. Tanwar and Sh. Hemant Vij ("borrowers") for recovery of Rs. 13,17,420.70 with interest. These proceedings were initiated before the DRAT in respect of borrowings of the said M/s Mahine Tools. Sh. Hemant Vij was impleaded as the third respondent in those proceedings and later as a guarantor and mortgager of the suit property (measuring 24 canals out of Khewat No.164, Khasra No.74 and 78, Village Gaval Pahari, Tehsil Sohna, Gurgaon hereinafter referred to as "suit property"). The DRAT decreed the suit in favour of the OBC and recovery certificate was issued on 13.7.2002. The certificate debtors, i.e., the defendants/borrowers before the DRAT had unsuccessfully sought to compromise the matter. On 08.10.2002, the property was attached by the Recovery Officer.

(3.) The petitioner claimed that she became aware of the attachment only in the year 2005 when she saw the advertisement that it was scheduled to be auctioned on 06.05.2005. It was in these circumstances that she claims to have made inquiries about the antecedent facts and become aware about the debt, amounts due and payable to the OBC and the fact of attachment. The auction, which took place on 06.05.2005 in the scheduled manner- saw Sh. H.C. Nanda and Sh. Puneet Nanda (hereinafter referred to collectively as "the auction purchasers") emerging as highest bidders. They bid Rs. 47.10 lakh for the property. The petitioner preferred objections before the Recovery Officer which were dismissed on 04.10.2005. Being aggrieved, she preferred an appeal before the DRT under Section 13 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as "Recovery of Debts Act"). This was dismissed on 25.09.2007. In these circumstances, she further appealed to the DRAT.