TAHSILDAR PATHANAPURAM Vs. CANARA BANK

JUDGEMENT

(1.) Sustainability of the sale conducted by the Recovery Officer, DRT, Ernakulam in respect of more than 500 acres of land for a total sale consideration of 1.77 crores, bid in favour of the 3rd respondent is subjected to challenge in W.P.(C). 13744/2007 on many a ground, legal as well as factual. W.P.(C).24482/2004 filed by the State is with a specific prayer to establish the better rights of the State in respect of the dues from the defaulter under various Statutes, contending that the 'State dues' will have an overriding effect when compared with the other liabilities of the defaulter including to the Bank from whom loan had been availed by the defaulter, The basic points on which the petitioner in W.P.(C). 13744/07 addressed this Court are as given below:

(2.) With regard to the sequence of events, it is to be noted that the petitioner in W.P.(C). 13744/07 is the Managing Director of the Company "Priya Rubber Estate and Plantations (P) Limited", which was a Company constituted by the father of the petitioner, with the younger brother of the father, as another Director. It is brought to light that the mother of the said petitioner is no more and the father also took his last breath during the pendency of the proceedings. As on date, the petitioner is the Managing Director of the said Company and is prosecuting the affairs along with one Mr. Vijayakumar, the other Director.

(3.) The petitioner's Company had borrowed a sum of Rs. 19 lakhs from the 2nd respondent Bank in the year 1990 and the repayment could not be effected on time, as scheduled. The Bank filed a Civil Suit in the Sub Court, Kottarakkara, within whose jurisdiction, the property is situated. In the mean time, the Debts Recovery Tribunal was constituted; under which circumstances, the Civil Suit pending before the Sub Court got transferred to the DRT, Chennai. It was thereafter, that the DRT, Emakulaxn was constituted, upon which, the case was transferred to the Emakulam Bench of the DRT, where it was pending.