N R SADASIVAM Vs. INDIAN BANK

JUDGEMENT

(1.) These two Writ Petitions raises a short point of some importance relating to the relevance of proclamation in Auction Sale proceedings. The Writ Petitions are at the instance of a borrower, and the challenge is to the sale notice dated 16th May 2012 in DRC No. 36/2012 in O.A. No. 222/2010 on the file of Debt Recovery Tribunal II, Chennai, and the related Auction proceedings dated 26th June 2012 on the file of the Recovery Officer, Debt Recovery Tribunal, Chennai.

(2.) The Adyar Branch of Indian Bank granted financial assistance to M/s. Anbu Pazhamudir Nilayam, stated to be a Partnership Firm. The Writ Petitioner and Respondents 3 & 4 were the partners of the said Firm. The Petitioner also executed a Guarantee Deed undertaking to pay the amount due from the Second Respondent besides mortgaging the subject property.

(3.) The Second Respondent failed to pay the loan amount and this resulted in initiating recovery proceedings by the Bank. The Bank filed O.A. No. 222 of 2010 before the Debt Recovery Tribunal II, Chennai [hereinafter referred to as the "Tribunal"]. Though the Petitioner was also a party to the proceedings, he has not chosen to appear before the Tribunal. The Tribunal was pleased to issue a Recovery Certificate for a sum of Rs. 7,99,09,385/- authorizing the Bank to recover the said sum with interest. The Petitioner challenged the order dated 28th December 2011 in O.A. No. 222 of 2010 before the Tribunal.