THIRUMURUGAN PROPERTIES Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) Challenge in this Petition, at the instance of the Third party, is to the Debt Recovery Certificate issued by the Debt Recovery Tribunal.

(2.) The Petitioner would claim that it has purchased the property subject matter of Mortgage with the Bank, all original Title Deeds are available with it and therefore, the alleged equitable Mortgage created by the Debtors with the Bank itself is not valid. When the property was sought to be attached in the Execution proceedings by the Recovery Officer attached to the Debt Recovery Tribunal, the Petitioner filed a Claim Petition under Rule 11 of Schedule 2 of the Income-Tax Act, which provides procedure for recovery of tax, since the Recovery Officer exercises the right of sale under those rules framed under the Income-Tax Act.

(3.) According to the Petitioner, on the filing of the Petition under Rule 11, the Bank withdrew the Attachment proceeding and sought to proceed on the basis of the Recovery Certificate, which directs realization of the amount by way of sale of the property in question. Aggrieved by the said action, the Petitioner is before this Court, contending that since Debt Recovery Tribunal is not a Civil Court, Recovery Certificate issued by the Debt Recovery Tribunal cannot direct sale of the property.