VIJAYA BANK Vs. RECOVERY OFFICER

JUDGEMENT

(1.) The petitioner has challenged an interim order dated 26th July, 2007, passed by the Debts Recovery Appellate Tribunal, rejecting its application for an order for not refunding the balance amount of the sale proceeds of a property that was sold in execution of the recovery certificate issued in favour of the petitioner by the Debts Recovery Tribunal (DRT). The DRT allowed the petitioner's Original Application partly viz. to an extent of Rs. 12,90,464/- with interest thereon. On the basis thereof, the petitioner obtained a recovery certificate in the sum of about Rs. 29,00,000/- which included interest and costs.

(2.) As the respondents failed to pay the above amounts, the petitioner filed an execution application. Pursuant thereto, a property being shop No. 3 bearing No. 19/A, Plot No. 123 at Irla Society Road, Vile Parle, Mumbai was sold for a sum of about Rs. 44,10,000/-. The amount of the recovery certificate was paid over to the petitioner. The petitioner, however, sought the said order restraining the payment of the balance sale proceeds to the respondent. This was in view of the fact that the petitioner's Original Application had been allowed only partly. The petitioner has, therefore, filed an appeal before the Debts Recovery Appellate Tribunal which is pending. The petitioner contended that pending the disposal of the appeal, the balance sale proceeds ought not be handed over to the respondents.

(3.) By the impugned order, the Debts Recovery Appellate Tribunal rejected the application on the ground that the properties were neither secured nor attached pending the Original Application. It was, therefore, held that unless a case was made out for attachment before judgment by a proper application for the same, the normal consequence after satisfaction of the decree and the recovery certificate should follow viz. to permit the respondents to withdraw the balance sale proceeds.