RAM LAXMAN HOTELS LTD. Vs. INDUSIND BANK LTD.

JUDGEMENT

(1.) The challenge in this writ petition is to an order dated 7 th Dec., 2006 passed by the Chairman, Debt Recovery Appellate Tribunal, Mumbai in Miscellaneous Appeal bearing no. 242 of 2005. The petitioner is a Company incorporated under the Companies Act,1956. Respondent no. 1 is a Scheduled Bank. Respondent no. 2 is also a Company incorporated under the Companies Act, 1956.

(2.) The petitioner was owner of inter alia a brand name "Holiday Inn". The petitioner operated a Five Star Hotel under the brand name "Holiday Inn". The structures put up on the property were belonging to the petitioner as franchisee of "Six Continent Hotels". After the respondent no. 1-bank obtained decree against the petitioner on or about 23 rd Aug., 2001 in Original Application No. 158-P of 2001 from the DRT, Pune for a sum of Rs. 7,52,34,294/- a recovery certificate came to be issued on 11 th Jan., 2002. The bank therefore filed Recovery Proceedings no. 4 of 2002 at DRT, Pune.

(3.) It is the case of the petitioner that on 25 th Jan., 2002 the Recovery Officer issued a demand notice directing the petitioner to pay the aforesaid sum. Upon failure to pay, Recovery officer issued an order of attachment on 9th May, 2002. The attachment is stated to be restricted to immovable property and there is no mention of any movable property proposed to be sold. A notice for settling the proclamation sale came to be issued by the Recovery Officer on 30th May, 2002 which did not contain reference to any movable property. On 24th May, 2002 it is stated that the banks valuers had issued a valuation report setting out the fair market value of land and building with the dimensions of the building. The report clarified that movable furniture, carpets, crockery, interior work, decorative movable items, kitchen accessories and machinery were not taken into account but only fixed interiors and built-in furniture were considered for the purpose of valuation. On 3 rd July, 2002 the proclamation of sale issued also described the property without referring to movable articles.