(1.) This writ petition has been filed for quashing the judgment and order of the Debts Recovery Tribunal, Cuttack (hereinafter called the Tribunal') in O. A. No. 29 of 2006 and for quashing of the auction sale by opposite party No. 1-Bank in pursuance of publication of notice dated 10-11-2005. FACTUAL MATRIX :
(2.) The facts and circumstances giving rise to this case are that petitioner No. 1 had availed a cash credit loan to the tune of Rs. 2,00,000/- (two lakhs) in the year 1997 from the opposite party-Bank to run its business. Petitioners Nos. 2 and 3 stood as guarantors by scrutinizing their assets pertaining to Sabak Plot No. 2, Sabak Khata No. 94 corresponding to Hal Plot No. 2, Khata No. 100 of Mouza, Baramunda.
(3.) Petitioner No. 1 could not repay the loan as per the terms incorporated in the agreement. Therefore, opposite party-Bank issued a notice dated 24-5-2004 under Section 13(2) of the Securitisation and Reconstruction of the Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter called "the Act, 2002"). The Bank issued another notice dated 8-10-2004 under Section 13(4) of the Act, 2002 and appointed M/s. Lalita Chambers and Constructions as Bank's Enforcement Agency to assist the Bank to take all necessary steps for exercise of right under the Act, 2002. The notice under Section 13(4) was published in daily newspaper. The 'Sambad' on 10-11-2005 for auction of the property in question fixing 17-12-2005, the date of sale. Petitioner, approached the Bank immediately thereafter, for entering into One Time Settlement (OTS) offering a sum of Rs. 2,20,000/- and deposited a sum of Rs. 20,000/- in September, 2005 and further deposited a sum of Rs. 20,000/- on 10th November, 2005 to show its bona fide to make payment of the outstanding dues and to get the matter settled. The Bank in its letter dated 21st November, 2005, asked the petitioner to apply for settlement afresh giving specific amount as offer and terms of OTS. Petitioner again offered a sum of Rs. 2,20,000/- towards full and final settlement of its loan dues subject to deduction of the amount already deposited. The petitioner also expressed its willingness to pay another sum of Rs. 1,00,000/- within six weeks by selling some of its belongings if the proposal for OTS was accepted. Opposite party No. 2 vide letter dated 1st December, 2005 intimated the petitioner that an amount of Rs. 4,96,369.66 was due to the bank which included principal amount of Rs. 1,91,058.66; interest to the tune of Rs. 2,85,180; and the balance amount towards legal and recovery expenses. Petitioner was asked to deposit 25% of the offered amount by 5th December, 2005 as the auction sale was fixed for 17th December, 2005. Petitioner deposited a sum of Rs. 30,000/- on 14-12-2005; Rs. 20,000/- on 16-12-2005 and Rs. 29,000/- on 17-12-2005. In spite of acceptance of the money to the tune of Rs. 79,000/-, as per the instruction of the bank, which was more than 25% of the offered amount, opposite party-Bank proceeded with the auction sale and settled the property with a sum of Rs. 13,93,000/- in favour of opposite party No.
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