MADHUR INDUSTRIES Vs. PUNJAB NATIONAL BANK ETC.

JUDGEMENT

(1.) The prayer made by the petitioners in the instant writ petition filed under Art. 226 of the Constitution of India is for quashing the auction proceedings dated 27.11.2006 (Annexure P-11), whereby the property of the petitioner-firm has been auctioned which is not confirmed so far. A further prayer has also been made for quashing order dated 7.3.2007 (Annexure P-10) passed by Debt Recovery Tribunal-I, Chandigarh dismissing the objections filed by the petitioners. When the matter came up for consideration on 31.8.2007. learned Counsel for the petitioner had pleaded that one Hukam Chand Singla is prepared to purchase the property for Rs. 21 lacs as against the earlier highest bid in favour of respondent 2 of Rs. 15.30 lacs. It was pointed out that a demand draft of Rs. 20 lacs has been prepared by Shri Hukam Chand Singla. We had directed the petitioner to file an appropriate application with a copy in advance to learned Counsel for the respondents.

(2.) Accordingly, an application along with affidavit has been filed wherein it has been averred that an amount of Rs. 21 lacs is offered for the said property by Sh. Hukum Chand Singla. who has also got prepared a demand draft No. 288400 dated 29.8.2007 drawn on Punjab National Bank, Dhuri for Rs. 20 lacs in favour of Recovery Officer, DRT-II, Chandigarh. Original demand draft has been handed over to Mr. R.S. Bhatia, learned Counsel for respondent No. 1 in the Court today which is to be handed over to Recovery Officer, Debt Recovery Tribunal-II, Chandigarh. An amount of Rs. 1 lac is to be additionally deposited by the petitioners with the Recovery Officer, DRT-II, Chandigarh within three days from today as per the statement of the Counsel for the petitioner. We have heard learned Counsel for the parties at some length.

(3.) We are of the considered view that once a difference of more than Rs. 5 lacs in auction price has surfaced, it would be just and appropriate to hold an open fresh bid by affording another opportunity, to the respondent-Bank to collect maximum amount. The petitioners as well as auction purchaser-respondent No. 2 can make efforts to bring the better buyer to participate in the fresh auction to be made by the Recovery Officer, DRT-II, Chandigarh. Accordingly, the Recovery Officer, DRT-II, Chandigarh is directed to hold fresh open auction. It is also made clear that if any higher bid than the one given by the petitioner is received, then the Bank would not release the amount of Rs. 21 lacs till the finalisation of the bid. However, an amount of Rs. 15.30 lacs deposited by respondent No. 2 i.e., auction purchaser, shall remain deposited till the finalisation of the fresh auction. In case respondent No. 2-auction purchaser is not successful bidder then the said amount shall be refunded to him, within two weeks of finalisation of the auction along with interest as per rules. The same direction would apply to Hukam Chand Singla. The Recovery Officer shall fix an early date of auction, preferably within a period of one month from the date of receipt of copy of this order. In case, respondent No. 2 i.e. auction purchaser, succeeds in the fresh auction, then an amount of Rs. 15.30 lacs paid by him, shall be adjusted along with interest upto the date of auction.