RASHPAL SINGH Vs. DEBTS RECOVERY APPELLATE TRIBUNAL

JUDGEMENT

(1.) This petition has been filed by a highest bidder in the public auction conducted by the Recovery Officer, Debts Recovery Tribunal, for sale of the mortgaged property measuring 12 bighas, seeking quashing of the judgment dated 5.1.2007 (Annexure P-16), passed by the Debts Recovery Tribunal, Chandigarh, whereby the appeal filed by respondents No.4 to 6 herein against the order dated 16.12.2004, passed by the Recovery Officer was allowed and the sale of the land in question was set aside; and the order dated 27.9.2007 (Annexure P-26), whereby the appeal filed by the petitioner against the said judgment has also been dismissed by the Debts Recovery Appellate Tribunal, New Delhi.

(2.) In the present case, the brief facts are that the Punjab National Bank (respondent No.7 herein) filed an O.A. in the year 1998 before the Debts Recovery Tribunal against M/s Amrit Cellulose Limited and its Director, including respondents No.4 to 6, for recovery of Rs. 2,24,14,973/- along with interest. Vide judgment dated 21.1.1999, the said O.A. was allowed by the Debts Recovery Tribunal and recovery certificate bearing No. 555 of 2001, holding that the respondent bank is entitled to recover a sum of Rs. 2,24,14,973/- along with interest from the defendants including respondents No.4 to 6, was issued. Thereafter, Recovery Officer, Debts Recovery Tribunal, started recovery proceedings. Since in the aforesaid judgment and the Recovery Certificate dated 21.1.1999, respondents No.4 to 6 were proceeded against ex-parte, they filed an application under Order 9 Rule 13 CPC for setting aside the ex-parte judgment and the Recovery Certificate dated 21.1.1999. Vide order dated 22.12.2003, the ex-parte judgment and the Recovery Certificate were set aside qua respondents No.4 to 6.

(3.) During the pendency of the application under Order 9 Rule 13 CPC, filed by respondents No.4 to 6, their mortgaged land measuring 12 bighas was put to sale by way of public auction by the Recovery Officer. At that time, the reserve price for the said land was fixed at Rs. 60.00 lacs. However, the said auction did not materialise. Subsequently, after setting aside of the ex-parte judgment and the Recovery Certificate, the matter was again heard by the Debts Recovery Tribunal on merits and again the CWP No. 975 of 2008 -3- judgment was passed in favour of the bank. A fresh Recovery Certificate dated 28.5.2004 for recovery of Rs. 2,24,14,973/- along with interest was issued.