NATIONAL RICE, GENERAL MILLS Vs. BANK OF INDIA

JUDGEMENT

(1.) This letters patent appeal has been filed against judgment passed by the learned Single Bench on 27.11.2008 by which, Civil Writ Petition No. 19113 of 2005, filed by the appellants was dismissed. In that writ petition, the appellants had laid challenge to orders dated 30.9.2003 and 18.11.2005 passed by respondent Nos.4 and 5 respectively. It was their prayer that the orders, referred to above, be quashed and order passed by the Recovery Officer, Debt Recovery Tribunal, Chandigarh on 24.3.2003, be restored.

(2.) Record reveals that the Debt Recovery Tribunal, Jaipur on 13.11.1997 passed an ex-parte decree in favour of respondent No. 1 -Bank of India for an amount of Rs. 65,49,293.74, to be recovered from the appellants. Above said order had become final.

(3.) Pursuant to the said decree, a recovery certificate was issued against the appellants under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (in short, 1993 Act). When the appellants failed to make payment of decretal amount, respondent No. 1, the Bank, filed an application before Debt Recovery Tribunal, Chandigarh seeking sale of moveable and immovable properties lying mortgaged with it. Prayer was allowed vide order dated 20.9.2002. Shri K.C. Bhatia, Advocate was appointed as Court Auctioneer. Under his orders, mortgaged properties were put to auction on 20.11.2002. Reserve price for sale of the mortgaged properties (moveable and immovable) was fixed at Rs. 75 lacs. Respondent No. 2 was the successful bidder for an amount of Rs. 86,40,000/-. Appellants filed an application to set aside above said auction, by alleging that the auction proceedings were manipulated and were not fair. Admittedly, that 'objection application' was not filed as per provisions of Rules 60 and 61 of the second schedule of the Income-tax Act, 1961 (in short 1961 Act). Taking note of the abovesaid fact, the Recovery Officer, on 28.2.2003, passed the following order: