The judgment emphasizes the duty of the Recovery Officer to accurately specify the amount due in the sale proclamation and the valuable right of the judgment debtor to save his property under Rule 60. It also highlights the substantial compliance of the judgment debtor with Rule 60 and the court's decision to restore the auction sale.

JUDGMENT :

M.R. SHAH, J.

1. Feeling aggrieved and dissatisfied with the impugned judgment and order dated 22.12.2015 passed by the High Court of Gujarat at Ahmedabad in Special Civil Application No. 17981 of 2015 by which the High Court has allowed the said petition preferred by the respondent Nos. 1 and 2 herein – original writ petitioners before the High Court and has set aside the order passed by the Debts Recovery Appellate Tribunal, Mumbai (hereinafter referred to as “DRAT”) dated 07.09.2015 in Appeal No. 223 of 2007 and has consequently confirmed the sale in favour of the original writ petitioners, respondent No.5 – subsequent purchaser – M/s. R.S. Infra-Transmission Ltd. has preferred the present appeal.

2. The facts leading to the present appeal in nutshell are as under :-

2.1 A Bank namely, IndusInd Bank Ltd. (hereinafter referred to as the “Bank”) filed an O.A. bearing No. 424 of 1999 before the Debt Recovery Tribunal, Ahmedabad (hereinafter referred to as “DRT”) on 25.05.2006 for recovery of debt and enforcement of security against the original respondent Nos. 3 to 5 (original borrowers). Recovery Certificate bearing RP No.153/2006 was issued in favour of the Bank for recovery of an amount of Rs.71,88,819.87/- recoverable from the original borrowers -respondent Nos. 3 to 5 with further interest payable at the rate of 12% p.a. from 27.12.1999 till realization and the costs, charges and expenses of the proceedings for recovery thereof.

2.2 The immovable properties, being Survey No.188/P admeasuring 36,735 square meters owned by respondent No.3 (borrower) and Survey No.187/P admeasuring 8280.51 square meters owned by respondent No.5 (borrower) situated at Mauje Karan Nagar, Tehsil Kadi, District Mehsana got attached in pursuance of the above Recovery Order/Certificate.

2.3 A proclamation of sale of the properties came to be issued by the Recovery Officer, DRT on 28.11.2006 fixing the public auction on 08.01.2007. As per the proclamation of the sale, the amount due and payable was Rs.1,27,30,527/-including interests as on 30.06.2006. In the auction held on 08.01.2007, the bid of respondent Nos. 1 and 2 herein (original writ petitioners) being the highest offer being Rs.1.35 crores came to be accepted by the Recovery Officer. The successful bidders – respondent Nos. 1 and 2 herein deposited the bid amount on 22.01.2007.

2.4 That the original borrowers thereafter filed an application under Rule 60 of the Second Schedule of the Income Tax Act, 1961 read with Sections 25 to 29 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 for setting aside the above auction vide application dated 25.01.2007 and submitted a Demand Draft for an amount of Rs.1,27,30,527/- as specified in the sale proclamation. Respondent No.3 herein (borrower) also submitted a Demand Draft for Rs.6,75,000/-for payment to the purchaser as penalty, a sum equal to 5% of the purchase money and a Demand Draft for Rs.3,01,290/- towards interest @ 15% from the date of the sale proclamation to the date of deposit, i.e., 25.01.2007. The Recovery Officer adjourned the matter to 06.02.2007 directing the respondents to serve a copy of the order and the application on the Bank and the auction purchaser. In the meantime, the appellant herein expressed its interest in purchasing the properties which were the subject matter of the auction sale and entered into a Memorandum of Understanding with respondent No.3 (borrower).

2.5 The Bank filed its reply on 06.02.2007 before the Recovery Officer in response to the application of the respondent No.5 (on the 29th day from the date of auction). In its reply, the Bank claimed that there was some shortfall in the amount deposited by the borrower but no calculation sheet was attached to the reply. The matter was adjourned for filing of reply by the auction purchaser and the Bank was also directed to file compliance affidavit. The auction purchasers respondent Nos. 1 and 2 herein filed its objection/reply to the app