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2012 Supreme(Cal) 837

IN THE HIGH COURT OF CALCUTTA
Soumen Sen, J.
Sajeda Khatoon
Vs.
Bank of India & Ors.
C.O. No. 4137 of 2011
Decided on : 12.9.2012

Advocates Appeared:
For the Petitioner: Mr. Aniruddha Roy, Mr. Diptangshu Basu Roy, Mr. Jayabrata Basu Roy, Mrs. Chandreni Mukherjee
For the Opposite Parties: Mr. A.K. Routh, Mr. S. Pal Chowdhury, Mr. I. Bhattacharyya

Headnote:

DEBT RECOVERY TRIBUNAL ACT, 1993 - SECTION 21 - A person, not being a borrower, if could maintain an appeal without pre-deposit as contemplated under Section 21 of Recovery of Debts due to Banks and Financial Institutions Act, 1993 (hereinafter be referred to as DRT Act, 1993) is the issue to be decided.

Fact of the Case:

The petitioner, who claimed to be the wife of one of the guarantors, filed an application for vacating the order of attachment in respect of a property. The Presiding Officer, DRT, Patna directed the Recovery Officer to proceed with the auction sale of the property in question along with other attached properties. The petitioner contended that the said property admittedly belonged to Ariful Hoda who executed the sale deed on 2nd March, 2000 in favour of the petitioner on payment of full consideration amount. The said property was neither mortgaged nor charged in favour of the bank.

Finding of the Court:

The court held that a third party who is neither a borrower nor a guarantor and under no contractual obligation to discharge the debt could be required to make a pre-deposit under Section 21 of the DRT Act. The order rejecting the application for releasing the property from attachment, per se, do not and cannot make the petitioner “person liable to discharge the debt”.

Issues: Whether a person, not being a borrower, could maintain an appeal without pre-deposit as contemplated under Section 21 of Recovery of Debts due to Banks and Financial Institutions Act, 1993.

Ratio Decidendi: The right of appeal given to a third party would be curtailed in the event such third party is required to make such pre-deposit on the basis of a certificate issued against the borrowers and guarantors. The said interpretation is onerous, burdensome, harsh and make the said appeal illusory. It is not the object of Sections 20 and 21 of the said Act that a person neither a borrower nor a guarantor and from whom the amount of debt is not due would still be required to make a pre-deposit to maintain the appeal.

Final Decision: The revisional application succeeds and the order dated 31st October, 2011 is set aside. The appeal filed by the petitioner being appeal No.87 of 2010 is restored to file and to be heard and considered on merits. However, the order of attachment in respect of the property shall continue until the disposal of the appeal.

JUDGMENT

Soumen Sen, J.:-Any person, not being a borrower, if could maintain an appeal without pre-deposit as contemplated under Section 21 of Recovery of Debts due to Banks and Financial Institutions Act, 1993 (hereinafter be referred to as DRT Act, 1993) is the issue to be decided in this application.

2. Before the appellate Tribunal, the petitioner contended that having regard to the nature of the impugned order passed by the learned Presiding Officer, Debt Recovery Tribunal and the status of the petitioner, there may not be any liability and hence no requirement to make any pre-deposit under Section 21 of the DRT Act, 1993.

3. The said appeal arose against an order dated 13th October, 2009 passed by the Ld. Debts Recovery Tribunal, Patna by which the Presiding Officer, DRT, Patna directed the Recovery Officer to proceed with the auction sale of the property in question along with other attached properties. The said order was passed in connection with the Recovery Certificate issued in favour of the Bank on 3rd September, 2001. Under the certificate, the opposite party Nos. 2 to 7 were held to be liable jointly and severally for a sum of Rs.1,14,098.99/- up to 30th December, 1992 with cost and all other charges with interest, pendente lite and future interest till realization. On the basis of such certificate, the Recovery Officer registered a case being R.P. Case No.128 of 2001. The Recovery Officer by an order dated 26th December, 2001 attached the immovable properties of the certificate debtors and further steps were taken for public auction of the attached properties. At the stage of sale of one of the properties, the petitioner claiming to be the wife of one of the guarantors, namely, Mr. Ziaul Hoda filed the application for vacating the order of attachment in respect of the said property.

4. Mr. Ziaul Hoda is one of the guarantors and certificate debtors.

5. The petitioner objected to such attachment. She claimed to have purchased one of the attached properties, namely, lot No.11 on the basis of an alleged deed of sale executed on 2nd March, 2000. The said property belonged to one of the borrowers/ certificate debtors, namely, Ariful Hoda who transferred the said property in favour of the petitioner on 2nd March, 2000.

6. The petitioner contended that the said property admittedly belonged to Ariful Hoda who executed the sale deed on 2nd March, 2000 in favour of the petitioner on payment of full consideration amount. The said property was neither mortgaged nor charged in favour of the bank.

7. Ariful Hoda is one of the borrowers and certificate debtors in the said proceeding. The said property was also attached by the Recovery Officer assuming that Ariful Hoda is the owner of the said property on the date of attachment. The petitioner contended that since the said property is neither mortgaged nor charged in favour of the bank and in any event was transferred on nd March, 2000 prior to the issuance of the certificate, no attachment order could be passed in respect of the said property.

8. The Presiding Officer while dealing with the deed of sale dated 2nd March, 2000 held that while the objector was relying on the sale deed dated 2nd March, 2000 and claimed that she had purchased the property, in that event, she should have intervened and objected when the attachment process was continuing. Although the said attachment and auction proceeding started in December, 2001, the petitioner raised the objection only in 2004 without any cogent reason. The petitioner being the wife of one of the guarantors was aware of the pending proceeding and this inter borrower transfer was orchestrated in order to frustrate the certificate. The Presiding Officer also observed that there were inherent infirmities in the deed of sale dated 2nd March, 2000 produced by the objector.

9. The Presiding Officer, accordingly, rejected the said application and directed the Recovery Officer to proceed with the sale of the said attached property along w






























































































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