IN THE HIGH COURT AT CALCUTTA, CIRCUIT BENCH JALPAIGURI
BIVAS PATTANAYAK, J.
Bizmart Projects Private Limited and Others – Appellants
Versus
Bank of Baroda and Others – Respondents
C.O. No. 49 of 2024
Decided On : 21-06-2024
JUDGMENT :
BIVAS PATTANAYAK, J.
1. This civil revisional application under Article 227 of the Constitution of India has been preferred by the petitioners challenging the impugned order dated 4th March, 2024 passed and sale notice dated 24th January, 2024 issued by the learned Recovery Officer, Debts Recovery Tribunal, Siliguri in R.C. No. 4 of 2021.
2. The brief fact of the case is that the opposite party no.1-Bank of Baroda initiated a proceeding before the learned Debts Recovery Tribunal, Siliguri under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (hereinafter referred to as the "RDB Act") being O.A. No. 4 of 2019 for recovery of the alleged debt assessed to the tune of Rs. 7,52,47,142.89/- against the petitioners and the proforma respondents. On 23rd March, 2021, the learned Presiding Officer, Debts Recovery Tribunal, Siliguri passed judgment and decree in the aforesaid O.A. Consequent thereto a recovery proceeding was initiated before the learned Recovery Officer, Debts Recovery Tribunal, Siliguri which has been registered as R.C. No. 4 of 2021. The learned Recovery Officer on 13th January, 2022 as per requirement directed the opposite party no.1-Bank to serve demand notice upon the petitioners. However, without service of demand notice, on the returnable date i.e. 24th February, 2022, the opposite party no.1-Bank prayed for attachment of the property of the petitioners. The learned Recovery Officer directed the opposite party no.1-Bank to submit the service report on substitution of the name of the bank and produce statement of accounts of the loan account of the petitioners on the next date of hearing. Direction passed by the learned Recovery Officer was not complied with by the opposite party no.1-Bank. Despite apparent non- compliance, the prayer of opposite party no.1-Bank for attachment of the property of the petitioners was unilaterally allowed by the learned Recovery Officer. The petitioner filed an application being I.A. No. 21 of 2023 praying inter alia for direction upon the opposite party no.1-Bank to provide certain information and documents to which the opposite party no.1-Bank was directed to file affidavit-in-opposition. After lapse of substantial period, the opposite party no.1-Bank served a copy of the affidavit-in-opposition through email. Soon thereafter on 6th June, 2023, submissions were advanced on behalf of the opposite party no.1-Bank for appointment of Receiver for attachment and taking over physical possession of the property of the petitioners. On 8th August, 2023, the learned Recovery Officer directed that notice for settling of sale proclamation of the property of the petitioners be issued and served upon the petitioners. On 22nd December, 2023, the learned Recovery Officer directed the demand notice to be published in two newspapers. On 24th January, 2024, the opposite party no.1-Bank submitted service report on paper publication of the demand notice and on such date a sale notice was issued by the learned Recover Officer which was published in the newspapers “The Telegraph” and “Anandabazar Patrika” on 28th January, 2024. Thereafter the petitioners filed an application registered as I.A. No. 30 of 2024 praying inter alia for recall of the order dated 24th January, 2024 and setting aside of the impugned sale notice dated 24th January, 2024, precisely, on the grounds that the learned Recovery Officer did not have the requisite jurisdiction to take any steps in connection with a property which is outside the jurisdiction of the learned Tribunal and non-compliance of the order of the learned Recovery Officer by the opposite party no.1-Bank to serve a copy of the demand notice upon the petitioners. On 4th March, 2024, the application of the petitioners being I.A. 30 of 2024 was dismissed by the learned Recovery Officer, Debts Recovery Tribunal, Siliguri. Being aggrieved by and dissatisfied with the impugned order, the petitioners have preferred the present revisional application.
3.
Recovery Officers must adhere to jurisdictional limits and cannot impose binding interim orders affecting property rights without proper evidentiary basis and due process.
The Debts Recovery Tribunal has jurisdiction to set aside ex parte decrees under the Recovery of Debts Due to Banks and Financial Institutions Act.
The jurisdiction for challenging appellate tribunal orders lies in the High Court corresponding to the original tribunal's location, affirming the principle that appellate orders merge with original ....
The civil court retains jurisdiction to adjudicate on the validity of sale and mortgage deeds under the SARFAESI Act, and a plaint cannot be partially rejected under Order VII Rule 11.
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