IMPORTANT POINT
The requirement for a registered sale deed for title transfer in landed property and the jurisdiction of the competent Civil Court in deciding issues of title.

JUDGMENT :

Heard learned counsel for the parties.

2. The present writ petition has been filed by the Petitioner-Bank against the judgment dated 21.03.2018 passed in Appeal Sr. No. 184 of 2015 passed by the Debts Recovery Appellate Tribunal, Allahabad, whereby the auction purchase has been annulled and direction has been given for returning the amount deposited to the Petitioner-Bank towards the purchase of the impugned property i.e., the landed property.

3. The brief facts are quoted hereinbelow:

The Petitioner-Bank has lent certain loan to the borrowers and for non-refund of the same, a recovery proceeding has been initiated in the year 1998 before the D.R.T, Patna being P.T No. 198 of 1998. The learned D.R.T., Patna has passed the order on 21.01.2002 in favour of the Bank for recovery of the due amount. The amount determined was Rs. 25,34,735.10 with interest and for recovery of the same, certificate has been issued on 21.01.2002. On the strength of the said certificate, recovery proceeding has been initiated being R.P. No. 18/2005.

During the recovery proceeding, the property as detailed has been put on auction.

“Mouja Gari, Thana: Ranchi, District: Ranchi, P.S.: No. 194, Khewat No.: 1, Khata No. 37, Plot No. 27, Sub-Plot No. 18, Area 10 K 10 Chhatak 9 sq.ft. bounded by

North: 20’ of wide road.

South: 6’ vide service lane.

East: Plot No. 27, Sub Plot No. 19.

West: Plot No. 27, Sub Plot No. 17.”

4. The auction has been held on 08.11.2005 with stipulation “as is where is basis” and the present respondent no. 6 has been declared highest bidder and accordingly certificate of sale was issued in favour of the respondent no. 6 on 22.12.2005.

5. It appears that a petition has been filed by the present respondent no. 6 for recovery of auction amount along with poundage fee, construction cost of boundary wall with interest before the Recovery Officer on 22.02.2007. On such petition, record has been called for vide order dated 28.02.2007. Notice has been issued to the present petitioner on 10.04.2007. Thereafter, the petitioner has filed rejoinder and after completion of the pleadings, the Recovery Officer has passed the impugned order dated 11.04.2008 in R.P.No. 18 of 2005. By this order, the sale has been annulled and the Bank has been directed to refund the amount to the highest bidder (present respondent no. 6).

6. Being aggrieved, the Bank has filed an appeal being Appeal no. 05 of 2008 before the D.R.T, Ranchi which has been dismissed vide order dated 22.01.2010. This order has also been impugned.

7. It appears that being aggrieved by the above two orders, a writ petition has been preferred being W.P.(C) No. 2825 of 2010 before this Court, which has been held not maintainable giving liberty to the petitioner to approach Debt Recovery Appellate Tribunal, Allahabad.

8. It further appears that utilizing the above liberty, a petition has been preferred before D.R.A.T, Allahabad which has been numbered as Appeal Sr. No. 184 of 2015 which has been dismissed vide order dated 21.03.2018 upholding the impugned order passed by the Recovery Officer as well as D.R.T. The above three orders have been impugned in the present writ petition.

9. Two issues have been raised before this Court:

(i) The Bank has a prefect title as the transaction has taken place before coming into force of the Urban Land (Ceiling & Regulation) Act and as such the basis for annulling the auction was wrong;

(ii) As per the terms of the auction, the stipulation was “as is where is basis” and as such the present respondent no. 6 could not have filed any petition for annulment of the auction. So far as the land in question is concerned, it appears that the impugned property/mortgaged property was purchased by the borrower Satish Chandra from one Joyti Krishna Das after taking No Objection Certificate from the competent authority on 01.04.1986. It further appears that Urban Land (Ceiling & Regulation) Act has come into effect from 01.04.1976. It further appears that the said transaction h