2005 Supreme(Mad) 492
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Mrs. Prabha Sridevan, J.
M/s. Andrew Yule and Company Limited represented by its Deputy General Manager and others
Versus
The Recovery Officer, Debts Recovery Tribunal-I, Chennai, and others
W.P.Nos.39649 of 2002, 27303 of 2003, 17736 and 20357 of 2004,
Decided On : 21 March 2005
G. Masilamani, Senior Counsel, for M/s.King and Patridge for Petitioners in W.Ps.No.39649 of 2002 and 27303 of 2004.
Abudu Kumar Rajaratnam, for Petitioners in W.P.No.17736 of 2004.
A.J.Jawad, for Petitioners in W.P.No.20357 of 2004.
T.V.Ramanujam, Senior Counsel, for M.S.Mani, (For Respondent No.2 in W.Ps.No.39649 of 2002,) 20357 and 17736 of 2004 and Respondents Nos.3 and 4 in W.P.No.27303 of 2003.
S.Venkatesan, for Respondent No.2 W.P.No. 27303 of 2003.
No scope for judicial review.
Headnote:Income-tax (Certificate Proceedings) Rules-Rules 39, 41 to 47-Recovery proceedings-tenants asked for handing over possession-Held, tenants are not defaulters as such provisions of Rule 39 cannot be invoked-Order threatening forcible dispossession unsustainable.
"This is to certify that M/s.A.R.Housing Private Limited. has been declared the purchaser through a sale by public auction held on 29.8.2001 of the under-mentioned immovable property. The property described is situated in T.S.No.11, Urur Village, Mylapore-Triplicane Taluk, Chennai District."
Pursuant to this sale certificate, the Recovery Officer issued several letters to the petitioner herein calling upon them either to "hand over vacant possession of the property" or informing the petitioners that if vacant possession is not handed over, they would be "evicted from the premises forcibly...".
2. Mr.G.Masilamani, learned senior counsel appearing for the petitioners in W.P.Nos. 39649 of 2002 and 27303 of 2003 and Mr.Abudu Kumar Rajaratnam as well as Mr. A.J.Jawad, learned counsel appearing on behalf of the petitioners in W.P. Nos.17736 and 20357 of 2004 respectively, submitted that the aforesaid order is liable to be quashed and relied on a judgment of this Court reported in A. Stephen Samuel, Proprietor, M/s.Industrial Seauity Agency, Coimbatore v. Union of India,(2003)2 M.L.J.220. The learned senior counsel also raised, inter alia, objections relating to the procedure adopted by the Debts Recovery Tribunal in bringing this property to sale.
3. The relevant facts for the purpose of this case are as follows:
M/s.Global Trust Bank Limited filed O.A. No.271 of 2001 against M/s.Triveni Garments Private Limited and others for recovery of debt. A memorandum of compromise was filed and an order was passed on 25.7.2001. The decree was for the recovery of a sum of Rs.5,25,00,000. This order refers to the willingness of the first respondent to purchase the property at Villivakkam and also to the payments by the first respondent made in advance. Thereafter, a public notice was effected on 18.8.2001 for the sale to be conducted on 29.8.2001. As far as the records show, there is only one publication of notice for the Villivakkam property. On 3.5.2002, the first respondent filed an application before the Debts Recovery Tribunal to substitute the Adyar property for the Villivakkam property. The petitioners claim to be the tenants in respect of the Adyar property. This application was ordered ex parte. Another joint memorandum of compromise signed on 16.9.2003 was filed before the Debts Recovery Tribunal. Para.5 of the said memorandum of compromise reads thus:
"M/s.A.R.Housing Private Limited took part in the public auction held on 29.8.2001 and declared as successful bidders and the auction price was fixed at Rs.370 lacs for purchase of 4.3 acres being the first portion (Part-I) of the Villivakkam land. As per the terms and conditions of the auction, the said A.R. Housing Private Limited had paid 25% of the bid amount. i.e. Rs.92,52,500 on 10.9.2001."
This joint memorandum contains Schedules ‘A’ ‘B’ and ‘C’ properties. Schedules ‘A’ and ‘B’ relate to the Villivakkam property and Schedule ‘C’ relates to the Adyar property. This memorandum does not refer to any auction after 29.8.2001. the report however reads thus:
"REPORT OF THE RECOVERY OFFICER ON THE JOINT MEMO FILED BY THE PARTIES IN O.A.No. 271 OF 2001 AND AFFIDAVIT FILED BY M/S. A.R. HOUSING PRIVATE LIMITED.
In O.A No. 271 of 2001, final order has been passed and D.R.C.No.45 of 2002 has been issued for recovery of a sum of Rs.5,25,00,000 from the defendants. The "C" Schedule property has been sold for a total sale consideration of Rs.3,70,10,000 to M/s. A.R.Housing (P) Ltd., in the public auction held on 21.8.2003. The sale was confirmed in two stages on 9.8.2002 and on 18.7.2003. The sale proceeds were passed on to the applicant bank on 17.9.2003. The balance amount is yet to be recovered by sale of the remaining prope