The court clarified the circumstances under which a party could be held liable for contempt of court in the context of debt recovery proceedings.

Heard the submissions made by Mr. M.S. Palaniswamy, learned counsel appearing on behalf of the petitioner, Mr. S. Veerabagu, learned counsel appearing on behalf of the first respondent and Mrs.Kala Ramesh, learned counsel appearing on behalf of the second respondent. The materials available on record were also perused.

2. For the recovery of the debt due from M/s. Selvanayaki Gin and Press Private Limited and one Natarajan, the State Bank of India, Dharapuram Branch, the Bank initially filed O.A.No.771 of 1997 on the file of Debts Recovery Tribunal, Chennai. Pursuant to the constitution of a separate DRT at Coimbatore, the said application was transferred to DRT, Coimbatore and renumbered as T.A.No.2235 of 2002. The Krishnagiri Taluk Agricultural Producers Cooperative Marketing Society Limited, which is the present petitioner in the contempt petition, obtained a decree from the Deputy Registrar of Cooperative Societies, Krishnagiri for the amount due to the said society from M/s. Selvanayaki Gin and Press Private Limited. Pursuant to the decree obtained from the Deputy Registrar of Cooperative Societies, the Special Officer, Krishnagiri Taluk Agricultural Producers Cooperative Marketing Society Limited brought the property for sale in execution of the said decree. At that juncture, the petitioner (in T.A.No.2235 of 2002) namely, the State Bank of India, Dharapuram Branch filed a writ petition on the file of this Court in W.P.No.25378 of 2001. This Court disposed of the said writ petition by an order dated 04.07.2006, the operative portion which reads as follows:

"9. The third respondent herein claims certain monies from the fourth respondent pursuant to a decree passed by the first respondent. In respect of monies realised under the Act and the question of priorities among the banks and financial institutions and other creditors can be decided only by the Tribunal under the Act, hence, this Court permits the petitioner herein to file an application to implead the third respondent as a party in T.A.No.2235 of 2002 before the DRT, Coimbatore (Originally OA.No.771 of 1992 before DRT, Chennai) so that the Tribunal can adjudicate the claims of the petitioner and the third respondent in accordance with law. This Court granted interim order restraining the first respondent from bringing the property on auction sale, the same shall continue till both the parties approach the Tribunal and thereafter, the Tribunal shall consider the case of the parties on merits and proceed further in accordance with law. The petitioner is directed to file necessary application to implead the third respondent within a period of two weeks from the date of receipt of a copy of this order."

.3. Contending that the State Bank of India which was directed to file a petition for impleading the petitioner herein in T.A.No.2235 of 2002 within a period of two weeks from the date of receipt of a copy of the said order of this Court did not do so, but belatedly filed a petition for impleadment in I.A.No.770 of 2006 in T.A.No.2235 of 2002 on the file of the Debts Recovery Tribunal, Coimbatore; that even after filing the said petition the petitioner therein allowed the said petition to be dismissed without taking necessary steps to serve notice on the petitioner herein, who was sought to be impleaded and that after allowing the said petition to be dismissed the State Bank of India chose to bring the property for sale in public auction, the petitioner has come forward with the present contempt petition seeking punishment of the Presiding Officer of the Debts Recovery Tribunal and Chief Manager of State Bank of India, Dharapuram Branch arrayed as respondents 1 and 2 respectively in the contempt petition. The petitioner has also contended that after the dismissal of I.A.No.770 of 2006, the petitioner filed applications for getting impleaded in the TA and the DRT without disposing of the said application chose to order sale of the properties in public auction