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R. SUBRAMANIAN AND R. SAKTHIVEL
Thirumurugan Properties, Represented by its Managing Partner – Appellant
Versus
State Bank of India, Stressed Assets Management Branch – Respondent
ORDER :
R.SUBRAMANIAN, J.
Prayer: Writ Petition filed under Article 226 of the Constitution of India, seeking issuance of writ of certiorari, calling for the records of the case related with the impugned final order dated 22.02.2023 passed by Debt Recovery Tribunal, Coimbatore in O.A.No.80 of 2009 and Debt Recovery Certificate dated 07.03.2023 in DRC 06/2023 passed by the Debt Recovery Tribunal, Coimbatore in respect of the petitioner's properties.
1. Challenge in this petition, at the instance of the third party, is to the Debt Recovery Certificate issued by the Debt Recovery Tribunal.
2. The petitioner would claim that it has purchased the property subject matter of mortgage with the Bank, all original title deeds are available with it and therefore, the alleged equitable mortgage created by the Debtors with the Bank itself is not valid. When the property was sought to be attached in the execution proceedings by the Recovery Officer attached to the Debt Recovery Tribunal, the petitioner filed a claim petition under Rule 11 of Schedule 2 of the Income Tax Act, which provides procedure for recovery of tax, since the Recovery Officer exercises the right of sale under those rules framed
A claim petition under Rule 11 of the Income Tax Act can be maintained even in the absence of an attachment, allowing independent title claims to be pursued.
A third party can challenge a Debt Recovery Certificate, and a claim under Rule 11 of the Income Tax Act is maintainable even without an attachment, affirming the right to assert ownership of propert....
The Recovery Officer lacks jurisdiction to sell property not belonging to the defaulter, and aggrieved parties must pursue statutory remedies to assert their claims.
A third party cannot challenge a mortgage created prior to their purchase of property, and the auction proceedings are valid if conducted according to law.
The main legal point established is that the recovery order passed by the Debts Recovery Tribunal is appellable before the appellate authority, and therefore, a writ application challenging the same ....
The court emphasized the importance of considering the submissions and documents produced by the parties in reaching a judgment and held that a judgment passed without such consideration was unsustai....
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