Judgment

Mr. Jaswant Singh, J.:- Present petition has been filed by petitioner, a partnership firm aggrieved against letter dated 15.10.2019 (Annexure P-3) issued by respondent No. 3 – Greater Ludhiana Area Development Authority (hereinafter referred as to “GLADA”), vide which it has expressed reluctance to transfer property bearing Plot No. BN-15 , MC No. B – XXX – 1845 , near HDFC Bank , Phase II , Focal Point , Ludhiana – 141010 (hereinafter referred to as “secured asset”) in favor of the petitioner. The secured asset was sold to the petitioner in an open auction conducted on 09.05.2019, by Debts Recovery Tribunal (DRT), in execution proceedings initiated by Recovery Officer (RO) pursuant to Decree / Recovery Certificate (RC) obtained by Punjab National Bank (hereinafter referred to as “PNB” or “Secured Creditor”), inter alia on the ground that the erstwhile owner/ borrower has to pay certain dues to the Central Excise Department. It has further prayed that direction may be issued to respondent No. 3 to transfer the property in favor of petitioner by holding that the petitioner / auction purchaser is not liable to pay the dues of the erstwhile owner/borrower to the Central Excise. Petitioner has also made an alternative prayer seeking refund of the auction money i.e. Rs. 6,00,10,000/- in case, if the aforesaid prayer is not to be granted.

FACTUAL BACKGROUND

2. The brief facts of the case are that, Punjab National Bank – Respondent No. 1 (hereinafter referred to as “Secured Creditor”) had initiated recovery proceedings against the borrower M/s AIP industries and its guarantors , by filing of Original Application (OA) No. 502/2012 under Section 19(1) of the Recovery of Debts And Bankruptcy Act, 1993 (hereinafter referred to as “Recovery Act,1993”) before the Debts Recovery Tribunal – III, Chandigarh claiming an amount of Rs. 9,19,77,453 alongwith future and pendente lite interest on the basis of mortgage of the secured asset effected in its favour. The said Original Application, was decreed in favour of the secured creditor-Punjab National Bank on 07.09.2014, and Recovery Certificate (RC) was issued under Section 19 (22) of the Act, 1993 vide which PNB was held entitled to recover the aforesaid amount from the defendants / borrowers in the OA.

3. Since the Judgment Debtors/Borrowers, did not satisfy the RC/Decree, execution proceedings were carried out before the Recovery Officer, DRT -III, Chandigarh in Recovery Certificate No. 1237 of 2017 under Section 29 of the Recovery of Debts and Bankruptcy Act, 1993 pursuant to which proceedings were required to be carried out against the defaulters in terms of Second Schedule to the Income Tax Act, 1961 (hereinafter referred to as “Second Schedule”). In terms of Rule 52 of the Second Schedule, the Recovery Officer (RO), issued Proclamation of Sale dated 29/03/2019 (Annexure P-1), vide which the secured assets/mortgaged property, bearing Plot No. BN-15 , MC No. B – XXX – 1845 , near HDFC Bank , Phase II , Focal Point , Ludhiana – 141010 (hereinafter referred to as “secured asset”), was put to sale by way of an open auction, on “as is where is basis” on 09.05.2019, with the Reserve Price of Rs. 6 Crore.

4. The petitioner participated in the auction and submitted its bid of Rs. 6,00,10,000/- to purchase the said property. After waiting for the stipulated period of 30 days, as provided under Rule 60-62 of the Second Schedule, when no objections for setting aside of the sale, were received from any quarters, the Recovery Officer DRT-III, Chandigarh, proceeded to confirm the sale under Rule 65 ibid and finally issued Certificate of Sale of immovable property on 25.07.2019 (Annexure P-2) in favor of the petitioner, pursuant to which the petitioner acquired title over the secured asset.

5. Thereafter, the petitioner seems to have approached respondent No. 3- GLADA, with an application dated 04.10.2019 submitted vide Diary No. 3921, requesting it for transfer of ownership of the secured asset in i