This petition seeks the quashing of the order dated 16th March, 2001 passed by the Debts Recovery Tribunal, Allahabad in Transfer Application No. 408 of 2000 by which the application filed by the Allahabad Bank for recovery of Rs. 35,56,192.46/- was decreed ex parte, the order dated 5th January, 2010 by which the application filed by the petitioners for recall of the order dated 16th March, 2001 was rejected by the Debts Recovery Tribunal, Allahabad and the order dated 17th July, 2012 passed by the Debts Recovery Appellate Tribunal, Allahabad by which the appeal filed by the petitioners for setting aside the order dated 5th January, 2010 passed by the Debts Recovery Tribunal, Allahabad was dismissed.

2. It transpires from the records of the writ petition that M/s. N.C. Carpet Company, a partnership firm with Saroj Sekhari, Rajat Sekhari, Vijay Kumar Sekhari and Rajendra Kumar Sekhari as partners, was sanctioned limit facilities by the respondent-Allahabad Bank and to secure the interest of the Bank, Vijay Kumar Sekhari mortgaged properties by deposit of title deeds of Plot No.235-Ka and Plot No. 3085. On account of the default in payment of the money, the respondent-Bank filed Original Suit No. 272 of 1991 for recovery of a sum of Rs.35,56,192.46/- with interest from M/s. N.C. Carpet Company and the partners which was subsequently transferred to the Debts Recovery Tribunal Allahabad and was numbered as Transfer Application No.408 of 2000.

3. It further transpires from the records that as sales tax dues of Rs.3,82,000/- were not paid by M/s. N.C. Carpet Company, a recovery certificate was issued by the Trade Tax Department for recovery of the dues as arrears of land revenue and consequently Plot No.235- Ka was put to auction and the sale in favour of the highest bidder Bankey Lal Gupta was confirmed on 29th January, 1996. A sale certificate was thereafter issued by the Sub- Divisional Officer on 5th February, 1996 under Rule 285-M of the U.P. Zamindari Abolition & Land Reforms Rules, 1952 (hereinafter referred to as the Zamindari Abolition Rules). All this was done during the pendency of the aforesaid Transfer Application filed by the Bank before the Debts Recovery Tribunal.

4. The respondent-Bank filed objections before the Additional District Magistrate, but since the sale had been confirmed, the Additional District Magistrate, rejected the objections by the order dated 31st January, 1996. The Bank then filed objections under Rule 285-I of the Zamindari Abolition Rules before the Commissioner, Varanasi Division Varanasi, who after hearing the auction purchasers, rejected the objections filed by the Bank on 28th November, 2000 for the reason that the Bank was not the defaulter and the Bank should wait for the decision of the Transfer Application it had filed before the Debts Recovery Tribunal.

5. Transfer Application No.408 of 2000 was ultimately decreed ex parte by the Debts Recovery Tribunal against M/s. N.C. Carpet Company and its partners on 16th March, 2001 for recovery of Rs.35,56,192.46/- and the defendants were also directed to pay pendente lite and future interest @ 15.5% with quarterly rest on the amount till it was paid. It was also observed that the applicant-Bank could recover the Bank dues from the defendants after sale of the property mortgaged and hypothecated with the Bank. The Recovery Officer of the Debts Recovery Tribunal, Allahabad, accordingly, published a notice in the newspaper on 2nd December, 2002 for sale of the properties mentioned in the notice through public auction to be held on 11th December, 2002.

6. It also transpires from the records of the writ petition that Bankey Lal Gupta in whose favour the sale certificate had been issued on 5th February, 1996, sold the aforesaid Plot No.235-Ka to the petitioners by means of the registered sale-deed dated 27th March, 2002 and the petitioners have stated in paragraph-13 of the writ petition that they came to know for the first time about the loan