Hon’ble Sudhir Agarwal, J.—This writ petition under Article 226 of the Constitution has arisen from the order dated 31.3.2009 passed by Debts Recovery Appellate Tribunal, Allahabad (hereinafter referred to as the “DRAT”) in Appeal No. R-962 of 2008, filed by Canara Bank (hereinafter referred to as the “Bank”), the respondent No. 3, whereby allowing appeal it has set aside the order dated 10.3.2008 passed by Debts Recovery Tribunal (hereinafter referred to as the “DRT”) in Original Appeal No. 10 of 2005 and has restored Recovery Officer’s order dated 8.9.2005 passed in D.R.C. No. 323 of 2001.

2. The facts, in brief, giving rise to the dispute in present writ petition are as under.

3. (Late) Khushal Chandra Khanna purchased Plot No. D-3, Guruteg Bahadur Nagar Kareilly, Allahabad (hereinafter referred to as the “disputed premises”) on Hire Purchase Agreement from U.P. Awas Evam Vikas Parishad (hereinafter referred to as the “UP AEVP”) vide agreement dated 5.7.1977. The petitioner, Smt. Farhat Anas, wife of Sri Mohd. Anas, claimed to be the owner of aforesaid plot. She executed a registered power of attorney dated 21.9.2005 in favour of Mr. Shaikh Mushtaque Ahmad, son of Late Saeed Ahmad, for necessary litigation against Recovery Officer’s order dated 8.9.2005 in respect to aforesaid property.

4. The agreement provides that Hire Purchaser shall hold disputed premises as tenant for Hire Purchased year, which is a fixed term of four years commencing from November, 1976 and would end on the last date of the month of October, 1980. The Hire Purchaser was to pay half yearly installment of Rs. 2313/-, besides other amount. Thereafter the stipulation (2) (s) and (t) and stipulations (3) and (4), provide as under:

“(2)(s) The owner hereby agrees that the hire purchaser making all payments, due from him in accordance with these presents and performing and observing all the conditions herein contained shall peacefully hold and enjoy as a hire-purchase the said property during the said term except for any lawful interruption or disturbance by the owner or any person lawfully claiming under it.

(t) The hire purchaser of the said plot of land hereby agrees to erect and complete and construction of the house on the plot of land within 5 years of the date of allotment failing which the land shall be liable to be resumed by the Parishad. The hire purchaser shall get the plan of the house approved by the competent authority before commencing the construction.

(3) The owner hereby agrees to transfer the said property to the hire purchase by executing conveyance deed with him in the prescribed form after the expiry of the hire purchase period provided that he has paid all the dues of the owner and of public bodies, if any, prior to such execution. The hire purchaser thereafter ceases to be a hire purchaser and become the owner of property subject to the provisions of the conveyance deed to be executed as provided in para 5.

(4) The conveyance deed shall be executed normally by the owner after the expiry of the hire purchaser period, nevertheless, if the hire purchaser applied for terminating the agreement earlier and vesting in him ownership of the property and if the hire purchaser makes full payment as calculated by the owner (whose decision shall be final and binding) the owner shall execute the conveyance deed.”

5. Sri Khushal Chandra Khanna was proprietor of M/s. Formac. He got a cash credit hypothecation limit sanctioned by the then Lakshmi Commercial Bank (now Canara Bank) for Rs. 2 lacs and against that he executed a security document wherein he deposited Hire Purchase Agreement dated 5.7.1977 for creating equitable mortgage of four mortgaged plots. He also got a lease-deed executed with UPAEVP in respect to aforesaid plot on 8.9.1981. He sought permission to transfer the aforesaid plot to petitioner which was granted by UPAEVP vide letter dated 20.3.1986. Thereafter a sale-deed was executed between petitioner and Sri Khushal Chandra