JUDGMENT

Date of Pronouncement: 29.05.2026

JUSTICE R. D. KHARE, CHAIRPERSON

1. The above mentioned three appeals have been filed by appellant u/s 20 of the Recovery of Debts and Bankruptcy Act, 1993 (hereinafter referred to as “the RDB Act”) against the common impugned order dated 04.06.2025 passed by the Tribunal below, whereby three appeals filed by three different parties u/s 30 of the said Act against the order dated 18.10.2024 passed by the Recovery Officer II, DRT, Jabalpur in TAEX No. 08/2005 have been allowed, therefore; these appeals are being decided by this common order.

2. The Recovery Officer vide the order dated 18.10.2024 had set aside and quashed the Sale proceedings pertaining to the auction conducted on 05.04.2023 in respect of the property being “Agricultural Land on Part of Khasara Nos. 70 admeasuring 1.4 acres, Khasara No. 71 admeasuring 3.33 acres, Khasara No. 72 admeasuring 4.78 acres, Khasara No. 74 admeasuring 2.38 acres, Khasara No. 75 admeasuring 0.50 acres, Khasara No. 76 admeasuring 0.30 acres, Khasara No. 77 admeasuring 0.25 acres, Khasara No. 82/2 admeasuring 0.06 acres & Khasara No. 1159 / 79 admeasuring 1.0 acres, total area 14 acres situated at Gopalpur Road, PH No. 37, Inside to Sehore - Indore Road, Tehsil & District - Sehore (MP)”(for short hereinafter referred to as “subject property”). The Recovery Officer further directed cancellation of the registration in respect thereof in favour of the auction purchaser. Further, the Recovery Officer also directed the CH Bank to refund the amount of Rs. 5.54 Crores at the rate of 5% simple interest, per annum from 19.04.2023. Simultaneously, the Recovery Officer also directed the Appellant - CD to deposit Rs.2,82,53,210.79 on or before 11.12.2024 towards complete satisfaction of the Recovery Certificate in respect of the decree against the Appellant - CD.

3. The relevant facts of the present case are that the then Dena Bank filed a Suit for recovery of Rs. 48,12,586.83 with interests and costs before the Court of District Judge, Sehore against the appellant and one Shri B.K. Nopany, who were arrayed as Defendants No. 1 & 2 respectively. The Suit was subsequently transferred to the DRT, Jabalpur and was registered as T.A. No. 03/03. The said Transfer Application (Suit) filed by the respondent-Bank was decreed/allowed by the Tribunal below vide Judgment and decree dated 19.04.2005 and accordingly, the Recovery Certificate was issued, which was registered as TAEX No. 08/2005 before the Recovery Officer-II of the Tribunal below. However, the relevant portion of the said judgment/decree is as under:-

"The Defendant No. 1 and 2 shall jointly and severally pay a sum of Rs.48,12,586.83 and costs of the application to the Applicant Bank. The Defendants shall jointly and severally also pay interest @ 12% p.a. from 11.12.1985 within 30 days failing which the Bank shall have the right to recover by sale of charged/mortgaged/ hypothecated properties, as per process of law.

Costs include the Advocate fee also as per rules applicable in the State."

4. It appears that during course of the execution, an auction was conducted on 05.04.2023 by the Recovery Officer in respect of the property in question, wherein Rakesh Rai and Pragya Patel were found to be highest bidders and the property in question was sold for a sum of Rs. 5.54 Crores. The auction purchasers thereafter filed an application seeking demarcation and physical possession of the auctioned property on 21.09.2023.

5. It is averred that the appellant filed an application dated 02.01.2024 before the Recovery Officer for setting aside of the entire auction proceedings. The said application was taken up for hearing by the Recovery Officer and an order dated 18.10.2024 was passed by the Recovery Officer and the auction proceedings were set aside and the auction conducted on favour of the aforesaid Auction Purchasers was cancelled. The Recovery Officer also directed for refund of the ent