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TMI Blog2001 (11) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... ders dated October 15, 1999, June 19, 2001 and September 6, 2001. A further prayer has been made that rules 48 to 51 of the Income-tax Rules be declared as null and void. The petitioners were granted packing credit limit of Rs. 25 lakhs and foreign bill purchase limit of the same amount by the Union Bank of India, Dayal Bagh Marg, Agra (respondent No. 4), and an agreement was executed in that regard on May 27, 1996. In order to ensure repayment of the loan, the petitioners created an equitable mortgage of three houses situated in Mathura city in favour of the respondent-bank. Subsequently, the petitioners were sanctioned additional packing credit limit of Rs. 19 lakhs and additional foreign bill purchase limit of Rs. 25 lakhs. It appears that the petitioners did not repay the amount to the bank (respondent No. 4) and consequently it filed Original Application No. 3 of 1999, against the petitioners for recovery of the amount before the Debt Recovery Tribunal, Jabalpur. They did not file their written statement and, consequently, the Tribunal proceeded ex parte against them. Ultimately, by its order dated October 15, 1999, it decreed the claim of the bank for a sum of Rs. 93,88,386 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ahabad, on September 7, 2001, and have also moved an application for staying the execution of the decree but the appeal has not yet been formally registered. There is no averment in the writ petition that the petitioners have deposited seventy-five percent of the amount of debt as determined by the Tribunal and in view of section 21 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as the RDB Act), the appeal cannot be entertained by the Appellate Tribunal and this must be the reason for not registering the appeal. Thus there is no impediment in the way of the bank to execute the decree and recover the amount. The bank has applied for initiating action for sale of the mortgaged properties and in that connection various orders have been passed by the Recovery Officer which have been impugned in the writ petition. Sub-section (1) of section 30 of the Act provides that notwithstanding anything contained in section 29, any person aggrieved by an order of the Recovery Officer made under the Act, may, within thirty days from the date on which a copy of the order is issued to him, prefer an appeal to the Tribunal. Therefore, the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mary mode, and a copy of the proclamation shall be affixed on a conspicuous part of the property and also upon a conspicuous part of the office of the Tax Recovery Officer. (2) Where the Tax Recovery Officer so directs, such proclamation shall also be published in the Official Gazette or in a local newspaper, or in both; and the cost of such publication shall be deemed to be costs of the sale. (3) Where the property is divided into lots for the purpose of being sold separately, it shall not be necessary to make a separate proclamation for each lot, unless proper notice of the sale cannot, in the opinion of the Tax Recovery Officer, otherwise be given." Sri Ravi Kant has submitted that the aforesaid rules do not envisage affording of an opportunity of hearing to the defaulter or judgment-debtor whereas rules 54 and 66 of Order 21 of the Civil Procedure Code, specifically provide for giving notice to the judgment-debtor before settling or drawing up proclamation of sale and on account of the said reasons the rules are likely to cause a serious injury to the judgment-debtor (defendant) and consequently they are ultra vires. He has submitted that the provisions of Order 21, rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. The pre amble to the Acts reads as follows: "An Act to provide for the establishment of Tribunals for expeditious adjudication and recovery of debts due to banks and financial institutions and for matters connected therewith or incidental thereto." A brief scrutiny of the provisions of the Act would show that it lays a great emphasis on the time schedule so as to meet its objectives of expeditious adjudication and detailed procedure for trial of suits and execution of decrees provided under the Code of Civil Procedure has been given a go-by. Sub-section (4) of section 19 of the Act provides that on receipt of the application from a bank or financial institution for the recovery of the amount, the Tribunal shall issue summons requiring the defendant to show cause within thirty days of the service of summons as to why the relief prayed for should not be granted. Sub-section (24) of the same section lays down that the application made to the Tribunal under sub-section (1) or sub-section (2) shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the application finally within one hundred and eight days from the date of receipt of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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