Allowed

M/s Hindusthan Agencies v. Taraknath Das

DRAT21 Sept 2022REGULAR APPEAL/26/2020

Case brief

AI extract

What is this about?

The Debt Recovery Appellate Tribunal allowed an interim application to implead a third party, Ashok Kumar Agarwal, as a Respondent in an appeal arising from a bank auction. The Tribunal directed the appellant to implead the intervenor, who had deposited a superior bid amount, allowing him to file opposition within three weeks.

What did the court decide?

Interim Application I.A. 33 of 2021 allowed; Appellant directed to implead Ashok Kumar Agarwal as Respondent; Intervenor allowed to file opposition within three weeks.

M/s Hindusthan Agencies versus Taraknath Das — Banking and Recovery | DRAT (2022)

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IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT KOLKATA

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(Appeal No. 26 of 2020) (Arising out of S.A. 37 of 2018 in DRT, Cuttack)

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THE HON’BLE MR. JUSTICE ANIL KUMAR SRIVASTAVA CHAIRPERSON

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21.09.2022 M/s. Hindusthan Agencies … Appellant -VsTarak Nath Das & Others … Respondents Mr. Rahul Poddar, Learned Counsel for Appellant Ms. Aparna Das, Learned Counsel for Respondent No. 1

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Mr. Pankaj Kumar Mukherjee, Learned Counsel for Respondents No. 2, 3 and 4/ Bank of Baroda

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Mr. A. K. Dhandhania with Mr. Soumo Mukherjee, Learned Counsel for the Intervenor

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THE APPELLATE TRIBUNAL :

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An order of the Hon’ble Calcutta High Court at Orissa passed WPC 9752 of 2020 dated 24^th August, 2022 is submitted by the Appellant wherein the writ petition has been dismissed as infructuous by the Hon’ble Calcutta High Court.

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Application, being I.A. 33 of 2021, has been filed by one Ashok Kumar Agarwal for impleading him as a party on the ground that he is an interested party over the bid in the auction conducted by the Bank. His bid could not be considered in e-auction process due to technical reasons. Pursuant to the order of the DRT, Cuttack, he offered an amount of Rs.4.00 crore, which is more than the final bid amount. This amount is deposited by the Applicant before Learned DRT, Cuttack. Since the Applicant is a prospective buyer from the stage of e-auction and the offer is much more than the Appellant he should be impleaded as a proper party in the appeal.

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Appellant filed objection and stated that application is not legally maintainable. It is moved with the purpose to delay the proceedings. Sale has been completed and Sale Certificate has been issued in favour of the Appellant. No fact is suppressed by the Appellant in the appeal. Accordingly, the application is liable to be dismissed.

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Bank has also filed an objection opposing impleadment of the internevor.

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I have heard the Learned Counsel for the parties and perused the record.

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Learned Counsel Applicant submits that Applicant is a proper party as he had deposited the amount of Rs.2.00 crore. It is further submitted that Learned DRT had issued a direction that if the Appellant deposits Rs.2.00 crore, then Bank and auction purchaser shall take steps to register the property in favour of Ashok Kumar Agarwal. It is submitted that it shows that the Applicant is proper party in the proceedings so far his interest is involved in the proceedings.

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Learned Counsel for the Appellant submitted that the intention of the Applicant is just to delay the proceedings. It is further submitted that it is prerogative of the Appellant as against whom he is seeking relief. Further, the SARFAESI Applicant wants to redeem the property under the garb of alleged intervenor by allegedly taking a stand that the intervenor has an interest in the disputed property.

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As far as intervenor is concerned, in the impugned order Learned DRT has specifically ordered that:

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“ 14. Under these circumstances and as stated supra, in order to given an opportunity to the applicant to discharge the loan liability, granted one month time to applicant to deposit the balance amount of Rs.2 crores before the respondent bank and the applicant is directed to take steps to deposit Rs.2 crores and the respondent bank and auction purchaser are directed to take steps to register the property in favour of Mr. Ashok Kumar Agarwal or in favour of applicant after deposit of Rs.2 crores within 1 month. In case applicant failed to pay Rs.2 crores, the auction purchaser is at liberty to deal with the property which is purchased through auction after one month from the date of this order. The applicant deposits

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Rs.2 crore within one month the respondent bank is directed to return the amount of Rs.3,35,31,000/- with fixed deposit rate of interest from the date of deposit till payment is made and all the expenses for registering the sale deed and further costs are directed to debit from the account of the applicant and pay the same to the auction purchaser after one month from the date of this order.”

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It shows that even Learned DRT has taken into account the fact of depositing the amount by the intervenor, Ashok Kumar Agarwal, hence he is a proper party and should be given an opportunity of hearing keeping in view the principles of natural justice.

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Accordingly, I.A. 33 of 2021 is allowed.

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Appellant is directed to implead the intervenor as a Respondent. Intervenor should file opposition in appeal within period of three weeks with advance copy to the Appellant as well as Bank; who may file rejoinder within two weeks thereafter.

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List on 21^st December, 2022 for hearing of the appeal along with Appeal No. 73 of 2022.

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Copy of paper book be provided to intervenor within a week.

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(Anil Kumar Srivastava,J) Chairperson

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Dated: 21^st September, 2022 01/ac

M/s Hindusthan Agencies v. Taraknath Das

Case brief

What is this about?

What did the court decide?

M/s Hindusthan Agencies v. Taraknath Das

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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