Hotel Midtown v. Punjab National Bank
Case brief
What is this about?
The Appellant, having cleared mortgage dues and transferred the property, seeks a stay of recovery proceedings initiated by the Bank for subsequent vehicle loans alleged against the mortgagor. The court grants stay pending disposal of the main appeal.
What did the court decide?
Stay of proceedings before the Recovery Officer in R.P. No.357/2021 pending disposal of the appeal.
What the court decided
BEFORE THE DEBTS RECOVERY APPELLATE TRIBUNAL, AT: MUMBAI Present: Mr Justice Ashok Menon, Chairperson
I.A. No. 125/2023 (Stay)
In Misc. Appeal No. 33/2023
Between
Hotel Mid Town … Appellant/s V/s.
Punjab National Bank & Anr. …Respondent/s
Mr Nirav R. Parikh along with Ms Mumtaz Khan, Advocate for Appellant.
Mr. O.A. Das along with Ms. Pallavi Chari, Advocate for Respondent No. 1 Bank.
-: Order dated: 15/06/2023:-
The appeal is filed under Sec. 20 of the Recovery of Debts and Bankruptcy Act, 1993 (“RDB Act” for short) challenging the order dated 18.02.2023 in Appeal No. 01 of 2023 on the files of the Debts Recovery Tribunal No. II, Ahmedabad (D.R.T.).
- I.A. No. 125 of 2023 is an application filed by the Appellant seeking a stay of the impugned order. The facts as necessary for the disposal of this interlocutory application, in brief, are thus:
Issues for consideration
3 issues framed by the court
Whether an assignee who has discharged the mortgage debt is entitled to a stay of recovery proceedings initiated against the property for subsequent debts incurred by the transferor.
Whether the creditor maintains a lien over mortgaged property for loans availed subsequent to the discharge of the original mortgage and transfer of title, absent evidence of mortgage extension.
Whether the transfer of the mortgaged property after clearing the debt was in contravention of the principles of fraud under the Transfer of Property Act and Income Tax Act.
Parties & counsel
- appellant
Hotel Mid Town
- respondent
Punjab National Bank
- respondent
Anr
Coram
Case details
As recorded by the court registry
All orders in this case
4 orders share this CNR
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