UNION OF INDIA Vs. JANATA SAHAKARI BANK LTD
LAWS(DR)-2005-10-5
DEBTS RECOVERY APPELLATE TRIBUNAL
Decided on October 19,2005

Appellant
VERSUS
Respondents

JUDGEMENT

K.J.Paratwar, - (1.) THIS appeal(application) under Section 17 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short "the SRFAESI Act") pertains to Hat No. 19, 4th Floor, Fulgado Apartments, N.C. Kelkar Road, Opp. Sena Bhavan, Dadar(W), Mumbai-400028 along with parking space Nos. 2 and 9 in the said apartment.
(2.) The respondent No. 1 Bank through the respondent No. 3 issued proclamation of sale of the said property on 22nd November, 2004 since Mrs. Hina Bharat Khona and Mr. Bharat Somchand Khona had created equitable mortgage of said flat along with 2 parking spaces in the Bank's favour for securing its loan and had committed default in making payments despite notice under Section 13(2) of the SRFAESI Act. The appellant(applicant) herein has assailed said notice in writ petition No. 561 of 2005 before the Hon'ble High Court of Judicature at Bombay which by order dated 27th April, 2005 while disposing of the petition gave liberty to the appellant(applicant) to file present proceedings.
(3.) THE foundation of the appeal/application is that the income-tax dues over Rs. 11 crores are due from Mr. Bharat Somchand Khona since from the assessment year 1993-94. THE Income-tax Department had, therefore, given demand notice dated 31st January, 1996 under Section 156 of the Income-tax Act to the respondent No. 2. On failure to make the payment, order of attachment of the said property was passed on 11th April, 1997. THE equitable mortgage in the Bank's favour was created after issuance of notice under Section 156 of the Income-tax Act to be precise on 4th April, 1996 and is, therefore, said to be bad in law. THE proclamation is sought to be set aside on aforesaid ground.;


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