JUDGEMENT
DEBANGSU BASAK, J. -
(1.) The petitioner has assailed an Order dated April 28, 2017 passed by the Chairman, Debts Recovery Appellate Tribunal in Appeal No. 66 of
2017.
(2.) Learned Advocate for the petitioner has submitted that, the petitioner is the assignee of the residue of the unexpired period of the
leasehold interest in terms of a lease deed dated September 12, 1975 in
respect of premises No. 14, A.K.M. Siddique Lane (formerly Wellesley
Lane), Kolkata- 700016. The petitioner had filed a suit being C.S. No. 97
of 1992 before this Hon'ble Court, inter alia, for recovery of possession.
The third respondent is a party defendant in such suit. A Receiver was
appointed in such suit. By an Order dated April 1, 1992, Joint Receivers
were appointed by the Hon'ble High Court for taking actual physical
possession of the suit property. In terms of such Order dated April 1,
1992, the Joint Receivers had visited the suit premises and had taken possession thereof on April 2, 1992. The Joint Receivers had put wooden
board in the premises indicating that, the Joint Receivers are in
constructive possession of the suit premises. He has referred to the
Order dated April 1, 1992 and the minutes of the meeting of the Joint
Receivers subsequent thereto, in support of his contentions that, the
Joint Receivers are in possession of the suit premises. He has submitted
that, the suit is still pending. The appointment of the Joint Receivers
have not been withdrawn or vacated. The suit premise is, therefore,
custodia legis. The third respondent is aware of such possession by the
Joint Receivers. Notwithstanding the suit property being custodia legis,
the third respondent by suppressing such fact and without obtaining the
leave of the Court appointing the Joint Receivers, had filed a proceeding
under Section 19 of the Recovery of Debts Due to Banks and Financial
Institutions Act, 1993. The petitioner upon coming to know of such
proceedings, had filed an application before the Recovery Officer. By the
time, the petitioner could apply before the Recovery Officer, the
proceedings under Section 19 of the Act of 1993 had culminated into a
certificate and execution proceeding for the purpose of recovery of
certificate amount had been initiated. In such recovery proceedings, the
suit property was put up for sale and sold by the Recovery Officer. The
sale by the Recovery Officer is bad on the ground of the breach of the
principles of custodia legis. The sale is illegal, null and void. He has
submitted that, the issue of custodia legis raised by the petitioner in the
application before the Recovery Officer was not dealt with. The Recovery
Officer had disposed of the application by an Order dated September 3,
2015. The order of the Recovery Officer was appealed against. Such appeal was dismissed by the Presiding Officer by its Order dated October
8, 2015. The appeal carried against the order of the Presiding Officer was dismissed by the impugned Order dated April 28, 2017 passed by
the Debts Recovery Appellate Tribunal. In none of the three stages of the
proceedings did any of the authority consider and decide upon the point
of custodia legis raised by the petitioner.
(3.) In support of the contention that, the proceedings initiated by the bank before the Debts Recovery Tribunal under Section 19 of the Act of
1993 and all orders passed therein dealing with the suit property including the order of sale in respect thereof are illegal, null and void,
learned Advocate for the petitioner has relied upon 1959 Volume 1 SCR
page 333 (Kanhaiyalal v. D.R. Banaji & Ors.). He has submitted that,
the impugned order should be set aside. The order of sale of the suit
property in the proceedings under Section 19 of the Act of 1993 be
declared null and void.;
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