BLOSSOMS BIO TECH LTD Vs. CENTRAL BANK OF INDIA

JUDGEMENT

(1.) AGGRIEVED against the Order dated 7.8.2003 passed by the PO, DRT, Coimbatore, for sale of the hypothecated goods, the appellants have come forward with this appeal. Counsel for the appellants submits that what has been sold by the Receiver are the hypothecated goods, the value of the goods is more and it is more than about Rs. 3 crores and the hypotheca has been sold for a very meagre sum of Rs. 40,10,000/- and so the appellants are much prejudiced on that and the Order passed by the PO, DRT, for sale of the hypothecated goods for Rs. 40,10,000/- is not sustainable. He further pointed out that there is also no valuation by the Bank for the hypothecated goods and the goods have been sold by the Receiver for a very small amount and the borrower is very much affected by the sale of the goods and there is no need for the sale immediately and the sale can be conducted by the Tribunal in fresh manner and the defendant can be permitted to take part in the proceedings.

(2.) Counsel for the respondent Bank submits that the appellants defendants were all along aware of the proceedings in connection with the auction and the Counsel for the appellants also sent many letters to the Bank and so it cannot be stated that the appellants were not aware of the Court proceedings. Counsel for the respondent Bank also submits that when the hearing was advanced to another date, even on that petition notice was sent to the party and this was returned as "Party left". Counsel for the appellants submits that the Counsel on record was very much available but no notice was sent to the Counsel on record.

(3.) SO, it is seen that even after tenders were received, the defendants have taken part and they have filed Memo before the DRT for keeping these tenders in abeyance, SO, the defendants appellants were well aware of all the proceedings and they have also taken part in the auction proceedings. As the three tenders were received by the PO, DRT, and the offer of Sh. P.P. Mathew Vattakunnel was for the highest bid amount of Rs. 40,10,000/-, the PO, DRT, has accepted the tender offer by Sh. P.P. Mathew Vattakunnel and has ordered sale of Sh. P.P. Mathew Vattakunnel. The PO, DRT, has also granted two weeks further time for deposit of the auction amount and time was granted for depositing the balance amount and now the auction purchaser has paid the entire amount of Rs. 40,10,000/-.