TaxTMI 
TaxTMI 
2024 (6) TMI 714
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.... For the Respondent : Mr. Saurav Goyal, Advocate Nos. 6 to 8 in CWP-22367-2021 (through VC). For the Applicant : Mr. Atul Sharma, Advocate in CM Nos. 18637-38-CWP of 2021 (through VC). For the Respondent : Mr. Harsh Garg, Advocate No. 3-PNB in CWP-11117-2022, (through VC). **** LISA GILL, J. 1. This order shall dispose of two writ petitions i.e. CWP Nos. 22367 of 2021 and 11117 of 2022. 2. Both the above said writ petition listed at same serial number are taken up together for consideration and adjudication at request and with consent of learned counsel for parties. 3. CWP-22367-2021 has been filed by Central Bank of India for setting aside order dated 25.10.2021 (Annexure P-11) and order dated 28.10.2021 (Annexure P-15) passed by Recovery Officer, DRT-III, Chandigarh. It is further prayed that respondent No. 3 i.e. Recovery Officer, DRT-III be directed to proceed with auction of properties in terms of proclamation of sale notice issued in pursuance to order dated 07.09.2021 passed by Recovery Officer, DRT-III, Chandigarh. 4. CWP-11117-2022 has been filed by M/s Kaur Sain Spinners Limited (corporate debtor) seeking setting aside of notice dated 11.05.2022 ....
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....d and recovery certificate dated 02.03.2020 issued, holding the said bank to be entitled for recovery of Rs. 49,44,65,248/-. Subsequent to passing of judgment and recovery certificate, it was registered as RC No. 325 of 2020 and forwarded to Recovery Officer, DRT-III, Chandigarh for execution. 8. Vide order dated 07.09.2021, Recovery Officer appointed Local Commissioner to serve notice for proclamation of sale via e-mail to be held on 05.11.2021. Matter was adjourned to 01.10.2021 for filing service report of proclamation of sale. It is recorded in order dated 05.10.2021 passed by Recovery Officer that service of proclamation of sale is completed through all modes. Statement of counsel for PNB and Indian Bank was recorded to the extent that it was consortium loan, interest of the said banks must be safeguarded by appropriating sale proceeds. Petitioner - Bank was, thus, directed to proceed with auction process as per terms and conditions of proclamation of sale and file auction report by 15.11.2021. 9. However, Recovery Officer vide order dated 25.10.2021, directed auction proceedings to be put on hold till further orders and petitioner - Bank was directed to obtain fresh val....
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....ore the Recovery Officer. One set of objections is against the proclamation notice, pertaining to the mortgaged property, issued on 07.09.2021. The second set of objections is after the sale which took place on 05.11.2021. A suggestion has come forth from the counsel that during the pendency of the instant writ petition itself, such objections ought to be decided as the same would have a material bearing on the issue at hand. Learned senior counsel for the petitioner-Bank does not object to such course of action being followed. List for further consideration on 02.05.2023. In the meanwhile, it is directed that the Recovery Officer, in the first instance, would consider and deal with the objections that have been filed against the proclamation notice dated 07.09.2021 and thereafter would deal with the objections that have been filed after the sale was effected on 05.11.2021. Such exercise be completed expeditiously and in any case within a period of 90 days from today. It is however, clarified that such directions may not be construed to be an expression of opinion of this Court, as regards maintainability of the objections." 12. Pursu....
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....hich is considered false and misleading and the process of service is bad in the eye of law. In view of above, the following orders/directions are passed: 1. POS order dated 07.09.2021/Auction held on 05.11.2021 is set aside. Accordingly, the objection filed the CD No. 1 and objections/IAs filed by other independent third party objectors and the Performa Defendant Bank etc, became infructuous and accordingly, it stands disposed. 2. Request of Third Party Objector for instituting enquiry against the bidder and the bank official is not allowed, as the Recovery Officer is not empowered to institute such enquiry against the bank officials or forfeit the auction money deposited by the highest bidder under the Rule-11 of the Second Schedule of the Income Tax Act, 1961. Under provision of Rule -11, recovery Officer has been empowered only up to the extent the institution/conduct enquiry for the issues arising with the ownership of the properties. 3. CH Bank is directed to file the proper application for impleading the LRs of deceased CDs. 4. The POR and Valuation report on record is more than two year old and hence, CH Bank is directed to file ....
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....f any sum would lie with learned NCLT and not this Court. 17. Learned counsel for petitioner - Bank as well as other two banks do not deny that order dated 24.04.2023 whereby auction in favour of respondent No. 9 has been set aside has not been subjected to challenge and said order stands as on today having attained finality. 18. Learned counsel for petitioner in CWP-22367-2021 and IRP representing petitioner in CWP-11117-2022 are unable to deny that in view of order dated 14.05.2024 passed by learned NCLT, both the writ petitions are indeed rendered infructuous. 19. In our considered opinion, there is no merit in the objection raised by learned counsel for IRP appointed by learned NCLT qua the prayer for release of bid amount by respondent No. 9. Factual aspect of auction having been conducted on 05.11.2021, pursuant to orders of this court in CWP-22367-2021, subsequent decision on the objections by Recovery Officer and setting aside of auction proceedings as well as sale in favour of respondent No. 9 vide order dated 24.04.2023 passed by Recovery Officer, is also a matter of record. With passing of order dated 24.04.2023, which as per information provided to us, stands u....
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....c) Any action to foreclose, recover or enforce any security interest created by the Respondent in respect of its property including any action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; (d) The recovery of any property by an owner or lessor, where such property is occupied by or in the possession of the Respondent." 22. It is to be noted that any money, amount or property which may be for the benefit of corporate debtor can doubtlessly not be directed to be released or dealt with by this Court at this stage in view of proceedings before NCLT. However, in the present given factual matrix, it cannot be held by any stretch of imagination that corporate debtor has any legal right or beneficial interest qua the bid amount which has been deposited by the auction purchaser (respondent No. 9) in respect to auction/sale which has admittedly been set aside with refund thereof being ordered and the said order not being challenged till date. Merely because the matter kept hanging fire on account of pendency of present writ petitions cannot in any manner entitle the IRP to take the objection as has been raised befo....