ASHISH PAL SINGH vs UCO BANK on 25 February 2025

FINAL ORDER

This Appeal was filed against the order dated 06.12.2018 passed by Recovery Officer, Debts Recovery Tribunal-III, Chandigarh in the Recovery Certificate No. 1007/2018 arising out of Final Order dated 19.05.2018 passed in OA No. 3086/2017.

(2) It is stated in the Appeal that Certificate Holder Bank has granted credit facilities to the Company being run by Sh. Balbir Singh Sekhon, Sh. Arun Mehra and Sh. Ashutosh Kumar against the security of mortgaged properties. This credit facility was further secured by personal guarantee of the Directors of the Company and Guarantee Agreement was also executed. On 30.05.2011 the credit facilities were restructured by Certificate Holder Bank on the basis of discharge of applicant as director and joining of some other person as director. No reply was filed by the applicant in Original Application nor any arguments were heard by Hon’ble Tribunal while deciding the Original Application. After passing of Final Order in the

OA and issuance of Recovery Certificate, demand notice was issued by Recovery Officer and appellant has filed the objections. Copy of the objections were supplied to counsel for Certificate Holder Bank on 06.12.2018 and the counsel has sought time to file the reply. On the next day it transpired that Recovery Officer has passed the order for dismissal of the objections wherein he has observed that Certificate Holder Bank has filed the reply therefore, the order passed by Recovery Officer dated 06.12.2018 was challenged in this Appeal. On the grounds that no reply was ever filed by the Certificate Holder Bank against the objections filed by appellant; that credit facilities were restructured by the Certificate Holder Bank on the basis of discharge of appellant as director and the loan was restructured without signature of the appellant. Therefore, the Appeal may kindly be allowed.

(3) Reply filed by respondent No.2.

(4) It was stated in the reply that Appeal filed by appellant is hopelessly time barred as the same was filed on 22.02.2019 whereas the appellant has received the copy of impugned order on 07.12.2018, therefore on this ground alone, the Appeal deserves to be dismissed; that the issue raised by the appellant in the Appeal has already been considered and decided by this Tribunal vide Judgment & RC dated 19.05.2018, passed in OA No. 3086/2017 and this fact has been duly observed by the Recovery Officer in the impugned order dated 06.12.2018; that as such there is no error in the impugned order passed by Recovery Officer; that Final Order dated 19.05.2018 has become final, as no appeal or review against said judgment has been filed by appellant till date; that as per Final Order dated 19.05.2018 the defence of appellant was struck of vide order dated 08.09.2015 and the appellant was held to have stood as guarantor and as such was held to be equally, jointly and severally liable to pay the loan along with borrower; that on 06.12.2018 the counsel representing the answering bank had argued before Recovery Officer that the objections raised by the appellant have already been considered by the Tribunal vide judgment dated 19.05.2018 in OA No. 3086/2017; that as such based upon said arguments advanced by the counsel representing bank, the objection filed by the appellant was dismissed vide impugned order dated 06.12.2018. Therefore, the said Appeal is liable to be dismissed.

(5) No replication was filed by appellant to reply filed by respondent No.2.

(6) I have heard arguments advanced by Sh. Harinder Pal Singh and Sh. Sanjeev Gupta, Advocates and gone through the record carefully. Record of RC No. 1007/2018 is also available before Tribunal.

It was argued by Sh. Harinder Pal Singh, Advocate that copy of impugned order was made available on 07.12.2018 and this Appeal was filed within the time period of 30 days on 04.01.2019 as mentioned in the stamp affixed by Diary Section, therefore Appeal is not time barred.

argued that this Appeal was filed on 22.02.2019 after receiving of copy of order on 07.12.2018 therefore, this Appeal is time barred.

Section 30 of Recovery of Debts and Bankruptcy Act, 1993 provides, time limit of 30 days for filing an Appeal against the order of Recovery Officer from the date on which a copy of the order is issued to person aggrieved by the order.

Stamp of Diary Section shows that this Appeal was filed on 04.01.2019. It was not argued by Sh. Sanjeev Gupta, Advocate that stamp affixed on the Appeal was obtained illegally or particulars filled in the stamp are incorrect or forged.

In light of above in the considered view of this Tribunal, this Appeal was filed within the stipulated period and not barred by Limitation Act.

Sh. Harinder Pal Singh, Advocate further argued that no reply was filed by the CH Bank to objections filed by him before Recovery Officer but Recovery Officer has mentioned in the impugned order that ‘CH Bank submitted in his reply to objections’, which shows that a reply was filed by CH Bank to objections but infact, no reply was ever filed by CH Bank. Therefore, the impugned order may be set aside.

argued that he has not filed any written reply to the objections filed by Sh. H.P. Singh, Advocate for CD but he had argued orally and submitted his version against objections before the Recovery Officer.

Perusal of record shows that Recovery Officer has not mentioned in the impugned order that any written reply to objections were filed by CH Bank. It further shows that after hearing on objections submitted by CH Bank in the presence of Sh. Sanjeev Gupta, Advocate for CH Bank, Sh. H.P. Singh, Advocate for CD No.6 and Sh. Rajeev Gupta, Advocate for CD No.3 the impugned order was passed. Any Court/Tribunal/Judicial/Quasi-Judicial Authority can pass an order on the application or objection after hearing oral reply of the opposite party, there is no need to file a written reply every time on every application or objection.

In light of above, it cannot be said that without hearing the parties the impugned order was passed and also it cannot be said that written reply by CH Bank was not filed but incorrectly the same is mentioned in the impugned order.

Therefore, the above argument advanced by Sh. Harinder Pal Singh, Advocate has no force.

Sh. Harinder Pal Singh, Advocate further argued that his objections dated 27.09.2018 against demand notice issued by Recovery Officer were not disposed of as per law rather the same were disposed of on the ground that the same have already been dealt with by the Hon’ble Presiding Officer at the time of passing the judgment in the OA.

argued that all the objections raised by Sh. Harinder Pal Singh, Advocate on behalf of CD No.6 before the Recovery Officer were already dealt in the judgment of OA therefore, Recovery Officer has correctly dismissed the same as not maintainable before him. It was further argued that judgment/Final order dated 19.05.2018 was already becomes final as no Appeal was filed challenging the same by CD No.6 or any other party and now Sh. Harinder Pal Singh, Advocate very wisely wants to reopen the Original Application.

This Tribunal is of the considered opinion that in the OA, which was filed in the year 2012, a final order was passed on 19.05.2018 after service of summons upon all the defendants to file their reply and if, defendant No.6 Sh. Ashish Pal Singh, who is appellant here, has chosen not to file any reply before the Tribunal during the pendency of OA and also not challenged the final order dated 19.05.2018 passed in the OA, then now it is not open to him to agitate the issues, which were already dealt with and disposed of by the Tribunal.

(20) No other point/argument was pressed.

(21) After considering the facts and circumstances above, this Tribunal is of the considered opinion that this Appeal was filed without any merits and liable to be dismissed.

Appeal is dismissed. Record of RC No.1007/2018 summoned from the Recovery Officer be return forthwith. Record be consigned to record room after due compliance.

Date: 25.02.2025

Pronounced by me in the open Tribunal.

(MRIDULESHKUMARSINGH) Presiding Officer, DRT-III, Chandigarh