UCO BANK vs M/s Nirbhai Textiles Pvt. Ltd on 13 October 2026

1. The appellant filed O.A. bearing no.2038/2017 (old no.2066/2015) titled as **UCO Bank vs. Nirbhai Textiles Private Limited & others** which is stated to be pending before DRT-III, Chandigarh. DRT-III, Chandigarh vide order dated 17.05.2018 allowed the O.A. The relevant portion of the order dated 17.05.2018 is reproduced as under:-

8. In the result, the application is allowed declaring that the defendant no.1 to 5 are liable to pay to the applicant a total sum of Rs.21,58,66,552.20p (Rupees Twenty One Crores Fifty Eight Lakh Sixty Six Thousand Five Hundred Fifty Two and Twenty Pesa only) jointly and severally, with costs, current and future simple interest @12.00% p.a. from 01.10.2015, till the date of realization of the amount. Accordingly, the applicant bank shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendant no.1 to 5 in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the bank still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendant no.1 to 5. The applicant is at liberty to enforce the claim through due process of law.

9. Any other application pending stands disposed of

10. Issue Recovery Certificate accordingly.

2. Sh. Pramod Kumar who was arrayed as the defendant no.2 in the O.A bearing no.2038/2017 filed objection in the recovery proceeding in R.C. No.1011/2018

which was dismissed vide order dated 08.06.2023 passed by the Recovery Officer-I, DRT-III, Chandigarh. Subsequent to the order dated 08.06.2023, the Recovery Officer issued fresh sale notice dated 14.06.2023. The defendant no.2 in O.A. filed an I.A. bearing no.95/2023 on 06.07.2023 for recalling the order dated 08.06.2023 which was ordered to be dismissed vide order dated 22.09.2023 passed by the Recovery Officer-II, DRT-III, Chandigarh. Subsequent the order dated 22.09.2023, the respondent Nirbhai Textiles Private Limited filed a Misc. Application under Section 22 and 27 of the RDB Act which was numbered as Appeal 2/2023 titled as **M/s Nirbhai Textiles Private Limited & others V. UCO Bank** and the said Misc. Application numbered as Appeal 2/2023 was stated to be pending before DRT-III, Chandigarh. The applicant in the Misc. Application numbered as Appeal 2/2023 has made the following prayer:- **It is therefore, most respectfully prayed that this present application may kindly be allowed and this Hon'ble Court may be pleased to direct the Ld. Recovery Officer-I, DRT-III, Chandigarh to deal and decide the application bearing IA No.95 of 2023 for recalling the order dated 08.06.2023 vie which objections filed by the M.A. were dismissed without providing an opportunity of hearing, which application has been dismissed vide order dated 22.09.2023 which a non-speaking order, thereby violating the principles of Natural Justice.**

**It is still further prayed that this Hon'ble Tribunal may be pleased to pass the orders thereby staying the recovery proceedings and the recovery process adopted by the Ld. Recovery officer which is now pending for 28.09.2023 as the Ld Recovery Officer is proceeding without deciding the applications filed by the CDs on merit or granting an opportunity of hearing. It I still further prayed that during the pendency of the present application before this Hon'ble Tribunal, the proceeding before the Ld. Recovery Officer, may kindly be stayed and the record of the R.C. proceedings shall be called before this Hon'ble Tribunal, in the interest of justice.**

3. It is reflecting from the impugned order dated 06.10.2023 that it was contended on behalf of the appellant i.e. UCO Bank that the Misc. Application which was numbered as Appeal 2/2023 was in fact an appeal, not a Misc. Application, and as such the respondent was required to make pre-deposit as per the mandate of Section 30-A of the RDB Act. DRT vide the impugned order dated 06.10.2023 has directed that Misc. Application which was numbered Appeal 2/2023 be treated as Misc. Application and rejected the contention and argument raised on behalf of the appellant UCO Bank for treating the said Misc. Application as an appeal. Appellant being aggrieved by the order dated 06.10.2023 has filed the present appeal.

4. Sh. Rajesh Rattan, Advocate for the appellant after referring the above mentioned orders argued that the appellant in fact has challenged the order dated 22.09.2023 on merit and as such the Misc. Application as allegedly filed by the respondent should have been treated as an appeal under Section 30 of the RDB Act and due to this reason the respondent was to make pre-deposit. He further argued that the Misc. Application numbered as Appeal 2/2023 cannot be filed under Section 22 of the RDB Act after disposal of the O.A. bearing no.2038/2017. It is argued that the Misc. Application which was numbered as Appeal No.2/2023 be treated as an appeal and the respondent be directed to make the pre-deposit.

5. Ms. Deepshikha, Advocate for the respondent countered the above arguments and stated that the Misc. Application numbered as Appeal 2/2023 was filed seeking an opportunity of being heard to be given to the respondent on the I.A. bearing no.95/2023 and accordingly defended the impugned order dated 06.10.2023.

6. The perusal of this Misc. Application numbered as Appeal 2/2023, particularly the prayer clause, reflects that the respondent only sought opportunity of being heard to be given to the respondent on I.A. bearing no.95/2023 and in the said application the respondent has not challenged the order dated 08.06.2023. What is appearing is that it was Misc. Application, not an appeal, to impugn the order dated 08.06.2023. There is no illegality or infirmity which warrants interference by this Tribunal. The appeal is, accordingly, dismissed along with all pending applications, if any.

7. It is, however, made clear by this order that the Misc. Application numbered as Appeal 2/2023 is treated as an application for giving an opportunity of hearing to the respondent on I.A. bearing no.95/2023 which has already been disposed of vide order dated 08.06.2023. Ms. Deepshikha, Advocate for the respondent informed that the said appeal has now been numbered as M.A. 136/2023. All the rights and contentions of the parties are open to be taken and contended at the time of hearing of I.A. bearing no. 95/2023, if allowed by the DRT. It is further observed that any subsequent order on I.A. bearing no.95/2023 shall be passed uninfluenced by any observation made in the impugned order.

Sd - \_\_\_\_\_ **(Dr. Justice Sudhir Kumar Jain)** Chairperson

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