The High Court of Calcutta, while dismissing a petition filed by one co-borrower against an order passed under Section 14 of the 2002 Act, held that the bank is justified in contending that in view of one of the co-borrowers being alive and a party to the present writ petition, it cannot be said that the auction was a nullity.
Brief Facts:
The ground of challenge to the order passed under Section 14 of the 2002 Act in the said writ petition is that the same was a nullity. It is contended that one of the borrowers had met his demise as long back as in the year 2020. However, despite the point having been brought to the notice of the Debts Recovery Tribunal, the Tribunal dismissed the application of the writ petitioner.
Contentions of the Petitioner:
The learned counsel appearing on behalf of the Petitioner submitted that the death of one of the co-borrowers vitiates the entire procedure and the subsequent order under Section 14 of the 2002 Act, being a nullity. He argued that the surviving co-borrower, who is the petitioner before this Court, cannot suffer for such illegal action on the part of the respondent bank.
Contentions of the Respondent:
The learned counsel appearing on behalf of the Respondent submitted that the fact that one of the co-borrowers died, even if not disputed, does not vitiate the action taken by the respondent bank including the auction sale, simply because the writ petitioner, that is, the other co-borrower, is still in the world of the living. Thus, it cannot be said that the auction was a nullity since the surviving co-borrower is also a party to the proceeding.
Observations of the court:
The court noted that the issue raised before this court was finally settled more than a year back by the concerned Debts Recovery Tribunal by disposal of the application of the co-borrower on January 19, 2023, and the same has attained finality as the remedy of the co-borrower lay before the appellate tribunal, which was not availed of.
The Court observed that the bank is justified in contending that in view of one of the co-borrowers being alive and a party to the present writ petition, it cannot be said that the auction was a nullity.
The decision of the Court:
The Calcutta High Court, dismissing the petition, held that there is no substance in the writ petition.
Case Title: Uttara Sikdar v. Punjab National Bank & Ors.
Coram: Hon’ble Mr. Justice Sabyasachi Bhattacharyya
Case No.: WPA No. 24765 of 2023
Advocate for the Petitioner: Mr. Narayan Chandra Debnath
Advocate for the Respondent: Mr. Amal Kumar Sen
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