Drat Kolkata Court February 2007 Judgments

Neelam Roller Flour Mills (P) Ltd. Vs. Bank of Baroda and ors.

Court: DRAT Kolkata

Reported in: I(2008)BC40

1. The matter relates to an application under Section 21 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 ('the RDDBFI Act', for short).2. The appellant No. 1 is a company of flour mills and appellant No. 2 is its Managing Director who borrowed money from the respondent-Bank by deposit of title deeds in respect of immovable properties situated at Malda. The business failed due to reasons beyond their control and the company closed down. The appellants wanted the respondent-Bank to sell the secured properties for liquidating the claim.3. Proceedings for recovery of debt in Original Application No. 29 of 2004 before the D.R.T. ensued. That still pendsan admitted fact.4. However, sale of the secured properties to liquidate the loan was underway and in August, 2005, the Tribunal proceeded to confirm sale of the assets in favour of Sarada Cereals Pvt. Ltd. (respondent No. 2) for a sum of Rs.'71.51 lacs in spite of an offer of Rs. 80 lacs being available before the...