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2009 DIGILAW 2621 (ALL)

PROGRESSIVE ENTERPRISES v. NAINITAL BANK LTD

2009-07-21

J.M.MALIK

body2009
JUDGMENT : J.M. MALIK, J. 1. This appeal is preferred against the interim order rendered by the learned D.R.T. on 17th August, 2007. The only argument urged before me was that thirty days' time was not granted to the borrowers as per notification published in the newspaper. The newspaper's clip placed on the record clearly goes to show that the same was issued on 8th August, 2007 and was published in the newspaper on 9th August, 2007, wherein it was printed that all the tenders must be sent on or before 22nd August, 2007. The tenders were to be opened on 24th August, 2007. Counsel for the appellants vehemently argued that clear-cut thirty days' time must be granted in favour of the borrowers as per Rules 6(2) and 8(6) of the Security Interest (Enforcement) Rules, 2002. 2. I see no merit in this argument. As a matter of fact, this is not the first notice. This is second notice. I am of the considered view that for the second notice the time of thirty days is not mandatory. Thirty days' time has to be reckoned from the first notice. In this case the first notice was issued on 23rd May, 2007. The clip of the said newspaper i.e. Amar Ujala has also been placed on the record. In this case tenders were to be opened on 25th June, 2007. A clear-cut time of thirty days was granted to the tenderers as well as the borrowers. The learned Counsel for the appellants did not pick up a conflict with this fact. The appellants had already received the notice and thirty days' time was also granted in their favour. 3. In response to the said notice dated 23rd May, 2007 no bidder came up. Consequently, the second notice was issued and there was no need to grant further thirty days to the appellants and to procrastinate the proceedings. 4. Moreover, Rule 9(1) of the Security Interest (Enforcement) Rules, 2002 lays down: 9. Time of sale, issues of sale certificate and delivery of possession, etc.- (I) No sale of immovable property under these rules shall take place before the expiry of thirty days from the date on which the public notice of sale is published in newspapers as referred to in the proviso to Sub-rule (6) or notice of sale has been served to the borrower. 5. 5. The last words "or notice of sale has been served to the borrower" as underlined above, clearly depict that the appellants are entitled to receive the notice for a period which should not be less than thirty days. 6. The object of granting thirty days' time to the appellant is to give him the last opportunity to pay off the debt that is why the said provision was created. Object and spirit of the Act stands fulfilled. The appeal is without merits and the same is dismissed. The main application is pending before the learned DRT. Parties are directed to appear before the DRT, Allahabad on 7th August, 2009. 7. Copies of this judgment be furnished to the parties as per law. Another copy of the same be also despatched to the learned DRT forthwith.