Central Bank of India vs Kirpal Tent House and Others

Alok Singh, J.—Petitioner has invoked jurisdiction of this Court under Article 227 of the Constitution of India, challenging order dated 8.12.2009 passed by the District Judge, Sonepat, whereby the District Judge dismissed the application of the bank - petitioner moved u/s 171 of the Contract Act and allowed the application moved by the respondents and directed the bank to return the sale deed of the property belonging to Smt. Krishna Devi.

Learned Counsel for the petitioner states that recovery proceedings against Kirpal Medicos are pending before the DRT, Chandigarh. In a loan to Kirpal Medicos, Smt. Krishna Devi is one of the guarantors. He further states that although, loan against Kirpal Tent House has been settled and guarantee of Smt. Krishna Devi as far as loan to Kirpal Tent House is concerned, stands discharged, however, since Smt. Krishna Devi is also guarantor against Kirpal Medicos, hence, the bank is entitled to retain the title deed of the property of Smt. Krishna Devi. Learned Counsel for the petitioner further states that since the matter is pending against Kirpal Medicos before the DRT, Chandigarh, an appropriate application shall be moved before it for attachment of the properties of Kirpal Medicos as well as the guarantors i.e. Smt. Krishna Devi and others.

Learned Counsel for the petitioner seeks permission to withdraw this petition with liberty to the petitioner - bank to move an application before the DRT, Chandigarh for attachment of the properties of the defendants therein, including the guarantors.

Learned Counsel for the respondents fairly stated that in the event of withdrawal of this petition, he will not proceed with the contempt against the bank for four weeks from today. He also stated that in the event of moving an application before the DRT, Chandigarh, respondents shall not proceed with the contempt awaiting decision by the DRT, Chandigarh.

In view of the above, this petition is dismissed as withdrawn with liberty to the bank - petitioner to move an appropriate application before the DRT, Chandigarh, seeking appropriate relief under the law.

It is expected from the respondents i.e. Kirpal Tent House and Smt. Krishna Devi that they will not proceed with the contempt for four weeks from today and in the event of moving an application by the petitioner before the DRT, Chandigarh, the respondents shall not proceed with the contempt awaiting decision by the DRT, Chandigarh, as undertaken by the learned Counsel for the respondents before this Court.