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Judgment
The instant appeal is filed under Section 20 of the Recovery of Debts and Bankruptcy Act to impugn the order dated 22.01.2026 passed by DRT-III, Chandigarh in M.A.No.124/2025 filed in O.A. No.1321/2023. The appellant had filed O.A. bearing No.1321/2023 before DRT-III, Chandigarh and the respondents were ordered to be proceeded ex parte vide order dated 09.10.2024 by the Presiding Officer, DRT-III, Chandigarh. DRT-III, Chandigarh vide order dated 05.06.2025 allowed the O.A. and held that respondents are jointly and severally liable to pay Rs.11,69,34,296.90 with costs, current and future simple interest @8% p.a. from the date of filing of the O.A. till the date of realisation of the amount. The relevant portion of the order dated 05.06.2025 is reproduced as under:-
11.In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.11,69,34,296.90p (Rupees Eleven Crore Sixty Nine Lacs Thirty Four Thousand Two Hundred Ninety Six and Paise Ninety Only) jointly and severally, with costs, current and future simple interest @8.00% p.a. in all the loan accounts from the date of filing of OA till the date of realization of the account. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.
The respondents filed a miscellaneous application bearing no.124/2025 under Section 22(2)(g) read with Section 19(25) of the Recovery of Debts and Bankruptcy Act, 1999 and Order 9 Rule 13 and Section 151 CPC for setting aside of the ex parte judgment and Recovery Certificate dated 25.06.2025 issued in O.A. No.1321/2023. The said miscellaneous application was allowed vide impugned order dated 22.01.2026 which is under challenge in the present appeal.
The counsel for the appellant stated that the respondents were duly served with the notice of the Original Application (O.A.) and had failed to appear before DRT-III, Chandigarh to contest the O.A. The counsel further submitted that the respondents deliberately and intentionally avoided participation in the proceedings of the O.A. He prays that the impugned order dated 22.01.2026 may be set aside.
DRT-III, Chandigarh in the impugned order observed that it was not proved that the summons were served upon all the defendants (respondents in the present appeal) either by way of personal service or by way of Registered Post. DRT-III, Chandigarh and also referred to the affidavit of service and observed that the summons were served upon defendant no.2 only.
After considering all facts this Tribunal does not find any illegality or infirmity in the impugned order dated 22.01.2026 which may warrant interference from this Tribunal. The appeal is dismissed. However, considering the facts and circumstances of the case DRT-III, Chandigarh is requested to make every possible effort to dispose of the O.A. at an early date, preferably within four months from the date of receipt of this order.