Failure To Serve Order XXI Rule 22 Notice Won't Impact DRT Auction Sale : Supreme Court

The Supreme Court docket has held that the requirement to serve a authorized discover on the judgment debtor’s authorized representatives underneath Order XXI Rule 22 CPC earlier than execution of a decree doesn’t apply to an public sale sale carried out by the DRT underneath the Restoration of Money owed and Chapter Act, 1993.

A bench of Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe heard the case the place the execution proceedings initiated by the Appellants in a civil court docket in opposition to the Respondent had been subsequently transferred to the Debt Restoration Tribunal (DRT). The DRT had auctioned the Respondent’s topic property to grasp the debt owed by them to the Appellants. The public sale sale was, nonetheless, resisted by the Respondents, arguing non-compliance with Order XXI Rule 22 of CPC. They claimed to haven’t been served with a discover earlier than continuing for public sale of the property.

Permitting the attraction, the judgment authored by Justice Aradhe rejected the Respondent’s argument in regards to the non-compliance with Order XXI Rule 22 of CPC, noting that the second the proceedings had been transferred to the DRT, the CPC loses its applicability.

“The switch of execution continuing from Morena court docket to the DRT, effected underneath Part 31 of the 1993 Act, didn’t merely change the discussion board of execution, it clothed the Restoration Officer, with the facility to get well the quantity in accordance with the process prescribed underneath Part 29 of the 1993 Act learn with Second Schedule to the 1961 Act, in supersession of process underneath the Code earlier than the Morena Court docket…Subsequently, Order XXI Rule 22 of the Code has no impression on the validity of the public sale sale.”, the Court docket noticed.