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V.G.Rao Advocate (Advocate)     24 January 2012

Reatable distrubution to govt of india institutions in drt

Hi all, "A" is a Govt of India enterprise has obtained judgment and decree in a money suit against "B" in a District court, subsequelntly E.P is filed for attachement of immoveable property of "B".

"C" is a Private Bank (ING), has filed a case before the Debt Recovery Tibuanal(DRT) against "B" referred above for Recovery of Money under Mortagage of same Immoveable Property of "B" as "B" deposited the title deeds of the said property with "C" bank, and the said Case was ended in faovr of "C" Bank Ex parte and as on date whereabouts of "B" i.e Jdr in both the aforesaid cases is not known.

While matter stood thus though "A" filed E.P for attachment of property of "B" stated above, "A" could not attached the same at earliest point of time and as on date the said E.P is Pending.

Meanwhile "A" came to know through paper publication issued by "C" bank for conducting the open auction of said property of "B" on a particular date and prior to the auction date mentioned in the paper publication, "A" govt enterprise filed Claim Petition before the Recovery Officer, Debt Recovery Tribunal, for reatable distribution of the auction amount to it, though the First charge over the property of "B" is lying with the "C" bank. Now My question is

Whether the claim petitioner  "A"i.e the Govt of India Enterprise is entitile for Rateable Distribution as contemplated under Section 73 of C.P.C in the auction amount to be received by the "C" bannk, since no surplus amount is available after adjusting claim of "C" bank.

Whether C.P.C is applicable to the aforesaid Proceedings for rateable distribution?


 1 Replies

sridhar pasumarthy (ADVOCATE)     25 January 2012

Dear Rao,

A is not entitled to rateable distribution.  " C" bank is secured creditor by virtue of mortgage, unless there is surplus available after satisfaction of its debt, A has no option to realise from the sale proceeds of bank auction.

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