C.N. PARAMSIVAN & ANR. versus SUNRISE PLAZA TR. PARTNER & ORS.

C.N. PARAMSIVAN & ANR. versus SUNRISE PLAZA TR. PARTNER & ORS.

Section 29 of the RDDB Act incorporates the Second Schedule Rules of the Income Tax Act for recovery purposes, but only to the extent possible and with necessary modifications. The phrase 'as far as possible' does not confer wide discretion on the Recovery Officer, but means that the rules apply except where their application is not at all practicable in the recovery context. Rule 57 regarding payment of purchase money in auction sale proceedings is a mandatory requirement and non-compliance with it renders the sale void.

Parties
Appellants: C.N. Paramsivan & Anr.; Respondents: Sunrise Plaza Tr. Partner & Ors.
Jurisdiction
India
Judgment Date
09 January 2013
Procedural Posture
Civil Appeal / Appeal From High Court Decision in Writ Jurisdiction
Outcome
Appeal dismissed.
Legal Topics
Auction Sale Under Recovery of Debts, Interpretation of 'as Far as Possible' Under S.29 RDDB Act, Applicability of Second Schedule Income Tax Act Rules to RDDB Act Proceedings
Debt Recovery Banking Law Auction Sale Under Recovery of Debts Interpretation of 'as Far as Possible' Under S.29 RDDB Act Applicability of Second Schedule Income Tax Act Rules to RDDB Act Proceedings

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Parties

C.N. Paramsivan & Anr.

Appellants

Sunrise Plaza Tr. Partner & Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal From High Court Decision in Writ Jurisdiction

Legal Issues

  1. 1 Whether Section 29 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (RDDB Act) applies the Income Tax Rules in the Second Schedule of the Income Tax Act to recovery proceedings under the RDDB Act with full force
  2. 2 Whether the phrase 'as far as possible' in Section 29 vests the Recovery Officer with discretion to apply these rules depending on each case's facts

Ratio Decidendi

Section 29 of the RDDB Act incorporates the Second Schedule Rules of the Income Tax Act for recovery purposes, but only to the extent possible and with necessary modifications. The phrase 'as far as possible' does not confer wide discretion on the Recovery Officer, but means that the rules apply except where their application is not at all practicable in the recovery context. Rule 57 regarding payment of purchase money in auction sale proceedings is a mandatory requirement and non-compliance with it renders the sale void.

Court Disposition

Appeal dismissed.

Orders

  • Appeal is dismissed without any order as to costs.