The decree which was a subject matter of recovery proceedings before the DRAT was stayed, in which case, the Recovery Officer ought not to have proceeded with the recovery proceedings once this was brought to his notice – Shri Sarang Avinash Kamtekar Vs. M/s. Alpha Organic – Bombay High Court
Hon’ble Bombay High Court held that the recovery certificate under Section 31A of the RDDB & FI Act is a consequence of the decree. In simple words, the decree is the main order. Once the decree is stayed by the High Court, it cannot be gain said that the recovery proceedings can continue on the basis of the recovery certificate. If the Recovery Officer proceeds to recover the dues in execution of the recovery certificate, it will have the effect of virtually rendering the stay granted to the decree by a Superior Court otiose. Such a course is impermissible. The decree which was a subject matter of recovery proceedings before the DRAT was stayed, in which case, the Recovery Officer ought not to have proceeded with the recovery proceedings once this was brought to his notice. Merely because the application made by Alpha Organic for staying the recovery proceedings is rejected, or that the recovery certificate is not challenged, will not authorise the Recovery Officer to overreach the orders passed by the High Court. We therefore have no hesitation in endorsing the view taken by the DRAT for these additional reasons as well.