Case Note & Summary
The litigation arose from a plot sold in an open auction in July 1971 for a sum of Rs.46,000. The appellant, who was the successful bidder, paid only Rs.11,500 and defaulted in paying the balance of Rs.34,500 for over 21 years. The respondent authorities demanded a payment of Rs.3,78,000, which the appellant also defaulted. When the allotment was sought to be cancelled, the appellant filed a writ petition before the High Court challenging that action. During the pendency of the writ petition, the High Court passed an order in a civil miscellaneous case. The appellant asserted that he had deposited the sum of Rs.34,500 on September 21, 1992. The High Court found that if that amount was deposited as claimed, the remaining balance of Rs.3,43,500 was to be deposited, but the appellant failed to do so. Consequently, the writ petition was dismissed and the order of the learned single Judge was confirmed in MPA No.355/93 dated August 19, 1993. The appellant then approached the Supreme Court by special leave. The Supreme Court heard both sides. The respondents did not file a counter affidavit despite time being taken. The appellant's counsel stated that his client had already deposited two installments of the amount with interest at 12% and one installment was due. The Court prima facie accepted this statement as correct. The Court granted the appellant liberty to pay the balance amount within a period of four months from the date of the order. It further directed that if the appellant had not already deposited the amounts or if he committed any default in payment as directed, the order would stand vacated and the order of the High Court would stand restored. The appeal was disposed of with no order as to costs.
Headnote
A) Civil Procedure - Payment Default in Auction Sale - Conditional Relief to Pay Balance - Not mentioned - The Supreme Court considered an appeal against High Court order confirming dismissal of writ petition challenging cancellation of plot allotment. The appellant had paid only Rs.11,500 against auction price of Rs.46,000, later claimed deposit of Rs.34,500, and High Court directed deposit of balance Rs.3,43,500 which was not done. The Court granted liberty to pay balance within four months, with default vacating relief and restoring High Court order. Held that conditional relief balancing equities is appropriate (Paras not mentioned).
Issue of Consideration
Whether the appellant should be granted further time to pay the balance amount due under an auction sale, considering his long default and prior failure to comply with High Court directions.
Final Decision
Appeal disposed of. Appellant given liberty to pay balance amount within 4 months from date of order; if he had not already deposited or commits default, the order would stand vacated and High Court order would stand restored. No costs.
Law Points
- Open auction sale compliance
- payment default consequences
- conditional relief to avoid cancellation
- restoration of High Court order on default
