Bombay High Court Considered Challenge to Recovery Certificate and Auction Sale Under Maharashtra Co-operative Societies Act, 1961. Petition Challenged Dismissal of Revision Application on Grounds of Non-Compliance with Rule 107 of Maharashtra Co-operative Societies Rules, 1961 and Lack of Pre-Deposit Under Section 154(2A) of the Act.

Writ petition challenging the order of the Divisional Joint Registrar dismissing a revision application against a recovery certificate issued under Section 101 of the Maharashtra Co-operative Societies Act, 1961 and the confirmation of auction sale of agricultural land.

Petitioner sought quashing of the impugned judgment dated 12 April 2019, setting aside of the recovery certificate dated 9 December 2009 and the auction sale of agricultural land confirmed on 31 March 2012, and restoration of possession over the subject land.

Petitioner alleged that the recovery certificate was issued without a reasoned order contrary to Rules 86-A to 86-F; the demand notice did not comply with Rule 107(3) and 107(11)(b); the sale of non-mortgaged land occurred without prior attachment under Rule 107(10) and 107(11)(d); the entire land was sold for a disproportionately small amount; and petitioner was denied the right to pay under Rule 107(13).

Earlier revision application dismissed on 16 May 2012; Writ Petition No. 7113 of 2012 partly allowed on 1 August 2018 remanding the matter to the revisional authority; after remand, revision again dismissed on 12 April 2019.

Validity of recovery certificate under Section 101 and compliance with Rules 86-A to 86-F of the Maharashtra Co-operative Societies Rules, 1961 Compliance with Rule 107 regarding demand notice, prior attachment, sale of mortgaged property first, and proportionality of selling entire land Maintainability of revision application under Section 154(2A) of the Act and requirement of pre-deposit Limitation for challenging the recovery certificate through amendment in 2018 Denial of petitioner's right to pay outstanding amount under Rule 107(13)

Petitioner argued that the recovery certificate was issued mechanically without a reasoned order in violation of Rules 86-A to 86-F Petitioner contended that the demand notice under Rule 107 did not comply with Rule 107(3) and 107(11)(b) as it lacked exact outstanding amount, interest details, and property particulars Petitioner submitted that the sale of non-mortgaged subject land without prior attachment was in breach of Rule 107(4), 107(10), and 107(11)(d) Petitioner alleged that auction sale was conducted before fixing upset price and sold the entire land for a throwaway price, contrary to the rule that only necessary portion should be sold Petitioner claimed denial of right under Rule 107(13) to pay the outstanding amount Respondents argued that revision was not tenable because petitioner did not raise objection under Rule 107(12) to (14) and did not make pre-deposit under Section 154(2A) Respondents contended that the challenge to the recovery certificate was barred by limitation Respondents asserted that there was no violation of Rule 107 and no substantial injury; the land was sold for more than thrice the upset price fixed by respondent No.7

The challenge in this petition is to the judgment and order dated 12th April 2019 in Revision Application No.NIL/2011 passed by Divisional Joint Registrar, Co-operative Societies, Nashik, whereby the revision application preferred by the petitioner assailing the legality, propriety and correctness of the recovery certificate issued under section 101 of the Maharashtra Co-operative Societies Act, 1961 and the steps taken by respondent No.3-Society and respondent No.4, the Recovery Officer, to recover the amount thereunder, culminating in the order of confirmation of sale dated 31st March 2012 of agricultural land bearing Gat No. 49 in favour of respondent Nos. 8 and 9 came to be dismissed. The District Deputy Registrar, Jalgaon-respondent No.7 issued the recovery certificate on 9th December 2009 in a mechanical manner without complying with the mandatory requirement of passing a reasoned order, in clear violation of Rule 86-A to 86-F of the Maharashtra Co-operative Societies Rules, 1961. The Revisional Authority was of the view that the revision application was not tenable on multiple counts. First, since the petitioner had neither preferred application nor raised objection in the manner envisaged by Rule 107(12) to (14) of the Rules, 1961 the challenge to the auction sale in a revision under section 154 of the Act, 1960 was not competent. Second, in view of the failure of the petitioner to make pre-deposit envisaged by sub-section (2A) of section 154 of the Act, 1960, no application for revision could be entertained. Third, though the recovery certificate was issued on 9th December 2009 by the Deputy Registrar, Jalgaon, its legality was sought to be assailed by the petitioner by way of amendment in the year 2018. The challenge to the recovery certificate by way of a revision application, preferred in the year 2011, and the amendment thereto, in the year 2018, was, thus, barred by limitation. By an order dated 10th May 2019, this Court stayed the effect, implementation and operation of the auction sale and protected the possession of the petitioner over the subject land, subject to deposit of a sum of Rs.6,04,619/-, which was then stated to be outstanding.

Petitioner availed loan from respondent No.3 society on 18 October 2005; respondent No.3 applied for recovery certificate on 8 October 2009; District Deputy Registrar issued certificate on 9 December 2009; notice of auction sale published on 6 September 2011; auction sale held on 18 October 2011; revision application filed by petitioner in 2011; respondent No.7 confirmed sale on 31 March 2012; Divisional Joint Registrar dismissed revision on 16 May 2012; petitioner filed Writ Petition No. 7113 of 2012, which was partly allowed on 1 August 2018 remanding matter; post remand petitioner amended revision; Divisional Joint Registrar dismissed revision again on 12 April 2019; petitioner filed present Writ Petition No. 5627 of 2019; High Court stayed auction sale on 10 May 2019 subject to deposit of Rs.6,04,619; judgment reserved on 27 April 2021 and pronounced on 25 May 2021.

• Maharashtra Co-operative Societies Act, 1961: Section 101, Section 154 (including sub-section 2A)
• Maharashtra Co-operative Societies Rules, 1961: Rule 86-A to 86-F, Rule 107 (sub-rules (3), (4), (10), (11)(b), (11)(d), (12) to (14), (13))