Bombay High Court considers writ petition challenging orders setting aside auction sale of defaulter's land under Maharashtra Co-operative Societies Act. Auction purchaser seeks to uphold confirmation of auction sale while respondents contend auction void due to procedural irregularities under Section 154 of the Act.

High Court: Bombay High Court Bench: AURANGABAD
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Case Note & Summary

The writ petition arose from a dispute regarding an auction sale of agricultural land for recovery of cooperative society dues. The defaulter, Dayaram Ramu Patil, had taken a loan from Vividh Karyakari Seva Sahakari Society, Chincholi Pimpri, and owed Rs. 3,880/-. He died on 29th December 1973, survived by his wife and three daughters. The Special Recovery Officer attached his land, Gat No. 110 at Shevga Pimpri, measuring about 12 acres 08 gunthas, and put it to auction on 21st May 1976 after publishing notice in a daily newspaper. The petitioner, Paramdas Zama Rathod, was the highest bidder at Rs. 7,500/-, and the sale was confirmed by the Assistant Registrar on 9th September 1976, and possession was handed over to him. The legal representatives of Dayaram (respondent Nos. 1 to 3) objected, filing an application on 23rd July 1976 before the Assistant Registrar not to confirm the sale, but it was rejected. They then filed a revision under Section 154 of the Maharashtra Co-operative Societies Act, 1960, before the Divisional Joint Registrar, who, by order dated 26th October 1977, set aside the confirmation order. The petitioner challenged that order before the State Minister for Co-operation, who dismissed the revision on 31st August 1989, affirming the Divisional Joint Registrar's decision. The petitioner then filed this writ petition in 1992. During pendency, the respondents deposited the outstanding dues of Rs. 4,600/-, but there was a delay of two days beyond the stipulated time for depositing, which led to vacating of stay of possession. The respondents claimed that the auction was void ab initio due to lack of proper notice to all legal heirs, especially since one daughter was a minor, and the Recovery Officer and Assistant Registrar failed to protect her interest. They also contended that they were illiterate and were misled by the society's secretary into withdrawing the deposited amount. The matter involved concurrent findings of the revisional authorities. The court's decision and reasoning are not included in the extracted text; hence, the final outcome is not known.

Issue of Consideration

Whether the auction sale and its confirmation were valid; whether the revisional authorities correctly set aside the auction sale under Section 154 of the Maharashtra Co-operative Societies Act, 1960.

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Case Details

2012 LawText (BOM) (06) 16

Writ Petition No. 906 of 1992

2012-06-29

S.S. Shinde, J.

Mr. Sangeet L.V., Mr. D.R. Kale

Paramdas Zama Rathod

Smt. Deokabai D. Patil, Mrs. Dagubai Vitthal Patil, Smt. Anjanabai Dayaram Patil, Assistant Registrar Co-operative Societies (Recovery) Jalgaon, District Deputy Registrar Co-operative Societies Jalgaon, Divisional Joint Registrar Co-operative Societies Bombay Division New Bombay, The State of Maharashtra

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Nature of Litigation

Civil writ petition challenging revisional orders setting aside auction sale of land for recovery of cooperative society dues.

Remedy Sought

Petitioner seeks quashing of the orders dated 31st August 1989 of the Minister of State for Co-operation and 26th October 1977 of the Divisional Joint Registrar, and restoration of the confirmation of auction sale.

Filing Reason

The Divisional Joint Registrar set aside the auction sale confirmation, and the Minister dismissed the petitioner's revision, aggrieving the petitioner.

Previous Decisions

Assistant Registrar confirmed auction sale on 9th September 1976. Divisional Joint Registrar set aside that order on 26th October 1977. Minister of State for Co-operation dismissed petitioner's revision on 31st August 1989, affirming the Divisional Joint Registrar's decision.

Issues

Whether the auction sale and its confirmation were valid given the alleged lack of notice to all legal representatives of the defaulter. Whether the revisional authorities correctly exercised jurisdiction under Section 154 of the Maharashtra Co-operative Societies Act, 1960, in setting aside the auction sale.

Submissions/Arguments

Petitioner argues that he was the highest bidder in a properly conducted auction, the sale was confirmed, and possession was duly handed over; the revisional orders were erroneous. Respondent Nos. 1 to 3 contend that the auction was void ab initio because notices were not served on all legal heirs, one of whom was a minor, and the Recovery Officer failed to protect her interest; they deposited the entire loan amount, defeating the purpose of the auction; the concurrent findings of the revisional authorities should not be interfered with.

Judgment Excerpts

This petition takes exception to the judgment and order dated 31st August, 1989 passed by the Minister of State for Co-operation in Revision Application No.RVA 2777/56550/CR-248-15C and also the order dated 26th October, 1977 passed by the Divisional Joint Registrar, Co-operative Societies, Bombay Division, New Bombay. It is stated in the said reply that the respondents No.1, 2 and 3 are sisters. They are Legal Representatives of deceased Dayaram. Without proper notice to the respondents No.1 to 3 at the relevant time, the property was put to auction on 21st May, 1976. The respondents averred in the said revision that while conducting the auction sale, illegalities are committed by the authorities and, therefore, the auction sale itself was ab-initio void as no notices were served on all the owners. The respondent No.3 Anjanabai was minor at the relevant time and, therefore, it was duty of the Recovery Officer and Assistant Registrar to protect her interest. Thus, in all Rs.4,600/- were deposited though the total dues were Rs.4,287/-. There are concurrent findings recorded by the Divisional Joint Registrar and the Minister in revision and, therefore, this Court may not interfere in the concurrent findings.

Procedural History

The defaulter Dayaram died on 29-12-1973. Recovery Officer attached land and auctioned it on 21-05-1976. Petitioner was highest bidder; sale confirmed by Assistant Registrar on 09-09-1976; possession given. Respondents objected and filed revision under Section 154 before Divisional Joint Registrar, who on 26-10-1977 set aside the confirmation order. Petitioner filed revision before Minister of State for Co-operation, dismissed on 31-08-1989. Petitioner filed writ petition in 1992. On 11-06-1992, ad interim relief granted; rule issued on 01-09-1992 but interim relief vacated. Matter proceeded for final hearing.

Acts & Sections

  • Maharashtra Co-operative Societies Act, 1960: Section 154
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