Case Note & Summary
The petitioner, Shiva Sahakari Up Jal Sinchan Sanstha Ltd., a cooperative society, had taken a loan from the Nanded District Central Cooperative Bank (respondent no.1). Due to default in repayment, the bank initiated recovery proceedings under Section 101 of the Maharashtra Cooperative Societies Act, 1960. The bank auctioned the petitioner's property, and the auction was confirmed in favor of respondent nos.3 to 5 (the auction purchasers). The petitioner filed a writ petition challenging the auction sale, alleging that the bank did not follow proper procedure and that the sale was conducted at a low price. The court examined the facts and found that the petitioner had not repaid the loan despite several opportunities. The auction was conducted after due notice, and the sale was confirmed. The court held that once the sale is confirmed and a sale certificate is issued, the sale becomes absolute and cannot be set aside in writ jurisdiction. The court also noted that the petitioner had an alternative remedy of filing a civil suit if there was any fraud. The petition was dismissed, and the rule was discharged.
Headnote
A) Cooperative Law - Recovery of Dues - Auction Sale Confirmation - Section 101 of Maharashtra Cooperative Societies Act, 1960 - The petitioner challenged the auction sale of its property by the respondent bank for recovery of loan dues. The court held that once the auction sale is confirmed and sale certificate is issued, the sale becomes absolute and cannot be set aside in writ jurisdiction. The court found no irregularity or fraud in the auction process. (Paras 1-10) B) Constitutional Law - Writ Jurisdiction - Interference with Auction Sale - Article 226 of Constitution of India - The court held that writ jurisdiction under Article 226 is discretionary and should not be exercised to interfere with a confirmed auction sale in the absence of any illegality or violation of principles of natural justice. The petitioner's remedy lies in civil suit if any fraud is alleged. (Paras 8-10)
Issue of Consideration
Whether the auction sale of the petitioner's property conducted by the respondent bank under Section 101 of the Maharashtra Cooperative Societies Act, 1960, and confirmed by the sale certificate, can be set aside in writ jurisdiction after confirmation.
Final Decision
The writ petition is dismissed. Rule discharged. No order as to costs.
Law Points
- Auction sale confirmed under Section 101 of Maharashtra Cooperative Societies Act
- 1960 cannot be set aside after confirmation and issuance of sale certificate
- Cooperative Bank's recovery proceedings under Section 101 are valid
- Writ petition under Article 226 not maintainable after confirmation of sale
- No interference with auction sale in absence of fraud or irregularity
