Case Note & Summary
The appellant, Shegaon Taluka Co-operative Agricultural Purchase and Sale Society Limited, filed a Letters Patent Appeal against the judgment of a Single Judge of the Bombay High Court dated 27.10.1993, which confirmed the auction sale of its properties. The properties in question were Plot No.13/1 of Survey No.15-C, Plot No.13/1 of Survey No.58-C, and a godown located on Plot No.10/1, Sheet No.14-D. The sale was conducted by respondent no.3, the Co-operative Officer (Recovery), based on an Award dated 1.12.1973 passed by the Assistant Registrar, Co-operative Societies, Buldana, under Section 98 of the Maharashtra Co-operative Societies Act, 1960. The appellant was indebted to respondent no.5 for Rs. 72,005.28 as per a Recovery Certificate. The appellant contended before the Single Judge that the godown property was not attached prior to the auction, was not included in the proclamation, and that the upset price was not properly fixed. Additionally, the appellant argued that the property had been attached by the Government for recovery of dues, and thus could not be sold in auction. The Single Judge rejected these contentions and confirmed the sale. In the appeal, the Division Bench heard the parties and noted that the appellant had not raised any objection before the Single Judge regarding the non-joinder of the Government as a party. The Court observed that the appellant had not shown any prejudice caused by the alleged irregularities. The Division Bench found no merit in the appeal and dismissed it, upholding the confirmation of the sale.
Headnote
A) Co-operative Law - Recovery of Dues - Auction Sale under Section 98 of Maharashtra Co-operative Societies Act, 1960 - Validity - The appellant society challenged the auction sale of its properties on grounds of non-attachment, improper upset price, and prior Government attachment - The Court held that the sale was valid as the appellant failed to show any prejudice and the sale had been confirmed - The appeal was dismissed (Paras 1-6).
Issue of Consideration
Whether the auction sale of the appellant's properties conducted by the Co-operative Officer (Recovery) under Section 98 of the Maharashtra Co-operative Societies Act, 1960, is valid despite allegations of non-attachment, improper upset price, and prior attachment by the Government.
Final Decision
The Division Bench dismissed the appeal, upholding the confirmation of the auction sale of the appellant's properties.
Law Points
- Auction sale under Section 98 of Maharashtra Co-operative Societies Act
- 1960
- cannot be challenged on grounds of non-attachment or improper upset price if the sale is confirmed and no prejudice is shown
- Attachment by Government does not bar sale by Co-operative Officer for recovery of dues under the Act
Case Details
2005 LawText (BOM) (12) 112
Letters Patent Appeal No.176 of 1993 in Writ Petition No.525/92
Mr. S.P. Hadaoo for Appellant; Mr. D.B. Yengal for Respondent Nos.1,3,4; Mr. S.P. Palshikar for Respondent No.2; Mr. A.S. Jaiswal and Mr. Brahme for Respondent No.5
Shegaon Taluka Co-operative Agricultural Purchase and Sale Society Limited, Shegaon
1. District Deputy Registrar, Co-operative Societies, Buldana; 2. Rambhau Motiram Kalore; 3. The Co-operative Officer (Recovery) Grade I (Shri Vange), District Agro Industrial Co-operative Society Ltd. Buldana; 4. Joint Registrar, Co-operative Societies (INSP) Pune; 5. Buldana Zilla Krishi Audyogik Seva Sahakari Sanstha Ltd. Buldana
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Nature of Litigation
Letters Patent Appeal against judgment of Single Judge confirming auction sale of properties of a co-operative society for recovery of dues.
Remedy Sought
The appellant society sought to set aside the auction sale of its properties.
Filing Reason
The appellant challenged the auction sale on grounds of non-attachment, improper upset price, and prior Government attachment.
Previous Decisions
The learned Single Judge of the Bombay High Court confirmed the sale by judgment dated 27.10.1993.
Issues
Whether the auction sale of the appellant's properties was valid despite allegations of non-attachment and improper upset price?
Whether the prior attachment by the Government barred the sale by the Co-operative Officer?
Submissions/Arguments
Appellant argued that the godown property was not attached prior to auction, not included in proclamation, and upset price was not properly fixed.
Appellant argued that the property was already attached by the Government for recovery of dues and could not be sold.
Respondents supported the sale and argued no prejudice was caused.
Ratio Decidendi
An auction sale under Section 98 of the Maharashtra Co-operative Societies Act, 1960, cannot be set aside on grounds of non-attachment or improper upset price if the sale has been confirmed and the judgment debtor fails to show any prejudice. Prior attachment by the Government does not automatically bar the sale by the Co-operative Officer for recovery of dues under the Act.
Judgment Excerpts
Heard the learned counsel appearing for the parties.
The appellant - Shegaon Taluka Co-operative Agricultural Purchase and Sale Society Limited ... has impugned the judgment and order dated 27.10.1993 passed by the learned Single Judge of this Court confirming the sale of the properties of the society ...
It is not the matter in dispute that insofar as the appellant - Society is concerned, it is indebted to respondent no.5 a sum of Rs. 72,005.28 as per the Recovery Certificate issued for satisfaction of the Award passed against it.
Procedural History
The appellant filed Writ Petition No.525/92 challenging the auction sale. The learned Single Judge dismissed the petition on 27.10.1993, confirming the sale. The appellant then filed Letters Patent Appeal No.176 of 1993 before the Division Bench, which was decided on 22.12.2005.
Acts & Sections
- Maharashtra Co-operative Societies Act, 1960: 98
