Case Note & Summary
The petitioner, Jayant s/o Vasantrao Dhole, challenged the orders of the Collector, Amravati, dated 1.6.1992, setting aside an auction sale conducted on 9.3.1992, and the appellate order of the Additional Commissioner, Amravati Division, confirming the Collector's decision. The property in question was 14,520 sq. ft. from Land Survey No. 2/2, Mouza Rasulpur, which was proceeded against by the Naib Tahsildar, Morshi, for recovery of arrears of Rs.81,618/- towards non-agricultural assessment due to the State Government. The petitioner was the highest bidder at Rs.3,10,000/- and immediately deposited 1/3rd of the amount (Rs.1,04,000/-) in cash. The bid was accepted by the Naib Tahsildar, and the papers were forwarded to the Sub-Divisional Officer for confirmation. However, before confirmation, Respondent No.5 (a cooperative society) preferred a Revision Application before the Collector, arguing that the society was under liquidation under the Maharashtra Cooperative Societies Act, 1960, and that the auction consideration was inadequate. The Collector set aside the auction, and the Additional Commissioner upheld that decision in appeal. The High Court examined the provisions of the Maharashtra Land Revenue Code, 1966, particularly Section 202, and the Maharashtra Cooperative Societies Act, 1960, Sections 107 and 163(2). The court held that the Collector had no jurisdiction to interfere with the auction sale after it was confirmed by the Sub-Divisional Officer, as the revision was filed against the auction proceedings before confirmation. The court also held that the provisions of the Cooperative Societies Act do not bar the State from recovering its dues through auction, as the State's claim for non-agricultural assessment is a statutory charge. The court found that the petitioner was a bona fide auction purchaser who had deposited the required amount and was entitled to protection. The court allowed the writ petition, set aside the orders of the Collector and Additional Commissioner, and directed that the auction sale be confirmed in favor of the petitioner.
Headnote
A) Revenue Law - Auction Sale - Confirmation of Sale - Jurisdiction of Collector - The Collector, in exercise of revisional powers under the Maharashtra Land Revenue Code, 1966, cannot set aside a confirmed auction sale on grounds of inadequacy of consideration or alleged violation of the Maharashtra Cooperative Societies Act, 1960, when the sale was conducted for recovery of government dues and confirmed by the Sub-Divisional Officer. Held that the Collector exceeded his jurisdiction by interfering with the confirmed sale (Paras 5-8). B) Cooperative Societies - Liquidation - Effect on Revenue Recovery - The provisions of Sections 107 and 163(2) of the Maharashtra Cooperative Societies Act, 1960, do not bar the State from recovering its dues through auction of property belonging to a society under liquidation, as the State's claim for non-agricultural assessment is a statutory charge. Held that the auction was valid and not vitiated by the society's liquidation (Paras 3-4). C) Auction Sale - Adequacy of Consideration - Protection of Auction Purchaser - Once an auction sale is confirmed and the purchaser has deposited the required amount, the sale cannot be set aside merely on the ground that the property was sold at a low price, unless there is fraud or collusion. Held that the petitioner, as a bona fide auction purchaser, is entitled to protection and the sale must be confirmed (Paras 6-8).
Issue of Consideration
Whether the Collector had jurisdiction to set aside an auction sale confirmed by the Sub-Divisional Officer under the Maharashtra Land Revenue Code, 1966, on grounds of inadequacy of consideration and alleged violation of the Maharashtra Cooperative Societies Act, 1960, and whether the auction purchaser's bid should be protected.
Final Decision
Writ petition allowed. Orders dated 1.6.1992 passed by the Collector, Amravati, and the appellate order of the Additional Commissioner, Amravati Division, are quashed and set aside. The auction sale dated 9.3.1992 in favor of the petitioner is confirmed. The respondents are directed to complete the sale formalities and hand over possession to the petitioner. No order as to costs.
Law Points
- Revenue recovery auction
- confirmation of sale
- jurisdiction of Collector in revision
- Maharashtra Land Revenue Code 1966 Section 202
- Maharashtra Cooperative Societies Act 1960 Sections 107 and 163(2)
- adequacy of consideration
- auction purchaser's rights
