Case Note & Summary
The petitioner, Amit P. Modi, filed a writ petition challenging the auction sale of his property by the respondent no.5 society, for which he was a guarantor. The respondent no.2, Pradeep Subhashchandra Kothawade, was the auction purchaser. The petitioner contended that no notice under Section 101 of the Maharashtra Cooperative Societies Act, 1960 and Rule 107 of the Maharashtra Cooperative Societies Rules, 1961 was served upon him before the sale. The respondents argued that the sale was valid and the sale certificate was conclusive under Section 104 of the Act. The court examined the provisions and found that the sale was conducted without any notice to the petitioner, which is a mandatory requirement. The court held that the sale is void and not binding on the petitioner. The court set aside the sale certificate and directed the respondents to refund the auction amount to the respondent no.2 with interest. The writ petition was allowed.
Headnote
A) Cooperative Societies - Auction Sale - Notice to Guarantor - Section 101 Maharashtra Cooperative Societies Act, 1960, Rule 107 Maharashtra Cooperative Societies Rules, 1961 - Sale of guarantor's property without any notice under Section 101 and Rule 107 is void and not binding on the guarantor - The court held that the sale conducted without notice is illegal and set aside the sale certificate and possession (Paras 1-20). B) Cooperative Societies - Sale Certificate - Conclusiveness - Section 104 Maharashtra Cooperative Societies Act, 1960 - Sale certificate is not conclusive if the sale itself is void for want of notice - The court held that the bar under Section 104 does not apply when the sale is void ab initio (Paras 15-20).
Issue of Consideration
Whether the auction sale of the petitioner's property, who was a guarantor, without issuing any notice under Section 101 of the Maharashtra Cooperative Societies Act, 1960 and Rule 107 of the Maharashtra Cooperative Societies Rules, 1961 is valid and binding on the petitioner.
Final Decision
The court allowed the writ petition, set aside the auction sale and sale certificate, and directed the respondents to refund the auction amount to respondent no.2 with interest at 9% per annum from the date of deposit till repayment.
Law Points
- Auction sale without notice to guarantor is void
- Section 101 Maharashtra Cooperative Societies Act
- Rule 107 Maharashtra Cooperative Societies Rules
- Guarantor's right to notice
- Sale certificate not conclusive if sale is void
