DEENADAYAL NAGARI SAHAKARI BANK LTD. & ANOTHER versus MUNJAJI AND OTHERS

DEENADAYAL NAGARI SAHAKARI BANK LTD. & ANOTHER versus MUNJAJI AND OTHERS

The High Court's setting aside of the auction was unsustainable: the borrower failed to avail statutory remedies under Rules 107(13) and 107(14) within thirty days and did not persuade that he sustained substantial injury; the sale certificate was issued after the statutory period and after approval by the District Deputy Registrar who noted the realised price exceeded upset price; the period of stay obtained by the borrower is excluded for purposes of the seven-day adjournment rule so no fresh proclamation was required; the auction purchaser complied with deposit requirements as he paid 15% on sale and 85% within 15 days of District Deputy Registrar's approval. Consequently the High...

Parties
Appellant Bank: Deenadayal Nagari Sahakari Bank Ltd.; Appellant Auction Purchaser: Ratnakar Gutte; Respondent Borrower: Munjaji (director of Vaishnavi Hatcheries Company Limited)
Jurisdiction
India
Judgment Date
16 February 2022
Procedural Posture
Civil Appeal / Hearing on Appeal From High Court Judgment Quashing Auction Sale
Outcome
Appeals allowed; impugned High Court judgment and order dated 30.07.2021 quashed and set aside; writ petition dismissed
Legal Topics
Rule 107(11)(e), (f), (g), (h) MCS Rules, 1961, Rule 107(13) and Rule 107(14) MCS Rules, Section 154 MCS Act, 1960, Setting Aside Auction Sale, Requirement of Proclamation and Adjournment
Maharashtra Co Operative Societies Act, 1960 Maharashtra Co Operative Societies Rules, 1961 Auction and Recovery Proceedings Civil Writ Jurisdiction Rule 107(11)(e),(f),(g),(h) MCS Rules, 1961 Rule 107(13) and Rule 107(14) MCS Rules, 1961 Section 154 MCS Act, 1960 Setting Aside Auction Sale +1 more

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Parties

Deenadayal Nagari Sahakari Bank Ltd.

Appellant Bank

Ratnakar Gutte

Appellant Auction Purchaser

Munjaji (director of Vaishnavi Hatcheries Company Limited)

Respondent Borrower

Procedural Posture

Civil Appeal / Hearing on Appeal From High Court Judgment Quashing Auction Sale

Legal Issues

  1. 1 Whether High Court could entertain writ petition after Divisional Joint Registrar held revision under s.154 MCS Act not maintainable
  2. 2 Whether auction/sale was vitiated by non-compliance with Rules 107(11)(e),(f),(g),(h) MCS Rules, 1961
  3. 3 Whether borrower’s failure to apply under Rule 107(13) or under Rule 107(14) within 30 days precluded later challenge

Ratio Decidendi

The High Court's setting aside of the auction was unsustainable: the borrower failed to avail statutory remedies under Rules 107(13) and 107(14) within thirty days and did not persuade that he sustained substantial injury; the sale certificate was issued after the statutory period and after approval by the District Deputy Registrar who noted the realised price exceeded upset price; the period of stay obtained by the borrower is excluded for purposes of the seven-day adjournment rule so no fresh proclamation was required; the auction purchaser complied with deposit requirements as he paid 15% on sale and 85% within 15 days of District Deputy Registrar's approval. Consequently the High...

Court Disposition

Appeals allowed; impugned High Court judgment and order dated 30.07.2021 quashed and set aside; writ petition dismissed

Orders

  • Impugned judgment and order dated 30.07.2021 of High Court of Bombay in Writ Petition No. 570/2012 quashed and set aside
  • Writ Petition No. 570/2012 dismissed