RAKESH KUMAR GOEL ETC. versus U.P. STATE INDUSTRIAL DEVELOPMENT CORPORATION LTD. & ORS.

RAKESH KUMAR GOEL ETC. versus U.P. STATE INDUSTRIAL DEVELOPMENT CORPORATION LTD. & ORS.

The auction sales of government plots in favour of the appellants were illegal, fraudulent, bad and malafide due to violation of Rule 285-D of the UPZALR Rules (failure to deposit required amount on auction day), procedural deficiencies, collusion, lack of proper advertisement, and manipulation of records. The High Court was correct in setting aside the auction sale, and exemplary costs are imposed.

Parties
Appellant: Rakesh Kumar Goel; Respondent: U.P. State Industrial Development Corporation Ltd.; Appellant: Moti Lal Goel; Private Respondent: BSPL; Private Respondent: SAPL; Respondent: UPSIDC
Jurisdiction
India
Judgment Date
08 July 2010
Procedural Posture
Civil Appeal / Appeal From Judgment and Order Dated 07.09.2006 of the High Court of Judicature at Allahabad in Civil Misc. Writ Petition Nos. 3790 and 3799 of 2000
Outcome
Appeal dismissed with exemplary costs.
Legal Topics
Auction Sale, Recovery of Government Dues, Legality of Auction Proceedings, Public Property Disposal
Land Law Auction Sale Recovery of Government Dues Legality of Auction Proceedings Public Property Disposal

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Parties

Rakesh Kumar Goel

Appellant

U.P. State Industrial Development Corporation Ltd.

Respondent

Moti Lal Goel

Appellant

BSPL

Private Respondent

SAPL

Private Respondent

UPSIDC

Respondent

Procedural Posture

Civil Appeal / Appeal From Judgment and Order Dated 07.09.2006 of the High Court of Judicature at Allahabad in Civil Misc. Writ Petition Nos. 3790 and 3799 of 2000

Legal Issues

  1. 1 Whether the auction sales of government land were legal and valid under UPZALR Rules, 1952, especially Rule 285-D
  2. 2 Whether failure to deposit one-fourth of bid amount immediately after auction invalidated the sale
  3. 3 Whether the proceedings were collusive, fraudulent or malafide

Ratio Decidendi

The auction sales of government plots in favour of the appellants were illegal, fraudulent, bad and malafide due to violation of Rule 285-D of the UPZALR Rules (failure to deposit required amount on auction day), procedural deficiencies, collusion, lack of proper advertisement, and manipulation of records. The High Court was correct in setting aside the auction sale, and exemplary costs are imposed.

Court Disposition

Appeal dismissed with exemplary costs.

Orders

  • Appellants to pay Rs.2 lakhs each as exemplary costs to Supreme Court Legal Aid Committee within 12 weeks.
  • Costs to be recovered as fine under Code of Criminal Procedure if not paid.