IMPORTANT POINT
Persons not objecting to auction sale and acquiescing in the auction sale by accepting the sale proceeds are stopped from challenging the auction sale.

JUDGMENT :

Madan B. Lokur, J.

1. Leave granted in S.L.P.(C) No. 21229 of 2007.

2. A narrow question arises for consideration in these appeals, namely, whether the Allahabad High Court was right in setting aside a confirmed auction sale despite there being no objection to it. In our opinion, the High Court was in error in setting aside the auction of the land belonging to the private respondents (Alok Mitra, Ashok Mitra, Deepak Mitra, Manmohan Mitra and Madhurima Ghosh) and thereby prejudicing the rights of the appellants.

3. The private respondents were having businesses under the name and style of Mitra Prakashan Ltd. and Maya Press Ltd. It appears that the businesses were not successful and they fell in debt being unable to pay the workmen or even pay closure compensation.

4. This led the workmen to approach the Labour Court which decided in their favour resulting in the private respondents having to shell out a huge amount of about Rs. 56 lakhs towards unpaid dues. Since the amounts were not paid despite a citation and recovery certificates, the property/vacant land of the private respondents being 1877.88 sq. yards in Plot No.4-A/4(1A/A) Hashimpur Road, Allahabad was attached.

5. Subsequently, the property/vacant land was put to auction which took place on 17th November, 2004. One of the appellants Pravesh Kumar Sachdeva (for short Sachdeva) was the highest bidder having given a bid of Rs. 70 lakhs.

6. In terms of the provisions of the Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950 and the Rules of 1952 framed thereunder, 30 days’ time was given for filing objections to the auction sale under Rule 285-I which reads as follows:

“RULE 285-I (i) At any time within thirty days from the date of sale, application may be made to the Commissioner to set aside the sale on the ground of some material irregularity or mistake in publishing or conducting it; but no sale shall be set aside on such ground unless the applicant proves to the satisfaction of the Commissioner that he has sustained substantial injury by reason of such irregularity or mistake.

(ii) ***

(iii) The order of the Commissioner passed under this rule shall be final.”

7. One of the private respondents (Alok Mitra) filed an application/objections on 16th December, 2004. The cause title of the application/objections mentioned the name of all the private respondents that is, Alok Mitra, Ashok Mitra, Deepak Mitra, Manmohan Mitra and Madhurima Ghosh. However, on a perusal of the application/objections placed before us in original, we found that it was signed only by the advocate R.K. Pandey. The vakalatnama given to the advocate was signed only by Alok Mitra. One of the issues raised before us was whether the application/objections were filed by Alok Mitra or by all the private respondents.

8. Be that as it may, in our opinion, the application/objections were filed only by Alok Mitra and by none of the other private respondents even though their names find mention in the cause title of the document. We say this because the vakalatnama was given in favour of the advocate only by Alok Mitra and there is nothing to indicate that he had given the vakalatnama as the attorney or representative of the other private respondents.

9. The District Magistrate was not informed about the application/objections having been filed by Alok Mitra and on the belief that no one had objected to the auction sale, the District Magistrate confirmed it on 18th December, 2004. Thereafter Alok Mitra prepared an application dated 31st December, 2004 which was filed by him on 4th January, 2005 withdrawing the objections raised by him. The withdrawal of the objections was allowed by the competent authority on 24th January, 2005.

10. Quite independently on 11th January, 2005 and 25th January, 2005 the private respondents (including Alok Mitra) moved two sets of applications for being paid the difference between the auction sale price of Rs. 70 lakhs and the dues and liabilities of the private respondents