IMPORTANT POINT
Writ court does not encourage petitions from indolent, tardy and lethargic litigants – Writ court comes to aid of a litigant who approaches it with promptitude and before accrual of third-party rights.

JUDGMENT :

DIPANKAR DATTA, J.

THE CHALLENGE

1. Ahmednagar District Central Cooperative Bank Limited¹ [appellant, hereafter] is in appeal, challenging the judgment and order dated 23rd November, 2017² [impugned judgment, hereafter] of the High Court of Judicature at Bombay, Bench at Aurangabad³ [High Court, hereafter] dismissing its writ petition.⁴ [Writ Petition No. 10866 of 2016] Under challenge in the writ petition was an auction sale pertaining to the immovable property of Mula Sahakari Soot Girni Ltd., Rahuri.⁵ [society, hereafter] The challenge was primarily based on twin grounds: (i) that valuation of the property of the society (under liquidation) and the upset price were fixed on the lower side and (ii) that three bidders had not participated in the auction sale. The High Court did not find substance in any of these two grounds. Incidentally, the High Court recorded that no mala fide could be attributed in respect of the questioned auction sale and that the auction purchaser was not a private individual but a body established under the statute, i.e. the Agricultural Produce Market Committee, Rahuri.⁶ [respondent no. 6, hereafter]

THE FACTS

2. The basic facts leading to the questioned auction sale before the High Court are not in dispute.

3. The appellant sanctioned cash credit loan of Rs.95 lakh to the society. Default in liquidating the debt having occurred, the appellant lodged a dispute case⁷ [Dispute Case No. 389 of 2001] on 7th March, 2001 before the Registrar of Cooperative Societies, Maharashtra under section 91 of the Maharashtra Cooperative Societies Act, 1960⁸ [the 1960 Act, hereafter] for recovery of Rs.1,05,98,710/-. The dispute case stood allowed and vide an award dated 24th June, 2011, the appellant was held entitled to recover Rs.1,05,98,710/- with interest @ 17.5% per annum with effect from 1st October, 2000 from the society.

4. In liquidation proceedings which had started in the meanwhile, initially an interim order dated 3rd April, 2002 was passed calling upon the society to submit its say/explanation within the period stipulated as to why an order of dissolution should not be made. Thereafter, a final order dated 31st August, 2005 was passed by the Additional Registrar in terms of section 102 of the 1960 Act read with certain Government notifications referred to therein directing winding up of the society. The District Collector, Ahmednagar was appointed as the Liquidator of the society and he was directed to take action under section 105 of the 1960 Act and the rules framed thereunder. The final report was directed to be filed within a year to the Directorate of Textile Industry for acceptance.

5. The appellant had attached the immovable property of the society and obtained a valuation of a Government approved valuer on 21st January, 2012. The property of the society was valued at Rs.4.10 crore as on 21st January, 2012.

6. Auction sale notice dated 24th August, 2013 was issued by the appellant for sale of the property with upset price of Rs.4.10 crore. The respondent no. 6 expressed interest and submitted its bid together with earnest money of Rs.25 lakh. The sale process, however, could not materialize since no other bid was received. This resulted in the respondent no. 6 backing out from the auction process and requesting the appellant to return the earnest money of Rs.25 lakh.

7. Because of the failure of the appellant to sell the property by an auction, it submitted a claim before the Liquidator by letters dated 30th June, 2015, 5th September, 2015 and 2nd March, 2016. By July, 2016, the amount recoverable by the appellant from the debtor had swelled to Rs.3,95,08,840/-. However, allegedly, no response was received.

8. While the events as aforesaid were unfolding, a pending writ petition⁹ [Writ Petition No. 610 of 2001] before the High Court in respect of the liquidation process of the society and for directions to pay the employees thereof their legitimate dues had come up for consideration. On such writ