SUPREME COURT OF INDIA
J.B. PARDIWALA AND K.V. VISWANATHAN, JJ.
Azam Khan – Appellant
Versus.
Divisional Commissioner Faizabad And Others – Respondent
Petition for Special Leave to Appeal (C) Nos.22676-22677 of 2022 [Arising out of impugned final judgment and order dated 09-11-2021 in CMA No. 79089/2020 and order dated 24-02-2020 in MS No. 1186/1994 passed by the High Court of Judicature at Allahabad, Lucknow Bench]
Decided on : 02-04-2025
| Table of Content |
|---|
| 1. background facts of the auction process. (Para 1 , 5 , 6 , 7) |
| 2. court's approach to the appeal. (Para 2 , 3 , 4) |
| 3. legal challenges to the auction sale. (Para 8 , 10 , 11 , 12) |
| 4. legal interpretation regarding rule 285l. (Para 15 , 16 , 17 , 18) |
| 5. final ruling on the refund of auction money. (Para 20 , 21 , 22 , 23) |
ORDER :
1. These petitions arise from the judgment and order passed by the High Court of Judicature at Allahabad, Lucknow Bench dated 24-2-2020 in Misc. Single No.1186/1994, by which the High Court allowed the Writ Petition filed by the father of the Respondent Nos. 4 to 6 respectively - herein (original petitioners) and thereby setting aside the order passed by the Board of Revenue and the order dated 9-11-2021 passed in Civil Miscellaneous Application No.79089/2020 (Review Application) filed by the petitioner whereby the Review Application was dismissed.
2. We need not delve much into the facts of this litigation as we propose to dispose of these petitions by passing a short order.
3. We take notice of the order passed by a coordinate Bench of this Court dated 2-12-2022 which reads thus:-
Issue notice confined to the question as to the appropriate compensation on damages which can be paid to the petitioner on the facts of the case, returnable in four weeks.'
4. Thus, it is evident that notice was issued confined only to the question whether the petitioner - herein should be compensated appropriately by way of damages in the facts and circumstances of the case.
5. It appears from the materials on record that the father of the Respondent Nos.4 to 6 respectively herein had obtained loan from a Bank. The father defaulted in repayment of the loan.
6. In such circumstances, the land in question was put to auction by the Collector sometime in 1992.
7. The petitioner - herein participated in the auction and was declared the highest bidder. His bid of Rs.70,000/- for the subject - land was accepted and finalized.
8. However, before any Sale Certificate could be issued and the auction proceedings could attain finality, the private respondents - herein challenged the legality and validity of the auction first before the Commissioner.
9. The Commissioner declined to grant any relief.
10. The order of the Commissioner was challenged before the Board of Revenue. The Board of Revenue also declined to interfere.
11. In such circumstances, referred to above, the private respondents went before the High Court. The High Court allowed the writ petition filed by the private respondents - herein holding as under:-
(13) Learned counsel for the respondent no.4 says that Rs.70,000/- was deposited by them in the Treasury in 1992 and more than 28 years have passed if such amount had been deposited any Bank, the respondents would have earned interest thereon.
(14) Learned Standing Counsel for the State-respondents has pointed out from the affidavit filed by the State-respondents that the amount was tried to be returned to the respondent no.4 and his legal he
AI
The court confirmed that auction sales are valid if proper procedure is adhered to, even when the bid amount decreases, provided that no statutory requirements are violated.
Mandatory compliance with Rule 285-E of the Uttar Pradesh Zamindari Abolition and Land Reforms Rules, 1952 is essential for the validity of auction sales.
The court affirmed that an auction sale confirmation under the U.P. Zamindari Abolition and Land Reforms Rules is final after 30 days, barring any objections, and cannot be revoked by the confirming ....
The limited scope of interference under Rule 285-I and the importance of complying with court directions.
The importance of proper valuation, fair auction, and maximum public participation in the auction process was emphasized by the court.
Confirmed auction sales cannot be set aside for alleged inadequacy of price or lack of publicity without proof of fraud or substantial injury.
An auction purchaser cannot claim ownership or additional payments until the auction sale is confirmed, and the 5% penalty only applies to actual amounts deposited as per CPC provisions.
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