(SK, J)

An auction sale of immovable property under the Andhra Pradesh Co-operative Societies Act, 1964 and the Rules framed thereunder is called in question.

By order dated 07.02.2005 in Writ Petition No.1303 of 2005, a learned Judge reversed the Judgment of the Andhra Pradesh Co-operative Tribunal, Hyderabad and upheld the said auction sale. Hence, this appeal by the erstwhile owner of the property.

The appellant, a proprietary concern, suffered the Award dated 06.05.2000 in ARC No.81/2000-OSD under Section 61 of the Andhra Pradesh Co-operative Societies Act, 1964 (hereinafter, ‘the Act of 1964’), whereby it was directed to pay the Charminar Cooperative Urban Bank Limited, Hyderabad, the sixth respondent herein, a sum of Rs.27,24,810/- with interest at 21% per annum within two weeks. In the event of default, the sixth respondent Bank was held entitled to recover the entire dues jointly and severally from the Proprietor, Shyam Prasad, and the guarantors, personally or from their properties, movable and/or immovable or both.

Aggrieved thereby, the appellant filed CTA (SR) No.6370 of 2001, which was thereafter numbered as CTA No.239 of 2003, before the Andhra Pradesh Co-operative Tribunal, Hyderabad (hereinafter, ‘the Tribunal’). The Tribunal granted interim stay of the operation of the Award subject to the appellant depositing a sum of Rs.7.50 lakhs within one month. As the appellant failed to comply with the said condition, the sixth respondent Bank sought execution of the Award in E.P. No.21 of 2001. Under Section 70 of the Act of 1964, the Registrar of Co-operative Societies is empowered to recover the amount due under the decision of an Arbitrator by sale of the property of the person against whom such decision has been passed. As the Proprietor, Shyam Prasad, had mortgaged his properties with the sixth respondent Bank while availing the loan facility, recovery was sought to be effected in execution by bringing to sale the Proprietor’s house and site admeasuring 300 square yards in Plot No.60, Survey No.160, Thokatta Village, Secunderabad Cantonment, Secunderabad.

The proclamation of sale under Rule 52(11)(e) of the Andhra Pradesh Co-operative Societies Rules, 1964 (hereinafter, ‘the Rules of 1964’) was issued by the Deputy Registrar of Co-operative Societies on 07.07.2001 fixing the date of auction sale as 13.08.2001, a clear 30 days after the date of the proclamation as required by the Rule. However, it appears that the auction sale did not take place on the stipulated date and a second sale proclamation was issued by the Deputy Registrar of Co-operative Societies on 20.12.2001 fixing the date of the auction sale as 23.01.2002. The gap of a clear 30 days between the dates of the proclamation and the auction sale was again maintained. However, once again, the sale did not take place on 23.01.2002 leading to the issuance of a third sale notice on 11.04.2002 whereby the auction sale was proposed to be held on 24.04.2002. Yet again, the sale was not conducted on the said date leading to the issuance of the fourth sale notice dated 01.08.2002 fixing the date of the auction sale as 24.08.2002.

Relevant to note, neither the sale notice dated 11.04.2002 nor the sale notice dated 01.08.2002 provided a 30 days gap before the date of the auction. The sale notice dated 01.08.2002 was served upon the appellant, which moved an application in the pending CTA (SR) No.6370 of 2001 seeking stay of the sale proceedings on 24.08.2002. This I.A. was filed on 21.08.2002 but immediately thereafter, on 22.08.2002 the appellant approached this Court by way of Writ Petition No.15814 of 2002. The appellant sought a writ of certiorari to quash the notice dated 01.08.2002 and to hold that the proposed auction of the appellant’s property was illegal, arbitrary and contrary to statutory provisions. Notice in the said writ petition was served on the sixth respondent Bank on 23.08.2002. The writ petition was disposed of by a learned Judge of