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2018 Supreme(Bom) 806

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
R.D. DHANUKA, J.
Shri Sunil Sitaram Mahajan – Appellant
Versus
Suryakant Pandurang Badave – Respondent
WRIT PETITION NO.6778 OF 2017
Decided on : 13-06-2018

Advocates:
Advocate Appeared:
For the Appellant : Mr. Amit B.Borkar, Adv.
For the Respondent: Mr.Girish R. Agrawal, Mr.S.H. Kankal, Mr.Pradeep D. Dalvi, Mr.N.J. Patil i/b Mr.Amey N. Patil, Adv.

Headnote:

Maharashtra Co-operative Societies Act, 1960 - section 101 - Civil Procedure Code, 1908 - Rule 84 - Order 21 - Repayment of loan - Recovery certificate - Respondent had obtained loan from respondent Corner Path - Respondent one were guarantors for loan obtained by respondent from respondent society - Borrower as well as guarantors committed default in making repayment of loan - Respondent therefore filed an application section Maharashtra Cooperative Societies Act for short before District Deputy Registrar respondent herein – Held, Insofar as submission of counsel for respondent who claims to have purchased property in question from respondent that neither auction purchasers nor bank had raised an issue maintainability of revision application filed by respondent or his client before special recovery officer is concerned there is no merit in this submission counsel - Reliance placed by counsel on Rule MCS Rules in support of submission that auction suit property in favor of petitioner was nullity is totally misplaced - Even if office bearers of respondent were present at time of auction that would not indicate that they were interested in auctioned properties personally - Insofar as proceedings filed by respondent in respect property in question is concerned this court does not express any view merits said proceedings - Remains that no adverse order is passed in respect property in question against petitioner in favor of respondent in proceedings till date - In my view provisional authority cannot set aside registered documents entered into in favor petitioner directly or indirectly - In my view findings rendered by Divisional Joint Registrar Co-operative Societies Kolhapur Division Kolhapur in impugned order February are perverse and contrary to principles of law laid down by Supreme Court and this court and also contrary to provisions of rule MCS Rules and various other provisions MCS Act and thus deserve to be set aside – Petition dismissed

JUDGMENT :

1. By this petition filed under Article 227 of the Constitution of India, the petitioner has impugned the order and judgment dated 1st February, 2017 passed by the learned Divisional Registrar, Cooperative Societies, Kolhapur Division, Kolhapur in Revision Application Nos.373 and 374 of 2016 and the Revision Application Nos. 409 and 420 of 2016. Learned counsel appearing for the petitioner states that all the respondents are served. The statement is accepted. Rule. Learned counsel for the respondents waive service. By consent of parties, writ petition is heard finally.

2. The respondent no.4 had obtained a loan from the respondent no.7 i.e. Shahu Corner Nagari Sahakari Path Sanstha Maryadit. The respondent no.1 and one Ratanlal Madanlal Bamb were the guarantors for the said loan obtained by the respondent no.4 from the respondent no.7 society. The borrower as well as the guarantors committed default in making repayment of the said loan. The respondent no.7 therefore, filed an application under section 101 of the Maharashtra Co-operative Societies Act, 1960 (for short “the M.C.S. Act.”) before the District Deputy Registrar, respondent no.2 herein.

3. On 1st June, 2010, the respondent no.2 issued a recovery certificate in favour of the respondent no.7 society. The said recovery certificate was neither challenged by the borrower nor by the guarantors. Pursuant to the said recovery certificate, the respondent no.3 attached the immovable property of the respondent no.4. The property of the respondent no.1 bearing City Survey No.12029 admeasuring 459 sq. mtrs. at Date Mala, Ichalkaranji was also attached. On 26th December, 2012, the auction came to be held in respect of the said property of the respondent no.1. The petitioner along with other four bidders participated in the said auction. The bid of the petitioner was the highest. It is the case of the petitioner that the bid of the petitioner was much more than the upset price and was thus accepted by the respondent no.3.

4. The petitioner deposited an amount of Rs.5,47,500/- towards 15% of the amount of bid by cheque No.012593 dated 26th December, 2012 on the same date drawn on Kalappa Awade Ichalkaranji Janata Sahakari Bank Limited and thereafter deposited the balance 85% amount of Rs.31,02,500/- by cheque No.12598 dated 7th January, 2013 drawn on the same Bank within a period of 15 days from the date of auction. The petitioner also deposited an amount of Rs.2,20,000/- towards the stamp duty in respect of the proposed sale deed.

5. It is the case of the petitioner that since the borrower or the guarantors did not pay the amount of auction along with costs plus 5% amount within 30 days from the date of auction under Rule 107(13) and other provisions of the Maharashtra Co-operative Societies Rules (for short the “M.C.S. Rules”), the respondent no.3 sent a proposal for confirmation of sale to the respondent no.2 i.e. the District Deputy Registrar. The respondent no.2 however, by an order dated 21st December, 2013 refused to grant sale certificate in favour of the petitioner.

6. The respondent no.3 addressed a letter to the respondent no.2 on 6th January, 2014 stating that due to factual incorrect statement, the respondent no.2 had refused to confirm the sale in favour of the petitioner and thus the respondent no.2 shall grant confirmation of sale in respect of the said property in favour of the petitioner. The respondent no.2 accordingly issued a notice dated 23rd January, 2014 to all the concerned parties to remain present in his office on 3rd February, 2014 for hearing on the objections mentioned in the letter dated 6th January, 2014 addressed by the respondent no.3 i.e. the Recovery Officer of Shahu Corner Nagari Sahakari Path Sanstha Maryadit.

7. Being aggrieved by the said communication dated 6th January, 2014 sent by the respondent no.2, the respondent no.1 herein filed a Revision Application bearing No.51 of 2014 initially without making the petitioner a party respondent.




























































































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