The importance of following the prescribed auction procedure and the rights of the borrower under the Scheme for waiver of agricultural loan.

JUDGMENT

A. S. Chandurkar, J. - Since both these Letters Patent Appeals raise challenge to the judgment of the learned Single Judge in Writ Petition No.5014/2009 dated 11/02/2010, they are decided together by this common judgment.

The facts relevant for adjudicating these appeals are that the original appellant in Letters Patent Appeal No.256/2010 had availed agricultural loan from the appellant-Bank in Letters Patent Appeal No.289/2011 for purchasing tractor and trolley. Loan amount of Rs.3,11,000/- was accordingly sanctioned in November 1996 and the same was to be repaid in seven annual instalments. In the year 2001-2002 there was a default on the part of the borrower in paying the instalments and hence on 02/01/2002 the Bank attached the tractor and trolley. This was pursuant to an order passed by the Recovery Officer. The borrower therefore filed a complaint before the Assistant Registrar, Co-operative Societies, Manora. The Recovery Officer thereafter on 24/12/2002 proposed to auction the said tractor and trolley. Such auction was held on 11/02/2003. It is the case of the borrower that this auction was in breach of provisions of Rule 107 of the Maharashtra Co-operative Societies Rules, 1961 (for short, the said Rules). The borrower therefore moved a revision application before the Divisional Joint Registrar, Co-operative Societies, Amravati under Section 154 of the Maharashtra Co-operative Societies Act, 1960 (for short, the said Act). The Divisional Joint Registrar by his order dated 29/04/2006 partly allowed the revision application and declared that the auction of the tractor and trolley held on 11/02/2003 was not in accordance with Rule 107 of the said Rules and therefore after setting aside the same, the proceedings were remanded to the Recovery Officer to take a fresh decision after hearing the parties.

2. The Bank challenged the aforesaid order in this Court by filing Writ Petition No.4245/2006. The learned Single Judge by his order dated 24/07/2007 confirmed the order of the revisional Authority after finding that the procedure laid down in Rule 107 of the said Rules had not been duly followed. While maintaining the order of remand it was directed that the auction purchaser could be joined in the proceedings after remand so as to grant him an opportunity of hearing. Letters Patent Appeal No.267/2007 preferred by the Bank was withdrawn by it on 22/10/2007.

After remand the Special Recovery Officer heard the parties and by the order dated 30/04/2008 held that the auction that was conducted on 11/02/2003 was in accordance with law and there was no need to re-open the same. The auction proceedings that were confirmed on 03/03/2003 were found to be proper. The borrower being aggrieved by the aforesaid order filed a revision application before the Divisional Joint Registrar, Co-operative Societies, Amravati. The revisional Authority found that though the tractor and trolley was seized on 02/01/2002, the auction had been held after a period of more than one year on 11/02/2003. The damage caused was on account of the delay in holding the auction was directed to be calculated by the special auditor and the amount determined was to be deposited in the account of the borrower. The amount of Rs.1,21,000/-which was received on 24/02/2003 towards proceeds of the auction was directed to be deposited in the account of the borrower and interest for the period from 24/02/2003 to 10/06/2008 at the rate of 9% per annum was directed to be credited in the account of the borrower. This order dated 18/07/2009 was made the subject matter of challenge by the borrower in Writ Petition No.5014/2009. The learned Single Judge by his judgment dated 11/02/2010 held that the order passed in Writ Petition No.4245/2006 dated 24/07/2007 had attained finality and therefore it was necessary to implement the same. The directions while remanding the proceedings had not been taken into account by the revisional Authority while passing the order dated 18/07/2