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HIGH COURT OF CHHATTISGARH
Ramesh Sinha, Ravindra Kumar Agrawal
Anup Kumar Shukla S/o Nand Kishore Shukla – Appellant
Versus
Joint Registrar Co-Operative In the office of the Registrar, Cooperative Societies, Chhattisgarh – Respondent
Judgment :
(Ravindra Kumar Agrawal, J.)
1. Present writ appeal has been filed by the appellant, who was the petitioner in writ petition, against the impugned order dated 25.10.2024 passed by the learned Single Judge in Writ Petition No.1326 of 2006, whereby the writ petition filed by the petitioner has been dismissed.
2. Brief Facts of the case as emerges from the pleadings of the parties in the writ petition are that the appellant/petitioner was owned 9.4 hectare (23 acres) of agricultural land, situated near Hathbandh Railway Station, at village Sitapar, Tehasil Simga, District Raipur CG with various Khasara numbers. To improve the agricultural fields and the activities, petitioner purchased a tractor after obtaining loan of Rs.3.25 lakhs from the District Cooperative Krishi evam Gramin Vikas Bank, Maryadit, Branch Simga (for short, ‘Cooperative Bank, Simga’) in the year 2000. Due to some unavoidable circumstances, the petitioner went under serious losses which resulted into inevitable defaults in repayment of loan amount and its installment.
3. By the time of sanctioning the loan in favour of the petitioner, he mortgaged his agricultural land of 9.4 hectare with the Bank. Market val
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Auction sales of mortgaged properties must comply with statutory requirements; failure to do so, especially under false pretense, allows for judicial intervention to set aside such sales.
The importance of proper valuation, fair auction, and maximum public participation in the auction process was emphasized by the court.
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The court affirmed the validity of a mortgage auction, emphasizing banks' rights over secured properties despite challenges from subsequent purchasers and procedural compliance in auction processes.
Confirmed auction sales cannot be set aside for alleged inadequacy of price or lack of publicity without proof of fraud or substantial injury.
The court established that compliance with procedural rules in auction sales is essential, and the burden of proof lies with those challenging the sale to demonstrate fraud or irregularity.
(1) Attachment and auction of property – No application to set aside a sale on grounds of irregularity or fraud can be entertained on any ground which applicant would have taken on or before date on ....
Mandatory compliance with procedural requirements under the SARFAESI Act is essential; failure to adhere prejudices borrowers' rights and invalidates auction proceedings.
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