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SUNITA AGARWAL, ANIRUDDHA P. MAYEE
Jignesh Natwarlal Dhameliya – Appellant
Versus
Snehalkumar Naranbhai Rupareliya – Respondent
JUDGMENT :
(PER : HONOURABLE THE CHIEF JUSTICE MRS. JUSTICE SUNITA AGARWAL)
1. These appeal arise out of a common judgment and order dated 4.08.2023 passed by the learned Single Judge in Special Civil Application Nos. 15060 of 2022 with Civil Application (For Vacating Interim Relief) No. 1 of 2022 with Special Civil Application No. 18857 of 2022 and hence, they have been heard together and are being decided by this common judgment.
2. Heard the learned counsel for the appellants and perused the record. The present appeals have been directed against the judgment and order dated 04.08.2023 passed by the learned Single Judge whereby the auction sale held in favour of appellant - Jignesh Natwarlal Dhameliya on 09.05.2022 was set aside being contrary to the GUJARAT CO-OPERATIVE SOCIETIES RULES , 1965 (hereinafter, referred to as “the Rules of 1965”). The learned Single Judge has returned the finding that once the auction sale was postponed, the bank was required to issue fresh auction notice inviting offers as per the prescribed procedure. It is also noted that auction, which was initially scheduled on 06.05.2022, was adjourned to 09.05.2022 without recording any reasons by the responden
Procedural adherence in auction sales is critical; failure to follow statutory requirements results in invalidation of the sale.
Non-compliance with the requirement to deposit the remainder of the purchase money within the specified time renders the auction sale a nullity.
The borrower failed to apply to the Recovery Officer to set aside the auction sale on the grounds of material irregularity, mistake or fraud in publishing or conducting it within a period of thirty d....
Confirmed auction sales cannot be set aside for alleged inadequacy of price or lack of publicity without proof of fraud or substantial injury.
Mandatory conditions for auction sales under the Maharashtra Co-operative Societies Act cannot be waived; violation results in nullity of the sale and requires fresh proceedings.
Auction sales conducted under the Recovery of Debts Due to Banks and Financial Institutions Act must not be disturbed without substantial evidence of irregularity; procedural compliance is paramount.
The main legal point established is that an auction sale can be set aside if there are substantial irregularities and fraud, and the application to set aside the sale was filed within the limitation ....
Procedural compliance in auction sales is mandatory, and non-compliance renders such sales void.
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