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1999 Supreme(Ker) 173

Judges : A.R.LAKSHMANAN,S.SANKARASUBBAN
Captain - Appellant
Versus
District Collector - Respondent
Case No : W.A.No.1569 of 1996
Decided On : 05/25/1999
Advocates Appeared :
O. Ramachandran Nambiar For Appellant Government Pleader (P.K. Ravikrishnan) For Respondent

The main legal point established in the judgment is that the procedure adopted by the respondents in setting aside the revenue sale without notice to the auction purchaser was illegal, as it contravened the provisions of Ss.53 and 54 of the Revenue Recovery Act, 1968, and the appellant should be afforded an opportunity before setting aside the sale.

Headnote:

Revenue Sale - Quashing of Sale and Mandamus for Confirmation - Ss.53 and 54 of the Revenue Recovery Act, 1968 - Summary: The court considered the provisions of Ss.53 and 54 of the Revenue Recovery Act, 1968, which govern the setting aside of revenue sales. It held that the procedure adopted by the respondents in setting aside the revenue sale without notice to the auction purchaser was illegal. The court set aside the orders and remitted the matter for fresh considerations by the respondents, with directions to afford the appellant an opportunity and pass appropriate orders in accordance with the law.

Fact of the Case:

The appellant, the successful bidder in a sale, filed a petition to quash an order setting aside the sale and for a mandamus directing the respondents to confirm the sale and issue a sale certificate. The appellant argued that he was entitled to the sale confirmation and certificate, as he had deposited the bid amount and was the highest bidder.

Finding of the Court:

The court found that the procedure adopted by the respondents in setting aside the revenue sale without notice to the auction purchaser was illegal. It set aside the orders and remitted the matter for fresh considerations by the respondents, with directions to afford the appellant an opportunity and pass appropriate orders in accordance with the law.

Issues: The issues included the entitlement of the appellant to the sale confirmation and certificate, the legality of setting aside the sale without notice to the auction purchaser, and the applicability of Ss.53 and 54 of the Revenue Recovery Act, 1968.

Ratio Decidendi: The court held that the procedure adopted by the respondents in setting aside the revenue sale without notice to the auction purchaser was illegal, as it contravened the provisions of Ss.53 and 54 of the Revenue Recovery Act, 1968. It emphasized the quasi-judicial nature of S.53 proceedings and the requirement to afford the appellant an opportunity before setting aside the sale.

Final Decision: The Writ Appeal was allowed, and the court set aside the orders and remitted the matter for fresh considerations by the respondents, with directions to afford the appellant an opportunity and pass appropriate orders in accordance with the law. The appellant was reserved the liberty to raise the contention of the period of limitation provided under S.53 and 54 of the Act before the respondents.

Judgment :-

A.R. Lakshmanan, Ag. CJ.

The unsuccessful petitioner in O.P. 13768 of 1996 is the appellant herein. The Original Petition was tiled to quash Ext. P.5 and for a mandamus directing the respondents to confirm the sale conducted on 23.9.1994 and direct the third respondent to measure the property and put in possession of the property to the petitioner. A further prayer to declare that the Order No. 6714/94/M dated 30.3.1995 issued by the second respondent and Ext. P5 dated 5.7.1996 are null and void was also sought for.

2. Appellant is the successful bidder in the sale conducted on 23.9.1994. He has deposited the entire bid amount of Rs. 10.868/- as per the instructions of the third respondent in respect of 13 cents of wet land (paddy field) in Sy. No. 635/2 of Chowara village. Since the sale certificate was not issued, the appellant made Exts. P3 and P4 representations to respondents 1 and 2 respectively for issuance of sale certificate to which he is entitled. However, the sale certificate was not issued to him. But, he was served with Ext. P5 order dated 5.7.1996 stating that on the basis of an order dated 30.3.1995, the sale has been set aside since the bid amount was too low. It is stated that only on receipt of Ext. P5 order the appellant came to know about the order dated 30.3.1995 of the second respondent. Immediately he applied for a copy of the same, obtained it and produced the same before this Court as Ext. P6 along with CMP 25857 of 1996. According to the appellant, he is entitled to get the sale confirmed and also for a sale certificate issued in his favour. Since the same were not issued, he approached this Court by filing the above Original Petition praying to quash Ext. P5 and also to declare that Ext. P6 is illegal and void and for other consequential reliefs.

3. Before the learned single judge, it was contended that since the appellant is the highest bidder in the auction conducted on 23.9.1994, respondents are duty bound to confirm the auction in his favour. It was also argued that there was no objection tiled by anyone to set aside the sale and that before conducting a re-auction, no notice was issued to him. It was also contended before the learned judge that inadequacy of sale price is not a ground to set aside the sale. The learned judge was of the view that since the auction was not confirmed in favour of the appellant, there was no necessity of giving any notice to the petitioner to show cause why a re-auction be not conducted. The learned judge has further held that since the decision of the Sub Collector has already been communicated to the appellant-petitioner by the Tahsildar which is evident from Ext. P6, there is sufficient notice to him that the auction in his favour has not been confirmed. Aggrieved against the said judgment, the petitioner has preferred the Writ Appeal.

4. Though several contentions have been raised, there is no need to go into all the submissions for the simple reason that Ext. P6 order was passed against the appellant without affording any opportunity. There is no indication in the order in Ext. P6 that any notice was issued to the appellant before the said order was passed. Our attention was drawn to Ss.53 and 54 of the Revenue Recovery Act, 1968. S.53 says that an application may be made to the Collector to set aside the sale on the ground of some material irregularity or mistake or fraud in publishing or conducting the sale at any time within thirty days from the date of the sale of immovable property. The Section further provides that no sale shall be set aside on the ground of any such irregularity or mistake unless the applicant proves to the satisfaction of the Collector that he has sustained substantial injury by reason thereof. S.54 also provides that the Collector shall make an order confirming the sale on the expiry of 30 days from the date of sale, if no application to set aside the sale is made under S.52 or 53. The proviso to S.54 says that if the Collecto


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