IMPORTANT POINT
The power of the Collector for setting aside the sale under Section 54 of the R.R. Act is not limited to the grounds set forth in section 53, and gross inadequacy of sale price is a ground for setting aside the sale.

ORDER :

C.Pratheep Kumar, J.

1. The appellant participated in the auction conducted by the 3rd respondent on 9.4.2007 and purchased the property comprised in Sy.No.258/1 of Pallippuram Village for a total sum of Rs.15,20,000/-. He had remitted the entire sale consideration and applied for confirmation of the sale. However, no sale certificate was issued in his favour, in spite of the fact that nobody applied for setting aside the sale. As per Ext.A1 order, the Collector set aside the sale by invoking the power under Section 54 of the Kerala Revenue Recovery Act, 1968 (in short the R.R.Act), on the grounds that the solvency certificate given to the said land was Rs.32,00,000/- while the sale proceeds was only Rs.15,20,000/-, which is not a justifiable amount and also that the auction bidder is the close relative of the defaulter. The revision filed by him before the 4th respondent was dismissed as per Ext.P6 order. Writ Petition No.5641/2011 filed against Ext.P6 order has also ended in dismissal. It was in the above context that he preferred this appeal raising various grounds. The main ground raised by the appellant is that inadequacy of sale price is not a ground for setting aside the sale under the proviso to Section 54 of the R.R.Act.

2. When this appeal came up for hearing before a Division Bench of this Court, the learned counsel appearing for the appellant brought to the notice of the Division Bench two conflicting decisions of two Division Benches of this Court in Subaida Sulaiman v. Hamsa, 1991 KHC 365, and Reetha Wilson v. State of Kerala and Others, 2020 (4) KHC 411, with regard to the powers of District Collector under Section 54 of the R.R. Act. The Division Bench also found some conflict in the above decisions and decided to refer the matter to a larger Bench. Accordingly, the matter was placed before the Hon'ble the Chief Justice who in turn constituted this Full Bench to resolve the issue involved in the matter. Now the points that arise for consideration before us are the following :

(i) What are the powers of the District Collector under Section 54 of the R.R. Act ?

(ii) Whether the power under section 54 of R.R.Act is limited to the grounds enumerated in section 53 alone?

(iii) Whether inadequacy of the price fetched at the sale is a sufficient ground to set aside the sale under Section 54 of the R.R.Act?

(iv) Whether there is automatic confirmation of sale on the expiry of 30 days ?

(v) Whether notice is to be given to the purchaser before setting aside the sale under Section 54 ?

(vi) Whether sale can be set aside under Section 54 after the confirmation of sale ?

3. We have heard the learned counsel for the appellant and the learned Special Government Pleader.

4. Considering the complexity and importance of the issue involved, we have sought the assistance of Adv.Syamkumar V.M., who was appointed as Amicus Curiae. He had also argued in detail the provisions of the R.R.Act, and especially the scope and ambit of Section 54 therein.

5. In order to properly evaluate the scope and ambit of Section 54 of the R.R. Act it is worthwhile to read Section 52, 53 and 54 of the R.R. Act, which are extracted hereunder :-

“52. Application to set aside sale of immovable property on deposit.- (1) Any person owning or claiming an interest in immovable property sold under this Act may, at any time within thirty days from the date of the sale, deposit in the treasury of the taluk in which the immovable property is situate or if there be no treasury in the taluk, in the nearest treasury –

(a) a sum equal to five per cent of the purchase money ; and

(b) a sum equal to the arrears of public revenue due on land for which the immovable property was sold together with interest thereon and cost of process; and may apply to the Collector to set aside the sale.

(2) If such deposit and application are made within thirty days from the date of the sale, the Collector shall pass an order setting aside the sale, and shall repay to the purchaser the purchas