West Chalakudy Service Co-Operative Bank Ltd. – Appellant
Versus
Special Sale Officer West Chalakudy Service Co-Operative Bank Group – Respondent
JUDGMENT :
N. NAGARESH, J.
The West Chalakudy Service Co-operative Bank Limited has filed this writ petition seeking to quash Ext.P14 and to direct the 3rd respondent-Joint Registrar to issue sale confirmation of the auction conducted pursuant to Exts.P3 and P4 Awards, as discernible from Exts.P5 to P7 documents.
2. The petitioner is a Co-operative Society functioning under the provisions of the Kerala Co-operative Societies Act, 1969. The petitioner is a Primary Agricultural Credit Society. One Smt.Sheela, a member of the Society, availed a credit facility of Rs.8,00,000/-. Her husband, Sri.Rajan, stood as guarantor. The loan was availed in the month of March, 2014, mortgaging five cents of property of Sri.Rajan. The said Rajan also availed a credit facility of Rs.15 lakhs, pledging the same property. When the borrowers failed to repay the loan amount, the petitioner preferred Arbitration Cases. The Arbitration Court passed Exts.P3 and P4 Awards in ARC Nos. 2431 and 2440 of 2017.
3. The petitioner thereafter initiated Execution Proceedings. The property was put to sale. The property was purchased by the petitioner-Society in public auction, for an amount of Rs.51,23,140/-. The peti
The Joint Registrar cannot require a No Objection Certificate for confirming a sale under the Kerala Co-operative Societies Act, as it is not mandated by law.
Auction sale of mortgaged asset – After confirmation of sale, Registrar is duty bound to grant Certificate of Sale bearing his seal and signature.
A sale officer may proceed to sell a defaulter's properties other than mortgaged property in applying for debt recovery if suitable under the cooperative society's regulations.
A fraudulent gift deed executed after the initiation of surcharge proceedings is invalid, and subsequent transactions cannot confer title, as they occur during pending enforcement actions.
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.
The court upheld the principle that prior mortgage rights prevail over subsequent attachments of property, maintaining the validity of sales conducted before said attachments.
Sale of property under mortgage invalid when prior encumbrances are ignored, highlighting the need for equitable operations in financial transactions.
Authority under Section 70 enables the Additional Registrar to cancel improper allotments and registered sale deeds within cooperative societies, reinforcing adherence to bylaws and judicial oversigh....
An application under Rule 52 (13) (i) of the Andhra Pradesh Cooperative Societies Rules, 1964, to set aside a sale of mortgaged property must be filed within 30 days from the date of sale. Failure to....
Court affirmed the validity of sales under execution, emphasizing the importance of timely objections and statutory adherence in contesting such actions.
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