The rights of financial institutions to realize loans through public auction and the absence of specific restrictions on such sales in the relevant legal provisions.

N.N. Mathur, J.-This special appeal is directed against the order of the learned Single Judge dated 14.05.2002.

2. Briefly stated the facts of the case are that the respondent No. 1 Uka is a person belonging to Schedule Tribe. He took a loan from the Land Development Bank, Branch Raniwara by mortgaging

1.28 hectares of land in Khasra No. 339/378. As he failed to pay the loan, the Bank issued a demand notice on 11.1993 for the payment of Rs. 13,075/-, followed by another notice dated 27.07.1993. Still he failed to pay the same and, therefore, proclamations for the sale of mortgaged land were issued by the Bank. The land was put to auction on 19.03.1994. The second respondent namely Manoj Kumar purchased a land in auction for a consideration of Rs. 44,501/-. The land was redeemed from mortgaged and was entered in the name of respondent No. 2. The Tehsildar, Raniwara moved a reference application under Section 82 of the Rajasthan Land Revenue Act, 1956 to the Collector, Jalore on the ground that the land in question belonged to respondent No. 1, a person belonging from Scheduled Tribe, as such, his land could not have been sold in contravention of the provisions of Section 42(b) of the Rajasthan Tenancy Act, 1955 (hereinafter referred to as the Act of 1955). The Collector made a reference to the Board of Revenue by order dated 06.09.2000. The Board of Revenue dismissed the reference by order dated 24.01.2002. The State challenged the said order by way of writ petition. The learned Single Judge held that the object under Section 42 was to put an embargo by sale of Khatedar tenant of Scheduled Caste/Scheduled Tribe in favour of a person who is not a member of Scheduled Caste/Scheduled Tribe. No such embargo has been put with regard to open auction.

3. It is contended by the learned Additional Government Advocate that the Judgment of the learned Single Judge is in direct conflict with the Division Benchs Judgment of this Court in Asuram vs. Tehsildar, Sanchore, reported in AIR 2000 Rajasthan 345. It is held therein that Sub-section (4) of Section 14 of the Rajasthan Agricultural Credit Operations (Removal of Difficulties) Act, 1974 (hereinafter referred to as "the Act of 1974") restricts the sphere of transfer of land acquired by the Creditor Bank from the Debtors belonging to SC/ST category. However, keeping in view the basic scheme and the constitutional mandate which protracts the interests of weaker sections of the society particularly members of SC/ST and the provisions of the Rajasthan Tenancy Act, 1955, which puts restrictions on the alienation of interest of the members of SC/ST to the members of SC/ST alone so that the sources of such weaker sections remain within such community and it does not go out of them.

4. On the other hand, it is submitted by Mr. Vishnoi, learned Counsel for the respondents that Sub-section (1) of Section 43 of the Act of 1955 makes it clear that a Khatedar tenant may hypothecate or mortgage his interest in the whole or part of his holding for the purpose of obtaining loan from the State Government or Land Development Bank or a Co-operative Society or any Scheduled Bank or any other Institution notified by the State Government in that behalf . Thus, a Khatedar tenant belonging to Scheduled Caste or Scheduled Tribe can hypothecate or mortgage his holding in favour of Bank or Financial Institutions for the purpose of obtaining financial assistance and if the Khatedar tenant belonging to Scheduled Caste or Scheduled Tribe failed to repay the loan, the Bank or the Financial Institution has every right to realise the loan amount by putting the land in question for sale through public auction and can sale the property to the person belong to any other category. Learned Counsel has also invited our attention to provisions of Section 3 of the Act of 1974. It is submitted that as per Section 3 of the Act of 1974, an agriculturist can alienate land or his interest there in favour of a Bank for the pu