The importance of proper valuation, fair auction, and maximum public participation in the auction process was emphasized by the court.

JUDGMENT :

1. Heard Sri S.R. Shukla, learned counsel for the petitioners, Sri Shantanu holding brief of Ms. Ananttika Singh for respondent No.5 and the Standing counsel on behalf of respondent Nos. 1 to 4.

2. By means of the present writ petition, the petitioners have challenged the auction dated 3.3.2023 held by Sub Divisional Magistrate, Tehsil Dalmau, Raebareli on account of recovery of agricultural loan taken by late Sri Ram Shankar Shukla, the father of the petitioner No.s 1 to 5 and husband of petitioner No.6.

3. It has been submitted that late Ram Shankar Shukla had taken loan of Rs.31100/- in the year 1990-91 for agricultural purpose but could not repay the said loan installments within the prescribed time. He had taken further loan of Rs.32,000/-from Kshetriya Gramin Bank Ltd. Branch Ghurwara, District Raebareli i.e. opposite party No.6 and another loan of Rs.40,000/- from Uttar Pradesh Sahkari Gramya Vikas Bank, Branch Dalmau, District Raebareli and for the aforesaid loans he had mortgages his agricultural lands of gata No.s 433-KHa/0.115, 601-Ka/0.076, 611/1.00 and 925/0.526 hectares totaling to 1.717 hectares situated in Village Ranjitpur Lonari, Post Kathgar, Tehsil Dalmau, District Raebareli. Sri Ram Shankar Shukla died leaving behind his five sons and his widow who are the petitioners in the present writ petition. In the meantime, the respondent-bank initiated the recovery proceedings against the borrower and a recovery citation was also issued on 15.4.2002.

4. A writ petition bearing writ petition No.763 (M/S) of 2003 was filed before this Court which was disposed of by means of order dated 12.3.2003 directing petitioner No.1 to deposit a sum of Rs.20,000/- within a month and rest in three equal installments. It is not disputed that the petitioner No.1 could not comply with the said order of the Court and could not repay the amount as directed by the Court. It is in aforesaid circumstances that the mortgaged agricultural land was put to auction. The said auction was carried out and as no borrower had come forward to purchase the said property, the State had purchased the said property for Re.1/- and the auction was also confirmed by the order of the competent authority on 3.3.2003. It is after confirmation of the auction that the present writ petition was filed assailing the said auction.

5. In the counter affidavit filed by the state it has been stated that recovery certificate dated 7.2.2002 was issued for an amount of Rs.64,844/- by Khadi Gramoudyog, Rai Bareilly against the father of the petitioners. The recovery certificate was issued upon the defaulters personally, but they did not repay the said amount. Subsequently the land measuring area of 1.717 hectares was attached and several dates were fixed for the auction but the same could not be conducted.

6. It has further been stated that in the meanwhile the defaulter Sri Ram Shankar expired and his legal representatives despite being informed to repay the outstanding amount of loan did not repay and also did not participate in the auction proceedings conducted on 18/01/2003. On the said date no one appeared to participate in the said auction and hence the auction was done in favour of the State Government. The Sub Divisional Magistrate, Dalmau confirmed the auction in favour of the State Government.

7. During pendency of the aforesaid petition an affidavit was filed on behalf of the petitioners stating that they have deposited the total remaining amount of the outstanding loan to the respondent-bank and the respondent-bank, on the other hand, has given no dues certificate to the petitioner on 26.11.2019. No dues certificate has been issued by District Gramodyog Adhikari, Raebareli stating that the petitioner has re-payed a total amount of Rs.89,363/- towards all the outstanding loan taken by late Ram Shankar Shukla and no further outstanding remains on account of the said loan. In the application the petitioner has submitted that now that all the amount of loan h