SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2023 Supreme(MP) 965

IN THE HIGH COURT OF MADHYA PRADESH
Subodh Abhyankar, J.
In Ref. Maheshwari Proteins Ltd. – Petitioner
Versus
Recd. From Bifr New Delhi - Respondent
COMP No. 2 of 2001
Decided On : 16-08-2023

Advocates:
Advocate Appeared:
For the Petitioner: Vishal Lashkari
For the Respondent: D. S. Panwar Vaibhav Bhagwat, H. Y. Mehta

Headnote:(A) Companies Act, 1956 - Section 456 - Possession of property - The applicants had been in possession of the property for over 50 years, and the auction purchaser could not unlawfully dispossess them without due process of law. The court emphasized that prior possession should be respected and quashed the dispossession order. (Paras 2, 3, 15)

(B) Auction Sale - Nature of possession - The auction purchaser was aware of the existing possession during the sale and cannot claim possession without following lawful procedures, as established in the case of Mahendra Mahato. (Paras 6, 14)

Facts of the case:
The applicants contended long-term possession of land against an auction purchaser, referring to a 2017 auction that approved the sale of the disputed land. The SDO initiated dispossession proceedings at the request of the auction purchaser in 2022.

Findings of Court:
The court found that possession cannot be forcibly taken without lawful measures and that previous possession must be protected, quashing the order of dispossession.

Issues: The main issues involved the lawful process required for dispossession and the validity of the auction purchased under contest given the applicants' prior possession.

Ratio Decidendi: The court reiterated that rights of prior possessors must be recognized, and the auction purchaser’s awareness of existing possession implies that legal processes must be adhered to before dispossession.

Result: The application stands partly allowed, with the direction that the applicants cannot be dispossessed except according to law.

Table of Content
1. unlawfulness of the proceedings initiated against applicants. (Para 2 , 3)
2. confirmation of auction and sale in favor of m/s saad trading company. (Para 4 , 5)
3. arguments against the eviction based on possession. (Para 6 , 7 , 9)
4. court's analysis of legal provisions regarding possession. (Para 11 , 12 , 13)
5. direction on dispossession and eviction procedures. (Para 15 , 16)

JUDGMENT :

Subodh Abhyankar, J.

Heard on I.A. No. 3058/2022.

2. This application has been filed by the applicants herein seeking the following reliefs :—

(i) Declaration that the proceeding initiated by the Sub-Divisional Officer, City Ratlam, District Ratlam (M.P) upon the application filed by non-applicant No. 6 M/s Saad Trading Company Indore dated 15-3-2022 is unlawful and beyond the scope and jurisdiction of non-applicants No. 2 to 5;

(ii) Issuing the appropriate injunction/ direction/ order for quashing/setting aside the proceeding initiated by Sub-Divisional Officer, City Ratlam, District Ratlam (M.P) against applicants No. 1 to 4 upon application dated 15-3-2022 filed by M/s Saad Trading Company for recovery of actual physical possession from the applicants No. 1 to 4;

(iii) Issuing direction/order passed for quashing the order passed by the Tehsildar for formulating the team for recovery of actual physical possession from the applicants No. 1 to 4 and Panchnama prepared by Revenue Authorities dated 28-3-2022;

(iv) Granting permission for filing the appropriate Civil Suit for declaration and permanent and mandatory injunction against non-applicant No. 1 to 6 against forcible dispossession of applicants No. 1 to 4. (v) all other remedies which are appropriate on the facts and in the grounds urged.”

3. The grievance of the applicants is that they are in possession of the land in question since more than 50 years and have also constructed around four rooms. The aforesaid property of the applicants has been directed to be vacated at the instance of Tehsildar as the Tehsildar, vide its order (undated) has formed a team for dispossessing the applicants from the land in question.

4. In brief, the facts of the case are that in the present company petition No. 2/2001, which has been filed for liquidation of M/s Maheshwari Proteins Ltd., the auction of the disputed land has been confirmed by this Court vide its order dated 25-7-2017, passed in OLR No. 44/2017 wherein, this Court has held as under :—

“Having regard to the aforesaid circumstances of the case, the bid of M/s Saad Trading Company for Rs. 7 Lakhs in respect of Lot No. 1 is approved and accepted. The sale in favour of the aforesaid bidder for Lot No. 1 is confirmed subject to deposit of the balance consideration amount within a period of 30 days from today. On deposit of the balance consideration amount, the OL is permitted to execute the sale deed in respect of the assets/properties of Lot No. 1 in favour of M/s Saad Trading Company and handover the possession of those assets.”

5. Pursuant to the aforesaid order, the auction purchaser deposited the amount on 21-8-2017, and the sale deed was also executed. Subsequently, the Official Liquidator also wrote to the Collector, Ratlam on 9-3-2020, to ensure possession of the property to the auction purchaser.

6. Shri Vishal Lashkari, learned counsel for the applicants has submitted that the aforesaid procedure adopted by the Official Liquidator as also the auction purchaser runs contrary to law as the applicants are in long possession of the property and cannot be evicted at the instance of Tehsildar specially when even in the auction notice dated 19-4-2017, the property was sold on as is where is basis and thereafter its symbolic possession was taken on 10-3-2022, specifically mentioning “as is where is possession and whatsoever there is basis”. Thus, it is submitted that the auction purchaser was well aware of the applicants’ possession on the property and had purchased the property on the aforesaid terms only hence, in such circumstances,

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top