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IN THE HIGH COURT OF MADHYA PRADESH AT INDORE
SUBODH ABHYANKAR
Bindu – Appellant
Versus
Indore Paraspar Sahakari Bank Limited – Respondent
ORDER :
1. This petition has been filed by the petitioners under Article 226 of the Constitution of India, seeking the following reliefs:-
“7. I) To allow this petition by issuing an appropriate Writ, Direction or order.
II) To quash the impugned order of auction dated 17.06.2017, issued by respondent no.2 Revenue Board, by writ of certiorari or any other writ.
III) To direct the respondent to compensate the petitioners by giving the amount of the aforesaid building as market value after deducting the loan amount. The market value of the aforesaid building is more than one crore rupees and after deducting the loan amount the petitioner still have right to take and respondent no.1 is liable to pay the amount more than fifty lakhs rupees to the petitioners.
IV] To direct the respondents to give compensation for mental harassment for petitioner and his family.
V] To pass such orders, Writ or direction in favour of the plaintiff, as the Hon’ble Court may deem fit in the interest of justice.
VI] To direct the respondents to revert back the household articles of the petitioners.”
2. The petitioners are aggrieved by the order dated 17.06.2017 (Annexure P/25), passed by the Board of Revenue, Indor
The court affirmed that failure to comply with prior court orders and the finality of executed sale deeds limit the ability to contest auction proceedings under the Land Revenue Code.
Confirmed auction sales cannot be set aside for alleged inadequacy of price or lack of publicity without proof of fraud or substantial injury.
The auction sale was declared illegal due to non-compliance with mandatory notice requirements, emphasizing the necessity of adhering to statutory procedures in public auctions.
The court established that adherence to statutory processes for property sale was observed, and petitioners failed to pursue available legal remedies, justifying dismissal.
Auction sales of mortgaged properties must comply with statutory requirements; failure to do so, especially under false pretense, allows for judicial intervention to set aside such sales.
Non-compliance with the requirement to deposit the remainder of the purchase money within the specified time renders the auction sale a nullity.
The court emphasized that auction sales must adhere to statutory requirements and principles of natural justice, ruling that collusion invalidates the auction process.
Ownership of immovable property requires a registered sale deed; an unregistered agreement to sell does not confer any title or interest.
Mandatory conditions for auction sales under the Maharashtra Co-operative Societies Act cannot be waived; violation results in nullity of the sale and requires fresh proceedings.
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