1

NON-REPORTABLE

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO(S). 5861 OF 2009

STATE OF PUNJAB & OTHERS

….APPELLANT(S)

VERSUS

MEHAR DIN

….RESPONDENT(S)

J U D G M E N T

Rastogi, J.

1.

The instant appeal arises from the judgment and order

passed by the Division Bench of the High Court of Punjab and

Haryana at Chandigarh dated 13^th August, 2008 setting aside the

order dated 24^th August, 2006 passed by the Financial

Commissioner Revenue, Patiala with a further direction to the

competent authority to confirm the auction sale and complete all

other formalities within three months.

2.

The facts in brief culled out from the record and relevant for

the purpose are that the sub-urban properties are to be disposed

of in terms of the procedure for sale by public auction, as provided

under Chapter III of the Punjab Package Deal Properties (Disposal)

Digitally signed by

NEETU KHAJURIA

Date: 2022.03.02

17:48:51 IST

Reason:

Signature Not Verified

2

Rules, 1976 (hereinafter referred to as “the Rules 1976”), framed

by the State Government in exercise of its power conferred under

Section 18 of the Punjab Package Deal Properties(Disposal) Act,

1976. Part III of Rules 1976 provides for transfer of urban

properties.

3.

The appellants being the custodian of the subject property

initiated the process of putting the property to public auction

through the notice published in Punjabi Tribune of 17^th May, 1993,

the extract of auction notice is reproduced as under:-

“Punjabi Tribune, Monday, 17 May 1993

AUCTION NOTICE

General public is informed that the following Sub Urban Land of

Tehsil Malerkotla will be auctioned at the time and place given below.

1/5th of the bid amount shall be given at the spot in cash. The

remaining conditions of the auction will be fold on the spot.

Town

:

Malerkotla

Place of Auction :

At the spot

Dated

:

04.06.93

Time

:

10:00 A.M

Khasra No.

:

Area

185//22/2

:

7-0

191

:

7-10

12/2min

:

3-12

169//23/3/1

:

4-17

Kitte

4

22-17

Total Kitte

4

22-17

Sd/-

Tehsildar Revenue-cum-M.O. Malerkotla”

3

4.

It has not been pleaded that the auction notice was given its

wide publicity and affixed at the conspicuous place in the locality

where the property is situated.

5.

The Tehsildar Sales, Malerkotla conducted public auction on

4^th June, 1993 and this fact is not disputed that only three bidders

had participated in the bidding process and bid of the respondent,

Mehar Din was the highest bid of Rs.3,90,000/-, which was

provisionally accepted by the Tehsildar. Pursuant thereto, 1/5^th

of the bid amount, i.e., Rs.78,000/- was deposited by the

respondent at the spot subject to its confirmation by the Sales

Commissioner in terms of the procedure for sale by public auction

provided under Rule 8(1)(h) of Chapter III of the Rules 1976.

6.

On perusal of records, the competent authority (Sales

Commissioner) was of the view that the public property has not

been put to proper publicity and the present bid is inadequate and

failed to record his satisfaction for confirmation of the bid and

accordingly the bid was cancelled by an order dated 2^nd July, 1993

with a further direction for re-auction and to be auctioned in his

presence with wide publication to fetch the maximum price.

7.

The order dated 2^nd July, 1993 became the subject matter of

challenge at the instance of the respondent in appeal before the

4

Chief Sales Commissioner, Sangrur, who after perusal of the

record, returned a finding that on the date of auction, i.e. 4^th June,

1993 conducted by the Tehsildar Sales, only three persons had

participated in the bidding process and arrived to a conclusion that

the Tehsildar Sales had not conducted the bidding process

properly and adequate publicity was not made and under it