MARIYAM EDUCATIONAL & WELFARE SOCIETY Vs. COLLECTOR, NAINITAL

JUDGEMENT

(1.) Present petition is filed assailing the judgment and order dated 05.06.2014 passed by Collector, Nainital whereby property purchased by the petitioner in auction sale was held to be in violation of Section 154 of the U.P. Zamindari Abolition and Land Reforms Act, 1950 (for short "the Act") and was directed to be vested in the State Government under Section 167 of the Act.

(2.) Brief facts of the present case, inter alia, are that M/s Ram Gopal Auto Private Limited took a term loan of Rs. 63.50 Lakh from Pradeshiya Industrial & Investment Corporation, Uttar Pradesh (hereafter referred to as "PICUP") by mortgaging entire industrial unit situated on Khasra Nos. 39 Kha and 40 Kha, village Narsingh Malla, Kamluwaganja, Tehsil Haldwani, District Nainital; borrower M/s Ram Gopal Auto Private Limited failed to repay the entire outstanding amount of the term loan along with interest, therefore, entire industrial unit was taken into possession by PICUP exercising powers under Section 29 of the State Financial Corporations Act; entire industrial unit was put to auction sale wherein petitioner was held to be the highest bidder; sale deed was executed in favour of the auction purchaser / petitioner, herein, by PICUP on 04.09.2009; vide impugned judgment and order dated 05.06.2014 passed by Collector, Nainital, sale deed dated 04.07.2009 executed by PICUP in favour of auction purchaser / petitioner, herein, was held in violation of Section 154 of the Act and property was directed to be vested in the State Government under Section 167 of the Act. Feeling aggrieved, petitioner has filed present petition.

(3.) Since all the facts are undisputed and question of law only is involved As to whether sale deed, in question, can be held to be in violation of Section 154 of the Act and property can be directed to be vested in State Government under Section 167 of the Act, therefore, with the consent of learned counsel for the parties, present petition is disposed of today itself at the initial stage.