JIGNESH NATWARLAL DHAMELIYA Vs. SNEHALKUMAR NARANBHAI RUPARELIYA

JUDGEMENT

(1.) These appeal arise out of a common judgment and order dtd. 4/8/2023 passed by the learned Single Judge in Special Civil Application Nos. 15060 of 2022 with Civil Application (For Vacating Interim Relief) No. 1 of 2022 with Special Civil Application No. 18857 of 2022 and hence, they have been heard together and are being decided by this common judgment.

(2.) Heard the learned counsel for the appellants and perused the record. The present appeals have been directed against the judgment and order dtd. 4/8/2023 passed by the learned Single Judge whereby the auction sale held in favour of appellant - Jignesh Natwarlal Dhameliya on 9/5/2022 was set aside being contrary to the Gujarat Co-operative Societies Rules, 1965 (hereinafter, referred to as "the Rules of 1965"). The learned Single Judge has returned the finding that once the auction sale was postponed, the bank was required to issue fresh auction notice inviting offers as per the prescribed procedure. It is also noted that auction, which was initially scheduled on 6/5/2022, was adjourned to 9/5/2022 without recording any reasons by the respondent No. 4 - bank (in LPA Nos. 1177 and 1178 of 2023). The provisions contained in Rules 119 and 120 of the Rules of 1965 have been noted by the learned Single Judge to note the procedure of sale by auction.

(3.) It is argued by the learned counsel for the appellants (in LPA Nos. 1177 and 1178 of 2023) that the learned Single Judge has erred in law in setting aside the auction holding that a fresh auction sale was required to be conducted for the reason that the sale which was scheduled on 6/5/2022, was rescheduled for 9/5/2022, and thus, held within a period 7 days from the scheduled date of auction in the sale proclamation which was published on 5/4/2022. All the bidders who participated in the auction held on 9/5/2022 had submitted their 10% of the EMD amount and necessary papers on 5/5/2022, one day prior to the scheduled date of auction, which was 6/5/2022 initially. It is submitted that in the sale proclamation dtd. 5/4/2022, it was clarified that the bidders were required to submit their papers and 10% of the EMD amount one day prior to the date of auction, to seek consideration of their bid in the public auction. The submission is that, the original petitioner / respondent herein did not submit his bid on or before 5/5/2022 and therefore, their disqualification on the date of auction i.e. 9/5/2022, cannot be said to be illegal. Reliance is placed on the decision of the Apex Court in Deendayal Nagari Sahakari Bank Limited and Another v. Munjaji and Others with Ratnakar S/o. Manikrao Gutte v. Munjaji and Others, (2022) 7 SCC 594, to submit that in pari materia provisions of Rule 107 of the Maharashtra Co-operative Societies Rules, 1961, the Apex Court has held that once the auction sale was postponed for the reasons beyond the control of the competent authority, there was no requirement of issuance of fresh sale proclamation.