SETH HIRA LAL Vs. STATE OF UTTAR PRADESH

JUDGEMENT

(1.) (for self and for. R. C. Srivastava, J.) :-These are two petitions which raise common questions of fact and law. We consider it necessary to dispose both these petitions by a common order.

(2.) SETH Banarasi Dass was the owner of 94,320 equity shares having face value of Rs. 10/- each and 2260 preference shares of the face value of Rs. 100/-each in Messers Jaswant Sugar Mills Limited, Meerut. SETH Banarasi Dass was in arrears of taxes and other dues, a certificate for recovery of the amount due was issued against him. The Collector, Meerut took steps to recover an amount of Rs, 61,48,624.21 as arrears of land revenue from SETH Banarasi Dass. The Collector attached the aforesaid equity and preference shares held by SETH Banarasi Dass and issued sale proclamation for the sale of the said shares and appointed the Sub-Divisional Officer of Meerut as the Sale Officer. Several dates were fixed for the sale of the shares but inspite of due publicity through news papers nobody turned up to purchase the shares. Ultimately the Sale Officer fixed 2nd January, 1974 for the auction sale of the shares. The time, date and place fixed for the sale was duly publicised. The auction sale was conducted by the Sub-Divisional Officer, Meerut on 2-1-1974 and a number of persons participated in the bid. SETH Hira Lal and Shiv Raj Gupta who made bits jointly were the highest . bidders, the amount of their bid was Rs. 2,90,000/-. The Sale Officer accepted their bid and finalised the sale in their favour. SETH Hira Lal and Shiv Raj Gupta desposited a sum of Rs. 75,000/- on 2-1-1974 and a receipt was issued to them which was signed by the Officer concerned. The highest bidders deposited the remaining amount in the sub-treasury of Meerut Tahsil on 7-1-1974 after obtaining the order of the Sale Officer and a receipt was issued to them. SETH Banarasi Dass made an application to the Collector on 11-1-1974 raising objections against the auction sale with a prayer that the auction sale held on 2-1-1974 be set aside. The Collector after obtaining opinion from the District Government Counsel (Civil) set aside the auction sale by his order dated 16th January, 1974 and directed the Sub-Divisional Officer to hold the auction sale afresh. SETH Hira Lal and Shiv Raj Gupta thereupon filed writ petition No. 879 of 1974 ohallenging the order of the Collector dated 16th January, 1974. Under the interim order of this Court impugned order of the Collector was stayed.

(3.) THE provisions contained in Rule 77 of the CPC make it amply clear that if the price is paid at the time of sale or afterwards with the permission of the Officer holding the sale and a receipt is issued to the auction purchaser the sale shall become absolute No order of any other authority is necessary for confirming the sale in case of moveable property. THE Officer conducting the sale is empowered to grant time to the purchaser to desposit the purchase-money within the specified period. In default of payment the property shall be resold but if the purchaser deposits the purchase-money and a receipt is issued to him, the sale would become absolute and no further order or step would be necessary to be taken. In Lokman Chhabilal Jain Bani v. Motilal Tulsiram Agarwal, AIR 1939 Nagpur 269 a Division Bench interpreted Order 21 Rule 77 of the CPC and held that :-