PERICHERLA BULLI SUBBARAJU Vs. MOLLA AMIN SAHEB

JUDGEMENT

(1.) In O.S. No. 3 of 1964, the Subordinate Judge, Amalapuram, appointed a Receiver to hold a public auction of the leasehold interest in the property described in Schedule-A of the plaint. At the auction held by the Receivver on 26th October, 1969, the petitioner became the highest bidder. The conditions of the sale notified to the bidders show that the sale was held subject to the approval of the Court. As the petitioner's bid was the highest, the Receiver accepted the bid amount from him and passed a receipt, wherein it was recited that the amount was paid subject to confirmation of the sale by the Court. On the 27th October, 1969 the Receiver filed a memo in Court setting out the above facts.

(2.) On the 7th of November, 1969, a cyclone of an unprecedented nature swept over the district resulting in great damage to coconut gardens. In view of this natural disaster, the petitioner thought that he could not in his interest allow his bid to stand. A few days after the cyclone, he purported to withdraw his bid and intimated the fact to the Court. No counter was filed on behalf of the parties to the suit, but it was contended on their behalf that the Receiver was duly empowered to conduct the auction and no question of confirmation of sale by the Court arose. It was accordingly contended that the lease agreement had become final and was not liable to be cancelled.

(3.) In the order appointing the Receiver, no specific limitation was placed on his powers to lease out the property. But, as mentioned already, the Receiver made it quite clear while conducting the sale that he purported to act only subject to the bid being confirmed by the Court.