SMT. KUSUM LATA Vs. DIVISIONAL COMMISSIONER

JUDGEMENT

(1.) Instant petition has been filed for setting aside impugned order passed by the Divisional Commissioner dated 26.2.2010, (Annexure P-5) , dismissing the application preferred by the petitioner under Secton 96 of the H.P. Land Revenue Act for setting aside the auction sale conducted by the Collector/Deputy Registrar, Cooperative Societies, Central Division, Mand (H.P.) for recovery of loan amount as arrears of land revenue and order dated 11.10.2010 (Annexure P-7) passed by Divisional Commissioner confirming the said auction sale under Section 97 of the H.P. Land Revenue Act in favour of highest bidder respondent No. 3.

(2.) Facts emerging from the record are that petitioner had raised a house loan of Rs. 4 lacs on 29.3.2000 from respondent No. 2 H.P. State Cooperative Bank (in short "Bank") . On default of making the repayment of loan, on 18.3.2003 matter was referred to Arbitrator under Section 73 of the H.P. Cooperative Societies Act 1968 for arbitration. The Arbitrator passed order dated 11.5.2004 directing petitioner to pay overdue amount of Rs.4, 97, 346/- on or before 31.5.2005 in 12 monthly equal installments of Rs.41, 320/- and in default therein, the bank was held to be entitled to realize the amount due as arrears of land revenue as per Section 87 of H.P. State Cooperative Societies Act from movable and immovable properties of the petitioner and the guarantor. There was default in compliance of order passed by the Arbitrator.

(3.) On 11.10.2004 Additional Registrar (Monitoring) exercising the power of Registrar, H.P. Cooperative Societies Act, forwarded the case to Deputy Registrar, Cooperative Societies Central Division Mandi designated as Collector, District Mandi for execution of order passed by the Arbitrator for recovery of amount due as arrears of land revenue. Whereupon, Collector issued proclaimation of sale, Annexure P-3, under Section 85 of the H.P. Land Revenue Act for sale of estate of the petitioner. In pursuance to proclaimation of sale, property of the petitioner was auctioned on 22.5.2009 and sold to respondent No. 3 for an amount of Rs.12.50 lacs who deposited auction sale consideration Rs.12.50 lacs with the concerned authority.