Supreme Court - Daily Orders
Manish Gupta vs The State Of Uttar Pradesh on 25 April, 2019
Bench: Uday Umesh Lalit, Indu Malhotra
1
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 4389 OF 2019
(@ Special Leave Petition (C) No. 3292/2019)
Manish Gupta …Appellant
Versus
The State of Uttar Pradesh & Ors. …Respondents
O R D E R
Leave granted.
1 The present appeal arises out of auction proceedings conducted by the U.P. State Food and Essential Commodities Corporation against a recovery certificate issued to Respondent Nos. 5 and 6 for recovery of an amount of Rs.1,32,26,175/-. The auction sale of property being Khasra Plot No.1429 Ka, having an area of approx. 0.162 hectare owned by Respondent Nos. 5 and 6, was conducted on 28.03.2018. The appellant participated in the auction proceedings, and offered the highest bid of Rs.1,37,91,000/-. As per S.189 of the U.P. Revenue Code, 2006 the appellant was required to deposit 25% of the bid amount on the date of auction, which worked out to Rs.34,47,750/-. The Signature Not Verified appellant, however, deposited a sum of Rs. 21,00,000/- on the Digitally signed by ASHWANI KUMAR fall of the hammer, the balance of the 25% of the bid amount Date: 2019.05.08 16:42:02 IST Reason: i.e. Rs.13,47,750/- was deposited subsequently on 04.04.2018, as the revenue authorities of the Tehsil permitted the 2 appellant to do so, instead of taking recourse to S.189 which mandates that if 25% is not deposited forthwith, the property be put up for re-auction. Section 190 stipulates that the balance 75% amount was required to be deposited within 15 days from the date of sale failing which, the property shall be re-sold, and the deposited amount shall be forfeited to the State Government. The appellant did not comply with this requirement also. Meanwhile, Respondent Nos. 5 and 6 had filed objections against the auction sale dated 28.03.2018 before the Commissioner, Lucknow.
2 The District Magistrate vide Order dated 28.06.2018, cancelled the auction sale in favour of the appellant held on 28.03.2018.
The objections filed by Respondent Nos. 5 and 6 were dismissed by the Commissioner vide Order dated 25.07.2018 as having become infructuous.
3 The Appellant filed a Writ Petition before the Allahabad High Court challenging the Order dated 28.06.2018 passed by the District Magistrate, and the Order dated 25.07.2018 passed by the Commissioner. The High Court vide the Impugned Order dated 22.11.2018, directed Respondent Nos. 3 and 4 to refund the sum of Rs. 13,47,750/- to the Appellant, which had been paid in the second instalment towards balance of 25% of the bid amount. However, the High Court directed that the initial amount of Rs.21,00,000 deposited by the Appellant on the date of auction, shall stand forfeited to the State Government, on 3 account of his default.
4 The Corporation, thereafter, put up the property for re-auction in December, 2018. On 28.01.2019 the property was sold at a price of Rs.2,22,45,000/-. The entire sale consideration was deposited forthwith, and the auction sale stood concluded.
5 Since the Corporation was able to fetch a good price of over Rs. 2 crores, there was no loss caused to the State. In the peculiar facts of the present case, we direct that the Order dated 22.11.2018 passed by the High Court directing the forfeiture of the amount of Rs.21,00,000/- be set aside, and the amount be refunded to the present Appellant within a period of 8 weeks. The State Government may however retain the interest which had accrued on this amount for the period when it was lying deposited with it.
With these directions, the appeal is disposed of, with no order as to costs.
…………………………… J.
(UDAY UMESH LALIT) …………………………….
J.
(INDU MALHOTRA)
Dated: April 25, 2019
4
ITEM NO.25 COURT NO.8 SECTION XI
S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS
Petition(s) for Special Leave to Appeal (C) No(s). 3292/2019
(Arising out of impugned final judgment and order dated 22-11-2018 in MS No. 22846/2018 passed by the High Court Of Judicature At Allahabad, Lucknow Bench) MANISH GUPTA Petitioner(s) VERSUS THE STATE OF UTTAR PRADESH & ORS. Respondent(s) (FOR ADMISSION and I.R. and IA No.18389/2019-EXEMPTION FROM FILING O.T. ) Date : 25-04-2019 This petition was called on for hearing today. CORAM :
HON'BLE MR. JUSTICE UDAY UMESH LALIT HON'BLE MS. JUSTICE INDU MALHOTRA For Petitioner(s) Mr. Sanjay Jain, AOR For Respondent(s) Mrs. Nanita Sharma, AOR Mr. Vivek Sharma, Adv.
Mr. Harish N., Adv.
Mr. Bajrang Lal Jat, Adv.
UPON hearing the counsel the Court made the following O R D E R Leave granted.
The appeal is disposed of in terms of the signed order. Pending application(s), if any, stands disposed of accordingly.
(ASHWANI KUMAR) (RAJINDER KAUR)
COURT MASTER (SH) BRANCH OFFICER
(Signed order is placed on the file)