PRAVESH KUMAR SACHDEVA versus STATE OF UTTAR PRADESH & ORS.

Citation: [2018] 11 S.C.R. 504 · Decided: 13-09-2018 · Supreme Court of India · Bench: MADAN B. LOKUR · Disposal: Appeal(s) allowed
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Judgment (excerpt)

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504
SUPREME COURT REPORTS
[2018] 11 S.C.R.
PRAVESH KUMAR SACHDEVA
v.
STATE OF UTTAR PRADESH & ORS.
(Civil Appeal No. 9836 of 2014)
SEPTEMBER 13, 2018
[MADAN B. LOKUR, S.  ABDUL  NAZEER AND
DEEPAK GUPTA, JJ.]
Auction: Auction sale – Waiver of rights – On facts, confirmed
auction sale of land belonging to private respondents – Set aside
by the High Court despite there being no objections to it –
Justification of – Held: Not justified – Private respondents through
their conduct, in failing to file objections to the auction sale and
making an application and accepting the excess amount recovered
from the auction sale, waived off their rights in respect of the auction
sale and acquiesced in the auction sale – They are estopped through
their conduct from challenging the auction sale in any manner
whatsoever – Conduct of all the private respondents is a clear
indication of their acceptance of the validity of the auction sale
and they had no objections to the auction sale – High Court erred
in ignoring the basic and primary fact on record – It erred in setting
aside the auction of the land belonging to the private respondents
and thereby prejudicing the rights of the appellants, highest bidder
of the auction sale – Order passed by the High Court is set aside.
Waman Shriniwas Kini v. Ratilal Bhagwandas & Co.
[1959] 2 Suppl. SCR 217 ; Municipal Corporation of
Greater Bombay v. Dr Hakimwadi Tenants’ Association
(1988) Suppl. SCC 55 : [1988] 2 SCR 21 ; P. Dasa
Muni Reddy v. P. Appa Rao (1974) 2 SCC 725
– referred to.
Case Law Reference
[1959] 2 Suppl. SCR 217
  referred to
Para 21
[1988] 2 SCR 21
  referred to
Para 22
(1974) 2 SCC 725
  referred to
Para 23
[2018] 11 S.C.R. 504
504
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505
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 9836
of 2014.
From the Judgment and Order dated  23.03.2006 of the High
Court of Judicature at Allahabad in Civil Misc. Writ Petition No. 76863
of 2005
WITH
Civil Appeal Nos. 9838 &  9837 of 2014  and Civil Appeal No.9524
of 2018.
Ajay Kumar Mishra, AAG, V. Shekhar, Guru Krishna Kumar,
Sr. Advs., A. Subba Rao, Annam D. N. Rao, Rajesh Sharma, Sudipto
Sircar, Annam Venkatesh, Rahul Mishra, Bharat Singh, Umesh Prasad,
Amit Pawan, Abhijat P. Medh,  S. S. Kushrostha, Ms. Shashi Kiran,
Satish Chandra, Arjun Sain, Manoj Jain, Sarim Naved, Ms. Anitha Shenoy,
Ms. Shakshi Kakkar, Ms. Swarupama Chaturvedi, Amit Sharma,
M. P. Shorawala, T. Mahipal, Advs. for the appearing parties.
The Judgment of the Court was delivered by
MADAN B. LOKUR, J. 1. Leave granted in S.L.P.(C) No.21229
of 2007.
2. A narrow question arises for consideration in these appeals,
namely, whether the Allahabad High Court was right in setting aside a
confirmed auction sale despite there being no objection to it. In our opinion,
the High Court was in error in setting aside the auction of the land belonging
to the private respondents (Alok Mitra, Ashok Mitra, Deepak Mitra,
Manmohan Mitra and Madhurima Ghosh) and thereby prejudicing the
rights of the appellants.
3. The private respondents were having businesses under the name
and style of Mitra Prakashan Ltd. and Maya Press Ltd. It appears that
the businesses were not successful and they fell in debt being unable to
pay the workmen or even pay closure compensation.
4. This led the workmen to approach the Labour Court which
decided in their favour resulting in the private respondents having to
shell out a huge amount of about Rs. 56 lakhs towards unpaid dues.Since
the amounts were not paid despite a citation and recovery certificates,
the property/vacant land of the private respondents being 1877.88 sq.
yards in Plot No.4-A/4(1A/A)Hashimpur Road, Allahabad was attached.
PRAVESH KUMAR SACHDEVA  v. STATE OF UTTAR
PRADESH & ORS.
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SUPREME COURT REPORTS
[2018] 11 S.C.R.
5. Subsequently, the property/vacant land was put to auction which
took place on 17th November, 2004. One of the appellants Pravesh Kumar
Sachdeva (for short Sachdeva) was the highest bidder having given a
bid of Rs. 70 lakhs.
6. In terms of the provisions of the Uttar Pradesh Zamindari
Abolition and Land Reforms Act, 1950 and the Rules of 1952 framed
thereunder, 30 days’ time was given for filing objections to the auction
sale under Rule 285-I which reads as follows:
“RULE 285-I (i) At any time within thirty days from the date of
sale, application may be made to the Commissioner to set aside
the sale on the ground of some material irregularity or mistake in
publishing or conducting it;
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