MANU/SC/0265/2022

True Court CopyTM English

IN THE SUPREME COURT OF INDIA

Civil Appeal No. 5861 of 2009

Decided On: 02.03.2022

Appellants: State of Punjab and Ors. Vs. Respondent: Mehar Din

Hon'ble Judges/Coram:
Ajay Rastogi and Abhay Shreeniwas Oka

JUDGMENT

Ajay Rastogi, J.

1. The instant appeal arises from the judgment and order passed by the Division Bench of the High Court of Punjab and Haryana at Chandigarh dated 13th August, 2008 setting aside the order dated 24th August, 2006 passed by the Financial Commissioner Revenue, Patiala with a further direction to the competent authority to confirm the auction sale and complete all other formalities within three months.

2. The facts in brief culled out from the record and relevant for the purpose are that the sub-urban properties are to be disposed of in terms of the procedure for sale by public auction, as provided under Chapter III of the Punjab Package Deal Properties (Disposal) Rules, 1976 (hereinafter referred to as "the Rules 1976"), framed by the State Government in exercise of its power conferred Under Section 18 of the Punjab Package Deal Properties (Disposal) Act, 1976. Part III of Rules 1976 provides for transfer of urban properties.

3. The Appellants being the custodian of the subject property initiated the process of putting the property to public auction through the notice published in Punjabi Tribune of 17th May, 1993, the extract of auction notice is reproduced as under:

Punjabi Tribune, Monday, 17 May 1993

AUCTION NOTICE

General public is informed that the following Sub Urban Land of Tehsil Malerkotla will be auctioned at the time and place given below. 1/5th of the bid amount shall be given at the spot in cash. The remaining conditions of the auction will be fold on the spot.

Sd/-
Tehsildar Revenue-cum-M.O. Malerkotla

4. It has not been pleaded that the auction notice was given its wide publicity and affixed at the conspicuous place in the locality where the property is situated.

5. The Tehsildar Sales, Malerkotla conducted public auction on 4th June, 1993 and this fact is not disputed that only three bidders had participated in the bidding process and bid of the Respondent, Mehar Din was the highest bid of Rs. 3,90,000/-, which was provisionally accepted by the Tehsildar. Pursuant thereto, 1/5th of the bid amount, i.e., Rs. 78,000/- was deposited by the Respondent at the spot subject to its confirmation by the Sales Commissioner in terms of the procedure for sale by public auction provided Under Rule 8(1)(h) of Chapter III of the Rules 1976.

6. On perusal of records, the competent authority (Sales Commissioner) was of the view that the public property has not been put to proper publicity and the present bid is inadequate and failed to record his satisfaction for confirmation of the bid and accordingly the bid was cancelled by an order dated 2nd July, 1993 with a further direction for re-auction and to be auctioned in his presence with wide publication to fetch the maximum........