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2009 (2) TMI 74

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..... 2005 respectively and set aside the auction sale held by the 2nd respondent on 18-3-2005; (b) that during the pendency and final hearing of this petition, the 2nd respondent be restrained from issuing sale certificates to the 22 purchasers of the plots illegally sold at auction sale conducted by the 2nd respondent on 18-3-2005 and that the 2nd respondent be further restrained from putting to auction sale further plots as announced by him after the conclusion of the auction held on 18-3-2005; (c) that any other and further relief which is just and proper may kindly be granted by this Hon'ble Court." 2. The facts in the backdrop of which the controversy arises are that the petitioner, an individual, became liable to make payment to the res .....

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..... number of plots were to be put to auction sale on 21/3/2005 as announced on 18/3/2005. 4. At this stage, the petitioner approached the Court of Civil Judge (Senior Division), Jamnagar, seeking relief against respondent no.2, accompanied by an application for interim relief. Ad-interim injunction was granted on 19/3/2005 which came to be extended from time to time. The said order of ad-interim injunction was challenged by respondent no.2 by way of writ petition before this High Court and notice was issued on 20/4/2006 making it returnable on 27/4/2006. In the meantime the Civil Court rejected application for interim injunction on 25/4/2006, but stayed operation of the said order up to 12/5/2006. Hence the petitioner preferred two separate p .....

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..... tached, to satisfy the Tax Recovery Certificate. Under Sub Rule (2) of Rule 52 of the Rules, the Tax Recovery Officer is under a mandate to cause a Proclamation of the intended sale to be made in the language of the district where the immovable property, which is ordered to be sold, is situate. Rule 53 of the Rules lays down as to what should be the contents of a 'Proclamation' and reads as under : "Contents of proclamation. 53. A proclamation of sale of immovable property shall be drawn up after notice to the defaulter, and shall state the time and place of sale, and shall specify, as fairly and accurately as possible,- (a) the property to be sold; (b) the revenue, if any, assessed upon the property or any part thereof; (c) the amount .....

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..... of the Rules. 10. In the present case, the Proclamation which appears at 'Exhibit-B' mentions 3 Recovery Certificates of different dates, seeking recovery of a sum of Rs.11,12,02,942/-. In so far as column relating to reserve price is concerned, it states that the property shall not be sold below the Jantri price fixed by local authority. Thereafter the Schedule of the property has been mentioned containing five columns, out of which the first column relating to number of lots has been filled up, the second column relating to Description of Property has also been filled up, while column nos 3, 4 & 5 have been left blank, with column no.4 showing Details of any encumbrances to be 'Nil'. 11. The public notice which followed the Proclamation .....

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..... together, there is substantial compliance with the requirements of the Rules of the Second Schedule. 14. In the first instance, it is an admitted position between the parties that by virtue of agreement entered into in 1980, 60% of the realization from the auction sale is to be retained by the respondent authority in satisfaction of the Recovery Certificate, whilst balance 40% is to be paid over to the petitioner. Therefore, to say that the petitioner is not prejudiced due to the variation in the details mentioned in the Proclamation and public notice, can not be upheld. 15. Under Rule 54(2) of the Rules the phrase used is 'Such Proclamation', namely 'Proclamation' which has been made under Rule 52(2) of the Rules containing the particul .....

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..... estion. To put it differently, a prospective bidder must be made aware of outstanding liabilities vis-a-vis the property put to auction sale. Therefore, the contention that the term 'Revenue' does not take within its sweep, in so far as Rule 53 is concerned, Municipal taxes cannot be upheld. There is one more reason. In fact in the public notice, as already noted hereinbefore, specific reference to outstanding Municipal taxes by way of a column is there, and then the column says 'not known'. Thus the entire exercise is misleading, not only from the point of view of the prospective bidder but also from point of view of any person who is directly or indirectly interested in disposal of the property, including the petitioner. In the result, it .....

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