THAKUR COLD STORAGE Vs. PUNJAB FINANCIAL CORPORATION

LAWS(SC)-1987-10-46

SUPREME COURT OF INDIA

Decided on October 05,1987

THAKUR COLD STORAGE Appellant

VERSUS

PUNJAB FINANCIAL CORPORATION Respondents

JUDGEMENT

- (1.) ORDER
(2.) SPECIAL Leave granted. Arguments heard. After hearing learned counsel for the parties we are satisfied that the judgment of the High court cannot be sustained. The auction-sale of the cold storage was held on 6/11/1982. The respondent herein Punjab Financial Corporation was permitted to bid at the auction and the sale was knocked down in its favour for Rs.9,10,000.00 . The sale was confirmed on 12/12/1985. Admittedly, there was a failure on the part of the Corporation , which was the purchaser, to deposit the balance three-fourth amount of the purchase price within 15 days of the auction-sale and there was thus non-compliance with the mandatory requirements of Order XXI, r.85 of the Code of Civil Procedure, 1908. The matter is squarely covered by the decision of this court in MANILAL MOHANLAL SHAH and ORS.V. SARDAR SAYED AHMED SAYED MOHMAD and ANR.(1955)1 SCR 108. The sale is therefore a nullity. Accordingly, the appeal succeeds and is allowed. The judgment and order passed by the High court are set aside as also the auction-sale. The respondent Punjab Financial Corporation shall be at liberty to apply for resale of the cold storage for recovery of its dues according to law. There shall be no order as to costs.;

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