- (1.) M. Katju, J. This writ petition has been filed for quashing of the auction held on 4-8-2003 (Annexure 9 to the writ petition) in which the highest bid of Rs. 13. 60 lacs offered by respondent No. 8 Kishore Kumar Agarwal was accepted by the responndent auctioning authority. The petitioners have also prayed for quashing the impugned recovery certificate dated 15-7-2001 and 4-7-2003 Annexure Nos. 2 and 7 to the writ petition.
(2.) THE petitioners took a loan of Rs. 9,76,6000 from U. P. Financial Corporation which was sanctioned on 29-8-1996 after completing the necessary formalities. THE petitioners did not repay the loan amount as per the terms and conditions of the loan agreement and hence penal interest was imposed by the Financial Corporation and the demand was made. Apart from the principal loan amount of Rs. 9,76,700 interest of Rs. 11,21,626. 03 had accrued and hence a total amount of Rs. 20,98,386. 03 was demanded by the U. P. Financial Corporation in the recovery certificate dated 15-7-2001. THE Collector, Agra initiated the recovery proceedings on 8-1-2002 and the Tehsildar was deputed to take necessary action to recover the amounts mentioned in the recovery certificate. The recovery authority issued the sale proclamation under Rule 282 of U. P. Zamindari Abolition and Land Reforms Rules and fixed the date to deposit the amount mentioned in the said Citation Certificate. The property which was hypothecated by the petitioners to the Financial Corporation was also mentioned alongwith its boundary in the said Sale proclamation. The said notice was received on 16-7- 2003 by the husband of the petitioner No. 1. However, the petitioners did not deposit the said amount. Thereafter on 22-7-2003, notice for auction was published by the auctioning authority/tehsildar Agra in the notice Board as well as in the Daily Newspaper "dainik Jagran" on 1-8-2003. The date for auction of the property which had been mortgaged was fixed by the auctioning authority on 4-8-2003. Seven persons participated in the auction proceedings and the highest bid of the respondent No. 8 (Rs. 13,60,000) was accepted out of 7 participants. The answering respondent No. 8 deposited 1/4th of the amount of Rs. 3,40,000 on 4-8-2003 and the remaining amount of Rs. 10,20,000 was deposited by him on 18-8-2003 which was within time. The auction authority communicated to the Collector that the entire auction amount sum of Rs. 13,60,000 has been deposited by the respondent No. 8 within time.
(3.) THE petitioners filed the writ petition with the allegation that the house of the petitioner has been auctioned for Rs. 13. 6 lacs, while its market value is more than Rs. 30 lacs and proper notice has not been given to the petitioners before fixing the date of auction, etc. A short counter affidavit has been filed by the auction purchaser and we have perused the same. In para 6 it is stated that the petitioner No. 2 had mortgaged her house forgetting the loan. In pursuance of the recovery proceedings auction notice was issued on 4-7-2003 fixing 4-8-2003 as the auction date. The petitioners were fully aware of the auction as well as the fact that the property was valued by the respondents as per the rules before the auction notice. The auctioning authority has given the notice to the petitioners and the same was received by the husband of the proprietor of the petitioner No. 1 Firm. Hence false averments have made by the petitioners in the writ petition. A true copy of the auction notice served on the husband of petitioner No. 2 on 16-7-2003 and bearing his signature is Annexure 1 to the counter affidavit.;