Bombay High Court on Auction Sale and Covid-19 Period Protection.

Headnote:

The Bombay High Court set aside the order of the Revisional Authority that had cancelled the confirmation of auction sales under the Maharashtra Cooperative Societies Rules, 1961. The Court held that the petitioners, who deposited the balance auction amounts during the period excluded by the Supreme Court due to the Covid-19 pandemic, were entitled to protection. Non-deposit within the original statutory period could not be held against them since the timelines fell within the pandemic-excluded period.

Background:

1. Certificates under Section 101 of the Maharashtra Cooperative Societies Act, 1960 were issued against borrowers.
2. Auction of attached properties was conducted under Rule 107 of the MCS Rules. Petitioners were the highest bidders and initially deposited 15% of the bid amount.
3. Due to the Covid-19 pandemic, the petitioners could not deposit the remaining 85% within the original statutory period and requested extensions, which were granted. Balance amounts were deposited on 15 May 2020 and 20 May 2020.
4. The District Deputy Registrar confirmed the auction, and sale deeds were registered.
5. Borrowers filed revisions before the Revisional Authority, which set aside the confirmations, citing non-compliance with statutory timelines.

Court’s Observations:

1. The Supreme Court, in Suo Motu Writ Petition No. 3 of 2020, excluded the period from 15 March 2020 to 14 March 2021 from limitation calculations due to the pandemic.
2. Timelines under Rule 107(11)(g) & (h) are mandatory steps in a legal proceeding, not mere financial transactions.
3. Depositing the auction balance during the excluded period falls within the protection granted by the Supreme Court.
4. The Revisional Authority erred in ignoring this pandemic protection.
5. Compliance by petitioners within the pandemic-excluded period validates the auction and the subsequent confirmation.

Decision / Order:

1. All writ petitions allowed.
2. Order of the Revisional Authority set aside.
3. Auction sale confirmations and registered sale deeds are upheld.
4. No costs awarded.

Legal Provisions Discussed:

1. Section 101, Maharashtra Cooperative Societies Act, 1960 – Power to issue certificates for recovery.
2. Rule 107(11)(g) & (h), Maharashtra Cooperative Societies Rules, 1961 – Auction procedures and timelines for deposit of bid amounts.
3. Supreme Court Suo Motu Writ Petition No. 3 of 2020 – Exclusion of period 15 March 2020 – 14 March 2021 from limitation calculations due to Covid-19 pandemic.

Citation: 2025:BHC-AS:49005

Case: Anil Keruji Jagtap & Ors. v. Razzak Nazimuddin Kazi & Ors. (with connected WPs)

Court: High Court of Judicature at Bombay

Coram: Justice Amit Borkar

Date of Decision: 14 November 2025

Writ Petition Nos.: 8662/2021, 8663/2021, 8664/2021, 8668/2021