Supreme Court on Rule 107(11)(g) to (k) of 1961 MC Societies Rules and Failure to deposit auction amount within stipulated period.

On 4.7.1996, the Cooperative Court issued the recovery certificate under Section 98 of the MC Societies in respect of the plot of the partnership firm M/s. Borse Brothers.

In the auction, the bid of the appellant was accepted. After deposit of the auction amounts, the sale was confirmed and physical possession was given.   On 21.3.2005, the sale certificate was issued and registered conveyance deed was executed on 13.6.2005.

However, the Collector rejected the application of the appellant for mutation of the revenue records.  This was challenged in the High Court.

In the meanwhile, the Joint Registrar set-aside the auction on the ground that the entire auction amount was not deposited within 15 days from the date of auction.

 This was challenged in the writ petitions.

HELD that revisional power under Section 154 of MC Societies Act is extremely wide which would include examining the legality of a proceeding qua confirmation of auction sale and such power cannot be limited by the Rules.  Thus, the Registrar is not denuded of powers to call for the records of any inquiry or proceeding of any matter merely because the remedy under sub-rules (13) and (14) of Rule 107 of 1961 Rules was not availed.

Section 154 Revision against confirmation of sale – Pre-deposit of decretal amount as per the recovery is not required and section 154(2A) has no application.

Rule 107(11)(g) to (k) of 1961 Rules and Deposit of Auction amount within stipulated period.

A conjoint reading of clauses (g) to (k) of sub-rule (11) of Rule 107 of 1961 Rules make it clear that if 15 per cent of the price of the immovable property is not deposited at the time of the purchase, the property shall forthwith be re-sold.

 In our view, therefore, there is no discretion vested in the Recovery Officer to extend the period for deposit of remainder of the purchase money. Not only that, if the remainder of the purchase money is not deposited, the amount already deposited may be forfeited.

Judgment dated 26.2.2026 of the Supreme Court of India in Civil Appeal Nos.002545 – 002548 of 2026 of M/s Adishakti Developers with the State of Maharashtra and others with connected civil appeals