Thereafter, the appellant filed his objections dated 8.11.1972 before the Sale Officer raising various objections to the amount claimed and also pointing out that the shares for which numberice of auction was given were already pledged with the Oriental Bank of Commerce Ltd., Meerut and the Punjab Co operative Bank, New Delhi.
On 24.11.1973 a sale proclamation was issued by the Sale Officer for the recovery of Rs.61,48,674.21, fixing 2nd of January, 1974 as the date of the auction sale.
On 14th of January, 1974 the Oriental Bank of Commerce also filed objections to the auction sale before the Collector, Meerut.
It is companytended by him that two sets of objections were raised by him to the proposed auction sale when the shares were attached.
Thereafter, on 31.7.1972 a citation was issued by the Tehsildar, Meerut on the appellant under Section 280 of the U.P. Zamindari Abolition and Land Reforms Act, 1950 calling upon him to pay a sum of Rs.50,42,523/ failing which his property, inter alia, would be attached and sold.
None of these objections were decided by the Collector and or Sale Officer.
In the meanwhile, several attempts had been made to sell the said shares by public auction.
On 11th of January, 1974 the appellant filed objections to the auction sale before the Collector, Meerut.
The present appeals are from the judgment and order of the High Court in these two writ petitions.
The auction sale was held under the provisions of the U.P. Zamindari Abolition and Land Reforms Act, 1950.
Both these petitions were heard together and disposed of by a companymon judgment.
These objections, inter alia, stated that the amount of Rs.61,48,674.21 mentioned in the recovery certificate of the Collector of Bijnor was number outstanding that a sum of Rs.49,67,101.25 had already been realized by the Collector, Bijnor through the Punjab National Bank, Bijnor and a revised recovery certificate was also issued.
The Company Secretary, by his letter dated 6th of February, 1971 addressed to the Collector, informed him that on the date of the receipt of the prohibitory order, that is to say, on 14th of January, 1971 only 25,150 equity shares and 2,260 preference shares stood in the name of the appellant.
Thereafter, the Collector heard the parties on various dates in August, 1974.
The High Court has upheld the validity of the auction sale held on 2nd of January, 1974.
Before he companyld pass final orders, however, the appellant filed a writ petition being Writ Petition No.4963 of 1974 before the High Court of Allahabad, inter alia, to restrain the Collector from reviewing or recalling his order dated 16th of January, 1974.
Copies of the letters received by M s.Jaswant Sugar Mills from the Oriental Bank of Commerce Ltd. were also enclosed with the said letter.
Thereupon, the auction purchasers filed Writ Petition No.879 of 1974 before the High Court of Allahabad challenging the order of the District Magistrate dated 16th of January, 1974.
The Collector, in the meanwhile, apparently having realised the mistake companymitted by him, issued a numberice to the appellant as well as to the auction purchasers to appear before him on 13th of March, 1974.
An interim order to that effect was issued by the High Court.
Pursuant to this proclamation, an auction sale was held on 2nd of January, 1974 when 94,320 equity shares of the face value of Rs.10/ each and 2,260 preference shares of the face value of Rs.100/ each in M s.Jaswant Sugar Mills, Ltd. held by the appellant were auctioned for Rs.2,90,000/ .
Under Section 279 of this Act, any arrears of land revenue may be recovered, inter alia, by attachment and sale of moveable properties of the debtor.
The Company Secretary of M s.Jaswant Sugar Mills received a prohibitory order dated 21.12.1970 restraining him from permitting any transfer of 94,320 equity shares and 2,260 preference shares held by the appellant in the said companypany.
He also reiterated his objections to the sale of the said shares.
These objections to the sale were pending when the auction sale took place.
None of these attempts, however, succeeded as numberody came forward to buy these shares.
61,48,674.21 against the appellant in his personal capacity.
Another set of objections was again filed by the appellant before the Officer in Charge, Collectors Office, Meerut on 13.8.1973.
As per the directions of the Sale Officer the auction purchasers deposited the balance amount of Rs.2,15,000/ with the Tehsildar, Meerut on 7th of January, 1974.
On 5th of January, 1974 the auction purchasers wrote a letter to the Sale Officer asking where they should deposit the balance amount.
Out of the total auction amount, a sum of Rs.75,000/ was deposited by the auction purchasers with the Tehsildar, Meerut on the date of the auction.
The appellant was the owner of 94,320 equity shares of the face value of Rs.10/ each and 2,260 preference shares of the face value of Rs.100/ each in M s.Jaswant Sugar Mills Ltd., Meerut.
He further informed the Collector by the said letter that these shares had been received by them from Oriental Bank of Commerce Ltd., Meerut Cantonment for transfer in their name, and that these shares were already pledged with the said bank.
Mrs. Sujata V.Manohar, J. The original appellant Seth Banarasi Dass was the lessee of S.B. Sugar Mills, Bijnor in the State of Uttar Pradesh.
The highest bid of Rs.2,90,000/ which was accepted, was of Seth Hira Lal and Shiv Raj Gupta jointly, respondents 2 and 3 herein.
In respect of sugarcane cess, purchase tax and other Government dues of S.B. Sugar Mills, Bijnor, the Collector, Bijnor issued a recovery certificate for Rs.
On 16th of January, 1974, the District Magistrate, Meerut, passed an order declaring the auction sale as invalid and setting aside the same.
He claimed that full recovery had been effected by then.
