Property Auction and Amnesty Scheme: Supreme Court Grants Relief to Appellant

The Supreme Court of India in Civil Appeal No. 4602 of 2016 dealt with a dispute involving the appellant, Sooraj Kumar, and the respondents, Tahsildar & Others. The issue at hand revolved around the auction sale of the appellant’s property, which was carried out by the government to recover dues. The appellant challenged the auction proceedings, claiming that they were vitiated due to a lack of proper inquiry into the market value of the property.

Background of the Case

The appellant, Sooraj Kumar, found himself at the center of recovery proceedings initiated by the government. The property in question was auctioned to the government itself for a nominal price of Re. 1/- as a part of the recovery process. The appellant contended that this auction sale was unfair and lacked transparency, particularly with regard to the market value of the property.

Petitioner’s Arguments

The appellant’s counsel argued that:

• The auction process was flawed because no proper inquiry was made regarding the market value of the property.
• The nominal sale price of Re. 1/- was grossly inadequate and did not reflect the actual value of the property.
• The appellant was prepared to settle the entire dues under the Amnesty Scheme, which he was eligible for, and requested that the auction proceedings be recalled in light of this.

Respondents’ Arguments

The respondents, representing the Tahsildar’s office, argued that:

• The auction process had followed the prescribed legal procedures for recovery of dues.
• The sale price of the property, though nominal, was in line with the applicable guidelines and regulations at the time.
• Since the appellant had not raised any objections at the time of the auction, the sale proceedings should not be overturned.

Judgment

The Supreme Court examined the facts of the case and the submissions made by both parties. The Court noted the appellant’s willingness to settle the dues under the applicable Amnesty Scheme. In its judgment, the Court ruled:

“If there is any Amnesty Scheme available to the appellant and in case the appellant is prepared to pay the amounts as per the Scheme, the auction proceedings may be recalled and the property be restored in favor of the appellant.”

The Court further directed:

• If the appellant has already filed an application under the Amnesty Scheme, the authorities should take appropriate action on the application within three months from the date of the judgment.
• The Court disposed of the appeal, clarifying that the appellant’s property would be restored if he complied with the terms of the Amnesty Scheme.

Key Takeaways

• The Supreme Court emphasized the importance of ensuring fairness and transparency in government auctions, particularly in property recovery proceedings.
• The Court allowed the possibility of recalling auction proceedings if the appellant complied with the Amnesty Scheme for settlement of dues.
• The ruling also highlights the significance of government schemes designed to provide relief to individuals facing financial difficulties, such as the Amnesty Scheme in this case.

This judgment provides an opportunity for individuals like the appellant to resolve their financial issues through government schemes while also protecting their property rights.

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Download Judgment: Sooraj Kumar vs Tahsildar & Others Supreme Court of India Judgment Dated 29-04-2016-1741854769080.pdf