IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN MONDAY, THE 9TH NOVEMBER 2009 / 18TH KARTHIKA 1931 WP(C).No. 27367 of 2009(M) -------------------------- PETITIONER(S): --------------- P.G.SUNIL KUMAR, S/O.GOPALAN, POOTHOTTINGAL HOUSE, KOLAZHY (PO), THRISSUR DISTRICT. BY ADV. SRI.C.E.UNNIKRISHNAN RESPONDENT(S): --------------- 1. THE SPECIAL SALE OFFICER, THRISSUR URBAN CO-OPERATIVE BANK, HEAD OFFICE, MISSION QUARTERS, THRISSUR. 2. THE GENERAL MANAGER, THRISSUR URBAN CO-OPERATIVE BANK, HEAD OFFICE, MISSION QUARTERS, THRISSUR. 3. JOINT REGISTRAR (GENERAL) OF CO-OPERATIVE SOCIETIES, THRISSUR. ADV. SRI.C.D.DILEEP FOR R1 GOVT. PLEADER SRI. K.S. MOHAMMED HASHIM. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 09/11/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: PETITIONER'S EXHIBITS: W.P.C.NO. 27367.2009 -------------------------------------------------------------------- EXT.P1 TRUE COPY OF RECEIPT DT. 27-2-2006. EXT.P2 DO. DT. 17-5-2006. EXT.P3 REPRESENTATION DT. 24-8-2007. EXT.P4 DO. DT. 14-12-2008. EXT.P5 DO. DT. 23-3-2009. EXT.P6 DO. DT. 14-8-2009. [TRUE COPY] P.S TO JUDGE. S. Siri Jagan, J. =-=-=-=-=-=-=-=--=-=-=-=-=-=-=-=-=-= W. P (C) No. 27367 of 2009 =-=-=-=-=-=-=-=-=--=-=-=-=-=-=-=-=-= Dated this, the 9th November, 2009. J U D G M E N T The 2nd respondent Co-operative Bank initiated proceedings for recovery of amounts due from a defaulter for repayment of loan amounts pursuant to which the properties mortgaged by the defaulter was sold in public auction. The petitioner participated in the auction, which was conducted on 27-2-2006 and being the highest bidder, he was asked to remit 15% of the sale amount, amounting to Rs. 42,750/-, which he had paid. As per the conditions of the sale, 15% of the sale amount should be remitted on the date of auction and the remaining 85% within 15 days. The petitioner did not pay the balance amount, but paid only Rs. 60,000/- on 17-5-2006. No further remittance was also made by the petitioner. Therefore, respondents 1 and 2 conducted fresh auction, after cancelling the sale in favour of the petitioner and sold the property to another person for a much higher amount. The petitioner has now filed this writ petition seeking a direction to the respondents either to transfer the property to him after receiving from him the balance sale price or to refund the amounts paid by the petitioner with interest. 2. The 2nd respondent has filed a counter affidavit in which it is submitted that the petitioner having committed breach of contract, the petitioner is not entitled to refund of the amounts paid by him, which is liable to be forfeited. 3. I have considered the rival contentions in detail. 4. Admittedly, the petitioner bid the property for Rs. 2,85,000/-. In the second sale, respondents 1 and 2 sold the property for Rs. 4,57,000/-. Even if the petitioner has committed breach of contract, the 2nd respondent is entitled to recover only damages suffered by them. In this case, since the property was sold in the second sale for almost double the amount for which the petitioner had W.P.C. No. 27367/2009 -: 2 :- bid the property, they have not suffered any damages whatsoever. Therefore, I am of opinion that the 2nd respondent is bound to refund the amounts paid by the petitioner. Accordingly, I allow this writ petition and direct the 2nd respondent to pay to the petitioner the amounts paid by the petitioner as expeditiously as possible, at any rate, within two weeks from the date of receipt of a copy of this judgment. However, the claim of the petitioner for interest is declined. Sd/- S. Siri Jagan, Judge. Tds/