IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN WEDNESDAY, THE 23RD JANUARY 2008 / 3RD MAGHA 1929 WP(C).No. 25738 of 2005(L) -------------------------- PETITIONER: ------------ MEERA SAHIB, S/O.SHAHUL HAMEED, AGED 71, MAJIDA MANZIL, CHENCHERIKONAM, ALAMCODE P.O., ATTINGAL, THIRUVANANTHAPURAM. BY ADV. SRI.KKM.SHERIF SRI.P.M.KUNJIMOIDEENKUTTY SRI.P.A.MOHAMMED ASHROF SRI.A.A.ZIYAD RAHMAN SMT.SHEENA SAMUEL RESPONDENTS: ------------- 1. STATE OF KERALA, REPRESENTED BY SECRETARY, DEPARTMENT OF INDUSTRIES, THIRUVANANTHAPURAM. 2. THE DIRECTOR, INDUSTRIES AND COMMERCE, THIRUVANANTHAPURAM. 3. THE DIRECTOR, HANDLOOM & TEXTILES, THIRUVANANTHAPURAM. 4. THE GENERAL MANAGER, DISTRICT INDUSTRIES CENTER, THIRUVANANTHAPURAM. 5. THE LIQUIDATOR, ATTINGAL POWERLOOM SOCIETY, ATTINGAL, THIRUVANANTHAPURAM. 6. NANU PRABHAKARAN, CHARUVILA PUTHANVEETTIL, MELATTINGAL, ALAMCODE P.O., THIRUVANANTHAPURAM. WP(C).No. 25738/2005/L -2- 7. K.SREEVALSAN, KRISHNAVILASOM, MELLATTINGAL, ALAMCODE P.O., THIRUVANANTHAPURAM. 8. SREEKUMAR, "GAYA" MELAVETTOOR P.O., VARKALA. BY ADV. SRI.GEORGE VARGHESE(PERUMPALLIKUTTIYIL) SMT.SREELEKHA PUTHALATH SENIOR GOVERNMENT PLEADER, SMT.T.B.REMANI SRI.M.R.ANANDAKUTTAN SRI.R.S.MADHU THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 23/01/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) NO.25738/2005 APPENDIX PETITIONER'S EXHIBITS: EXT. P1: COPY OF THE ORDER DATED 29.09.03. EXT. P2: COPY OF THE CERTIFICATE DATED 3.10.03. EXT. P3: COPY OF THE RECEIPT OF FEES ON 26.10.03. EXT. P4: COPY OF THE COMMUNCIATION DATED 03.02.04. EXT. P5: COPY OF THE ORDER DATED 18.12.03. EXT. P5(A): COPY OF THE COVERING LETTER DATED 07.02.04 ISSUED BY THE 4TH RESPONDENT. EXT. P6: COPY OF THE JUDGMENT DATED 03.01.05 IN WP(C) NO.6713/05. EXT. P7: COPY OF THE GO(RT)NO.722/2005/ID, DATED 06.08.05. /TRUE COPY/ P.A. TO JUDGE JP S.SIRI JAGAN, J. ======================= W.P.(C) No. 25738 of 2005 (L) ======================= Dated this the 23rd day of January, 2008 JUDGMENT Petitioner is the auction purchaser of a property comprised in survey no.31-A1/1 in Keezhattingal Village in Chirayankeezh Taluk, owned by the Attingal Powerloom Society, a society registered under the Kerala Co-operative Societies Act, which went into liquidation as per the provisions of Kerala Co-operative Societies Act, in the sale conducted by the 5th respondent in the liquidation proceedings. The petitioner's bid for Rs.2,52,000/- was accepted, sale was confirmed in his favour and Ext.P2 sale certificate was also issued. The Government initiated suo moto proceedings as per Ext.P5 order and set aside the sale which was challenged by the petitioner in W.P.(C) No.6713/2004 in which, by Ext.P6 judgment, this Court directed the Government to reconsider the matter. Pursuant thereto Ext.P7 order was passed by the Government setting aside the sale on the ground that the sale was vitiated for want of proper W.P.(C) No. 25738/2005/L -2- publication and undervaluation. The petitioner is challenging Ext.P7 order. 2. According to the petitioner, he was a bonafide bidder in the proceedings for sale conducted by the 5th respondent and Ext.P3 sale certificate has been issued in his favour. Therefore, he has already become the owner of the properties and therefore, the Government cannot set aside the sale in purported proceedings under the Kerala Co-operative Societies Act. 3. I have heard the learned counsel for the petitioner and the 6th respondent who is a shareholder of the society as also the learned Government Pleader. The mere fact that sale certificate has been issued to the petitioner does not take away the power of the Government, under the Kerala Co-operative Societies Act, to set aside a sale conducted by the liquidator in winding up proceedings of the society for safeguarding the interests of the creditors and shareholders of the society. In fact the state itself was a creditor of the society to whom an amount of Rs.3,94,704/- was due. In Ext.P7, there is a specific finding that on an enquiry conducted it was found that there was no publication of any notice as contemplated under law. I find that W.P.(C) No. 25738/2005/L -3- an extent of 42 cents of property has been knocked down for an amount of Rs.2,52,000/-, at the rate of barely Rs.6,000/- per cent. The reasons stated in Ext.P7 for setting aside the sale are very valid reasons and I do not think that I should interfere with the same in exercise of my discretionary jurisdiction. As such, I do not find any merit in the contentions of the petitioner against Ext.P7 order of the Government setting aside the sale in favour of the petitioner. 4. However, there is no finding in Ext.P7 of any complicity of the petitioner in the matter. That being so, the petitioner is entitled to refund of the amount paid by him with reasonable interest. He is also entitled to be adequately compensated for deprivation of his money. He points out that for registration of the sale certificate, he had incurred expenses which also has to be paid to him. I am of the opinion that the petitioner is entitled to that relief. Therefore, there would be a direction to the 5th respondent to refund to the petitioner the amount paid by the petitioner as sale consideration with 6% interest and an amount of Rs.18,000/- towards compensation of the expenses incurred by him for getting the sale certificate W.P.(C) No. 25738/2005/L -4- registered. The said amounts shall be paid within two months from the date of receipt of a copy of this judgment. The writ petition is disposed of as above. S.SIRI JAGAN, JUDGE jp