2002 (3) TMI 949 - SC - Indian Laws

Summary

Issues:
1. Failure to deposit ordered sum for stay of auction.
2. Corporation's actions post-auction sale.
3. High Court's directions on possession and loan for new truck.
4. Jurisdiction of High Court in contractual matters.

Analysis:
1. The respondent failed to deposit the ordered sum of Rs. 25,000 for a stay of auction, leading to the corporation proceeding with the auction sale. The vehicle was sold for Rs. 2,20,000 to an auction purchaser, and subsequent legal actions were taken by the respondent.

2. The High Court issued directions for the corporation to show cause for flouting court orders and restrained further actions for transfer of ownership. Another order directed the corporation to hand over possession of the vehicle to the respondent, with specified payment terms upon possession transfer.

3. High Court's order included directions for the corporation to advance a fresh loan for a new truck, write off a portion of the remaining amount, and waiver of interest. The court's involvement in contractual matters beyond the scope of the writ petition was challenged, emphasizing the court's jurisdictional limitations in contractual disputes.

4. The Supreme Court found the High Court's orders unsustainable and set them aside, noting the corporation's actions post-auction sale and the respondent's disinterest in the matter after a significant lapse of time. The appeal was allowed, and the High Court's orders were overturned, emphasizing the jurisdictional boundaries of the court in contractual matters.