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Issues involved: Validity of auction sale of appellant's property under the Maharashtra Co-operative Societies Act, 1960 and Rules framed thereunder.
Summary: The Supreme Court heard appeals against the Bombay High Court's judgment regarding a loan default case involving a cooperative bank under the Maharashtra Co-operative Societies Act, 1960. The appellant's property was put up for auction under Rule 107 of the Rules, where the auction purchaser failed to pay the remaining 85% of the purchase money within 15 days as required by Rule 107(11)(g). Citing precedents like Manilal Mohanlal Shah v. Sardar Sayed Ahmed Sayed Mahmad and Balram v. Ilam Singh, the Court emphasized that non-compliance with the mandatory requirement of depositing the full purchase money within the stipulated time renders the sale proceedings null and void, not merely irregular. Consequently, the Court held that the auction sale of the appellant's property was invalid and directed a fresh auction after proper advertising and compliance with Rule 107 procedures. The appeals were allowed, the impugned judgment was set aside, and no costs were awarded.
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