Report Summary:
Case Title: SMT RIZWANA YUSUF PATHAN THR POA HOLDER YUSUF AHMED PATHAN Vs YASHWANT NAGRI CO OP CREDIT SOC LTD. AND OTHERS
Court Rules in Favor of Auction Bidders Affected by COVID-19 Delays
Quick Summary: The Bombay High Court, led by Justice Amit Borkar, has decided in favor of Rizwana Yusuf Pathan and other people who faced delays in paying for auctioned properties because of the COVID-19 pandemic. The court recognized the Supreme Court's order to not count certain time periods due to the pandemic, protecting Rizwana Yusuf Pathan and others from losing their auctioned properties.
In several legal challenges, including one by Rizwana Yusuf Pathan through her representative, Yusuf Ahmed Pathan, they contested a decision from the Revisional Authority. This authority had previously declared an auction sale invalid because it didn't follow specific rules.
The auction, held on March 17, 2020, involved properties linked to the Maharashtra Cooperative Societies Act. Rizwana Yusuf Pathan and others were the highest bidders and initially paid 15% of the bid amount. However, the pandemic made it difficult to pay the remaining 85% within the usual timeframe.
"Due to the COVID-19 pandemic, the petitioners could not deposit the remaining eighty-five per cent amount within the time fixed under Rule 107(11)(h)."
Rizwana Yusuf Pathan and others referred to the Supreme Court's decision, which extended deadlines due to COVID-19. This extension covered the period from March 15, 2020, to March 14, 2021. They argued that this should apply to their case, as they completed their payments on May 15 and 20, 2020.
Despite the Supreme Court's directive, the Revisional Authority canceled the auction sale. The Bombay High Court found this decision incorrect, as it didn't consider the Supreme Court's protective measures for proceedings affected by the pandemic.
Justice Amit Borkar concluded that Rizwana Yusuf Pathan and others were entitled to the protection offered by the Supreme Court's order. The court ruled that the auction sale confirmation should not have been canceled, allowing the legal challenges.
"The Revisional Authority overlooked this position. It therefore committed an error in setting aside the confirmation of sale."
The court fully agreed with the petitioners' requests, effectively giving them back their rights to the auctioned properties. The legal challenges were resolved without any order regarding costs.
This decision highlights the court's understanding of the unique difficulties caused by the pandemic and its effect on legal processes.
