In a case involving auctions, pandemic delays, and legal interpretations, the Bombay High Court has ruled in favor of Balshiram Manjabhau Kurhade, who faced setbacks due to COVID-19. Here’s how the court’s decision unfolded.
The main problem started when the authorities declared an auction invalid. Why? Because the auction didn't follow certain rules from the Maharashtra Cooperative Societies Rules, 1961. The property was supposed to be sold to the highest bidders, Balshiram Manjabhau Kurhade and others, but things got complicated.
"The auction sale had become void because there was no compliance with Rule 107(11)(g) and (h) of the Maharashtra Cooperative Societies Rules, 1961."
The pandemic caused delays. Balshiram Manjabhau Kurhade and the other petitioners couldn't pay the rest of the auction amount on time due to COVID-19 disruptions. They asked for more time and managed to pay by May 2020. The Special Recovery Officer accepted this and moved forward with the sale.
"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)."
Balshiram Manjabhau Kurhade and the petitioners relied on a Supreme Court order that extended legal deadlines due to the pandemic. This order excluded the period from March 2020 to March 2021 from any legal time limits. They argued this should cover their delayed payments too.
"The Supreme Court directed that for computing limitation for any suit, appeal, application, or proceedings, the period from 15 March 2020 to 14 March 2021 must be excluded."
Judge Amit Borkar decided that Balshiram Manjabhau Kurhade and the petitioners’ actions were protected under the Supreme Court's order. The court found that the authorities made a mistake by not considering this protection. Therefore, the confirmation of the auction sale was reinstated.
"The petitions deserve to be allowed. Rule is absolute in terms of prayer clause (b)."
The court ruled in favor of Balshiram Manjabhau Kurhade and the other petitioners, allowing the auction sale to go through. The decision was based on the Supreme Court's order that extended deadlines due to the pandemic, which protected the petitioners from penalties for their delayed payments.
