Mandatory auction payment timelines under co-operative society rules render a sale void if the balance is not deposited on time.

Under Rule 107(11)(g) of the Maharashtra Co-operative Societies Rules, 1961, an auction purchaser had to pay 15% at the time of sale and the balance within 15 days. The Supreme Court treated this payment requirement as mandatory and held that non-payment of the balance within the prescribed period was not a mere irregularity but one going to the root of the sale. The auction sale was therefore void and ineffective, and the property had to be re-auctioned in accordance with Rule 107 after fresh advertisement and compliance with the prescribed procedure.

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Issues: Whether an auction sale conducted under Rule 107 of the Maharashtra Co-operative Societies Rules, 1961 was valid when the auction purchaser failed to deposit the remaining purchase money within the time prescribed by Rule 107(11)(g).

Analysis: Rule 107(11)(g) required the auction purchaser to deposit 15% of the price at the time of purchase and the balance within 15 days. The prescribed payment condition was treated as mandatory. Failure to deposit the balance within the stipulated period did not amount to a mere irregularity; it went to the root of the sale and rendered the sale proceedings ineffective.

Conclusion: The auction sale was void and there was no valid sale of the appellant's property.

Final Conclusion: The appeals succeeded, the impugned judgment was set aside, and the property was directed to be re-auctioned in accordance with Rule 107 after fresh advertisement and compliance with the prescribed procedure.

Ratio Decidendi: Non-payment of the balance purchase money within the time prescribed for an auction sale under the relevant rules renders the sale a nullity, not a mere irregularity.

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