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Issues: (i) Whether the Deputy Registrar had jurisdiction to entertain an appeal against the order confirming the auction sale of the mortgaged property. (ii) Whether the confirmed auction sale could be set aside and the debtor given relief after failure to comply with the statutory conditions and the earlier directions requiring deposit of the awarded amount.
Issue (i): Whether the Deputy Registrar had jurisdiction to entertain an appeal against the order confirming the auction sale of the mortgaged property.
Analysis: The sale had been confirmed by the competent authority after the debtor failed to avail the statutory remedy in the manner prescribed for setting aside the sale. The appeal before the Deputy Registrar was not one maintainable under the appellate provision invoked, because an order confirming sale under the special recovery mechanism was not appealable under that provision. The remedy under the recovery rules was distinct, and once the sale had been confirmed and a sale certificate issued, the appellate authority could not assume jurisdiction to reopen the matter.
Conclusion: The appeal before the Deputy Registrar was not maintainable and the order passed therein was without jurisdiction, against the appellant.
Issue (ii): Whether the confirmed auction sale could be set aside and the debtor given relief after failure to comply with the statutory conditions and the earlier directions requiring deposit of the awarded amount.
Analysis: The debtor had repeatedly failed to satisfy the award and had also failed to comply with the conditions attached to the interim and final orders passed in the proceedings. The statutory scheme required deposit within the prescribed framework before the sale could be set aside, and once the sale stood confirmed, the authority could not invoke the residual power to undo it in a manner inconsistent with the finality attached to the process. The later clarificatory and consequential directions could not confer a benefit on a defaulting debtor after the sale had attained finality.
Conclusion: The setting aside of the confirmed sale was unsustainable and the relief granted to the debtor could not be sustained, in favour of the appellant.
Final Conclusion: The auction purchaser succeeded, the challenge to the confirmation of sale was upheld, and the sale in favour of the auction purchaser stood restored with the debtor left to receive only such disbursements as were already deposited and required to be released in accordance with law.
Ratio Decidendi: Where a special recovery statute provides a specific remedy for setting aside a sale before confirmation, an appellate authority cannot assume jurisdiction to undo a confirmed sale, and once the sale has attained finality the authority becomes functus officio for reopening it on grounds that were not pursued in the manner prescribed by the statute.
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