Summary
The Supreme Court upheld the purchasers’ challenge to the setting aside of a confirmed recovery auction. Only one owner had filed authorised objections, which he later withdrew; the others could not claim those objections as their own. All owners had sought and accepted the surplus sale proceeds. Their conduct established waiver and acquiescence and estopped the later challenge. The High Court’s contrary order was set aside.
Issues
- Whether objections filed through an advocate authorised by only one owner could be treated as objections of all owners.
- Whether withdrawal of objections and acceptance of surplus auction proceeds precluded the subsequent challenge to the confirmed sale.
Provisions considered
- Rule 285-I(i), Uttar Pradesh Zamindari Abolition and Land Reforms Rules, 1952The thirty-day objection process formed the context: only one owner lodged objections, subsequently withdrawn, and the remaining owners had filed none. (¶¶ 6–9, 17–18)
Held
- Names in the cause title did not establish that all owners had filed the auction objections. Only Alok Mitra authorised the advocate, and nothing showed that he acted as attorney for the others. Their later express denial of having authorised him confirmed that the objections were his alone. (¶¶ 7–8, 13–14, 17–18)
- All owners applied for and accepted the surplus sale proceeds after satisfaction of their liabilities. Their failure to object, withdrawal of the only objections and acceptance of the surplus demonstrated acceptance of the auction and amounted to waiver and acquiescence. They were estopped by that conduct from challenging the sale. (¶¶ 9–11, 19–20)
- Waiver involves intentional relinquishment of a known right and may be inferred from acquiescence. Its application depends on the facts and conduct; a party cannot use inconsistent positions to obtain advantage through the courts. (¶ 21–23)
- The High Court overlooked these primary facts in sustaining the undoing of the confirmed auction and prejudiced both the auction purchaser and his transferee. The appeals were allowed and its judgment set aside. (¶ 24–25)
Result
Appeals allowed; High Court judgment upholding the setting aside of the confirmed auction sale set aside.