R Raghu Vs G M Krishna & Anr. (Supreme Court of India)
Auction Sale Stands – Supreme Court Confirms Appellant’s Title but Orders Additional Compensation
The Supreme Court in has delivered an important ruling affirming the validity of an auction sale conducted more than two decades ago, while simultaneously imposing equitable conditions upon the auction purchaser.
The dispute originated when Hoysala Thermo Farmers Pvt. Ltd., managed by respondent G.M. Krishna, defaulted on its loan from Karnataka State Financial Corporation (KSFC). A decree for recovery was passed in 1999. In execution proceedings, Sy. No. 67, Agara Village, measuring 5 acres 20 guntas, was put up for auction. On 19.04.2003, R. Raghu emerged as the successful bidder for ₹18.50 lakhs, and a sale certificate dated 09.09.2005 was issued in his favour as Trustee of Ved Vignam Maha Vidya Peeth (VVMP).
Multiple rounds of litigation followed. Respondent Krishna repeatedly attempted to challenge the sale, alleging that Raghu had misrepresented himself as an agriculturist while in reality purchasing for a Trust, which under the Karnataka Land Reforms Act, 1961 was prohibited from holding agricultural land. Several writ petitions and appeals between 2006 and 2012 upheld Raghu’s title, but in 2014 a fresh attempt was made by way of Misc. Petition No. 157 of 2014 under Section 47 CPC. The Trial Court in 2015 set aside the auction declaring it null and void.
