Page 1

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NOS.  4119-4120   OF 2013 (SPECIAL LEAVE PETITION(CIVIL)NOS.34282-34283 OF 2012)  

M/S.ABHAYANANDA ASSOCIATES                        APPELLANT  

                VERSUS

THE AUTHORISED OFFICER & ANR.                     RESPONDENTS

O R D E R

1. Leave granted.

2. These appeals, by special leave, are directed against  

the judgment and order passed by the High Court of Karnataka at  

Bangalore in Writ Appeal No. 4856 of 2011 and Writ Appeal No.  

5359 of 2012, dated 13.09.2012.  By the impugned judgment and  

order, the High Court had dismissed the appeals filed by the  

auction  purchaser  questioning  the  demands  raised  by  the  

Corporation of City of  Mangalore for payment of the property  

tax.

3. Before this Court, the  appellant-company  has given  

an undertaking that the company would deposit the property tax  

of Rs.20 lacs as demanded by the Corporation.  In view of that,  

this  Court  had  issued  notice  to  the  respondents.   The  

appellant-Company has now deposited a sum of Rs. 20 lacs in the  

State Bank of Travancore.

4. When the matters were taken up for hearing, learned  

counsel  for  the  appellant-company  had  submitted  that  he  is  

ready and willing to deposit the entire auction amount to the  

respondent-bank and would further  undertake  to pay any other

Page 2

: 2 :

liability such as property tax, etc. for the immovable property  

in question.  The appellant-company has now filed an affidavit  

of undertaking before this Court categorically stating therein  

that the company would undertake to pay the property tax, etc.  

as and when it is due from the respondent-bank.  The affidavit  

of  undertaking  filed  by  the  appellant-company  dated,  

14.03.2013, is taken on record and the same would be made the  

part of the Decree.

5. In view of the affidavit of Undertaking given by the  

appellant-company, we are of the view that the judgment  and  

order  passed  by  the  High  Court  requires  to  be  modified.  

Accordingly, while disposing of these appeals, we direct the  

appellant-company to pay the amount(s) due to the respondent-

bank as on the date of the auction.  On such payment, the bank  

is directed to issue an appropriate sale certificate to the  

appellant-company.   

6. We further direct that the appellant-company is also  

liable for all other payments towards the property in question  

as and when the demands are raised by the Corporation of City  

of Mangalore and/or any other authorities.

Ordered accordingly.

....................J. (H.L. DATTU)

....................J. (JAGDISH SINGH KHEHAR)

NEW DELHI; APRIL 26, 2013