Ludovico Sagrado Goveia vs Cirila Rosa Maria Pinto & Ors

The Supreme Court upheld the validity of the auction sale conducted under Section 76 of the Multi State Cooperative Societies Act, 1984, affirming that the borrower failed to follow the prescribed procedure under Rule 37(13) of the Multi State Cooperative Society Rules, 2002, which would have allowed them to set aside the sale. The Court emphasized that the absence of the borrower during the recovery proceedings and their failure to repay the loan justified the auction sale. Consequently, the appeal by the successful purchaser was allowed, and the High Court's decision was set aside.