Auction sale at lower than real value. (A) Maharashtra Cooperative Societies Act, 1960, Section 91—(SARFACEI Act—DRT Act)—Recovery of debt by sale of property—If the Creditor sold property of Debtor, through auction, at a lesser price, without delay, said sale to be impugned—Otherwise no right to claim cancellation of sale. (Para 30-4, 5) (B) Constitution of India, Article 226—Writ jurisdiction—When not maintainable—The explanation that the appellant was busy in obtaining information after the auction sale was conducted for launching an attack on the process of sale could be correct on facts but by that, precious time was lost—Law is well-settled that a writ court does not encourage petitions from indolent, tardy and lethargic litigants; the writ court comes to the aid of a litig...

Auction sale to recover debts. Insolvency and Bankruptcy Code, 2016, Section 61—Appellant filed Appeal to impugn order passed by the Adjudicating Authority allowing an application moved by the successful bidder, M/s KMC Speciality Hospitals (India) Limited for extension of time to deposit the balance sale consideration after the Central/State lockdown was lifted—All the aforesaid appeals were dismissed by the Tribunal under the impugned judgment—Well settled legal position that once an auction is confirmed, it ought to be interfered with on fairly limited grounds—Unless there are some serious flaws in the conduct of the auction as for example perpetration of a fraud/collusion, grave irregularities that go to the root of such an auction, courts must ordinarily refrain from setting them aside keeping in mind the d...

Auction—Code of Civil Procedure, 1908—Order XXI, Rule 90—Maharashtra Land Revenue Code, 1966—Section 247—Auction proceedings—Conducted by Tehsildar—Legality, validity and propriety of—Litigation relates to—Determination of—Sale of property took place before expiry of mandatory 30 days notice—This clearly shows that sale was conducted in breach of provisions of Section 194 of Revenue Code—Once it is evident that mandatory provisions as stipulated under Rules and Regulations are not followed or abridged, any action pursuant to same could be termed as gross illegality—High Court committed no error, much less any error of law—Supreme Court affirmed impugned judgment and order passed by High Court and directed appellant to deposit a sum of Rs. 4,00,00,000/- wit...

Auction Sale—Revision Petitions arose from Executing Court's orders on Decree in O.S.No.175 of 2016—Petitioner, Judgment Debtor, sought relief against dismissal orders in various applications related to auction sale—Court noted maintainability issue for CRP No.959/2020 but found Executing Court's actions during pending CRP erroneous—Despite interim stay, Executing Court disposed of two applications, rendering its orders void—CRPs disposed, directing petitioner to pursue remedies lawfully—No costs incurred. ...

(A) Indian Contract Act,1872—Sections 73 and 74—Breach of contract—Damages in contract law are awarded solely for losses directly resulting from a breach, not for remote or indirect losses—However, if special circumstances, such as dependency on the performance of other contracts, are communicated and known to both parties, damages may cover losses related to those dependent contracts—Conversely, if such circumstances were not communicated to the party in breach, damages are limited to losses foreseeable at the time of contract formation—The principle ensures that parties are accountable for foreseeable consequences of their actions while considering the reasonable contemplation of both parties. (Para 52) (B) Securitization and Reconstruction of Financial Assets and Enforcement of Security Inter...

Auction Sale—Proceeding with the sale based on a defective notice and an outdated reserve price could lead to extensive challenges and complications. This would adversely affect all stakeholders involved in the sale process, creating ongoing legal issues at subsequent stages. To avoid negative consequences, it is advisable not to permit the sale under these circumstances. ...

A. The Insolvency and Bankruptcy Code, 2016, Section 5(24), 29A(g)—Defines a 'related party' in the context of a corporate debtor—This includes directors, partners, and their relatives. It also covers situations where a director, partner, or manager of the corporate debtor, along with their relatives, collectively holds more than two percent of the share capital of another private or public company. B. Regarding individuals, 'related party' includes relatives of the individual or their spouse. It also encompasses situations where an individual is a director of a company and, along with relatives, holds more than two percent of the company's share capital—The explanation clarifies that both maternal and paternal uncles are considered 'related parties.' C. Section 29A(g) of the Insolv...

A—Re-auction of Property: The High Court erred in ordering a re-auction of properties after 23 years post-confirmation of sale and execution of the sale deed, based on the observation that the current value might be higher—The valuation at the time of the auction, not the current value, should be the relevant consideration—Re-auctioning with a higher upset price undermines the purpose and sanctity of the public auction process, which is intended to be fair and final at the time of the original sale. (Paras 8.2 and 8.13) B—Public Interest Litigation (PIL): High Courts must exercise discernment and caution when dealing with PILs—They should encourage bona fide PILs while discouraging those filed for extraneous reasons—Key considerations include: (1) Verifying the petitioner’s credentials; (2) Ens...

Uttar Pradesh Revenue Code, 2006—Section 189, Section 190—The petitioner challenged the cancellation of an auction sale and subsequent order by the Collector and the Commissioner—The petitioner had bid for a property but failed to deposit one-fourth of the bid amount on the date of the auction, as required by Section 189 of the U.P. Revenue Code, 2006—The authorities allowed the petitioner to deposit this amount later, and the property was not immediately put to re-auction, as per Section 189. The court found that the forfeiture of the amount deposited on the auction date was warranted, while the amount deposited later should be refunded to the petitioner. ...

Transfer of Property Act, 1882—Section 60, Section 91—Civil Procedure Code, 1908—Order 34, Rule 1—Purchased the mortgaged property, argued that they had the right to redeem it—However, the court held that their right to redemption had been extinguished due to a prior court decree and auction sale—Court emphasized that the right to redeem can be lost under certain circumstances as per the Transfer of Property Act. Therefore, the appeals were dismissed. ...

Recovery of Debts Due To Banks And Financial Institutions Act, 1993, Section 20—Debt Recovery Appellate Tribunal (Procedure) Rules, 1994, Rule 22—Constitution of India, 1950 Article 136—Debt Recovery—Auction sale of mortgaged property—Sale deed also executed—DRAT set aside confirmed sale on ground that borrower is not left with any other property and he has already paid consideration to auction purchaser—Order of DRAT set aside. [Para 7]...

Civil Procedure Code, 1908, Order 21, Rule 90—Auction sale—Improper valuation—Auction challenged on ground of improper valuation of property at time of sale—Held: Property valuing more than 1 Crore, sold at paltry amount of Rs, 5,50,000/- which is sufficient ground to set aside sale. [Para 5] ...

Civil Procedure Code, Order XXI Rule 95—Limitation Act, 1963, Article 134—Limitation—Delivery of possession by a purchaser of immovable property— At a sale in execution of a decree—Judgment—debtor had filed two applications E.A.No.315/2001- (i) to set aside the sale alleging that the property was sold for a lower price as a result of which substantial injury was caused to him and (ii) another application in E.A. No.77/2002- an application for appointing Advocate—Commissioner to assess the value of the property—As against the order dismissing E.A.No.77/2002, the judgment-debtor has filed the revision in C.R.P.No.2829/2002 the same came to be disposed of on 9th July, 2003 - So long as the said revision was pending, the court auction sale was yet to become absolute—In Article 134 of ...

Auction sale — Karnataka Cooperative Societies Act, 1959, Section 89A — Karnataka Cooperative Societies Rules, Rule 38 — Auction sale — Confirmation of sale — Debtor did not prefer application for setting aside the sale, inconformity with the remedy provided in that behalf in terms of Section 89A of the Act, 1959 read with Rule 38 of the Rules — That remedy could be availed by the debtor only after depositing the awarded amount together with interest thereon with the Recovery Officer, in terms of Rule 38(4)(a) of the Rules — The application as filed by the debtor was dismissed by the ARCS on 14.10.2008 - Resultantly, the Competent Authority proceeded to confirm the auction sale on 02.03.2009, followed by grant of a certificate of sale and execution of a Sale Deed in the prescribed Form &mdash...

Auction sale — Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, Section 13(2), 17(1) —  Security Interest (Enforcement) Rules, 2002, Rule 9 — SARFAESI —  Auction sale — Concurrent findings of fact arrived at by the Debt Recovery Appellate Tribunal as well as the High Court about the fact that undue haste was made by the creditor bank in holding the auction — Creditor bank could have waited for some time when the proceedings were pending before the Tribunal as well as the High Court before conducting the auction and confirming the sale — Do not find any reason to disturb the concurrent findings arrived at by the Debt Recovery Appellate Tribunal as well as the High Court about the irregularities committed in holding the auction. ...

Auction sale—The properties had been attached, SEBI appear to have denied the sale certificates to the highest bidders and refunded the amount deposited by them—After deposit of the forfeitable security amount the highest bidder does not make good his offer or does not participate in the auction. the amount so deposited shall be liable to be forfeited—One of the properties, does not attract any bid higher than the one received by SEBI in the first auction, the SEBI shall be free to finalise the sale and to issue the requisite sale Certificate in favour of highest successful bidder in the previous auction ...

Auction sale — Multi State Co-operative Societies Act, 2002, Section 84, 94, 126(6) — Multi State Co-operative Society Rules, 1985, Rule 22 — Multi State Co-operative Society Rules, 2002, Rule 37(13) — Debt Recovery — Auction sale — Award of Registrar — Execution of — Repeal of Statute — Appellant highest bidder deposited the entire amount and sale certificate issued in his favour — Without availing of the procedure provided by Rule 37 (13) of the Rules, 2002 by which the defaulter/ borrower could approach the authorities with an amount of 5% to be paid to the auction purchaser together with the full amount of the outstanding loan and expenses of attachment and sale to the decree holder, with interest thereon, within 30 days of confirmation of sale, borrower did not repay at...

Civil Procedure Code, 1908—Section 65—Auction sale—Title of purchaser—bank has not engaged in any illegal activities either when purchasing a property in an auction conducted by the court or when selling the property—The respondents have no legal right to claim a share in the proceeds from the sale of the property after the bank became the owner of the property—The adverse comments made by the Division Bench against the bank are unjustified and should be removed. ...

Constitution of India, 1950—Article 133—Auction sale of the property—Aggrieved by the recovery proceedings initiated against him, which led to the auction sale of his property—The court has clarified that if there is an Amnesty Scheme available to the appellant and if the appellant is willing to pay the amounts as per the Scheme, the auction proceedings may be recalled, and the property may be restored to the appellant—Furthermore, the amount of Rs. 10 lakhs deposited as per the court's order will be adjusted towards the amounts owed by the appellant as per the Amnesty Scheme—As a result, the appeal has been disposed of. ...

Auction—Auction sale of agricultural land—Appellant was sole bidder for land—Dispute arose over the sale of agricultural land in Indore, Madhya Pradesh, by the Appellant—The land's physical measurement was less than what was offered, prompting the Appellant to request a pro-rata decrease in the price—The High Court initially declined this request—However, the Supreme Court found the Appellant's request justified and directed the Committee to adjust the price accordingly—Additionally, the Appellant was permitted to nominate individuals for the sale deeds, and any excess amount paid would be refunded by the Committee—The appeals were allowed on these terms. ...

Civil Procedure Code, 1908 (CPC) - Order 21 Rule 84, Order 21 Rule 85, Order 21 Rule 89, Order 21 Rule 89(1), Order 21 Rule 89(4), Order 21 Rule 90, Order 21 Rule 91, Order 21 Rule 92, Order 21 Rule 92(1), Order 21 Rule 92(2), Order 21 Rule 94, Order 21 Rule 95Limitation Act, 1963 - Article 127—Court proceeding, depositing the necessary purchase money in court is a mandatory requirement—Deposit must occur within the specified time frame, and any delay results in the application's dismissal—Deposit, governed by Rule 89 of Order 21 of the CPC, should be unconditional, allowing the decree holder or auction purchaser immediate access to the funds—Late offers to deposit the amount cannot be considered.   ...

Civil Procedure Code, 1908 (CPC)—Order 21 Rule 54(2), Order 21 Rule 66,—Partition Act, 1893—Section 2, Section 3—This appeal concerns the setting aside of a court sale of disputed property, challenged by the appellant—The Trial Court ordered the sale due to the non-partibility of the property following a partition suit—The appellant emerged as the highest bidder at Rs. 12 lakhs—The respondent No. 1 moved to set aside the sale, presenting an offer of Rs. 18 lakhs, but failed to produce the alleged purchaser—The Trial Court confirmed the sale, emphasizing proper procedure—However, the High Court set aside the sale, citing lack of notice and procedural violations—The Supreme Court overturned the High Court's decision, finding no substantial injury and upholding the sale. &nbs...

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Civil Procedure Code, 1908 (CPC)—Section 48—Foreclosure suit sale invalidated due to procedural irregularities by single Judge—Appellate Division Bench sets aside sale confirmation, orders lawful auction—Scope of suit cannot be expanded post-final decree—No opinion on rights of specific respondents—Appeal allowed without costs. ...

Civil Procedure Code, 1908 (CPC)—Order 21 Rule 22, Order 21 Rule 54—Appealed against the dismissal of their petition to set aside an auction sale in a civil revision filed by the decree-holder—The dispute arose from a loan decree passed in 1964—The judgment-debtor deposited the decree amount in court, but subsequent execution proceedings were conducted without proper notice—The executing court set aside the sale, but the lower appellate court erred in finding the application time-barred—It also disregarded procedural irregularities, including improper service of notices and publication of sale proclamation—The Supreme Court held that the judgment-debtor's ignorance of the proceedings resulted in substantial loss and injustice—The judgments of the lower courts were set aside, and the exec...

Civil Procedure Code, 1908 (CPC)—Order 21 Rule 58, Order 21 Rule 63—Auction sale - Appeal arises from a dispute over possession of a house—The appellants contested that the sale of the house in a court auction, which led to the respondents obtaining ownership, was invalid due to the absence of one joint owner, Jamnadas, in the lawsuit—Despite Jamnadas not being party to the suit, the High Court upheld the sale, concluding that the sale certificate was conclusive—The court dismissed the appellants' arguments regarding the auction sale's validity and the lack of res judicata effect of prior proceedings—However, considering equitable factors, the court directed the appellants to pay Rs. 50,000 to the respondents in exchange for retaining possession of the southern half of the house, modifying ...

Civil Procedure Code, 1908 (CPC)—Order 21 Rule 89, Order 21 Rule 90, Section 47—Money decree against the appellants, leading to the auction sale of their house and shop, which was purchased by respondent No. 3 (auction-purchaser)—The appellants sought to set aside the sale and deposited the requisite amount in court—The lower courts erroneously treated the Section 47 objections as an application under Order 21, Rule 90, thereby barring the application under Rule 89—The Supreme Court held that the lower courts erred in conflating the two applications and that the bar under Order 21, Rule 89(2) did not apply—However, to provide equitable relief to the auction-purchaser, the Court directed that the auction sale be set aside upon the appellants paying respondent No. 3 Rs. 1,44,000 with 12% interest per annu...

Civil Procedure Code, 1908 (CPC)—Order 21 Rule 90, Order 21 Rule 92—Appeal arises from a longstanding dispute over the ownership of a property auctioned in 1942—The High Court ruled against the appellant, Sagar Mahila Vidyalaya, stating that the sale certificate issued to them was invalid—However, the Supreme Court disagreed, citing legal proceedings and the execution of the sale—The Court found the sale valid and upheld the appellant's ownership rights—Therefore, the appeal was allowed, and the suit dismissed with costs. ...

Civil Procedure Code, 1908 (CPC)—Order 21 Rule 66—An appeal by special leave, the Supreme Court considered an application to set aside the sale of a cinema property in execution of a decree—The appellants contested that there was no compliance with Order XXI Rule 66 and that the sale was adjourned without proper announcement, leading to bidder exclusion—While the Court refrained from addressing the compliance issue directly, it emphasized the necessity for courts to diligently follow procedural requirements—Regarding the sale's adjournment, evidence suggested no proper announcement, and crucially, none of the bidders from the initial auction participated in the subsequent one, indicating lack of awareness—Despite the auctioneer's note, the absence of crucial witness testimony and inadequate...

Civil Procedure Code, 1908 (CPC)—Order 21 Rule 58, Order 21 Rule 63, Order 21 Rule 95—Delivery of possession to a purchaser in a court sale—Rule 95 mandates physical possession, with the court removing occupants if necessary—Rule 96 allows symbolic possession in certain cases—Physical possession is granted when: (1) the property is occupied by the judgment-debtor, (2) occupied on their behalf, or (3) by a person claiming under a post-attachment title—The purchaser must obtain a court certificate under Rule 94. ...

Civil Procedure Code, 1908 (CPC) - Order 21 Rule 90, Order 21 Rule 90(1), Order 21 Rule 92, Order 21 Rule 92(3), Order 34 Rule 5, Order 9 Rule 13, Section 100, Section 101—Auction sale—The case involves an appeal arising from a suit to set aside a final decree and auction sale of a house due to alleged fraud—The plaintiff, Hayat Ullah, claimed that defendants conspired to fraudulently obtain the decree and auction the house belonging to him—The court found evidence supporting the plaintiff's claims, including false service of notices and collusion among defendants—It rejected arguments defending the auction sale's validity, emphasizing equitable considerations and the need to rectify fraud—The court dismissed the appeal, upholding the lower court's decision to set aside the decree and auctio...