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2010 (3) TMI 1035 - ALLAHABAD HIGH COURTRepayment of loan by the borrower to the Pradeshiya Industrial and Investment Corporation, Uttar Pradesh ("the PICUP"), as well as auction and sale of the industry on account of default of payment of loan. Held that:- In the present case, the power to auction the property has been given to Collector or Assistant Collector of First Class. The Sub-Divisional Magistrate, who is Assistant Collector of First Class, authorised the Naib Tahsildar Mohanlalganj, to auction the property. On the date of auction, the Naib Tahsildar Mohanlalganj proceeded on leave and in the present case, the property was auctioned by another Naib Tahsildar who was not authorised by the Collector. Thus, the impugned auction and sale of property seems to have been done by a person who was neither Collector nor Assistant Collector. Moreover, under rule 285A only Collector may appoint an Assistant Collector to conduct the auction and sale of property. SubDivisional Magistrate is not competent to nominate or appoint a person/ Naib Tahsildar to hold auction. Accordingly, auction and sale of the property has been done in violation of Rules by a person who was not competent to do so. The petitioner UPCL had filed successive writ petitions challenging the auction proceeding and failing to achieve its object, had filed regular suit and obtained ex parte injunction which was later on, vacated. Thus, the petitioner UPCL approached the civil court as well as this court with uncleaned hands concealing the material facts, and has abused the process of law. The repeated filing of writ petitions in this court against the auction and sale proceeding, the transfer of property in violation of interim order of this court, the concealment of fact with regard to pending of writ petition while filing the R.S. No. 27/2004 and concealment of fact in this court with regard to filing of regular suit, shows a clandestine effort on the part of the UPCL, to abuse of process of law and makes out a case for trial of perjury, contempt of this court as well as imposition of exemplary costs. W.P. dismissed.
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