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2022 (2) TMI 1388 - SC - Indian LawsRe-auction of the entire properties by fixing the upset price higher than what has been fixed earlier - Sale in favour of highest bidder set aside - representations made by third parties, who did not even participate in the auction proceedings - HELD THAT:- Once the Appellant was found to be the highest bidder in a public auction in which 45 persons had participated and thereafter when the sale was confirmed in his favour and even the sale deed was executed, unless and until it was found that there was any material irregularity and/or illegality in holding the public auction and/or auction/sale was vitiated by any fraud or collusion, it is not open to set aside the auction or sale in favour of a highest bidder on the basis of some representations made by third parties, who did not even participate in the auction proceedings and did not make any offer. Reliance placed in the case of JASBHAI MOTIBHAI DESAI VERSUS ROSHAN KUMAR HAJI BASHIR AHMED [1975 (12) TMI 167 - SUPREME COURT] where it was held that despite adequate opportunity, if a person has not lodged any objection at an appropriate stage and time, he could not be said to have been in fact, grieved - It is also required to be noted that the sale was confirmed in favour of the Appellant by the Commissioner, Endowments Department after obtaining the report of the Assistant Commissioner. Therefore, in the aforesaid facts and circumstances of the case, the High Court ought not to have ordered re-auction of the land in question after a period of 23 years of confirmation of the sale and execution of the sale deed in favour of the auction purchaser by observing that the value of the property might have been much more, otherwise, the object and purpose of holding the public auction and the sanctity of the public auction will be frustrated. Unless there is concrete material and it is established that there was any fraud and/or collusion or the land in question was sold at a throw away price, the sale pursuant to the public auction cannot be set aside at the instance of strangers to the auction proceeding. n the present case, though Shri Jagat Kumar immediately after finalising the auction stated that he is ready and willing to pay a higher price, however, subsequently, he backed out. If the auction/sale pursuant to the public auction is set aside on the basis of the such frivolous and irresponsible representations made by such persons then the sanctity of a public auction would be frustrated and the rights of a genuine bidder would be adversely affected. The impugned judgment and order passed by the Division Bench of the High Court is unsustainable and deserves to be quashed and set aside and is accordingly quashed and set aside - Appeal allowed.
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