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2000 (7) TMI 846 - SC - Companies LawWhether or not it is a consequence of any irregularity or fraud in the conduct of sale? Held that:- Confirmation of the sale by a Court at grossly inadequate price, whether or not it is a consequence of any irregularity or fraud in the conduct of sale, could be set aside on the ground that it was not just and proper exercise of judicial discretion. In such cases, a meaningful intervention by the Court may prevent, to some extent, underbidding at the time of auction through the Court. In the present case, the Court has reviewed its exercise of judicial discretion within a shortest time. In the result, Civil Appeal filed by ‘Divya’ and ‘Samity’ stand dismissed. Interim order stands vacated. Pending hearing and disposal of this appeal as the order passed by the Division Bench of the High Court was stayed, fresh directions are required to be obtained from the Court for finding the time table for conduct of the auction sale. Hence, the Liquidator is directed to take appropriate steps at the earliest, by obtaining an order from the Court for sale of the property by calling sealed tenders or by auction in accordance with law after giving due publicity in the newspapers, particularly, the newspapers having circulation in Delhi and in the State of Haryana with a reserved price fixed at Rs. 2 crores (as offered). The parties are directed to bear their respective costs.
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