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2008 (5) TMI 401 - SC - Indian LawsAuction sale set aside - Held that:- Appeal partly allwed. Ends of justice would be met if respondent No. 3 M/s. MSN Organics (P.) Ltd., who has purchased the property for ₹ 1.80 crores is directed to pay an amount of ₹ 20,00,000 (rupees twenty lakhs only) to the appellant herein. It is true that when the Company Judge set aside the sale on 17-3-2006, the order was reversed by the Division Bench of the High Court since it was in breach of natural justice. That does not, however, mean that the Company Court could not pass fresh order after affording opportunity of hearing to the parties. The Company Court was right in passing fresh order after hearing the parties. If the Recovery Officer could not have confirmed the sale, obviously all actions taken in pursuance of confirmation of sale, such as, issuance of sale certificate, registration of documents, etc., would be of no consequence. Since the Company was in liquidation and Official Liquidator was in charge of the assets of the Company, he ought to have been associated with the auction proceedings, which was not done. This is also clear from the report submitted by the Official Liquidator and on that ground also, the auction sale was liable to be set aside.
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