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2014 (1) TMI 1342 - HC - Companies LawValidity of auction sale - Auction of mortgaged property of loan guranter - Petitioner has also prayed to declare the auction in question as nullity. Since auction took place during the pendency of the review application - during the pendency of the case before the Tribunal the auction took place, the petitioner raised finger over the several illegalities committed in the auction proceeding - Tribunal rejected petitioner's application holding that auction had already taken place before passing the final impugned judgement and as such the irregularities in auction is not a new fact on which basis impugned order be reviewed - Held that:- Tribunal has not appreciated the petitioner's claim of impleadment and amendment of application correctly as the material information provided to the petitioner regarding irregularities happened in the auction are the relevant and necessary facts which could have been taken on record and since, if the auction is set-aside the same shall prejudice the right of the auction purchaser. I am of the view that the application for impleadment of auction purchaser could have also been allowed. The several irregularities in auction which has been pointed out before this Court require adjudication by the tribunal itself. Order dated 29.11.2010 passed on the application for review is quashed and Review application is allowed and the order dated 03.01.2008 passed in S.A. No. 98 of 2007 is reviewed with the direction that the petitioner's application for impleadment and amendment shall stand allowed to make necessary amendment in S.A. No. 98 of 2007 and thereafter it shall be heard and decided a fresh by the Debt Recovery Tribunal, Lucknow after providing opportunity of hearing to the parties concerned - Since the property auctioned is a dwelling house of the petitioner and the stay order passed by this Court is operating till date, I hereby provide that meanwhile the petitioner shall not be dispossessed from the house in question - Decided in favour of petitioner.
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