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2016 (9) TMI 350 - SC - Indian LawsSale of the mortgaged properties set aside - orders of Debts Recovery Tribunal - HC refusing to set aside the sale of the mortgaged properties - Held that:- The offset price was fixed on the basis of a report of the Valuation Officer and in the fixation of the said price the respondents were associated being party to the proceedings before the DRT. That apart the said grievance of the respondents-borrowers must be considered in the light of the fact that the respondents-borrowers had persistently failed either to liquidate the dues or to bring a willing purchaser who could offer a reasonable price for the mortgaged properties. Insofar as the Second Schedule of Income Tax Rules, 1961 are concerned, nothing has been brought to our notice which can be construed as imposing a restriction on the Bank from participating in the bid/auction once the invitation to bid did not result in any response from any interested bidder. Rule 17 of the Second Schedule of Income Tax Rules, 1961 to which reference has been made by the High Court, in our considered view, does not impose such a restriction inasmuch as it is the Recovery Officer on whom such an embargo has been placed. In this regard the provisions of Rule 59 of the Second Schedule of Income Tax Rules, which permit the Assessing Officer to take part in the auction would be of a particular significance. In the light of the above, the conclusion of the High Court that the auction sale in favour of the Bank is vitiated on account of violation of the Rule 17 of the Second Schedule of Income Tax Rules, 1961, cannot be accepted. Both the grounds relied upon by the High Court to come to the impugned conclusion not having been found to be acceptable, these appeals have to be allowed. We, accordingly, set aside the order of the High Court.
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