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1969 (10) TMI 41 - SC - Companies LawWhether publicity was not as wide as originally proposed by the commissioners in their affidavit? Held that:- The learned company judge having decided to put the property to auction went wrong in not holding the auction as a public auction after due publicity and this has resulted in prejudice to the company and the creditors in that the auction did not fetch adequate price. The prejudice was inherent in the method adopted. The petition of Padam Chand Agarwal also suggested that want of publicity had resulted in prejudice. In these circumstances, the company judge ought not to have confirmed the bid of the appellant in the auction held on 24th December, 1964. We are accordingly of opinion that the Division Bench was right in holding that the order of the company judge, dated 19th February, 1965, should be set aside and there should be fresh sale of the property either by calling sealed tenders or by auction in accordance with law. The tender will be called or the auction will take place with the minimum offer or with the starting bid of ten lakhs of rupees. For these reasons we hold that the judgment of the Division Bench of the Andhra Pradesh High Court, dated 24th September, 1965, is correct and these appeals must be dismissed with costs
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