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TMI Blog1993 (9) TMI 293X X X X Extracts X X X X X X X X Extracts X X X X ..... e in the tenders and in the open auction it fetched Rs. 45 lakhs. Ultimately when the matter was brought to this court, by our order dated April 4, 1993, we allowed the appeal and directed to sell the plot by open auction between the appellant and Satpal Malik, the second respondent and we fixed the upset price at Rs. 45 lakhs. In the second auction the appellant became the highest bidder for Rs. 1.10 crores. On appeal by the respondent, the Division Bench, while upholding the auction directed the learned company judge to reconsider the matter and to conduct auction afresh. Against the order dated May 26, 1993, this appeal by special leave has been filed. Sri G. Ramaswamy, learned senior counsel for the appellant contended that as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng bidders would be free to participate and offer higher value. If that path is cut down or closed the possibility of fraud or to secure inadequate price or underbidding would loom large. The court would, therefore, have to exercise its discretion wisely and with circumspection and keeping in view the facts and circumstances in each case the steps for conducting the sale would be moulded." Proper control of the proceedings and meaningful intervention by the court would prevent the formation of a syndicate, underbidding and the resultant sale of property for an inadequate price. The order passed by this court yielded the result that the property which would have been finalised at Rs. 45 lakhs, fetched Rs. 1.10 crores and in this court a fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Nos. 9 and 11 read thus : "9. The sale would be subject to such modification/alteration of terms and conditions of sale as the hon'ble court deem fit and proper and the decision of the High Court shall be final. 11. The High Court may set aside the sale in favour of the purchaser/purchasers even after the sale is confirmed and the purchase consideration is paid on such terms and conditions as the court may deem fit and proper for the interest and benefit of creditors, contributories and all concerned and/or for public interest." When the matter was carried in appeal, the Division Bench passed the order on May 5, 1993, to the following effect. "If any conveyance is executed, that will also abide by the result of the appeal." It is sta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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