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2016 (3) TMI 121 - PUNJAB AND HARYANA HIGH COURT

2016 (3) TMI 121 - PUNJAB AND HARYANA HIGH COURT - TMI - Auction sale - whether the auction was conducted in a fair and transparent manner? - introduction of a different buyer - Held that:- Considering that the petitioner had defaulted in making good the offer of deposit ₹ 21 lacs within one week and he had moved the second application after more a year of the auction, the Recovery Officer rightly found that the intention of the petitioner was not bona fide and he merely intended to delay .....

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r, he introduced the father of Sh. Shivam Aggarwal and still later Mr. Anand Goyal as the intending buyer. Thus, introducing a new purchaser every time. - Despite many legal hurdles in the maintainability of his appeals the petitioner has been given more than a fair latitude to furnish a better buyer. Clearly this process of inter se bidding cannot be carried on ad infinitum. The auction was held on 05.02.2007. No legal or procedural infirmity having been found in the auction proceedings, it .....

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3.10.2013 (Annexure P-11) and 18.12.2015 (Annexure P-19), whereby the auction sale of the property of the petitioner has been upheld. In execution of RC No.525/06 for ₹ 36,91,374.53 in case of SBI Vs. Madan Lal Lakhpati Rai, 75% land ad-measuring 2 Kanals within the premises of Gurdeep Cycle (Singla and Co.) Single Cycle Road, Dahandari Kalan, Ludhiana owned by the petitioner was put to public auction on 05.02.2007. The highest bidder M/s Ashoka Inds. Fasterers was declared as purchaser fo .....

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ly given by the Bank, auction purchaser, report of the Court Auctioneer, it was concluded that the auction had been conducted as per Rules. Accordingly, all objections related to the procedure of auction were dismissed. However, the issue regarding offer of ₹ 21 lacs were kept open. Vide notice dated 11.3.2008, the petitioner was given one more chance to bring the best buyer for ₹ 21 lacs and deposit the amount within 7 days to show his bonafide. It was clearly mentioned in the notic .....

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ng to purchase the land for ₹ 18 lacs. Demand drafts for ₹ 4.50 lacs i.e. 25% of the offered money were enclosed with the application. The Recovery Officer concluded that the intention of the petitioner was not bonafide. It was noted that the objections were raised by the petitioner without deposit of amount along with interest and penalty as required under Rule 60 of the 2nd Schedule of the Income Tax Act, 1961. As against the initial offer of ₹ 21 lacs offer for lesser amount .....

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itioner and others and dismissed the appeal vide order 23.10.2013. With regard to the objections of the petitioner regarding the change of date of auction from 28.01.2007 to 05.02.2007, it was observed that the same had been done to rectify an error as the earlier date i.e. 28.01.2007 happened to be a Sunday. Proper intimation, publicity and publication was given regarding the changed date besides affixing notice at the site. Three bidders were present at the time of auction and had tendered dra .....

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er getting valuation and for the best price as per prevalent market condition. Dissatisfied with the said order, the petitioner preferred an appeal before the Debts Recovery Appellate Tribunal, Delhi. During the course of the hearing before the Appellate Tribunal on 08.10.2014, counsel for the petitioner was asked if he had a better buyer who could offer the present prevalent rate. Counsel for the petitioner asked for one week's time, which was granted. On the next date, the petitioner and f .....

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ascertain the bona fide of the intending buyer, he was directed to deposit ₹ 24 lacs within 10 days. The intending buyer this time, was a person named Anand Goyal. He deposited an amount of ₹ 24 lacs with the Registrar of the Tribunal. An option was given to auction purchaser to match the bid, which he did. The petitioner then stated that he would pay a sum of ₹ 25 lacs. This amount was also matched by the auction purchaser. Thereafter, the petitioner offered to deposit an addi .....

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rayed for time to move an appropriate application. However, more than three hearings and seven months of the objection being raised still further time was sought to move such an application on 03.11.2015, which was allowed subject to payment of ₹ 2,000 as costs and it was observed that if the petitioner failed to move the application within one week, the appeal would heard as it was. Though the costs were paid but no application regarding waiver of the pre-deposit was found on record. Acco .....

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ve to be returned to the auction purchaser. However, despite holding the appeal to be not maintainable, the learned Appellate Tribunal considered the issue on merits as well. It was held that the intending purchaser was a newly introduced person, who had no right to bid for the property. It was held that the petitioner having earlier stated that he had not been able to arrange a better buyer, could not be permitted to introduce one person after another as intending buyer. If any, person had any .....

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pate in the inter- se bidding and expressed his readiness to pay a sum of ₹ 25 lacs, it was directed that he could not resile from his commitment and he was accordingly directed to deposit the balance amount with the Bank failing which, the Bank would be entitled to recover the amount from him in accordance with law. Learned counsel for the petitioner has primarily argued that as the learned Appellate Tribunal had permitted the petitioner to bring a better buyer and as the auction purchase .....

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le to agree with the learned counsel for the petitioner. No irregularity in the auction has been pointed by the learned counsel for the petitioner and all the Forums below have held that the auction was conducted in a fair and transparent manner. The petitioner in his first application before the Recovery Officer offered to produce a better buyer for ₹ 21 lacs. Vide notice dated 11.03.2008, he was given seven days' time to deposit the amount of ₹ 21 lacs to show his bonafide whic .....

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