Law:

Section:

Civil Procedure Code (V of 1908)-------O. XXI, R.66 & O. XLIII, R.1(j)---Banking Tribunals Ordinance (LVIII of 1984), S.11---Execution proceedings---Setting aside of sale through auction---Failure to give reserve price in auction proclamation of the property under auction---Effect---Contention by the -debtor was that no reserved price of the property was fixed and the same was auctioned at much lower price---Validity---Neither requisite notice was issued to the -debtor nor the reserved price of the property was settled with the result that no one knew about the value of the property and without determining the same offer of the auction-purchaser was accepted---Effect--­If in the first attempt for sale of the property sufficient members of bidders were not available at the site, the auction should have been postponed--­Provisions of O.XXI, R.66, C.P.C. were violated and the property was sold at throw away price without making serious efforts to sell the same at prevailing market price---Where the property was sold in complete disregard of rules and in questionable circumstances; even suo Motu action for setting aside the sale would be justified---High Court directed for re-auction of mortgaged property strictly under the rules---Auction proceedings were set aside in circumstances. AIR 1963 Mad. 156; AIR 1926 Mad. 959; AIR 1970 SC 2037; AIR 1974 SC 1331; PLD 1957 Lah. 1054 and 1996 CLC 192 ref. JUDGMENT AMANULLAH ABBASI, J.--- Suit No. 143 of 1993 filed by present respondent No.1 was decreed in the sum of Rs.16,75,121. Subsequently Execution Application No.70 of 1994 was filed and on 12-11-1995 Chairman, Banking Tribunal-II, passed the orders, relevant portion whereof is as under:-- "In the above circumstances, it is ordered that the mortgaged property be sold by auction as prayed by the D.H. Issue writ of attachment. " Thereafter, notice of sale of property in question by public auction was published in newspaper on 21-7-1996 and the date of auction was fixed as 21-8-1996. According to the appellant there was only one auction purchaser and the property was auctioned to the said purchaser for an amount of Rs.27,00,000 (Rupees twenty-seven lacs). The appellant…

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