Law: Civil Procedure Code (V of 1908)

Section: 66(2)(c),83

Court Auction---.--- ---.---Objection---.---Forced sale value of mortgaged property---.---Auction bidders---.---Validity---.---Objection regarding forced sale value of mortgaged property being on lower side has no valid basis---.---Auctions conducted by Courts are often termed as distressed sales and by their very nature it is accepted that price an asset will fetch in such sales shall be well below market price as purchaser(s)/ bidder(s) run risk of getting entangled in Court processes for considerable length of time---.---In a Court auction, where several bidders participate, reserve price of an asset is often base price from where bidding of property exposed to auction may start---.---In other words, reserve price means price with which public auction starts and auction-bidders are prohibited from giving bids below said price---.---Reserve price, however, must still reflect minimum price property may fetch at auction being conducted by Court---.---Forced sale value so determined is price that in opinion of evaluator property will fetch in a Court sale---.---Forced sale value is often maximum price that in estimation of evaluator a property might fetch in a Court sale whereas reserve price is price at which bidding begins. Auction---.--- ---.---Reserve price of property---.---Auction---.---Mortgaged property---.---Validity---.---Courts have alternated between showing concern for debtor and to protect his interest against a decree holder who not unexpectedly desires to sell of mortgaged property only to recover decretal debt and need to ensure that decree is executed in a timely manner---.---If market price is set as criterion for fixing reserve price, there will hardly be any bidding at auction as bidders cannot go past maximum price. Civil Procedure Code, 1908 (V of 1908)---.--- ---.---O. XXI, R. 66(2)(c)---.---Fixation of reserve price---.---Value of property---.---Opinion of Court---.---Scope of---.---Proclamation of sale---.---Validity---.---Object is to relieve Court from burden of affirming accuracy of value of property shown in proclamation of sale and to enable prospective purchaser to form his own opinion relying upon estimates given by…

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