Law: Civil Procedure Code (V of 1908)

Section: O.XXI,R.89,90

(a) Civil Procedure Code (V of 1908)--- ----O. XXI, R. 89---Auction proceedings---Power of Court to set aside auction---Grounds---Land sold at less than Deputy Commissioner (DC) value---Auction not conducted at the spot---Substantial loss to the debtor---In a situation where a property was sold for less than its value, by availing the benefit of O.XXI, R. 89, C.P.C., the debtor or any other person holding interest in such property may challenge the sale and retrieve the property from the purchaser by depositing the purchase price together with 5% of such price in Court---Subject land, in the present case, measuring 25 acres was sold for a paltry sum of Rs. 2.6 Million which translated into Rs.96,635 per acre---Said amount was not only less than the actual market value of the land, but was also substantially less than the Deputy Commissioner (DC) rate which was in the sum of Rs.6,06,400/- per acre---Calculated as per criteria of DC rate and not considering the real market value of the land, the value of 25 acres came to Rs.15,160,000---No plausible or reasonable explanation was provided for the huge difference between the value represented by the auction price and the real market value---Land in question was indeed sold at a throw away price causing substantial injury and loss to the debtor---Further, there was evidence on record that the auction proceedings were not conducted at the spot---Such fact casted serious doubts upon the sanctity of the auction and the entire process which led to such auction---Upon coming to the conclusion that a property had been sold for less than its market value, the Court was not denuded of its jurisdiction to set aside such sale on account of inadequacy of price alone---Record indicated that the executing court never confirmed the auction, therefore, no vested right had accrued in favour of the auction purchaser---Petition for leave to appeal was dismissed in circumstances. Lanvin Trader's case 2013 SCMR 1419 ref. (b) Civil Procedure Code (V of 1908)--- ----O. XXI, R. 89---Auction proceedings---Power of Court to set aside auction--- Scope--- Court had the power to set aside any auction if the same was proved to have been…

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