Monday, 25 August 2014

Banking / Public Auction - Any irregularity in sale will set aside the sale irrespective of whether possession is given to Auction Purchaser

The Hon'ble Supreme Court in Sadashiv Prasad Singh Vs Harendar Singh & Ors has observed that the rights of an auction-purchaser in the property purchased by him cannot be extinguished except in cases where the said purchase can be assailed on grounds of fraud or collusion.

Recently, the Hon'ble Supreme Court in Subhransu Sekhar Padhi Vs Gunamani Swain & Others has observed that sale of property to an Auction Purchaser is to be set aside when property is sold / auctioned in flagrant violation of rules prescribed, however, Auction Purchaser is a victim of an illegal procedure, therefore, he is entitled to to refund of amount together with 12% interest.


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