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2013 Supreme(Del) 1291

High Court of Delhi
JAYANT NATH, J.
Kusum Kumria & Others
Versus
M/s. Pharma Venture (India) Pvt Ltd.
CS(OS) No. 647 of 2006 & IA Nos. 12628 of 2013, 12631 of 2013 (exemption) & 15316 of 2013
Decided on : 03-10-2013

Advocate Appeared:
For the Plaintiffs:M.S. Ahluwalia, Advocate.
For the Defendant:Anil Airi, Ravi Krishan Chandna, Hemant Manjani, Dhruv Tamta, Rohit Priya Ranjan, Advocates.

Headnote:

Civil Procedure Code, 1908 - Order 21, Rule 72, 90, Order 22 Rule 70, Order 11 Rule 12 - Section 151 - Auction sale - Connected bidders - Scope of irregularity in auction - By a consent of the parties order for auction of the whole property except the first floor was passed - Plaintiff was deliberately trying to delay the matter - Three bidders have made earnest deposit - Merely claiming that the three bidders are inter se connected to each other would not vitiate the bid process - Irregularity in the bidding process is a contention which is not based on the record - None of the arguments raised by the plaintiffs in any way would materially prejudice the plaintiffs - Held, it cannot be said that the auction process suffers from any fraud or material irregularity so as to vitiate the auction process - Applicant may deposit the amount by cheque - Balance sale price may also be deposited within 15 days - Applications are disposed of.

Judgment :

Jayant Nath, J.

1. These are the objections filed by plaintiff No. 1 to the auction sale conducted by the Court Auctioneer on 26.07.2013 under Order 21 Rule 90 CPC. As per the report of the Court Auctioneer bid of DKG Buildwell Pvt. Ltd. is the highest at Rs.10.45 crores. This Court on 08.05.2013 had passed an order to conduct the auction of the suit property comprising of basement, ground floor and second floor of property No. W-152, Greater Kailash, Part 1, New Delhi at a reserve price of Rs. 10 crore. Plaintiffs are co-owners of 50% of the property while defendants are co-owners of 50%. The plaintiff had filed an appeal against the said order dated 8.5.2013 being FAO(OS) No. 338/2013. It appears that on 26.07.2013, the Division Bench had passed an interim order staying the auction proceedings. The auction, however, was completed by the Court Auctioneer. Subsequently, the Division Bench on 29.08.2013 permitted the appellant (plaintiff No. 1 herein) to withdraw the appeal. The appeal was withdrawn and the interim order was vacated. The counsel for the appellant (plaintiff No.1 herein) had sought permission to record her objections to the auction conducted pursuant to the impugned order. The Division Bench had noted that if such right is available in law, the same can be exercised by the appellant. The present application has been filed based on the said permission which was granted by the Division Bench.

2. At the outset, learned counsel appearing for the defendants submits that he does not wish to file a reply and would like to argue the same without any reply, based on the record of the case.

3. Learned counsel appearing for the plaintiffs has submitted that a fraud has been played on the Court by the Court Auctioneer and his associates. It is stated that despite being informed that the Division Bench has passed a stay order on 26.07.2013, the Court Auctioneer continued with the auction.

4. It is further submitted that there were three bidders in the auction, namely, M/s Green Valley Hospitality Pvt. Ltd., M/s DKG Buildwell Pvt. Ltd. and M/s Chase Avian Communication Pvt. Ltd. It is submitted that the said bidders are mixed up with each other having common directors and essentially one and the same person. It is further argued that these persons are all inter connected with the defendants and essentially, it is the defendants who have made this bid. It is argued that the earnest money of Rs. 1 Crore has been deposited by Green Valley Hospitality Pvt. Ltd. And DKG Buildwell Pvt. Ltd. Their draft will show that the bank drafts have been made from the same bank branch at the same time bearing consecutive numbers and both are dated 18.07.2013. It is further stated that Green Valley Hospitality Pvt. Ltd. was represented by Sh. Ankush Pughat in the bid, whereas DKG Buildwell Pvt. Ltd was represented through Sh. D.K. Gupta. It is stated that DKG Buildwell Pvt. Ltd. had deposited a draft of Rs. 1 crore which bears the name of Sh. Surinder Sahlot who is stated to have given the order to make the draft. It is stated that Sh. Surinder Sahlot as well as Ankush Pughat are together directors of Aerofield Flying Academy Pvt. Ltd. It is stated that Surinder Sahlot is the main man behind the bid and happens to be the man of the defendants. Reliance is placed on the provisions of Order 22 Rule 72 CPC to claim that a party to the proceedings cannot make a bid.

5. It is further stated that the Company-DKG Buildwell Pvt. Ltd. declared as the successful bidder by the Court Auctioneer is a dummy company just having authorised capital of Rs. 25 lacs and has no financial capacity to purchase the property in auction. It is stated that this so called successful bidder is only a speculator company who on taking loan will purchase the property and sell it for profit. Hence, it is stated that under Order 21 Rule 90 CPC, a fraud has been played on the court and the present auction bid is liable to be cancelled.

6. It is further stated that a p




























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