Ajit Singh Bains, J.

1. M/s. Bhagwan Dass and Sons was a company carrying on its business at Hoshiarpur. It was mainly the resin business which was being done by the company. It became a defaulter to the tune of Rs. 36,32,825" to the I.T. Dept. For realizing the arrears, the factories of the aforesaid company were attached under Section 222 of the I.T. Act, 1961 (hereinafter referred to as "the Act"). Since the money, which was in arrears, was not realized by the I.T. Dept. the property was put to auction to satisfy the arrears.

2. Proclamation for sale of the property was issued on 22nd of July, 1970, and the date of auction was fixed on 8th of September, 1970. After that, the date of the auction was postponed three times and ultimately on 23rd of November, 1970, the auction took place. The highest bidder on that day was the petitioner, Shri Chhotu Sood, son of Shri Amrit Lal Sood, grandson of Shri Bhagwan Dass (defaulter) and auction was confirmed in his favour for Rs. 1,41,000. Some other persons including Gurdev Lal had also participated in the auction proceedings. Gurdev Lals bid was Rs. 1,40,000.

3. Certain complaints were made to the authorities that the auction was