1. In this appeal, the order of the learned Company Judge (Sadasivayya, J.) dated 24/03/1961, confirming the sale of the Kapila Textile Mills, Nanjungud (in liquidation) held by the Official Liquidator on 18-2-1961, is challenged.

2. The confirmation of the sale is a matter which is essentially within the discretion of the Company Judge. It was observed by a Bench of the Allhabad High Court in Brindaban Agarwala v. Official Liquidator of the Saraswathi Soap and Oil Mills Ltd., AIR 1952 All. 113 that where the property was sold by a public auction by the Official Liquidator subject to the confirmation by the Court, the question whether sale should or should not have been confirmed is a matter which lies within the discretion of the Court and the discretion cannot be interfered with unless sufficient grounds have been disclosed which would justify the conclusion that the Court's discretion was not judicially exercised. In the case before us unless the appellant is able to show that the discretion exercised by the Company Judge is not judicially sound, even if on some aspects we are inclined to take a different view of the matter, yet the order of confirmation will not be interfered with. In the above cited decision it was further observed :
"When property is sold by an Official Liquidator subject to confirmation by the Court, the subsequent offer of a higher bid should not be a ground for refusing confirmation of the sale provided the price is not inadequate".
If I may say so with respect, I agree with both the principles enunciated above and I shall proceed to examine the contentions advanced before us bearing in mind those principles.

3. This case has a fairly long history. The Mills in question went into liquidation on 19/01/1959. The Company Court's efforts to get the parties to agree for a scheme proved fruitless. Hence the Mills in question were ordered to be sold in public auction. The auction was held on 18/06/1960. At that time the highest bid available was Rs.15,25,000/-. The sale was confirmed by the Company Court on 15/07/1960. The present appellant (The Premier Insurance Co., Ltd., Madras) took up the matter in appeal to a Bench of this Court of which I was a member. In that appeal the order confirming the sale was set aside mainly on the ground that the price fetched was wholly inadequate. The fact that the Mills in question had been valued by Experts in 1957 at Rs.25,00,000/- was an important factor that influenced the decision of the appellate Bench. No doubt, other incidental matters were also taken into consideration.
After the decision of the appellate Bench, on 24/08/1960 the Company Court directed the Official Liquidator to hold a fresh auction sale on 19/11/1960. Meanwhile, an attractive scheme was submitted by Sri Morarka. Some time was spent in considering that scheme. But that scheme did not get through as necessary Bank guarantee was not furnished. On 24/01/1961, the Company Court approved the terms and conditions of a fresh sale and ordered that a public auction be held on 18/02/1961. Again some other proposals were placed before the Company Court. So that those proposals may be examined closely, the learned Company Judge directed the Official Liquidator not to advertise the auction sale fixed for 18/02/1961 till 01/02/1961.
But at the same time the Official Liquidator sent circulars to all the persons who had earlier evinced any interest in the matter of purchasing the Mills. He also sent circulars to other Textile Magnates. Running of textile mills required both technical knowledge as well as financial resources. In the very nature of things, only a few persons in this country can be interested in the matter of purchasing Cotton Mills. As mentioned earlier steps to sell the Mills in question were being taken from about the beginning of 1960. The persons interested were aware of this fact.
The Official Liquidator had received several enquiries in that connection. Some of the interested parties had also ins