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TMI Blog1953 (2) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... and the appellant became the purchaser. The proclamation of sale expressly stated that the sale was being held subject to the confirmation of the court. When the official liquidator's report asking for confirmation came up before the court there was before it a petition by respondent No. 1 impeaching the sale on grounds of irregularity and fraud. In his petition respondent No. 1 alleged that the liquidator wrongfully kept out him and several other persons from participating at the auction by declining to receive deposits from them and that in so doing the official liquidator was acting in collusion with the appellant to suit his own ends. According to respondent No. 1 the official liquidator was a partner of the appellant with respect to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t No. I is a "person aggrieved" within the meaning of section 183(5), a careful reading of his order would show that the preliminary point was overruled not for the reason that respondent No. 1 was a "person aggrieved." After referring to the English decisions cited before him the learned Judge states that the direct question whether a person who has been wrongfully excluded by an official liquidator from participating from a sale which he advertises with the sanction of the court, is or is not a "person aggrieved" by the act or decision of the liquidator is not covered by any reported decisions. Then he states that in an Allahabad decision Keshab Deo v. Rajendra Kumar Bhattacharji, Official Receiver, Aligarh, and in a Travancore decision K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... best consideration and are definitely of opinion that the view set out in the above extract is sound. The official liquidator is an officer of the court and to say that a court should ratify an action of his ignoring allegations of misconduct on his part with reference to that action is a proposition which we cannot countenance. Such a proposition seems to be destitute of all authority; and it would be introducing an extremely dangerous rule of law to say that the court should confirm the present auction without enquiring into the contents of the petition impeaching the same. It is the duty of the court to satisfy itself that an action taken by one of its officers under cover of its order is above board. An extract from a decision of Just ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. Section 179(c) of the Indian Companies Act, 1913, only states that the official liquidator shall have power, with the sanction of the court, to sell the immoveable and moveable property of the company by public auction or private contract, etc., and not that he can sell on his own accord. The sanction of the court is a necessary prerequisite and when the sanction accorded expressly states that the sale held by him shall be subject to the confirmation of the court, it is idle to contend that the court cannot enquire into the allegations of misconduct etc., when such allegations come to the court's notice before the court exercises its reserve power to confirm the sale. The reservation is a safeguard against irregularity or fraud in conne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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