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TMI Blog1993 (1) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... ercised by the learned single judge cannot be said to be unwarranted. Thus the Division Bench of the Calcutta High Court committed manifest illegality in interfering with the order of the learned single judge. The appeal is allowed. The order of the Division Bench is set aside. - CIVIL APPEAL NO. 72 OF 1993 - - - Dated:- 4-1-1993 - K. RAMASWAMY AND N.P. SINGH, JJ. Ashok Desai, Harish N. Salve, Ms. B. Sunita Rao, Rajendra Singhvi and Rakesh Khanna for the Appellant. Rajinder Sachar, B.B. Sawhney and Amlan Ghosh for the Respondent. JUDGMENT K. Ramaswamy, J. Special leave granated. In the winding up proceedings of India Electric Works Ltd. one of its assets, namely, an open land situated in Delhi, was offe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat date. Pursuant thereto the appellant deposited the amount. The Division Bench set aside the order on the ground that "after acceptance of the offer by the company judge, the sale should have been treated as closed and should not have been proper for the court to consider any other offer under subsequent date even if such subsequent offer is higher. The earlier offer already accepted by the court could not be rejected upon some higher offer made later on ; if this course is accepted then there will be no finality in any matter and in such event every now and then the offer already accepted may be upset by rejecting in view of some higher offer". . . "If an offer is accepted then such offer cannot be later on rejected unless there are s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of the company court reopening the concluded sale and reauction was upheld. In Kayjay Industries (P.) Ltd. v. Asnew Drams (P.) Ltd., AIR 1974 SC 1331, in a court sale under Order 21, rule 90 when it was set aside, this court held that a court sale is a forced sale and, notwithstanding the competitive element a public auction, the best price is not often forthcoming. The judge just make a certain margin for this factor. A valuer's report, good as a basis, is not as good as an actual offer and variation within the limits between such an estimate, however careful, and real bids by seasoned business man before the auctioneer are quite on the cards. The businessman makes uncanny calculations before striking a bargain and that circu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ale proceeds would be applied, the learned company judge was right in exercising her discretion to reopen the auction and directing Mr. Shantilal Malik as well to make a higher offer than what was offered by the appellant. In every case it is not necessary that there should be fraud in conducting the sale, though on its proof the sale gets vitiated and it is one of the grounds to set aside the auction sale. Therefore, the discretion exercised by the learned single judge cannot be said to be unwarranted. Under the circumstances, we are satisfied that the Division Bench of the Calcutta High Court committed manifest illegality in interfering with the order of the learned single judge. The appeal is allowed. The order of the Division Bench is s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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