- (1.) Impleadment ordered. Leave granted.
(2.) This appeal by special leave arises from the judgment and decree of the division bench of the Madras High court made on 24/10/1990 in OSA No. 148 of 1982. The first respondent-Bank laid the suit for the recovery of mortgage amount by sale of 44 acres of land out of 80 acres belonging to Respondents 2, 3 and 7 in this appeal. Pending suit. Respondents 2 and 3 were adjudged as insolvents in IP No. 15 of 1978. In consequence, their right, title and interest held in the land stood vested in the official assignee, the fourth respondent in this court. In insolvency proceedings, the High court by order dated 18/7/1979 directed the official assignee to sell their interest in 44 acres of land by public auction. Since no one was coming forward to purchase the land in the auction, the appellant had offered Rs. 67,500 and by order of the court dated 26/7/1982, the court accepted the appellant's offer of Rs. 77,500. 00. By proceedings dated 18/8/1982, the learned Single Judge confirmed the sale. Feeling aggrieved, on appeal, the seventh respondent, in this court Respondent 9, had offered a sum of Rs. 16,28,000. 00 and Respondent 8 had offered a sum of Rs. 1,50,000. 00 which was later raised to Rs. 2,50,000. 00 respectively. Treating it as an offer, the division bench directed the ninth respondent to deposit 10% of the upset price but he did not deposit the same; the official assignee was also asked to file a report before the division bench on the value of the land prevailing in the neighbourhood. The official assignee has reported that the price of lands in the neighbourhood varies between Rs. 4,000. 00 and Rs. 5,000. 00 per acre and the lands in question would fetch as on 10/12/1990, a sum of Rs. 3,35,000. 00 which was worked out at the rate of Rs 7,600. 00 per acre. The High court has set aside the sale and directed reauction of the land, fixing the upset price offered by the eighth respondent and directed the sale in open auction accordingly.
(3.) Pending proceedings in this court, the seventh respondent had also offered to deposit a sum of Rs. 20,00,000. 00 and as per the direction of this court the order was revoked. When the appeal was dismissed by a short order, on being mentioned by the learned counsel for the respondents to hear the matter on merits, order was passed on 24/7/1995 recalling the order dated 17/7/1995 and setting out the matter for disposal. Thus, this appeal by special leave is being heard.;