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Property sale set aside under CPC only if substantial injury caused due to irregularity or fraud

The SUPREME COURT in Chilamkurti Bala Subrahmanyam VS Samanthapudi Vijaya Lakshmi & Anr, while referring to the judgment in Saheb Khan vs. Mohd. Yousufuddin & Ors., held that it is not the material irregularity that alone is sufficient for setting aside of the sale. The applicant has to go further and establish to the satisfaction of the Court that the material irregularity or fraud, as the case may be, has resulted in causing substantial injury to the applicant in conducting the sale. It is only then the sale so conducted could be set aside under Order 21 Rule 90(2) of the Code.

BG cannot be invoked for outstanding of a different company

Bank Guarantee; Adhunik Power and Natural Resources Limited Vs. Central Coalfields Limited [Jharkhand High Court, 11-04-2017]  Case Law Bank Guarantee Manohar Lal Sharma v. Principal Secretary vide judgment dated 24.9.2014,reported in 2014(9) SCC 614 M/s Gangotri Enterprises Ltd. v. Union of India & others reported in 2016 SCC Online SC 415 Hindustan Construction Co. Ltd. v. State of Bihar & others reported in 1999(8) SCC 436 M/s Adani Agri Fresh Ltd. v. Mahaboob Sharif & others reported in 2015 SSC Online 1302 Oil and Natural Gas Corporation Ltd. v. M/s Jindal Drilling and Industries Limited reported in 2015-(ARI)-GJX-0034-BOM. Balwant Rai Saluja and another v. Air India Limited and others reported in 2014(9) SCC 407 Indowind Energy Limited v. Wescare India Limited and another reported in 2010(5) SCC 306 Vinitec Electronics Private Ltd. v. HCL Infosystems Ltd. reported in 2008 (1) SCC 544 National Highways Authority of India Vrs. Ganga Enterprises and anothe...