LAHORE: The Lahore High Court allowing a petition of a rice mill observed that auction sale involving a single participant could not be construed as a public auction.

The court declared the auction sale of the petitioner’s properties and all steps taken in pursuance thereof are void and of no legal effect.

The court also declared the fixation of reserve price of the properties as illegal and observed, to put the properties to auction sale is an important judicial business and cannot be left to be determined on the basis of valuation report, procured five years before.

The appellant Hadi Rice Mills assailed order of a banking court which dismissed the petitioner’s objection petition against auction sale and its confirmation in favour of the respondent purchaser.

According to the details auction purchaser was the only bidder turned at the auction site to participate, whose bid, being the only bid, was declared highest bid. Appellants filed objections which were heard and dismissed and auction sale was confirmed. The petitioner challenged the order in question and got relief.

Property was comprised of 41 kanal 17 marla with superstructure, buildings, fittings and fixtures were attached against a loan obtained by the petitioner mills. Reserved price of subject matter property was fixed at Rs 29,155,000 on July 14, 2015.

Copyright Business Recorder, 2022