In Brief
M/S AL-CAN Export Pvt. Ltd., which purchased a manufacturing property at public auction conducted by a Tahsildar under Maharashtra Land Revenue Code, challenged the High Court's order setting aside the sale due to procedural violations. The Supreme Court held that writ courts under Article 226 are not bound by the Code of Civil Procedure's Order XXI Rule 90 and must focus on fairness and transparency in state-conducted auctions. The Court found gross violations of mandatory 30-day notice and possession-before-confirmation requirements, constituting illegality rather than mere irregularity. While affirming the High Court, the Court allowed the appellant in part, permitting it to retain the property upon depositing Rs 4 crore with the lender as full settlement.
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