Rule 90 of CPC : Rule 90: Application to set aside sale on ground of irregularity or fraud.

Explanation using Example

Example 1:

Scenario: Ramesh, a farmer, had his land sold in an auction due to a court decree against him for an unpaid loan. During the auction process, the auctioneer did not properly advertise the sale, and only a few people attended, resulting in a very low sale price.

Application: Ramesh can apply to the court to set aside the sale of his land on the grounds of material irregularity. He can argue that the improper advertisement of the auction led to a low turnout and a significantly lower sale price, causing him substantial injury.

Outcome: If the court finds that the irregularity in advertising the auction indeed caused substantial injury to Ramesh, it may set aside the sale and order a new auction to be conducted properly.

Example 2:

Scenario: Sita's ancestral home was sold in execution of a decree. However, Sita later discovered that the auctioneer had colluded with the buyer to undervalue the property and sell it at a much lower price than its market value.

Application: Sita can apply to the court to set aside the sale on the grounds of fraud. She can present evidence of the collusion between the auctioneer and the buyer, showing that the sale was conducted fraudulently to deprive her of the true value of the property.

Outcome: If the court is satisfied with the evidence of fraud and finds that Sita has sustained substantial injury due to this fraudulent conduct, it may set aside the sale and order a new, fair auction to be conducted.

Example 3:

Scenario: Mohan, a businessman, had his commercial property sold in an auction due to a court decree. He later found out that the auction notice was not properly served to him, and he was unaware of the auction date, resulting in the property being sold without his knowledge.

Application: Mohan can apply to the court to set aside the sale on the grounds of material irregularity. He can argue that the improper service of the auction notice prevented him from participating in the auction, causing him substantial injury as he could not protect his interests.

Outcome: If the court finds that the improper service of the auction notice indeed caused substantial injury to Mohan, it may set aside the sale and order a new auction with proper notice given to all interested parties.

Example 4:

Scenario: Priya's land was sold in an auction due to a court decree. However, she later discovered that the auctioneer did not follow the proper procedure for conducting the auction, such as not allowing sufficient time for bidding and not following the prescribed steps for auctioning the property.

Application: Priya can apply to the court to set aside the sale on the grounds of material irregularity. She can present evidence that the auctioneer did not follow the proper procedure, leading to a sale that did not reflect the true value of the property.

Outcome: If the court is satisfied with the evidence of procedural irregularity and finds that Priya has sustained substantial injury due to this irregularity, it may set aside the sale and order a new auction to be conducted following the proper procedure.