HC Upholds Auction Sale as Prior Sale to MPS Greenery Was Uncontested

Case Details: MPS Greenery Developers Ltd. v. Bhaskar Das Gupta - [2025] 176 taxmann.com 787 (HC - Calcutta)

Judiciary and Counsel Details

• Gaurang Kanth and JOYMALYA BAGCHI, JJ.
• Subhasis Chakraborty, Ms. Sushmita Singh, S. Roy Chowdhury, S. Bhattacherjee, Swatarup Banerjee, Ratul Biswas, Kaushik Chowdhury, Ms. Sahanaj Parveen, Santanu Chatterjee, Arijit Chakraborti, Deepak Sharma, Ms. Susmita Saha Dutta, Smarajit Roy Chowdhury, N. Ahmed, P. K. Dutta, S. K. Dutt, Syamantak Banerjee, B.R. Bhakat, S. Pal Chowdhury, Sounak Sengupta, Soumyadeb Sinha, Abhishek Roy, Surajit Nath Mitra, ld. Sr. Adv. Amitesh Banerjee, Tulsidas Roy, Tarak Karan, Ramdulal Manna, Manju Manna (Dey) and Sayan Mukherjeefor the Appearing Parties.

In the instant case, in a batch of cases dealing with affairs of the MPS group of companies, the Court constituted a one-man committee to take over possession of the assets of the said group of companies and to formulate a scheme to repay depositors through the sale of the said assets.
A One-man committee took possession of various assets of the company, including auction property, which had been sold to ‘MPS Greenery Developers Ltd.’ As per the order of the Court, a public auction (e-auction) was held with the assistance of the SEBI and the auction sale was confirmed in favour of the auction purchaser/respondent no. 35, and a sale certificate was also issued.
The applicant filed an application praying for the recall of the order and/or modification of the same so far as it pertained to the auction property. The applicant contended that vendors of ‘MPS Greenery Developers Ltd.’ did not have the right, title and interest in the auction property and, accordingly, ‘MPS Greenery Developers Ltd.’ was not the lawful owner of the auction property and the sale in favour of the auction purchaser was invalid in law.
It was submitted that the sale in favour of ‘MPS Greenery Developers Ltd.’ in 2012 was valid and had not been challenged to date.

HC Held

The High Court held that since auction sale conducted under auspicious of the Court was a subsequent transaction, there was no scope to recall orders confirming subsequent transaction when prior transaction in favour of ‘MPS Greenery Developers Ltd.’ had not been assailed. Thus, there was no merit in the application, and the same was to be dismissed.