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

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  • Last Updated on 30 July, 2025

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Auction sale MPS Greenery Uncontested sale Property title dispute SEBI auction

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.

Fact of the Case

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.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied