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Issues: Whether, after confirmation of sale in winding-up proceedings, the court could recall that confirmation and consider a later higher offer made by a non-party to the sale.
Analysis: The application sought rejection of an accepted bid and substitution of the applicant's higher offer after the sale had already been confirmed in favour of the highest bidder's nominee. The court found no provision under the Companies Act, 1956 or the Companies (Court) Rules, 1959 empowering it to recall the confirmation of sale on these facts, particularly in the absence of any allegation of fraud by the purchaser. The highest bidder was a necessary party to any such challenge, yet had not been impleaded. The court also held that, once sale stood confirmed and an appeal concerning the matter was pending before the Division Bench, the requested relief could not be granted behind the back of the affected purchaser.
Conclusion: The court held that the confirmation of sale could not be recalled and the applicant's higher offer could not be accepted in these proceedings.
Final Conclusion: The application failed because the confirmed sale could not be unsettled on the basis of a later offer made without impleading the purchaser and without any legal basis to reopen the sale.
Ratio Decidendi: A confirmed sale in winding-up proceedings cannot be recalled merely because a subsequent higher offer is made, especially where the purchaser is not impleaded and no fraud or statutory power to reopen the sale is shown.
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