Fraud in mortgagee's power-of-sale auction can void the sale where material omissions depress bidding and produce gross inadequacy.

A mortgagee's power-of-sale auction was found void where the sale proclamation omitted material particulars such as the property's estimated value, reserve price, tax burden and rental income, and the description of the structure was shown to be false. The purchaser's knowledge of the true position and the fact that the property fetched only a fraction of its real value supported a finding that the defects were not mere irregularities but fraud and collusion. The sale was therefore not binding on the mortgagor, and the mortgagor was not confined to a damages claim against the mortgagee. A decree declaring the sale void and restraining further steps was justified.

---

---

Issues: Whether the mortgagee's auction sale of the suit property was vitiated by fraud, material irregularities and gross inadequacy of price, and whether the mortgagor was confined only to a claim for damages.

Analysis: The sale was held under the mortgagee's power of sale without the intervention of court. The proclamation omitted material particulars, including the estimated value of the property, the reserve price, the exact property tax burden and the rental income. The evidence also showed that the description of the structure as incomplete was false, that the purchaser had knowledge of the true position, and that the sale fetched only a fraction of the property's real value. In these circumstances, the deficiencies were not mere irregularities but amounted to fraud and collusion in the conduct of the sale.

Conclusion: The auction sale was void and not binding on the plaintiff, and the plaintiff was not restricted to a damages remedy against the mortgagee.

Final Conclusion: The decree declaring the sale void and permanently restraining further steps to complete it was justified on the basis of fraud and material defects in the exercise of the mortgagee's power of sale.

Ratio Decidendi: A sale under a mortgagee's power of sale without court intervention is liable to be set aside when the proclamation and conduct of sale are tainted by fraud, collusion, and material omissions that depress bidding and result in a grossly inadequate price.

---