Auction sale finality upheld where highest bid was accepted and title passed on the fall of the hammer.

A confirmed auction sale, after public advertisement, was treated as complete once the highest bid was accepted and earnest money was deposited, with title in the goods passing on the fall of the hammer. Cancellation of the sale and refusal to deliver the goods could not be justified merely on the basis of Customs clearance objections, where the auction terms had otherwise been satisfied. The respondents were directed to hand over possession of the goods in accordance with the auction conditions, but relief for interest was declined.

---

---

Issues: Whether the cancellation of the confirmed auction sale and refusal to deliver the goods could be sustained when the highest bid had been accepted and earnest money deposited.

Analysis: The auction sale was held pursuant to public advertisement, the petitioners emerged as the highest bidders, their offer was accepted, and earnest money was paid. The sale was treated as complete and the title in the goods was held to have passed upon the fall of the hammer. The objection based on clearance by the Customs Department was not accepted as a valid basis to deny delivery of the goods in terms of the auction conditions.

Conclusion: The cancellation could not be sustained, and the respondents were directed to hand over possession of the goods in accordance with the auction terms. Relief for interest was declined.

---