Answer: Reserve Price is the price with which the public auction starts and the auction bidders are not permitted to give bids below the said price, that is, the minimum bid at auction. State of Uttar Pradesh –Versus- Shiv Charan Sharma AIR 1981 Supreme Court 1722.

Answer: It was held by the Supreme Court of India in the case of Valji Khimji –Versus- Official Liquidator of Hindusthan Nitro Projects reported in (2008)145 Company Cases Page 36 that entertaining objection after the sale is confirmed should not be allowed except on very limited grounds like fraud, otherwise no auction sale will ever be complete.

Answer: If a sale is challenged on the ground of irregularity, substantial injury must be proved. SBI –Versus- DRAT (2010)3 Banking Cases Page 38 Delhi High Court, Division Bench. However, Orissa High Court has held that it is not necessary to prove substantial injury. Swastik Agency –Versus- SBI. AIR 2009 Orissa 147.

Answer: Bonfide sale cannot be set aside on the ground of equity. Sadashiv Prasad Singh –Versus- Harendra Singh (2014)1 Bankman 15.

Answer: If the Bank’s claim can be realized by sale of part of the property, the entire property cannot be sold. 

• S. Nariyappa –Versus- Sidappa (2005)10 Supreme Court Cases Page 235

• Ram Krishun –Versus- Sate of Uttar Pradesh (2012)11 Supreme Court Cases Page 511

Answer: It is the duty of the Court to see that the price fetched at an auction sale is adequate price even though, there is no suggestion of irregularity and fraud. --- Divya manufacturing Co. (P) Ltd. -Versus – Union of India. AIR 2000 Supreme Court 2346.