Madras High Court

Madras HC: Auctioned Property in Erode Stays With Buyer Despite Low Sale Price

Updated
Feb 2, 2026 7:35 PM
madras-hc-auctioned-property-in-erode-stays-with-buyer-despite-low-sale-price

Quick Summary: Kumaravel and P. Moorthy wanted their auctioned property back, claiming the auction wasn't fair. But the court decided against them. Here’s what happened.

The Auction Story Begins

On September 12, 2025, Kumaravel and P. Moorthy filed a request in the High Court at Madras to challenge an earlier court decision from Erode. They wanted to stop the auction of their property, which they said was sold for much less than it was worth.

The Auction Details

The property, valued at over Rs. 1.5 crores, was auctioned for just Rs. 27,10,000. This happened after a decision on September 29, 2015, which required them to pay Rs. 19,16,044. The auction was finalized on April 5, 2024.

"The petitioners claim it was a very low price," argued Mr. C. Prakasam, their lawyer.

Respondents' Stand

Mr. N. Manoharan, representing N. Palanisamy, explained that the auction followed all the necessary steps. The property was seized on October 4, 2015, and despite attempts to stop the sale, it went ahead. The court had lowered the starting price to Rs. 27 lakhs on January 30, 2020, because there weren't enough interested buyers.

Final Sale and Possession

The auction took place on October 20, 2022, and the sale was finalized on April 5, 2024. The buyer, N. Palanisamy, took over the property on September 26, 2025. The court didn't find any reason to undo this.

"The auction buyer has taken possession, and the sale is valid," the court stated.

Court’s Decision

Justice P.B. Balaji turned down the request for a review on December 12, 2025. He noted that Kumaravel and P. Moorthy had been involved in all the proceedings and had no valid reason to challenge the auction now.

Summary of the Verdict

The court’s decision means Kumaravel and P. Moorthy won’t get their property back. However, they can reclaim Rs. 3 lakhs they deposited earlier.

Tags:
Auction Sales
Property Rights
Civil Procedure Code