Summary: The Madras High Court changed an earlier decision where it ran a property auction itself. The court decided that it should only watch over such auctions, not run them.
On January 21, 2025, a decision was made by the Madras High Court about a property in Thiruvarankurichy Village, Trichy District. The property was part of the Gopaldas Dwarakadas Family Trust Estate. The court had previously named Mr. Abul Abbas as the highest bidder for this land during an auction held inside the court.
The auction took place inside the court hall, with three interested parties present, including Mr. Abul Abbas, who eventually offered Rs. 12.55 Crore for the property. The court then told Mr. Abbas to make payments in parts, which he completed by March 31, 2025.
Najmudeen Nadheem Ahamed, the person who appealed, questioned the auction's fairness, saying that the court's direct involvement in the auction process was wrong. He claimed the auction was biased towards Mr. Abbas and that the starting price of Rs. 2.09 Crore was much lower than the market value.
"The Trust predetermined the purchaser, Mr. Abul Abbas, by describing him as a farming tenant," argued Najmudeen Nadheem Ahamed.
On December 17, 2025, the judges, including Justice S.M. Subramaniam and Justice Mohammed Shaffiq, decided that the court's role should have been limited to watching over the auction rather than running it. The judges canceled the auction results and declared all following transactions invalid.
The court referred to the Madras High Court Original Side Rules and the Code of Civil Procedure, pointing out that these rules allow the court to watch over but not run auctions.
"Judicial supervision cannot take the shape of judicial participation," stated the court.
The case has been sent back to the trial court to organize a new auction following proper legal procedures.
