Public Auction: Definition.

Public auction means public sale:

Earliest definition of public auction:

This appears to be earliest case (Privy Council) defining the definition of public Auction.

“There is no definition in the Act of the words “public auction” and their Lordships are of opinion that there can be no doubt that they must bear the meaning which is ordinarily given to them in the English language. The words mean a public sale at which each bidder offers an increase upon the price offered by the preceding bidder, the article put up being sold to the highest bidder. This involves the auction being held in public, all members of the public having a right to attend, and a valuable element being the competition between the persons who are openly bidding for the subject matter of the sale. This is of importance not only to the Railway Company, but also to the owner of the goods, the competition being calculated to produce the highest price.”

[Source: Secy. of State v. Sunderji, AIR 1938 PC 12.]
The public auction means that it is being held in public, all members of the public having a right to attend, and a valuable element being the competition between the persons who are openly bidding for the subject matter of the sale.

[Source: Vishal Builders (P) Ltd. Vs. Delhi Development Authority ILR (1977) 1 Delhi 724.]

E-auction is also a public Auction:

 

By the process of e-auction, none of the intending bidder is forbidden to participate in the process of sale. Instead of a physical auction at the spot, it is virtual auction in the electronic format. The advantage of e- auction is that every bid is recorded within a specified slot and is free from the errors, which may be committed by the court auctioneer. Therefore, we find that e-auction is another form of the public auction.
[Source: Dr. Mandeep Sethi vs Union Bank Of India (P&H)]

 

Advertisements