A tender cancellation lawsuit is a lawsuit filed by the enforcement office to cancel a tender if any legal violations are detected in the tender. In fact, tender cancellation is more of a complaint than a lawsuit.
What are the reasons for canceling the auction?
Irregularities that may lead to the cancellation of the auction may arise during the preparation stage of the auction, during the auction, or in the form of fraud in the auction. Therefore, it is possible to file a lawsuit for the cancellation of the auction in these cases. The irregularities that lead to the cancellation of the auction are as follows:
Failure to issue a notice of sale, failure to issue the notice in accordance with the procedure, or issuing the notice to the client instead of the representative.
In real estate sales, less than one month between the date of sale and the sale announcement.
More than two years have passed since the valuation on which the sale is based.
Objections to the valuation are rejected without being examined.
The seizure or enforcement proceedings lapse because the sale is not requested within the specified period.
T he auction is conducted without complying with the schedule and procedure specified in the announcement text.
The auction is held at a location other than the one specified in the announcement.
There is no auctioneer present at the auction.
The auction is not held within the start and end times specified in the announcement text.
Failure to cover 50% of the sale price, estimated value, and conversion and distribution costs, or exceeding the priority right.
Prevention of participation in the auction.
Failure to sell the goods at their actual value.
Behavior that prevents the auction from being conducted under normal conditions.
The existence of any of the above reasons is sufficient to file a lawsuit for cancellation of the auction.
Who Can File a Lawsuit for Cancellation of the Auction?
Who can file a lawsuit for cancellation of the auction may vary depending on whether the goods subject to the auction are movable or immovable.
If the goods subject to the auction are movable, only the creditor or institution requesting the sale, the debtor, and those who participated in the auction and made bids may file a lawsuit for the cancellation of the auction.
If the property sold at auction is immovable, only the creditor or institution requesting the sale, the debtor, those who participated in the auction and made bids, and the relevant parties in the land registry may file a cancellation lawsuit.
Against Whom Can an Auction Cancellation Lawsuit Be Filed?
Although it is called an auction cancellation lawsuit, since the cancellation of the auction is actually a means of complaint, the concepts of plaintiff and defendant are not clearly defined in the auction cancellation lawsuit, and the participants in the auction are referred to as the relevant parties.
Therefore, the person requesting the cancellation of the auction must file the lawsuit against all other interested parties. However, the failure of the person requesting the cancellation of the auction to name all other interested parties as the opposing party does not necessitate the dismissal of the lawsuit for cancellation of the auction. In this case, the enforcement court summons the other interested parties not named as the opposing party to the court and gives them the opportunity to defend themselves.