What are cases of cancellation of property auction results in Vietnam?

Cancellation of property auction results is specified in Article 72 of Vietnam's Law on Property Auction 2016 whereby property auction results shall be cancelled in the following cases:

- The cancellation of property auction results is agreed upon between the property seller, property auction organization and winning bidder or the cancellation of the conclusion of the contract on purchase and sale of the auctioned property or cancellation of this contract is agreed upon between the property seller and winning bidder, unless the auction causes damage or affects the interests of the State or lawful rights and interests of individuals and organizations;

- The property auction service contract or contract on purchase and sale of the auctioned property is declared null and void by the court under the civil law in case the winning bidder commits the act of obstructing property auction activities; disturbing or causing disorder at an auction;

- The property seller may cancel the property auction service contract when having one of the following grounds:

+ The auction is held by an organization without the property auction function or conducted by an individual other than an auctioneer, unless it is held by a property auction council;

+ The property auction organization intentionally allows an unqualified person to participate in an auction who later becomes the winning bidder;

+ The property auction organization commits one of the following acts: failing to publicly display information on property auction; failing to disclose information on property auction; improperly implementing regulations on the sale of auction dossiers or organizations registering for participation in auction; or impeding or restricting bidders from registering for participation in auction;

+ The property auction organization colludes or is in cahoots with bidders during the auction, thus falsifying information on the auctioned property, auction dossier or property auction results;

+ The property auction organization holds an auction at variance with regulations on auction forms and methods according to the rules of the auction, thus falsifying the property auction results.

- The property seller, bidder, winning bidder, property auction organization or auctioneer commits an act of collusion or price suppression during the auction, thus falsifying information on the auctioned property or auction dossier or property auction results;

- As decided by the person with administrative sanctioning competence in case of auction of state property when there is one of the grounds above in item 3.

Below are some cases about cancellation of property auction results that are land use rights.

Judgment 47/2018/DS-PT dated May 14, 2018 on the dispute requesting cancellation of the property auction results

+ Court level: Appellate.

+ Judicial agency: People's Court of Binh Phuoc province.

+ Quoting the content: Mr. T and Mrs. T said that the Civil Judgment Enforcement Sub-department made mistakes in the process of distraint and auctioned the assets of Mr. T and Mrs. T. When distraining the assets of the Civil Judgment Enforcement Sub-department district, L violated Articles 6 and 74 of the Law on Judgment Execution. Therefore, the assets granted to the household, Mr. T's mother, and Mr. T's children did not receive notice and did not know about the distraint. When selling property, Mr. T's entire household, including his mother, wife, husband, and children, did not know that Binh Phuoc Property Auction Service Center was auctioning the household's assets. The Binh Phuoc Property Auction Service Center does not list publicly where the property is located.

+ Settlement result: Accepting part of the appeal requests of the defendant, District L's Civil Judgment Execution Sub-department, who has related rights and obligations, Binh Phuoc Property Auction Service Center, Mr. Vu Huy C, accepted the Appeal No. 04/QD/KNPT-DS dated May 12, 2017 of the Procurator General of the People's Procuracy of Binh Phuoc province.

Judgment 71/2019/DSPT dated March 14, 2019 on request to cancel property auction results, cancel land use right certificate and claim compensation for property damage

+ Court level: Appellate.

+ Judicial agency: High People's Court in Ho Chi Minh City, HCM.

+ Quote from the content: Mr. H is the auction winner of the land plot with an area of 12,451.9 m2 at a cost of 62,500,000 VND. Mr. H has paid in full, received the land, carried out procedures for granting a certificate of land use rights and was granted a land use right certificate No. 1378/QSDD by the People's Committee of Phuoc Long district (former) for Mr. H. However, the above property was not managed and used by Mr. H, but has been appropriated, managed, and used by Mr. L since then. The reason that Mr. L possessed and used was because of illegal activities while organizing the asset auction of the Civil Judgment Enforcement Division of Binh Phuoc Province and the Property Auction Service Center of Binh Phuoc Province.

+ Result of settlement: Accepting the petition of plaintiff Mr. Bui Van H; partially accept the independent request of the person with related interests and obligations, Mr. Dong Khac L. Cancellation of the result of the property auction is an area of 12,451.9 m2 of land and assets on the land, located in hamlet 3, Long Tan commune, Bu Gia Map district, that the Property Auction Center of Binh Phuoc province sold to Mr. Bui Van H on June 14, 2004.

Judgment 146/2019/DS-PT dated June 13, 2019 on dispute over asset auction results

+ Court level: Appellate.

+ Judicial agency: People's Court of Tay Ninh province.

+ Quote from the content: The contract of sale and purchase of auctioned assets No. 743/2017/HDMB-KH dated July 27, 2017, between KH Company and Ho Thanh S was established. The reason for requesting cancellation is due to the fact that the auctioned property is not the same as the actual property and is not in accordance with the law on Judgment Execution because there is a violation of judgment enforcement procedures on putting the property up for auction.

+ Result of settlement: Not accepting the lawsuit request of the enforcer of District H's Civil Judgment Execution Sub-Department against the client about the cancellation of the asset auction result. Maintain the results of the asset auction between CT KH and Mr. Ho Thanh S according to the auction minutes of July 27, 2017.

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