New Delhi, July 10 -- Jane Birkin's original Birkin bag sold for a jaw-dropping $10.1 million at Sotheby's Paris auction on Thursday, making it the most expensive handbag ever sold.

The 40-year-old bag sparked a 10-minute bidding war among nine collectors before a private Japanese buyer won it by phone. Gasps filled the room as bids rocketed past 5 million pounds, ending at 7 million pounds before fees. The sale crushed the previous record of $513,000 for a diamond-studded Hermes Kelly bag.

This black leather prototype, scratched and stained from Birkin's daily use, is now the second-priciest fashion item ever auctioned, trailing only the $32.5 million "Wizard of Oz" ruby slippers.

The bag began with a chance meeting on a 1984 Air Fran...