Look at your code:
var path = Path.Combine(Server.MapPath("~/Avatar/1/"), fileName);
...
FileUpload MyFile = new FileUpload();
MyFile = path;
path
is a string: it's a "proper" path to file on your server.
You can't assign that to a variable holding a FileUpload Control - and even if you could it wouldn't work because the UploadControl is only loaded with data when your user instructs his browser to upload a file from his system to yours.
What I think you are trying to do is load an image from your folder, resize it and save the resized image.
If so, you don't need all that!
Try this:
string fileName = CustomerID + fileExtension;
string path = Path.Combine(Server.MapPath("~/Avatar/1/"), fileName);
using (Image orig = Image.FromFile(path))
{
int imageHeight = orig.Height;
int imageWidth = orig.Width;
if (imageHeight > maxHeight)
{
imageWidth = (imageWidth * maxHeight) / imageHeight;
imageHeight = maxHeight;
}
using (Bitmap resized = new Bitmap(orig, imageWidth, imageHeight))
{
resized.Save(result, ImageFormat.Jpeg);
}
}