SUPREME COURT OF INDIA
A.N. GROVER, K.K. MATHEW AND A.K. MUKHERJEA, JJ.
Harnandrai Badridas, Appellant
Versus
Debidutt Bhagwati Prasad and others, Respondents.
Civil Appeal No. 1323 of 1967, D/4-5-1973. 2424
Code of Civil Procedure, 1908 - Section 47, 244 and Order XXI Rule 95, 97 - Auction Sale - Money Decree - Delivery of Vacant Possession - Debidutt Bhagwati Prasad obtained a money decree against Harnandrai Badridas - Mr. S. Tibrewal, a member of Calcutta Bar was appointed Receiver in an insolvency proceeding against one Durga Prasad Goinka, a partner of defendant firm in respect of premises for purpose of selling those properties - Whether after an auction sale in execution of a decree a decree-holder auction-purchaser can move executing court for delivery of vacant possession of an immovable property or whether he has to file separate suit to get that possession - Whether a decree-holder auction purchaser is a party to suit, in affirmative - Whether auction purchaser gets possession of property is a matter which has nothing to do with question of satisfaction of decree - Whether he is decree-holder or not, is unquestionably a party to suit for purpose of Section 47 – Held, There is no reason why he should not retain his character of a party to suit until delivery of possession to him of property purchased by him - Having regard to this consideration, if any question is raised by judgment-debtor at time of delivery of possession concerning nature of rights purchased and if judgment-debtor offers any resistance to delivery of possession question must be one which in Court view relates to execution, discharge and satisfaction of decree and arises between parties to suit - It is important to remember that after decision of Privy Council in Ganapathy s case, there has been an amendment of Section 47 as a result of which purchaser at a sale in execution of a decree, whether he is decree-holder or not, is unquestionably a party to suit for purpose of Section 47 - Having regard to this, all questions arising between auction-purchaser and judgment-debtor must in Court view be determined by executing Court and not by a separate suit - Appeal dismissed.
Judgment
MUKHERJEA, J.:- This appeal by certificate from a judgment of the Calcutta High Court raises an important question as to whether after an auction sale in execution of a decree a decree-holder auction-purchaser can move the executing court for delivery of vacant possession of an immovable property or whether he has to file separate suit to get that possession. The short facts of the case are as follows. In May 1956 one Debidutt Bhagwati Prasad obtained a money decree against Harnandrai Badridas. In January 1958 Mr. S. Tibrewal, a member of the Calcutta Bar was appointed Receiver in an insolvency proceeding against one Durga Prasad Goinka, a partner of the defendant firm in respect of premises No. 99 and 128 Cotton Street, Calcutta for the purpose of selling those properties. On 3 April 1958 Mr. Tibrewal was also appointed receiver in execution of the decree obtained by Debidutt Bhagwati Prasad for the sale of the two premises. On 26 April 1958 the properties were put up to sale by auction and one Kanta Prosad Chotaria was declared the purchaser of premises No. 128, Cotton Street for Rupees 52,000/-. Kanta Prosad made a deposit of Rs. 13,000/- as earnest money. There were, it appears, various proceedings after this at the end of which, on 19 May 1964, there was an order directing the receiver to complete the sale within one month from that date and Kanta Prosad was directed to pay the balance of the purchase money within that time. The receiver was directed to execute and register a conveyance on behalf of the judgment-debtors who were the owners of premises No. 128, Cotton Street in case they refused to register the same. The purchaser was by the same order directed to pay interest on the balance of the purchase money from 13 June 1963 to 19 March 1964 in default whereof there was an order not to execute the conveyance. On 17 June 1964 the receiver executed the conveyance on behalf of the judgment-debtor and the insolvent. On 19 June 1964 the purchaser through his attorney requested the receiver to make over possession of premises No. 128, Cotton Street. On 23 July 1964 the receiver was further requested by the attorney to make over possession of the premises by the issue of letters of attornment addressed to each tenant in respect of portions which were tenanted and to make over vacant possession of that portion of the premises which was in the occupation of the judgment-debtor to the purchaser. On 17 November l964 an application was made praying inter alia for an order upon the judgment-debtor to deliver vacant possession of the premises in their occupation to the receiver and also a direction to the receiver to deliver vacant possession of the same to the purchaser. In due course, the court made an order in terms of that prayer. On appeal against that order in the appellate court the original order was confirmed. Hence this present appeal.
2. The main contention of the appellant before the appellate court as well as before us is that as soon as a receiver in execution has executed a conveyance in favour of an auction purchaser the decree stands satisfied and there is an end of the execution proceedings so that the question of the auction-purchaser getting possession of the property is a matter which has nothing to do with the execution, discharge or satisfaction of the decree. Such a question does not fall to be determined by the executing court but can be decided only in a separate suit. The question that has been raised by the appellant is one which has formed the subject matter of a long series of decisions which unfortunately have followed two divergent streams. There is on the one hand a Full Bench decision of the Calcutta High Court in Kailash Chandra Tarafdar v. Gopal Chandra Poddar, ILR 53 Cal 781 followed by the Madras High Court while on the other hand there is the decision of the Lahore High Court in Ram Singh Gopal Singh v. Abdullah Habibullah, ILR (1945) 26 Lah 252 which has been followed in various Full
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.