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1977 Supreme(SC) 212

SUPREME COURT OF INDIA
P.N. BHAGWATI AND S. MURTAZA FAZAL ALI, JJ.
Takkaseela Pedda Subba Reddi, Appellant
Versus
Pujari Padmavathamma and others, Respondents.
Civil Appeal No. 2381 of 1968,
D/- 28-4-1977.
Advocates Appeared
Mr. P. Ram Reddy, Sr. Adv., (M/s. K. Jayaram and K. Ram Kumar, Advs with him), for Appellant; Mr. B. R. Agarwala, Adv., for Respondents.

Advocates:
B.R.AGRAWAL, K.JAYRAMAN GOWDA, K.RAM KUMAR, P.RAM REDDY

Headnote:Code of Civil Procedure - O. 21 R. 64 - Decree-holder obtaining two decree - Execution levied to realise the amount of one of the decrees-Sale Proclamation issued mentioning amount of one decree-One item of property sold at a price higher than that mentioned in the sale proclamation-Decree-holder did not amend the sale proclamation by adding the amount of the other decree-Word "necessary to satisfy the decree" indicates that no sale can be allowed beyond the decretal amount mentioned in the sale proclamation-Sale in respect of second item of property was void as the Executing Court had no jurisdiction to proceed with the sale beyond the point where the sale proceeds satisfied the sale proclamation-Matter going to the very root of jurisdiction of the Executing court to sell the properties-judgment-debtor not raising any objection before the Executing Court is no bar. (Para 3)

       Code of Civil Procedure, O. 21 R. 93-Auction purchaser entering into possession of the purchased properties-Purchaser making improvement-On sale being held void auction purchaser entitled to the refund of sale prices together with interest at the rate of twelve per cent per annum from the date of sale up to date of refund if not in possession-Auction purchaser will be entitled to value of improvements made provided found in possession. (Para 4)

Judgment

FAZAL ALI, J. - This appeal by certificate arises out of execution proceedings in respect of a decree obtained by the respondents/decree-holders. It appears that the 5th respondent/decree-holder Siddam Pedda Rami Reddi, hereinafter referred to as "SPR Reddi" - obtained a decree in O. S. No. 15 of 1949 from the Court of Sub-Judge kurnool against the judgment-debtor Pujari Subbarayudu - hereinafter referred to as "Pujari" or "judgment-debtor". The 5th respondent has also obtained another money decree against Pujari in another suit being O. S. No. 19 of 1953. The 5th respondent/decree-holder filed Execution proceedings No. 24 of 1953 in the trial Court for selling the properties belonging to the judgment-debtor in order to satisfy the decree in O. S. No. 15 of 1949 and he also applied for permission to bid at the auction sale. The first sale was held on October 12, 1954 at which the lands situated in villages Devanoor and Gudipadu were put to sale. But this sale was set aside as there was some delay in payment of the sale price. Consequently a second sale was held on March 2, 1955 at which the 5th respondent SPR Reddi purchased the lands situated in village Devanoor and the appellant/auction-purchaser T. P. S. Reddy purchased the lands in village Gudipadu. It is also not disputed that in the warrant of sale as also the sale proclamation, the decretal amount for which the properties were to be sold was mentioned as Rs. 16 715-8-0. The sale of lands in village Devanoor alone fetched a sum of Rs. 16.880/- at which the sale was knocked down. Thus it would appear that the sale proceeds of the lands in village Devannor were sufficient to satisfy the decretal amount mentioned in the proclamation of sale. Despite this fact the Court proceeded to sell the properties of the judgment-debtor in village Gudipadu which fetched Rs. 12.500/- and which were purchased by the appellant/auction-purchaser.

2. On April 20, 1955 the decree-holder obtained an order from the Court for rateable distribution of the sale proceeds. In other words, this order was passed by the Court not before the sale so that the entire decretal amount could have been mentioned in the sale proclamation but a few days after the sale had already taken place. This is rather an important aspect of the matter which appears to have been completely overlooked by the trial Court. On March 31, 1955 the Judgment-debtor Pujari filed an application to set aside the sale on various grounds, namely, that the sale was vitiated by material irregularities which caused serious preiudice to the judgment-debtor and that the properties sold by the Court were valuable properties and the same were grossly undervalued in the sale proclamation. Finally it was contended by the judgment-debtor that once the sale of the properties in village Devanoor was sufficient to satisfy the amount mentioned in the sale proclamation, the Court should have stopped the sale as required by the mandatory provisions of O. 21, Rule 64 of the Code of Civil Procedure - hereinafter referred to as the Code - instead of continuing the sale of the properties in village Gudipadu. The trial Court, however, after hearing the objections of the decree-holder rejected the application of the judgment-debtor. Thereafter the judgment-debtor preferred an appeal before the High Court which, while negativing the grounds taken by the judgment-debtor regarding the material irregularities in the conduct of sale or the under-valuation of the properties, accepted the plea of the judgment-debtor regarding the non-compliance with the provisions of O. 21, R. 64 of the Code. The High Court held, and in our opinion rightly, that as the sale of the properties in village Devanoor fetched an amount which was sufficient to satisfy the amount mentioned in the sale warrant, the Executing Court was not justified in proceeding with the sale of the properties in village Gudipadu and should have stopped the sale. The High Court accordingly accepted







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