SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2007 Supreme(SC) 361

Supreme Court Of India
SAI ENTERPRISES - Appellant
Versus
BHIMREDDY LAXMAIAH - Respondent
Civil Appeal 576 Of 2005
Decided On : 03/16/2007
Advocates Appeared :
ANJANI AIYAGARI, D.BHARATHI REDDY, K.MARUTHI RAO, K.RADHA

The main legal point established in the judgment is the obligation imposed on the court to sell only such portion of the property as necessary to satisfy the decree, as mandated by Order XXI Rule 64 of the Code of Civil Procedure.

Headnote:

Attachment - Civil Procedure - Constitution of India, 1950, Code of Civil Procedure, 1908 - Order XXI Rule 64, Order XXI Rule 69, Section 47, Section 151 - The court discussed the provisions of Order XXI Rule 64 of the Code of Civil Procedure, emphasizing the requirement to sell only such portion of the property as necessary to satisfy the decree. The court also highlighted the obligation imposed on the court to consider whether a part of the property would have sufficed to meet the decretal amount, and the consequences of non-compliance with this mandatory requirement.

Fact of the Case:

The appellant filed a suit for recovery of a sum of money, and during the pendency of the suit, filed for attachment before judgment. Subsequently, various applications and petitions were filed by the parties related to the sale of mortgaged property and objections to the auction process.

Finding of the Court:

The High Court found that the auction was initially notified in a newspaper with wide circulation, and that the objections raised were general in nature and lacked specificity. However, the court acknowledged the appellant's grievance regarding non-compliance with the requirements of Order XXI Rule 64 of the Code.

Issues: The issues revolved around the adequacy of publication of auction notices, valuation of the property, and compliance with the requirements of Order XXI Rule 64 of the Code.

Ratio Decidendi: The court emphasized the legislative intent behind Order XXI Rule 64, highlighting the obligation imposed on the court to sell only such portion of the property as necessary to satisfy the decree. Non-compliance with this mandatory requirement was deemed illegal and without jurisdiction.

Final Decision: The court directed the respondent to pay a specified amount to the appellant within a stipulated period, and in case of non-payment, allowed the appellant to pay a different sum with interest to obtain the property.

Judgement Key Points

Key Points: - The judgment emphasizes the obligation to sell only such portion of attached property as is necessary to satisfy the decree under Order XXI Rule 64 of the Code. (!) (!)

How to determine the portion of property to be sold to satisfy a decree under Order XXI Rule 64?

What is the consequence of non-compliance with Order XXI Rule 64 regarding sale of only the necessary portion of property?

What is the court’s remedy when the sale is conducted without satisfying the mandatory requirement to sell only the necessary portion?


ARIJIT PASAYAT, J.

( 1 ) CHALLENGE in this appeal is to the judgment passed by a learned Single Judge of the Andhra Pradesh High Court dismissing the Civil Revision petition filed under Article 227 of the Constitution of India, 1950 (in short 'the Constitution') read with Section 115 of the Code of Civil Procedure, 1908 (in short the 'code' ).

( 2 ) BACKGROUND facts in a nutshell are as follows:

The appellant filed a suit O. S. No. 57/96 against respondent No. 2 for recovery of Rs. 4,49,500/ -. The respondent No. 1 also filed a suit O. S. No. 65/96 against respondent No. 2 for foreclosure of the mortgage in his favour for a sum of Rs. 1,00,000/ -. Both the suits were pending on the file of the Senior Civil Judge, Suryapet. During the pendency of the suit appellant filed IA No. 413/96 for attachment before judgment and same was ordered in terms of order dated 7. 10. 96. OS No. 65/96 filed by respondent No. 1 was decreed against respondent No. 2. Respondent No. 1 filed an execution petition (EP No. 1/99) and sought for sale of mortgaged property as respondent No. 2 did not satisfy the decree. Respondent No. 1 indicated the value of the property to be rupees three lakhs. The bailiff after obtaining information from the Registrar and Municipal Office mentioned value of the property at Rs. 2,55,490/ -. The appellant's suit OS 57/96 was decreed against respondent No. 2. The said respondent No. 2 - judgment debtor was set ex parte as he did not attend the EP proceedings i. e. EP No. 1/99. Proclamation was published in newspaper "eenadu". The matter was adjourned from time to time. Appellant filed execution petition EP No. 19/01 seeking direction for sale of schedule property for realization of the amount of Rs. 5,69,816/- due under the judgment and decree dated 16. 2. 2000 made in OS No. 57/96.

( 3 ) RESPONDENT No. 2 filed an application EA No. 90/01 in EP No. 1/99 under Order XXI Rules 69 read with Sections 47 and 151 of the Code seeking a direction to stop the auction to be held on 12. 11. 2001 and sought for adjournment of the matter for settlement of terms and conditions of sale. Fresh publication and proclamation of sale was made in newspaper namely, Neti Manadesam. Learned Civil Judge dismissed the application EA No. 90/91 in EP No. 1/99 filed by respondent No. 2. The said order was challenged before the High Court in CRP No. 6036/01. Again proclamation of sale was published in 'neti Mandadesham' and the decree holder purchased the property for Rs. 3,12,000/- in OS No. 57/96. Thereafter the appellant filed an application EA No. 42/02 under Order XXI Rule 90 of the Code to aside the sale and to re-auction the schedule property, as the respondent No. 1 has not taken proper steps for wide publicity of the auction. It was stated that the value of the property was not less than rupees six lakhs. Objection was filed by the respondents. The judgment- debtor categorically stated in the counter that the value of the property is more than rupees 8 lakhs. The sale was confirmed on 24. 1. 2002. The High Court dismissed CRP filed by the judgment debtor-respondent No. 1. The appellant filed an application EA No. 107/03 in EA No. 42/02 in EP No. 1/99 to receive the valuation report issued. Learned Civil Judge dismissed the application. The High Court was moved. As noted above the High Court, dismissed the Civil Revision petition being of the view that allegations made in the petition are general in nature, and the affidavit with the petition does not disclose whether objection relates to non publication in the newspaper or places.

( 4 ) IN support of the appeal learned Counsel for the appellant submitted that the newspaper in which the publication was made is not a wide circulating newspaper. Further the valuation at which the decree holder purchased is very low. Additionally, it is submitted that in terms of Order XXI Rule 64 of the Code the Court was required to find out whether a part of the property would have sufficed to meet the decr





Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top