AIR 2008 SC 2061
Dr. ARIJIT PASAYAT & S.H. KAPADIA. JJ
M/s. Mahakal Automobiles & Anr. — PETITIONER
Vs.
Kishan Swaroop Sharma — RESPONDENT
Appeal (civil) 2598 of 2005
Decided on : 02/04/2008
Civil Procedure Code, 1908 - Order XXI Rule 22 and 54(1)(A) - Recovery of amount - Execution proceedings were ordered - Application of plaintiff is partly allowed and it is hereby ordered that defendants shall pay within months from today and interest per month on lacs from the date of institution of suit otherwise the plaintiff would be entitled to get a final decree for recovery of his amount by sale of charged property - Order as to cost would be given at the time of disposal of other points - A preliminary decree be framed accordingly - Description of charged property be also given in preliminary decree - Admittedly no accounts were to be taken - Simple arithmetical calculation of interest would have specified the actual amount payable - Held, Appellant-judgment debtor was served with a notice as required under Order 21 Rule 54(1)(A) of Code in the appendix B Forms - It is to be noted that the records reveal that address of the appellant as contained in the sale deed was different from address at which the process server purportedly affixed the notice on door and in open court and at only - It has also to be noted that under Order 21 Rule 66(2) service of notice has to be personally affected on judgment debtor - That also does not appear to have been done. Interestingly valuation of property as required to be done under the proviso to sub-rule (2) of Rule 66 of Order 21 of Code has not been done - Same appears to have been valued on the spot at and it was not done by Court - There are admittedly other non-compliance with certain requirements - Appeal is Disposed of
JUDGMENT:
Dr. ARIJIT PASAYAT, J.
1. Challenge in this appeal is to the judgment of learned Single Judge of the Madhya Pradesh High Court, Indore Bench.
2. Background facts in a nutshell are as follows: Respondent had sold 7200 sq.ft. land with some construction on 15/11/1986 for Rs.7.20 lacs to the JDs/appellants and was paid only Rs.1.60 lacs. He had agreed to accept the remaining amount of Rs.5.60 lacs in 4 installments in 3 years with interest @ 1.50% per month. A charge was created on this property. Respondent had later filed a Civil Suit No. 13-A/89 (New No. 6-A/1991) for recovery of amount of Rs.6,31,750/- by sale of such property. JDs/appellants in their written statements had admitted liability to pay Rs.5 lacs as principal and Rs.65,000/- as interest and pendentelite interest @ 1% per month. They disputed that Babulal was the partner of M/s Mahakal Automobiles. Thus, the ADJ on 24/9/1 991 gave a judgment and decree under Order XII Rule 6 of the Code, relevant portion of which reads follows:
"As a result application of plaintiff is partly allowed and it is hereby ordered that defendants Nos. I and 3 shall pay within 6 months from today Rs.5,65,00/- and interest @1% per month on Rs.5 lacs from the date of institution of suit i.e. 16/6/1989, otherwise the plaintiff would be entitled to get a final decree for recovery of his amount by sale of charged property. Order as to cost would be given at the time of disposal of other points. A preliminary decree be framed accordingly. Description of charged property be also given in preliminary decree."
A preliminary decree was accordingly drawn up. However, it was not drawn in prescribed form No.5-A or 7-C of Schedule of Appendix-D to the Code of Civil Procedure, 1908 (in short the Code). Admittedly, no accounts were to be taken. Simple arithmetical calculation of interest would have specified the actual amount payable. On 28/4/1992 respondent filed an application for execution. Notices to all JDs/appellants under Order XXI Rule 22 of the Code were issued. On 8/6/1992, JDs/2 appeared through Shri L.P. Bhargava, Advocate while JD/1 appeared through Shri P.K. Modi, advocate. All JDs continued to appear regularly till 16/11/1993. In the meantime two applications; one under Order XXI Rule 58 read with Section 151 of the Code was filed on 8/6/1 992 and the second under order XXI rule 50 read with Section 151 of the Code was filed on 2/11/1992 by the JDs which were disposed of on 16/12/1992 and 2/11/1992 respectively. No question as to non-executability of the decree had been raised by the JDs according to the High Court. On 16/10/1992 the court below directed that name of Babulal Gupta be deleted from the execution application as there had been no decree against him. A question was also raised suo motu by the court whether the decree in its terms being preliminary decree could be executed as it is, or the DH- respondent be directed to obtain a final decree. The executing court granted several adjournments for arguments on this question. On 12/2/1993 the executing court stayed the proceedings of the execution to await the result of proceedings under Order I Rule 10 and Section 151 of the Code before the trial court in the original case which was also pending in the same court. On 8/3/1994 order of the High Court was received in the original case and the execution proceedings were ordered to be restarted. The execution proceedings as well as the civil suit were transferred from court to court and none appeared for the JDs in the execution case, till 14/7/1997. The High Court by the impugned order set aside the order of the trial court holding that the I.As. filed by the judgment debtors, respondents in the appeal, before High Court were to be dismissed. Auction sale in favour of the respondent-DH was valid and order of its confirmation was upheld.
3. In support of the appeal learned counsel for the appellant submitted as follows:
(i) Records reveal that no Process Fee was paid by the Decre
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