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2017 Supreme(SC) 37

SUPREME COURT OF INDIA
R.K. AGRAWAL, R.BANUMATHI, JJ.
UNITED FINANCE CORPORATION – Appellant
Vs.
M.S.M. HANEEFA – Respondent
CIVIL APPEAL NO.4204 OF 2007
Decided On : 11-01-2017

IMPORTANT POINT
Even if sale is confirmed and application for setting it aside is dismissed it does not become absolute until and unless revision thereagainst is decided either way.

Headnote:(a) Code of Civil Procedure, 1908 – Order XXI, Rule 95 r/w Article 134, Limitation Act, 1963 – Limitation – Article 134 applies to an application under Order XXI, Rule 95 – The limitation will be one year from the date when the sale becomes absolute. (Para 7)

       (b) Code of Civil Procedure, 1908 – Order XXI Rule 95 – The question whether issuance of sale certificate is a sine qua non or not for filing the application under Order XXI Rule 95 C.P.C. left open. (Para 11)

       (1996) 5 SCC 48 – Referred

       © Code of Civil Procedure, 1908 – Order XXI Rule 95 and section 15(1), Limitation Act, 1963 – The question of applicability of Section 15(1) of the Limitation Act to an application filed under Order XXI Rule 95 also left open. (Para 15)

       (d) Code of Civil Procedure, 1908 – Order XXI Rule 95 r/w Article 134, Limitation Act, 1963 – Sale becomes absolute on dismissal of application for setting aside the sale – But appeal lies under Order LXIII, Rule (1)(j) against the order of subordinate judge dismissing the application for setting aside the sale – In appeal High Court has the same powers as the Court of the Subordinate Judge – Section 107 (2) CPC – Instantly the court auction sale Could not become absolute during pendency of the revision petition before High Court – Revision petition against order dismissing E.A No.77/2002 having been disposed of on 9th July, 2003, application filed under Order XXI Rule 95 C.P.C on 30th August, 2003, held, was well within the period of limitation. (Para 16)

       AIR 1934 PC 134 – Relied upon

       AIR 1953 SC 425; (1987) 3 SCC 146 – Referred

       Facts of the case:

       The appellant/Corporation-decree holder filed a suit for realisation of the suit claim and the said suit was decreed for a sum of Rs.2,72,100/- along with interest. In execution of the decree, the property of respondent/judgment-debtor was auctioned on 27th October, 2001 and the same was purchased by the appellant/decree-holder himself.

       The sale was made absolute on 1st June, 2002. Sale certificate was issued to the appellant on 17th March, 2003. In the meanwhile, the first respondent/judgment-debtor filed an application to set aside the auction sale (Order XXI Rule 90 C.P.C.) and also another application for appointment of the Commissioner to value the property. Both the applications came to be dismissed by the executing court. The first respondent/judgment-debtor filed revision before the High Court in C.R.P.No.2829/2002 in which the High Court has granted stay of further proceedings in the execution petition. The Civil Revision Petition came to be dismissed on 9th July, 2003.

       Thereafter, on 30th August, 2003, auction purchaser appellant filed an application under Order XXI Rule 95 C.P.C. for delivery of possession of the immovable property purchased in the court auction sale. In the said application by order dated 12th August, 2005, the executing court ordered delivery of possession which was challenged by the judgment-debtor before the High Court in C.R.P.No.894/2005.

       The High Court allowed the revision and dismissed the application filed by the appellant under Order XXI Rule 95 CPC on the ground that it is barred by limitation.

       Finding of the Court:

       Appellant’s application under Order XXI Rule 95 C.P.C. for delivery of possession of the immovable property purchased in the court auction sale was well within the period of limitation.

       Result: Appeal allowed.

JUDGMENT

R. BANUMATHI, J.

This appeal arises out of order passed by the High Court of Kerala at Ernakulam allowing the revision in CRP No.894 of 2005 dated 2nd January, 2006 and thereby dismissing the application filed by the appellant under Order XXI Rule 95 C.P.C. on the ground that the application is barred by limitation and declining direction for delivery of possession of the immovable property purchased in the court auction sale to the appellant.

2. Brief facts which led to filing of this appeal are as under:-

The appellant/Corporation-decree holder filed a suit for realisation of the suit claim and the said suit was decreed for a sum of Rs.2,72,100/- along with interest. In execution of the decree, the property of respondent/judgment-debtor was auctioned on 27th October, 2001 and the same was purchased by the appellant/decree-holder himself. The appellant/decree holder purchased schedule item No.2 property to an extent of 1 acre and 50 cents comprised in Survey No.458/1 of Parassala Village along with the building situated therein. The sale was made absolute on 1st June, 2002. Sale certificate was issued to the appellant on 17th March, 2003. In the meanwhile, the first respondent/judgment-debtor filed an application to set aside the auction sale (Order XXI Rule 90 C.P.C.) and also another application for appointment of the Commissioner to value the property. Both the applications came to be dismissed by the executing court. Being aggrieved by the order dismissing the Commissioner's application (E.A.No.77/2002), the first respondent/judgment-debtor filed revision before the High Court in C.R.P.No.2829/2002 in which the High Court has granted stay of further proceedings in the execution petition. The Civil Revision Petition came to be dismissed on 9th July, 2003.

3. Thereafter, on 30th August, 2003, auction purchaser appellant filed an application under Order XXI Rule 95 C.P.C. for delivery of possession of the immovable property purchased in the court auction sale. In the said application by order dated 12th August, 2005, the executing court ordered delivery of possession which was challenged by the judgment-debtor before the High Court in C.R.P.No.894/2005. By the impugned order dated 2nd January, 2006, the High Court allowed the revision and dismissed the application filed by the appellant under Order XXI Rule 95 CPC on the ground that it is barred by limitation.

4. Challenging the impugned order, learned counsel for the appellant submitted that the court auction sale does not become absolute on the passing of a mere order of confirmation of sale as enjoined by Order XXI Rule 92(1) C.P.C. but it becomes absolute only on the termination of proceedings initiated to set aside the order confirming the sale. It was further submitted that the steps taken by the judgment-debtor to set aside the court auction sale were pending consideration before the High Court in C.R.P.No.2829/2002, which proceedings came to be terminated only on 9th July, 2003 and hence the application filed by the appellant under Order XXI Rule 95 C.P.C. on 30th August, 2003 was well within the period of limitation as stipulated under Article 134 of the Limitation Act, 1963. It was contended that in terms of Section 15(1) of the Limitation Act, the period of stay granted by the High Court between 17.09.2002 to 09.07.2003 should be excluded and the High Court erred in allowing the revision thereby dismissing the application filed under Order XXI Rule 95 C.P.C. as barred by limitation.

5. Per contra, Mr. Basava Prabhu S. Patil, learned senior counsel appearing for the respondent submitted that as per the decision in Ganpat Singh (Dead) by LRs. vs. Kailash Shankar and Others (1987) 3 SCC 146, an application filed by the auction purchaser under Order XXI Rule 95 C.P.C. for delivery of possession of property would be covered by Article 134 of the Limitation Act a





















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