SUPREME COURT OF INDIA
Uday Umesh Lalit, S. Ravindra Bhat, JJ.
Vishwabandhu - Appellant
Versus
Sri Krishna and Anr. - Respondents
Civil Appeal Nos. OF 2021 (Arising out of Special Leave Petition (Civil) Nos……..…………………...of 2021) (Arising out of Special Leave Petition (Civil) D.No. 1855 of 2020)
Decided On : 29-09-2021
Civil P.C. 1908 - O. 9 R. 13 -- General Clauses Act, 1897 -- S. 27 -- setting aside of ex parte decree -- ex parte decree passed against respondent No. 1/defendant -- property put to auction in execution -- appellant highest bidder -- 1/4th amount deposited -- then respondent No.1/defendant filed application for setting aside ex parte decree -- dismissed -- during pendency of appeal in High Court, sale certificate issued in favour of appellant -- appeal allowed and suit restored -- application for recall of order dismissed -- held -- after passing of ex parte decree, notice was duly acknowledged by respondent No.1/defendant -- allowed property to be put to auction -- after auction, application filed to set aside ex parte decree -- High Court rightly observed that respondent No. 1 was not vigilant -- yet granted relief in his favour -- he was disentitled from claiming any relief -- sale certificate also issued in favour of appellant -- orders passed by High Court set aside -- application filed by respondent No. 1 under order 9 rule 13 dismissed -- appeals allowed. AIR 2007 SC (Supp.) 1705, AIR 1962 SC 1604, (1996) 7 SCC 523 and (2004) 8 SCC 774 relied on. [Paras 19 to 22]
JUDGMENT :
Uday Umesh Lalit, J.
1. Delay condoned.
2. Leave granted.
3. These appeals challenge: (i) the Judgment and order dated 21.04.2006 passed by the High Court1[High Court of Judicature at Allahabad] in FAFO (First Appeal From Order) No.2473 of 2005; and (ii) the Order dated 18.10.2019 passed by the High Court in CMRA (Civil Miscellaneous Recall Application) No. 107616 of 2009 preferred in said FAFO No. 2473 of 2005.
4. Respondent No.2 herein filed a Suit in the court of Civil Judge (Junior Division), Mainpuri, Uttar Pradesh, for recovery of money along with interest submitting inter alia that the defendant in the Suit i.e. Respondent No.1 herein had failed to refund Rs.22,400/- received by him towards part sale consideration for sale of property comprising of Gata No.1616/0.93 acres situated at Nangle Rate, Village Panchayat Mainpuri Rural, Tehsil and District Mainpuri. The Suit was filed on 25.05.1993 and as the summons sent to Respondent No.1 by registered post was received back with postal endorsement of ‘refusal’, the order dated 19.02.1997 passed by the Trial Court was :-
The matter was thereafter adjourned on few dates and finally on 16.09.1997 an ex-parte decree was passed in favour of Respondent No.2 in the sum of Rs.22,400/- along with interest @ 9%.
5. In the application filed by Respondent No.2 seeking execution of the decree dated 16.09.1997, the property admeasuring 0.93 acres which was subject matter of the agreement to sell, was sought to be attached vide notice of attachment dated 29.05.1999. Later, the property was attached vide order dated 04.12.1999 on the basis of a report filed by the Ameen. The report indicated that since the judgment debtor i.e. Respondent No.1 could not be found on search, drum beats were carried out at the place of residence of Respondent No.1.
6. On 29.01.2000 the following order was passed by the trial court:-
7. On 04.04.2000 a report was filed by the Process Server to the following effect:-
8. In the aforesaid circumstances, the executing court issued warrant of sale of property on 06.12.2000 whereunder the property was directed to be auctioned on 16.12.2000 and the warrant was to be returned on or before 23.12.2000, duly executed. Accordingly, on 16.12.2000 the property was put to auction in which the present appellant as the highest bidder with a bid of Rs.1,25,000/-. In accordance with the prescribed procedure, 1/4th of the amount was deposited by the appellant.
9. On 19.12.2000 Respondent No.1, for the first time, appeared before the court and filed an application under Order IX Rule 13 of Code of Civil Procedure (‘the Code’, for short) praying that the ex-parte decree dated 16.09.1997 be set aside.
In the application it was asserted:-
The court affirmed that a delay in challenging a decree cannot be condoned without sufficient cause, especially when the application lacks an adequate explanation for prolonged inaction.
The main legal point established in the judgment is that the execution proceedings must adhere to the mandatory procedures set out in the Code of Civil Procedure, and any irregularities, including th....
Point of Law – The power to issue prerogative writs under Article 226 of the Constitution is plenary in nature and is not limited by any other provision of the Constitution This power can be exercise....
The main legal point established is that an auction sale can be set aside if there are substantial irregularities and fraud, and the application to set aside the sale was filed within the limitation ....
The Trial Court's decision in favor of the plaintiffs/respondent Nos. 1 and 2 and against the appellant without ensuring notice to the appellant and/or his counsel had been effected was in violation ....
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