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1976 Supreme(AP) 92

Andhra Pradesh High Court
Judges : MADHAVA REDDY
A.Kannabiran - Appellant
Versus
Rubby Coach Builders Pvt.Ltd. - Respondent
Decided On : 06-22-76

The highest bidder and the judgment-debtor should make an application for permission after the bid is accepted and before the sale is confirmed and before the sale-certificate is issued, in compliance with the requirements of section 27 of the Urban Land (Ceiling and Regulation) Act, 1976.

Headnote:

Proclamation of Sale - Interpretation of Section 27 of the Urban Land (Ceiling and Regulation) Act, 1976 - The court held that the highest bidder and the judgment-debtor should make an application for permission after the bid is accepted and before the sale is confirmed and before the sale-certificate is issued, in compliance with the requirements of section 27 of the Act in cases where the property of a judgment-debtor is brought to sale in execution proceedings.

Fact of the Case:

The judgment-debtor raised objections to the proclamation of sale relating to a plot in Hyderabad, including the value of the property and the requirement for permission under section 27 of the Urban Land (Ceiling and Regulation) Act, 1976.

Finding of the Court:

The court found that the judgment-debtor's objection regarding the value of the property was not pressed before the executing court and therefore cannot be allowed to be raised in the appeal. Regarding the requirement for permission under section 27 of the Act, the court held that the highest bidder and the judgment-debtor should make an application for permission after the bid is accepted and before the sale is confirmed and before the sale-certificate is issued.

Issues: Objections to the proclamation of sale, including the value of the property and the requirement for permission under section 27 of the Urban Land (Ceiling and Regulation) Act, 1976.

Ratio Decidendi: The judgment-debtor's objection regarding the value of the property was not pressed before the executing court and therefore cannot be allowed to be raised in the appeal. The court interpreted section 27 of the Act to require the highest bidder and the judgment-debtor to make an application for permission after the bid is accepted and before the sale is confirmed and before the sale-certificate is issued.

Final Decision: The Civil Miscellaneous appeal was dismissed with costs.

( 1 ) THIS appeal by the judgment-debtor is against the order of the learned chief Judge, City Civil Court, Hyderabad overruling the two objections to the proclamation of sale relating to plot No. 27/28. No. 1-11-252/49 and 50 situated at Begumpet, hyderabad. The judgment-debtor had raised another, objection also, namely the sale should be subject to the claims of third-parties as ordered in E. A. Nos. 321 of 1970 and 23 and 31 of 1971. The decree-holder conceded that the sale proclamation should specify the claims and also the sale should be subject to those claims. The other two objections, which were opposed by the decree-holder and rejected by the Court below, are (1) that the value stated by the judgment-debtor should also be mentioned in the sale proclamation, and (2) that before, the sale is held, permission of the competent authority under section 27 of the urban Land (Ceiling and Regulation) act, 1976 hereinafter referred to as " the Act", should be obtained.

( 2 ) IT is true that while the decree-holder stated the value of the property to be Rs. 35,000. the judgment-debtor, in his counter, claimed that it was worth Rs. 2,00,000. But, when the matter came up for hearing, as can be seen from the order under appeal, the learned Counsel for the judgment-debtor did not press this contention. That means the judgment-debtor agreed to the valuation mentioned by the decree-holder. When that issue was not pressed before the executing Court, it cannot be allowed to be raised in this appeal. This is obviously intended to merely prolong the execution proceedings. 5. The other objection raised by the judgment-debtor rests upon the interpretation of section 27 of the Act, which, so far as it is relevant for our present purpose, reads as follows:"27. Prohibition on transfer of urban property.- (1) Notwithstanding anything contained in any other law for the time being in force, but subject to the provisions of sub-section (3) of section 5 and sub-section (4) of section 10, no person shall transfer by way of sale, mortgage gift, lease for a period exceeding ten years, or otherwise, any urban or urbanisable land with a building (whether constructed before or after the commencement of this Act) or a portion only of such building for a period of ten years of such commencement or from the date on which the building is constructed, whichever is later, except with the previous permission in writing of the competent authority. (2) Any person desiring to make a transfer referred to in sub-section (1), may make an application in writing to the competent authority in such form and in such manner as may be prescribed. (3) On receipt of an application under sub-section (2), the competent authority may, after making such inquiry as it deems fit, by order in writing, grant or refuse to grant the permission applied for: provided that the competent authority shall not refuse to grant the permission applied for unless it has recorded in writing the reasons for doing so and a copy of the same has been communicated to the applicant. (4) Where within a period of sixty days of the date of receipt of an application under this section the competent authority does not refuse to grant the permission applied for or does not communicate the refusal to the applicant, the competent authority sall be deemed to have granted the permission applied for. "this section applies to transfer of property inter vivas by way of sale mortgage, gift, lease for a period exceeding ten years or otherwise. This section, read with the rules, envisages the application by the transferor and the transferee. Whether this provisions applies to court-sales also, was not raised before me; and the arguments are addressed on the footing that it does apply. If both the transferor and the transferee have to apply even before the proclamation and the actual auction of the urban property, it cannot be postulated who the transferee would be. Only after the highest bid offered at the court-sale i

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