Andhra Pradesh High Court
Judges : K.RAMACHANDRA RAO
MANNEM PEDA NARIGI REDDI - Appellant
Versus
MADDI VENKAYYA - Respondent
Decided On : 10-11-76
CIVIL PROCEDURE CODE - ORDER 21 RULE 66 (2) (E) - SALE PROCLAMATION - VALUATION OF PROPERTY - JUDGMENT-DEBTOR'S VALUATION - NON-MENTION - EFFECT - WAIVER - FRESH PUBLICATION OF PROCLAMATION - WAIVER - EFFECT - SALE - VALIDITY.
Fact of the Case:
The judgment debtors borrowed a sum of Rs. 4000/- by mortgaging the suit house in favor of the mortgagee. The mortgagee filed a suit and obtained a preliminary decree and final decree. In execution of the decree, the hypotheca was brought to sale. The sale proclamation was drawn up without mentioning the judgment debtors valuation. The judgment debtors filed an application for setting aside the sale on the ground that there was no notice of the settlement of the proclamation, violation of mandatory provisions of Order 21 Rule 66 (2) (e) of the Code of Civil Procedure, and the price fetched at the court auction sale was grossly inadequate. The trial court dismissed the petition, but on appeal, the lower appellate court allowed the appeal and set aside the sale and its confirmation.
Finding of the Court:
The High Court found that the sale proclamation did not contain the judgment debtors valuation, the upset price given in the proclamation was low, the value of the suit house could be reasonably taken to be between Rs. 8000/- and Rs. 10,000/-, and the price of Rs. 4000/- fetched at the court auction sale was grossly inadequate. The court also found that the judgment debtors had no notice of the sale proclamation and that the notice issued to them was not in the prescribed form and did not conform to the requirements of Order 21 Rule 66 (2) of the Code of Civil Procedure.
Issues: 1. Whether the judgment debtors had notice of the sale proclamation? 2. Whether the non-mention of the judgment debtors valuation in the sale proclamation vitiated the sale? 3. Whether the judgment debtors waived the defect of non-mention of their valuation in the sale proclamation by seeking adjournments of the sale and making part payments?
Ratio Decidendi: 1. The court held that the notice issued to the judgment debtors was not in the prescribed form and did not conform to the requirements of Order 21 Rule 66 (2) of the Code of Civil Procedure, and therefore, no notice was issued to the judgment debtors as required by law. 2. The court held that the provisions of Order 21 Rule 66 (1) and (2) CPC are mandatory and want of compliance with the said provisions would render the sale illegal. 3. The court held that the judgment debtors could only waive fresh publication of the proclamation under Order 21 Rule 69 (2) CPC, but they could not waive the notice of the settlement of the proclamation or the specification of the particulars as mentioned in Order 21 Rule 66 (2) (e) CPC.
Final Decision: The court dismissed the appeal and held that the sale and its confirmation were illegal and liable to be set aside.
( 1 ) THIS appeal is preferred against the Judgment of the learned second additional District Judge. Guntur reversing the order and decree of the learned District Munsif, Sattenapalli, and setting aside the court auction sale and confirmation of the sale in execution of a decree. The relevant facts are as follows:the respondents 1 and 2 borrowed a sum of Rs. 4000/by mortgaging the suit house in favour of Aravapally venkata Seshadri. The mortgagee filed a suit OS No 437/1957 on the file of the District Munsiff s Court, Sattenapalli, on the foot of mortgage and obtained a preliminary decree on 12-2-1958 and final decree on 4-9-1958. The respondents 3 to 6 are legal representatives of the decree-holder. In e. P. 1342/1958 the hypotheca was brought to sale. The sale proclamation was drawn up on 21-2-1959. The upset price was fixed at Rs 3500/the sale was to be held on 8-6-1959. At that state the respondents I and 2 (Judgment-debtor) filed an application E. A. No 907/1959 (Ex. B-1) making party payment of Rs. 575/ and waiving fresh publication of the proclamation and praying for adjournment of the sale and for four months tine for payment of the balance. Accordingly the sale was adjourned to 29-6-59 on which date the judgment-debtors filed another application E. A. No. 1016/ 1959 making part payment of Rs. 600/and waiving fresh publication and requesting three months time for payment of the balance. The sale was adjourned to 13-7-1959 on which date another application E. A. No 1124/ 1959 was filed making part payment of Rs 385/and waiving fresh publication of the proclamation and requesting for the adjournment of the sale. The sale was then adjourned to 23-7-1959. On that day while the auction sale was proceeding, the judgment-debtors filed an application E. A. No. 1185/1959, making part payment ef Rs. 200/and praying for 15 days time for payment of the balance and for adjournment of the sale and waiving fresh publication of proclamation. The sale was ordered to continue and on 25-7-1959 the sale was held and the 3rd respondent the son of the decree holder became the highest bidder for Rs. 4000/subsequently the sale was confirmed.
( 2 ) THE appellant herein purchased the suit house under the sale deed ex B-12 dt 12-4-61, from the 3rd respondent. The Judgment - debtors filed an application E. A. No. 19/1961, under section47 and Order 21 Rule 90 c. P. C. for setting aside the sale on the ground among others, that the judgment - debtors had no notice of the settlement of the proclamation that there was violation of the mandatory provisions of Order 21 Rule 66 (2) (e) of the Code of Civil Procedure in not mentioning the valuation of the judgment - debtors in the sale proclamation and that as a result of collusion between the 2nd respondent and the bidders the sale was knocked down for a very low price. This application was opposed by the decree holders and the purchasers. The trial court, negatived all the contentions and dismissed the petition. On appeal the learned Additional District Judge, allowed the appeal and set aside the sale and its confirmation. Before the learned district Judge, mainly three points were urged that there was no notice of the settlement of the proclamation; that there was violation of the mandatory provisions of order 21 Rule 66 (2) (e) C. P. C; that the valuation of the property as given in the proclamation was low and that the price fetched at the court auction sale, was grossly inadequate. The learned Judge upheld the aforesaid contentions. In this appeal, Sri P. Sitarama Raju, learned counsel for the appellantreiterated the same contentions. It is not disputed that the sale proclamation did not contain the Judgment - debtor s valuation. Further, the finding of the lower court, that the upset price given in the proclamation was low, that the value of the suit house could be reasonably taken to be between Rs. 8000/and Rs. 10,000/and that the price of Rs. 4000/ fetched at the court auct
AI
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.