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1963 Supreme(AP) 29

Andhra Pradesh High Court
Gopal Rao Ekbote, J.
Alluri Seshadri Reddi - Appellant
Versus
Devisetti Subrahmanyam - Respondent
Decided On : 02-14-63

Important Points

A judgment-debtor is estopped from raising an objection to the auction purchaser's entitlement to the solatium amount if the judgment-debtor's conduct created a belief in the auction-purchaser that he should not pursue his remedy further.

Subject

Civil Law - Execution of Decrees and Orders

Act Referred

CIVIL PROCEDURE CODE : O.21 R.89, O.21 R.85

Headnote

AUCTION SALE - REFUND OF SOLATIUM AMOUNT - ORDER 21, RULE 89, C.P.C. - AUCTION PURCHASER NOT DEPOSITING FULL AMOUNT WITHIN 15 DAYS - JUDGMENT-DEBTOR FILING APPLICATION UNDER ORDER 21, RULE 89 - SALE SET ASIDE - AUCTION PURCHASER ENTITLED TO SOLATIUM AMOUNT - JUDGMENT-DEBTOR ESTOPPED FROM RAISING OBJECTION.

Fact of the Case:

The auction purchaser failed to deposit the full amount of the purchase money within 15 days as per Rule 85 of Order 21, C.P.C. However, before the last date expired, the judgment-debtor served a notice on the auction-purchaser informing him that he is filing an application under Order 21, Rule 89, C.P.C. The judgment-debtor filed the application and deposited 5% of the purchase money for payment to the purchaser. The sale was set aside, and the auction purchaser sought to get the solatium amount.

Finding of the Court:

The court held that the auction purchaser was entitled to the solatium amount despite not depositing the full amount within 15 days as per Rule 85 of Order 21, C.P.C. The court reasoned that the judgment-debtor's notice created a belief in the auction-purchaser that he need not deposit the amount as the judgment-debtor was moving to get the sale set aside. The court also noted that the judgment-debtor did not object to the auction-purchaser's course of action until the application filed by the judgment-debtor was allowed.

Issues: Whether the auction purchaser was entitled to the solatium amount despite not depositing the full amount within 15 days as per Rule 85 of Order 21, C.P.C.

Ratio Decidendi: The court held that the auction purchaser was entitled to the solatium amount because the judgment-debtor's conduct created a belief in the auction-purchaser that he should not pursue his remedy further. The court also noted that the judgment-debtor did not object to the auction-purchaser's course of action until the application filed by the judgment-debtor was allowed.

Final Decision: The court allowed the revision petition, set aside the order of the lower court, and directed that the solatium amount be paid to the petitioner.

RAO EKBOTE, J.

( 1 ) THIS revision petition arises out of E. A. No. 896 of 1959 filed by the auction-purchaser for the refund of 1/4th amount which he had deposited and for the payment of solatium which the judgment-debtor deposited under Order 21, Rule 89. This application was resisted both by the decree-holder and judgment-debtor on the ground that the auction-purchaser has not complied with Rule 85 of Order 21 and that therefore he is not entitled to the solatium amount.

( 2 ) THE learned District Munsif, Nellore, rejected the petition as far as the solatium amount is concerned, but allowed the auction-purchaser to withdraw the amount which he had deposited through a separate cheque petition. It is this view of the District Munsif which is questioned by the auction-purchaser before me in this revision petition.

( 3 ) IT is true that the auction purchaser has not deposited the full amount of purchase money payable and the general stamp for certificate under Rule 94 or any other amount required under Rule 85. But it does not necessarily follow that he is not entitled to the solatium. The auction was held on 29/06/1959. According to Rule 85 of Order 21 the auction-purchaser ought to have deposited the full amount of the purchase money within 15 days from the date of the sale, that is, on or before 14/07/1959. Before the last date expired the judgment-debtor served the auction-purchaser with a notice on 13-7-1959 informing him that he is filing an application under Order 21, Rule 89. Afterwards the judgment-debtor did file that application. As the decree-holder or the auction-purchaser did not oppose that application, it was allowed on 5-9-1959. The judgment-debtor while filing the application under Order 21, Rule 89 deposited for payment to the purchaser a sum equal to 5 per cent of the purchase money. After the sale was thus set aside the auction-purchaser sought to get the solatium amount. I fail to understand how he is not entitled to get this amount. It does not lie in the mouth of the judgment-debtor to say that the auction-purchaser is not entitled to that amount because he has failed to deposit the amount within 15 days as per Rule 85. The judgment-debtor had issued a notice on 13-7-1959. It was natural that thereby a belief was created in the auction-purchaser that he need not deposit the amount as the judgment-debtor is moving to get the sale set aside. The judgment-debtor or the decree-holder did not object to the course which the auction-purchaser followed till the last date when the application filed by the judgment-debtor was allowed on 5-9-1959. Even today it is not contended that the application filed by the judgment-debtor does not fall under Order 21, Rule 89. There is no other rule under which the sale once held could have been set aside on the petition of the judgment-debtor. If the auction-purchaser had failed to deposit the amount under Rule 85, it was open to the Court to adopt the course indicated by Rule 86 of Order 21. Admittedly the non-deposit of the full amount under Rule 85 by the auction purchaser was not treated by anybody as a default for the purpose of Rule 86. Consequently no action either under Rule 86 or Rule 87 was taken by the decree-holder or the Court, it is clear that all the parties believed that the course adopted by the judgment-debtor in moving the application under Order 21 Rule 89 is genuine and valid and, if allowed, the auction-purchaser would certainly be entitled to the amount mentioned in that rule. It must be remembered that the provisions of Rule 85 are enacted for the benefit of the judgment-debtor and the decree-holder and they can certainly waive it. Thus where the failure in depositing the price in Court on or before the due date is brought about by consent, express or implied, of the judgment-debtor and decree-holder and the order to set aside the sale was obtained by the judgment-debtor himself, the auction-purchaser cannot be blamed or allowed to suffer if he has act


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