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A. V. SESHA SAI, SUMATHI JAGADAM
Sai Balaji Housing Pvt. Ltd. – Appellant
Versus
Bharathi Warehousing Corporation – Respondent
| Table of Content |
|---|
| 1. background and case initiation. (Para 1 , 2) |
| 2. bidding regulations for mortgagees must adhere to legislative rules. (Para 3) |
| 3. arguments regarding procedural violations by the executing court. (Para 4 , 5) |
| 4. court observations on the issues raised. (Para 6 , 7) |
| 5. proper applications of cpc rules are vital for valid sale processes. (Para 8 , 9) |
| 6. examination of compliance with order 21 rule 72-a. (Para 10 , 19) |
| 7. court's failure to comply with mandatory provisions results in auction illegality. (Para 11 , 12) |
| 8. final verdict and implications. (Para 18 , 20 , 21) |
JUDGMENT :
A.V. SESHA SAI, J :
Order, dated 21.08.2023, passed by the Court of the learned II Additional District Judge, Guntur, dismissing EA No.09 of 2014 in EP No.64 of 2012 in OS No.110 of 2009, is under challenge in the present civil miscellaneous appeal, preferred under Section 115 of the Code of Civil Procedure.
2. Judgment-debtors in the aforementioned execution petition are the appellants in the present appeal. In OS No.110 of 2009, instituted by the respondent, on the foot of a mortgage, a Preliminary Decree was passed on 28.02.2011 and a Final Decree was also passed on 20.01.2012. The subject prop
Mandatory compliance with procedural rules in mortgage execution sales is crucial to prevent collusion and protect judgment-debtors' interests.
whether Section 35 of the Act is mandatory or directory the sale held in violation of the said provision is only illegal but not a nullity and therefore, it can be set aside only in the manner and th....
A sale under Order XXI Rule 90 can only be set aside if the applicant proves both material irregularity and substantial injury resulting from it.
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 ....
Court sales affected by irregularities in publication do not invalidate the sale but render it voidable, allowing for remedies under Rule 90 of the CPC.
The court upheld the validity of the execution sale, ruling that the appellant failed to prove material irregularities or substantial injury, affirming the finality of the trial court's decree.
Point of Law : Auction Sale - Once rateable distribution among two or more decree holders is ordered, it is always desirable to consolidate all the related Execution Petitions and are proceeded joint....
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