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1987 Supreme(Kar) 55

Karnataka High Court
S.V.Kanakaraj - Appellant
Versus
Vijaya Bank - Respondent
Decided On : 02-27-87
M.F.A. : 507 of 1982

Advocates:
G.S.VISHVESHVARA, I.T.Rai, S.VIJAYASHANKAR

Non-compliance with O. 21, R. 84, C. P. C. renders the sale a nullity, and the court is obligated to issue a fresh proclamation of sale and resell the property.

Headnote:

R. 84 - Sale of Property - O. 21, R. 84, C. P. C. - The court held that the sale held on 9-3-1979 is a nullity as the highest bid amount was not deposited immediately after the declaration, as required by O. 21, R. 84, C. P. C. The court directed the Lower Court to issue a fresh proclamation of sale and resell the property.

Fact of the Case:

The appeal was filed by judgment-debtors 4, 5, and 6 against the order rejecting their applications to set aside the sale of property held by the decree-holder Vijaya Bank. The auction purchaser claimed to have obtained a Receipt Order on 9-3-1979 but deposited the 1/4th bid amount on 10-3-1979. The judgment-debtors alleged irregularities in the sale process.

Finding of the Court:

The court found that the sale held on 9-3-1979 was a nullity as the 1/4th bid amount was not deposited immediately after the declaration, as required by O. 21, R. 84, C. P. C. The court directed the Lower Court to issue a fresh proclamation of sale and resell the property.

Issues: The issues included the alleged irregularities in the sale process, compliance with O. 21, R. 84, C. P. C., and the impleading of the auction purchaser as a necessary party.

Ratio Decidendi: The court held that the sale was a nullity as the 1/4th bid amount was not deposited immediately after the declaration, as required by O. 21, R. 84, C. P. C. The court also clarified that the auction purchaser is a necessary party in such cases.

Final Decision: The appeal was allowed, and the Lower Court was directed to issue a fresh proclamation of sale and resell the property.

P. A. KULKARNI, J.

( 1 ) THIS is an appeal by judgement-debtors 4, 5 and 6 against the order dt. 5-4-1982 passed by the Civil Judge, Chickmagalur, in Execution Case No. 159 of 1976 rejecting I. A. No. 6 filed by judgement debtors 2 and 4 under O. 21, R. 90 read with S. 151, C. P. C. and rejecting I. A. No. 7 filed by judgement debtors 5 and 6 under O. 21, R. 90 read with S. 151, C. P. C.

( 2 ) THE decree-holder Vijaya Bank is respondent 1 in the revision. The decree-holder Vijaya Bank obtained a decree against judgement-debtors 1 to 8 in O. S. 21 of 1979. Judgement-debtor 1 is the firm. Judgement-debtor 2 S. K. Venkatachala Setty is shown as a partner of the said firm. It is now submitted before me that S. K. Venkatachala Setty is dead. Therefore the execution is proceeded with by the decree-holder against judgement-debtors 3 to 7.

( 3 ) THE property was brought to sale by the decree-holder Bank. The sale was held on the spot on 7-3-1979 and the sale took place in the Court on 9-3-1979. The present auction purchaser respondent 5 was the highest bidder for Rs. 75,000/ -. The Court accepted the highest bid of auction purchaser respondent 5 on 9-3-1979 and directed that he should deposit 1/4th of the bid amount immediately and adjourned the case to 11-4-1979 for confirmation of the sale.

( 4 ) RESPONDENT 5 auction purchaser claims to have obtained Receipt Order on 9-3-1979 itself. But the 1/4th bid amount was deposited by him in the State Bank of Mysore, Chickmagalur Branch. on 10-3-1979.

( 5 ) JUDGEMENT-DEBTORS 2 and 4 filed I. A. No. 6 under 0. 21, R. 90, C. P. C. read with S. 151, C. P. C. and judgement-debtors 5 and 6 filed I. A. No. 7 under O. 21, R. 90, C. P. C. for setting the said sale alleging that one of them was not served with the sale notice and that there was no proper publication of the sale notice and that the property was bid for an extremely low price on account of the various material irregularities that have occurred in the course of the publication of the sale.

( 6 ) THE decree-holder as well as the suction purchaser resisted the said applications.

( 7 ) THE Court below dismissed both I. A. No. 6 and I. A. No. 7. Hence the appeal.

( 8 ) WHILE the matter was pending here, the appellants' counsel filed an application I. A. No. 5 to permit him to raise an additional ground to the effect as :-"as the auction purchaser has not immediately deposited or paid 25 per cent of the purchase money as required by R. 84 of O. XXI of C. P. C. , the sale is liable to be set aside. "the auction purchaser filed his counteraffidavit stating that he had tendered 1/4th of the bid amount on the very same day and it was already 5. 00 p. m. when the bid was accepted by the Court and hence he took the Receipt Order on the same day at 5-15 p. m. and deposited the money in the State Bank of Mysore on 10-3-1979.

( 9 ) THE learned counsel Shri Visweswara raised an initiat objection that the applications I. A. Nos. 6 and 7 were filed only under O. 21, R. 90, C. P. C. read with S. 151, C. P. C. and that they do not appear to have been filed under S. 47, C. P. C. and that therefore the present additional ground which would bring the applications within the ambit of S. 47, C. P. C. should not be permitted to be raised in the present proceedings.

( 10 ) IN Para 3 of the applications, it is clearly stated as :- "these judgement-debtors humbly submit that the sale held in the above case either on 7-3-79 or on 9-3-79 is illegal and liable to be set aside etc. , etc. . " therefore, a perusal of the said applications would show that the judgement-debtors have contended that the sale is illegal and not according to law. How it is illegal and not according to law would be rather a matter of evidence. Evidence need not be pleaded in the pleadings. Further merely because S. 47, C. P. C. is not mentioned in the applications filed, it does not mean that it should not be taken as one coming within the ambit of S. 47, C. P. C. After all in our country very






















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