IN THE HIGH COURT OF KARNATAKA AT DHARWAD BENCH
SREENIVAS HARISH KUMAR, RAMACHANDRA D. HUDDAR, JJ.
Raghunath Gouda S/o. Gurunath Gouda Patil – Appellant
Versus
Sri. G.D. Venkatesh s/o. Dodda Basappa – Respondent
Regular First Appeal No. 100051 of 2021 (-) C/W Regular First Appeal No. 100140 of 2021
Decided on : 07-09-2023
Fact of the Case:
The case involved questions regarding the setting aside of an auction sale of a property in execution proceedings, the issuance of a sale certificate, and the determination of the rights of the objectors. The DHR filed a suit for specific performance of a contract, and the suit was decreed in part. The decree holder initiated execution proceedings, and the property was put up for auction. The appellants, who were objectors and JDR No.3, filed applications to determine their rights and set aside the auction sale. The executing court dismissed the applications, leading to the appeals.Finding of the Court:
The court found that the objections raised by the appellants did not warrant interference with the order passed by the executing court. The court emphasized the need to dispose of objections expeditiously and prevent unwanted litigation. The court also noted that the objections did not establish substantial injury or material irregularity/fraud to set aside the auction sale.Ratio Decidendi:
The court held that objections raised during execution proceedings should be disposed of expeditiously to prevent unwanted litigation. The court emphasized the limited nature of issues that can be adjudicated under Section 47 of CPC and the need to establish a connection between inadequacy of price and material irregularity/fraud to set aside an auction sale. Final Decision: The appeals filed by the appellants were dismissed, and the orders passed by the executing court were affirmed.Understood. Please provide the legal document content (within
JUDGMENT :
ii) If so, in view of compromise between DHR, JDR Nos.1 and 2, auction purchaser and objector No.1, can she insist to issue sale certificate in her name as she is ready to pay/deposit the decreetal amount?
iii) Whether objector Nos.1 and 2 being the children of JDR Nos.1 and 3 respectively can seek determination of their rights in the execution proceedings in which JDR Nos.1 and 3 are parties?”
are the questions to be decided in these appeals.
2. These two appeals arise out of an order dated 26.03.2021 passed by Senior Civil Judge, Huvinahadagali, in Execution Petition No.27/2018. R.F.A.No.100051/2021 is filed by objector Nos.1 and 2 challenging the order passed on I.A.No.14 filed by them under Order XXI Rule 97 read with Section 151 of CPC to determine the right, title or interest in the property described in the scheduled appended to the application in the said execution petition whereas R.F.A.No.100140/2021 is filed by JDR No.3 under Order XXI Rule 89 of CPC to set aside the auction sale dated 28.04.2018 conducted by the Executing Court.
3. Parties to these appeals are referred as per their ranks before the Executing Court for the purpose of convenience.
4. The brief facts leading up to these execution appeals are as under:
The DHR filed a suit against JDR Nos.1 to 3 in O.S.No.52/2009 on the file of Prl. Sr. Civil Judge and JMFC, Hospet, seeking the relief of specific performance of contract based on agreement of sale dated 04.08.2008 executed by JDR Nos.1 to 3 being defendants in the said suit in respect of landed property bearing Sy.No.251A measuring 7 acres 15 cents situated at Magala village. It was alleged in the said suit that JDR Nos.1 to 3 executed the said agreement of sale agreeing to sell the suit schedule property for Rs.5,73,757/-and received Rs.2,50,000/-on 04.08.2008. Plaintiff/DHR further paid Rs.1,75,000/-to the defendants on 18.10.2008. In all he paid Rs.4,25,000/-. In the said suit, defendant Nos.1 and 2 i.e., JDR Nos.1 and 2 were placed exparte. It was JDR No.3 i.e., defendant No.3 who contested the suit by filing written statement. On contest, the said suit came to be decreed by granting the relief of refund of earnest money paid by the plaintiff/DHR and the relief of specific performance of a contract was rejected. The learned Court granted interest on the earnest money @ 24% p.a. from 04.08.2008 till realization as per the judgment and decree dated 08.10.2010.
5. This judgment and decree for refund of money was put to execution by the DHR by filing execution petition initially before Prl. Sr. Civil Judge, Hospet, in Ex.P.208/2011 and subsequently it was transferred to the Court of Sr. Civil Judge, Huvinahadagali, in view of the establishment of Sr. Civil Judge, at Huvinahadagali, and it was renumbered as Ex.P.No.27/2018.
6. Despite service of notice of the execution petition, the JDRs did not pay the decreetal amount. Therefore, the DHR took coercive steps to recover the said amount. In that process, he filed IA No.2 under Order XXI
Rule 54 of CPC. When such an order was passed, it was JDR No.3 who made available the particulars of Sy.No.265 measuring 13 acres 28 guntas and filed a memo to attach the said property and made a submission on 22.01.2015 before the Executing Court to sell the property for satisfaction of decree. Accordingly, the Executing Court attached the said property as per the procedure and put the said property for auction. In the meantime, JDR No.1 sought recall of attachment of the attached property by filing IA No.4 but the executing court on hearing both the sides dismissed IA No.4 as per the orders dated 30.09.2015. The said order attained finality as none of the parties challenged the said order before the Appellate Forum.
7. Thereafter, as per the procedure, spot sale and court sale were conducted. 13 bidders participated. One Hanumantharedddy was the highe
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Execution proceedings should be conducted expeditiously, and objections should be disposed of promptly to prevent unwanted litigation. Setting aside an auction sale requires establishing a connection....
The burden of proving property as joint family lies with the party asserting it, and executing courts must allow opportunity for evidence in objections regarding property ownership during execution p....
A transferee of a judgment debtor cannot invoke Order XXI Rule 99 for re-delivery, as their rights must be independent of the judgment debtor's rights.
Court exercising jurisdiction under Section 47 or under Order 21 of CPC must not issue notice on application of a third party claiming right in a mechanical manner.
A purchaser of property after an attachment order stands as a representative of the judgment-debtor; consequently, all challenges to the court auction must be adjudicated by the executing court under....
A charged property can be executed for recovery under a decree without instituting a separate suit, and rateable distribution is only available to pending applications from decree-holders at the time....
The execution sale was declared null and void due to the execution court's lack of jurisdiction from the absence of a required certificate from the Registrar, which is mandatory for the award to be e....
A decree established in a suit under Order XXI does not automatically nullify an execution sale where necessary parties are not included, reaffirming the principles of execution law.
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