IN THE HIGH COURT OF BOMBAY
M.G.Chitale and J.N.Nain, JJ.
Appellants: Motilal Hirachand Marwadi
Vs.
Respondent: Sadabai and Ors.
A.F.A.D. No. 352 of 1960 Decided On: 30.01.1968
Counsels:
For Appellant/Petitioner/Plaintiff: M.L. Pendse, Adv.
For Respondents/Defendant: G.N. Vaidya and G.S. Gupte, Advs. and S.M. Mhamane, Adv. for Mina Bal, Adv.
AUCTION SALE - CONFIRMATION - LEGAL REPRESENTATIVES - VALIDITY - COURT SALE - TITLE - REPRESENTATION - EXECUTION PROCEEDINGS - LIMITATION - POSSESSION - JOINT AND SEVERAL DECREE - DECREE-HOLDER - JUDGMENT-DEBTOR - SECTION 50 OF CIVIL PROCEDURE CODE, 1908 - ORDER 21, RULES 89, 90, 92 OF CIVIL PROCEDURE CODE, 1908 - ORDER 21, RULE 22 OF CIVIL PROCEDURE CODE, 1908 - SECTION 50(1) OF CIVIL PROCEDURE CODE, 1908 - ORDER 21, RULE 92(3) OF CIVIL PROCEDURE CODE, 1908:
Fact of the Case:
In a suit for possession of three houses, the plaintiff claimed title through an auction sale held in execution of a joint and several money decree against two judgment-debtors, Ratanchand and Hirachand. Ratanchand died before the auction sale, while Hirachand died after the sale but within 30 days thereof. The defendant, Hirachand's son, contested the suit on various grounds, including the absence of necessary parties, limitation, and the invalidity of the auction sale due to the non-joinder of Ratanchand's heirs.
Finding of the Court:
The trial court dismissed the plaintiff's suit, holding that the auction sale was not binding on the defendant since he was not brought on record as Hirachand's legal representative at the time of the sale's confirmation. On appeal, the lower appellate court reversed the trial court's decision, finding the auction sale to be valid and decreeing the plaintiff's claim.
Issues: 1. Whether the auction sale was valid despite the non-joinder of Ratanchand's heirs as legal representatives at the time of the sale's confirmation. 2. Whether the plaintiff was entitled to possession of the entire suit property, considering that Ratanchand's interest may have escheated to the State.
Ratio Decidendi: 1. The court held that the auction sale was valid and binding on the defendant, even though Ratanchand's heirs were not brought on record as legal representatives at the time of the sale's confirmation. The court reasoned that: - The decree in execution of which the sale was held was a joint and several money decree, and the fact that Ratanchand's heirs were not brought on record did not matter. - Order 21, Rule 92 of the Civil Procedure Code (CPC) casts a statutory duty on the court to confirm a sale held in execution proceedings, if no application to set aside the sale is submitted under Rules 89, 90, or 91 of Order 21, or if such an application is made and disallowed. - An auction-purchaser gets title because of the auction sale itself, and not because of the confirmation. Confirmation is a statutory duty cast on the court, and no representation for the judgment-debtor's property is necessary at the stage of confirmation. - The legal representatives of the deceased judgment-debtor may not be aware of the auction sale, but that does not affect the validity of the sale. They have the right to exercise their legal rights within the period of limitation, and ignorance of their predecessor's rights and liabilities cannot be a ground to hold that they would be necessary parties at the date of confirmation of the auction sale. 2. Regarding the plaintiff's entitlement to possession of the entire suit property, the court held that since the defendant did not dispute his possession of the entire property and his right, title, and interest had passed on to the plaintiff through the auction sale, a decree for possession of the entire suit property could be passed in the plaintiff's favor. The court noted that Ratanchand's legal representatives or the State could take appropriate legal action if they had any claims to the property.
Final Decision: The court dismissed the defendant's appeal and confirmed the lower appellate court's decision, decreeing the plaintiff's claim for possession of the entire suit property.
Based on the provided legal document, the key points are as follows:
Validity of Auction Sale and Its Binding Effect: The court held that an auction sale conducted in execution of a joint and several decree remains valid and binding on the judgment-debtor's legal representatives even if they are not brought on record at the time of sale confirmation, provided the sale was otherwise properly held (!) (!) (!) . The sale's validity is primarily dependent on the correctness of the sale process itself, not on whether the judgment-debtor's legal representatives are present at the confirmation stage.
Role of Confirmation: Confirmation of the sale is a statutory duty of the court that follows automatically if no application is made to set aside the sale within the prescribed period. The act of confirmation does not require the presence or representation of the judgment-debtor’s legal representatives at the time of confirmation (!) (!) (!) . Once a sale is properly held, its confirmation is a procedural step, and the title passes to the purchaser from the date of sale, not from the date of confirmation (!) (!) .
Representation of Judgment-Debtor’s Estate: Representation for the estate of a deceased judgment-debtor is essential at the substantive stage of the sale (the sale itself), but not necessarily at the confirmation stage, provided the sale was validly conducted while the judgment-debtor was alive and properly represented (!) (!) . The legal consequences of a valid sale follow from the sale process, and the absence of the legal representatives at confirmation does not invalidate the sale if the sale was otherwise conducted properly.
Effect of Death of Judgment-Debtor: Death of the judgment-debtor after the sale but before confirmation does not necessarily invalidate the sale, especially if the sale was conducted when the judgment-debtor was alive and properly represented. The legal representatives are deemed to step into the shoes of the deceased judgment-debtor and have the right to exercise their legal rights within the limitation period (!) (!) .
Limitation and Exercise of Rights: The legal representatives or other interested parties, such as the State, have the right to challenge or dispute the sale within the limitation period. Ignorance of the sale or the judgment-debtor’s death does not affect the validity of the sale or the legal position of the purchaser (!) (!) .
Right to Possession: The court confirmed that a decree for possession of the entire property can be granted if the defendant's possession and interest in the property are not disputed, and the auction sale transferred the rights to the purchaser. The fact that one judgment-debtor died before the sale does not prevent the court from granting possession of the entire property to the auction purchaser, provided the sale was valid and the defendant is in possession of the entire property (!) (!) .
Conclusion: The appeal was dismissed, affirming the lower appellate court’s decision, and the sale was held to be valid and binding on the judgment-debtor’s estate, even if the legal representatives were not present at the confirmation stage. The court emphasized that the legal consequences of a valid sale are independent of representation at the confirmation stage, as long as the sale itself was properly conducted (!) .
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1. The facts giving rise to this appeal, briefly stated, are as follows:
2. In Civil Suit No. 131 of 1923 money decree was obtained against Ratanchand Walchand and Hirachand Gambhirmal. It is not disputed that the decree was a joint and several decree against both these judgment-debtors. In execution of that decree, auction sale in respect of the property involved in the present suit was held on 23rd March 1944. The sale was confirmed on 14th October 1944. For some reasons which are not clear on record, the sale certificate was issued as late as 18th March 1953. It is not disputed that judgment-debtor Ratanchand Walchand died on 6th March 1935 i.e., long before the auction-sale in question was held. Judgment-debtor Hirachand Gambhirmal died on 21st April 1944 i.e. after the auction-sale in question, but within 30 days thereof. The plaintiff Manikchand Daulatram Bora filed the present suit on 10th August 1956 to recover possession of the three houses which are the subject-matter of the present suit on the basis of the sale certificate issued to him.
3. Defendant Motilal Hirachand Mar-wadi, who is the son of above-mentioned judgment-debtor Hirachand, by his written statement, Exhibit 10, contends that the suit is bad for want of necessary parties, it is barred by limitation, the debt for which the. property was sold was avyavaharik. i.e. illegal and immoral, hence not binding on him, the decree in execution of which the sale was held is not binding on him as he was not a party to the suit, since he was not brought on record as Hirachands heir in the execution proceedings, the auction sale is not binding on him, and the present suit for possession is, therefore, not tenable.
4. The learned trial Judge held that the auction-sale in question was not binding on the defendant, inasmuch as he was not brought on record on the date of confirmation of the sale. In view of this finding, he dismissed the plaintiffs suit with costs. It may be mentioned here that the defendants contentions that the debt for which the decree was passed was avyavaharik, that the suit was not tenable for want of necessary parties, were not pressed in the trial Court. Although the plea of limitation was taken in the written statement, no specific issue on that point was asked for in the trial Court.
5. The plaintiff preferred an appeal to the District Court, Ahmednagar. The learned Assistant Judge, who heard the appeal, held that the auction-sale in question was legal and valid inasmuch as judgment-debtor Hirachand was alive on the date of the sale, the fact that the heirs of the other judgment-debtor Ratanchand were not brought on record did not matter as the decree in execution of which the auction-sale was held was a ioint and several money decree, and the fact that on the date of the confirmation of the auction-sale the present defendant was not brought on record as the legal representative of deceased judgment-debtor Hirachand did not vitiate the auction-sale. In view of these findings, he allowed the appeal, set aside the decree of the trial Court and decreed the plaintiffs claim.
6. In this second appeal, Mr. Pendse for the defendant contends that the view taken by the trial Court is correct and that of the lower appellate Court is wrong. Mr. Pendse invites our attention to Sir Dinshah Mullas Commentary on Civil Procedure Code, Vol. I, 13th Edition, page 262. The learned author mentions that under the present Code of 1908 the words "fully satisfied" have been substituted for the words "fully executed". Mr. Pendse further relies on, the learned authors observations at page 263 which are to the effect that the expression fully executed gave rise to the question as to when a decree could be said to be "fully-executed". The learned author then refers to the conflicting decisions and observes:-
"It was to remove this conflict of decisions that the word satisfied has been substituted in the present section for the word executed. The effect of th
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