IN THE HIGH COURT OF BOMBAY
(NAGPUR BENCH)
Dhabe H.W., J.
Gulabsingh Bacchusingh Thakur...Applicant.
Versus
Chandrapalsingh Sheonathsingh Thakur others....Non-applicants.
Civil Revision Application No. 383 of 1982, decided on 10-3-1986.
Advocates appeared :
A.S. Bobde V.C. Daga, for applicant.
S.C. Mehadia, for non-applicants Nos. 3-A to 3-E 4.
V.R. Manohar M.H. Rizwy, for non-applicant No. 7.
The provisions relating to the sale of immovable property in execution of the decrees are contained from Rule 64 of Order 21 of the Code onwards. Order 21 Rule 64 of the Code empowers the Court to sell the property of the judgment debtor and to payout of the sale proceeds the money decree of the decree holder. Rule 65 of Order 21 of the Code, which is more relevant to this case, provides that "save as otherwise prescribed, every sale in execution of a decree shall he conducted by an officer of the Court or by such other person as the Court may appoint in this behalf, and shall he made by public auction in manner prescribed." It is thus clear from Rule 65 of Order 21 of the Code that every sale in execution of a decree has to be made by a public auction. Even the trial Court itself, therefore, has directed the sale in the instant case to be made by a public auction.
Rule 66 provides that "where any property is ordered to be sold by public auction in execution of a decree, the Court shall cause a proclamation of the intended sale to be made in the language of such Court." Sub-section (2) of Rule 66 then provides for drawing up of a proclamation by the trial Court itself after issuing notice to the decree holder and the judgment debtor.
It is well settled that the provision of Rule 65 of Order 21 of the Code is mandatory and, therefore, every sale. In execution of the decree under the Code has to be by public auction. Therefore, if the sale by calling for offers by advertisement is not a sale by public auction it would not be sale to which the provisions of Order 21 Rule 90 of Code would be applicable became such a sale would he null and void being in breach of Order 21 Rule 65 of the Code as well as the order of the Court dated 25-2-1982 (see AIR 1968 S.C. 954). The power of the Court to consider legality or otherwise of such a sale is then under Section 47 and not under Order 21 Rule 90 of the Code.
If the requirement of Rule 65 of Order 21 of the Code is that every sale shall be by a public auction, then the sale held in any other manner would be a nullity. In the instant case, even the Court by his order has directed to hold the sale by public auction by his order dated 25-2-1982. The Commissioner, therefore, had no power to hold the sale by calling for offers by advertisement in the instant case. In fact the procedure provided under the relevant rules under Order 21 of the Code for public auction should have been followed by the Court and the Commissioner in the instant case. The sale held in the instant case is, therefore, a nullity. In this view of the matter, the requirement of Rule 90 of Order 21 of the Code that there must be a substantial injury need not be looked into.
Whether the non-applicant No.7, who is a stranger and has given the highest offer and deposited the money as per the directions of the trial Court, is entitled to interest upon the amount deposited by him in the trial Court for the purchase of the suit house on consideration of the principles of equity because his money was locked up in the deposit without there being any fault on his part. The said ground is urged on behalf of the non-applicant No.7 on the basis of the principles of equity. The learned Counsel for the non applicant No.7 has ruled upon the principles of restitution incorporated in Section 144 of the Code. According to him, the auction purchaser would have been entitled to possession of the house after the sale was confirmed if there was no stay of this Court. It is his submission that for no fault of the auction purchaser (non applicant No.7) who is altogether a stranger to the dispute between the parties in the instant suit, he suffered for all these long years he could not utilise the money deposited by him on 13-4-1982.
It is, however, contended on behalf of the applicant that the principle relating to the repayment of the purchase money with or without interest is contained in Order 21 Rule 93 of the Code. The submission is that the said provision is exhaustive and except in cases covered by the said provision, no interest upon the deposit can be directed by the Court. The further submission is that unless the amount of purchase money is actually paid to the applicant and other co-owners, the interest cannot be awarded to the auction purchaser because the Court can direct the payment of interest only against any person to whom the amount deposited has been paid. It is also the contention that even on equitable considerations, the auction purchaser is not entitled to any interest from the applicant. It is urged that the auction-purchaser himself should have taken care to seek order from the trial Court to invest his purchase money in some good securities so as to earn fair interest upon the same and by his failure to do so, he cannot penalise the successful parties by requiring them to pay the interest.
Briefly, the facts are that the non-applicants 1 and 2 in this revision filed a suit for partition against the applicant and the non-applicants 3 to 6. The said suit was numbered as Civil Suit No. 945 of 1968. The parties to the said suit filed an application on 4-7-1969 for passing a consent decree in terms of the compromise arrived at between them. As per the compromise terms, it was agreed that each of the co-owners had 1/6th share in the suit house. However, since it was found that the said suit house was not capable of being partitioned into specific shares, it was agreed that it should be sold and the sale proceeds should be divided between the parties according to their respective shares. The sale was to be effected and the sale deed was to be executed in favour of the buyer within a period of six months, failing which the trial Court was to appoint a Receiver to sell the property and to divide the sale proceeds between the parties. A decree in terms of the aforesaid compromise was passed by the trial Court on 4-7-1969 itself.
2. It appears that the sale of the suit house was not made by the parties within six months. Hence an application was filed by the non-applicant No. 5 in the instant revision for appointment of a Receiver for sale of the property in suit which is Ex. 1. The said application was filed on 13-6-1974 in Miscellaneous Judicial Case No. 173 of 1974. On 25-2-1982, the learned trial Court passed an order upon the aforesaid application appointing Shri M.I. Shareef Advocate as a Commissioner to sell the suit property by public auction and to divide the sale proceeds amongst the parties as per their shares. According to the said order he was directed to submit his report by 31-3-1982. By the said order he was directed to take help of the Architect Shri Nimgade for assessing the market price of the suit property. A writ of commission was issued to the Commissioner on 6-3-1982 and the same was received by him on 11-3-1982. The Architect submitted his report to the Commissioner on 20-3-1982 whereafter on 25-3-1982 an advertisement was given by the Commissioner in the issue of the said date of the daily 'Nagpur Times' inviting written offers from the intending purchasers by 31-3-1982. The description of the suit house given in the said advertisement was as follows:
“A double storeyed house bearing Corporation No. 123/0+1 in Sadar Extension Area, Nagpur adjacent to Advocate Deopujari's house.”
3. The Commissioner submitted to the trial Court his report on 31-3-1982 containing the offers received by him and the trial Court on the same date accepted the offer of Rs. 1,27,000/- made by the non-applicant No. 7 in the instant revision, which was the highest offer from amongst the offers received by the Commissioner. It may be stated at this stage that the Architect Shri Nimgade had estimated the market price of the suit house at Rs. 1,16,000/- and the offer made by the non-applicant No. 7 was more than the said amount. By the same order dated 31-3-1982 the learned trial Court directed the auction purchaser i.e. the non-applicant No. 7 to deposit 25 per cent of the price within 10 days and the balance within 15 days from the date of his order. The case was posted for confirmation of the sale on 30-4-1982. It is not in dispute that the auction purchaser deposited 25 per cent of the amount on 3-4-1982 and the full amount on 13-4-1982.
4. On 30-4-1982 the applicant filed his objection to the report of the Commissioner praying for rejection of the same and for proper execution of the writ of commission issued to him. The non-applicant No. 5 had also filed his obje
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