SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1958 Supreme(Pat) 35

PATNA HIGH COURT
V.Ramaswami and R.K.Choudhary JJ.
Basant Lal
Versus
Bala Misra
Appeal From Appellate Decree No. 709 of 1949 ;
Decided On : FEBRUARY 20, 1958

A transferee from an execution purchaser is a necessary party in a proceeding to set aside the execution sale under Order 21, Rule 90, Code of Civil Procedure, and is entitled to notice of the proceeding.

Headnote:

EXECUTION SALE - SETTING ASIDE - NOTICE TO TRANSFEREE - NECESSARY PARTY - ORDER 21, RULE 92, CODE OF CIVIL PROCEDURE - REGISTRATION - EFFECT FROM DATE OF EXECUTION - SECTION 47, REGISTRATION ACT.

Fact of the Case:

Plaintiff purchased disputed properties from defendant second party in an auction sale. Defendant second party applied to set aside the sale under Order 21, Rule 90, Code of Civil Procedure, which was allowed ex parte. Plaintiff was not made a party in the proceeding. Plaintiff filed a suit for declaration of title and recovery of possession.

Finding of the Court:

The lower appellate court held that the plaintiff was bound by the order of the executing court setting aside the sale, as he was not a necessary party to the proceeding and the sale in his favor became effective against third parties only on the date of registration.

Issues: 1. Whether the plaintiff was a necessary party in the proceeding to set aside the execution sale? 2. Whether the order of registration took effect from the date of execution under Section 47 of the Registration Act?

Ratio Decidendi: 1. Order 21, Rule 92, Code of Civil Procedure, requires notice to be given to all persons affected by an application to set aside an execution sale. The plaintiff, as a transferee from the execution purchaser, was a person affected by the order and should have been given notice. 2. Section 47 of the Registration Act provides that a registered document takes effect from the date of execution. The sale deed in favor of the plaintiff was executed on 18-3-1944 and registered on 24-3-1944. Therefore, the registration took effect from the date of execution and the plaintiff's title became effective against third parties on 18-3-1944.

Final Decision: The appeal was allowed, the decrees of both the lower courts were set aside, and the plaintiff was granted a decree for a declaration of his title and recovery of possession of the disputed land along with mesne profits.

Judgment

1. In the suit which is the subject-matter of this appeal the defendant second party had purchased the disputed properties in an auction sale in Execution Case No. 165 o£ 1942. The execution was with respect to a money decree obtained by defendant No. 13 in Money Suit No. 52 of 1940 against the defendant first party for a refund of the consideration of a sale-deed. Defendant No. 13 obtained a decree in that suit and assigned the decree to defendant second party, who instituted the execution case.

In the course of execution, the properties were sold and purchased by the defendant second party. On 18th March, 1944, the plaintiff purchased the disputed properties from the defendant second party. It appears that on 22nd March, 1944, defendant No. 2 made an application under Order 21, Rule 90, Code of Civil Procedure, for setting aside the sale. The application was allowed ex parte on 16th June,. 1944, and the sale was set aside.

The plaintiff was not made a party in Miscellaneous Judicial Case No. 164 of 1944. He has instituted the present suit on the allegation that the order of setting aside the execution sale was not binding upon him and that he had title to the disputed properties and he is entitled to recover possession of the same. Defendant No. 2 was the main contestant in the suit. The ground upon which he contested the suit was that the plaintiff had knowledge of the execution proceeding and that the order of setting aside the sale was binding upon him. The lower appellate Court has found that, the plaintiff was bound by the order of the executing Court in Miscellaneous Judicial Case No. 104 of 1944, dated 16th June, 1944, on the ground that the plaintiff was not a necessary party to the Miscellaneous Judicial Case and also upon the ground that the sale in favour of the plaintiff dated 18th March, 1944, became effective against third parties only on 24th March, 1944, when the registration proceedings were complete.

2. In support of this appeal on behalf of the plaintiff the learned Government Advocate has submitted that the lower appellate Court has committed an error of law in holding that the plaintiff was bound by the order passed in Miscellaneous Judicial Case No. 164 of 1944. In the first place it was contended on behalf of the appellant that the plaintiff was a necessary party in Miscellaneous Judicial Case No. 164 of 1944 and notice should have been served upon him under the provisions of Order 21, Rule 92, Code of Civil Procedure, which is in the following terms ;

"92. (1) Where no application is made under Rule 89, Rule 90 or Rule 91, or where such application is made and disallowed, the Court shall make an order confirming the sale, and thereupon the sale shall become absolute.

(2) Where such application is made and allowed, and where, in the case of an application under Rule 89, the deposit required by that rule is made within thirty days from the date of sale, the Court shall make an order setting aside the sale: Provided that no order shall be made unless notice of this application has been given to all persons affected thereby.

3. No suit to set aside an order made under this rule shall be brought by any person against whom such order is made." In support of this submission learned Counsel referred to the decision of the Calcutta High Court in Menajuddi Biswas v. Toam Mandal, ILR 39 Cal 88i (A), where it was pointed out that a transferee from the execution purchaser was a necessary party to a proceeding for reversal of the execution sale, when such proceeding was commenced after the transfer had been affected.

It was pointed out by Mookeree, J. in the course of his judgment in that case that the effect of the order of cancellation of the sale was to affect the interest of the purchaser behind his back, and the elementary principle was that no person was to be deprived of Ms property in any judicial proceeding unless he had had an opportunity of being heard. In our opinion, the argument is well founde



Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top