High Court Of Calcutta
Salil Kumar Datta
JYOTISH CHANDRA RAKHIT - Appellant
Versus
PARBATI BALA - Respondent
C. R. 4436 Of 1974
Decided On : 07/12/1976
ORDER 21, RULE 90, C. P. C. - SETTING ASIDE SALE - FRAUD ON COURT - GROSS UNDER-VALUATION - LIMITATION - ESTOPPEL.
Fact of the Case:
Decree-holder obtained ex parte permission to bid on the day of sale without notice to the judgment-debtor. The property was sold at a grossly inadequate price compared to its valuation in a connected title suit. The judgment-debtor filed an application to set aside the sale under Order 21, Rule 90, C. P. C., alleging fraud on the court.
Finding of the Court:
The court held that the decree-holder's gross under-valuation of the property and the court's carelessness in approving the sale proclamation amounted to fraud on the court. The court also held that the judgment-debtor was not estopped from challenging the sale despite being aware of the facts, given the circumstances of the case.
Issues: 1. Whether the decree-holder's gross under-valuation of the property and the court's carelessness in approving the sale proclamation amounted to fraud on the court. 2. Whether the judgment-debtor was estopped from challenging the sale despite being aware of the facts.
Ratio Decidendi: 1. The court relied on the Privy Council decision in Maru-danayagam Pillai v. Manickavasakam Chettiar, which held that when a sale takes place at a serious under-value occasioned by failure on the part of the Court and of the decree-holder to carry out their obligations, the case falls within the language of Order 21, Rule 90 and the sale must be set aside, when the judgment-debtor has suffered injury thereby. 2. The court distinguished the case from Bibhuti Bhusan Dey v. Bankim Chandra Ghosh, which held that in view of the amendment to Sub-rule (2) of Rule 66 of Order 21, it is not obligatory on the executing court to determine the value of the property, on the grounds that the Calcutta Amendment to the Rule did not absolve the court of its duty to check the information provided by the parties and to ensure a fair and accurate statement of the particulars required.
Final Decision: The court discharged the rule and upheld the lower courts' decision to set aside the sale.
( 1 ) THIS rule has been obtained against the appellate order dismissing the appeal filed by the decree-holder against an order passed by the learned Subordinate Judge, First Court, Alipore allowing an application under Order 21, Rule 90 of the C. P. C. setting aside the sale in execution of the decree. This decree arises out of a suit for partition and it appears that the title of the parties was declared in eight annas share in respect of the suit properties. The value of the portion allotted by the pleader commissioner to the judgment-debtor, the opposite party before me under the decree is Rs. 8,392/ -. It appears that the decree-holder started a title execution case No. 22 of 1970 in respect of the said decree for getting possession of his allotment as also for realisation of the costs of the suit which, I am told, amounts to Rs. 700/ -. In this case it appears that the sale proclamation was served on the judgment-debtor on 29-4-1971 and after the sale proclamation was settled which it appears, was done in absence of the judgment-debtor, the sale was fixed on 8-9-1971 at 10. 30 a. m. On that very day, the decree-holder applied for permission to bid which was granted. In the sale proclamation the price of the property was given by the decree-holder as Rs. 700/ -. As no objection was raised on behalf of the judgment-debtor, this price appears to have been accepted by the court in approving the sale proclamation. The property was sold on the date fixed, that is, on 8-9-1971 at Rs. 2,000/-and was purchased by the decree-holder. Long thereafter, on 11-12-1972 the judgment-debtor filed an application for setting aside the sale. The application came up for hearing on contest before the learned Judge who held, inter alia, that the sale proclamation was served. Nonetheless the learned Subordinate Judge set aside the sale on the ground that there was fraud on court on the part of the decree-holder which vitiated the entire proceeding. Accordingly, the impugned sale was set aside. This judgment was affirmed in appeal and the present Rule as already stated is against this decision.
( 2 ) MR. Banerjee, learned advocate appearing for the decree-holder petitioner, has submitted firstly that the opposite party is estopped from challenging the sale as she did not appear when the sale proclamation was approved by the court as she was aware of the proceeding. It was secondly submitted that the application was hopelessly barred by limitation In that the requisite time for filing objection to the sale had long passed when the application for setting aside the sale was made. It was next submitted that under the Calcutta Amendment to Rule 66 of Order 21 there was no obligation on the part of the court to give its own estimate of price of the property. Accordingly it could not be said that there was any fraud on the part of the decree-holder in the sale of the property. These contentions have been disputed by Mr. Sur who is appearing on behalf of the judgment-debtor. The Privy Council in Maru-danayagam Pillai v. Manickavasakam Chettiar, 49 Cal WN 292 : (AIR 1945 PC 67) held that in drawing up a sale proclama-tion the court is not to act blindly on information supplied by the parties but is under a duty to check that information as far as possible in order that there may be, so far as possible, a fair and accurate statement of the particulars required, among them being any incumbrance to which the property is liable. The court further held that when material is readily available to check the information, it must be availed of and failure in this respect is carelessness of which the Court cannot be acquitted. The court further held that when a sale takes place at a serious under-value occasioned by failure on the part of the Court and of the decree-holder to carry out the obligations stated above, the case falls within the language of Order 21, Rule 90 and the sale must be set aside, when the judgment-debtor has suffered in
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