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1982 Supreme(Cal) 112

High Court Of Calcutta
A. K. SEN, B. C. CHAKRABARTI
NAKUL CHANDRA DUTTA - Appellant
Versus
AJIT KUMAR CHAKRABARTY - Respondent
CR 2130  Of  1980
Decided On : 03/26/1982

Advocates Appeared:
B.C.Dutt, BIMAL JYOTSNA CHATTERJI, MALOY BOSE, NANDA DULAL NAYEK, PRADIPTA ROY, SAKTI NATH MUKHERJI

Fraud on the Court vitiates a sale and can be set aside even beyond the period of limitation.

Headnote:

CIVIL PROCEDURE CODE - Order 21, Rule 90 - Application to set aside a sale - Fraud on the Court - Valuation of property - Material irregularity.

Fact of the Case:

The decree-holder purchased the property in an auction sale for Rs. 9,000/- and odd on 1-7-1968. The widow of Gopal Chandra acting through Panchanan filed an application for setting aside the same on 29-7-1968 claiming that the property was worth Rs, 1,50,000/-. The application, however, was dismissed for default on 19-8-1972. The sale in favour of Nakul was confirmed on 4-12-1972. The opposite party No. 1 Ajit Kumar Chakraborty thereupon filed an application under Order 21, Rule 90 of the Code for setting aside the auction sale held on 1-7-1968 which was registered as Misc. Case No. 48 of 1976.

Finding of the Court:

The Court found that the processes had not been properly served or that there was any irregularity in publishing and conducting the sale. It did not agree that the price fetched at the sale was shockingly low. It also found that the petitioner before him, namely, Ajit had failed to make out any case of fraud or fraudulent concealment so as to ask for extension of limitation.

Issues: Whether the applicant had knowledge of the execution proceedings and whether he was kept out from such knowledge by reason of fraud practised by the decree-holder.

Ratio Decidendi: The Court held that the applicant had no knowledge of the execution sale prior to the date claimed by him. The decree-holder or for the matter or that Panchanan who has subsequently purchased the property from the decree-holder for a paltry sum of Rs. 25,000/- only could not show that the applicant had knowledge at an earlier date. From the conduct of the decree-holder Nakul Chandra Dutta and Panchanan Chakraborty it can be easily inferred that they were acting in concert to defraud the other co-sharers.

Final Decision: The Court allowed the application under Order 21, Rule 90 of the Code and set aside the auction sale.

B. C. CHAKRABARTI, J.

( 1 ) THIS Rule was issued at the instance of the petitioner/ decree-holder and is directed against an appellate Order passed in Misc. Appeal No. 62 of 1979 reversing the order of the trial Court it Misc. Case No. 48 of 1976 arising out of in application under Order 21, Rule 90 of the Civil P. C. The application under Order 21, Rule 90 of the Code was filed by the opposite party No. 1 on 22-9-1976 for setting aside a sale held on 1-7-1968.

( 2 ) THE facts leading to the filing of the application under Order 21, Rule 90 of the Civil P. C. may be briefly stated thus.

( 3 ) ONE Gopal Chandra Chakraborty was the owner of 3 1/2 cottahs of land with a three storeyed building standing thereon, being premises No. 372/5, Russa Road South, subsequently renumbered as 3, Deshpran Sashmal Road, Gopal Chandra obtained a loan of Rs. 30,000/- from Metropolitan Insurance Company Limited. The decree-holder Nakul Chandra Dutta instituted Suit No. 459 of 1952 against opposite party No. 3 Panchanan Chakraborty for recovery of a loan of Rs. 6,000/- with interest in the original side of this Court and obtained a decree for Rs. 9,000/- inclusive of interest. Gopal Chandra, father of Panchanan was impleaded as a co-defendant in this suit and as such was a co-judgment-debtor. Metropolitan Insurance Company Limited instituted Title Suit No. 79 of 1953 in the 3rd Court of the learned Subordinate Judge at Alipore for recovery of the principal sum of Rs. 30,000/-together with interest and obtained a decree on 7-5-1953 for Rs. 39,165. 34. Gopal Chandra Chakrabarty died in 1955 leaving behind his widow and 3 sons, opposite parties 1, 2 and 3. In 1960 Nakul Chandra got the decree passed by the High Court in his favour transferred to the 3rd Court of the learned Subordinate Judge, Alipore for execution and Money Execution Case No. 38 of I960 was started. Life Insurance Corporation which had taken over the business of Metropolitan Insurance Company after nationalisation, started Title Execution Case No. 23 of 1960 in the same 3rd Court of the learned Subordinate Judge. In this Execution Case No. 23 of 1960, the widow and sons of Gopal Chakraborty deposited Rs. 30,000/ -. In the execution case at the instance of Nakul Chandra Dutta, the property namely, No. 3, Deshapran Sashmal Road was attached and put to sale by auction. In the sale that followed Nakul Chandra Dutta, the decree-holder purchased the property for Rs. 9,000/-and

odd on 1-7-1968. The widow of Gopal Chandra acting through Panchanan filed an application for setting aside the same on 29-7-1968 claiming that the property was worth Rs, 1,50,000/ -. The application, however, was dismissed for default on 19-8-1972. The sale in favour of Nakul was confirmed on 4-12-1972. It is significant, however, that such confirmation was obtained only when the opposite party No. 1 Ajit Kumar Chakraborty (who had filed the application under Order 21, Rule 90 of the Code) one of the sons of Gopal Chandra had started Title Suit No. 71 of 1972 for partition of the self-same property, namely, No. 3, Deshapran Sashmal Road. This suit was contested by his mother and his brother Panchanan who in their defence denied plaintiff's title but did not disclose the auction sale already held. The suit was eventually decreed in a preliminary form on 20-2-1974. The appeal filed by the mother and Panchanand against the preliminary decree for partition being Title Appeal No. 503 of 1974 was dismissed on 13-2-1975. Though the sale was confirmed in 1972, the auction-purchaser took no steps for taking delivery of possession until 1974. He took out the sale certificate in March, 1974 and applied for delivery of possession under Order 21, Rule 95 on 20-6-1974. Faked possession was taken when opposite parties 2 and 3 along with their mother continued to remain in possession and shortly thereafter when Panchanan's appeal against the partition decree failed in July 1976 he purchased the disputed property from the decree-

























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