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1949 Supreme(Cal) 219

HIGH COURT OF CALCUTTA
G. N. DAS,DAS GUPTA, JJ.
Mihirlal
Versus
Panchkari Santra
Civil Rule No. 970 of 1949
Decided On : 15-12-1949

Advocates:
Apurba Dhan Mukherji and Chandra Narayan Laik - for Petitioner. Heramba Chandra Gupta - for Opposite Party 1.

For an extension of time under S. 18, Limitation Act, in an application for setting aside a sale, the auction-purchaser must be proved to be guilty of fraud or accessory to the fraud.

Headnote:

Fraud - Bengal Tenancy Act - S. 174(3), S. 13, S. 18, Limitation Act

Fact of the Case:

The applicant purchased an occupancy raiyati holding at auction. Subsequent applications were filed for setting aside the sale, alleging fraud and irregularity. The lower courts found the decree-holder and auction-purchaser guilty of fraud, allowing the application under S. 174(3), Bengal Tenancy Act.

Finding of the Court:

The court found that the auction-purchaser was not guilty of fraud and that the application was barred by limitation. It held that the auction-purchaser's delay in applying for delivery of possession did not constitute fraud, and that S. 18, Limitation Act, could not be invoked without proving the auction-purchaser's guilt or accessory to fraud.

Issues: The main issue was whether the auction-purchaser was guilty of fraud, affecting the application's limitation period under S. 18, Limitation Act.

Ratio Decidendi: The court held that for an extension of time under S. 18, Limitation Act, in an application for setting aside a sale, it must be proved that the auction-purchaser was guilty of fraud or accessory to the fraud that prevented the judgment debtor from knowing of the sale.

Final Decision: The court set aside the lower courts' orders and dismissed the application under S. 174(3), Bengal Tenancy Act, as it was barred by limitation.

Judgement

Das GUPTA, J. :- The applicant before us purchased at auction an occupancy raiyati holding, in execution of a rent decree. The sale was held, on 13th March 1946. On 25th April 1946, an application was filed by one Kachimannessa Bibi claiming to have purchased the interest of the judgment-debtors, for setting aside the sale under the provisions of S. 174(3), Bengal Tenancy Act. This application was dismissed by the Court on 13th December 1947. On 6th January 1948, the auction-purchaser the petitioner before us filed an application for confirmation of the sale. The sale was ultimately confirmed on 17th Match 1948. On 27th June 1948, an application was filed by two of the 17 judgment-debtors who ate Panch Kari Santra and Satya Bala Dasi, opposite parties Nos. 1 and 2, under S. 174(3), Bengal Tenancy Act, for setting aside the sale on the ground of fraud and irregularity in publishing and conducting the sale. The learned Munsif allowed the application and the learned District Judge has dismissed the appeal that was filed by the present petitioner against that decision. The learned District Judge has come to the conclusion that the decree-holder was guilty of fraud inasmuch as he mentioned the value of the holding at Rs. 10 only in the sale proclamation and further that he fraudulently suppressed the sale proclamation and other notices. He also came to the conclusion that the auction-purchaser was also guilty of fraud and that consequently the applicants under S. 174(3), Bengal Tenancy Act, were entitled to the benefit off S. 13, Limitation Act, an so, the application though filed long after sis months after the date of the sale, was not barred by limitation.

2. The first question agitated before us is whether the learned District Judge acted irregularly and illegally in the exercise of his jurisdiction in coming to the conclusion that the auction purchaser was also guilty of fraud. The learned District Judge appears to have based his decision in this matter on two facts, first, that the auction purchaser has benefited by the fraud on the part of the decree-holder inasmuch as there was paucity of the bidders because of the gross under valuation in the sale proclamation and the auction-purchaser was thus able to have the land for an inadequate price. The other ground on which the learned District Judge relied was that the auction purchaser did not apply for delivery of possession for two years after the date of the sale. 3. It has been pointed out to us by Mr. Mukherji on behalf of the petitioner that the learned District Judge misread the evidence, inasmuch as he omitted to notice that the sale was confirmed as late as 21st February 1948 so that the delay of the auction-purchaser was not 2 years but only one month. I am myself unable to agree that the mere fact that the auction-purchaser makes delay in applying for delivery of possession can be any ground for thinking that he is acting fraudulently with a view to prevent the judgment-debtors from knowing about the sale. But even if such delay can justify any conclusion as regards fraud, it is abundantly clear that there was us such delay as the learned District Judge seems to have wrongly thought. From the facts pointed out above it appears that though the sale was actually held on 13th March 1946 the application under S. 174(3) filed by Kachimannesea was not disposed of till 13th December 1947. It was only after that application was disposed of that the auction-purchaser could take any steps for getting the sale confirmed. That he did, as we have seen, on 5th January 1943 and the sale was confirmed on 21st February 1948 and be put his application for delivery of possession on 27th March 1948. There was therefore, as already stated above, no appreciable delay on his part.

4. In my judgment the omission to look into the record in the case is a gross irregularity in the exercise of jurisdiction and the learned Judges decision based upon a faulty reading or rather a non-reading
























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