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1971 Supreme(Ker) 1

Kerala High Court
SADASIVAN
Pailee - Appellant
Versus
Krishna Panicker - Respondent
Decided On : 01/01/1971

Advocates:
P.C. Balakrishna Menon, for Petitioner; V.K.K. Menon, for Opposite Party.

Lack of knowledge of sale due to fraud triggers start of limitation; absence of specific averments of fraud is not material, and the petition should be considered on its merits.

Headnote:

O.21, R. 90 - Setting aside sale - Fraud - Limitation - S. C. S. 997/57 - Garden land and paddy land - O.21, R. 58, O.21, R. 90 - Fraud preventing filing of petition - Limitation Regulation - Section 18 - Mathen Simon v. Ouseph Looka (AIR 1964 Ker 88) - Yeshwant Deorao v. Walchand Ramchand (AIR 1951 SC 16)

Fact of the Case:

The defendant sought to set aside the sale of garden and paddy land, alleging fraud by the decree-holder preventing timely filing of the petition. The lower courts dismissed the petition on grounds of maintainability and limitation.

Finding of the Court:

The appellate court erred in dismissing the petition on unsustainable grounds. The judgment-debtor's lack of knowledge of the sale due to fraud continues until he becomes aware of it, triggering the start of limitation. Absence of specific averments of fraud is not material, and the petition should be considered on its merits.

Issues: Maintainability of petition under O.21, R. 90, and the applicability of limitation in cases of fraud preventing timely filing of the petition.

Ratio Decidendi: The judgment-debtor's lack of knowledge of the sale due to fraud triggers the start of limitation. Absence of specific averments of fraud is not material, and the petition should be considered on its merits.

Final Decision: The judgment and order of the lower courts were set aside, and the case was remanded to the learned Munsiff for consideration of the petition under O.21, R.90 on its merits and disposal according to law. The revision petition was allowed, and costs will abide the final result. Case remanded.

ORDER :

The defendant in S. C. S. 997/57 on the file of the Munsiff of Kozhikode is the revision petitioner. The decree obtained against him was put in execution and the schedule items 2 acres and 94 cents of garden land with building and 1 acre and 14 cents of paddy land were sold to the 3rd respondent for Rs. 26/- on 3-7-67. The defendant is the assignee from the debtor and the assignment was taken at a time when the E. P. was pending. Proceedings in execution, thereafter were not known to the petitioner and he came to know of the same only on 5-7-63 when the Amin went over to the property for effecting delivery. He accordingly filed a petition under O. 21. R. 90 C. P. C. for setting aside the sale. Along with that petition a claim petition under O.21, R.58 was also filed : but that was not pressed and it was accordingly dismissed.

2. The learned Munsiff took the view that the petition for setting aside the sale is not maintainable and the proper course open to the petitioner was to file a claim petition under O.21, R.58. The Court further held that it was unwise on the part of the petitioner to have not pressed the petition under O. 21, R. 58. To quote the learned Munsiff :

"The proper remedy for the petitioner was to file an application under O.21, R.58 which he really filed as E. A. 1036/63. That petition was filed on 10-7-63 after the date of sale and it was dismissed on 31-10-63 because it was not pressed by the petitioner. This petition was filed on 19-7-63 alleging irregularities and fraud. The petitioner is not entitled to file an application under R.90 disregarding Rule 58 of Order 21."

The learned Munsiff is clearly in error in having held that the proper course for the petitioner was to file a claim petition under O.21, R. 58. No claim can be sustained after the sale. A petition under O.21, R.58 can lie at the time of attachment; when once a sale has taken place the remedy open to the debtor is to file a petition under O.21, R.90 to set aside the sale. The learned Munsiff in the above view did not go into the merits of the petition. The petition was accordingly dismissed. On appeal the learned District Judge of Kozhikode held that a petition under O. 21, R. 90 is maintainable : but he held against the petitioner saving that the petition is time barred. The ground taken by the petitioner for vacating the sale was that by the fraud of the decree-holder he was prevented from filing his petition earlier. The learned Judge has found fault with the petitioner for not having made specific averment to the effect that by virtue of the fraud of the decree-holder or auction-purchaser the petitioner was prevented from filing the petition under O. 21, R. 90. The learned Judge would observe :

"It is argued by the appellant's learned counsel that Section 18 of the Limitation Regulation governing case of fraud will apply to this case on the averments contained in the petition and applying Section 18 of the Limitation Regulation, the period of time to file the petition is automatically extended and he need file the petition only on knowledge of the fraud. Reliance under Section 18 of the Limitation Regulation is not placed in the petition for extending the period of limitation. Neither is there a specific averment in the petition that the petitioner was actively prevented by the fraud of the decree-holder in not filing the petition within time ........................ For reasons above stated, in the absence of specific averment in the petition that the petitioner was actively prevented by the fraud of the decree-holder in preferring a petition under Order 21, Rule 90 within time, this petition alleging only general fraud in the matter of conduct of sale will not assist the petitioner in inferring fraud so as to attract Sec. 18 of the Limitation Regulation and hence the present petition is patently barred by limitation even on the averments in the petition and as such this appeal is dismissed."

3. The learned appellate Judge. I am afra






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