IN THE HIGH COURT OF KERALA
Thomas P. Joseph, J.
K.N. Somsundaram, Proprietor-M/s. Vysag - Petitioner
Versus
Indian Overseas Bank, Udyogamandal & Ors. - Respondents
WP(C) No. 9315 of 2010 (O)
Decided On : 16-06-2010
Rule 66 - Sale of Property - Violation of Proclamation Schedule
Fact of the Case:
The petitioner, a judgment debtor, challenged the sale of his property in execution proceedings, claiming that the entire property was sold without mentioning the estimated value provided by him, which violated Rule 66 of Order 21 of the Code of Civil Procedure.
Finding of the Court:
The court set aside the sale of the property and directed the executing court to include the value of the property given by the petitioner in the proclamation schedule before the property is proclaimed for sale. The petitioner was also permitted to deposit a partial amount for payment to the respondent, and the request for payment of the balance amount in instalments was left to the executing court's decision.
Issues: Violation of Rule 66 of Order 21 of the Code of Civil Procedure, setting aside the sale of the property, and the petitioner's request for payment of the balance amount in instalments.
Ratio Decidendi: The second proviso to Rule 66 of Order 21 of the Code requires the proclamation of sale to include the estimate of the value of the property given by either or both of the parties. As the petitioner's estimated value was not included, the court set aside the sale for non-compliance with this mandatory provision.
Final Decision: The writ petition was allowed, and the sale of the property was set aside. The executing court was directed to incorporate the value of the property given by the petitioner in the proclamation schedule, and the petitioner was permitted to deposit a partial amount for payment to the respondent. The request for payment of the balance amount in instalments was left to the executing court's decision.
Thomas P. Joseph, J.
Respondent Nos. is served but there is no response.
2. Petitioner is one of the judgment debtors in E.P. No.354 of 2005 in O.S. No. 30 of 1998 of the court of learned Principal Sub Judge, Ernakulam. For the amount due from petitioner and his proprietary concern respondent filed E.P. No. 354 of 2005. Amount shown in the E.P. is Rs. 2,10,757/- with future interest and costs. According to the petitioner he has paid Rs. 80,000/-. Property of petitioner was brought up for sale. Petitioner filed valuation statement valuing the property at Rs. 25,00,000/-. As per Ext.P2, order executing court ordered that "property identified. Conduct sale on 27.02.2010". Exhibit P3 is the sale notice as per which upset price fixed is Rs. 3,00,000/- and amount payable to the respondent is stated as Rs. 2,79,826.76. Grievance of the petitioner is that without mentioning the estimated value of property given by petitioner the entire property (1.94 Ares) has been sold which violated 21, Rule 66 of the Code of Civil Procedure (for short, "the Code"). In violation of the said provision property was sold and purchased by respondent No.2 which according to the learned counsel is a nullity. Learned counsel states that petitioner is prepared to pay amount due under the decree. He requests that sale may be set aside and petitioner may be permitted to pay the amount in instalments. Learned counsel for respondent No.1 would contend that there was an order for sale of one cent of property referred to in the proclamation schedule which was challenged by respondent No.1 in W.P(C) No. 6121 of 2008. This Court set aside the order and directed to proclaim and sell the entire property for the amount due under the decree.
3. So far as challenge to Exts.P2 and P3 and consequent sale on the ground that entire property need not have been sold is concerned, I am afraid that contention cannot stand in the light of statement made by leaned counsel for respondent No.1 that in W.P.(C) No.6121 of 2008 this Court had permitted sale of the entire property.
4. Then the question is whether Rule 66 of Order 21 of the code has been violated. As per second proviso to Rule 66 though it is not necessary for the court to enter in the proclamation of sale its own estimate of the value of the property, proclamation shall include the estimate, if any given by either or both of the parties. It is not disputed that petitioner had filed valuation statement suggesting value of the property as Rs. 25,00,000/-. In that situation the second proviso to Rule 66 referred to above required to mentionvalue of property estimated by the petitioner also in the proclamation schedule and notice. In so far as that mandatory provision is not complied Exts.P2 and P3 cannot be sustained and the consequent sale of the property is vitiated. As such Exts.P2 and P3 and the consequent sale are liable to be set aside for the said reason and I do so.
5. Learned counsel has undertaken to deposit Rs. 75,000/- (Rupees Seventy five thousand only) in the executing court for payment to respondent No.1. On the question whether petitioner is entitled to pay the balance amount due in instalments I leave that matter to the executing court to decide after hearing petitioner and respondent No.1. In view of the order I am proposing to pass respondent No.2 is entitled to get whatever amount due to him as provided under the Rules and amount if any payable by petitioner shall be deposited by him in the executing court as that court directs.
6. Resultantly, Writ Petition is allowed in the following lines:
(i) Exhibits P2 and P3 and the consequent sale of property are set aside.
(ii) Executing court is directed to incorporate value of property given by petitioner also in the proclamation schedule before the property is proclaimed for sale.
(iii) Petitioner shall deposit in the executing court Rs. 75,000/- (Rupees Seventy five thousand only) for payment to respondent No.1 within three weeks from this day.
(iv) Petiti
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