IN THE HIGH COURT OF KERALA AT ERNAKULAM
SATHISH NINAN, P. V. BALAKRISHNAN, JJ.
Indu, d/o. Lathika Kumari – Appellant
Versus
Finance & Investment Corporation – Respondent
EX.FA No. 21 of 2005
Decided on : 04-12-2024
(A) Code of Civil Procedure, 1908 - Order XXI Rule 99 and Section 47 - Execution of decree - Application to set aside court sale and for re-delivery dismissed - Applicant claimed rights under judgment debtor but failed to establish independent rights - Court held that the application under Rule 99 is not maintainable as the applicant is a transferee of the judgment debtor and cannot raise objections based on the judgment debtor's rights. (Paras 22, 24, 47)
(B) Execution Proceedings - The court emphasized that the execution proceedings must comply with the decree's directions, but irregularities do not render the sale void if jurisdiction is established. (Paras 38, 42)
Facts of the case:
The applicant sought to set aside a court sale and for re-delivery of property, claiming illegal dispossession during execution of a decree. The execution court dismissed the application, leading to the appeal.
Findings of Court:
The court found that the applicant's claims were based on rights under the judgment debtor, which were not independent, and thus the application under Rule 99 was not maintainable. The execution proceedings were deemed valid despite alleged irregularities.
Issues: The main issues included the maintainability of the application under Rule 99 and whether the execution proceedings violated the decree.
Ratio Decidendi: The court ruled that a transferee of a judgment debtor cannot raise objections based on the judgment debtor's rights under Rule 99, and irregularities in execution do not invalidate the sale if jurisdiction is established.
Result: Appeal dismissed.
JUDGMENT :
Sathish Ninan, J.
The application filed seeking to set aside the court sale held on 18.08.1999 and for re-delivery was dismissed by the execution court. The applicant is in appeal.
2. The application scheduled property is the eastern 16 cents out of a larger extent of 32 cents in Sy. No.2746 of Vanchiyoor village. The 32 cents, described as having an extent of 34 cents, belonged to the defendants in OS 288/1974 of the Additional Sub Court, Kottayam. The suit was one for money. Pending the suit, they sold the property to a third party on 06.03.1986. The assignee is arrayed as respondent No.31 in the application. The assignee conveyed the property in favour of the applicant under Sale Deeds 1019/1998, 1022/1998 and 1024/1998. From out of the total extent of 32 cents, the western 16 cents was purchased by one Janardhanan Pillai. Based on the sale, the applicant effected mutation and was in absolute possession and enjoyment of the property.
3. While so, on 14.07.2004 the applicant was illegally dispossessed in execution of the decree in O.S. 288/1974. The dispossession was on the strength of a sale held by the Court on 18.08.1999 in respect of the entire 32 cents of property. The decree holder was the auction purchaser. It is thereupon that the present application was filed.
4. The suit, O.S. 288/1974, was decreed on 23.03.1978, on confession. Since the immovable properties sought to be proceeded against in execution were situated at Thiruvananthapuram, the decree holder got the decree transmitted to Thiruvananthapuram. Thereafter the decree holder filed E.P. 28/1982 before the Additional Sub Court, Thiruvananthapuram seeking execution of the decree by sale of the immovable properties.
5. In execution of the decree, on 18.08.1999, the 34 cents of property described supra was auctioned and was bid by the decree holder. The sale was confirmed on 15.12.1999. The decree holder took delivery of the property on 14.07.2004.
6. Challenging the sale and seeking re-delivery, the appellant herein filed EA 937/2004. The purchaser of the western 16 cents from out of 32 cents viz., Janardhanan Pillai referred to earlier, filed EA 946/2004 seeking re-delivery of the said property. Both the petitions were dismissed by the execution court. The present Execution First Appeal is filed challenging the dismissal of EA 937/2004. Challenging the dismissal of EA 946/2004, Janardhanan Pillai had filed Execution First Appeal No.20/2005. The appeals were being jointly considered. Pending the appeals, on 28.05.2018, this Court had passed an interim order of injunction restraining alienation of the properties. In the meanwhile, Janardhanan Pillai died. Consequent to the non-impleadment of his legal representatives, on 21.08.2018 both the appeals were dismissed as abated.
7. Since Janardhanan Pillai was not a party in the present appeal, the appellants sought review of the order dismissing the present appeal. This Court as per order dated 24.01.2023 allowed the review petition and restored the appeal. In the meanwhile, the decree holder alienated the property in favour of the additional respondent No.31, who was subsequently impleaded.
8. The grounds of challenge in the application are:-
(ii) There was no valid attachment preceding the sale.
(iii) The sale proclamation was settled without production of encumbrance certificate.
(iv) The auction was conducted for a grossly inadequate price.
(v) Proclamation was not effected before conducting the adjourned sale, thus violating Order XXI Rule 69(2) of the Code of Civil Procedure(CPC).
9. The execution court as per the impugned order rejected the contentions.
10. We have heard Sri.G.Sreekumar (Chelur), learned counsel for the appellant, and Sri.V.G.Arun for the supporting respondent and Sri.T.Krishnannunni, the learned Senior Counsel and Sri.P.Viswanathan, learned Senior Counsel and Adv. Sudhish Kumar for the contesting respondents.
11. Apart from the grounds rai
A transferee of a judgment debtor cannot invoke Order XXI Rule 99 for re-delivery, as their rights must be independent of the judgment debtor's rights.
whether Section 35 of the Act is mandatory or directory the sale held in violation of the said provision is only illegal but not a nullity and therefore, it can be set aside only in the manner and th....
The execution sale was declared null and void due to the execution court's lack of jurisdiction from the absence of a required certificate from the Registrar, which is mandatory for the award to be e....
A charged property can be executed for recovery under a decree without instituting a separate suit, and rateable distribution is only available to pending applications from decree-holders at the time....
The court affirmed that disputes regarding execution of decrees must be resolved by the executing court, and allegations of fraud must be substantiated with evidence.
An auction sale is invalid if mandatory notice requirements are not met, allowing a party to challenge the execution process under Section 47 of CPC.
The court emphasized the application of Order XXI Rule 90 of the CPC in cases of substantial irregularities causing injury to the judgment-debtor and cited legal precedents to support its decision.
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