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2002 Supreme(HP) 282

High Court Of Himachal Pradesh
M.R.VERMA
UNITED COMMERCIAL BANK - Appellant
Versus
MANI RAM - Respondent
Auction Purchaser O.M.P. No. 390 of 2002 in Ex. Petition No. 14 of 1993
Decided On : 10/23/2002

Advocates Appeared:
Mr. J.L. Kashyap, Advocate, for the D.H. Non:applicant; Mr. Ravinder Thakur, Advocate, for J.D. No. 1 Non:applicant and Mr. R.P. Singh, Advocate, for the Auction Purchaser.

The time limit for depositing the full amount of purchase money cannot be extended, and the court has discretion in the matter of forfeiture of deposit.

Headnote:

Code of Civil Procedure - Extension of Time for Deposit of Auction Money - Order 21 Rules 84/85 - Sections 148/151 - Rule 84, Rule 85, Rule 86 of Order 21 - The court held that the time limit of 15 days to deposit the full amount of purchase money cannot be extended under Sections 148 and 151 of the Code. The court also discussed the discretionary nature of forfeiture of deposit under Rule 86 and held that one half of the remaining amount should be forfeited and the remaining half refunded to the auction purchaser.

Fact of the Case:

The auction purchaser failed to deposit the remaining auction money within 15 days of the auction and filed an application for extension of time, citing reasons of being illiterate and the illness of his mother.

Finding of the Court:

The court held that the time limit for depositing the full amount of purchase money cannot be extended. It also ruled that one half of the remaining amount should be forfeited and the remaining half refunded to the auction purchaser.

Issues: Extension of time for depositing auction money, discretionary forfeiture of deposit

Ratio Decidendi: The court cannot extend the time limit for depositing the full amount of purchase money. The court has discretion in the matter of forfeiture of deposit.

Final Decision: The court dismissed the prayer to extend the time for depositing the full purchase money and ordered that one half of the remaining amount should be forfeited and the remaining half refunded to the auction purchaser.

JUDGMENT

M.R. Verma, J.—This application under Order 21 Rules 84/85 read with Sections 148/151 of the Code of Civil Procedure (hereafter referred to as the Code) has been filed by the applicant-auction purchaser (hereafter referred to as the auction purchaser) for extension of time to deposit the auction money and not to direct resale of the property already auctioned in his favour and not to forfeit the amount already deposited by him.

2. Brief facts leading to the presentation of this application are that in execution of a decree pursuant to the warrant of sale dated 22.6.2002, the landed property of JD No. 1 was put to auction in which the auction purchaser was the highest bidder in the sum of Rs. 1,25,000. Immediately after the auction, he deposited a sum of Rs. 33,000 of the auction money on the spot. However, he failed to deposit the remaining auction money within 15 days of the date of auction. Hence this application.

3. It has been averred in the application that the auction purchaser is an illiterate rustic villager and was not aware that the "total sale amount" was required to be deposited within 15 days of the auction nor he was so informed by anyone. Further, mother of the auction purchaser, who is about 78 years of age, fell ill and had to be removed to Chandigarh for treatment and this fact also resulted in delay in depositing the remaining auction amount within the prescribed time. In the aforesaid circumstances, the remaining auction amount has been deposited by the auction purchaser on 3.9.2002, therefore, the time to deposit such amount may be extended till 3.9.2002 and the property may not be ordered to be resold and deposited amount may not be forfeited.

4. I have finally heard the learned Counsel for the decree holder. However, learned Counsel for the auction purchaser was not present today but he has been heard in part on 30.9.2002 and 1.10.2002. Records also perused.

5. When the matter was partly heard on 30.9.2002 and 1.10.2002, the learned Counsel for the auction purchaser had contended that the lapse in not depositing the amount within the stipulated period was not intentional but because of the illness of the mother of the auction purchaser and want of knowledge on his part that such amount had to be deposited within 15 days of the auction, It was, therefore, urged that the time for depositing the amount may be extended till 3.9.2002 in exercise of the powers of this Court under Sections 148/151 of the Code and the amount tendered on 3.9.2002 may be accepted as valid discharge of the obligation of the auction purchaser and the property may not be resold and the l/4th of the amount deposited by him on the spot may not be forfeited.

6. On the other hand, learned Counsel for the DH and the learned Law Officer for the State, submitted that the provisions of Section 148 and/ or 151 of the Code cannot be invoked to extend the time and the necessary consequences as per Rule 86 of Order 21 of the Code must follow.

7. There is no dispute that the auction took place on 3.8.2002. Rule 84 of Order 21 of the Code requires the auction purchaser to pay immediately after he is so declared, a deposit of 25% of the amount of his purchase money to the officer or other person conducting the sale. Having deposited a sum of Rs. 33,000, the auction purchaser had complied with this requirement.

8. Rule 85 of Order 21 of the Code provides for depositing of the remaining purchase money and reads as follows: "Time for payment in full of purchase money The full amount of purchase money payable shall be paid by the purchaser into court before the Court closes on the fifteenth day from the sale of the property : Provided that, in calculating the amount to be so paid into Court, the purchaser shall have the advantage of any set off to which he may be entitled under Rule 72."

9. It is clear on a bare reading of the aforesaid provisions that the full amount of purchase money shall be paid by the auction purchaser to the Court on or before t









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