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2018 Supreme(HP) 621

IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
SURESHWAR THAKUR, J.
M/s Naina Cold and Retreading Works, Darla – Appellant
Versus
H.P. Financial Corporation, Shimla and Another – Respondents
FAO No. 360 of 2015
Decided On : 28-09-2018

Advocates Appeared:
For the Appellant : Mr. Virender Singh Chauhan.
For the Respondents: Mr. Ashwani Sharma, Mr. Jeevan Kumar, Mr. O.P. Sharma, Mr. Naveen K. Dass.

Strict compliance with the mandatory provisions of Order 21 Rule 66 of the CPC is necessary to prevent substantial injury to the judgment debtor, and the sale through public auction should be set aside if such compliance is not met.

Headnote:

Order 21 Rule 90 - Setting aside auction sale - Order 21 Rule 66 - Proclamation of sales by public auction

Fact of the Case:

The judgment debtor sought relief for setting aside the sale through public auction of attached immovable properties for realization of decretal sums. The objections by certain objectors were dismissed, and the sale occurred with respondent No. 2 as the highest bidder. The judgment debtor appealed against the verdict.

Finding of the Court:

The court found that the sale through public auction should be set aside due to material irregularity or fraud in the auction proceedings, and the judgment debtor suffered substantial injury as a result.

Issues: The issues revolved around the compliance with the provisions of Order 21 Rule 90 and Order 21 Rule 66 of the CPC, and the substantial injury suffered by the judgment debtor due to the auction sale.

Ratio Decidendi: The court held that strict compliance with the mandatory provisions of Order 21 Rule 66 of the CPC is necessary to prevent substantial injury to the judgment debtor, and the sale through public auction should be set aside if such compliance is not met.

Final Decision: The appeal was allowed, the impugned order was quashed and set aside, and the sale of the attached immovable property through public auction was set aside. The matter was remanded to the executing Court for redrawal of the sale proceedings after considering the valuation report of the attached property.

JUDGMENT :

Sureshwar Thakur, J.

1. The instant appeal is directed against the impugned verdict recorded on 24.12.2011, by the learned District Judge, Solan, upon, an application cast under the provisions, of Order 21, Rule 90 of the Code of Civil Procedure, whereunder, the judgment debtor sought relief, for, setting aside the sale through public auction, vis-a-vis, its attached immovable properties, for, realization therefrom, the conclusive binding decretal sums of money.

2. During the pendency of the execution petition before the learned executing Court, objections stood reared therebefore, by certain objectors, namely, Geeta Devi, Neeta Devi, Smt. Reena, Miss Madhu, Miss Khema, Chetna, Girish, Smt. Nirmla, Sonu, Deepa, Ravi, wives, sons and daughters respectively of J.D. Nos. 1 and 2, against, the coercive realization, from, the immovable attached assets of the JDs, the decretal sums, given theirs therein holding the apt co-parcenary interest. However, the afore objections stood dismissed under orders recorded on 22.06.2011, orders, whereof, uncontrovertedly acquire conclusivity. Furthermore, thereunder, the learned executing court, proceeded to order for issuance of a proclamation, setting forth therein, the, schedule for putting to sale through public auction, the, attached immovable assets of the JDs. The sale through public auction was ordered, thereunder to occur, on 23.8.2011 and, the apt report in respect thereof, was, ordered to be purveyed, vis-a-vis, it, on 31.08.2011. In pursuance thereof, the sale through public auction hence occurred, on 23.8.2011. The highest bidder in the apt sale of the attached immovable properties of the JDs, was respondent No. 2 herein, and, the bid amount, as, accepted by the auction bidder, is, comprised in a sum of Rs. 1,05,000/-. The afore amount afforded, and, accepted by the person, hence holding the auction proceedings, is, contended to be grossly minimal, and, disproportionate, vis-a-vis, the genuine value, of, the attached immovable assets, of the JD, hence, the JD instituted an application, cast under the provisions of Order 21, Rule 90, hence for setting aside the auction sale conducted, on 23.8.2011. As aforestated, a dis-affirmative verdict was recorded thereon, by the learned executing Court and, being aggrieved therefrom, the JD has instituted the instant appeal before this Court.

3. The learned counsel appearing for the appellant, would succeed in his strivings, for ensuring the setting aside of the apt sale, of, the attached immovable properties of the JD, through, a public auction to respondent No. 2 herein, (i) only upon, material on record making clear and candid evincings, qua, the mandate enshrined in Order 21, Rule 90 of the CPC, anchored, upon, evident material irregularity or fraud erupting, vis-a-vis, the publishing of proclamation or in, the, conducting, of, the auction sale, rather making palpable surfacings, (ii) besides the appellant would succeed, upon, its establishing qua the ingredients borne in sub-section (2) of Order 21, Rule 90 of the CPC, encapsulating the factum qua proven substantial injury, hence ensuing, vis-a-vis, the JD, in sequel to any irregularity or fraud rather making apt surfacings, in the apt sale, through public auction, of the apt attached immovable property.

4. The learned counsel appearing for the appellant in making the afore strivings, has laid much emphasis, upon, the second proviso, vis-a-vis, Order 22, Rule 66 of the CPC and, provisions whereof stand extracted hereinafter:-

“66. Proclamation of sales by public auction:-

(1) Where any property is ordered to be sold by public auction in execution of a decree, the Court shall cause a proclamation of the intended sale to be made in the language of such Court.

(2) Such proclamation shall be drawn up after notice to the decree holder and the judgment-debtor and shall state the time and place of sale, and specify as fairly and accurately as possible:-

(a) the property to be sold (or, where a pa












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