Madras High Court
K. VEERASWAMI,RAGHAVAN
Gnanabaranam Pillai - Appellant
Versus
Rathinam Pillai - Respondent
Decided On : 08/12/1971
ORDER 21 RULE 90 - SETTING ASIDE COURT AUCTION SALE - ACT-SECTION REFERRED : ORDER 21 RULE 90, SECTION 47 CIVIL PROCEDURE CODE - SUMMARY : Court held that Order 21, Rule 90 of the Civil Procedure Code (CPC) is not applicable to irregularities or fraud in the settlement of the proclamation of sale. The court found that the irregularities in the settlement of the proclamation, such as wrong particulars and inadequate value given by the decree-holder, were not covered by Rule 90. The court held that Section 47 of the CPC, which allows for the setting aside of a sale for material irregularity or fraud, is applicable in such cases.
Fact of the Case:
The judgment-debtor filed an application to set aside a court auction sale at which the decree-holder was the purchaser. The judgment-debtor failed to furnish security as required by the proviso to Rule 90 of Order 21 of the Civil Procedure Code (CPC). The first two courts found that the properties were sold for an inadequate price as a result of wrong details set out in the sale proclamation regarding those properties.
Finding of the Court:
The court held that Order 21, Rule 90 of the CPC is not applicable to irregularities or fraud in the settlement of the proclamation of sale. The court found that the irregularities in the settlement of the proclamation, such as wrong particulars and inadequate value given by the decree-holder, were not covered by Rule 90. The court held that Section 47 of the CPC, which allows for the setting aside of a sale for material irregularity or fraud, is applicable in such cases.
Issues: Whether Order 21, Rule 90 of the CPC is applicable to irregularities or fraud in the settlement of the proclamation of sale.
Ratio Decidendi: The court held that Order 21, Rule 90 of the CPC is not applicable to irregularities or fraud in the settlement of the proclamation of sale. The court found that the irregularities in the settlement of the proclamation, such as wrong particulars and inadequate value given by the decree-holder, were not covered by Rule 90. The court held that Section 47 of the CPC, which allows for the setting aside of a sale for material irregularity or fraud, is applicable in such cases.
Final Decision: The court allowed the appeal and restored the decree and judgment of the first executing court.
K. VEERASWAMI, C.J.:- The judgment-debtor is the appellant before us, and the question is whether to the application he filed for setting aside of the court auction sale at which the decree-holder was the purchaser, Rule 90 of Order 21. Civil P.C. was applicable. It is common ground that the judgment-debtor failed to furnish security as required by the proviso to R.90. The first two courts have found-and Kailasam, J. did not differ-that the properties were sold for an inadequate price as a result of wrong details set out in the sale proclamation regarding those properties. There were material irregularities in giving description of the properties and there was as a result, as has been found, a substantial injury caused to the judgment-debtor. On an earlier occasion when the question of necessity to furnish security under Rule 90 came up for consideration in C.M.A. No.102 of 1956, Anantanarayanan, J. (as he then was) saw force in the contention and said that in view of the decision in Karuppanna Goundan v. Ponnuthayee, 1956-1 Mad LJ 190 : (AIR 1956 Mad 198) Section 47 would apply. But at the same time the learned Judge said that there may also be other matters which should be properly dealt with only in an application under Order 21, Rule 90, Civil P.C. On that view, though Section 47 was applicable, he set aside the dismissal of the proceedings and directed that the application itself for setting aside the sale should be disposed of afresh in the light of the observations contained in the judgment. But neither of the first two courts made an attempt to decide the question which Anantanarayanan, J. had expected. Kailasam, J. felt that although Sec. 47 is wide enough to cover, still the petition would fall as well under R.90 of O.21, Civil P.C On that view he allowed the appeal and dismissed the petition for setting aside the sale. On leave granted by him, the appeal under the Letters Patent comes up before us.
2. Although Section 47 is wide enough to cover this case, on account of the necessity to give effect to the rules under Order 21, they have to be read together and so read, in our opinion, Harindranath v. Bholanath Sahu, AIR 1937 All 407, took the correct view. As pointed out in that case, the legislature has by Order 21, Rules 89, 90 and 91 made provision for setting aside a sale in certain events and those rules are applicable to applications made by the judgment-debtor or by the decree-holder for setting aside a sale irrespective of the fact whether the decree-holder or a third person is the purchaser.
3. The next question is whether Rule 90 is applicable to this case. The irregularities pointed out by the first two courts are those in the settlement of proclamation. Wrong particulars and inadequate value had been given by the decree-holder himself in the light of which the proclamation was settled. Rule 90 permits an application to set aside a sale on the ground of irregularity or fraud. But be it noted that such irregularity or fraud must be in publishing proclamation of conducting the sale. Any irregularity or fraud in the settlement of proclamation which precedes its publication or conduct of the sale is not, in our opinion, attracted by Rule 90. This is the view taken by one of us in Ramalingam v. Sankara Iyer. AIR 1964 Mad 424 at p. 425. There it was held: "But, on a closer examination, I am inclined to the view that the words 'material irregularity or fraud in publishing or conducting it' cannot be extended to the material irregularity arising out of a breach of the requirements of R.66. Separate sets of rules are framed under Order XXI, one set relating to settlement of proclamation and the other to the manner of publication of a proclamation of sale. Nevertheless, Rule 90 speaks of material irregularity or fraud in publishing or conducting a sale. The rule, to my mind, will not, therefore, cover any irregularity in the settlement of proclamation".
4. In taking that view, the court followed Neelu Neithiar
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