High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE S. PALANIVELU
K.J. Prakash Kumar & Others
Versus
Rasheeda Yasin & Another
C.R.P.(N.P.D.) No.2574 of 2007, C.M.P.No.1 of 2007 and V.C.M.P.No.2 & 3 of 2007
Decided on: 10-02-2009
Civil Revision Petition - Execution of Decree - Order 21 Rule 66, Order 21 Rule 90 CPC - The court set aside the sale of property due to material irregularity in the execution proceedings and violation of statutory provisions. The upset price fixed by the court was three times the value of the property, and the court failed to consider bringing only a portion of the property for sale to satisfy the decree. The court relied on legal principles established in previous judgments to support its decision.
Fact of the Case:
The petitioners, legal representatives of the judgment debtors, challenged the sale of property in execution proceedings, alleging material irregularity and violation of statutory provisions. The property was sold for a meagre sum despite being worth more than the upset price fixed by the court.
Finding of the Court:
The court found that the sale suffered from material irregularity and was invalid due to the failure to consider bringing only a portion of the property for sale to satisfy the decree. The court also noted that the judgment debtors had not raised objections at earlier stages of the proceedings.
Issues: The main issue was the validity of the sale in the execution proceedings, focusing on the upset price fixed by the court and the failure to consider selling only a portion of the property to satisfy the decree.
Ratio Decidendi: The court relied on legal principles established in previous judgments, emphasizing the need for the executing court to consider the value of the property and bring only a portion for sale if sufficient to satisfy the decree. The court also highlighted the statutory bar on raising objections after the proclamation of sale.
Final Decision: The court set aside the sale, directed refund of the auction purchaser's amount, and instructed the executing court to proceed with the execution proceedings in accordance with established legal principles.
Civil Revision Petition filed under Section 115 of the Civil Procedure Code, against the Judgment and Decree inC.M.A.No.17 of 2005 in confirming the decretal order dated in E.A.No.475 of 2003 in E.P.No.199 of 1998 in O.S.No.9158 of 1995 on the file of III Additional Judge, City Civil Court, Chennai.
The first petitioner in E.A.No.475 of 2003 is one Komala Ammal, wife of Jeganathan. Her son is K.J. Prakashkumar. Both of them were defendants in the original Suit. Jaganathan is no more. Pending enquiry in the execution petition, she died. 2nd and 3rd petitioners are her daughters. Wherever the words "first petitioner" occur, it would refer to Komala Ammal.
2. The following are the averments found in E.A.No.475 of 2003 filed by these petitions:-
2. (i) The first respondent obtained an exparte decree in O.S.No.9158 of 1995 for recovery of money against the husband of the first petitioner and these petitioners. Since the decree holder agreed to deduct not only payments made but also agreed to give interest on the amounts paid, the defendants did not conduct the suit. However, far from expectation, the decree holder/first respondent filed E.P.No.199 of 1998 for sale of the property viz., Door No.90, Ashtabujam Road, Choolai, Chennai-112, which even according to the Government market value is worth more than Rs.50,00,000/-. Unfortunately, the second petitioner was admitted to Stanley Hospital, Chennai and the first petitioner has no male member to help her in the execution process and it seems that in E.A.No.2017 of 2002 without notice to them, the upset price was reduced and on that basis the property for sale proclaimed was not sold on the spot, but in the Court premises. It is understood that the sale was knocked down in favour of the nominee of decree holder for a very low price of Rs.11,00,000/- on 12.09.2002.
2.(ii) Originally the upset price shown by the petitioners was not fixed. The reduction of upset price by order dated 17. 2002 without notice to these petitioners is illegal. Sale proceedings of an immovable property should be held only at the spot particularly in the Court premises which is not legally sustainable. There is also irregularity and illegality in the conduct of the sale and on that account also the sale is liable to be set aside. The entire proceedings of sale are totally against Order 21 Rule 66 of C.P.C. Hence, the sale dated 12.09.2002 in E.P.No.199 of 1998 has to be set aside.
3. In the Counter filed by the first respondent it is stated as follows:
3.(i) Execution petition was filed against the Judgment Debtor for attachment of immovable property for the E.P. Claim amount of Rs.4,98,1450. On 112. 1998 attachment was ordered and it was accordingly attached. On 11. 1999 sale proclamation was made and the date of sale was fixed for 05.01.2000. Though this respondent requested the Court to fix the upset price at Rs.10,50,000/-, the Court fixed the same at Rs.16,25,000/-. On 1. 2000 there was no bidders for the said upset price and thereafter this respondent filed E.A.No.271 of 2000 for fixing upset price at Rs.13,25,000/-, but the Court reduced the upset price to Rs.14,75,000/- and 30.01.2001 was fixed for sale. On that date also the property was not sold. Hence on E.A.No.504 of 2001, upset price was reduced to Rs.14,00,000/-.
3. (ii) Since slum dwellers area situates on the back side of the property, purchasers did not come forward to participate in the auction. In another Execution Application, because the property was not sold, the Court again reduced the upset price to Rs.12,00,000/-. Again there was no sale and as per the order in E.A.No.2017 of 2002, the upset price was reduced to Rs.11,00,000/-by the Court and the auction was held in the City Civil Court campus. The second respondent bid the auction for Rs.11,03,000/-on 12.09.2002, Sale Certificate was issued to him and he has filed petition for delivery in E.P.No.545 of 2003 which is pending. This respondent already filed petition to receive
7. Ambati Narasayya v. M. Subba Rao AIR 1990 SC 119 (Relied)
1. Takkaseela Pedda Subba Reddi v. Pujari Padmavathamma 1977 (3) SCC 337 = 1977 SC 1789
6. Desh Bandhu Gupta v. N.L. Anand & Rajinder Singh 1994 (1) SCC 131 (Relied)
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