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1924 Supreme(Mad) 219

IN THE HIGH COURT OF MARAS
Ratnasami Pillai
Versus
Sabapathy Pillai
Decided On : 27 March, 1924

The authority of a Receiver to enter into a completed contract and the Court's power to confirm a sale in Court sales.

Headnote:

Receiver's Powers - Lease of Property - Court's Confirmation of Sale

Fact of the Case:

The Receiver was directed by the Court to sell by public auction the lease of certain lands in a suit. The appellant was the highest bidder, but the Subordinate Judge refused to accept the bid and directed a re-sale.

Finding of the Court:

The Court held that the Receiver, as an Officer of the Court, only has delegated powers from the Court and cannot enter into a completed contract without the Court's express grant of such power. The absence of a statement in the conditions of sale that the sale was subject to the Court's confirmation did not imply abandonment of the Court's power to confirm the sale.

Issues: Whether the Receiver had the authority to enter into a completed contract without the Court's express grant of such power, and whether the Court had abandoned its power to confirm the sale.

Ratio Decidendi: In Court sales, it is the acceptance by the Court that constitutes the contract. The person asserting that the Court Officer had the power to bind the Court by accepting a bid must prove it.

Final Decision: The appeal was dismissed, and the Court's order directing a re-sale was held to be within its powers.

JUDGMENT

1. This is an appeal against the order of the Subordinate Judge of Mayavaram refusing to accept the bid of Rathnasami Pillai, the appellant, for taking on lease certain property, the subject-matter of a suit before the Court, and directing a re-sale. What happened was, the Receiver, who had been appointed in the suit, was directed by the Court to sell by public auction the lease of certain lands in suit for a year. The conditions of sale were printed and the printed leaflets were circulated. The Receiver held an auction in which the appellant before us, Rathnasami Pillai, was the highest bidder. When the matter was taken to the Sub-Judge for confirmation, he refused to accept Rathnasami Pillais bid and directed a re-sale. It is against that order that this appeal is filed.

2 The appellant contends that a completed contract had been entered into with him by the Receiver and that the Court should, therefore, have directed a lease to be executed in his favour in the terms of his bid. At the re-sale ordered, the second respondent took the lease at a higher rate. A preliminary objection has been raised to this appeal that no appeal lies. The appeal has been filed under Order XLIII, Rule 1, Clause (s) as against an order under Order XL, Rule I, Civil Procedure Code. We need not, however, decide this question, as we think that, on the merits, the appellant has no ease. The Receiver is an Officer of Court and whatever powers he exercises are delegated powers of the Court which the Court expressly gives him. He has no nowers except what the Court grants him. Unless the appellant can show us that in this case the Court has delegated its power of entering into a completed contract with third parties to the Receiver, any action taken by the Receiver cannot be binding upon the Court or upon the properties. All that the appellant is able to show us is that he made the highest bid and that the published conditions of sale did not expressly state that the Hale was subject to the confirmation of the Court. The absence of such a statement cannot, in our opinion, be treated as implying that the Court had abandoned its power of confirming the sale before it would take effect. No doubt the ordinary rule regarding private auction is, that where an auction is held without any reservation, there is an implied condition that the highest bid will be accepted; but no authority has been cited to show that that rule applies to a sale by a Court Officer under the directions of Court. In Court sales, it is acceptance by the Court that constitutes the contract. See Surendro Keshub Roy v. Doorgasoondery Dassee (1888) 15 Cal. 253. The person who asserts that the Court Officer had power to bind the Court by his acceptance of a bid must prove it. The appellant has not been able to refer us to any evidence to show that such a power had been granted by the Court in this case. We must, therefore, hold that the Court bad ample authority as no contract had been concluded with him and the Courts order directing a re-sale was within its powers. The appeal fails and is dismissed with costs (costs one set).

3. C.R.P. No. 943 of 1923 is dismissed with costs.

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