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1974 Supreme(Mad) 453

High Court of Judicature at Madras
NATARAJAN
S.V. Ramalingam & Others
Versus
K.G. Rajagopalan & Another
C.M.P. No. 8186 of 1974 in A.O. No. 175 of 1972
Decided On :Decided on: 17-10-1974

Advocates Appeared:
For the Petitioner:K.N. Balasubramaniam, Advocate.
For the Respondent:T.R. Mani, Advocate.

The confirmation of a sale by the executing court does not extinguish the mortgagor's right of redemption if an appeal against the validity of the sale is pending.

Headnote:

MORTGAGE - REDEMPTION - RIGHT OF MORTGAGOR - SALE CONFIRMED BY EXECUTING COURT - APPEAL PENDING - RIGHT OF MORTGAGOR TO REDEEM - O. 34, R. 5, C.P.C.

Fact of the Case:

The petitioners, mortgagors, filed a petition under O. 34, R. 5, C.P.C., seeking to redeem the mortgage after the sale of the mortgaged property was confirmed by the executing court, but before the disposal of the appeal preferred against the validity of the sale.

Finding of the Court:

The court held that the petitioners were entitled to redeem the mortgage despite the confirmation of the sale by the executing court, as the appeal preferred against the validity of the sale rendered the confirmation of the sale fluidal and nebulous.

Issues: Whether the mortgagors are entitled to redeem the mortgage subsequent to the confirmation of sale by the executing Court, but before the disposal of the appeal preferred against the validity of the sale.

Ratio Decidendi: The court held that the confirmation of a sale subsequent to the dismissal of a petition under O. 21, R. 90 cannot, in reality, alter the situation when the mortgagor judgment-debtor has preferred within time an appeal against the dismissal of his petition under O. 21, R. 90. Though the confirmation of the sale does take the auction-purchaser a step further than before the confirmation of the sale, the confirmation, by itself, is, in one sense, inchoate. The confirmation gives the sale only viability, but does not render the sale an indefeasible one, till such time the appeal preferred by the mortgagor against the validity of the sale remains undisposed.

Final Decision: The court allowed the petition and permitted the petitioners to redeem the mortgage by payment of the balance of the decree amount and five per cent of the purchase money representing the solarium to be paid to the second respondent.

Judgment :-

1. The petitioners in E.A. No. 899 of 1967 (defendants 1, 6 and 7) in O.S. No. 63 of 1963 on the file of the Court of the Subordinate Judge of Madurai are the Appellants in the C.M.A. and the petitioners in the C.M.P. The Civil Miscellaneous Petition filed during the pendeney of the appeal has raised the controversy whether the mortgagors are entitled to redeem the mortgage subsequent to the confirmation of sale by the executing Court, but before the disposal of the appeal preferred against the validity of the sale.

2. The appeal and the petition have come to be filed in the following circumstances For the sake of convenience, the parties will be referred to as they are arrayed in the Civil Miscellaneous Petition. On foot of a mortgage dated 7th January 1961 for Rs. 7500/- executed by the first petitioner and his sons (petitioners 2 and 3 being two of the sons) in favour of the first respondent, the latter obtained a preliminary and a final decree in O.S. No. 63 of 1963 and the hypotheca was brought to sale and it was purchased by the second respondent. The abovesaid mortgage was the third mortgage of the suit property. The second respondent, though the brother of the first respondent, is himself the first mortgagee of the suit propery, the said mortgage being an othi dated 3rd, November 1960 for Rs. 63,000/-. There is also a second and a fourth mortgage of the suit property, but about which detailed mention is not called for in these proceedings. It may, however, be stated that the second mortgage dated 3rd November 1960 for Rs. 12,000/- is in favour of Madurai Cocoa Company, in which the second respondents son, K. Jayaraman is a partner. The fourth mortgage dated 29th November 1962 is in favour of another son the second respondent, by name K. Subramaniam. The preliminary decree passed in O.S. No. 63 of 1963 was for Rs. 11, 531-41 P. and it was passed on 31st October 1963. As already stated, the mortgagors did not pay the money decreed under the preliminary decree and hence the final decree was passed on 16th March 1964. Thereafter, the hypotheca was brought to sale and it appears the mortgagors filed as many as eighteen applications for adjournment of the sale, managing to get adjournments on each occasion by paying sundry amounts, totalling in all to Rs. 7550/., After the nineteenth application for adjournment was dismissed, the hypotheca was sold on 25th July 1966 for a sum of Rs. 46,000/- subject to the prior othi and mortgage, and, as already referred, the second respondent was the successful bidder at the auction.

3. Thereafter, three applications, viz, E.A. No. 895 of 1967, E.A. No. 899 of 1967 and E.A. No. 199 of 1969 were filed under O. 21, R. 90, C.P.C. for the sale being set aside. Various grounds such as the auction-purchaser being a benamidar for the decree-holder, the execution proceedings being taken without notice to the fifth defendant despite his having attained majority even on the date of the suit, the absence of proclamation for the sale held on 25th July 1966, gross under-valuation of the hypotheca in the sale proclamation etc. were set up to assail the sale. The petitions were resisted by the respondents. Ultimately, by a common order dated 26th October 1971, the learned Subordinate Judge of Madurai, after elaborately considering the contentions of the petitioners in the respective petitions, dismissed all of them holding that the sale had been properly held and was not vitiated by any defect or material irregularity. Thereafter, the sale in favour of the second respondent was confirmed and the sale certificate itself was engrossed on stamp papers. As the second respondent-auction-purchaser was already in possession as otherwise of the property, which is a house property in South Masi Street, Madurai, the question of the auction-purchaser taking possession of the property in pursuance of the sale did not arise.

4. Aggrieved by the dismissal of their petition, E.A. No. 899 of 1967, the petition































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