High Court of Judicature at Madras
K. MOHAN RAM, J.
S. Sivasubramanian
Versus
N. Chinnasamy & Another
C.R.P.(NPD) No.420 of 2009 & M.P. No.1 of 2009
Decided on : 08-09-2011
Limitation Act - Court Auction Sale - Article 134 of the Limitation Act - Order 21 Rule 95 of the Code of Civil Procedure - [Article 134 of the Limitation Act] - [Court Auction Sale] - [Order 21 Rule 95 of the Code of Civil Procedure] - The court discussed the interpretation of Article 134 of the Limitation Act and Order 21 Rule 95 of the Code of Civil Procedure in the context of court auction sale. The court emphasized that the period of limitation starts running from the date of confirmation of sale and not from the date when the sale certificate is issued. It was held that the sale becomes absolute on confirmation under Order 21 Rule 95 of the Code, effectively passing title, and does not attain finality only when the sale certificate is issued under Order 21 Rule 94. The court set aside the lower court's order and allowed the Civil Revision Petition, while also noting that the auction purchaser could file a regular suit for possession based on title within the prescribed period of limitation.
Fact of the Case:
The second respondent filed a suit for recovery of money against the petitioner, which was decreed. The petitioner, as the judgment debtor, contested the application for delivery of possession of the property purchased in a court auction sale, arguing that it was barred by time due to limitation prescribed under Article 134 of the Limitation Act.
Finding of the Court:
The court found that the period of limitation starts running from the date of confirmation of sale and not from the date when the sale certificate is issued. The court set aside the lower court's order and allowed the Civil Revision Petition, while also noting that the auction purchaser could file a regular suit for possession based on title within the prescribed period of limitation.
Issues: The key issue was whether the application for delivery of possession of the property purchased in a court auction sale was barred by time due to limitation prescribed under Article 134 of the Limitation Act.
Ratio Decidendi: The court held that the period of limitation starts running from the date of confirmation of sale and not from the date when the sale certificate is issued, emphasizing the interpretation of Article 134 of the Limitation Act and Order 21 Rule 95 of the Code of Civil Procedure in the context of court auction sale.
Final Decision: The court set aside the lower court's order and allowed the Civil Revision Petition, while also noting that the auction purchaser could file a regular suit for possession based on title within the prescribed period of limitation.
1. The second respondent in the above Civil Revision Petition filed a suit in O.S.No.109 of 1997 against the petitioner herein for recovery of money and the suit was decreed. As the decree was not satisfied by the Judgment debtor the petitioner herein the second respondent herein levied execution in E.P.No.27 of 2004 before the District Munsif Court, Dharapuram. In the Execution Proceedings, the property belonging to the judgment debtor was attached and brought for sale. In the court auction sale held on 28.10.2003, the first respondent was the successful bidder and the sale of the property was confirmed by order dated 21.09.2006. Thereafter, the court auction purchaser, namely, the first respondent herein, filed S.A.No.17 of 2008 on 06.02.2008 under order 21 Rule 95 of the Code of Civil Procedure for delivery of possession of the property purchased by him in the Court auction.
2. The petitioner/judgment debtor contested the application inter-alia contending that the limitation prescribed for the petition for delivery of property purchased in the Court auction sale under Article 134 of the Limitation Act is only one year from the date of confirmation of the court auction sale and when admittedly the application for delivery of possession has been filed beyond the said period of one year, the application is clearly barred by time and hence the same is liable to be dismissed. However, the Court below, though noted the contention of the judgment debtor, rejected the said contention, simply by observing “In the instant case, the sale has been made absolute on 21.09.2005. Hence, no question of delay arises. Hence, the petition is allowed”. Being aggrieved by the said order, the judgment debtor has filed the above Civil Revision Petition.
3. Heard learned counsel on either side.
4. Learned counsel for the petitioner submitted that the facts are not in dispute; admittedly, the court auction sale was confirmed on 21.09.2006 and the petition for delivery under order 21 Rule 95 of the Code of Civil Procedure came to be filed on 06.02.2008 and thus the petition was filed beyond the one year period of limitation prescribed under Section 134 of the Limitation Act, but this crucial aspect has been overlooked by the Court below in allowing the petition for delivery though the sale certificate was issued on 22.10.2007 the said fact has no relevance whatsoever for computing the period of limitation prescribed under Article 134 of the Limitation Act. In support of the aforesaid contentions, the learned counsel based reliance on a decision of Apex Court reported in (1996) 5 Supreme Court cases 48 (Pattam Khader Khan v. Pattam Sardar Khan). In the said decision, in Paragraphs 11 and 12, the Apex Court has laid down as follows:-
“11. Order 21 Rule 95 providing for the procedure for delivery of property in occupation of the judgment-debtor etc., requires an application being made by the purchaser for delivery of possession of property in respect of which a certificate has been granted under Rule 94 of order 21. There is nothing in Rule 95 to make it incumbent for the purchaser to file the certificate along with the application. On the sale becoming absolute, it is obligatory on the court though, to issue the certificate. That may, for any reason, get delayed. Whether there be failure to issue the certificate or delay of action on behalf of the court or the inaction of the purchaser in completing the legal requirements and formalities, are the factors which have no bearing on the limitation prescribed for the application under Article 134. The purchaser cannot seek to extend the limitation on the ground that the certificate has not been issued. It is true though that order for delivery of possession cannot be passed unless sale certificate stands issued. it is manifest therefore that the issue of a sale certificate is not “sine que non” of the application, since both these matters are with the same court. The starting point of limitation f
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