IN THE HIGH COURT OF MADRAS
P.T. ASHA, J.
K.B. Hemchand - Appellant
Versus
K. J. Shankar and Ors. – Respondents
C.M.A. No.2701 of 2013 and C.M.P.No.13295 of 2017
Decided On : 10-01-2023
Limitation Act - Article 127 - Transfer of Property Act - Section 60 - State Financial Corporation Act - Section 32 - Code of Civil Procedure,1908 - Order 34 Rule 5 - auction sale conducted - Preliminary decree in the mortgage suit - Respondent/5th judgment debtor and other judgement debtors have sold property to a third party and therefore they had no subsisting interest in property - Held, Entire amount has been deposited before confirmation of sale as contemplated under provisions of Order 34 Rule 5 of CPC and decree in execution is a mortgage decree - Two has to be harmoniously interpreted to give benefit to the judgement debtor/mortgagor who has deposited the entire sale price - Civil Miscellaneous Appeal stands dismissed
JUDGMENT :
(Prayer : This Civil Miscellaneous Appeal is filed under Order 43 Rule 1(j) of the C.P.C, against the fair and decreetal order dated 07.06.2013 in E.A.No.63 of 2013 in E.P.No.5 of 2010 in O.S.No.32 of 2007 on the file of the District Court, Nilgris at Udhagamandalam.)
1. The short points for consideration in the above Appeal are as follows :-
ii) Whether the judgement debtor can invoke the remedy available to him under the provisions of Order 34 Rule 5 of the Code of Civil Procedure at the stage of appeal especially when the application before the Court is one filed under the provisions of Order 21 Rule 54 and 66 of the CPC.
2. The appellant is the auction purchaser before the Executing Court.
3. Since the questions involved are purely legal, it would be necessary to only touch upon the dates and events which have culminated in the filing of the above appeal.
Dates and Events:-
| S.No. | Dates | Events |
| 1. | 10.09.2007 | The suit OS.No.32 of 2007 filed by the plaintiff/8th respondent herein on the file of the District Court, Ooty for a preliminary mortgage decree to recover a sum of Rs.7,20,587.06/-. |
| 2. | 30.06.2008 | Sale executed by defendants and others in favor of one M.M.Venkatachalam. |
| 3. | 26.11.2008 | Preliminary decree in the mortgage suit is passed. |
| 4. | 15.09.2009 | Final decree is passed. |
| 5. | 04.02.2010 | Execution petition filed in E.P.No.5 of 2010 on the file of the the District Court, Nilgiri, Udhagamandalam |
| 6. | 11.12.2012 | Auction sale conducted and the successful bidder is the appellant herein. Auction purchaser bids for a sum of Rs.10,66,000/- and deposits a sum of Rs.2,67,000/-. |
| 7. | 20.12.2012 | E.A.No.63 of 2012 filed by the 1st respondent who is the 5th judgement debtor invoking the provisions of Order 21 Rule 89 of CPC to set aside the auction sale and to permit the deposit of the decree amount shown in the enclosed lodgement schedule. |
| 8. | 21.12.2012 | Entire auction amount deposited by the auction purchaser/appellant herein. |
| 9. | 07.06.2013 | The District Court allows the petition to set aside the auction sale against which the present appeal is filed. |
Submissions:-
3. Mr.B.Ravi, learned counsel appearing on behalf of the appellant would base his argument on the following:-
b) Under Order 21 of Rule 89, CPC the deposit was not only a prerequisite but also mandatory.
c) The 1st respondent/5th judgment debtor and the other judgement debtors have sold the property to a third party and therefore they had no subsisting interest in the property.
d) The provisions of Order 34 Rule 5 of the Code of Civil Procedure cannot be invoked without there being any application before the Court.
4. He would also rely upon the following judgements:-
ii) AIR 1968 SC 86- Hukumchand Vs. Bansilal and Others in support of his contention that the Court does not have the power to extend the time for making deposit beyond the period prescribed under law.
iii) A 5 bench judgement of the Hon’ble Supreme Court reported in (2001) 7 SCC 71 - Dadi Jagannadham Vs. Jammulu Ramulu and another in supp
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The court confirmed that applications for setting aside auction sales must be filed within 60 days as per statutory requirements, and reasons for delays must be strictly justified to be considered.
The court ruled that failure to deposit the mandatory 25% bid amount in a court auction renders the sale void, necessitating a resale, and coercive measures against the auction purchaser are not perm....
whether Section 35 of the Act is mandatory or directory the sale held in violation of the said provision is only illegal but not a nullity and therefore, it can be set aside only in the manner and th....
The final opportunity for the judgment debtor to save the property by setting aside the sale before confirmation under Order 21 Rule 89 CPC.
The main legal point established in the judgment is that an application under Order 21 Rule 89 CPC can be filed with the consent of the judgment debtor's related party and the required amount must be....
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