BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
THE HON'BLE MR. JUSTICE K. MURALI SHANKAR, J.
N. Sivasamy & Ors. - Petitioners
Versus
M/s.Karur Balaji Finance, Rep. by its Partner and General Power Agent, Paramasivam - Respondent
C.R.P.(MD) No. 2825 of 2023 and C.M.P.(MD) Nos. 14356 and 15543 of 2023
Decided On : 02-02-2024
CIVIL REVISION PETITION - EXECUTION PROCEEDINGS - C.P.C. - ORDER XXI RULE 90, ORDER XXI RULE 66 - The court discussed the provisions of Order XXI Rule 90 of the Code of Civil Procedure, which allows for setting aside a court auction sale on grounds of irregularity or fraud. The court emphasized the necessity of proper notice and valuation in execution proceedings, referencing Order XXI Rule 66, which mandates the court to ensure that the sale is conducted fairly and that the property is valued appropriately. The court found that the revision petitioners were aware of the auction and failed to provide evidence supporting their claims, leading to the dismissal of their petition.
Fact of the Case:
The revision petitioners, defendants in a mortgage recovery suit, challenged the auction sale of the mortgaged property, claiming lack of notice and improper valuation. They had previously remained ex-parte during execution proceedings and failed to comply with court orders regarding deposit amounts.
Finding of the Court:
The court found that the revision petitioners were aware of the auction proceedings and had not provided evidence to support their claims of improper notice or valuation. The court held that the auction was conducted fairly and dismissed the petition to set aside the sale.
Issues: Whether the court auction sale should be set aside due to lack of notice and improper valuation of the property.
Ratio Decidendi: The court reiterated that the burden of proof lies with the petitioners to demonstrate irregularities in the auction process. The absence of evidence to substantiate claims of improper notice or valuation led to the conclusion that the sale was valid.
Final Decision: The Civil Revision Petition was dismissed, affirming the validity of the auction sale and the lower court's order.
ORDER :
K. Murali Shankar, J.
[PRAYER : This Civil Revision Petition filed under Section 115 of C.P.C., against the fair and decreetal order made in E.A.No.2 of 2023 in E.P.No.156 of 2012 in O.S.No.14 of 2005 on the file of the Principal District Munsif Court, Karur, dated 10.04.2023.]
The Civil Revision Petition is directed against the order passed in E.A.No.2 of 2023 in E.P.No.156 of 2012 in O.S.No.14 of 2005, dated 10.04.2023 on the file of the Principal District Munsif Court, Karur, dismissing the petition filed under Order XXI Rule 90 of the Code of Civil Procedure.
2. The revision petitioners/Defendants 2 and 3 have filed an application in E.A.No.2 of 2023 under Order 21 Rule 90 of C.P.C, for setting aside the Court auction sale held on 04.01.2023.
3. The facts not in dispute are as follows :
(ii) The defendants 1 and 2 have filed a petition to condone the delay of 309 days in representing the petition for setting aside the ex-parte preliminary decree, dated 20.06.2006 in I.A.No.97 of 2007 and another application in I.A.No.26 of 2008 under Section 5 of Limitation Act to condone the delay of 248 days in filing the petition for setting aside the ex-parte final decree, dated 26.04.2007. Both applications, after enquiry, were ordered to be dismissed on 17.12.2007 and 17.06.2008 respectively.
(iii) The defendants 1 and 2 have preferred revisions in CRP(MD) No.1569 and 1618 of 2008, challenging the orders passed in I.A.No.97 of 2007 and I.A.No.26 of 2008 before this Court and a common order came to be passed on 29.09.2008, allowing the revisions with a condition to deposit of 50% of the suit claim on or before 31.10.2008 to the credit of the suit in O.S.No.14 of 2005 on the file of the District Court, Karur.
(iv) The third defendant, who is the second revision petitioner herein has filed similar petitions in I.A.No.27 and 59 of 2008 and the same were also dismissed by the District Court. The third defendant has preferred revisions in C.R.P(MD) Nos.127 and 128 of 2009 and this Court taking note of the earlier common order passed by the learned Judge on 29.09.2008, passed a conditional common order, directing the third defendant to deposit a sum of Rs.3,00,000/- within a period of six weeks from the date of receipt of copy of that order to the credit of the said suit. The defendants 1 to 3 including the revision petitioners have not complied with the directions of this Court and as per order of this Court, the orders passed by the trial Court in the above applications have become final.
(v) The respondent/decree holder has laid the first execution petition in E.P.No.44 of 2007 on the file of the District Court, Karur. The first revision petitioner's son has filed a claim petition under Order XXI Rule 58 of C.P.C., in E.A.No.45 of 2009 and the said petition was dismissed for default on 19.07.2010.
(vi) Meanwhile, notices in the execution petition were served on the revision petitioners and they have entered into appearance. After effecting paper publication, the first defendant firm was set ex-parte and thereafter, the revision petitioners have filed their counter to the execution petition. Subsequently, the revision petitioners remained ex-parte and hence, sale proclamation was ordered on 17.07.2014.
(vii) The first revision petitioner's son and father filed a petition in E.A.No.48 of 2014 to condone the delay in filing the petition for restoring the petition in E.A.No.45 of 2009, which was dismissed for default on 19.07.2010 and after enquiry, the said petition in E.A.No.48 of 2014 was dismissed. Thereafter, the first petitioner's son and father filed another claim petition under Order XXI Rule 58 of C.P.C., in E.A.No.65 of 2005, raising
The court emphasized the application of Order XXI Rule 90 of the CPC in cases of substantial irregularities causing injury to the judgment-debtor and cited legal precedents to support its decision.
The executing court must ensure only necessary property is sold to satisfy a decree, and dismissal of a claim under Order XXI Rule 58 does not bar a subsequent application under Order XXI Rule 90 for....
A Court executing a decree can only sell such portion of the property attached as may seem necessary to satisfy the decree and no sale can be allowed beyond the decretal amount.
An auction sale is invalid if mandatory notice requirements are not met, allowing a party to challenge the execution process under Section 47 of CPC.
The validity of auction sales in execution proceedings is upheld where notice requirements are satisfied, and third-party claims based on subsequent purchases without title are dismissed as legally u....
An execution court is obligated to sell only such portion of the property as is necessary to satisfy the decree, and selling the entire property without examining this aspect is illegal and without j....
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....
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