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IN THE HIGH COURT OF JUDICATURE AT MADRAS
N.SESHASAYEE
Samy Property Developers – Appellant
Versus
VSP Property Promoters – Respondent
JUDGMENT :
N. SESHASAYEE, J.
1. These two appeals are preferred challenging an order of the Execution Court allowing the claim of respondents 1 to 5 under Order XXI Rule 58 CPC in E.A. No.52 of 2015. Of them, C.M.A. No.460 of 2023 was filed by the purchaser in an auction sale held in E.P. No.168 of 2013, which the appellant/workman in C.M.A.No. 944 of 2023 had laid for executing an award passed under Sec. 33C (2) of the Industrial Disputes Act, 1947.
1.2 Broadly the issue is that, in the said E.P. Respondents 1 to 5 have taken out an application in E.A.52 of 2015, staking a claim to about 5.43 acres in SyNo:298 of Kuniyamuthur village, and it came to be allowed by the Execution Court. This block of 5.43 acres was part of a larger extent of 37.0 acres, spread over multiple survey numbers, and it was brought to court-auction-sale and was purchased by the appellant in CMA 460 of 2023. The sale in favour of the auction-purchaser is yet to be confirmed by the Execution Court in terms of Order XXI Rule 92 CPC. The decision of the Execution Court in allowing the claim of respondents 1 to 5 over 5.43 acres implies that the Execution Court may not now confirm the auction-sale as pertaining to
The execution court must recognize claims to property that does not belong to the judgment debtor, even post-auction sale, unless the sale is confirmed.
A decree established in a suit under Order XXI does not automatically nullify an execution sale where necessary parties are not included, reaffirming the principles of execution law.
A transferee from a judgment debtor during pending execution proceedings has no right to enforce claims against a valid auction purchaser, as the transfer is void under sections of the CPC.
The main legal point established in the judgment is the interpretation of the provisions of Order 21 Rule 58 and Order 21 Rule 97 of CPC, emphasizing the maintainability of a claim petition after com....
(1) Attachment and auction of property – No application to set aside a sale on grounds of irregularity or fraud can be entertained on any ground which applicant would have taken on or before date on ....
Order 21 Rule 58(1) of CPC reads adjudication of claims to, or objections to attachment of, property.
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