PUNJAB & HARYANA HIGH COURT
Mahesh Grover and Man Mohan Singh Gujral JJ.
Nachhattar Singh
Versus
Babu Khan
Execution Second Appeal No. 431 of 1970,
Decided On : AUGUST 2, 1971
AUCTION SALE - CONFIRMATION - DEPOSIT OF BALANCE OF PURCHASE MONEY - FAILURE TO DEPOSIT WITHIN 15 DAYS - EFFECT - SALE A NULLITY - COURT BOUND TO ORDER RE-SALE - RULES 85 AND 86, ORDER 21, CIVIL PROCEDURE CODE.
Fact of the Case:
The auction purchaser failed to deposit the balance of the purchase money within 15 days as required by Rule 85 of Order 21, Civil Procedure Code. The judgment-debtor objected to the confirmation of the sale on this ground. The executing Court and the appellate Court dismissed the objection and confirmed the sale.
Finding of the Court:
The Supreme Court held that the provisions of Rules 85 and 86 of Order 21, Civil Procedure Code are mandatory and upon non-compliance with these provisions there is no sale at all. The Court further held that the Court has no jurisdiction to extend the time for the payment of the balance of the purchase-money under Rule 85 and must order re-sale under Rule 86.
Issues: Whether the sale was a nullity due to the failure of the auction purchaser to deposit the balance of the purchase money within 15 days.
Ratio Decidendi: The Supreme Court held that the provisions of Rules 85 and 86 of Order 21, Civil Procedure Code are mandatory and upon non-compliance with these provisions there is no sale at all. The Court further held that the Court has no jurisdiction to extend the time for the payment of the balance of the purchase-money under Rule 85 and must order re-sale under Rule 86.
Final Decision: The Supreme Court allowed the appeal, set aside the orders of the Courts below confirming the sale, and dismissed the applications of the auction-purchaser and the decree-holder.
1. This second appeal filed by the judgment-debtor and two others arises out of an execution application in which the sale of property of the judgment-debtor was confirmed and the objection petition of Milkha Singh was dismissed.
2. The facts giving rise to this appeal are not in dispute and are as follows. Rukan Din (who has since died) and obtained a decree for the recovery of Rs.2,400/- against Darbara Singh and in execution of that decree he got land belonging to the judgment-debtor and measuring 32 kanals and 2 marlas attached. In a subsequent execution application the land was ordered to be auctioned and the sale to place on 19th June, 1966. Babu Khan respondent was the highest bidder and he immediately deposited Rs.900/- being the one-fourth of the sale-price. The balance of the money was, however, not deposited till 25th August 1966. While the property was under attachment Darbara Singh, the judgment-debtor executed a gift deed on 12th April 1965 in respect of his entire land measuring 99 bighas and 16 biswas in favour of Nachattar Singh and Milkha Singh. An objection petition under O. 21, R. 58, Civil P. C. was filed by Nachhattar Singh and Milkha Singh but this petition was dismissed by the executing Court and the suit brought by them under Order 21, Rule 63, was also dismissed. In view of these proceedings, the execution proceedings remained stayed and ultimately on 16th December 1968 the auction purchaser applied for the confirmation of the sale. Notice of this application was given to the parties concerned but as in the meantime Rukan din died his widow and daughters were brought on the record as his legal representatives. The legal representatives of the decree-holder have also applied for the confirmation of the sale and for the payment of money to them. Milkha Singh, one of the transferees from Darbara Singh, filed an objection petition and all the three applications were disposed of by the trial Court by order dated 30th July 1969. Against this order, besides Milkha Singh who had file the objection-petition, Nachhattar Singh and Darbara Singh also filed an appeal which was dismissed by the impugned order.
3. On behalf of the appellants the only argument raised was that as the auction-purchaser had failed to deposit the balance of the money within fifteen days as required by Rule 85 of Order 21, the sale was a nullity and the Court was bound to order the re-sale of the property. The learned Courts below following Shahzadi Begum V/s. Hakim Manohar Lal, AIR 1955 Hyd 110 and V. I. Subramanyan Nambudri V/s. V. K. V. Kammathi, AIR 1923 Mad 48 took the view that as the time was extended by the Court with the consent of the interested parties the sale was not rendered a nullity and that the rule can be waived by the persons who stand to benefit by the sale.
4. In order to understand the respective contentions of the parties it is necessary to make reference to Rr. 85 and 86 of Order 21, which are in the following terms:-
-
"85. The full amount of purchase-money payable shall be paid by the purchaser into Court before the Court closes on the fifteenth day from the sale of the property: Provided that, in calculating the amount to be so paid into Court, the purchaser shall have the advantage of any set-off to which he may be entitled under Rule 72.
86. In default of payment within the period mentioned in the last preceding rule, the deposit may, if the Court thinks fit, after defraying the expenses of the sale, be forfeited to the Government and the property shall be re-sold, and the defaulting purchaser shall for-feit all claim to the property or to any part of the sum for which it may subsequently be sold."
These rules came up for interpretation before the Supreme Court in Manilal Mohanlal Shah V/s. Sardar Sayed Ahmed Sayed Mahmad, AIR 1954 SC 349, and on a review of the entire case law, it was observed as under:-
-
"Having examined the language of the relevant rules and the judicial decisions bearing upon the
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.