The judgment establishes the principle that a party's failure to assert its rights during earlier auctions and obtain prior permission to participate in execution proceedings may preclude it from claiming valid title to the property. It also affirms the protection of the rights of a bona fide purchaser for valuable consideration.

R.L. Anand, J. - This is a Civil Revision No. 4311 of 1998 filed by the Punjab Financial Corporation (hereinafter called "the Corporation") and at the first instance it was filed against M/s Baba Deep Singh Ice Factory and Cold Storage, Adampur Doaba, District Jalandhar (Punjab) as is evident from the first memo of parties but lateron the Corporation realised its mistake that it ought to have filed the revision against Shri Satish Kumar and Union Bank of India. Resultantly, the amended Memo of parties was also filed in this court on 13.1.2000. Thus, it will be treated as if the Corporation has filed the revision against Satish Kumar and Union Bank of India.

2. This revision has been directed against the order dated 26.11.1997 passed by the Court of Additional District Judge, Jalandhar who accepted the objections of Shri Satish Kumar and declared that the application filed by the decree-holder/Corporation for the delivery of the possession is not maintainable and the same was dismissed vide the impugned order. The learned Executing Court also held that he is not disposing of the objections of Union Bank of India in these proceedings because Union Bank of India has already filed a separate execution and, therefore, its objection that a valid title does not pass to Shri Satish Kumar, would be adjudicated by that Court. Moreover, Satish Kumar has also filed a separate suit for declaration regarding his ownership of the disputed property and the same is still pending in which both decree-holder-Corporation as well as the Bank would have the ample opportunity to substantiate their respective claims of the ownership.

3. Some facts can be noticed in the following manner. Punjab Financial Corporation (Decree-holder) obtained a money decree for a sum of Rs. 2,14,183.84 against the J.D. M/s Baba Deep Singh Ice Factory and Cold Storage, Adampur, District Jalandhar on 2.11.1976 from the Court of Additional District Judge, Jalandhar. The said firm filed an appeal before the Honble High Court and that appeal was dismissed on 23.4.1985. When the Corporation advanced the loan to M/s Baba Deep Singh Ice Factory and Cold Storage, Shri Satnam Singh who was the partner of the said firm mortgaged some property with the Corporation. It is not clear from the record when the loan was advanced to M/s Baba Deep Singh Ice Factory and when Shri Satnam Singh became liable in the capacity of a partner. Since the matter was decreed in favour of the Corporation on 2.11.1976 it has to be inferred that Shri Satnam Singh mortgaged his property in favour of the Corporation much prior to 1976.

4. Be that as it may, M/s Baba Deep Singh Ice Factory and Cold Storage and its partners did not discharge the obligation of the Corporation, the Corporation in pursuance of the decree dated 2.11.1976, which was affirmed on 23.4.1985 got the property of Shri Satnam Singh sold and the same was purchased by the Corporation itself for a sum of Rs. 40,000/- and the sale certificate was issued on 9.6.1992 and the sale was confirmed on 15.2.1990. These two dates i.e. 15.2.1990 and 9.6.1992 are very relevant for our purpose because we know that the moment the sale is confirmed and the sale certificate is issued, the title relates back to the date of confirmation of the sale. On the basis of the sale certificate dated 9.6.1992, the Corporation moved an application under Order 21 Rule 95 C.P.C. for the delivery of the possession of the property purchased by it.

5. Two-fold objections were filed in the execution proceedings; one filed by Shri Satish Kumar respondent and one filed by the Union Bank of India. It was inter-alia pleaded by Shri Satish Kumar that the Corporation cannot be delivered the possession of the disputed property because it earlier belonged to Satnam Singh partner of the firm and this property was sold in court- auction on 2.4.1987 under the orders of the court of Sub Judge 1st Class, Shri M.M. Aggarwal in execution of the decree obtained by the Punjab and S