Allahbad High Court
S.J.HYDER
Abdul Ghani - Appellant
Versus
Mahendra Kumar - Respondent
Decided On : 09/18/1978
AUCTION SALE - EXECUTION - RESTITUTION - DISTINCTION BETWEEN DECREE-HOLDER PURCHASER AND BONA FIDE PURCHASER - AMENDMENT OF S.47 C.P.C. BY ACT OF 1956 - EFFECT - BURDEN OF PROOF ON AUCTION PURCHASER TO PROVE BONA FIDES.
Fact of the Case:
The decree-holder obtained a money decree against the judgement debtor. The judgement debtor applied to set aside the decree under O.9 R.13 of the Civil P.C. While the application was pending, the decree-holder applied for execution of the decree by attachment and sale of the judgement debtor's land. The land was attached and purchased by the decree-holder's son. The ex parte decree was later set aside, and the judgement debtor applied for restitution under S.144 read with S.47 of the Civil P.C. The execution court allowed the application and set aside the sale. The auction-purchaser appealed, and the lower appellate court allowed the appeal and set aside the order of the execution court.
Finding of the Court:
The court held that the distinction between a decree-holder purchaser and a bona fide purchaser still exists after the amendment of S.47 C.P.C. by the Act of 1956. The court also held that the burden of proving bona fides lies on the auction purchaser seeking to protect the sale concluded in his favor.
Issues: 1. Whether the amendment of S.47 C.P.C. by the Act of 1956 has obliterated the distinction between a decree-holder purchaser and a bona fide purchaser? 2. Whether the auction purchaser was a bona fide purchaser for value?
Ratio Decidendi: 1. The court held that the amendment of S.47 C.P.C. by the Act of 1956 has not obliterated the distinction between a decree-holder purchaser and a bona fide purchaser. The court reasoned that S.144 C.P.C. confers a substantive right on the judgement-debtor to obtain restitution in case the decree is reversed, modified or set aside, while S.47 of the Civil P.C. is procedural in nature and merely provides that all questions arising between the parties to the suit shall be determined by the court executing the decree. 2. The court held that the auction purchaser did not discharge the burden of proving that he was a bona fide purchaser for value. The court noted that the auction purchaser was the son of the decree-holder and that the execution court had found that the money invested in the sale came from the decree-holder.
Final Decision: The court allowed the appeal, set aside the decree of the lower appellate court, and restored the decree of the execution court.
2. After the ex parte decree had been set aside the judgement-debtor applied for restitution under S.144 read with S.47 of the Civil P.C. According to the judgement-debtor, the property had been purchased by the decree-holder himself in the name of his son. He further pleaded that the auction-purchaser was not a bona fide purchaser for value. That auction-purchaser repelled the said contention. The execution court allowed the objection and set aside the sale in favour of the auction purchaser and granted the restitution claimed by the judgement debtor. The trial court inter alia held as follows :-
"Had he (i.e. the auction-purchaser) paid the amount from the account of his shop, he would have definitely entered it in his shop, account and his unexplained testimony shows that this amount was paid by some other person and according to the allegations of the applicant, it was paid by the O.P. No. 1 (i.e. the decree-holder) and this auction was purchased by him (i.e., the decree-holder) in the name of his son O.P. No. 2 (the auction-purchaser)."
(The words within brackets have been supplied by me.)
3. Against the order of the execution court, the auction-purchaser preferred an appeal. It was allowed by the first court of appeal. It was held by the court of appeal that the auction-purchaser not himself being the decree-holder, the purchase at a court auction made by him could not have been assailed by the judgement-debtor. It accordingly allowed the appeal and set aside the order of the execution court. The judgement-debtor has now come in second appeal to this court.
4. On behalf of the appellant, two points have been pressed. Firstly, it has been contended that the lower appellate court has completely overlooked the addition of the Explanation to S.47 of the Civil P.C. by the Amending Act of 1956. In other words, his contention was that by addition of the said Explanation, the distinction which was previously made by the courts between a purchaser who was himself a decree -holder and a stranger auction-purchaser has been completely obliterated and the said decisions are no longer good law. It was next contended that it was not proved that the auction-purchaser was a bona fide purchaser for value. It was submitted that the execution court had recorded a categorical finding that the actual purchaser was the decree-holder himself who had supplied the money and that the lower appellate court has erred in reversing the order of the execution court without setting aside this finding. I shall first proceed to consider the law before the amending Act of 1956 and shall then examine the validity of the submission of the learned counsel that the said law no longer holds good after the amendment.
5. The earliest case about which reference has been made in this connection is Zain-ul-Abdin Khan v. Muhammad Asghar Ali Khan (1888) ILR
10 All 166. In the said case, their Lordships of the Privy Council observed as follows :-
"It appears to their Lordships that there is a great distinction between the decreeholders who came in and purch
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