SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1969 Supreme(All) 58

Allahbad High Court
W.BROOME,G.C.MATHUR
Lala Ram - Appellant
Versus
Bhajani - Respondent
Decided On : 05/09/1969

Advocates:
B.L. Jaiswal, for Applicants; Radha Krishna Rakhal Das, for Opposite Party.

Headnote:

SALE - EXECUTION - DATE OF SALE - WHETHER DATE OF ACCEPTANCE OF BID BY COURT OR DATE OF ACCEPTANCE OF BID BY SALE OFFICER - ORDER XXI, RULE 84, C.P.C.

Fact of the Case:

In an execution proceeding, the Amin held an auction on September 14, 1963, and accepted the highest bid of Girraj. Girraj deposited 25% of the purchase money with the Amin. The Amin returned the warrant along with his report to the Munsif, who passed an order on September 16, 1963, approving the bid and confirming the sale. The judgment-debtor filed an application under Order XXI, Rule 90 of the Code of Civil Procedure to set aside the sale on November 6, 1963. The Munsif dismissed the application as time-barred, holding that it had been filed beyond the period of limitation of 30 days from September 14, 1963, the date of the sale. The District Judge allowed the appeal filed by the judgment-debtor, holding that the date of the sale was September 16, 1963, and that the application for setting aside the sale was filed within 30 days of that date.

Finding of the Court:

The Court held that the date of sale was September 14, 1963, when the Amin accepted the highest bid of Girraj and Girraj deposited 25% of the purchase money with the Amin. The Court found that the application for setting aside the sale was filed more than 30 days after that date and was time barred.

Issues: Whether the date of sale is the date of acceptance of the bid by the Court or the date of acceptance of the bid by the sale officer.

Ratio Decidendi: The Court held that, in the absence of a practice, rule, or reservation of power by the Court to accept the bid and declare the purchaser, the date of sale is the date on which the officer conducting the sale accepts the highest bid, declares the purchaser, and the purchaser deposits 25% of the purchase price. The Court found that, in the present case, the Amin had accepted the highest bid of Girraj and had taken the deposit of Rs. 300/- on account of 25% of the sale price. Therefore, the Court held that the date of sale was September 14, 1963.

Final Decision: The Court allowed the revision, set aside the judgment and order of the District Judge, and restored that of the Munsif.

Judgement

G. C. MATHUR, J.:- Lala Ram applicant No. 1 obtained a simple money decree against Bhajani, opposite party. In execution of the decree, some Bhumidhari land of the judgment-debtor was attached. On May 25, 1963, the Munsif (executing Court) ordered the issue of the sale proclamation, fixing September 14, 1963, for the sale. On May 27, 1963, the warrant of sale was issued, directing the Amin to sell the attached property by auction. The Amin was directed to return the warrant by September 16, 1963, with an endorsement certifying the manner in which it had been executed. The Amin held the auction on September 14, 1963. The highest bid of Girraj applicant No. 2 of Rs. 1,200/- was accepted bv the Amin and on the same date, Girraj deposited with the Amin a sum of Rs. 300/-. being 25 per cent of the purchase money. The Amin then returned the warrant together with his report to the Munsif and on September 16, 1963, the Munsif passed an order"bid is approved". On October 15, 1963, the judgment-debtor filed an application under Order XXI. Rule 90 of the Code of Civil Procedure to set aside the sale. On November 6. 1963, the Munsif dismissed the application as time-barred, holding that it had been filed beyond the period of limitation of 30 days from September 14, 1963, the date of the sale. Two days later, on November 8, 1963, the Munsif passed the following order:-

"Sale dated 14-9-1963 is confirmed. Execution is struck off in full satisfaction."

Against the order dismissing the application for setting aside the sale, the judgment-debtor filed an appeal. The District Judge, who heard the appeal, was of the view that the date of the sale was September 16, 1963, the date on which the Munsif approved the bid and that the application for setting aside the sale was filed within 30 days of that date. He accordingly allowed the appeal and directed the Munsif to entertain the objection and to decide it on merits. Against this order, the decree-holders and the auction purchaser have come to this Court in revision.

2. The real question, which arises for consideration in this case, is whether the date of the rale is September 14, 1963, when the Amin auctioned the attached property, or September 16, 1963, when the Munsif approved the bid. Under Article 166 of the Limitation Act of 1908, limitation for making an application under O. XXI, Rule 90 is 30 days from"the date of the sale". Admittedly, the application filed by the judgment-debtor is beyond 30 days from September 14, 1963, but within 30 days from September 16, 1963. In allowing the appeal, the District Judge has observed:-

"The Amin has not accepted the bid but he has mentioned in the bid list that a certain bid was the highest bid and then submitted the papers to the learned Munsif who formally accepted the bid on 16th Sept. It cannot, therefore, be said that the Amin had accepted the bid and the order of the learned Munsif is redundant."

This is incorrect and is not borne out by the record. The record clearly shows that the Amin had accepted the highest bid of Girraj. The warrant of sale issued to the Amin directed him to sell the attached property by auction and to report compliance by September 16, 1963. The sale proclamation also states that the attached property will be sold by the Amin. On the Fard Neelam, the Amin has noted down all bids received by him, including the last bid of Rs. 1,200/- by Girraj. After the bids, the Amin has stated that no higher bid than that of Girraj was forthcoming and therefore, the auction was concluded in favour of Girraj for Rs. 1,200/-. On the back of the warrant of sale, the Amin has written out his compliance report. In this report also, he has stated that no higher bid than that of Girraj for Rs. 1,200/- was forthcoming, that the price offered appeared to be adequate and therefore, the sale was concluded in favour of Girraj for Rs. 1,200/-. He has further stated that Girraj had deposited Rs. 300/- in cash towards one-fourth of the sale price
















































Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top