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1969 Supreme(MP) 20

HIGH COURT OF MADHYA PRADESH
SHIVDAYAJ, J.
Vishan Swaroop
V.
Omprakash & others
C. Revn. No. 138 of 1967
Decided on : 10-2-1969

Advocates appeared:
G.P. Patankar for applicant
K. L Mangal for non-applicant

Headnote:Civil P.C., 1908 - O.21, Rr. 84, 86, 87 - highest bidder not depositing one fourth purchase money - resale should be forthwith' meaning of the word 'forthwith' - resale not held beyond seven days – legal - fresh proclamation when necessary for resale - resale when a nullity.

       (i) When the person, who is declared to be the purchaser, does not, after such declaration, pay immediately a deposit of 25 per cent, of his purchase money to the officer conducting the sale, the property must be resold forthwith. The word "forthwith" in Order 21, Rule 84, C.P.C., means with reasonable speed and expedition, and delay, if any, must be explained.

       (ii) If the officer conducting the sale commences the resale then and there on the spot, such resale is within the Rule, and it cannot be assailed on the ground that a fresh proclamation was not issued.

       (iii) Where the officer conducting the sale does not commence the resale then and there but appoints, and announces to present, another date and hour for the resale, such date being not longer than 7 days, and reports the matter to the Court, and the resale takes place on such appointed date and hour, it is within Order 21, Rule 84, and no fresh proclamation is necessary.

       (iv) Where the officer conducting the sale does not, then and there on the spot, commence the, resale nor appoints another date and hour as above a fresh proclamation is necessary before the resale. And, if the property is resold after a fresh proclamation, it is still within Order 21, Rule 84, C.P.C.

       (v) But where the resale is not commenced then and there nor is another date appointed as above, but the property is resold on another date without a fresh proclamation having been issued, the resale is a nullity on the principle that a sale which is held without intimating the public of the date and time of the sale, is not a sale in the eye of law and must be struck down as null and void. Case-law discussed. [Para 10

       

ORDER

1. This revision arises from an execution proceeding and is directed against the setting aside of sale under Order 21, Rule 90, C.P.C.

2. The judgment-debtor mortgaged the property in dispute to the appellant decree-holder. It was a mortgage with possession. There was a leaseback from the mortgagee to the mortgagor. A decree for arrears of rent was passed against the mortgagor-tenant in favour of the mortgagee landlord. In execution' of that decree, the mortgaged house was put to sale.

3. On February 17, 1966, the property was knocked down to one Girdharilal for his highest bid of Rs.9,250. But be did not deposit 25% of the purchase money as required under Order 21, Rule 84, C.P.C. The auction was then continued on different dates from February 24 to March 25, 1966. Ultimately the property was knocked down to Brijlal for Rs. 7,500 on March 25, 1966.

4. The judgment-debtor filed an application under Order 21, Rule, 90, C.P.C., for setting aside the sale on various grounds. The executing Court dismissed all the objections. But, on appeal, the Learned Additional District Judge, Gwalior, set aside the sale on two grounds: (1) A fresh proclamation of sale was not issued, when the property was put to re-sale, and (2) the executing Court had not decided the judgment-debtor's objection, which he had filed on May 1, 1965. Aggrieved by the appellate order setting aside the sale, the decree-holder preferred this revision.

5. It is contended for the petitioner that a fresh proclamation is not necessary, when the property is resold under Order 21, Rule 84, C.P.C. Learned counsel for the judgment-debtor, on the other hand, contends that firstly, a fresh proclamation was mandatory as required by Order 21, rule 87. Secondly, in the present case a fresh proclamation was necessary because the property was not resold "forthwith as required under Order 21, Rule 84 C.P.C., but it was a fresh sale altogether as it was held subsequently; and since there was no fresh proclamation of sale, which was imperative, the subsequent sale was a nullity.

6. The scheme of the relevant Rules is that as soon as a person is declared to be the purchaser, he must pay immediately a deposit of 25 per cent on the amount of his purchase money (Rule 84). He has to pay the balance on or before the 15th day from the sale (Rule 85). In default of payment of the 75 per cent as required by Rule 85, the consequences are: (a) the deposit may be forfeited; and (b) the property shall be resold (Rule 86). It is then provided in Rule 87 that every resale of immoveable property, 10 default of payment of the purchaser money within the period allowed by such payment, shall be made after the issue of a fresh proclamation. The words "within the period allowed for such payment" make it quite clear that Rule 87 refers to the default under Rule 85, the consequences of which are provided in Rule 86. The words "within the period allowed for such payment" in Rule 87, exclude its application to Rule 84, because the latter requires the payment of deposit of 25 per cent "immediately after such declaration"; there is no "period allowed for payment". This was also the view taken in Pragdas v. Beniprasad AIR 1937 All 556. It is provided in Order 21, Rule 84, C.P.C., that as soon as the property is knocked down to the highest bidder, and he is declared the purchaser, he must deposit on the spot 25 per cent of the purchase money. If he does not, the property must be resold forthwith. It is conspicuous enough that in this Rule, there is no direction for issuance of a fresh proclamation. This is obviously so because of the force of the word "forthwith. Since the property has to be resold with reasonable speed and expedition, a fresh proclamation as required by Order 21, Rule 67, C.P.C., is not contemplated. The language of Rule 27 is in contrast with that of Rule 84. The object of issuing a proclamation of sale is to let the intending purchasers know what property is going to be sold and when, so that


























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