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1973 Supreme(Online)(All) 13

ALLAHABAD HIGH COURT
, J
Ramesh Kumar – Appellant
Versus
Budhram Sharma – Respondent
Second Appeal | N/A



Advocates:
For the Appellants/Petitioners: Sri Rajaram Agarwal
For the Respondents: Sri Ashok Gupta

A decree established in a suit under Order XXI does not automatically nullify an execution sale where necessary parties are not included, reaffirming the principles of execution law.

Headnote:(A) Civil Procedure Code, 1908 - Order XXI - Section 58 - Objection to attachment of property in execution of money decree - Determination of ownership - The executing court's refusal to stay execution, despite objections by claimant, underscores the complexity of property rights when a third party (auction purchaser) is involved. (Paras 2, 8, 12)

(B) The relationship between the judgment-debtor and the objector raises concerns of potential collusion which affects rights of auction purchaser - The execution sale confirmation can only be invalidated through specific objections as provided in the code; failure to include necessary parties in litigation undermines the validity of resulting decrees. (Paras 6, 10, 11)

Facts of the case:
The appellant filed an objection against the execution sale of a house claiming ownership, despite court findings favoring the auction purchaser's rights. The judgment-debtor's payment led to a compromise, raising issues on the necessity of proper parties to the suit.

Findings of Court:
The decree in favor of the objector remains ineffective against auction purchaser due to failure to implead him in the titled suit; hence, the original objection stands valid.

Issues: Whether the decree established in favor of objector automatically cancels the execution sale?

Ratio Decidendi: The court reaffirmed that the auction purchaser’s rights are secured under execution law, underscoring the necessity of compelling third-party participation in suits affecting property rights.

Result: Appeal dismissed.

Table of Content
1. execution sale process initiated despite ownership disputes. (Para 1 , 2)
2. court's conflicting rulings on ownership rights. (Para 3)
3. debate on necessity of parties in execution suits. (Para 4 , 5)
4. need for adhering to procedural mandates in confirming sales. (Para 6 , 8 , 10 , 12)
5. decree outcomes rely on full party participation. (Para 9 , 11)
6. final dismissal of appeal based on existing laws. (Para 13)

1. This second appeal purporting to be under S.47 of the Civil Procedure Code is by Ramesh Kumar who had filed an objection under R.58 of Order XXI . Civil Procedure Code questioning the attachment of a house in execution of a simple money decree in favour of Narendra Deo against Jai Jai Ram.

2. The objection under R.58 of Order XXI was that the objector and not the judgment - debtor was the owner of the house attached. This objection was preferred on 21-9-1968. The executing court, however, did not stay the execution sale which had been already advertised to be held on 23-9-1968. The sale was held on the day fixed, that is on 23-9-1968. and the highest bid was that of Budhram Sharma which was accepted by the court on 25-9-1968. The objection of Ramesh Kumar under R.58 of Order XXI was disallowed by the executing court on 14-4-1970. Before the sale could be confirmed by the court Ramesh Kumar filed a suit under O. XXI. R. 63 for declaration of his title in the house sold. To this suit only the judgment - debtor and the decree - holder were impleaded as defendants. The auction purchaser Budhram Sharma was not made a party. On opposition of Ramesh Kumar the attempt by Budhram Sharma, the auction purchaser, to be impleaded as defendant failed. There was a compromise between the parties and the suit was decided in terms of the compromise on 20-10-1970 by which the title of Ramesh Kumar to the house sold in execution of the decree was recognised.
It appears while the said suit was pending the judgment debtor paid the decretal amount to the decree - holder and that payment was duly certified by the executing court by an order dated 8-8-1970 but as the sale had not been confirmed by the court by that time, it was further ordered that the certification would not prejudice the rights of the auction purchaser, if any, acquired under law. Thereafter by an order dated 21-12-1970 the executing court struck off the execution in full satisfaction and set aside the sale dated 23-9-1968. Budhram Sharma, the auction purchaser, filed an appeal against the said order which was allowed and the sale in his favour was confirmed by the lower appellate court by its order dated 27-4-1971. It is against this order that Ramesh Kumar the objector claimant has come up in appeal.

3. The main question which falls for determination in this appeal is whether the decree passed in favour of the appellant Ramesh Kumar in the suit filed under R.63 of Order XXI will result in an automatic cancellation of the sale in execution of the decree and for that reason the sale in favour of Budhram Sharma, the auction purchaser, was liable to be set aside. The two courts below have differed on this question. The executing court held that the objector Ramesh Kumar having established his title to the house attached in execution in the suit under R.63 of Order XXI the sale held in execution automatically failed and was liable to be set aside. The lower appellate Court held that there being no objection under R.89-91 of Order XXI to set aside the execution sale, no choice was left with the court but to confirm the sale inasmuch as Budhram Sharma. the auction purchaser, not being a party to the suit under Order XXI , R.63 the order of the executing court disallowing the objection under R.58 of Order XXI remained conclusive in his favour and the sale was liable to be confirmed.

4. Sri Rajaram Agarwal, learned counsel appearing for the appellant, relying upon the provisions of the relevant rules of Order XXI as amended by our High Court submitted






















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