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2025 Supreme(Online)(Ker) 15946

IN THE HIGH COURT OF KERALA AT ERNAKULAM
BASANT BALAJI, J
KULATHU IYYER S.S – Appellant
Versus
E.A. JAYAKUMAR @ JAYAN PUTHENPURACKAL – Respondent
OP(C) 1306/2024



Advocates:
SINDHU SANTHALINGAM, A.D.SHAJAN, JESSY S.SALIM, ABRAHAM P.GEORGE, M.SANTHY(K/001410/1999), RISHABH DILRAJ(K/000501/2024)

Objections under Section 47 CPC are limited to jurisdictional issues; challenges based on irregularities in sale must be made under Order 21 Rule 90 CPC.

Headnote:(A) Code of Civil Procedure, 1908 - Sections 47 and 151 - Order 21 Rule 72(2) and Rule 90 - Execution proceedings - The petitioner, an auction purchaser, challenged the execution court's order setting aside the sale of property due to alleged irregularities in the sale process. The court found that the execution court miscalculated the decree amount and improperly applied Section 47 instead of Order 21 Rule 90, which governs challenges to sales based on irregularities. The court emphasized that the judgment debtor's objections were not substantiated and that the execution court's findings were perverse. (Paras 13, 14, 20, 26, 28)

(B) Judicial precedents - The court reiterated that objections under Section 47 are limited to jurisdictional issues and cannot be based on mere irregularities, which fall under Order 21 Rule 90. (Paras 21, 24, 25)

Facts of the case:
The petitioner lent Rs. 7 lakhs to the respondent, who defaulted, leading to a series of ex-parte decrees and execution proceedings. The property was auctioned, but the respondent later filed an application to set aside the sale, claiming irregularities.

Findings of Court:
The court concluded that the execution court acted on a wrong appreciation of facts and that the application under Section 47 was not maintainable.

Issues: The main issues were whether the execution court's order setting aside the sale was justified and whether the objections raised by the respondent were valid.

Ratio Decidendi: The court ruled that the execution court erred in applying Section 47 instead of Order 21 Rule 90, as the objections were based on irregularities rather than jurisdictional issues.

Result: O.P.(C.) is allowed.

JUDGMENT

(Dated this the 26th day of March 2025)

The petitioner herein is the decree holder/auction purchaser and the respondent is the judgment debtor in E.P. 6/2020 in O.S 166/2013, on the files of the Sub Court, Paravur. This petition is filed assailing the order in E.A. No 183/2023, dated 28.2.2024, in the abovesaid E.P.

2. The petitioner is an octogenarian, who lent an amount of Rs. 7 lakhs to the respondent, on 02.09.2008. The respondent provided cheques that were subsequently dishonoured due to insufficient funds. The petitioner filed O.S. No. 166/2013 in the Sub Court, Ernakulam, on 18.02.2013, to which the respondent has filed a written statement dated 30.01.2014, stating that he has no means to pay and asserted the absence of property within the court's jurisdiction. Due to the respondent's repeated absences, he was declared ex-parte and an ex-parte decree was passed against him on 05.01.2016. Thereafter, the respondent filed a petition to set aside this decree as I.A. No. 4585/2016, which was allowed and the case was included in the list on 01.09.2016. The respondent again failed to appear, leading to a second ex-parte decree on 05.09.2016, following the setting aside of the second ex-parte decree again.

3. The respondent agreed to settle the dispute through mediation and on the basis of the mediation agreement, a judgment was passed in terms of the mediation.

4. The petitioner filed E.P 93/2018 in the Sub Court, Ernakulam. The respondent appeared on 05.10.2018, and filed an objection on 26.10.2018. The Execution Court recorded "no cross for Judgment Debtor ", since he did not appear before the court on 7.11.2018. Subsequently, the respondent filed another objection as Ext P3 in E.A. 774/2018 in E.P. 93/2018, again claiming inability to pay and stated that no property is situated within the jurisdiction of the Execution Court. Since the respondent's property was at Paravur, E.P No. 93/2018 was transferred to the Sub Court, Paravur, and renumbered as E.P No. 6/2020 and the Sub Court was directed by Ext.P4 to dispose of the E.P. within six months.

5. Thereafter, on 27.1.2021, both parties appeared, but on 29.1.2021, the respondent requested more time to file objections, and was posted to 11.2.2021. On that day, neither the respondent nor his counsel appeared, and the matter was posted for further steps on 18.2.2021. Subsequently, an attachment schedule (Ext P5) was filed by the petitioner on 17.2.2021. On 18.2.2021, as there was no representation from the respondent, the petitioner submitted the Fair Value Statement (Ext P6) and Encumbrance Certificate (Ext P7).

6. The court ordered attachment and issued a warrant, scheduling the sale proclamation on 20.3.2021. The sale was conducted on 17.1.2022, with an upset price of Rs. 15,75,000/-, and was confirmed on 23.3.2022.

7. The respondent failed to appear before the Execution Court on 4.1.2021, despite serving of notice and the court below noted appearance of the decree holder and the endorsement of Rule 67 shows that the process was served and the same returned unserved in view of Covid -19 restrictions. The respondent did not object to the attachment schedule filed by the petitioner and the draft sale proclamation was produced on 24.3.2021.

8. On 8.9.2021, as per order in E.A. No. 53/2021, the petitioner was permitted to participate in the auction, and the property was sold for Rs. 15,78,900/-. In fact, the decree amount as on 8.9.2021 was more than that of the purchase price, but the Court has miscalculated the same and has ordered for payment of balance. On 9.11.2021, the execution court noted that the balance consideration is not deposited, and the sale was not confirmed and resale was ordered.

9. On 30.11.2021, the court ordered notices to be affixed to the property and directly served at the respondent's residence. The upset price was fixed at Rs. 15,75,000/-, and the sale was scheduled for 17.01.2022. On 18.1.2022, the court recorded that the property was auctioned for Rs.

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