Ganpat
Singh (Dead) By LRS. Vs. Kailash Shankar & Ors [1987] INSC 161 (8 May 1987)
DUTT,
M.M. (J) DUTT, M.M. (J) VENKATARAMIAH, E.S. (J) CITATION: 1987 AIR 1443 1987
SCR (3) 355 1987 SCC (3) 146 JT 1987 (2) 619 1987 SCALE (1)1273
ACT:
Limitation
Act, 1963: Articles 134 & 136--Scope and applicability of--Application by
auction purchaser under Order XXI Rule 95 CPC for delivery of possession of
property sold in execution of decree--Period of limitation prescribed in
Article 134 and not Article 136 applicable--Position not changed by insertion
of Explanation II to Section 47 CPC by CPC (Amendment) Act 1976.
Civil
Procedure Code 1908: Application for delivery of possession cannot be equated
to an application for execution of decree.
HEADNOTE:
The
mortgagee decree-holder in execution of the final decree for mortgage, himself
purchased the disputed property in the auction sale held on July 14, 1978. On
September 20, 1978 the judgment-debtor, the predecessor-in-interest of the
appellants, filed an application under Order XXI Rule 90 of the Code of Civil
Procedure for setting aside the aforesaid sale. Two other petitions of
objections were filed, one of these being by another judgment-debtor. All these
objections including the application under Order XXI Rule 90 of the Code of
Civil Procedure were dismissed for default. Consequently, the sale was
confirmed by the District Judge, the executing Court on January 2, 1979.
On
July 17, 1980 more than one year after the sale was confirmed the decree-holder
auction-purchaser filed an application under Order XXI Rule 95 of the Code of
Civil Procedure for delivery of possession of the property auctioned-purchased
by him. This application was opposed by the judgment-debtor on the ground that
as the application was filed more than one year after the confirmation of sale
it was barred by limitation under Article 134 of the Limitation Act.
The
District Judge held that in view of Explanation II of Section 47 which was inserted
in the Code of Civil Procedure, by Section 20 of 356 the Code of Civil
Procedure (Amendment) Act, 1974, Article 136 prescribing a period of limitation
of 12 years for the execution of the decree and not Article 134 of the Limitation
Act would be applicable, and held that the application was not barred by
limitation and directed issuance of the warrant of possession in respect of the
disputed property.
The
judgment-debtor filed a revision application under section 115 of the Code of
Civil Procedure and a Single Judge of the High Court dismissed the revision
application.
The
High Court held that after the insertion of Explanation II to Section 47 of the
Cede of Civil Procedure, the purchaser of property at a sale in execution of a
decree would be deemed to be a party to the suit in which the decree was passed,
and all questions relating to the delivery of pos- session of the property to
such purchaser of immovable property would be questions relating to the
execution of the decree and, as such, Article 136 and not Article 134 of the
Limitation Act would apply. It was also held after the amendment of the Code of
Civil Procedure, Article 134 and Article 136 of the Limitation act became so
inconsistent that both could not exist and that Article 134 stood impliedly
repealed by Section 47 of the Code of Civil Procedure read with Article 136 of
the Limitation Act.
A
certificate for appeal to this Court under Article 134A of the Constitution,
was granted by the Single Judge.
As
the certificate on the basis of which the appeal was filed was not competent in
view of clause III of Article 133, the appeal was treated as one under Article
136.
After
conclusion of the hearing, the parties settled the dispute, the respondent
decree-holder agreeing to relinquish all his rights as the auction-purchaser
upon the appellants paying an agreed amount.
In
spite of such settlement the Court felt the necessity of laying down the
correct legal position.
Setting
aside the judgment of the Single Judge of the High Court and that of the
District Court,
HELD:
1. Article 134 of the Limitation Act, 1963 would apply to an application under
Order XXI Rule 95 of the Code of Civil Procedure by the auction-purchaser for
delivery of possession of the property sold in execution of a decree. [363G]
357
2.
The Single Judge of the High Court has misunderstood the scope of the provision
of section 47 of the Code of Civil Procedure and that of the provisions of
Articles 134 and 136 of the Limitation Act, 1963. It may be that before the
amendment of section 47, an auction purchaser could file a suit for recovery of
the possession of the property within 12 years from the date of the sale, but
in view of the amendment of Section 47 of the Code such a suit cannot be filed.
But that is no ground for holding that Article 136 of the Limitation Act would
apply to an application for delivery of possession. [363C-D]
3.
It is for the Legislature to prescribe the period of Limitation, and the Court
is only to see whether any particular application has been filed within that
period. [363F]
4.
When a property is sold in execution of a decree an application for setting
aside the sale may be made under Rule 89, 90 or 91 of Order XXI of the Code of
Civil Procedure by the persons and on the ground mentioned therein.
Such
an application has also to be made within the pre- scribed period of limitation
of 60 days from the date of the sale under Article 127 of the Limitation Act,
1963. Article 134 prescribes a limitation of one year for an application for
delivery of possession by a purchaser of immovable property at a sale in
execution of a decree. The limitation of one year will be computed from the
date the sale becomes absolute. Such an application for delivery of possession
can be filed only after the decree is put into execution within the period of
limitation as prescribed by Article 136 of the Limitation Act. [362B-D]
5.
The period of limitation prescribed by Articles 136 and 134 are for two
different purposes, the former being for the execution of a decree for
possession in respect of which the decree is passed, and the latter for an
application for delivery of possession of immovable property which is purchased
in the course of execution of a decree. The two articles have nothing in common
for their operation. They do not stand in conflict with each other. [362D-E]
6.
The scope of Articles 134 and 136 and the subject- matter being completely
different, the question of implied repeal of Article 134, does not at all
arise. [363F]
7.
Merely because Explanation II to Section 47 CPC was inserted by the C.P.C.
(Amendment) Act 1976, an application for delivery of possession under Order XXI
Rule 95 C.P.C. cannot be equated with an application for the execution of a
decree for possession so as to apply 12 358 years period of limitation as
prescribed by Article 136 of the Limitation Act.[362F-G]
8.
An application for delivery of possession of immovable property purchased in
execution cannot, by any stretch of imagination, be construed as an application
for execution of a decree for possession of property so as to invoke the
provision of Article 136 of the Limitation Act. [362E]
9.
After a sale becomes absolute on the dismissal of the application of the
judgment-debtor's claim for setting aside the sale, another application for
setting aside the sale by the judgment-debtor is not maintainable and the
period of limitation as prescribed by Article 134 of the Limitation Act cannot
be computed from the date of the dismissal of the second application for
setting aside the sale. [366H; 367A]
10.
In the instant case, on January 2, 1979 while dismissing the application of the
judgment-debtor under Order XXI Rule 90 the District Judge confirmed the sale.
The said order confirming the sale is binding not only on the judgment-debtor,
who made the application under Order XX1 Rule 90, but also on all other parties
to the execution proceedings including the 4th judgment-debtor. Accordingly,
there can be no doubt that the application filed by the 4th judgment-debtor
praying for setting aside of the sale on grounds other than those mentioned in
Rules 89 to 91 was not maintainable after the confirmation of the sale. By the
order dated July 21, 1979 the District Judge while dismissing the application
of the judgment-debtor observed that after the confirmation of the sale the
Court was not authorised to entertain the application. The application of the
judgment- debtor not being maintainable in law, the respondent decree-holder
was not entitled to compute the period of one year under Article 134 of the
Limitation Act from the date of dismissal of the second application by the 4th
judgment debtor. [365C-E; 368B] Chandra Mani Sahai & Ors. v. Anarjan Bibi
& Ors., AIR 1934 PC 134 Kamakshi Ammal & ANR. v. Arukkani Ammal &
Ors., AIR 1957 Madras 440 explained and distinguished.
Civil
Appellate Jurisdiction: Civil Appeal No. 2841 of 1986. From the Judgment and
Order dated 9.4. 1986 of the Rajasthan High Court in S.B. Civil Revision No. 11
of 1981.
359
VM. Tarkunde, S. Atreya, Virendra Bandhu and Indra Makwana for the Appellants.
T.S.
Krishnamurthy Iyer and S.K. Jain for the Respondents. The Judgment of the Court
was delivered by DUTT, J. This appeal on a certificate granted under Article
134A of the Constitution of India is at the instance of the heirs and legal
representatives of a deceased judgment-debtor and is directed against the
judgment of a learned Single Judge of the Rajasthan High Court whereby the
learned Judge upheld the order dated December 12, 1980 of the learned District
Judge, Jaipur City, Jaipur, holding that in view of Article 136 of the
Limitation Act, 1963 the application of the decree-holder auction-purchaser for
delivery of possession of the property auctioned-purchased by him was
maintainable and not barred by limitation. The certificate on the basis of
which the appeal is filed is not competent in view of clause (3) of Article 133
of the Constitution, we have however treated the appeal as one under Article
136 of the Constitution. The special leave to file the appeal is granted by us.
The
mortgagee decree-holder in execution of the final decree for mortgage himself
purchase the disputed property in the auction-sale held on July 14, 1978 at a
sum of Rs.30,000. On September 20, 1978, the judgment-debtor Ganpat Singh,
since deceased, the predecessorin-interest of the appellants, filed an
application under Order XXI Rule 90 of the Code of Civil Procedure for setting
aside the sale. Two other petitions of objections were filed by one Chiranji
Lal and by another judgment-debtor, Mst. Abhey Kanwar. All these objections
including the application of Ganpat Singh under Order XXI Rule 90 of the Code
of Civil Procedure, were dismissed for default and, consequently, the sale was
con- firmed by the learned district Judge, the executing court, on January 2,
1979.
On
July 17, 1980, that is, more than one year after the sale was confirmed, the
decree-holder auction-purchaser filed an application under Order XXI Rule 95 of
the Code of Civil Procedure for delivery of possession of the property
auctioned-purchased by him. The said application was opposed by the
judgment-debtor Ganpat Singh on the ground that as the application was filed
more than one year after the confirmation of sale, it was barred by limitation
under Article 134 of the Limitation Act.
360
It was held by the learned District Judge that in view of the provision of
Explanation I1 of section 47 which was inserted in the Code by Section 20 of
the Code of Civil Procedure (Amendment) Act, 1974, Article 136 prescribing a
period of limitation of 12 years for the execution of the decree and not
Article 134 of the Limitation Act would apply. In that view of the matter, the
learned District Judge held that the application was not barred by limitation
as contended on behalf of the judgment-debtor and directed issuance of the
warrant of possession in respect of the disputed property.
Being
aggrieved by the said order of the learned District Judge, the judgment-debtor
filed a revisional application under section 115 of the Code of Civil Procedure
before a learned Single Judge of the High Court. The view expressed by the
learned District Judge commended to the learned Judge of the High Court. The
learned Judge took a similar view that after the insertion of Explanation II to
Section 47 of the Code of Civil Procedure, a purchaser of property at a sale in
execution of a decree would be deemed to be a party to the suit in which the
decree was passed and all questions relating to the delivery of possession of
the property to such purchaser of immovable property would be questions
relating to the execution of the decree and, as such, Article 136 and not
Article 134 of the Limitation Act would apply. Further, the learned Judge held,
inter alia, that after the amendment of the Code of Civil Procedure, Article
134 and Article 136 of the Limitation Act became so inconsistent that both
could not exist and, relying upon the principle that in cases where two
articles are equally applicable, the rule that the article which keeps alive
the right of the party must be preferred, the learned Judge held that Article
134 stood impliedly repealed of section 47 of the Code of Civil Procedure read
with Article 136 of the Limitation Act. In that view of the matter, the learned
Judge dismissed the revisional application of the judgment- debtor under
section 115 of the Code of Civil Procedure. The learned Judge, however, granted
a certificate to the appellants for appeal to this Court under Article 134A of
the Constitution of India. Hence this appeal.
At
this stage, it may be stated that the parties have settled their disputes after
the hearing was concluded, the respondent decree holder having agreed to
relinquish all his rights as the auction purchaser upon the appellants paying
him a sum of Rs. 1,28,000. The terms of such settlement will be stated
hereafter. In spite of such settlement, we think we should consider the view
expressed by the learned district Judge and the learned Single Judge of the
High Court 361 that after the amendment of section 47 of the Code of Civil
Procedure, an application under Order XXI Rule 95 of the Code will be governed
by Article 136 of the Limitation Act and that, as held by the learned Judge of
the High Court, Article 134 stands impliedly repealed by section 47 read with
Article 136 of the Limitation Act.
Both
the learned District Judge and the learned Judge of the High Court have been
greatly influenced by the fact of the insertion of Explanation II under section
47 by the Code of Civil Procedure (Amendment) Act, 1976. Explanation II
provides as follows:- "Explanation II. (a) For the purposes of this section,
a purchaser of property at a sale in execution of a decree shall be deemed to
be a party to the suit in which the decree' is passed; and (b) all questions
relating to the delivery of possession of such property to such purchaser or
his representative shall be deemed to be questions relating to the execution,
discharge or satisfaction of the decree within the meaning of this
section." Under clause (a) of Explanation II the auction-purchaser shall
be deemed to be a party to the suit in which the decree is passed. Under clause
(c), all questions relating to the delivery of possession shall be deemed to be
questions relating to the execution, discharge or satisfaction of the decree
within the meaning of section 47. Section 47 bars determination of any question
relating to the execution, discharge or satisfaction of the decree in a suit.
Such
question shall be determined by the executing court. As has been already
noticed, in view of clause (a) of Explanation II, the auction-purchaser shall
be deemed to be a party to the suit in which the decree is passed and under
clause (b) of Explanation II all questions relating to delivery of possession
shall be deemed to be questions relating to the execution, discharge or
satisfaction of the decree. Such questions, therefore, are to be determined by
the court executing the decree and not by a separate suit.
Section
47 itself has nothing to do with the question of limitation. Article 136
prescribes a period of limitation of 12 years for the execution of a decree
from the date on which the decree or order becomes enforceable or where the
decree or any subsequent order directs any payment of money or the delivery of
any property to be made at a certain date or at recurring periods when default
in making any 362 payment or delivery in respect of which execution is sought,
takes place. After a decree is out into execution within the period of
limitation under Article 136, questions relating to execution, discharge or
satisfaction of the decree may arise and such questions including the question
as to the delivery of possession shall be determined by the executing court.
When a property is sold in execution of a decree, an application for setting
aside the sale may be made under Rules 89, 90 or 91 of Order XXI of the Code of
Civil Procedure by the persons and on grounds as mentioned therein.
Such
an application has also to be made within the pre- scribed period of limitation
of sixty days from the date of sale under Article 127 of the Limitation Act,
1963. Article 134 prescribes a limitation of one year for an application for
delivery of possession by a purchaser of immovable property at a sale in
execution of a decree. The limitation of one year will be computed from the
date the sale becomes absolute. Such an application for delivery of possession
can be filed only after the decree is put into execution within the period of
limitation as prescribed by Article 136 of the Limitation Act. The periods of
limitation prescribed by Articles 136 and 134 are for two different purposes,
the former being for the execution of a decree for possession in respect of
which decree is passed and the latter for an application for delivery of
possession of immovable property which is purchased in the course of execution
of a decree.
The
two articles have nothing in common for their operation and it is not readily
understandable how the two articles stand in conflict with each other. An
application for delivery of possession of immovable property purchased in
execution cannot, by any stretch of imagination, be construed as an application
for execution of a decree for possession of property so as to invoke the
provision of Article 136 of the Limitation Act. Merely because the
auction-purchaser will be deemed to be a party in the suit in which the decree
has been passed, as provided in clause (a) of Explanation II to section 47 of
the Code, and by virtue of clause (b) of Explanation II all questions relating
to delivery of possession of the property shall be deemed to be questions relating
to execution, discharge or satisfaction of the decree within the meaning of
section 47, an application for delivery of possession under Order XXI Rule 95
of the Code of Civil Procedure cannot be equated with an application for the
execution of a decree for possession so as to apply 12 years' period of
limitation as prescribed by Article 136 of the Limitation Act.
If
it is held that Article 136 would apply to an application for delivery of
possession under Order XXI Rule 95 of the Code, it may lead to an absurdity. Suppose
a decree is put into execution on the last day of limitation of 12 years.
Obviously, the sale of any property in 363 execution of the decree will take
place after the expiry of 12 years and, therefore, no application for delivery
of possession of the property of the auction-purchaser will be maintainable as
12 years have already passed from the date of the decree. If Article 136 is
held to apply to an application for delivery of possession, then for the very
same reason it will also apply to an application for setting aside sale. In
other words, an application for setting aside sale can also be made within a
period of 12 years from the date of decree irrespective of the date of sale,
which is absurd on the face of it.
It
appears that the learned Judge of the High Court has misunderstood the scope of
the provision of section 47 of the Code of Civil Procedure and that of the
provisions of Articles 134 and 136 of the Limitation Act, 1963. It may be that
before the amendment of section 47 of the Code, an auction-purchaser could file
a suit for recovery of possession of the property within 12 years from the date
of sale, but in view of the amendment of section 47 of the Code such a suit
cannot be filed. But that is no ground for holding that Article 136 of the
Limitation Act would apply to an application for delivery of possession. Under
the old Limitation Act of 1908, an application for delivery of possession could
be made within three years from the date on which sale became absolute as
prescribed by Article 180 of that Act, but under Article 134 of the Limitation
Act, 1953 such an application can be made within one year from the date on
which sale became absolute. Thus the period of limitation for delivery of
possession of property purchased at the court sale has been reduced to a
considerable extent, but that also cannot be taken into consideration for the
purpose of interpretation of the provisions of the Limitation Act.
It
is for the Legislature to prescribe the period and the Court is only to see
whether any particular application has been filed within that period. In the
instant case, as stated already, the scope of Articles 134 and 136 and their
subject-matters being completely different, the question of implied repeal of
Article 134, as held by the learned Judge of the High Court, does not at all
arise. We would, accordingly, hold that Article 134 will apply to an
application under Order XXI Rule 95 of the Code of Civil Procedure by the
auction-purchaser for delivery of possession of the property sold in execution
of a decree.
It
may be mentioned here that Mr. Krishnamurthy Iyer, learned Counsel appearing on
behalf of the decree-holder respondent, has not made any attempt to support the
judgment of the High Court on the ground of amendment of section 47 of the Code
of Civil Procedure or on the ground of implied repeal of Article 134 of the
Limitation Act by 364 the amended section 47 of the Code read with Article 136
of the Limitation Act. On the contrary, it is contended by him that there can
be no doubt that limitation under Article 134 commences from the date when the
sale becomes absolute. He has, however, sought to support the conclusion of the
learned Judge of the High Court that the application for delivery of possession
of the property is not barred by limitation on another groups which will be
stated presently.
Under
Order XXI Rule 92 where no application is made under Rule 89, Rule 90 or Rule
91 where such application is made and disallowed, the court shall make an order
confirming the sale, and thereupon the sale shall become absolute. It is
submitted by the learned Counsel that it is not correct that the sale becomes
absolute only under the circumstances as mentioned in Rule 92, and that apart
from the provisions of Rules 89, 90 and 91 of Order XXI of the Code, an
auction- sale can be challenged on grounds other than those mentioned in the
said Rules. Counsel submits that if an application for setting aside sale is
made and disposed of, the sale will become absolute after the disposal of such
application, even though the application is not one as contemplated by Rules
89, 90 or 91 of Order XXI of the Code.
In
this connection, the learned Counsel has drawn-our attention to an application
for setting aside the sale made by the 4th judgment debtor on January 27, 1979
on grounds other than those mentioned in Rules 89, 90, or 91. But the said
application was dismissed by the learned district Judge on July 21, 1979. It is
submitted by the learned Counsel that on the disposal of that application on July
21, 1979, the sale became absolute and the decree-holder respondent having
filed the application for delivery of possession on July 17, 1980, that is,
within one year from July 21, 1979, it should be held that the application was
quite within the period of limitation as prescribed by Article 134 of the
Limitation Act. In support of the contention, the learned Counsel has placed
reliance upon a decision of the Privy Council in Chandra Mani Saha and others
v. Anarjan Bibi and others, AIR 1984 PC 134. In that case, in interpreting the
words "when the sale becomes absolute" in Article 180 of the old
Limitation Act, '1908, the Privy Council observed as follows:- "Upon
consideration of the sections and orders of the Code, their Lordships are of opinion
that in construing the meaning of the words "when the sale becomes
absolute" in Art. 180, Lim. Act, regard must be had not only to the
provisions of O. 21. R. 92(1) of the schedule to the Civil Procedure Code, but
also to the other material sections and 365 orders of the Code, including those
which relate to appeals from orders made under O.21, R. 92(1). The result is
that where there is an appeal from an order of the Subordinate Judge,
disallowing the application to set aside the sale, the sale will not become absolute
within the meaning of Art. 180, Lim. Act, until the disposal of the appeal,
even though the subordinate Judge may have con- firmed the sale, as he was
bound to do, when he decided to disallow the above mentioned application.
We
may now consider the above contention of the learned Counsel for the respondent
decree-holder. It has been al- ready noticed that on January 2, 1979 while
dismissing the application of the judgment-debtor under Order XXI Rule 90 of
the Code of Civil Procedure, the learned District Judge also confirmed the
sale. The said order of the learned District Judge confirming the sale is
binding not only on the judgment-debtor, who made the application under Order
21 Rule 90, but also on all other parties to the execution proceedings including
the 4th judgment-debtor. Accordingly, there can be no doubt that the
application filed by the 4th judgment-debtor praying for the setting aside of
the sale on grounds other than those mentioned in Rules 89, 90 and 91, was not
maintainable after the confirmation of the sale.
Indeed,
by the order dated July 21, 1979 the learned District Judge while dismissing
the application of the 4th judgment-debtor observed that after the confirmation
of the sale, the court was not authorised to entertain the application. We do
not think that the decision of the Privy Council in Chandra Mani's case (supra)
lends any support to the contention of the learned Counsel for the respondent
decree-holder that an auction-sale can be set aside even on grounds other than
those mentioned in Rules 89, 90 and 91.
All
that has been ruled in that decision is that in construing the meaning of the
words "when the sale becomes absolute" in Article 180 of the old
Limitation Act, regard must be had not only to the provision of Order XXI Rule
92(1) of the Code, but also to the other material sections and orders of the
Code including those which relate to appeals from orders made under Order XXI
Rule 92(1). No provision of the Code has been pointed out to us under which a
sale can be set aside apart from the provisions of Rules 89, 90 and 91 of order
XXI of the Code. There can be no doubt that when an application for setting
aside the sale is made, the order passed by the executing court either allowing
or dismissing the application will be final and effective subject to an appeal
that may be made under the provisions of the Code. It is inconceivable that
even though no appeal has been filed against an order dismissing an application
for setting aside the sale, another application for setting aside the sale can
be made without first having the order set aside. Such an application will be
barred by the principle of resludicata. In the circumstances, there is no merit
in the contention made on behalf of the respondent decree-holder that the application
for delivery of possession having been made within one year of the dismissal of
the application of the 4th judgment-debtor for setting aside the sale, it was
within the period of limitation as pre- scribed by Article 134 of the
Limitation Act.
In
Kamakshi Ammal and another v. Arukkani Ammal and another, AIR 1957 Mad. 440,
which has been relied on by the learned Counsel for the decree-holder
respondent, there was an application under Order XX1 Rule 58 of the Code of
Civil Procedure by one Nagammal who claimed under a possessory mortgage and
that claim was allowed on June 14, 19 13. The decree-holder filed a suit to set
aside this claim as she was entitled to do under the Code before it was amended
in 1976. The suit terminated in a compromise decree on August 15, 1944 and the
application under Order XXI Rule 95 of the Code was made by the decree-holder
on August 14, 1947, that is, within three years from the date when the
claim-suit was disposed of. It was held by the Madras High Court that the sale could
not be said to have become absolute till the claim-suit was finally disposed of
on August 15, 1944. In holding that, the Madras High Court has placed reliance
upon the decision of the Privy Council in Chandra Mani's case (supra) to the
effect that though the third column of Article 190 of the old Limitation Act
refers to the date when the sale becomes absolute, that clause must be read not
only with the provision of Order XXI Rule 92(1) of the Code, but also with the
other material provisions and orders of the Code.
In
our opinion the above decision of the Madras High Court in Kamakshi Ammal's case
does not support the contention of the respondent decree-holder. Order XXI Rule
58 of the Code is a material provision relating to any claim that may be preferred
or any objection that may be made to the attachment of any property in
execution of a decree. Any sale that is held would, undoubtedly, be subject to
the order that may be passed under Order XXI Rule 58 of the Code and,
thereafter, as provided in the Code before its amendment in 1976, the result of
a suit that may be filed challenging such order passed by the executing court
under Order XXI Rule 58. But after a sale becomes absolute on the dismissal of
the application of the judgment debtor's claim for setting aside the sale,
another application for setting 367 aside the sale by the judgment-debtor is
not maintainable and the period of limitation as prescribed by Article 134 of
the Limitation Act cannot be computed from the date of the dismissal of the
second application for setting aside the sale.
The
decision of the Madras High Court in Dadrabahu Nainar v. Devendra Nainar, ILR
(1969) 1 Mad. 175, relied on by the respondent decree-holder, does not appear
to be of any assistance to him. In that case, the Madras High Court has only
followed the decision of the Privy Council in Chandra Mani's case (supra). In
an earlier decision of the Full Bench of the Madras High Court in Muthu
Korakkai Chetty v. Madar Ammal, ILR 43 Mad. 185 FD, also relied on by the respondent
decree-holder, what happened was that after an auction-sale had been confirmed
without opposition on April 26, 1918, an application was made on January 13, 19
18 to set it aside on the ground of fraud, and it was set aside on June 25, 19
18 in respect of a part of the properties sold.
The
auction-purchaser applied on February 17, 1917 for delivery of the remaining
properties. It was held by the Full bench that the application was not barred
under Article 180 of the old Limitation Act as time should be computed from the
date of the order disallowing the petition to set aside the sale on the ground
of fraud and not from the date of the first confirmation. This decision has
been strongly relied upon by the learned Counsel for the respondent decree-holder
and it is submitted that even though the application for setting aside the sale
on the ground of fraud was made after the sale was confirmed, the Full Bench
took the view that the period of limitation under Article 180 of the old
Limitation Act should be computed from the date of the order disallowing the
application to set aside the sale on the ground of fraud and not from the date
of the first confirmation. On the basis of this decision, it is urged that in
the instant case also the period of limitation under Article 134 should be
computed from the date of dismissal of the second application for setting aside
the sale.
We
are enable to accept the contention. In the Full Bench decision of the Madras
High Court the application for setting aside the sale was made by the sons of a
deceased judgment-debtor and the remaining judgment-debtors, and the
application in so far as it was made by the sons of a de- ceased
judgment-debtor was admitted out of due time on the ground of fraud. In our
opinion the High Court was justified in entertaining the application on the
ground of fraud by the sons of a deceased judgment-debtor who were not brought
on the record as the legal representatives of their deceased father. The
application was, therefore, quite maintainable and, even though the sale was
confirmed 368 and became absolute under Order XXI Rule 92, it was subject to
the disposal of the application for setting aside the sale on the ground of
fraud. The facts of this decision are quite different from those of the instant
case before us.
The
application by the judgment-debtor not being maintain- able in law, the
respondent decree-holder was not entitled to compute the period of one year
under Article 134 of the Limitation Act from the date of dismissal of the
second application by the 4th judgment-debtor. The contention made on behalf of
the respondent decree-holder is without sub- stance and is overruled.
In
view of the discussion made above, we set aside the judgment of the learned
Single Judge of the High Court and that of the learned District Judge.
As
stated already, the parties have settled their disputes, the respondent
decree-holder having decree to relinquish all this rights as the
auction-purchaser upon the appellants paying him a sum of Rs. 1,28,000. We are
told that said sum has been deposited in this Court in the above appeal and, as
prayed for by the parties, we by our order dated May 5, 1987 set aside the
execution sale and directed that the amount of Rs. 1,28,000 lying in this Court
would be paid to the respondent decree-holder or to his Counsel in full
settlement of the mortgage decree. By the said order we have also recorded full
satisfaction of the mortgage decree passed in S.C. No. 10/73 on the file of the
District Judge, Jaipur City, obtained by the respondent decree holder against
the appellants and others. It has also been recorded in the order that the
decree-holder auction-purchaser has no sort of claim against the appellants
under the mortgage deed in question or the decree passed thereon. The two suits
which have been filed by the decree-holder auction-purchaser against the Posts
& Telegraph Department for recovery of arrears of rent in respect of the
suit premises have, on the prayer made on behalf of the decree-holder
auction-purchaser, been directed to be dismissed by the Trial Court without
costs, since the money payable there under has been deposited in this Court by
the Posts & Telegraph Department. The Posts & Telegraph Department has
been directed to pay the rent of the premises in suit in their occupation including
arrears, if any, which may have accrued subsequent to the period for which rent
has already been deposited in this Court, to the appellant treating them as
landlords.
Even
though the matter has been settled between the parties as above, we felt the
necessity of laying down the correct legal position and, hence, this Judgment.
N.V.K.
Back