Seethammal
Vs. Senthil Finance & Anr [1996] INSC 403 (15 March 1996)
Ramaswamy,
K.Ramaswamy, K.Nanavati G.T. (J)
CITATION:
1996 AIR 1551 JT 1996 (3) 664 1996 SCALE (3)196
ACT:
HEAD NOTE:
O R D
E R
Leave
granted.
Heard
learned counsel for both the parties.
In
execution of money decree in O.S. No.67/87, the property, i.e., 1053 sq. feet
of land with built-in house was sold for a sum of Rs.15100/- subject to
discharge of the mortgage sum of Rs.43,000/- encumbered on the property. The
appellant/judgment-debtor questioned the validity of the sale under Order 21,
Rule 97, CPC. The executing Court rejected, the same which was confirmed in C.R.P.No.
1895/93 by the impugned order dated September 26, 1993 of the High Court of Madras. Thus
this appeal.
Having
heard the learned counsel on both sides, we are of the view that the sale is in
excess of the execution. It is not in dispute that the property sold consists
of a built-up house in a portion measuring 1053 sq. ft. The property was
originally valued for a sum of Rs.75,000/-. But subsequently, it was reduced to
Rs.50,000/-. At an auction, it was sold for a mere sum of Rs.15,100/-. The
upset price was Rs.15,000/-. The respondent's bid was for Rs.15,100/ and the
sale was knocked down as stated earlier, subject to the discharge of the
mortgage for a sum of Rs.40,000/-. It is now stated by Mr. A.T.M. Sampath, the
learned counsel for the second respondent that the respondent himself is a
mortgagee of that property for a sum of Rs.40,000/-. It is, therefore, clear
that nobody was coming forward to purchase the property and the respondent
himself had purchased it for a sum of Rs.15,100/-. Under these circumstances,
we are of the view that the sale conducted by the executing Court was obviously
illegal. It is stated that the appellant had already deposited the entire decretal
amount and it was withdrawn by the decree-holder also. In addition, the
appellant is directed to deposit interest @ 18% from the date of the sale,
namely, January 20,
1992 till date on the
amount of Rs.15,100/- deposited by the respondent and the respondent shall be
at liberty to withdraw the same. In addition, the appellant shall also pay a
sum of Rs.2000/- towards poundage fee. The amount shall be deposited within a
period of six months from today.
The
appeal is accordingly allowed subject to the above terms. No costs.
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