Supreme Court Upholds Objection of Limitation by Judgment-Debtor in Execution Proceeding Under Order 21 Rule 95 CPC. Auction Purchaser's Application for Delivery of Possession Barred as Limitation Ran from Date of Confirmation of Sale, Not from Issuance of Sale Certificate Under Article 134 of Limitation Act, 1963.

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Case Note & Summary

The dispute arose from execution proceedings following a partition suit concerning a residential house in Nellore, Andhra Pradesh. The second respondent, Pattam Rasool, had filed a suit for partition and separate possession claiming a one-sixth share. A preliminary decree was passed on January 7, 1977. An Advocate Commissioner was appointed for effecting partition, who reported that the house was not partible and recommended sale. A public auction was conducted, and the sale was knocked down in favour of the first respondent, Pattam Sardar Khan, son of the plaintiff, at Rs. 17,000. No objections were raised against the sale. The court confirmed the sale on August 7, 1984. The sale certificate was issued about five and a quarter years later on November 9, 1989. On the same day, the auction purchaser first respondent filed an application under Order 21 Rule 95 read with Section 151 of the Code of Civil Procedure, 1908, seeking delivery of possession. The appellant, Pattam Khader Khan, a defendant in the original suit, objected that the application was barred by limitation under Article 134 of the Limitation Act, 1963, which prescribes one year for such applications from the date the sale becomes absolute. The executing court, District Munsif, Nellore, sustained the objection on December 14, 1990. The first respondent moved the High Court of Andhra Pradesh in revision. The High Court on November 29, 1993 allowed the revision, holding that limitation runs from the date of issuance of the sale certificate. The appellant then approached the Supreme Court. The core legal issue was whether the starting point of limitation under Article 134 is the date the sale becomes absolute, i.e., confirmation under Order 21 Rule 92 CPC, or the date of issuance of the sale certificate under Order 21 Rule 94. The Supreme Court examined the provisions of the Code of Civil Procedure and the Limitation Act, along with precedents: Chandra Mani Saha & Ors. v. Anarjan Bibi & Ors. (AIR 1934 PC 134), Rama Krishna Rao v. Challayamma (AIR 1953 SC 425), Ganpat Singh (Dead) by Lrs. v. Kailash Shankar & Ors. ((1987) 3 SCC 146), and Kamakshi Ammal v. Arukkani Ammal (AIR 1957 Mad 440). The Court held that where no application to set aside the sale is made, the order confirming the sale under Order 21 Rule 92 is the final step making the sale absolute, and limitation commences from that date. If an appeal is filed against disallowance of such an application, limitation runs from the appellate order, as clarified in Chandra Mani Saha. The issuance of a sale certificate under Order 21 Rule 94 is a ministerial act, not a condition precedent; it is only evidence of title and does not create or complete title. Title vests in the purchaser from the date of sale by virtue of Section 65 CPC, relating back to the date of sale. Delayed issuance of the certificate by the court or inaction by the purchaser does not extend the limitation period. The Court observed that the legislative policy behind the one-year period under Article 134 is to finalise execution proceedings quickly. The High Court's view that limitation starts only from issuance of the sale certificate would unsettle settled law and cause violence to the clear provisions of Article 134. Accordingly, the Supreme Court allowed the appeal, set aside the High Court's order, and restored the executing court's order, holding the application for delivery of possession barred by limitation.

Headnote

A) Limitation Law - Execution Proceedings - Starting Point of Limitation under Article 134 - Limitation Act, 1963, Article 134; Code of Civil Procedure, 1908, Order 21 Rules 92, 94, 95 - Auction purchaser's application for delivery of possession under Order 21 Rule 95 CPC must be filed within one year from date sale becomes absolute; sale becomes absolute on confirmation under Order 21 Rule 92 when no application to set aside sale; issuance of sale certificate under Order 21 Rule 94 does not postpone limitation - High Court erred in holding limitation runs from date of sale certificate; executing court's order restored - Held application barred by limitation.

B) Civil Procedure - Court Sales and Title - Sections 65 and Order 21 Rules 92, 94, 95 CPC - Title to property sold in court auction vests in purchaser from date of sale upon confirmation, relating back under Section 65; sale certificate is formal evidence, ministerial act, not creating title - Issuance delay or inaction by court or purchaser does not affect limitation; purchaser cannot extend limitation on ground certificate not issued - Held that certificate of sale is not sine qua non for application and limitation starts from date sale became absolute.

C) Precedent - Application of Privy Council and Supreme Court Decisions - Chandra Mani Saha v. Anarjan Bibi and Rama Krishna Rao v. Challayamma - Limitation Act, 1908, Article 180; Code of Civil Procedure, 1908, Order 21 Rule 92(1), Order 43 Rule 1 - Where appeal from order disallowing application to set aside sale is filed, limitation runs from appellate order; but in absence of such application, confirmation order itself is final; Madras High Court in Kamakshi Ammal correctly followed, contrary High Court misread - Held that settled law must be followed; appeal allowed and High Court order set aside.

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Issue of Consideration

Whether an application by an auction purchaser under Order 21 Rule 95 CPC for delivery of possession is governed by limitation under Article 134 of Limitation Act, 1963 from the date the sale becomes absolute or from the date of issuance of the sale certificate; whether issuance of sale certificate is a condition precedent for the starting point of limitation.

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Final Decision

Appeal allowed; impugned order of High Court set aside; order of executing court restored; application for delivery of possession held barred by limitation.

Law Points

  • Starting point of limitation under Article 134 of Limitation Act
  • 1963 for application under Order 21 Rule 95 CPC is date sale becomes absolute under Order 21 Rule 92
  • issuance of sale certificate under Order 21 Rule 94 is ministerial and not sine qua non
  • title vests from date of sale under Section 65 CPC
  • where no application to set aside sale
  • confirmation order itself is final
  • where appeal from disallowance of such application
  • limitation runs from appellate order
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Case Details

1996 LawText (SC) (07) 3

1996-07-09

M.M. Punchhi, Sujata V. Manohar

1996 SCC (5) 48 : JT 1996 (6) 201 : 1996 SCALE (5) 63

D. Prakash Reddy, R. Santhana Krishnan, D. Mahesh Babu, K.R. Nagaraja, S. Markandeya, Chitra Markandeya

Pattam Khader Khan

Pattam Sardar Khan & Anr.

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Nature of Litigation

Execution proceeding arising from a partition suit where auction purchaser sought delivery of possession of a court-auctioned residential house; objection raised on limitation under Article 134 of Limitation Act, 1963.

Remedy Sought

Auction purchaser (first respondent) sought delivery of possession of the auctioned property by filing an application under Order 21 Rule 95 read with Section 151 CPC; appellant (defendant/judgment-debtor) objected that the application was time-barred and sought dismissal.

Filing Reason

Sale of property was confirmed by court on 7.8.1984 and sale certificate issued on 9.11.1989; application for delivery of possession was filed on 9.11.1989, more than five years after confirmation; executing court held barred by limitation under Article 134, but High Court reversed, holding limitation starts from issuance of sale certificate.

Previous Decisions

Preliminary decree in partition suit passed on 7.1.1977; sale confirmed on 7.8.1984; sale certificate issued on 9.11.1989; executing court (District Munsif, Nellore) by order dated 14.12.1990 sustained objection of limitation and dismissed delivery application; High Court of Andhra Pradesh in revision allowed purchaser's revision on 29.11.1993, setting aside executing court order.

Issues

Whether an application by an auction purchaser under Order 21 Rule 95 CPC for delivery of possession is governed by limitation under Article 134 of Limitation Act, 1963 from the date the sale becomes absolute (i.e., confirmation of sale under Order 21 Rule 92) or from the date of issuance of the sale certificate. Whether the issuance of a sale certificate under Order 21 Rule 94 CPC is a condition precedent (sine qua non) for the starting point of limitation for an application under Order 21 Rule 95 CPC.

Submissions/Arguments

Appellant/judgment-debtor argued that limitation under Article 134 runs from the date the sale becomes absolute, which is the date of confirmation of sale under Order 21 Rule 92, and not from the date of issuance of sale certificate; sale certificate is only evidence of title and its delayed issuance cannot extend limitation. Respondent/auction purchaser contended that sale certificate is necessary to complete title and limitation should commence from date of issuance of sale certificate, relying on High Court view and some cases; the Supreme Court rejected this as misreading precedents.

Ratio Decidendi

The starting point of limitation for an application under Order 21 Rule 95 CPC by an auction purchaser for delivery of possession is the date on which the sale becomes absolute, i.e., the date of confirmation of sale under Order 21 Rule 92 CPC when no application to set aside the sale has been made; where an appeal against disallowance of such application is filed, limitation runs from the appellate order. Issuance of a sale certificate under Order 21 Rule 94 CPC is a ministerial act, not a condition precedent, and does not extend or postpone the limitation period under Article 134 of Limitation Act, 1963; title to the property vests in the purchaser from the date of sale upon confirmation by virtue of Section 65 CPC, and the certificate is merely evidence of that fact.

Judgment Excerpts

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 Article 180, Limitation Act, regard must be had not only to the provisions of Order 21 Rule 92 (1) of the schedule to the Civil Procedure Code, but also to the other material sections and orders of the Code, including those which relate to appeals from order made under Order 21, Rule 92 (1). The sale certificate rather is a formal acknowledgement of a fact already accomplished, stating as to what stood sold. Such act of the Court is prestinely a ministerial one and not judicial. It is manifest therefore that the issue of sale certificate is not "sine qua non" of the application, since both these matters are with the same Court. The starting point of limitation for the application being the date when the sale becomes absolute i e. the date on which title passed, the evidence of title, in the form of sale certificate, due from the Court, could always be supplied later to the Court to satisfy the requirements of Order 21 Rule 95.

Procedural History

Plaintiff Pattam Rasool filed suit for partition and separate possession of a residential house in Nellore, Andhra Pradesh, claiming one-sixth share. Trial court passed preliminary decree on 7.1.1977. On application, Advocate Commissioner was appointed for partition; Commissioner reported property was not partible and recommended sale. Public auction was conducted and sale knocked down in favour of first respondent Pattam Sardar Khan at Rs.17,000; no objections were raised. Court confirmed sale on 7.8.1984. Sale certificate was issued on 9.11.1989. On 9.11.1989, auction purchaser first respondent filed application under Order 21 Rule 95 read with Section 151 CPC for delivery of possession. Appellant objected that application was barred by limitation under Article 134 of Limitation Act, 1963. Executing court (District Munsif, Nellore) on 14.12.1990 sustained objection and dismissed application. First respondent filed revision in High Court of Andhra Pradesh; High Court allowed revision on 29.11.1993, holding limitation starts from date of issuance of sale certificate. Appellant filed appeal by special leave in Supreme Court, which allowed the appeal and restored executing court order.

Acts & Sections

  • Code of Civil Procedure, 1908: Order 21 Rules 89, 90, 92, 94, 95; Section 65; Section 151; Order 43 Rule 1
  • Limitation Act, 1963: Article 134
  • Indian Limitation Act, 1908: Article 180
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