Bombay High Court Dismisses Revision Against Rejection of Application to Dismiss Misc. Civil Application in Execution Proceedings. Court holds that a third party purchaser cannot challenge a decree for specific performance without impleading himself in the suit, and the remedy lies in filing a separate suit for declaration of title.

High Court: Bombay High Court Bench: NAGPUR
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Case Note & Summary

The revision application was filed by Rajkumar Singh challenging the order dated 30.8.2016 passed by the District Judge-13, Nagpur, rejecting his application (Exh.32) filed in Miscellaneous Civil Application No. 281/12. The applicant sought dismissal of the execution application on the ground that he had purchased the suit property from the original owner (respondent no.2) after the decree for specific performance was passed. The background facts are that respondent no.2 was the owner of land bearing survey no.26, area 1.94 H.R., situated at Mouza Hardoli, Tah. Kalmeshwar, District Nagpur. By an agreement of sale dated 20.7.1998, respondent no.2 agreed to sell the land to the applicant (Rajkumar Singh). However, respondent no.2 avoided executing the sale deed, leading the applicant to file Spl. Civil Suit No. 376/2000 for specific performance and possession. Respondent no.2 appeared and filed a written statement admitting the agreement but claiming it was a security for a loan. The suit was contested and decreed in favour of the applicant on 31.7.2007. The decree was not challenged and attained finality. In execution proceedings (Special Darkhast No. 251/2008), a sale deed was executed through court on 24.6.2010, and possession was delivered to the applicant on 20.4.2012. Subsequently, respondent no.1 (Madhukar Barwad) filed Miscellaneous Civil Application No. 281/12 claiming to have purchased the suit land from respondent no.2 on 2.5.2012, after the decree and execution. The applicant filed an application (Exh.32) seeking dismissal of that misc. application. The District Judge rejected Exh.32, holding that the misc. application was maintainable. In revision, the High Court held that a third party purchaser who was not a party to the suit cannot challenge the decree in execution proceedings. The proper remedy is to file a separate suit for declaration of title. The executing court cannot go behind the decree. The revision was dismissed, and the District Judge was directed to decide the misc. application on merits in accordance with law.

Headnote

A) Civil Procedure Code - Execution Proceedings - Third Party Rights - Order 21 Rule 97, Section 47 CPC - A third party purchaser of property, who was not a party to the suit for specific performance, cannot challenge the decree in execution proceedings by filing an application for dismissal of the execution application. The proper remedy is to file a separate suit for declaration of title and possession. The executing court cannot go behind the decree. (Paras 6-10)

B) Specific Performance - Decree - Binding Nature - Third Party Purchaser - A decree for specific performance of an agreement of sale is binding on the judgment-debtor and his successors-in-interest. A purchaser pendente lite is bound by the decree under the doctrine of lis pendens. The executing court cannot entertain objections from a third party who was not impleaded in the suit. (Paras 6-10)

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Issue of Consideration

Whether a third party purchaser of property, who was not a party to the suit for specific performance, can seek dismissal of the execution application on the ground that the decree is not binding on him, without filing a separate suit for declaration of title.

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Final Decision

The revision application is dismissed. The order dated 30.8.2016 passed by the District Judge-13, Nagpur, rejecting Exh.32, is upheld. The District Judge is directed to decide Miscellaneous Civil Application No. 281/12 on its own merits in accordance with law, without being influenced by any observations made in this order.

Law Points

  • Third party purchaser cannot challenge decree for specific performance without impleading in suit
  • Remedy lies in separate suit for declaration of title
  • Order 21 Rule 97 CPC
  • Section 47 CPC
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Case Details

2017 LawText (BOM) (07) 172

Civil Revision Application No. 78 of 2016

2017-07-25

Dr. (Smt.) Shalini Phansalkar-Joshi, J.

Shri G. M. Shitut for Appellant, Shri M. B. Agasti for Respondent no. 1

Rajkumar Singh s/o Ramlakhan Singh

Madhukar s/o Akhaduji Barwad and Gunderao s/o Daulatrao Wankhede

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Nature of Litigation

Civil Revision Application challenging order rejecting application for dismissal of Miscellaneous Civil Application in execution proceedings.

Remedy Sought

Appellant sought dismissal of Miscellaneous Civil Application No. 281/12 filed by respondent no.1 claiming purchase of suit property after decree.

Filing Reason

Appellant contended that respondent no.1, being a third party purchaser after decree, cannot challenge the decree in execution proceedings.

Previous Decisions

Suit for specific performance decreed on 31.7.2007, not challenged. Execution proceedings resulted in court sale deed on 24.6.2010 and possession on 20.4.2012. District Judge rejected appellant's application (Exh.32) on 30.8.2016.

Issues

Whether a third party purchaser of property, who was not a party to the suit for specific performance, can seek dismissal of the execution application on the ground that the decree is not binding on him, without filing a separate suit for declaration of title.

Submissions/Arguments

Appellant argued that respondent no.1 purchased the property after the decree and execution, and thus cannot challenge the decree in execution proceedings; the proper remedy is a separate suit. Respondent no.1 argued that he is a bona fide purchaser and the decree is not binding on him as he was not a party to the suit.

Ratio Decidendi

A third party purchaser who was not a party to the suit for specific performance cannot challenge the decree in execution proceedings. The executing court cannot go behind the decree. The proper remedy for such a purchaser is to file a separate suit for declaration of title and possession. The doctrine of lis pendens applies, and a purchaser pendente lite is bound by the decree.

Judgment Excerpts

The executing Court cannot go behind the decree. The decree is binding on the judgment debtor and his successors-in-interest. If the third party purchaser wants to challenge the decree, he has to file a separate suit for declaration of his title and possession. The application filed by the appellant for dismissal of the Miscellaneous Civil Application was rightly rejected by the learned District Judge.

Procedural History

Suit for specific performance filed in 2000, decreed on 31.7.2007. Execution filed in 2008, court sale deed executed on 24.6.2010, possession delivered on 20.4.2012. Respondent no.1 filed Misc. Civil Application No. 281/12 in 2012. Appellant filed application (Exh.32) for dismissal of that misc. application, which was rejected on 30.8.2016. Revision filed on 2016.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Order 21 Rule 97, Section 47
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