Case Note & Summary
The petitioner, Sri S.R. Venkatesh Babu, was the auction purchaser of a portion of the subject property in Execution Petition No.2420/2002 pending before the XIX Addl. City Civil Judge, Bangalore. He filed a writ petition under Article 227 of the Constitution of India challenging the order dated 02.03.2016 passed by the trial court on an IA filed by him under Section 151 CPC. The IA sought a direction to the trial court office to pay him a sum of Rs.22,52,250/- towards interest on a fixed deposit of Rs.77,00,000/- made by the judgment debtor from 21.04.2009 to 31.07.2012. The trial court rejected the IA, holding that the interest on the fixed deposit accrues to the decree holder, not the auction purchaser. The High Court, after hearing the petitioner's counsel, dismissed the writ petition, affirming the trial court's order. The court reasoned that the fixed deposit was made by the judgment debtor to secure the decree amount and the interest thereon naturally belongs to the decree holder. The auction purchaser's rights are limited to the sale certificate and delivery of possession, and Section 151 CPC cannot be used to claim interest not provided by law. The court found no error or illegality in the impugned order warranting interference under Article 227.
Headnote
A) Civil Procedure - Execution Proceedings - Interest on Fixed Deposit - Section 151 CPC - Auction purchaser sought interest on fixed deposit made by judgment debtor, claiming it as part of sale proceeds - Court held that interest on fixed deposit accrues to the decree holder, not the auction purchaser, as the deposit was made to secure the decree amount - Held that Section 151 CPC cannot be invoked to grant interest not provided by law (Paras 1-5).
Issue of Consideration
Whether the auction purchaser is entitled to interest on the fixed deposit made by the judgment debtor during the pendency of execution proceedings.
Final Decision
The High Court dismissed the writ petition, affirming the trial court's order dated 02.03.2016. No order as to costs.
Law Points
- Interest on fixed deposit accrues to decree holder
- not auction purchaser
- Section 151 CPC cannot be used to claim interest not provided by law
- Auction purchaser's right limited to sale certificate and delivery of possession.
Case Details
2019 LawText (KAR) (10) 30
Writ Petition No.7901 of 2017 (GM-CPC)
Abhinay Y.T for petitioner; R. Subramanya, AAG with M. Jyothi Bhat, HCGP for respondent 1
Registrar, City Civil Court, Bangalore; Smt. Gita Subramanian; M/s Fine Homes Developers; Manohar Karkal; Sanjeev Nedungadi; M.V. Rajarathnam; M.V. Srinivasan; Rajeeva Nendungadi
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Nature of Litigation
Writ petition under Article 227 of the Constitution of India challenging an order passed on an IA under Section 151 CPC in execution proceedings.
Remedy Sought
Quashing of order dated 02.03.2016 and direction to trial court office to pay Rs.22,52,250/- towards interest on fixed deposit.
Filing Reason
The trial court rejected the petitioner's IA seeking payment of interest on a fixed deposit made by the judgment debtor.
Previous Decisions
The trial court (XIX Addl. City Civil Judge, Bangalore) rejected the IA on 02.03.2016.
Issues
Whether the auction purchaser is entitled to interest on the fixed deposit made by the judgment debtor during the pendency of execution proceedings.
Submissions/Arguments
Petitioner argued that he is entitled to interest on the fixed deposit as part of the sale proceeds.
Ratio Decidendi
Interest on a fixed deposit made by the judgment debtor in execution proceedings accrues to the decree holder, not the auction purchaser. Section 151 CPC cannot be used to grant interest not provided by law. The auction purchaser's rights are limited to the sale certificate and delivery of possession.
Judgment Excerpts
Petitioner being the auction purchaser of a portion of the subject property in Execution Petition No.2420/2002, is knocking at the doors of writ court for assailing the order dated 02.03.2016...
The trial court has rejected the IA on the ground that the interest on the fixed deposit accrues to the decree holder and not to the auction purchaser.
Procedural History
The petitioner filed an IA under Section 151 CPC in Execution Petition No.2420/2002 before the XIX Addl. City Civil Judge, Bangalore, seeking payment of interest on a fixed deposit. The trial court rejected the IA on 02.03.2016. The petitioner then filed the present writ petition under Article 227 of the Constitution of India.
Acts & Sections
- Code of Civil Procedure, 1908 (CPC): 151
- Constitution of India: 227
