Case Note & Summary
The petitioner, Smt Keeramma, was the judgment debtor in an execution proceeding arising from a money decree obtained by the Life Insurance Corporation of India (LIC) for Rs. 42,634/- with future interest. The suit was decreed, and in Execution Petition 24/2005, the decree holder sought execution. The judgment debtor's property was attached and sold in auction to the second respondent, a third party auction purchaser. The auction purchaser deposited 25% of the bid amount (Rs. 75,125/-) at the time of sale but failed to deposit the remaining 75% within 15 days as required under Order 21 Rules 84 and 85 of the Code of Civil Procedure, 1908 (CPC). The judgment debtor filed an application under Order 21 Rule 89 read with Section 151 CPC to set aside the sale, depositing the decretal amount of Rs. 1,17,603/- by demand draft on 15.4.2010. The execution court rejected the application. The High Court considered the mandatory nature of Rules 84 and 85, noting that the auction purchaser deposited the remaining amount nearly one year later, which was not permissible. The court relied on precedents including Rosali V Vs M/s Nellai Small Match Producers Service Industrial Co-op. Society Ltd & Ors (AIR 1999 KAR 167) and Manilal Mohanlal Shah Vs Sardar Sayed Ahmed Sayed Mahmad (AIR 1954 SC 349) to hold that non-compliance with the mandatory deposit requirements renders the sale null and void. The court allowed the writ petition, quashed the order of the execution court, and directed the execution court to consider the judgment debtor's application afresh in accordance with law.
Headnote
A) Civil Procedure Code - Execution of Decrees - Auction Sale - Order 21 Rules 84 and 85 CPC - Mandatory Deposit Requirements - The court held that the provisions of Order 21 Rules 84 and 85 CPC are mandatory and non-compliance renders the auction sale null and void. The auction purchaser must deposit 25% of the bid amount immediately and the remaining 75% within 15 days from the date of sale. The court cannot extend this time. (Paras 3-5) B) Civil Procedure Code - Execution of Decrees - Setting Aside Sale - Order 21 Rule 89 CPC - Judgment Debtor's Right - The judgment debtor has the right to apply to set aside the sale under Order 21 Rule 89 CPC by depositing the decretal amount. The court allowed the petition and set aside the sale, directing the execution court to consider the judgment debtor's application afresh. (Paras 2-5)
Issue of Consideration
Whether the auction sale is valid when the auction purchaser failed to deposit the remaining 75% of the bid amount within 15 days as required under Order 21 Rules 84 and 85 CPC
Final Decision
The High Court allowed the writ petition, quashed the order dated 14.9.2012 passed by the Civil Judge (Jr. Dvn.), Challakere on IA 8 in Ex. Petn. 24/2005, and directed the execution court to consider the judgment debtor's application afresh in accordance with law.
Law Points
- Order 21 Rules 84 and 85 CPC are mandatory
- non-compliance renders auction sale null and void
- auction purchaser must deposit full bid amount within 15 days
- court cannot extend time for deposit
