Case Note & Summary
The dispute arose regarding the starting point of limitation for filing an application under Rule 95 of Order XXI of the Code of Civil Procedure, 1908 (CPC). The appellants, Bhasker and another, contested the High Court's ruling that the limitation period began from the date the sale certificate was issued, rather than the date the sale was confirmed. The property in question was sold in execution of a decree against the appellants, with the sale confirmed on 16th July 2009 and the sale certificate issued on 5th February 2010. The respondent filed an application under Rule 95 on 27th July 2010, which the Executing Court allowed. The appellants sought a review of this order, which was dismissed, leading to a revision application in the High Court that was ultimately dismissed. The High Court's decision relied on the precedent set in United Finance Corporation v. M.S.M. Haneefa, which the appellants argued was misapplied. The appellants contended that Article 134 of the Limitation Act, which provides a one-year limitation period from when the sale becomes absolute, should apply, asserting that the application was filed after the one-year period. The respondent argued for the application of Article 137, which allows three years for filing. The Supreme Court analyzed the relevant provisions of the CPC and the Limitation Act, noting the procedural delays in issuing sale certificates and the implications for limitation periods. The court expressed doubts about the High Court's interpretation and indicated that the issue of whether a sale certificate is necessary for filing an application under Rule 95 requires reconsideration by a larger bench. The court directed that the appeal be placed before the Chief Justice for appropriate administrative action.
Headnote
A) Limitation Law - Starting Point of Limitation - Limitation for Application under Rule 95 of Order XXI - Code of Civil Procedure, 1908, Order XXI, Rule 95 - The court held that the starting point of limitation for making an application under Rule 95 is the date on which the sale becomes absolute, not the date of issuance of the sale certificate. This interpretation aligns with Article 134 of the Limitation Act, 1963, which specifies that limitation begins when the sale becomes absolute (Paras 8-10).
Issue of Consideration
What is the starting point of limitation for filing an application under Rule 95 of Order XXI of the Code of Civil Procedure, 1908?
Final Decision
The Supreme Court directed that the appeal be placed before the Chief Justice for administrative decision on whether to refer the issue of limitation under Rule 95 of CPC to a larger bench.
Law Points
- Limitation period
- starting point of limitation
- execution of decree
- auction sale
- sale certificate
