{"id":10254,"date":"2008-04-02T00:00:00","date_gmt":"2008-04-01T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-mahakal-automobiles-anr-vs-kishan-swaroop-sharma-on-2-april-2008"},"modified":"2016-06-02T01:52:27","modified_gmt":"2016-06-01T20:22:27","slug":"ms-mahakal-automobiles-anr-vs-kishan-swaroop-sharma-on-2-april-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-mahakal-automobiles-anr-vs-kishan-swaroop-sharma-on-2-april-2008","title":{"rendered":"M\/S. Mahakal Automobiles &amp; Anr vs Kishan Swaroop Sharma on 2 April, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">M\/S. Mahakal Automobiles &amp; Anr vs Kishan Swaroop Sharma on 2 April, 2008<\/div>\n<div class=\"doc_author\">Author: . A Pasayat<\/div>\n<div class=\"doc_bench\">Bench: Dr. Arijit Pasayat, S.H. Kapadia<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  2598 of 2005\n\nPETITIONER:\nM\/s. Mahakal Automobiles &amp; Anr\n\nRESPONDENT:\nKishan Swaroop Sharma\n\nDATE OF JUDGMENT: 02\/04\/2008\n\nBENCH:\nDr. ARIJIT PASAYAT &amp; S.H. KAPADIA\n\nJUDGMENT:\n<\/pre>\n<p>J U D G M E N T<br \/>\nREPORTABLE<\/p>\n<p>CIVIL APPEAL NO. 2598 OF 2005<\/p>\n<p>Dr. ARIJIT PASAYAT, J.\n<\/p>\n<p>1.\tChallenge in this appeal is to the judgment of learned<br \/>\nSingle Judge of the Madhya Pradesh High Court, Indore<br \/>\nBench.\n<\/p>\n<p>2.\tBackground facts in a nutshell are as follows:\n<\/p>\n<p>Respondent had sold 7200 sq.ft. land with some<br \/>\nconstruction on 15\/11\/1986 for Rs.7.20 lacs to the<br \/>\nJDs\/appellants and was paid only Rs.1.60 lacs. He had<br \/>\nagreed to accept the remaining amount of Rs.5.60 lacs in 4<br \/>\ninstallments in 3 years with interest @ 1.50% per month. A<br \/>\ncharge was created on this property. Respondent had later<br \/>\nfiled a Civil Suit No. 13-A\/89 (New No. 6-A\/1991) for recovery<br \/>\nof amount of Rs.6,31,750\/- by sale of such property.\n<\/p>\n<p>JDs\/appellants in their written statements had admitted<br \/>\nliability to pay Rs.5 lacs as principal and Rs.65,000\/- as<br \/>\ninterest and pendentelite interest @ 1% per month. They<br \/>\ndisputed that Babulal was the partner of M\/s Mahakal<br \/>\nAutomobiles. Thus, the ADJ on 24\/9\/1 991 gave a judgment<br \/>\nand decree under Order XII Rule 6 of the Code, relevant<br \/>\nportion of which reads follows:\n<\/p>\n<p>&#8220;As a result application of plaintiff is partly<br \/>\nallowed and it is hereby ordered that<br \/>\ndefendants Nos. I and 3 shall pay within 6<br \/>\nmonths from today Rs.5,65,00\/- and interest<br \/>\n@1% per month on Rs.5 lacs from the date of<br \/>\ninstitution of suit i.e. 16\/6\/1989, otherwise<br \/>\nthe plaintiff would be entitled to get a final<br \/>\ndecree for recovery of his amount by sale of<br \/>\ncharged property. Order as to cost would be<br \/>\ngiven at the time of disposal of other points. A<br \/>\npreliminary decree be framed accordingly.<br \/>\nDescription of charged property be also given<br \/>\nin preliminary decree.&#8221;\n<\/p>\n<p>A preliminary decree was accordingly drawn up.<br \/>\nHowever, it was not drawn in prescribed form No.5-A or 7-C of<br \/>\nSchedule of Appendix-D to the Code of Civil Procedure, 1908<br \/>\n(in short &#8216;the Code&#8217;). Admittedly, no accounts were to be<br \/>\ntaken. Simple arithmetical calculation of interest would have<br \/>\nspecified the actual amount payable.\n<\/p>\n<p>On 28\/4\/1992 respondent filed an application for<br \/>\nexecution. Notices to all JDs\/appellants under Order XXI Rule<br \/>\n22 of the Code were issued. On 8\/6\/1992, JDs\/2 appeared<br \/>\nthrough Shri L.P. Bhargava, Advocate while JD\/1 appeared<br \/>\nthrough Shri P.K. Modi, advocate. All JDs continued to appear<br \/>\nregularly till 16\/11\/1993. In the meantime two applications;<br \/>\none under Order XXI Rule 58 read with Section 151 of the<br \/>\nCode was filed on 8\/6\/1 992 and the second under order XXI<br \/>\nrule 50 read with Section 151 of the Code was filed on<br \/>\n2\/11\/1992 by the JDs which were disposed of on<br \/>\n16\/12\/1992 and 2\/11\/1992 respectively. No question as to<br \/>\nnon-executability of the decree had been raised by the JDs<br \/>\naccording to the High Court.\n<\/p>\n<p>On 16\/10\/1992 the court below directed that name of<br \/>\nBabulal Gupta be deleted from the execution application as<br \/>\nthere had been no decree against him. A question was also<br \/>\nraised suo motu by the court whether the decree in its terms<br \/>\nbeing preliminary decree could be executed as it is, or the DH-<br \/>\nrespondent be directed to obtain a final decree. The executing<br \/>\ncourt granted several adjournments for arguments on this<br \/>\nquestion. On 12\/2\/1993 the executing court stayed the<br \/>\nproceedings of the execution to await the result of proceedings<br \/>\nunder Order I Rule 10 and Section 151 of the Code before the<br \/>\ntrial court in the original case which was also pending in the<br \/>\nsame court. On 8\/3\/1994 order of the High Court was<br \/>\nreceived in the original case and the execution proceedings<br \/>\nwere ordered to be restarted.  The execution proceedings as<br \/>\nwell as the civil suit were transferred from court to court and<br \/>\nnone appeared for the JDs in the execution case, till<br \/>\n14\/7\/1997.\n<\/p>\n<p>The High Court by the impugned order set aside the<br \/>\norder of the trial court holding that the I.As. filed by the<br \/>\njudgment debtors, respondents in the appeal, before High<br \/>\nCourt were to be dismissed. Auction sale in favour of the<br \/>\nrespondent-DH was valid and order of its confirmation was<br \/>\nupheld.\n<\/p>\n<p>3.\tIn support of the appeal learned counsel for the<br \/>\nappellant submitted as follows:\n<\/p>\n<p>(i)\tRecords reveal that no Process Fee was paid by the<br \/>\nDecree Holder as per Order dated 4.10.1997.\n<\/p>\n<p>(ii)\tAttachment of Warrant was not as per Order 21 Rule 54<br \/>\n(1A) CPC.\n<\/p>\n<p>(iii) No Notice was given to the appellants when execution<br \/>\nproceedings got delinked from the suit and got transferred<br \/>\nfrom one court to another.\n<\/p>\n<p>(iv)\tAttachment proceedings were carried out in the absence<br \/>\nof the Judgment Debtor.\n<\/p>\n<p>(v)\tNo notice was given to the appellant under Order 21<br \/>\nRules 54 and 66(2). The procedure under Order 21 Rule 54<br \/>\n(1A) and 66(2) is mandatory. Hence, the objections taken by<br \/>\nway of IA Nos. 1, 2 and 6 should have been accepted\n<\/p>\n<p>(vi) The Court found total absence of drawing up of the<br \/>\nproclamation of sale and its terms by judicial application of<br \/>\nmind.\n<\/p>\n<p>(vii) It was held that the executing court did not follow the<br \/>\nmandatory procedure as provided under the Code.\n<\/p>\n<p>4.\tIt was submitted that the High Court by the impugned<br \/>\norder erroneously reversed the judgment on the ground that<br \/>\nthe appellant could be presumed to have known of the<br \/>\nproceeding and it is not a case of complete non issue of service<br \/>\nof attachment of warrant and that ratio of the decision in<br \/>\nDeshbandhu Gupta v. N.L. Anand @ Rajinder Singh [1994(1)<br \/>\nSCC 131] does not apply.\n<\/p>\n<p>5.\tLearned counsel for the respondent on the other hand<br \/>\nsubmitted that the High Court has analysed the factual<br \/>\nposition in the background of legal position as set out by this<br \/>\ncourt.\n<\/p>\n<p>6.\tWhen a property is put up for auction to satisfy a decree<br \/>\nof the Court, it is mandatory for the Court executing the<br \/>\nDecree, to comply with the following stages before a property<br \/>\nis sold in execution of a particular decree:\n<\/p>\n<p>(a) \tAttachment of the Immoveable Property:\n<\/p>\n<p>(b)\tProclamation of Sale by Public Auction;\n<\/p>\n<p>(c)\tSale by Public Auction<\/p>\n<p>7.\tEach stage of the sale is governed by the provisions of<br \/>\nthe Code. For the purposes of the present case, the relevant<br \/>\nprovisions are Order 21 Rule 54 and Order 21 Rule 66. At<br \/>\neach stage of the execution of the decree, when a property is<br \/>\nsold, it is mandatory that notice shall be served upon the<br \/>\nperson whose property is being sold in execution of the decree,<br \/>\nand any property which is sold, without notice to the person<br \/>\nwhose property is being sold is a nullity, and all actions<br \/>\npursuant thereto are liable to be struck down\/quashed.\n<\/p>\n<p>8.\tThe admitted position that has emerged is that:\n<\/p>\n<p>(i)\tThere was no notice served upon the Judgment-Debtor<br \/>\nunder Order 21 Rule 54 (1-A).\n<\/p>\n<p>(ii)\tThere was no valuation of the property carried out;\n<\/p>\n<p>(iii)\tThere was no proclamation of sale as per the statutory<br \/>\nprovisions of the M.P. Civil Court Rules, 1961 read with Order<br \/>\n21 Rule 66.\n<\/p>\n<p>(iv)\tThere was no publication of the sale.\n<\/p>\n<p>9.\tIn Deshbandhu Gupta&#8217;s case (supra) it was held as<br \/>\nfollows:\n<\/p>\n<p>&#8220;The Proclamation should include the<br \/>\nestimate, if any, given by either judgment-<br \/>\ndebtor or decree holder or both the parties.<br \/>\nService of Notice on judgment-debtor under<br \/>\nOrder 21 Rule 66 (2) unless waive by<br \/>\nappellants or remained ex-parte, is a<br \/>\nfundamental step in the procedure of the<br \/>\nCourt in execution, judgment-debtor should<br \/>\nhave an opportunity to give his estimate of the<br \/>\nproperty. The estimate of the value of the<br \/>\nproperty is a material fact to enable the<br \/>\npurchaser to know its value. It must be verify<br \/>\nas accurately and fairly as possible so that<br \/>\nthe intending bidders are not mislead or to<br \/>\nprevent them from offering inadequate price<br \/>\nor to enable them to make a decision in<br \/>\noffering adequate price. In Gajadhar Prasad<br \/>\nVs. Babu Bhakta Ratan, this Court after<br \/>\nnoticing the conflict of judicial opinion among<br \/>\nthe High Courts, said that a review of the<br \/>\nauthorities as well as amendments to Rule 66<br \/>\n(2) (e) make it abundantly clear that the<br \/>\nCourt, when stating the estimated value of the<br \/>\nproperty to be sold, must not accept the ipse<br \/>\ndixit of one side. It is certainly not necessary<br \/>\nfor it to state its own estimate<\/p>\n<p>But, the essential facts which had a<br \/>\nbearing on the very material question of value<br \/>\nof the property and which could assist the<br \/>\npurchaser in forming his own opinion must<br \/>\nbe stated, i.e. the value of the property, that<br \/>\nis, after all, the whole object of Order XXI,<br \/>\nRule 66 (2) (e) CPC. The Court has only to<br \/>\ndecide what are allthese material particular in<br \/>\neach case. We think that this is an obligation<br \/>\nimposed by Rule 66 (2) (e). In discharging it,<br \/>\nthe Court normally state the valuation given<br \/>\nby both the Decree Holder as well as the<br \/>\nJudgment Debtor where they both have<br \/>\nvalued the property, and it does not appear<br \/>\nfantastic.&#8221;\n<\/p>\n<p>&#8220;The absence of Notice causes<br \/>\nirremediable injury to the judgment debtor.<br \/>\nEqually publication of the proclamation of<br \/>\nsale under Rule 67 and specifying the date<br \/>\nand place of sale of the property under Rule<br \/>\n66 (2) are intended so that the prospective<br \/>\nbidders would know the value so as to make<br \/>\nup their mind to offer the price and to attempt<br \/>\nthat sale of the property and to secure<br \/>\ncompetitive bidders and fair price to the<br \/>\nproperty sold. Absence of Not to the<br \/>\nJudgment Debtor disables him to offer his<br \/>\nestimate of the value who better know its<br \/>\nvalue and to publicise on his part, canvassing<br \/>\nand bringing the intended bidders at the time<br \/>\nof sale. Absence of notice prevents him to do<br \/>\nthe above and also disables him to know<br \/>\nfraud committed in the publication and<br \/>\nconduct of sale or other material irregularities<br \/>\nin the conduct of sale. It would be broached<br \/>\nfrom yet another angle. The compulsory sale<br \/>\nof immovable property under Order 21 divests<br \/>\nright, title and interest of the judgment debtor<br \/>\nand confers those rights, in favour of the<br \/>\npurchaser. It thereby deals with the rights<br \/>\nand disabilities either of the judgment debtor<br \/>\nor the decree holder. A sale made, therefore,<br \/>\nwithout notice to the judgment debtor is a<br \/>\nnullity since it divests the judgment debtor of<br \/>\nhis right, title and interest in his property<br \/>\nwithout an opportunity. The jurisdiction to<br \/>\nsell the property would arise in a Court only<br \/>\nwhere the owner is given notice of the<br \/>\nexecution for attachment and sale of his<br \/>\nproperty. It is very salutary that a person&#8217;s<br \/>\nproperty cannot be sold without his being told<br \/>\nthat it is being so sold and given an<br \/>\nopportunity to offer his estimate as he is the<br \/>\nperson who intimately knew the value of his<br \/>\nproperty and prevailing in the locality,<br \/>\nexaggeration at time be possible.&#8221;\n<\/p>\n<p>10.\t<a href=\"\/doc\/255161\/\">In M\/s. Shalimar Cinema v. Bhasin Film Corporation<br \/>\nand Another<\/a> [1987(4) SCC 717] it was held that the court has<br \/>\na duty to ensure that the requirement of order 21 Rule 66 has<br \/>\nproperly applied.  It is incumbent on the court to be<br \/>\nscrupulous in the extreme.\n<\/p>\n<p>11.\tThe records do not reveal that the appellant-judgment<br \/>\ndebtor was served with a notice as required under Order 21<br \/>\nRule 54(1)(A)  of the Code in the appendix B Forms 23, 24 and\n<\/p>\n<p>29.  It  is to be noted that the records reveal that the address<br \/>\nof the appellant as contained in the sale deed was different<br \/>\nfrom the address at which the process server purportedly<br \/>\naffixed the notice on the door and in open court and at the<br \/>\nchorah only.  It has also to be noted that under Order 21 Rule<br \/>\n66(2) the service of the notice has to be personally affected on<br \/>\nthe judgment debtor. That also does not appear to have been<br \/>\ndone. Interestingly, the valuation of the property as required<br \/>\nto be done under the proviso to sub-rule (2) of Rule 66 of<br \/>\nOrder 21 of the Code has not been done.  The same appears to<br \/>\nhave been valued on the spot at Rs.9,00,000\/- and it was not<br \/>\ndone by the Court. There are admittedly other non-compliance<br \/>\nwith certain requirements. We do not think it necessary to<br \/>\ndeal with those aspects in detail in view of the order proposed<br \/>\nto be passed. From the records it is revealed that<br \/>\nRs.14,38,893\/- and Rs.4,46,926\/- have been deposited by the<br \/>\nappellant purportedly for satisfaction of the Execution Court<br \/>\nUjjain and Indore respectively. The appellant shall further<br \/>\ndeposit a sum of Rs.15,00,000\/- within 4 months from today.<br \/>\nThe respondent No.1 shall be entitled to withdraw the amount<br \/>\ndeposited in the bank with accrued interest. The appellant<br \/>\nshall be responsible for payment of the property tax of the<br \/>\nproperty from the date of execution of sale deed i.e. 5.12.1986<br \/>\ntill date and the same shall be paid deposited with the<br \/>\nconcerned authority within the aforesaid period of four<br \/>\nmonths.  On payment of the amounts, the title to the property<br \/>\ndescribed in the registered sale deed will vest free of all<br \/>\nencumbrances on the appellant.\n<\/p>\n<p>12.\tIf any property of the respondent No.1 is there in the<br \/>\nproperty in question, the same shall vest to respondent No.1<br \/>\nwith liberty to remove them as soon as the payment is made.\n<\/p>\n<p>13.\tThe appeal is disposed of accordingly.  No costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India M\/S. Mahakal Automobiles &amp; Anr vs Kishan Swaroop Sharma on 2 April, 2008 Author: . A Pasayat Bench: Dr. Arijit Pasayat, S.H. Kapadia CASE NO.: Appeal (civil) 2598 of 2005 PETITIONER: M\/s. Mahakal Automobiles &amp; Anr RESPONDENT: Kishan Swaroop Sharma DATE OF JUDGMENT: 02\/04\/2008 BENCH: Dr. ARIJIT PASAYAT &amp; S.H. KAPADIA [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-10254","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M\/S. 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