{"id":232895,"date":"2010-07-09T00:00:00","date_gmt":"2010-07-08T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/ms-acme-papers-ltd-vs-m-p-financial-corp-anr-on-9-july-2010"},"modified":"2016-12-11T19:55:34","modified_gmt":"2016-12-11T14:25:34","slug":"ms-acme-papers-ltd-vs-m-p-financial-corp-anr-on-9-july-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/ms-acme-papers-ltd-vs-m-p-financial-corp-anr-on-9-july-2010","title":{"rendered":"M\/S Acme Papers Ltd. vs M.P.Financial Corp. &amp; Anr on 9 July, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Madhya Pradesh High Court<\/div>\n<div class=\"doc_title\">M\/S Acme Papers Ltd. vs M.P.Financial Corp. &amp; Anr on 9 July, 2010<\/div>\n<pre>                                                                   M.A.\u00a0No.\u00a02398\/2003\n                                            -1-\n\n\n HIGH COURT OF MADHYA PRADESH JABALPUR\n\n                 SB: Hon'ble Mr. Justice R.K. Gupta\n\n\n                               M.A. No. 2398\/2003\n\nM\/s ACME Papers Limited                                 :               APPELLANT\n\n                                         -Versus-\nM.P. Financial Corporation                              :           RESPONDENTS\nand another\n\n---------------------------------------------------------------------------------------------\nFor the Appellant                     : Mr. Rajesh Pancholi, Advocate\nFor the Respondent No.1 : None present\nFor the Respondent No.2 : Mr. Ravish Agrawal, Sr. Advocate\n                                         with Mr. K.S. Jha, Advocate\n---------------------------------------------------------------------------------------------\n\n                                  O R D E R\n<\/pre>\n<p>                                   (09\/07\/2010)<\/p>\n<p>        In this appeal preferred under Order 43 Rule (1)(j) of the<br \/>\nCode of Civil Procedure, 1908 the appellant has challenged the<br \/>\norder dated 29.10.2003 passed by the learned District Judge,<br \/>\nSehore in MJC No. 16\/1985 whereby the application of the<br \/>\nappellant under Order 21 Rule 90 read with Section 151 of the<br \/>\nCPC has been dismissed.\n<\/p>\n<p>2.      The facts leading to the present appeal are that the first<br \/>\nrespondent, namely, M.P. Financial Corporation filed a Misc.<br \/>\nJudicial Case No. 26\/1982 under Section 31 of the State Financial<br \/>\nCorporation Act, 1951 against the appellant for sale of the<br \/>\nmortgaged property. The said application was opposed by the<br \/>\nappellant by filing reply as contained in Annexure A-2, however, a<br \/>\ndirection      was      issued      on    12.11.1984         for    disposal       of   the<br \/>\nhypothecated property under Section 32(7) of the said Act.<br \/>\nThereafter, the respondent No.1 also sought for publication of<br \/>\nnotices of auction for disposal of the property under Section 32(8)<br \/>\nof the Act. Yet another application was moved on behalf of the<br \/>\nrespondent No.1 for sale proclamation under Order 21 Rule 66 of<br \/>\n                                                  M.A.\u00a0No.\u00a02398\/2003<br \/>\n<span class=\"hidden_text\">                                   -2-<\/span><\/p>\n<p>the CPC for land ad-measuring 62.2 Acres situated at Karbala in<br \/>\nDist. Sehore including pants &amp; machinery and building. The<br \/>\nauction proceedings held on 19.9.1988, 20.9.1988 and 21.9.1988<br \/>\ndid not materialize the sale of the aforesaid property, therefore,<br \/>\nthe court below was of the view that further auction would be<br \/>\nimproper. However, vide order dated 22.9.1988 contained in<br \/>\nAnnexure A-5 the respondent No.1 was directed to file separate<br \/>\napplication for private sale and participation in the auction to offer<br \/>\nbid. Thereafter, a Commissioner was appointed to furnish report<br \/>\nas regards the property in dispute after spot-inspection. The<br \/>\nCommissioner submitted its report on 16.8.1993. Thereafter, it is<br \/>\nstated that a bid for a sum of Rs.80,25,000\/- was received from<br \/>\none Shri Ramgopal on 18.8.1993. Thereupon, a report was called<br \/>\nfrom the District Registrar, Sehore with regard to the market<br \/>\nvalue of the aforesaid 62.2 acres of land wherein the market value<br \/>\nof the property was assessed at Rs.2. Lac per acres. The Court<br \/>\nbelow vide its order dated 26.8.1993 adjourned the auction<br \/>\nproceedings on the found that the highest bidder of the property,<br \/>\nnamely, Shri Ramgopal did not appear to be bona fide purchaser<br \/>\nand accordingly fresh advertisement was directed to be published<br \/>\nin the daily newspapers of Indore and Bhopal.\n<\/p>\n<p>3.    The respondent No.1, M.P.F.C., has not denied the objection<br \/>\nraised   by   the   appellant   before   the Court below    that the<br \/>\nconfirmation of the sale was stayed by the Delhi High Court vide<br \/>\norder dated 5.7.1993. Submission of the appellant is that despite<br \/>\nthere being orders of stay on the confirmation of sale, the auction<br \/>\nproceedings were allowed to be continued by the Court below on<br \/>\n18.11.1997 to 22.11.1997 and bid was closed in favour of one Shri<br \/>\nShankarlal Laddha for a sum of Rs.48,52,001\/-. An objection as<br \/>\ncontained in Annexure A-11 was raised on behalf of the appellant<br \/>\nthat despite there being stay on the confirmation of sale and that<br \/>\neven before confirmation of the sale the auction purchaser had<br \/>\nstarted demolishing the building, plant &amp; machinery and scrap<br \/>\nwas being transported out of Sehore. Against the said wrongful<br \/>\nremoval of the building materials and machinery by the auction<br \/>\npurchaser an FIR, Annexure A-12 was also lodged. However, the<br \/>\n                                                 M.A.\u00a0No.\u00a02398\/2003<br \/>\n<span class=\"hidden_text\">                                -3-<\/span><\/p>\n<p>the auction purchaser in connivance with the respondent No.1 did<br \/>\nnot deposit requisite 25% of the bid amount in the Court and the<br \/>\nCourt below, therefore, set aside the auction bid vide order dated<br \/>\n9.2.1998, Annexure A-16. As per the orders of the Court below the<br \/>\nappellant submitted the list of stolen properties on 27.4.1998,<br \/>\nAnnexure A-17.\n<\/p>\n<p>4.   It is submitted that vide order dated 20.1.1999 contained in<br \/>\nAnnexure A-21, the Court below directed to call for auction of the<br \/>\ndisputed properties and thereafter by order dated 3.4.1999,<br \/>\nAnnexure A-22, the sale warrant was directed to be issued. The<br \/>\nappellant moved an application for recall of the order dated<br \/>\n3.4.199 and prayed for a direction to the police authorities to<br \/>\nregister the criminal case about the stolen properties. On the basis<br \/>\nof the report of the Nazarat, the Court below vide order dated<br \/>\n13.8.1999, Annexure A-24, held that the last bid of Rs.16,69,000\/-<br \/>\nso made by respondent No.2 Ajay Kumar and Brothers is to be<br \/>\nconcluded in their name as there is no possibility of other bid of<br \/>\nhigher amount.\n<\/p>\n<p>5.   Being aggrieved by order dated 13.8.1999 the appellant<br \/>\napproached this Court by filing a Civil Revision which was<br \/>\nregistered at Civil Revision No. 2177\/1999. The said revision was<br \/>\ndismissed on 22.4.2003 against which the appellant filed a MCC<br \/>\nNo.700\/2003. The said MCC was also dismissed by this Court by<br \/>\nAnnexure A-27 dated 1.9.2003 holding that order impugned in the<br \/>\ncivil revision related to the acceptance of the bid and the same<br \/>\nbeing an interlocutory order, the revision preferred by the<br \/>\nappellant was not maintainable as the remedy was available under<br \/>\nOrder 21 Rule 89, 90 of the CPC. Pursuant thereof, the appellant<br \/>\nfiled application under Order 21 Rule 90 of the CPC which is filed<br \/>\nas Annexure A-28 to the present appeal. It is contended that on<br \/>\n28.10.2003 the respondent No.1 filed reply to the said application<br \/>\nand the Court below without granting sufficient opportunity to the<br \/>\nappellant to go through the reply, heard the matter next day on<br \/>\n29.10.2003 and dismissed the application of the appellant under<br \/>\nOrder 21 Rule 90 of the CPC and directed for issuance of sale-\n<\/p>\n<p>                                                 M.A.\u00a0No.\u00a02398\/2003<br \/>\n<span class=\"hidden_text\">                                  -4-<\/span><\/p>\n<p>certificate in favour of the auction purchaser. Being aggrieved by<br \/>\nthe order dated 29.10.2003 the appellant is before this Court.\n<\/p>\n<p>6.    Learned counsel for the appellant submitted that in the<br \/>\npresent case the order impugned passed by the Court below is<br \/>\nillegal. According to him, there had been no adequate price<br \/>\nreceived and yet the auction has been confirmed by the Court<br \/>\nbelow. The Court below while conducting the auction has<br \/>\ncommitted serious illegalities.\n<\/p>\n<p>7.    On behalf of the respondent No.2 it is contended that<br \/>\napplication preferred by the appellant under Order 21 Rule 90 of<br \/>\nthe CPC itself was barred by limitation. It is contended that once<br \/>\nthe application is barred by limitation, the order impugned is<br \/>\nproper.\n<\/p>\n<p>8.    The rival submissions made on behalf of the parties are<br \/>\nconsidered. It is to be seen that the application under Order 21<br \/>\nRule 90 was moved before the court below against the auction on<br \/>\n24.9.2003 whereas the auction took place on 13.8.1999. The final<br \/>\nbid was accepted and 25% of the amount was deposited and<br \/>\nremaining 75% was also deposited on 17.8.1999. It is to be seen<br \/>\nthat for the purposes of moving application under Order 21 Rule<br \/>\n90 of the CPC the provisions as contained under Article 127 of the<br \/>\nLimitation Act would be applicable and commencement of the<br \/>\nperiod of limitation for the said purpose is the date of sale. Thus,<br \/>\nthe application filed beyond the period of limitation cannot be<br \/>\nentertained.\n<\/p>\n<p>9.    Shri Rajesh Pancholi, learned counsel for the appellant<br \/>\nsubmitted that in the present case the respondent has not taken a<br \/>\nplea before the Court below that the application under Order 21<br \/>\nRule 90 of the CPC was barred by limitation, therefore, now at this<br \/>\nstage the respondents cannot be permitted to raise the objection<br \/>\nabout the limitation. The counsel has invited my attention to the<br \/>\ndecision rendered by the Apex Court in <a href=\"\/doc\/954495\/\">Nani Gopal Paul v. T.<br \/>\nPrasad Singh and others<\/a>, AIR 1995 SC 1971 wherein it is laid<br \/>\n                                                       M.A.\u00a0No.\u00a02398\/2003<br \/>\n<span class=\"hidden_text\">                                       -5-<\/span><\/p>\n<p>down a view that the Court or the appellate Court would not<br \/>\nremain a mute or helpless spectator to obvious and manifest<br \/>\nillegality committed in conducting Court sales. On the strength of<br \/>\nthe ratio laid down in the said case it is contended by him that if<br \/>\nthere are illegalities while conducting the auction sale then it may<br \/>\nnot be necessary to move application under Order 21 Rule 89 or<br \/>\n90 or under Section 48 of the CPC but the Court can suo motu<br \/>\ntake an action. Further submission of the counsel for the appellant<br \/>\nis that since the appellant was prosecuting the remedy before this<br \/>\nCourt by filing revision, therefore, that period has to be excluded<br \/>\nin view of Section 14 of the Limitation Act.\n<\/p>\n<p>10.     Per contra, Shri Ravish Agrawal, learned senior counsel for<br \/>\nthe respondent No.2 submitted that by virtue of Section 3 of the<br \/>\nLimitation Act even though the defence with regard to limitation is<br \/>\nnot set up still the application can be dismissed on the ground of<br \/>\nlimitation, if any, filed after the prescribed period of limitation.\n<\/p>\n<p>11.     By virtue of Article 127 of the Limitation Act the limitation<br \/>\nprescribed for filing application for setting aside sale is 60 days<br \/>\nfrom the date of sale. Admittedly, in the present case the sale has<br \/>\ntaken place on 13.8.1999 and the application for setting aside the<br \/>\nsale was filed on 24.9.2003. I have carefully perused the decision<br \/>\nrendered in Nani Gopal Paul (supra). In the said case, an appeal<br \/>\nwas preferred to the Division bench of the High Court against the<br \/>\norder    of   the   learned   single     Judge   exercising   the   original<br \/>\njurisdiction and while deciding the said appeal the Division Bench<br \/>\ncame to the conclusion that the sale was vitiated due to the matter<br \/>\nin which the single Judge dealing with the Company Law matters<br \/>\npassed the orders in his Chamber. The Division Bench came to the<br \/>\nconclusion that though the property was sold for a sum of Rs.60<br \/>\nlakhs but there had been certain other higher offers but same<br \/>\nwere not paid any heed and yet the auction was conducted. On<br \/>\nthat basis, the Apex Court held that once there are manifest<br \/>\nillegalities in conducting the Court sale then the Court may<br \/>\ninterfere. In Nani Gopal Paul&#8217;s case (supra) the Apex Court<br \/>\nfurther held that as against the auction price of Rs.60.00 Lac only<br \/>\n                                                     M.A.\u00a0No.\u00a02398\/2003<br \/>\n<span class=\"hidden_text\">                                 -6-<\/span><\/p>\n<p>Rs.5.00 Lac were deposited and balance amount was assured to be<br \/>\ndeposited only after delivery of possession. That was found to be<br \/>\nillegal. In the present case, the auction was held on 13.8.1999 and<br \/>\n25% of the auction price was deposited by the second respondent<br \/>\nand rest of the 75% was also deposited on 17.8.1999. Thus, in the<br \/>\npresent case whole of the amount was deposited and there was no<br \/>\nillegality as such.\n<\/p>\n<p>12.   Apart from the aforesaid, whereas also in the present case<br \/>\nagainst the auction held on 13.8.1999 a revision was preferred<br \/>\nbefore   this   Court   which   was    registered   as   Civil   Revision<br \/>\nNo.2177\/1999. The said revision was admitted and further<br \/>\nproceedings were stayed by order dated 24.9.1999. The revision<br \/>\nwas dismissed on 22.4.2003 holding that the civil revision is not<br \/>\nthe remedy but the remedy is available to the appellant under<br \/>\nOrder 21 Rule 90 by moving an application for setting aside the<br \/>\nsale. Thereafter, the appellant filed application for recall of the<br \/>\norder dated 22.4.2003 which was registered as MCC No.700\/2003.<br \/>\nThe order under revision dated 22.4.2003 was upheld and the<br \/>\nMCC was also dismissed. The record of the MCC was called by this<br \/>\nCourt for verification which revealed that it as filed on 13.8.2003.<br \/>\nIn the present case, the provisions as contained under Order 21<br \/>\nRule 90 of the CPC do not empower to set aside the sale by<br \/>\nproceeding suo motu. It provides for moving an application within<br \/>\na period of 60 days in view of Article 127 of the Act and as the<br \/>\nlimitation commences from the date of auction.\n<\/p>\n<p>13.   The Apex Court in <a href=\"\/doc\/1278358\/\">Ram Chandra Arya v. Man Singh and<\/a><br \/>\nanother, AIR 1968 SC 954 considered the limitation for filing<br \/>\napplication to set aside the sale. The aforesaid question was<br \/>\nconsidered in the light of the fact whether a stranger to the suit<br \/>\nbeing the auction purchaser of the judgment-debtor&#8217;s immovable<br \/>\nproperty in execution of an ex-parte money decree would be<br \/>\nentitled to a confirmation of sale under Order 21 Rule 92 of the<br \/>\nCPC. The Court while dealing with the said issue also held that the<br \/>\nlaw makes ample provision for protection of the interest of the<br \/>\njudgment-debtor, when his property is sold in execution. He can<br \/>\n                                                      M.A.\u00a0No.\u00a02398\/2003<br \/>\n<span class=\"hidden_text\">                                    -7-<\/span><\/p>\n<p>file application for setting aside sale under the provision of Order<br \/>\n21 Rule 90 of the CPC. If no application is made and when such<br \/>\napplication was made and disallowed, the Court has no choice but<br \/>\nto confirm the sale.\n<\/p>\n<p>14.   In Challamane Huchha Gowda v. M.R. Tirumala and<br \/>\nAnother, (2004) 1 SCC 453, their Lordships of the Apex Court<br \/>\nhave explained the purpose behind Order 21 of the CPC and in<br \/>\npara-9 their Lordships have held as under:-\n<\/p>\n<blockquote><p>      &#8220;9. Execution is the enforcement, by the process of the<br \/>\n      Court of its orders and decrees. This is in furtherance of<br \/>\n      the inherent power of the Court to carry out its orders or<br \/>\n      decrees. Order 21 of CPC deals with the elaborate<br \/>\n      procedure pertaining to the execution of orders and<br \/>\n      decrees. Sale is one of the methods employed for<br \/>\n      execution. Rule 89 of Order 21 is the only means by<br \/>\n      which a Judgment Debtor can escape from a sale, that<br \/>\n      has been validly carried out. Object of the rule is to<br \/>\n      provide a last opportunity to put an end to the dispute at<br \/>\n      the instance of Judgment Debtor before the sale is<br \/>\n      confirmed by the Court and also to save his property<br \/>\n      from dispossession. Rule 89 postulates two conditions:<br \/>\n      they are depositing &#8211; 1). of sum equal to five percent of<br \/>\n      the purchase money to be paid to the purchaser, 2). of<br \/>\n      the amount specified in the proclamation of sales lass<br \/>\n      any amount received by the decree holder since the date<br \/>\n      of such proclamation, in the Court. If these two<br \/>\n      conditions are satisfied, the Court shall make an order<br \/>\n      for setting aside the sale under Rule 92(2). of Order 21<br \/>\n      of CPC on an application made to it. In other words then<br \/>\n      there will be compliance of Court&#8217;s order or decree that<br \/>\n      is sought to be executed. Because the purpose of the<br \/>\n      Rule 21 is to ensure the carrying out of the orders and<br \/>\n      decrees of the Court. Once the Judgment Debtor carried<br \/>\n      out the order or decree of the Court, the execution<br \/>\n      proceedings will correspondingly come to an end. It is to<br \/>\n      be noted that the Rule does not provide that the<br \/>\n      application in a particular form shall be filed to set aside<br \/>\n      the sale. Even a memo with prayer for setting aside sale<br \/>\n      is sufficient compliance with the said Rule. Therefore,<br \/>\n      upon the satisfaction of the compliance of conditions as<br \/>\n      provided under Rule 89, it is mandatory upon Court to<br \/>\n      set aside the sale under Rule 92. And the Court shall set<br \/>\n      aside the sale after giving notice under Rule 92(2) to all<br \/>\n      affected persons.&#8221;\n<\/p><\/blockquote>\n<p>15.   As we have seen, in the present case the judgment-debtor<br \/>\nhas not deposited the amount under the decree, therefore, the<br \/>\nCourt proceeded to auction the property. On the basis of the facts<br \/>\nas enumerated above, it is clear that the application was not filed<br \/>\n                                                M.A.\u00a0No.\u00a02398\/2003<br \/>\n<span class=\"hidden_text\">                                  -8-<\/span><\/p>\n<p>within 60 days from the date the auction was held and thus, it is<br \/>\nbarred by limitation.\n<\/p>\n<p>16.   In this reference, the judgment passed in the case of<br \/>\nChandra     Pal   v.    Bharat   Singh   and another,   AIR 2005<br \/>\nALLAHABAD 75 is also relevant wherein the question of limitation<br \/>\nof filing application under Order 21 Rule 90 of the CPC was taken<br \/>\ninto account and when the said application was held beyond the<br \/>\nperiod of limitation, said application was dismissed on the ground<br \/>\nof limitation.\n<\/p>\n<p>17.   The next question arises in the present case whether the<br \/>\nappellant shall be entitled to the benefit of Section 14 of the<br \/>\nLimitation Act. The auction in the present case has taken place on<br \/>\n13.8.1999 and the civil revision was filed before this Court and<br \/>\nthis Court on 24.9.1999 directed that further proceedings shall<br \/>\nremain stayed. Ultimately, the said revision was dismissed on<br \/>\n22.4.2003 by holding that the revision is not maintainable and<br \/>\nremedy is under Order 21 Rule 90 yet the appellant has not<br \/>\nchosen to prefer any application immediately thereafter and within<br \/>\na reasonable period. On the contrary a review application was<br \/>\nfiled on 13.8.2003 which was also rejected on 1.9.2003 and then<br \/>\nthe application is preferred on 24.9.2003. In this background, if a<br \/>\nparty is claiming benefit of Section 14 as a wrong forum was<br \/>\nchosen to file the civil proceedings which was not maintainable<br \/>\nagainst the impugned order then as per Section 14 further<br \/>\nrequirement of said Section is that the said proceedings were<br \/>\nchosen and were taken up with due diligence. No such thing is<br \/>\nfound in the present case. Mere prosecution of remedy by itself<br \/>\nwould be sufficient to ignore the period of limitation spent in<br \/>\nprosecuting the remedy before a wrong forum.\n<\/p>\n<p>18.   Section 5 of the Limitation Act shall have no application<br \/>\nbecause Section 5 itself provides that if any appeal or any<br \/>\napplication, other than an application under any of the provisions<br \/>\nof Order XXI of the CPC, 1908, may be admitted after the<br \/>\nprescribed period, if the appellant or the applicant satisfies the<br \/>\n                                                  M.A.\u00a0No.\u00a02398\/2003<br \/>\n<span class=\"hidden_text\">                                 -9-<\/span><\/p>\n<p>court that he had sufficient cause for not preferring the appeal or<br \/>\nmaking the application within such period. Thus, Section 5 itself<br \/>\nexcludes the extension of prescribed period in relation to<br \/>\napplication under Order 21 of the CPC.\n<\/p>\n<p>19.   The question as such has to be considered in the light of<br \/>\nSection 14 of the Act. It is to be seen that if the commencement of<br \/>\nproceedings is before the period of limitation expires then there<br \/>\nmay be a question of applying Section 14 of the Limitation Act.<br \/>\nThough initially the revision was preferred against the order dated<br \/>\n13.8.1999 within a period of limitation but ultimately     when the<br \/>\nsaid revision was dismissed on 22.4.2003 then review application<br \/>\nwas filed on 13.8.2003 which was rejected on 1.9.2003. the filing<br \/>\nof the review application was not within a period of limitation and<br \/>\nwas beyond the period of 60 days because the revision was<br \/>\ndismissed on 22.4.2003 and the review was filed on 13.8.2003.<br \/>\nThe review application for recall of the order passed in revision<br \/>\nitself was after the period of limitation has expired. Thus, there is<br \/>\nno question that the proceedings were commenced before the<br \/>\nlimitation expired. Therefore, the benefit of Section 14 of the Act<br \/>\nshall not be available. That apart, when this Court while<br \/>\ndismissing the revision ultimately held that the civil revision is not<br \/>\nmaintainable as the remedy was available under Order 21 Rule 90<br \/>\nof the CPC then there was no justification and the reason to file<br \/>\nthe review application and that too after the period of limitation of<br \/>\n60 days. If the application would have been preferred immediately<br \/>\nwithin 60 days from 22.4.2003 then the position would have been<br \/>\ndifferent. No application within 60 days was filed from 22.4.2003.<br \/>\nOn the contrary, review application was filed on 13.8.2003 when<br \/>\nthe period of 60 days limitation has already expired much before<br \/>\nfiling of review application for recall of the order dated 22.4.2003.<br \/>\nIt is to be seen that the appellant filed successive applications<br \/>\nbefore the Court; revision and then the review application when<br \/>\nthe revision itself was held to be not maintainable.\n<\/p>\n<p>                                                      M.A.\u00a0No.\u00a02398\/2003<br \/>\n<span class=\"hidden_text\">                                   -10-<\/span><\/p>\n<p>20.   On behalf of the respondent No.2 it is contended that this<br \/>\nCourt while admitting the revision passed the order on 24.9.1999<br \/>\nwherein further proceedings were stayed. While staying the<br \/>\nfurther proceedings no stay order was passed by this Court that<br \/>\nthe appellant shall not file any application under Order 21 Rule 90<br \/>\nbut despite that no effort was made by the appellant to prefer any<br \/>\napplication. Therefore, the entertaining the revision by this Court<br \/>\nwill not give any benefit to the appellant to extend the period of<br \/>\nlimitation of 60 days to file application under Order 21 Rule 90 of<br \/>\nthe CPC against the sale which has taken place on 13.8.1999.\n<\/p>\n<p>21.   This Court in Brijkishore v. Kishore Singh and another,<br \/>\n1972 M.P.L.J. 719 has dealt with the issue relating to good cause<br \/>\nwhen a competent Advocate\/counsel carefully gave an advice to a<br \/>\nparty to choose a forum and if the party acts on the said legal<br \/>\nadvice then even though a wrong forum is chosen under wrong<br \/>\nadvice of a counsel then it will constitute a good cause. The<br \/>\nparagraph 5 from the said decision reads, thus:\n<\/p>\n<blockquote><p>      &#8220;At the very outset, the learned counsel for the decree-<br \/>\n      holders raised a preliminary objection that the appeal in<br \/>\n      the lower Court was barred by time and that there was<br \/>\n      no good cause for extension of time under section 5 read<br \/>\n      with Section 14 of the Limitation Act because, although<br \/>\n      the appellant may have acted under the advice of legal<br \/>\n      practitioners in filing a review, it could not be said that<br \/>\n      he did so after obtaining such advice from competent<br \/>\n      legal practitioners who had taken reasonable care to<br \/>\n      ascertain the true legal position. In support of this<br \/>\n      contention, reliance is laced upon <a href=\"\/doc\/1870732\/\">Mariambai v.<br \/>\n      Hanifabai. That the<\/a> appellant acted under the advice of<br \/>\n      legal practitioners is clear from the two affidavits filed in<br \/>\n      the case, one of them being from an Advocate, Shri<br \/>\n      Khakad. The question was not whether an appeal lay<br \/>\n      against an order passed by the Court of first instance.<br \/>\n      The real question was whether the appellant could claim<br \/>\n      to be the legal representative of the judgment-debtor to<br \/>\n      file an appeal against that order for the purpose of<br \/>\n      raising the question he did. In that sense, the question<br \/>\n      was not so straight or clear that only one answer could<br \/>\n      be given without any possible doubt or hesitation.<br \/>\n      Therefore, I am of the view that the advice given to the<br \/>\n      appellant, on which he acted in filing a revision, is not<br \/>\n      one which could not have been given by any other<br \/>\n      competent and careful legal practitioner. That being so,<br \/>\n      the lower appeal Court was right in extending the time<br \/>\n      for filing the appeal to the extent necessary.&#8221;\n<\/p><\/blockquote>\n<blockquote><p>                                                  M.A.\u00a0No.\u00a02398\/2003<br \/>\n<span class=\"hidden_text\">                                 -11-<\/span><\/p>\n<\/blockquote>\n<blockquote><p>22.   In this context, it would be relevant to see whether for the<br \/>\npurposes of attracting the benefit of Section 14 of the Limitation<br \/>\nAct is there any material produced before this Court that the<br \/>\nappellant has acted upon a wrong advice given by his counsel after<br \/>\ncarefully going through the provision to prefer the revision. A<br \/>\nclose scrutiny of the record reveals that no material is placed on<br \/>\nrecord in this regard. The appellant has neither filed his affidavit<br \/>\nnor has filed the affidavit of the counsel to show that the civil<br \/>\nrevision against the order of sale dated 13.8.1999 was preferred in<br \/>\nthe High Court under a wrong legal advice. Therefore, in view of<br \/>\nthe law laid down by this Court in Brijkishore (supra) it cannot<br \/>\nbe presumed that the revision was preferred before this Court<br \/>\nunder a wrong advice. However, as this Court while dismissing the<br \/>\nrevision by its order dated 22.4.2003 has held that the civil<br \/>\nrevision is not maintainable then thereafter there is nothing on<br \/>\nrecord to show that the counsel for the appellant again advised<br \/>\nhim to file review as according to him the application under Order<br \/>\n21 Rule 90 was not maintainable. In the absence of any material as<br \/>\nsuch it is very difficult to conceive that a wrong forum was chosen<br \/>\nby the appellant due to any wrong advice of the counsel which was<br \/>\ngiven after due care and caution.\n<\/p><\/blockquote>\n<p>23.   In the case of <a href=\"\/doc\/226770\/\">Ramlal and others v. Rewa Coalfields Ltd.,<br \/>\nAIR<\/a> 1962 SC 361, the Apex Court has not only considered the<br \/>\nscope of Section 5 and 14 of the Limitation Act but has<br \/>\nemphasized that even after sufficient cause has been shown a<br \/>\nparty is not entitled to the condonation of the delay as a matter of<br \/>\nright. The proof of a sufficient cause is a condition precedent for<br \/>\nthe exercise of the discretionary jurisdiction vested in the court. If<br \/>\nthe sufficiency of cause is shown then this Court has to inquire<br \/>\nwhether in his discretion it should condone the delay. This aspect<br \/>\nof the matter naturally introduces the consideration of all relevant<br \/>\nfacts and it is at this stage that diligence of the party or its bona<br \/>\nfides may fall for consideration but the scope of the enquiry while<br \/>\nexercising the discretionary power after sufficient cause is shown<br \/>\nwould naturally be limited only to such facts as the Court may<br \/>\n                                                      M.A.\u00a0No.\u00a02398\/2003<br \/>\n<span class=\"hidden_text\">                                   -12-<\/span><\/p>\n<p>regard as relevant. Reliance is placed upon para 12 of said<br \/>\ndecision, which is reproduced as below:\n<\/p>\n<blockquote><p>      &#8220;It is, however, necessary to emphasise that even after<br \/>\n      sufficient cause has been shown a party is not entitled to<br \/>\n      the condonation of delay in question as a matter of right.<br \/>\n      The proof of a sufficient cause is a condition precedent<br \/>\n      for the exercise of the discretionary jurisdiction vested in<br \/>\n      the Court by s. 5. If sufficient cause is not proved nothing<br \/>\n      further has to be done; the application for condoning<br \/>\n      delay has to be dismissed on that ground alone. If<br \/>\n      sufficient cause is shown then the Court has to enquire<br \/>\n      whether in its discretion it should condone the delay.<br \/>\n      This aspect of the matter naturally introduces the<br \/>\n      consideration of all relevant facts and it is at this stage<br \/>\n      that diligence of the party or its bona fides may fall for<br \/>\n      consideration; but the scope of the enquiry while<br \/>\n      exercising the discretionary power after sufficient cause<br \/>\n      is shown would naturally be limited only to such facts as<br \/>\n      the Court may regard as relevant. It cannot justify an<br \/>\n      enquiry as to why the party was sitting idle during all the<br \/>\n      time available to it. In this connection we may point out<br \/>\n      that considerations of bona fides or due diligence are<br \/>\n      always material and relevant when the Court is dealing<br \/>\n      with applications made under s. 14 of the Limitation Act.<br \/>\n      In dealing with such applications the Court is called upon<br \/>\n      to consider the effect of the combined provisions of ss. 5<br \/>\n      and 14. Therefore, in our opinion, considerations which<br \/>\n      have been expressly made material and relevant by the<br \/>\n      provisions of s. 14 cannot to the same extent and in the<br \/>\n      same manner be invoked in dealing with applications<br \/>\n      which fall to be decided only under s. 5 without<br \/>\n      reference to s. 14. In the present case there is no<br \/>\n      difficulty in holding that the discretion should be<br \/>\n      exercised in favour of the appellant be cause apart from<br \/>\n      the general criticism made against the appellant&#8217;s lack or<br \/>\n      diligence during the period of limitation no. other fact<br \/>\n      had been adduced against it. Indeed, as we have already<br \/>\n      pointed out, the learned Judicial Commissioner rejected<br \/>\n      the appellant&#8217;s application for condonation of delay only<br \/>\n      on the ground that it was appellant&#8217;s duty to file the<br \/>\n      appeal as soon as possible within the period prescribed,<br \/>\n      and, that in our opinion, is not a valid ground.&#8221;\n<\/p><\/blockquote>\n<p>24.   The said aspect of the matter has been further considered by<br \/>\nthe Apex Court in <a href=\"\/doc\/917496\/\">Ram Bhawan Singh and others v. Jagdish<br \/>\nand others<\/a>, (1990) 4 SCC 309. The view which has been laid by<br \/>\ntheir Lordships in para-7 of the decision is reproduced as under:\n<\/p>\n<blockquote><p>      &#8220;The first question that we have to decide is that of<br \/>\n      limitation. The delay of 1198 days according to the<br \/>\n      appellants had occurred unwillingly and the appellants<br \/>\n      had been prosecuting with due diligence the earlier<br \/>\n      proceedings before the appellate and the revisional<br \/>\n                                                    M.A.\u00a0No.\u00a02398\/2003<br \/>\n<span class=\"hidden_text\">                                  -13-<\/span><\/p>\n<p>      authorities and on the basis of the advice given by their<br \/>\n      counsel. There is no proper affidavit of either the<br \/>\n      appellants or the counsel in support of the application<br \/>\n      for condonation of delay. There is also no other material<br \/>\n      to indicate that the appellants<\/p>\n<p>      had exercised due diligence in working out their<br \/>\n      remedies and sought proper advice in the matter. When<br \/>\n      the party had no right of appeal, the proceedings<br \/>\n      instituted before the High Court challenging the<br \/>\n      judgment in the writ petition cannot be considered to be<br \/>\n      one in good faith. The subsequent proceedings are also<br \/>\n      not legal or valid. When the decision of the High Court in<br \/>\n      the writ petition was one quashing the orders of the<br \/>\n      appellate and the revisional authorities, the party could<br \/>\n      not proceed on the basis that the matter was restored to<br \/>\n      the lower authorities for fresh decision. We are therefore<br \/>\n      not satisfied that there is any merit in the ground urged<br \/>\n      by the appellants for getting over the bar of limitation.<br \/>\n      The appeals are liable to be dismissed as time barred.&#8221;\n<\/p><\/blockquote>\n<p>25.   The ratio laid down by the Apex Court in Ram Bhawan<br \/>\nSingh&#8217;s case (supra) is absolutely applicable in the present case<br \/>\nas I have already indicated in the earlier paragraph that there is<br \/>\nno affidavit either of the appellant or his counsel to the effect that<br \/>\nthe civil revision against the order of sale dated 13.8.1999 was<br \/>\npreferred in the High Court under a wrong legal advice. There is<br \/>\nnothing on record by way of any explanation from the appellant<br \/>\nthat the appellant has acted under the legal advice to prefer the<br \/>\nrevision. In the present case even no application under Section 14<br \/>\nof the Limitation Act was filed by the appellant along with the<br \/>\napplication under Order 21 Rule 90 before the executing Court. In<br \/>\nfact, there is no explanation which may be required to be<br \/>\nconsidered by this Court with regard to sufficiency of cause being<br \/>\na good cause under due diligence which is the ingredient under<br \/>\nSection 14 of the Limitation Act.\n<\/p>\n<p>26.   In view of the foregoing analysis of the factual scenario and<br \/>\nthe obtaining legal position, it is to be concluded that the<br \/>\nappellant is not entitled to the protection and benefit of Section 14<br \/>\nof the Limitation Act for extending the period of limitation.\n<\/p>\n<p>27.   Apart from the aforesaid, the submission of the learned<br \/>\ncounsel for the appellant is that the Court below has committed<br \/>\n                                                     M.A.\u00a0No.\u00a02398\/2003<br \/>\n<span class=\"hidden_text\">                                  -14-<\/span><\/p>\n<p>serious illegalities while conducting the auction. Indisputably, the<br \/>\nconfirmation of sale was stayed in the present case by order dated<br \/>\n5.7.1993 but there was no stay on the sale. It is also not in dispute<br \/>\nthat earlier the highest bid of one bidder, namely, Ramgopal was<br \/>\naccepted for a sum of 80.25 Lac in the year 1993 but as the bidder<br \/>\nwas not found to be bona fide, the bid was cancelled. Thereafter,<br \/>\non 21.11.1997 one Shankar Lal offered the highest bid for a sum<br \/>\nof Rs.48.52 Lac. The Court closed the bid in favour of Shankar Lal<br \/>\non 28.1.1998, however, this time also the bidder failed to deposit<br \/>\nthe complete bid amount. There was also an objection on behalf of<br \/>\nthe appellant, therefore, the said bid was also cancelled. In this<br \/>\nregard the Court below has come to a conclusion that looking to<br \/>\nthe acts of the earlier bidders in not turning up to fulfill the sale<br \/>\nby tendering the complete bid amount a suspicion had arose as to<br \/>\ntheir genuineness and bona fide. Such highest offers did not<br \/>\nappear like fulfilling the sale and the bid appeared to be planted<br \/>\nas they were never materialized. Thereafter, again valid and wide<br \/>\npublication for auction of the property in dispute was made.<br \/>\nUltimately, on 13.8.1999 the present auction purchaser came with<br \/>\na   bid   of   Rs.16,69,000\/-   and   the   Court   below   under   the<br \/>\ncircumstances and finding no possibility of other bid of higher<br \/>\namount coming forward, the bid was closed in favour of the<br \/>\nauction purchaser, the second respondent herein. It was always<br \/>\nopen to the appellant to bring some higher bidder for the property<br \/>\nin question. The appellant was never stopped from selling the<br \/>\nproperty on his own and then to get the sale proceeds adjusted<br \/>\nafter repayment of the same. It is not in dispute that the property<br \/>\nin question as on 13.8.1999 was the same as it was in the earlier<br \/>\nauction conducted in the year 1993. Admittedly, there was lack of<br \/>\nappropriate safety measures on the land in question because of<br \/>\nwhich the condition of the property had deteriorated. By efflux of<br \/>\ntime even the property was done away with the plant &amp; machinery<br \/>\nand the valuable assets. Therefore, by no stretch of imagination it<br \/>\ncan be said that the said property would have fetched the same<br \/>\nprice as it could have at the time when the property was intact. It<br \/>\nhas already been found that the earlier bids were planted.<br \/>\nTherefore, it is difficult to say that the price fetched by the<br \/>\n                                                  M.A.\u00a0No.\u00a02398\/2003<br \/>\n<span class=\"hidden_text\">                                 -15-<\/span><\/p>\n<p>property at the time of sale on 13.8.1999 was not the adequate<br \/>\nprice.\n<\/p>\n<p>28.      In my opinion, the objection with regard to the valid<br \/>\npublication of auction notices in the newspapers has no merit of its<br \/>\nown. The publication of auction notices was made in the State<br \/>\nlevel newspapers and this was done as per the Court&#8217;s order dated<br \/>\n26.8.1993 when it was found that no outsider bidder had turned<br \/>\nup on earlier occasions in the auctions. There is nothing on record<br \/>\nthat any objection was made on behalf of the appellant to the<br \/>\norder dated 26.8.1993 that the publication of auction notices in<br \/>\nthe State level newspapers was unjustified as it would reduce the<br \/>\nchance of there being bidders with higher amount in the<br \/>\nproceedings. The expenses incurred by the decree-holder to the<br \/>\ntune of Rs.1,28,000\/- do not indicate that publication with regard<br \/>\nto sale of the property was made with misery. It is seen that even<br \/>\nafter 7.8.1999 when the highest bid of Rs.16,69,000\/- from the<br \/>\nrespondent No.2 had been there, again the call was made on 9th<br \/>\nand 10th August, 1999 in the wake of higher amount than<br \/>\nRs.16,69,000\/- and      ultimately when no higher bid was coming<br \/>\nforward the bid was closed in favour of the auction purchaser on<br \/>\n13.8.1999. It is not the case of the appellant here that there was<br \/>\nanybody to offer higher bid than Rs.16,69,000\/- and he was<br \/>\ndenied. The auction purchaser has deposited the entire bid<br \/>\namount. For about four years from 13.8.1999 the amount was<br \/>\ndeposited with the Court and the Court has given a finding that<br \/>\neven during that period also no effort or submission was made on<br \/>\nbehalf of the appellant that still there was someone to offer higher<br \/>\namount than Rs.16,69,000\/-. In these circumstances, no illegality<br \/>\nin the auction is made out and the submission of the counsel in<br \/>\nthis regard has no force.\n<\/p>\n<p>29.      Submission of the learned counsel for the appellant is that<br \/>\nno adequate price was received. In this context, after close<br \/>\nscrutiny of the factual matrix of the case and the legal aspects<br \/>\nrelated thereto as I have already held that there was no illegality<br \/>\ncommitted in holding the auction sale, therefore, mere inadequacy<br \/>\n                                                      M.A.\u00a0No.\u00a02398\/2003<br \/>\n<span class=\"hidden_text\">                                     -16-<\/span><\/p>\n<p>     of the price received in the auction sale is no ground to set aside<br \/>\n     the same. The view as such finds support from the decision<br \/>\n     rendered by the Apex Court in <a href=\"\/doc\/1529365\/\">Rajender Singh v. Ramdhar<br \/>\n     Singh and others<\/a>, AIR 2001 SC 2220.\n<\/p>\n<p>     30.   In view of the aforesaid analysis of facts and the reasons<br \/>\n     stated herein-above, I do not find any substance in the appeal. The<br \/>\n     appeal being bereft of merits, it is dismissed accordingly. No order<br \/>\n     as to costs.\n<\/p>\n<p>                                               (R.K. GUPTA)<br \/>\n                                                  JUDGE<br \/>\nS\/\n <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Madhya Pradesh High Court M\/S Acme Papers Ltd. vs M.P.Financial Corp. &amp; Anr on 9 July, 2010 M.A.\u00a0No.\u00a02398\/2003 -1- HIGH COURT OF MADHYA PRADESH JABALPUR SB: Hon&#8217;ble Mr. Justice R.K. Gupta M.A. No. 2398\/2003 M\/s ACME Papers Limited : APPELLANT -Versus- M.P. Financial Corporation : RESPONDENTS and another &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212; For the Appellant : Mr. Rajesh [&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":[8,24],"tags":[],"class_list":["post-232895","post","type-post","status-publish","format-standard","hentry","category-high-court","category-madhya-pradesh-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M\/S Acme Papers Ltd. vs M.P.Financial Corp. &amp; Anr on 9 July, 2010 - Free Judgements of Supreme Court &amp; 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