567.
(SC) 12-02-2021
A. Code of Civil Procedure, 1908 (V of 1908), Section 96(3), Order 43 Rule 1A – Consent decree – Appeal against – Maintainability of -- As per Section 96(3), the appeal against the decree passed with the consent of the parties shall be barred -- Order XLIII Rule 1A provides that in an appeal against the decree passed in a suit for recording a compromise or refusing to record a compromise, it shall be open to the appellant to contest the decree on the ground that the compromise should or should not have been recorded -- High Court rightly come to the conclusion that the appeal before the High Court against the judgment and decree was maintainable -- No error has been committed by the High Court in holding so.
(Para 12)
B. Code of Civil Procedure, 1908 (V of 1908), Order 21 Rule 90 – Auction sale in execution of consent decree – Setting aside of -- JD did not deposit the amount of Rs.4,50,000/- i.e. sale consideration together with interest in terms of Order XXI Rule 90 CPC -- Not the case of the JD that there was any material irregularity or fraud in publishing or conducting the sale -- Objection is that the decree was obtained by fraud -- Application submitted by the original judgment debtors under Order XXI Rule 90 was required to be dismissed and was rightly dismissed by the learned Executing Court.
(Para 13)
C. Code of Civil Procedure, 1908 (V of 1908), Order 21 Rule 89, 90, 91, 92 -- Auction sale in execution of consent decree – Overruling of objection – Non-availing of remedy in time – Effect of -- As per Order XXI Rule 92, where an application is made under Order XXI Rule 89, Order XXI Rule 90 and Order XXI Rule 91 and the same is disallowed, the Court shall make an order confirming the sale and thereafter the sale shall become absolute -- As per Order XXI Rule 94, where a sale of immovable property has become absolute, the Court shall grant a certificate specifying the property sold and the name of the person who at the time of sale is declared to be the purchaser -- Such certificate shall bear the date on which the sale became absolute -- High Court ought not to have thereafter set aside the order dated 03.03.1998 overruling the objections raised by the judgment debtors, which order was not challenged by the judgment debtors before the High Court till the year 2000 – Impugned judgment cannot be sustained and the same deserves to be quashed and set aside.
(Para 14)
D. Code of Civil Procedure, 1908 (V of 1908), Order 21 Rule 90 – Auction sale in execution of consent decree – Setting aside of -- High Court hold auction purchaser cannot be said to be the bona fide purchaser as he was related to the judgment creditor and that he was a partner of the firm in whose favour the mortgage was executed – However, application for setting aside was not filed on above ground it was submitted on the ground that no proper publication was made to get the adequate market value -- Therefore, the High Court has gone beyond the case of the judgment debtors – Even on merit High Court is not correct in observing that the auction purchaser was not a bona fide purchaser -- Partnership firm was already dissolved much before and thereafter the plaintiff inherited the assets, claims and liabilities of the firm.
(Para 15)