Full Judgment Text
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 10
PETITIONER:
DHIRENDRA NATH GORAI AND SUBAL CHANDRASHAW AND OTHERS
Vs.
RESPONDENT:
SUDHIR CHANDRA GHOSH AND OTHERS
DATE OF JUDGMENT:
04/03/1964
BENCH:
SUBBARAO, K.
BENCH:
SUBBARAO, K.
GUPTA, K.C. DAS
DAYAL, RAGHUBAR
CITATION:
1964 AIR 1300 1964 SCR (6)1001
CITATOR INFO :
RF 1981 SC 693 (5,6)
ACT:
Execution-Court sale of property in execution of a decree
in respect of a loan-Judgment-debtor not objecting to
valuation even after service of notice-Application for
setting aside the sale on the ground of
1002
non-compliance of the provisions of s. 35 of the Bengal
Money Lenders Act-Maintainability-Sale if, valid-Bengal
Money Lenders Act, 1940 (10 of 1940), s. 35-Code of Civil
Procedure, 1908 (V of 1908), O.XXI, rr. 64, 66 and 90.
HEADNOTE:
In execution of a decree passed in a mortgage suit, the
appellant annexed in the execution application a Schedule
comprising of 11 properties sought to be sold for the
satisfaction of the claim. The appellant gave valuation of
the said properties. Though the 1st respondent received a
notice under O.XXI, r. 66 of the Code of Civil Procedure, he
did not file any objection to the valuation. Though he got
the sale adjourned a number of times promising to pay the
decretal amount, he failed to do so. Finally, two of the
said properties were sold. The 1st respondent then filed an
application in the executing court for setting aside the
said sale under O.XXI, r. 90 of the Code of Civil Procedure,
inter alia, on the ground that s. 35 of the Bengal Money-
Lender’s Act was not complied with. The learned subordinate
Judge held that there was no fraud in publishing and
conducting the sale, that the price of the lots sold was
fair and that the sale was not vitiated by reason of
infringement of s. 35 of the Act. On appeal, the High Court
held that though there had not been any substantial injury
to the 1st respondent, the provisions of s. 35 of the Act
were mandatory and. therefore, the infringement of the said
provisions would invalidate the sale. In this Court it was
contended on behalf of the appellants that whether s. 35 of
the Act was mandatory or directory, the sale held in
violation of the said provision was only illegal but not a
nullity and, therefore, it could be set aside only in the
manner and for the reasons prescribed in O.XXI, r. 90 of the
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 10
Code of Civil Procedure, and further that, as the respon-
dents did not attend at the drawing up of the proclamation
of sale, the sale could not be set aside at their instance.
Held: The non-compliance with the provisions of s. 35 of
the Act is a defect or a irregularity in publishing or
conducting the sale. A party who received the notice of the
proclamation but did not attend at the drawing up of the
proclamation or did not object to the said defect cannot
maintain an application under O.XXI, r. 90 of the Code of
Civil Procedure. Even if he could, the sale cannot be set
aside unless by reason of the said defect or irregularity he
had sustained substantial injury.
Ashram Thikadar v. Vijay Singh Chopra, I.L.R. (1944) 1 Cal.
166, distinguished.
Manindra Chandra v. Jagdish Chandra, (1945) 50 C.W.N. 266
and Maniruddin Ahmed v. Umanprasamma,(1959) 64 C.W.N. 20,
approved.
On a true construction of s. 35 of the Act, it must be held
that it was intended only for the benefit of the judgment-
debtor and, therefore, he could waive the right conferred on
him under s. 35 of the Act.
Case law reviewed.
1003
If that be the legal position, O.XXI. r. 90 of the Code of
Civil Procedure is immediately attracted. The concurrent
finding of the courts is that by reason of the non-
observance of the provisions of s. 35 of the Act no
substantial injury was caused to the judgment-debtor. Fur-
ther, though notice was given to the judgment debtor’ in one
case he did not file objection at all and in the other case,
though the judgment-debtor filed objections, he did not
attend at the drawing up of the proclamation. The sales
are, therefore, not liable to be set aside under the terms
of the said provision.
JUDGMENT:
CIVIL APPELLATE JURISDICTION: C.A. Nos. 85 and 86 of 1961.
Appeals from the judgment and decree dated November 23, 1954
of the Calcutta High Court in Appeals from Original Orders
Nos. 84 and 83 of 1953.
B. Sen and P. K. Ghosh, for the appellants (in both the
appeals).
Sukumar Ghosh, for the respondents Nos. 12 and 13 (in C.A.
No. 85 of 1961).
March 4, 1964. The Judgment of the Court was delivered by
SUBBA RAO J.-These two appeals raise the question of the
validity of the court sale held in contravention of s. 35 of
the Bengal Money-Lenders Act, 1940 (Bengal Act X of 1940),
hereinafter called the Act.
The facts in both the appeals may be briefly stated. In
Civil Appeal No. 85 of 1961, Sudhir Chandra Ghosh,
respondent No. 1, executed a first mortgage in favour of one
Provash Chandra Mukherjee, since deceased, for a sum of Rs.
12,000/-. Respondent No. 1 executed a second, third and
fourth mortgages in favour of the appellant for a total sum
of Rs. 7,700/-. He also executed another mortgage in favour
of the 9th respondent. In the year 1948 respondents 2 and
3, representing the first mortgagee’s estate, filed Title
Suit No. 8 of 1948 in the 7th Additional Court of the
Subordinate Judge at Alipore, for enforcing the first
mortgage. To that suit the puisne mortgagees were also made
parties. On May 24, 1948, a preliminary decree by consent
was made in the suit whereunder the judgment-
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 3 of 10
1004
debtor was directed to pay a sum of Rs. 15,473-7-9 to the
appellant in 7 equal annual instalments. As the judgment-
debtor failed to pay the said amount, in due course a final
decree was passed in the mortgage suit on or about February
2, 1949. Thereafter, the decree was put in execution on
January 31, 1950, and in the said execution application a
schedule of properties sought to be sold for the
satisfaction of the said claim was annexed. The schedule
comprised 11 properties and the appellant gave valuation of
the said properties. Though the 1st respondent received a
notice under O. XXI, r. 66 of the Code of Civil Procedure,
he did not file any objection to the valuation. Though the
first respondent got the sale adjourned a number of times
promising to pay the decretal amount, he failed to do so.
Finally two of the said properties were put up for sale on
June 23, 1951, and one of the said properties was purchased
by the 12th respondent for a sum of Rs. 11,800/- and the
other, by the 13th respondent for a sum of Rs. 10,100/-. On
July 21, 1951, the 1st respondent filed an application in
the executing court for setting aside the said sale under O.
XXI, r. 90 of the Code of Civil Procedure, inter alia, on
the ground that s. 35 of the Act was not complied with. The
learned Subordinate Judge held that there was no fraud in
publishing and conducting the sale, that the price of the
lots sold was fair and that the sale was not vitiated by
reason of infringement of s. 35 of the Act. On appeal a
Division Bench of the High Court held that though there had
not been any substantial injury to the 1st respondent, the
provisions of s. 35 of the Act were mandatory and,
therefore, the. infringement of the said provisions would
invalidate the sale. In that view, it set aside the sale
and directed the appellant to refund the money with
interest.
Civil Appeal No. 86 of 1961 also arises out of the same
execution proceedings. Under the said compromise preli-
minary decree the judgment-debtor agreed to pay the decretal
amount of Rs. 25,687/- to the executors of the estate of the
first mortgagee, respondents 2 and 3. As the amount was not
paid, the said respondents filed an application in the 7th
Court of the Additional Subordinate Judge, Alipore, for the
execution of the said decree. In the
1005
execution petition 8 properties were described and their
valuations were given. The judgment-debtor filed objections
to the valuations given by the decree-holders, but on the
date fixed for settling the valuations of the said
properties neither the judgment-debtor nor his advocate
appeared in court. The learned Subordinate Judge, by his
order dated February 11, 1950, directed that both the
valuations of the decreeholders and the judgment-debtor be
noted in the sale proclamation. Thereafter the sale
proclamation was duly issued and the date of the sale was
fixed for May 11, 1950. The judgment-debtor took as many as
15 adjournments of the sale promising to pay the decretal
amount, but did not do so. Finally the sale of the
properties was fixed for June 23, 1951 and on that date two
lots of the property were sold in execution and the
appellants purchased lot No. 1 at a price (if Rs. 14,000/-
and respondent No. 9 purchased Lot No. 2 at a price of Rs.
19,600/-. On July 21, 1951, the 1st respondent filed an
application before the learned Subordinate Judge for setting
aside the sale under O. XXI, r. 90 of the Code of Civil
Procedure, on grounds similar to those raised in the other
application, the subject-matter of Civil Appeal No. 85 of
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 4 of 10
1961. The said application was heard by the learned
Subordinate Judge along with the said other application.
For the same reasons, he dismissed the application. On
appeal, the Division Bench of the High Court heard the
appeal along with the connected appeal and set aside the
sale. The present appeals are filed by certificate against
the common judgment of the High Court in both the matters.
Mr. Sen, learned counsel for the appellants in both the
appeals, contends that whether s. 35 of the Act is mandatory
or directory the sale held in violation of the said
provision is only illegal but not a nullity and, therefore,
it can be set aside only in the manner and for the reasons
prescribed in O. XXI, r. 90 of the Code of Civil Procedure,
and further that, as the respondents did not attend at the
drawing up of the proclamation of sale, the sale cannot be
set aside at their instance.
To appreciate the argument it is necessary and convenient to
read at the outset the relevant provisions of the Act and
the Code of Civil Procedure.
1006
Section 35 of the Act.
"Notwithstanding anything contained in any
other law for the time being in force, the
proclamation of the intended sale of property
in execution of a decree passed in respect of
a loan shall specify only so much of the
property of the judgment-debtor as the Court
considers to be saleable at a price sufficient
to satisfy the decree, and the property
so specified shall not be sold at a price
which is less than the price specified in such
proclamation :
Provided that, if the highest amount bid for
the property so specified is less than the
price so specified, the Court may sell such
property for such amount, if the decree-holder
consents in writing to forego so much of the
amount decreed as is equal to the difference
between the highest amount bid and the price
so specified."
CODE OF CIVIL PROCEDURE
Order XXI, r. 64
Any Court executing a decree may order that
any property attached by it and liable to
sale, or such portion thereof as may seem
necessary to satisfy the decree, shall be
sold, and that the proceeds of such sale, or a
sufficient portion thereof, shall be paid to
the party entitled under the decree to receive
the same.
Order XXI, r. 66.
(1) Where any property is ordered to be sold
by public auction in execution of a decree,
the Court shall cause a proclamation of the
intended sale to be made in the language of
such Court.
(2) Such proclamation shall be drawn up
after notice to the decree-holder and the
judgment
1007
debtor and shall state the time and place of
sale, and specify as fairly and accurately as
possible- -
(a) the property to be sold;
Order XXI, r. 90.
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 5 of 10
(1) Where any immovable property has been
sold in execution of a decree. the decree-
holder, or any person entitled to share in a
rateable distribution of assets or whose
interests are affected by the sale, may apply
to the Court to set aside the sale on the
ground of a material irregularity or fraud in
publishing or conducting it or on the ground
of failure to issue notice to him as required
by rule 22 of this Order :
Provided (i) that no sale shall be set aside
on the ground of such irregularity, fraud or
failure unless. upon the facts proved. the
Court is satisfied that the applicant has
sustained substantial injury by reason of such
irregularity, fraud or failure.
(ii) that no sale shall be set aside on the
ground of any defect in the proclamation of
sale at the instance of any person who after
notice did not attend at the drawing up of the
proclamation or of any person in whose
presence the proclamation was drawn up, unless
objection was made by him at the time in
respect of the defect relied upon.
Under O. XXI. r. 64 of the Code of Civil Procedure, the
executing court may order that any property attached by it
and liable to sale or such portion thereof as may seem
necessary to satisfy the decree shall be sold. Under r. 66
of the said Order of the Code when a property is ordered to
be sold in public auction in execution of a decree the court
shall cause a proclamation of the intended sale to be made
and such proclamation shall specify as fairly and accurately
as possible, among others, the property to
1008
be sold and such proclamation shall be drawn up after notice
to the decree-holder and the judgment-debtor: under sub-r.
(4) thereof, the court may summon and examine any person or
require him to produce any document in his possession or
power relating thereto. Under the said provisions the court
has power to direct the sale of the entire property attached
or a part thereof sufficient to satisfy the decree and it
shall also specify the said property directed to be sold in
the proclamation fixed after giving notice to both the
decree-holder and the judgment-debtor. Under s. 35 of the
Act a duty is cast upon the court in settling the pro-
clamation of the intended sale of property in execution of a
decree passed in respect of a loan to which the Act applies
to specify only so much of the property of the judgment-
debtor as the court considers to be saleable at a price
sufficient to satisfy the decree and not to sell the
property so specified at a price which is less than the
price so specified in such proclamation. This provision is
in effect a statutory addition to O. XXI, r. 66 of the Code
of Civil Procedure. Indeed, this provision could have been
added as another clause to the said rule. This statutory
provision pertains to the field of proclamation. The rule
says so in terms. The said two conditions are also steps to
be taken by the court in the matter of publishing or
conducting the sale. If a sale is held without complying
with the said conditions, what is the remedy open to a party
affected thereby to get the sale set aside? Order XXI, r.
90 of the Code in terms provides for the remedy. It says
that a person whose interests are affected by the sale may
apply to the court to set aside the sale on the ground of a
material irregularity or fraud in publishing or conducting
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 6 of 10
it or on the ground of failure to issue notice to him as
required by r. 22 of the Order. As the non-compliance with
the said conditions is a material irregularity in publishing
or conducting the sale the court under the first proviso to
O. XXI, r. 90 of the Code cannot set aside the sale unless
it is satisfied that the applicant had sustained substantial
injury by reason of such irregularity. That apart, under
the second proviso to the said rule, no sale shall be set
aside on the ground of any defect in the proclamation of
sale at the instance of any person, who after notice did not
attend at the drawing up
1009
of the proclamation or of any person in whose presence the
proclamation was drawn up unless objection was made by him
at the time of drawing up of the proclamation in respect of
the defect relied upon. Shortly stated, the noncompliance
with the provisions of s. 35 of the Act is a defect or a
irregularity in publishing or conducting the sale. A party
who received the notice of the proclamation but did not
attend at the drawing up of the proclamation or did not
object to the said defect cannot maintain an application
under O. XXI, r. 90 of the Code of Civil Procedure. Even if
he could, the sale cannot be set aside unless by reason of
the said defect or irregularity he had sustained substantial
injury.
On this question a divergence of views is reflected in the
decisions cited at the Bar. Mukherjea and Pal, JJ., in
Asharam Thikadar v. Bijay Singh Chopra(1) set aside the
order of the executing court and sent the case back to that
court, as the said court inserted in the proclamation the
valuation of the property given by the judgment-debtor as
well as that given by the decree-holder and did not, as it
should do under s. 3 5 of the Act, determine the price of
the property which was to be put up for sale on proper
evidence. This decision has no relevance to the question
raised before us, as the appeal before the High Court was
against the order made by the executing court dismissing the
application filed by the judgment-debtor requesting the
court to demarcate the property to be sold pursuant to the
provisions of s. 35 of the Act. The question whether a sale
held in non-compliance with the said provisions could be set
aside de hors the provisions of O. XXI, r. 90 of the Code of
Civil Procedure did not arise for consideration therein.
The question now posed before us directly arose for decision
before a Division Bench of the Calcutta High Court,
consisting of Akram and Chakravartti, JJ., in Manindra
Chandra v. Jagadish Chandra (2) Chakaravartti, J., met the
objection raised by the judgment-debtor who sought to set
aside the sale on the ground of non-compliance with the
provisions of s. 3 5 of the Act, thus :
(1) I.I..R. [1944] 1 Cal. 166.
134-159 S.C.-64
(2) (1945) 50 C.W.N. 266,270.
1010
"It (s. 35 of the Act) is a provision relating
to the contents of the sale proclamation and
its effect, to my mind, is to amend or
supplement Or. 21, r. 66 (2) (a) which directs
the Court to specify in the sale proclamation
"the property to be sold". Any objection
regarding non-compliance with sec. 35 in
specifying the property to be sold is, in my
view, a defect in the sale proclamation within
the meaning of the second proviso to Or. 21,
r. 90, C.P.C. It follows that an objection
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 7 of 10
that the sale proclamation did not conform to
sec. 35 of the Bengal MoneyLenders Act cannot
avail a judgment-debtor in an application
under Or. 2 1, r. 90, if he was present at the
drawing up of the sale proclamation and did
not raise any such objection at the time, nor
can it avail a judgment-debtor who, after
receiving notice did not attend at the drawing
up of the sale proclamation at all."
We agree with this reasoning. Another Division Bench of the
Calcutta High Court, consisting of Guha and Banerjee, JJ.,
in Maniruddin Ahmed v. Umaprasanna(1), considered the entire
case law on the subject, including the decision now under
appeal, and differed from the view expressed by S. R. Das
-Gupta and Mallick, JJ., in the decision now under appeal
and agreed with the view expressed by Akram and
Chakravartii, JJ., in Manidra Chandra v. Jagdish Chandra
(2). The said decisions are in accord with the view we have
expressed earlier. The contrary view is sustained by the
High Court in the present case on the principle that the
sale held in contravention of the provisions of s. 35 of
the Act was a nullity and, therefore, no question of setting
aside the sale within the meaning of O. XXI, r. 90 of the
Code of Civil Procedure would arise. This raises the
question whether such a sale is a nullity. If a provision
of a statute is only directory, an act done in contravention
of the provision is manifestly not a nullity. Section 35 of
the Act is couched in a mandatory form and it casts in terms
a duty on the court to comply with its
(1) (1959) 64 C.W.N. 20.
(2) (1945) 50 C.W.N. 266, 270.
1011
provisions before a sale is held. Prima facie the provision
is mandatory; at any rate, we shall assume it to be so for
the purpose of these appeals.
Even then, the question arises whether an act done in breach
of the mandatory provision is per force a nullity. In
Ashutosh Sikdar v. Behari Lal Kirtania(1), Mookerjee, J.,
after referring to Macnamara on "Nullity and Irregulari-
ties", observed :
no hard and fast line can be drawn between a
nullity and an irregularity; but this much is
clear, that an irregularity is a deviation
from a rule of law which does not take away
the foundation or authority for the
proceeding, or apply to its whole operation,
whereas a nullity is a proceeding that is
taken without any foundation for it, or is so
essentially defective as to be of no avail or
effect whatever, or is void and incapable of
being validated."
Whether a provision falls under one category or the other is
not easy of discernment, but in the ultimate analysis it
depends upon the nature, scope and object of a particular
provision. A workable test has been laid down by Justice
Coleridge in Holmes v. Russell(2), which reads:
"It is difficult sometimes to distinguish
between an irregularity and a nullity; but the
safest rule to determine what is an
irregularity and what is a nullity is to see
whether the party can waive the objection; if
he can waive it, it amounts to an
irregularity; if he cannot, it is a nullity."
A waiver is an intentional relinquishment of a known right
but obviously an objection to jurisdiction cannot be waived,
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 8 of 10
for consent cannot give a court jurisdiction where there is
none. Even if there is inherent jurisdiction, certain
provisions cannot be waived. Maxwell in his book "On the
(1) (1908) I.L.R. 35 Cal. 61, 72. (2) [1841] 9 Dowl. 487.
1012
Interpretation of Statutes", 11th Edn., at p. 375, describes
the rule thus:
"Another maxim which sanctions the non-
observance of a statutory provision is that
cuilibet licet renuntiare juri pro se
introducto. Everyone has a right to waive and
to agree to waive the advantage of a law or
rule made solely for the benefit and
protection of the individual in his private
capacity, which may be dispensed with without
infringing any public right or public policy."
The same rule is restated in "Craies on Statute Law", 6th
Edn., at p. 269, thus :
"As a general rule, the conditions imposed by
statutes which authorise legal proceedings are
treated as being indispensable to giving the
court jurisdiction. But if it appears that
the statutory conditions were inserted by the
legislature simply for the security or benefit
of the parties to the action themselves, and
that no public interests are involved, such
conditions will not be considered as
indispensable, and either party may waive them
without affecting the jurisdiction of the
court."
The Judicial Committee in AL. AR. Vellayan Chettiar v.
Government of Madras(1) pointed out that there was no
inconsistency between the propositions that the provisions
of s. 80 of the Code of Civil Procedure were mandatory and
must be enforced by the court and that they might be waived
by the authority for whose benefit they were provided. In
that case the Judicial Committee held that s. 80 of the Code
of Civil Procedure was explicit and mandatory; but still it
held that it could be waived by the authority for whose
benefit that was provided. This aspect of the law in the
context of s. 35 of the Act was considered by a Division
Bench of the Calcutta High Court in Gaya Prosad v. Seth
(1) [1947] L.R. 74 I.A. 223, 228.
1013
Dhanrupwal Bhandari(1). Dealing with this argument, P. N.
Mookerjee, J., speaking for the court, observed :
"It is true that section 35 of the Bengal
MoneyLenders Act casts a duty upon the court
but such duty is solely for the benefit-the
private benefit-of the judgment-debtor. It
is, therefore, open to him to waive this
benefit, or, in other words, to waive his
objection of nonobservance of that statutory
provision by the court. . . . . .
Guha and Banerjee, JJ., expressed much to the
same effect in Maniruddin Ahmed v.
Umaprasanna(2) thus, at p. 30:
"The Bengal Money-Lenders Act, 1940 enacted
for the purpose of making better provision for
the control of money-lenders and for the
regulation and control of money-lending, has
certainly a public policy behind it. But some
of its provisions, and section 35 one of them,
are intended for the benefit of the individual
judgment debtors and have no public policy
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 9 of 10
behind them. Such provisions may be waived by
the person for whose benefit the same were
enacted."
A Division Bench of the Patna High Court in Sheo Dayal
Narain v. Musammat Moti Kuer(3), speaking through Meredith,
J., in the context of the provisions of s. 13 of the Bihar
Money-Lenders (Regulation of Transactions) Act, 1939, which
are pari materia with the provisions of s. 35 of the Bengal
Money-Lenders Act, 1940, rejected the contention that a sale
held in contravention thereof was a nullity in the following
words
"Illegal the sale may have been, in the
limited sense that it was held in a manner at
variance with a mandatory statutory provision.
That provision, however, has no reference at
all to the jurisdiction of the Court. It
affords no foundation for
(1) (1953) 58 C.W.N. 503. 508.
(2) 64 C.W.N. 20.
(3) (1942), I.L.R. 21 Pat. 281, 286.
1014
the contention that the sale was one which the Court
concerned had no power at all to hold."
Where the court acts without inherent jurisdiction, a party
affected cannot by waiver confer jurisdiction on it, which
it has not. Where such jurisdiction is not wanting, a
directory provision can obviously be waived. But a manda-
tory provision can only be waived if it is not conceived in
the public interests, but in the interests of the party that
waives it. In the present case the executing court had
inherent jurisdiction to sell the property. We have assumed
that s. 3 5 of the Act is a mandatory provision. If so, the
question is whether the said provision is conceived in the
interests of the public or in the interests of the person
affected by the non-observance of the provision. It is true
that many provisions of the Act were conceived in the
interests of the public, but the same cannot be said of s.
35 of the Act, which is really intended to protect the
interests of a judgment-debtor and to see that a larger
extent of his property than is necessary to discharge the
debt is not sold. Many situations may be visualized when
the judgment-debtor does not seek to take advantage of the
benefit conferred on him under s. 3 5 of the Act; for
instance, if the part of the property carved out by the
court for sale is separated from the rest of his property,
the value of the remaining property may be injuriously
affected by the said carving out, in which case the
judgment-debtor may prefer to have his entire property sold
so that he may realize the real value of the property and
pay part of the sale price towards the decretal amount. He
cannot obviously be compelled to submit to the sale of a
part of the property to his disadvantage. A provision
intended for his benefit cannot be construed in such a way
as to work to his detriment. But it is said that the
proviso to s. 35 of the Act indicates a contrary intention.
Under that proviso, "if the highest amount bid for the pro-
perty so specified is less than the price so specified, the
Court may sell such property for such amount, if the decree-
holder consents in writing to forego so much of the amount
decreed as is equal to the difference between the highest
bid and the price so specified". This is only an option
given to the decree-holder : he may exercise this option, if
he does
1015
not like to go through the entire sale proceedings
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 10 of 10
overagain. In one contingency this proviso also Works for
the benefit of the judgment-debtor, for he will be relieved
of part of his indebtedness. But anyhow this does not show
that the main provision is not intended for the benefit of
the judgment-debtor. We are, therefore, satisfied, on a
true construction of s. 3 5 of the Act, that it is intended
only for the benefit of the judgment-debtor and, therefore,
he can waive the right conferred on him under s. 35 of the
Act.
If that be the legal position, O. XXI, r. 90 of the Code of
Civil Procedure is immediately attracted. The concurrent
finding of the courts is that by reason of the non-
observance of the provisions of s. 35 of the Act no
substantial injury was caused to the judgment-debtor.
Further, though notice was given to the judgment-debtor, in
one case he did not file objections at all and in the other
case, though the judgment-debtor filed objections, he did
not attend at the drawing up of the proclamation. The sales
are, therefore, not liable to be set aside under the terms
of the said provision.
In the result the orders of the High Court are set aside and
those of the Additional Subordinate Judge are restored. The
appellants will get their costs throughout from the 1st
respondent. There will be one set of hearing fee.
Appeals allowed.