Full Judgment Text
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PETITIONER:
U. NILAN
Vs.
RESPONDENT:
KANNAYYAN (DEAD) THROUGH LRS.
DATE OF JUDGMENT: 05/10/1999
BENCH:
S.Saghir Ahmad, S.Rajendra Babu
JUDGMENT:
S.SAGHIR AHMAD, J.
The facts labyrinthically placed in the jargon of
hosts of applications, appeals and revisions, are summed up
below.
The respondent who is since dead and is now
represented by his legal representatives (hereinafter
referred to as ‘respondent’), had mortgaged his properties
by deposit of title deeds in favour of the appellant in
1976. On January 9, 1978, the appellant filed O.S. No.
21/78 for the recovery of mortgage money in the Court of
Sub-Judge, Thanjore. A preliminary decree in the suit was
passed on 10th September, 1979 for a sum of Rs. 73,915.
This was followed by a final decree passed on 21.3.1980.
Since the respondent did not pay the decretal amount
to the appellant, the latter, namely, the appellant filed an
Execution Application (E.P.No.164/80) for the sale of the
hypothecated property. When the property was put up for
sale on 25.6.1981, no person was available to offer his bid
and, therefore, E.P.No.164/80 was consigned to record as
closed.
The appellant, thereafter, filed E.P.No.106/81 for
sale of the mortgaged properties but when this application
too failed to fetch bidders for the properties which were
put up for sale on 25.1.1982 and 25.3.1982, the appellant
himself, through another application, namely E.A.No. 88/82,
sought permission of the court to bid at the auction sale
and to set off the decretal amount against the sale price.
This application was allowed on 28.4.1982. The respondent,
in the meantime, filed E.As.No. 115 and 116 of 1982
claiming relief under the Debt Relief Act but the
Applications were rejected by the Court. In the auction
which was held on 29th April, 1982, the appellant offered
his bid in the sum of Rs.75,005/-. The case was directed to
come up on 1st July, 1982 for confirmation of sale. In the
meantime on 21st of June, 1982, respondent filed E.A.No.
151/82 under Order 21 Rule 90 read with Section 47 CPC for
setting aside the sale held on 29.4.1982. This Application
was contested by the appellant who indicated in his counter
affidavit that there was no irregularity or fraud committed
in conducting the sale.
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On 18th of September, 1982, E.P. No.151/82 was
dismissed in default and the sale was confirmed under Order
21 Rule 92 C.P.C. The respondent, thereafter, filed E.A.No.
293/82 for restoration of E.P.No. 151/82 which was
dismissed in default. He also filed another application,
namely, E.A.No. 294/82 for setting aside the confirmation
of sale. Application for setting aside the sale was
rejected by the Executing Court on 2.4.1983 as not
maintainable and on the same day, E.A.No. 294/82 was also
dismissed.
The respondent then filed C.M.A. No.267/83 in the
High Court against the order by which E.A.No. 294/82 for
setting aside the confirmation of sale was rejected. He
also filed C.M.A. No. 462 of 1983 in the High Court
against the order rejecting the Application (E.A. No. 293
of 1982) for restoration of E.A. No. 151 of 1982. In
C.M.A. No. 267 of 1983, respondent moved an application
(C.M.P. 7710 of 1983) for an order of interim stay which
was granted subject to his depositing Rs.25,000/- in the
court before 30.6.83. This order was complied with and the
respondent deposited that amount in the Executing Court on
24.6.83.
While C.M.A. No. 267 of 1983 and C.M.A. No. 462 of
1983 were pending in the High Court, the respondent made an
Application (E.A. No. 226 of 1983) in the Suit (O.S.No.
21 of 1978) for depositing the balance of the mortgage
amount under Order 34 Rule 5 CPC. While this Application
was pending, C.M.A. No. 267 of 1983 was allowed by the
High Court by its judgment dated 21st July, 1983 and the
order passed by the Executing Court in E.A. No. 294 of
1982 was set aside and the case was remanded to the
Executing Court to hear and decide the Application (E.A.
No. 294 of 1982) afresh after allowing the parties to lead
such evidence as they considered necessary. In the
meantime, by order dated 27th July, 1983, respondent’s
Application ( E.A. No.226 of 1983) under Order 34 Rule 5
was dismissed on the ground that it was not maintainable as
the High Court, in its judgment dated 21st July, 1983 while
remanding the case, had not indicated anything in that
regard nor had it issued any direction. Against this order,
the respondent filed C.R.P. No. 3473 of 1983.
C.M.A. No. 462 of 1983 and C.R.P. No. 3473 of 1983
were taken up together and the High Court by its judgment
dated 7th September, 1983, allowed both the matters with a
direction to the lower court to issue challan for the
deposit of Rs.62,563/- by the respondent without prejudice
to the contentions of the parties.
On 16th September, 1983, when the matter was taken up
by the trial court, respondent’s Application (E.A. No.226
of 1983) was allowed and the balance amount of Rs.62,563/-,
which was directed to be deposited, was accepted and it was
recorded that the mortgage was discharged.
After remand by the High Court, E.A. No. 293 of 1982
and E.A. No. 294 of 1982 were both dismissed by the trial
court on 12th December, 1983 with the finding that the
respondent had committed forgery by filing and relying upon
false documents for which he was liable to be prosecuted.
Against this judgment, the respondent filed C.M.A. 19 of
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1984 and C.M.A. 74 of 1984. While these two appeals were
pending in the High Court, the respondent filed I.A. 337 of
1984 before the trial court for return of documents under
Order 34 Rule 5A CPC, but the application was rejected by
the trial court on 6th September, 1985, against which the
respondent filed C.R.P. No.4402 of 1985 in the High Court.
C.M.A. No.19 of 1984 and C.M.A. No.74 of 1984, as
also C.R.P. No.4402 of 1985 were taken up together by the
High Court and by the common judgment dated 14th January,
1988, C.M.A. 19 of 1984 and C.M.A. 74 of 1984 were
dismissed, but C.R.P. 4402 of 1985 was allowed with the
findings : (i) Application under Order 34 Rule 5 had been
filed during the pendency of the appeal in the High Court
and the High Court in that proceeding had already directed a
challan to be issued to the respondent to enable him to
deposit the balance of the mortgage money, which he did
deposit though without prejudice to the respective
contentions of the parties. (ii) After remand, respondent’s
Application No. 226 of 1983 was allowed and the balance
amount of Rs.62,563/-was deposited by the respondent, which
order became final as it was never challenged by the
appellant. Therefore, the Application, namely, I.A. 337 of
1984 for return of documents, which was dismissed by the
trial court on 6.9.1985, was liable to be allowed.
The High Court reversed the order of the trial court
and allowed the Revision. It is against this judgment that
the present appeal has been filed.
Mr. A.T.M. Sampath, learned counsel appearing on
behalf of the appellant, has contended that the application
of the respondent for setting aside the sale having been
dismissed in default by the trial court and the application
for restoration also having been dismissed, the sale as also
its confirmation in favour of the appellant, shall be
treated to have been upheld by the High Court and
consequently the application of the respondent under Order
34 Rule 5 CPC as also the application filed under Order 34
Rule 5A for return of documents, were liable to be
dismissed. It is contended that the sale having been
confirmed in favour of the appellant and the confirmation of
sale having been upheld by the High Court, there was no
jurisdiction left in the High Court to allow the application
under Order 34 Rule 5 CPC. It is also contended that the
High Court passed contradictory orders. It is pointed out
that as respondent’s application for setting aside that
order, by which his application for setting aside the sale
was dismissed in default, was rejected and the confirmation
of sale in favour of the appellant was thus upheld, the High
Court passed a contradictory order that mortgage amount
could be legally deposited by respondent and on the amount
being so deposited, the mortgage stood discharged.
Learned counsel for the respondent, on the contrary,
contended that when the application for setting aside the
order by which E.A. No. 151 of 1982 was dismissed for
default was rejected, an appeal was filed in the High Court
and it was during the pendency of that appeal that an
application under Order 34 Rule 5 C.P.C. was filed by the
respondent for depositing the balance of the mortgage money.
This application was ultimately allowed and the balance of
the amount of Rs.62,563/- was deposited by the respondent
and consequently the mortgage was discharged. The
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application under Order 34 Rule 5 C.P.C. was clearly
maintainable even at that stage. It is contended that
C.M.A. No. 267 and A.A.O. No. 462 of 1983 were allowed
by the High Court and the case was remanded to the Executing
Court for deciding the application of the respondent for
setting aside the sale afresh. That being the stage of the
proceedings, the application under Order 34 Rule 5 C.P.C.
cannot be said to be not maintainable. In fact, the
application, it is contended, was clearly maintainable and
the Execution Court by its order dated 16.9.1983 had rightly
discharged the mortgage. This order, it is contended, had
not been challenged by the appellant at any stage and has
become final. The appellant cannot, therefore, rely upon
the order dated 16.9.1983 by which the sale in his favour
was confirmed.
In view of the respective contentions made by the
learned counsel for the parties, the question which is
required to be decided by us in this appeal is whether the
application filed by the respondent under Order 34 Rule 5
C.P.C. was maintainable even after confirmation of sale.
The further question which is required to be decided is
whether an application under Order 34 Rule 5 C.P.C. would
be maintainable during the pendency of the appeal against
the order of the Executing Court by which the application
for setting aside the sale was rejected.
Order 34 Rule 5 provides as under:-
"XXXIV. SUITS RELATING TO MORTGAGES OF IMMOVABLE
PROPERTY.
R. 5. Final decree in suit for sale.
(1) Where, on or before the day fixed or at any time
before the confirmation of sale made in pursuance of a final
decree passed under sub-rule (3) of this rule, the defendant
makes payment into Court of all amounts due from him under
sub- rule (1) of Rule 4, the Court shall, on application
made by the defendant in this behalf, pass a final decree
or, if such decree has been passed, an order ----
(a) ordering the plaintiff to deliver up the documents
referred to in the preliminary decree,
and, if necessary, ---
(b) ordering him to transfer the mortgaged property as
directed in the said decree,
and, also, if necessary ---
(c) ordering him to put the defendant in possession of
the property.
(2) Where the mortgaged property or part thereof has
been sold in pursuance of a decree passed under sub-rule (3)
of this rule, the Court shall not pass an order under
sub-rule (1) of this rule, unless the defendant, in addition
to the amount mentioned in sub-rule (1), deposits in Court
for payment to the purchaser a sum equal to five per cent of
the amount of the purchase-money paid into Court by the
purchaser.
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Where such deposit has been made, the purchaser shall
be entitled to an order for payment of the amount of the
purchase-money paid into Court by him, together with a sum
equal to five per cent thereof.
(3) Where payment in accordance with sub-rule (1) has
not been made, the Court shall, on application made by the
plaintiff in this behalf, pass a final decree directing that
the mortgaged property or a sufficient part thereof be sold,
and that the proceeds of the sale be dealt with in the
manner provided in sub-rule (1) of Rule 4."
The provisions extracted above clearly indicate that
an application under Order 34 Rule 5 C.P.C. can be filed or
moved by the mortgagor for the deposit of mortgage money at
any time before the confirmation of sale.
Originally, there was no provision under Order 34 Rule
5 C.P.C. enabling the defendant to deposit the mortgage
money into Court at any time before confirmation of sale so
as to save his property from being sold. This provision was
introduced by the Transfer of Property (Amendment) Act (21
of 1929) and it was provided that if, at any time, before
the confirmation of sale made in pursuance of a final
decree, the defendant makes payment into Court of all
amounts due from him under Sub-rule (1) of Rule 4 of Order
34, the Court shall, on an application made by the
defendant, pass a final decree and if such a decree has
already been passed, it would be open to the Court to pass
an order:-
(a) directing the plaintiff-mortgagee to deliver up
the documents referred to in the preliminary decree to the
mortgagor; and, if necessary (b) directing him to transfer
the mortgaged property, as directed in the said decree and,
also, if necessary,
(c) directing the plaintiff-mortgagee to put the
defendant in possession of the property. Order 34 Rule 5
provides the last chance to the mortgagor to save his
property from being passed on to the auction purchaser and
avoid the disturbance of his title ensuring, at the same
time, that mortgage money is paid to the person in whose
favour the property had been mortgaged by depositing the
entire amount in the Court, including the amount, where the
property has been sold, contemplated by Sub-rule (2) of this
Rule. The whole step has to be taken before the
confirmation of sale.
What is the meaning of the phrase "before the
confirmation of sale" may now be considered in the light of
other relevant provisions of the Code of Civil Procedure.
Now, an application to set aside the sale can be filed
under Order 21 Rule 89 C.P.C. while another application for
setting aside the sale on the ground of irregularity or
fraud can also be given under Order 21 Rule 90 C.P.C.
Similarly, if the property has been sold, it would be open
to the purchaser to make an application for setting aside
the sale on the ground that the judgment-debtor had no
saleable interest in the property sold in execution of the
decree.
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Order 21 Rule 92(1) C.P.C. including the Proviso
thereto provides as under:-
"R.92. Sale when shall become absolute or be set
aside.- Where no application is made under Rule 89, Rule 90
or Rule 91, or where such application is made and
disallowed, the Court shall make an order confirming the
sale, and thereupon the sale shall become absolute.
Provided that, where any property is sold in execution
of a decree pending the final disposal of any claim to, or
any objection to the attachment of, such property, the Court
shall not confirm such sale until the final disposal of such
claim or objection."
The above provisions indicate that if an application
is not made either under Rule 89 or Rule 90 or Rule 91 for
setting aside the sale, the Court would confirm the sale.
So also, where such application is made and is disallowed,
the sale would be confirmed. When the "sale" thus becomes
absolute, the Court is required to grant a certificate under
Order 21 Rule 94 to the person in whose favour the sale has
been confirmed specifying therein the details of the
property sold, the name of the purchaser as also the date on
which the sale became absolute. Once these steps have been
taken and a certificate has been issued to the purchaser,
the latter, namely, the purchaser can obtain delivery of
possession of the property sold through the court process by
making an application under Order 21 Rule 95 C.P.C. or if
the property is in possession of the tenant, symbolic
possession would be delivered to him.
Article 180 of the Limitation Act, 1908 which has
since been replaced by the Limitation Act, 1963, provided
for a limitation of three years for making an application
for delivery of possession under Order 21 Rule 95 C.P.C.
In a case which was ultimately decided by the Privy
Council, the question arose as to when the sale shall be
deemed to have become absolute; either on and from the date
on which it was confirmed or on and from the date on which
the appeal, filed against an order rejecting application for
setting aside the sale, was disposed of. The Privy Council
in Chandra Mani Saha and others vs. Anarjan Bibi and
others, AIR 1934 Privy Council 134, held as under:-
"....in construing the meaning of the words "when the
sale becomes absolute" in Art. 180, Limitation Act, regard
must be had not only to the provisions of O.21, R.92(1) of
the Schedule to the Civil Procedure Code, but also to the
other material sections and Orders of the Code, including
those which relate to appeals from Orders made under O.21,
R.92(1). The result is that where there is an appeal from
an order of the Subordinate Judge, disallowing the
application to set aside the sale, the sale will not become
absolute within the meaning of Art.180, Limitation Act,
until the disposal of the appeal, even though the
Subordinate Judge may have confirmed the sale, as he was
bound to do, when he decided to disallow the above-mentioned
application.
Their Lordships, therefore, are of opinion that on the
facts of this case the sales did not become absolute within
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the meaning of Art. 180, Limitation Act, until 17th March
1927, and that the applications for possession of the
properties purchased at the auction sales were not barred by
the Limitation Act."
The Privy Council confirmed the view taken by the
Calcutta High Court in Chhogan Lal Bagri vs. Behari Lal
Saha Ray, AIR 1933 Cal. 311 and overruled the earlier
judgment of that court in Neckbar Sahai vs. Prakash Chandra
Nag Chaudhuri, AIR 1930 Cal. 86. The effect of the Privy
Council decision is that the sale of property, in execution
of decree, does not become absolute merely on the passing of
an order confirming the sale under Order 21 Rule 92 but if
there has been an appeal against an order rejecting an
application for setting aside the sale, made either under
Order 21 Rule 89 or Rules 90 or 91, the sale would not
become absolute till the disposal of that appeal. It was
held that the limitation of three years prescribed under
Article 180 of the Limitation Act, 1908 for making an
application for delivery of possession under Order 21 Rule
95 would run, not from the date on which the sale is
confirmed under Order 21 Rule 92 but from the date on which
the appeals are disposed of.
This question was also considered in a slightly
different situation by the Madras High Court in Kandukuri
Chellamma alias Mangamma & Anr. vs. Shri Ranganilayam
Ramakrishnarao, I.L.R. (1946) Madras 795 = AIR 1946 Madras
337. The question in that case was whether an application
under Section 19 of Madras Act IV of 1938 to scale down the
decree-debt would lie during the pendency of an appeal
against the order refusing to set aside the sale. The
objection was that once the sale has become absolute and has
been confirmed, an application to scale down the decree-debt
would not lie. This was rejected by the High Court which
held that in view of the pendency of the appeal, the
validity of the sale was still in question and until that
question was finally decided by the High Court, the sale
could not be treated to have become absolute particularly as
the appeal had to be regarded as a continuation of the
proceedings initiated in the lower court for setting aside
the sale.
In another Madras decision in S.V. Ramalingam and
others vs. K.E. Rajagopalan and another, 1975 (2) Madras
Law Journal 494, rendered by S.Natarajan, J. (as His
Lordship then was), this principle was reiterated and it was
held that:
"16. The confirmation of a sale subsequent to the
dismissal of a petition under Order 21, rule 90 cannot, in
reality, after the situation when the
mortgagor-judgment-debtor has preferred within time an
appeal against the dismissal of his petition under Order 21,
rule 90. Though the confirmation of the sale does take the
auction-purchaser a step further than before the
confirmation of the sale, the confirmation, by itself, is in
one sense, inchoate. The confirmation gives the sale only
viability but does not render the sale an indefeasible one,
till such time as the appeal preferred by the mortgagor
against the validity of the sale remains undisposed. In
that sense, the confirmation effected the executing Court
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may become final as far as the executing Court is concerned,
but it certainly does not stamp the transaction with
irrevocable finality when alone the rights of parties get
crystallised beyond retracement. Consequently, the appeal
preferred by the judgment-debtor has the effect of rendering
a sale and its confirmation fluidal and nebulous. It,
therefore, follows that the finality of the sale is rendered
at large before the appellate Court in appeal and as such,
the petitioners will be entitled to exercise the right
conferred on them under Order 34, rule 5 to redeem the
mortgage."
In another decision rendered by the Madras High Court
in V.A. Narayana Raja vs. Renganayaki Achi (died) and
others, AIR 1984 Madras 27, it was again reiterated that an
application under Order 34 Rule 5 would be maintainable
during the pendency of the appeal filed by the judgment-
debtor against an order passed by the Executing Court
refusing to set aside the sale effected in execution of the
decree passed in the mortgage suit. It was further held
that although as a result of the confirmation of sale and
the issue of a sale certificate, the auction purchaser got
title to the property and the title of the judgment-debtor
was lost but since the sale was subject to the final result
of the petition, filed by the judgment-debtor under Order 21
Rule 90 C.P.C., the confirmation of sale and the sale
certificate issued thereafter would also be subject to the
result of that petition. Similarly, if an appeal was
pending against an order refusing to set aside the sale, the
whole situation relating to confirmation of sale and
issuance of sale certificate would be in a nebulous state
and consequently it would be open to the judgment-debtor to
invoke the provisions of Order 34 Rule 5 C.P.C. and make
the necessary deposits to save his property from being
transferred to a third person or, may be, to the decree
holder, in execution of decree passed in the mortgage suit.
The entire legal position was reviewed by this Court
in Maganlal & Anr. vs. Jaiswal Industries Neemach & Ors.,
1989 (3) SCR 696, and it was held that the sale does not
become absolute or irrevocable merely on passing an order
confirming the sale under Order 21 Rule 92 but it would
attain finality on the disposal of the appeal, if any, filed
against an order refusing to set aside the sale.
Mr. A.T.M. Sampath, learned counsel appearing on
behalf of the appellant has vehemently contended that the
principles set out above would not be applicable to the
present case inasmuch as the appeal was not filed by the
respondents against the order refusing to set aside the sale
but it was filed against an order by which their application
for restoration of another application, namely, the
application for setting aside the sale under Order 21 Rule
90, which was dismissed in default, was rejected. He has
invited our attention to the decision of this Court in
Hukamchand vs. Bansilal & Ors., 1967 (3) SCR 695, in which
it was held that:-
"Though O. XXXIV r. 5(1) recognises the right of the
judgment-debtor to pay the decretal amount in an execution
relating to a mortgage decree for sale at any time before
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the confirmation of sale, the rule does not give any power
to the court to grant time to deposit the money after the
final decree has been passed. It is not open to the court
to go on fixing date after date and postponing confirmation
of sale merely to accommodate a judgment-debtor."
It was further held:-
"A harmonious construction of O. XXXIV r. 5 and O.
XXI r. 92 would make it clear that if the provisions of O.
XXI r. 92(1) apply the sale must be confirmed unless before
the confirmation the mortgagor judgment-debtor has deposited
the amount as permitted by O. XXXIV r. 5."
The first part of the above extract is wholly
inapplicable to the present case as it is nobody’s case that
the Court had been deliberately fixing dates after dates to
avoid confirmation of sale or to accommodate the judgment-
debtor. The other part of the extract is relied upon by
both the parties, specially the respondent in support of the
contention that the deposits under Order 34 Rule 5 can be
made and has to be made before the confirmation of sale.
It is true that when the sale was held under the court
auction, the respondent, in the present case, had made an
application (E.A.No. 151/82) for setting aside the sale but
the application was dismissed in default and the sale was
confirmed. Thereafter, the respondent had made an
application (E.A.No. 293/82) for restoration of that
application. They had also made an application (E.A.No.
294/82) for setting aside the confirmation of sale but both
these applications were rejected and it was against these
orders that the respondent had filed appeals (C.M.A.No.
267/83 and C.M.A.No.462/83) in the High Court. It was
during the pendency of these appeals that the respondent had
made an application under Order 34 Rule 5 for deposit of
money. The situation where an appeal is filed directly
against the order dismissing an application under Order 21
Rule 90 is not different from the situation where the appeal
is filed against the order dismissing that application in
default inasmuch as in both the situations, it is the
validity of confirmation of sale, which is involved and is
under possible jeopardy.
An identical situation with which we are faced in this
case was considered by the Madras High Court itself in
Varadarajan vs. Venkatapathy Reddy, (1953) 1 M.L.J. 148,
in which the appeal was filed against an order by which the
application under Order 21 Rule 90 C.P.C. was dismissed in
default. It was held that restoration of the application
under Order 21 Rule 90 C.P.C. would automatically operate
to vacate, or, render ineffective, the earlier order
confirming the sale under Order 21 Rule 92. The High Court
was of the opinion that pendency of an application under
Order 21 Rule 90 C.P.C. would operate as a bar to an order
of confirmation of sale being made under Order 21 Rule 92.
It was further of the view that restoration of an
application under Order 21 Rule 90 C.P.C., which was earlier
dismissed for default, would relegate the parties to the
earlier position and the application for setting aside the
sale would be treated as pending and not disposed of despite
the confirmation of sale in the interregnum.
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In Ramathal vs. Nagarathinammal, (1967) 1 M.L.J.
260, the above view was reiterated and it was held that the
restoration of an application under Order 21 Rule 90, which
was earlier dismissed in default, would render ineffective
the order by which the sale was confirmed.
The Andhra Pradesh High Court in Satyanarayana vs.
Ramamurthi, (1960) 2 An.W.R. 430, held that it is only
where no application under Order 21 Rule 90 is made within
the statutory period or where such an application is made
but is rejected that the Court can exercise its power to
confirm the sale. It further held that the existence of an
application for setting aside the sale would operate as a
bar in making the sale absolute. It also held that during
the pendency of the appeal, no finality attaches to the sale
notwithstanding the confirmation of sale having been made in
the meantime.
Mr. A.T.M. Sampath then pointed out that even after
remand by the High Court, both the applications, namely,
application for restoration as also the application for
setting aside the confirmation of sale were dismissed on
12.12.1983 and the appeals filed against those orders, being
C.M.A. No.19 of 1984 and C.M.A. No.74 of 1984, have also
been dismissed by the impugned judgment with the result that
the objections under Order 21 Rule 90 C.P.C. shall be
treated to have been dismissed on merits, and the
confirmation of sale in favour of the appellant shall be
treated to have been validly done. It is contended that
once the order, by which the sale was confirmed in favour of
the appellant, is found to have been validly passed, the
title in the property passed in favour of the appellant
while the title of the respondent, from that moment, came to
an end. The consequence of this situatiuon, it is further
contended, was that the application under Order 34 Rule 5
C.P.C. for deposit of money was not maintainable and was
liable to be rejected. It was not open to the Executing
Court to have accepted the deposit or to have passed an
order for return of document.
Having given our anxious consideration to these
submissions, we are unable to accept them not only on
equitable considerations but on the merits of the case also.
Adversity of a person is not a boon for others. If a
person in stringent financial conditions had taken the loan
and placed his properties as security therefor, the
situation cannot be exploited by the person who had advanced
the loan. The Court seeks to protect the person affected by
adverse circumstances from being a victim of exploitation.
It is this philosophy which is followed by the Court in
allowing that person to redeem his properties by making the
deposit under Order 34 Rule 5 C.P.C.
We may, at this moment, recapitulate the facts which
have already been given above.
In this case, the sale was held on 29th of April,
1982. The respondent made an application on 21st of June,
1982 for setting aside the sale but this application was
dismissed in default on 18.9.1982. Thereafter, the sale was
confirmed. This compelled the respondent to make an
application for setting aside the confirmation of sale.
They also made an application for restoration of their
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earlier application under Order 21 Rule 90 C.P.C. Both the
applications were made on 12.10.1982 but they were rejected
on 2.4.1983 against which, as pointed out earlier, C.M.A.No.
267/83 and C.M.A.No. 462/83 were filed. In these appeals,
the respondent also moved an application (C.M.P.No.
7710/83) for stay and the High Court passed conditional
order of stay by directing the respondent to deposit a sum
of Rs.25,000/- in the Executing Court on or before
30.6.1983. The respondent deposited the amount on
26.6.1983. While these appeals were pending in the High
Court, the respondent made an application (E.A.No. 226/83)
in the original suit for deposit of money under Order 34
Rule 5.
C.M.A.No. 267/83 was allowed by the High Court on
21.7.1983 by the follwing order:-
"Appellant came forward with a claim that on 12.9.1982
he was afflicted with chicken pox and this was preceded by
fever for two days. Court below held that when no
prescription issued by a doctor or any bill produced
regarding purchase of medicines, this claim cannot be
accepted, though for chicken pox there are no medicines.
Learned counsel for the respondent would state that
appellant herein indulges in protracting the proceedings,
and at every stage he deliberately allows the matter to be
dismissed for default and thereby prevents an early
conclusion of proceedings.
On behalf of appellant, it is pleaded that a bonafide
impression was entertained that by filing such affidavit,
the matter could be successfully concluded, but since the
court below had approached the matter differently by stating
that no other evidence had been adduced, if only it had been
indicated by Court that this matter calls for oral and
documentary evidence to be adduced as well, then appellant
would have adduced the necessary evidence. Therefore, to
enable the appellant to establish the truthfulness of the
claim made, the matter is now remitted, for him to adduce
such evidence as he may choose to give, thereafter for the
court below to pass suitable orders. Accordingly, the
C.M.A. is allowed. No costs. It is open to both parties
to adduce such oral and documentary evidence as they may
consider necessary, and the enquiry is to be completed
positively, on or before 31.8.1983.
It is stated that pursuant to the Orders passed in
C.R.P. No.2251 of 1983, the premises is kept under lock and
key. Since respondent herein is prevented from enjoying the
property in spite of securing an order for confirmation of
sale, the premises will continue to be kept under lock and
key as per the orders passed in the above C.R.P., subject to
an added condition that appellant herein shall deposit by
the 10th of every succeeding month to the credit of the E.P.
a sum of Rs.300/- per month into the court below, failing
which, it will be open to the Court below to proceed to pass
suitable orders.
Sd/- July 21, 1983."
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The trial court, in the meantime, by its order dated
27.7.1983 rejected the respondent’s application (E.A.No.
226/83) for permission to deposit the balance of the
mortgage money under Order 34 Rule 5 C.P.C. against which
C.R.P.No. 3473/83 was filed in the High Court. This
Revision Petition as also C.M.A.No. 462/83 were taken up
together and disposed of by a common judgment dated
7.9.1983. The Revision Petition and the appeal both were
allowed. The judgment, inter alia, provided as under:-
"It is stated that in respect of orders passed in
E.A.No.293 of 1982 which was filed to set aside the orders
passed in E.A.No.151 of 1982 and which in turn was filed to
set aside the sale, C.M.A.No.262 of 1983 is filed to this
Court. In the light of the orders already passed in
C.M.A.No.267 of 1983 and the entire matter having been
reopened, both the appeal and the revision petition are
allowed with costs with a direction to the court below to
dispose of the connected E.As. along with E.A.No.294 of
1982, which is being presently enquired into.
It is stated that the court below did not issue chalan
for remittance of Rs.62,563/-Now that the matter has been
reopened, the court below is directed to issue necessary
chalan for the amount to be deposited but without prejudice
to the contentions of parties. If by the date of deposit,
it is open to the Judgment debtor to deposit the high
amount. On production of the Steno copy of this order, the
court below shall proceed further in the matter.
Sd/- 7.9.1983."
A perusal of the portion of the order extracted above
would show that the whole matter was reopened with the
result that the confirmation of sale could not be treated as
final and it was open, even at that stage, to the respondent
to deposit the balance of the mortgage money.
Thereafter, the trial court, by its order dated
16.9.1983, allowed E.A.No. 226/83 and accepted the balance
of the mortgage money amounting to Rs.62,563/-. The trial
court discharged the mortgage. It is contended by the
learned counsel for the respondent that this order has
become final as it was, at no stage, challenged by the
appellant. But the matter does not end here. The trial
court, in the meantime, by its order dated 12.12.1983,
dismissed E.A.Nos. 293/82 and 294/82 against which
C.M.A.No. 19/84 and C.M.A.No.74/84 were filed in the High
Court. It also, by its order dated 16.9.1984, dismissed the
respondent’s application (I.A.337/84) for return of
documents under Order 34 Rule 5A C.P.C. Against this order,
C.R.P.No. 4402/85 was filed in the High Court.
C.M.A.No.19/84, C.M.A.No.74/84 and C.R.P.4402/85 were
disposed of by the High Court by a common judgment dated
14.1.1988 by which C.M.A.Nos.19 and 74 of 1984 have been
dismissed while C.R.P.No.4402/85 has been allowed. The
judgment apparently is self-contradictory. While rejecting
C.M.A.Nos.19/84 and 74/84, the High Court allowed
C.R.P.No.4402/85 and has held that the mortgage stood
discharged. The relevant portion of the judgment is
reproduced below:-
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"24. I am afraid that the above said principles are
not applicable to the facts of the present case, since there
is no foundation for holding that the order passed by
Sathiadev, J., was obtained by fraud and the matter is being
raised for the first time before this Court. It is no doubt
true that the conduct of the petitioner in adopting all
sorts of dilatory tactics in delaying the execution of the
decree has to be condemned. But that will not be sufficient
to ignore the order passed by the Court on the basis of the
alleged fraud. Therefore, I find that the order passed by
the lower Court in I.A.No.337 of 1984 in O.S.No.21 of 1978
is not sustainable. As already observed, the order passed
by the lower Court in E.A.No.226 of 1983 has given a
complete discharge of the mortgage decree and consequently
the petitioner is entitled to get return of the documents as
prayed for in I.A.No.337 of 1984.
25. In the result, this revision petition is allowed
and the order of the lower Court is set aside. No costs."
The High Court endorsed the view of the trial court
that on the deposit of the balance amount of the mortgage
money, the mortgage stood discharged. The Trial Court
having also allowed the application of the respondent for
return of documents under Order 34 Rule 5A C.P.C., there was
no occasion for the High Court to have dismissed C.M.A.Nos.
19 and 74/84.
Mr. A.T.M. Sampath has contended that having
dismissed C.M.A.Nos.19 and 74/84, the High Court should not
have allowed C.R.P.No.4402/85 nor should have it allowed the
respondent’s application under Order 34 Rule 5A for return
of documents. He is, to that extent, right. But once the
balance of the mortgage money was allowed to be deposited
under Order 34 Rule 5 and the documents were also ordered to
be returned under Rule 5A, with the consequence that the
mortgage was treated as discharged, the obvious conflict can
be removed by allowing both the appeals, namely, C.M.A.
Nos. 19 and 74 of 1984, which are hereby allowed, so as to
bring in harmony the earlier part of the judgment with the
latter part. The objection that the respondent had not
filed any appeal in this Court against that part of the
judgment of the High Court by which C.M.A. Nos. 19 and 74
of 1984 were dismissed, cannot be entertained as the
principles contained in Order 41 Rule 33 can be invoked in
the instant case so as to do complete justice between the
parties. For the reasons stated above, we find no merit in
this appeal which is hereby dismissed with the observation
that the amount deposited by the appellant from time to time
in the High Court or any other Court, in this case, shall be
refunded to him together with all interest accrued thereon.
There shall be no order as to costs.