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  • provisions of Order 21, Rule 63 of the Code
  • SECTION 54 TRANSFER OF PROPERTY ACT
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Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
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  • provisions of Order 21, Rule 63 of the Code
  • SECTION 54 TRANSFER OF PROPERTY ACT
  • clause (a) of sub-rule (1)
  • Rule 66 of Order 21
  • Rule 89 of Order
  • Order 21, Rule 89,
  • Order 21, Rule 63,
  • Order 21. Rule 58,
  • O. 21, Rules 58
Smart Summary

Judgment Summary — R.K. Choudhary, J. (with concurrence of V. Ramaswami, C.J.)

Factual and Procedural Background

The following facts and procedural history are drawn from the opinion itself.

Musammat Singhasan Thakurain obtained a money decree for maintenance for the years 1358 to 1360 Fasli against the judgment-debtors (opposite second party). That decree was purchased by the opposite first party (the decree-holder) by a sale deed dated 17-07-1953. The decree-holder initiated execution in Execution Case No. 137 of 1953 before the Munsif, first court, Darbhanga. The decree-holder's execution petition sought Rs. 477/8/-, but office calculation resulted in decretal dues of Rs. 468/7/-, and a sale proclamation was issued for recovery of the latter amount.

The claimant (petitioner) preferred a claim under Order 21, Rule 58 CPC on 11-02-1954 (Misc. Case No. 20 of 1954), which was dismissed on 24-08-1954. On 21-09-1954 some judgment-debtors applied to have the decree reduced (Misc. Case No. 120 of 1954). During pendency of that miscellaneous proceeding, the property was sold on 13-11-1954 to the decree-holder for Rs. 478 (with set-off allowed).

On 29-11-1954 Misc. Case No. 120 of 1954 was allowed and the decretal amount was reduced to Rs. 415/15/-. The petitioner applied under Order 21, Rule 89 CPC on 08-12-1954 to set aside the sale on deposit; the prayer was initially rejected in limine on 08-12-1954 but renewed on 10-12-1954. The petitioner deposited Rs. 439/15/- by chalan No. 632 of 11-12-1954. The Munsif set aside the sale. On appeal the Additional District Judge, Darbhanga, reversed the Munsif, holding that the petitioner had no right to apply under O.21 R.89 and that the deposit was insufficient. The petitioner sought revision in the High Court.

Legal Issues Presented

  1. Whether a person who has lost a claim under Order 21, Rule 58 CPC but contemplates or has sought to file a title suit under Order 21, Rule 63 CPC (or otherwise claims a right that is not finally extinguished) is entitled to apply under Order 21, Rule 89 CPC to have an execution sale set aside by depositing the amounts prescribed by that rule.
  2. Whether the deposit made by the petitioner was sufficient for the purposes of Order 21, Rule 89 CPC — specifically, whether the depositor must base the amount under Rule 89(b) on the amount specified in the sale proclamation or on the (later) amended decretal amount which the decree-holder is entitled to recover.

Arguments of the Parties

Petitioner's Arguments (Mr. Kumar)

  • The word "interest" in Order 21, Rule 89 CPC should be given a broad meaning that includes not only completed interests but also inchoate interests or rights which the applicant seeks to establish in court (including by instituting a suit under Order 21, Rule 63).
  • The petitioner who had lost his claim under Order 21, Rule 58 but intended to pursue or had the competence to pursue title remedies under Rule 63 was therefore entitled to apply under Rule 89 to set aside the sale.
  • The deposit made (Rs. 439/15/- by chalan) was sufficient because the decretal amount had been amended downward to Rs. 415/15/-, and the deposit included that amount plus five per cent of the purchase money (as required under R.89(a) and (b) when calculated on the amended decree).

Decree-holder's Arguments (Mr. Rajeshwari Prasad)

  • The claimant who had lost his earlier claim did not own the property nor hold an interest therein by virtue of a title acquired before the sale, and therefore was not entitled to apply under Order 21, Rule 89 CPC.
  • The deposit was insufficient because the amount specified in the sale proclamation (Rs. 468/7/-) should govern Rule 89(b), and the petitioner did not deposit that full amount plus five per cent on the sale amount.
  • Reliance was placed on certain precedents (including a Patna and a Nagpur case) that counsel argued restricted the meaning of "interest" and limited entitlement to apply under Rule 89.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Dhanammal v. Veeraraghavalu Naidu, AIR 1923 Mad 487 Permits a person who has made a claim under O.21 R.58 and been negatived to still apply under O.21 R.89 to set aside a sale; a dismissal under R.58 does not operate as res judicata to prevent an application under R.89. Cited as authority supporting a broad construction of "interest" under R.89 and that a negatived R.58 claim does not bar a R.89 application.
Virish v. Subba Rao, AIR 1949 Mad 687 Holds that "interest" under O.21 R.89 has wide import; unsuccessful R.58 claimants are not estopped from applying under R.89 after a sale; an inchoate right may suffice. Relied upon as a key precedent to support the proposition that a person may apply under R.89 despite an earlier adverse decision under R.58/R.63.
Narasimhachariar v. Raghava Padayachi, AIR 1945 Mad 333 (Full Bench) Decision under O.21 R.58 and 63 is conclusive between parties to those proceedings for execution of the particular decree, but does not preclude a claimant from setting up title against a purchaser in execution of an entirely different decree. Used to support the view that R.58/R.63 decisions are limited inter partes and do not thereby deny an interest sufficient for O.21 R.89 in other execution contexts.
Mundrika Singh v. Nand Lal Singh, AIR 1941 Pat 204 Holds that a person with a contract of sale executed before auction (though not creating a transferable interest under Section 54 T.P. Act) had locus standi to apply under O.21 R.89 within thirty days. Applied as supporting authority that an inchoate or incomplete title (contract for sale) suffices as "interest" under R.89.
Rabindra Nath v. Harendra Kumar, AIR 1956 Cal 462 Holds that "title" in O.21 R.89 includes not merely perfected title but title in process of maturity (inchoate title). Supported the conclusion that incomplete or maturing title suffices as an "interest" for R.89 purposes.
Nand Kishore Jha v. Paraoo Mian, 2 Pat LJ 676 (AIR 1917 Pat 159) Holds (in the facts of that case) that a person who ultimately lost his title suit could not recover a deposit made to set aside a sale; authorities construe limited entitlement to make such deposit. Court distinguished this Patna authority as not applicable to the present facts and did not accept it as barring R.89 relief here.
Onkar v. Dhansingh, AIR 1926 Nag 10 A Nagpur decision that gave a restricted meaning to "interest" and held that claimants whose R.58 claim and R.63 suit were dismissed could not apply under R.89. The court expressly disagreed with the Nagpur view and declined to follow it in the present case.
Vithoba v. Dhanaji, AIR 1948 Nag 126 Holds that if a decree is reversed before confirmation of sale, the decree is wiped out and such reversal can operate as a constructive receipt under R.89(b), making deposits limited (e.g., only five per cent) sufficient. Used to support the principle that payments or reductions of decretal dues (including constructive receipt) reduce the R.89(b) deposit obligation.
Laxmansing Baliramsing v. Laxminarayan Deostban, AIR 1948 Nag 127 Holds that O.21 R.89(1)(b) can be satisfied by an unequivocal admission by the decree-holder that his decree was satisfied within thirty days of the sale. Relied upon for the proposition that payment or admission outside court may satisfy R.89(b).
Jyotish Chandra Ghose v. Bireswar Haidar, 39 Cal WN 829 Holds there is no authority requiring a cash deposit in court of the amount specified in the proclamation in every R.89 case; amounts received by decree-holder since proclamation are deductible under R.89(1)(b). Quoted to support the court's view that out-of-court payments or receipts reduce the deposit requirement under R.89(b).
Mahendra Chandra Das v. Parshmani Dasya, AIR 1938 Cal 252 (68 Cal LJ 264) Holds that if the judgment-debtor discharged the decretal amount out of court and five per cent was deposited for purchaser, the sale could be set aside under O.21 R.89. Used to illustrate that payments outside court may satisfy R.89(b) and to support the sufficiency of deposits that account for such payments.
Muthuvenkatapathy Reddy v. Kuppu Reddi, AIR 1940 Mad 427 (FB) Full Bench support for the proposition that out-of-court satisfaction or acknowledgements can satisfy R.89 requirements. Cited as further support for the court's interpretation that R.89(b) need not always be met by cash payment into court of the proclamation amount.

Court's Reasoning and Analysis

The court's analysis proceeded in two main stages: (A) interpretation of the phrase "owning such property or holding an interest therein by virtue of a title acquired before such sale" in Order 21, Rule 89 CPC; and (B) determination of what amount must be deposited under Rule 89(b) where the decretal amount has been amended after the sale proclamation.

A. Interpretation of "interest" under Order 21, Rule 89

  • The court examined the language of O.21 R.89(1) and concluded that the person entitled to make an application must either own the property or hold an interest therein by virtue of a title acquired before the sale.
  • The court accepted the petitioner's submission that "interest" should not be given an unduly narrow meaning. It embraced a broad construction that includes inchoate or maturing interests — that is, interests which a person claims and may seek to establish (for example by suit under O.21 R.63).
  • This construction was supported by two Division Bench decisions of the Madras High Court (Dhanammal and Virish), which the court found persuasive. The Madras authorities were read to hold that a negatived claim under R.58 does not operate as an absolute bar to a later R.89 application and that an inchoate interest may suffice.
  • The court considered, distinguished or declined to follow authorities to the contrary (notably a Patna case and a Nagpur case). The Patna authority (Nand Kishore Jha) was held not to apply to the present facts; the Nagpur decision's restrictive view of "interest" was rejected in light of the stronger line of authority favouring a liberal construction.
  • By reference to decisions from Patna, Calcutta and Madras (including Mundrika Singh and Rabindra Nath), the court reiterated that contract of sale or a title "in process of maturity" can amount to an "interest" for R.89 purposes, even if such contract does not, by Section 54 T.P. Act, create a transferable interest until conveyance.
  • Result: The petitioner, who claimed an interest which he sought to establish, was held to have locus standi to apply under O.21 R.89 despite earlier adverse proceedings under R.58.

B. Sufficiency of deposit under Order 21, Rule 89

  • The court set out the two-fold deposit requirement of R.89(1): (a) five per cent of the purchase money to the purchaser; and (b) the amount specified in the sale proclamation less any amount which since the proclamation has been received by the decree-holder.
  • The decree-holder argued that the amount specified in the proclamation (Rs. 468/7/-) must be the basis for clause (b), so the petitioner’s deposit was insufficient if measured against that figure.
  • The petitioner argued that clause (b) requires deposit for payment to the decree-holder of the amount he is entitled to recover under the decree; since the decretal amount had been amended downwards to Rs. 415/15/-, the deposit based on the amended decree sufficed.
  • The court examined Order 21, Rule 66(2)(d), which prescribes that the amount specified in the sale proclamation is the amount for recovery for which the sale is ordered — in other words, the decretal dues which the decree-holder is entitled to recover by sale.
  • Reading R.89 together with R.66, the court concluded that the amount required to be deposited under R.89(b) is the amount which the decree-holder is entitled to recover under the decree. If the decree is subsequently amended so as to reduce the decretal dues, the depositor need only deposit the reduced amount (or the balance), taking into account amounts constructively or actually received by the decree-holder since proclamation.
  • The court observed that payment under clause (b) need not be cash paid into court; payments in kind or out-of-court receipts (including constructive receipts following amendment or reversal) may reduce or extinguish the deposit obligation. The court cited Nagpur and Calcutta authorities that support this position.
  • Applying this legal analysis to the facts, the court found that the petitioner had deposited a sum (recorded as Rs. 439/15/-) which included Rs. 415/15/- (the amended decretal amount) and five per cent of the sale price (based on Rs. 478). Thus, the deposit was sufficient under R.89 as interpreted.

Holding and Implications

Holding: The High Court allowed the revision. It held that the petitioner was entitled to apply under Order 21, Rule 89 CPC to have the execution sale set aside and that the deposit made on the basis of the amended decree was sufficient to permit the sale to be set aside. The judgment and order of the Additional District Judge (the lower appellate court) were set aside and the Munsif's order setting aside the sale was restored. The application succeeded with costs; hearing fees of Rs. 100 were imposed.

Implications: The direct effect of the decision is to restore the Munsif's order setting aside the sale and to entitle the petitioner to the return of appropriate relief as per that order. The court applied and relied on established authorities construing "interest" under O.21 R.89 broadly and interpreting the deposit obligations of R.89 in light of R.66; it did not purport to create a novel precedent but followed and reconciled earlier case law to reach its conclusion. No new rule beyond the interpretative conclusions reached in this opinion is announced; the decision operates to decide the parties' rights in the present proceedings.

Costs and result as recorded in the opinion: Application succeeds and is allowed with costs; judgment and order of the lower appellate court set aside; orders of the Munsif restored; hearing fees Rs. 100. V. Ramaswami, C.J. concurred.

    Radharaman Choudhary v. Gulab Thakur And Others Opposite Party.

    R.K Choudhary, J.:— This application in revision is by the claimant-applicant against the judgment and the order of the Additional District Judge of Darbhanga in Miscellaneous Appeal No. 6 of 1955 reversing those of the Munsif, first court there, setting aside a sale held on 13-11-1954.

    2. The short facts are these, one Musammat Singhasan Thakurain obtained a money decree for maintenance for the years 1358 to 1360 Fasli against the judgment-debtors-opposite second party. That decree was purchased by the opposite first party (hereinafter to be referred to as the decree-holder) by a sale deed dated 17-7-1953, who started execution of the same in Execution Case No. 137 of 1953 in the court of the Munsif, first court, Darbhanga. By his execution petition, he sought to recover a sum of Rs. 477/8/-, but on calculation by the office, the decretal dues came to be Rs. 468/7/- only, and, accordingly, the sale proclamation was issued for recovery of the latter amount. On 11-2-1954, the petitioner preferred a claim under O. 21, R. 58 of the CPC which gave rise to Miscellaneous Case No. 20 of 1954. It was dismissed on 24-8-1954. On 21-9-1954, an application was filed by some of the judgment-debtors alleging that the decree was wrongly prepared for a larger amount and it ought to be reduced. This gave rise to Miscellaneous Case No. 120 of 1954. During the pendency of this miscellaneous case, the sale was held on 13-11-1954, and the property was sold to the decree-holder for Rs. 478 and a set off was allowed with regard to the same.

    3. On 29-11-1954, the Miscellaneous Case No. 120 of 1954 was allowed and the amount of the decretal dues was reduced to Rs. 415/15/-. On 8-12-1954, the petitioner made an application under O. 21, R. 89 of the CPC for setting aside the sale on deposit of the requisite amount. In that application he stated that he was going to file a title suit under O. 21, R. 63 of the CPC to establish his right which had been rejected in the proceeding under O. 21 R. 58 of that Code. That prayer, however, was rejected on that date in limine but on 10-12-1954, the petitioner renewed his prayer by a fresh application, and on this occasion the Munsif allowed the Braver and the petitioner deposited a sum Rs. 439/15/- by chalan No. 632 of 11-12-1954.

    4. The decree-holder, however, objected to the sale being set aside on the ground that the petitioner had no right to make the deposit and the deposit was insufficient. The Munsif overruled the objection and set aside the sale. But on appeal by the decree-holder-auction purchaser, the Additional District Judge of Darbhanga held that the sale could not be set aside and accordingly passed an order setting aside the order of the Munsif. Being, thus, aggrieved, the petitioner has presented this application in revision in this court.

    5. The learned Additional District Judge in reversing the judgment and the order of the Munsif held that the petitioner had no right to make an application under O. 21 R. 89 of the CPC and that the deposit so made was insufficient. Mr. Kumar appearing for the petitioner has contended that the learned Additional District Judge has committed an error of law in coming to the above conclusions.

    6. His contention is that the person who having lost his claim under O. 21, R. 58 of the CPC contemplates to file a suit under R. 63 of that Order, is entitled to make an application for setting aside the sale under O. 21, R. 89 of that Code. His further contention is that the amount deposited is sufficient in view of the amendment of the decree. In my opinion, both the contentions are well founded and must prevail.

    7. Order 21, R. 89(1) of the CPC reads as follows:

    “Where immoveable property has been sold in execution of a decree, any person, either owning such property or holding an interest therein by virtue of a title acquired before such sale, may apply to have the sale set aside on his depositing in court:

    (a) for payment to the purchaser, a sum equal to five per cent, of the purcliase-money, and

    (b) for payment to the decree-holder, the amount specified in the proclamation of sale as that for the recovery of which the sale was ordered, less any amount which may, since the date of such proclamation of sale, have been received by the decree-holder.”

    8. According to the above rule, the person, who may be entitled to make an application to have the sale set aside, must be either owning the property which has been sold in execution of the decree or must be holding an interest therein by virtue of a title acquired before such sale. Mr. Rajeshwari Prasad appearing for the decree-holder, has contended that the claimant, who has lost his claim, does not either own the property or hold an interest therein and, therefore, he is not entitled to make the application. On the other hand, Mr. Kumar counsel for the petitioner, has submitted an argument that the interest required under this rule does not mean a completed interest but also includes an inchoate interest or an interest which one seeks to establish in the Court of law.

    9. His contention is that the word “interest” in that rule should not be given a too narrow meaning as contended by the counsel for the decree-holder, but should be interpreted to have a very wide meaning so as to include every kind of interest which a person claiming to make an application under this rule can establish even by instituting a suit for that purpose. The contention of Mr. Kumar appears to be sound and is supported by two Division Bench decisions of the Madras High Court.

    10. In Dhanammal v. Veeraraghavalu Naidu, AIR 1923 Mad 487 (2), it was held that the purpose of a petitioner who makes a claim under O. 21, R. 58 to a property attached is to have the attachment set aside and even where the right is negatived there is nothing to prevent the same person coming forward and applying to have the sale set aside under R. 89 for the reason that he holds an interest in the suit property. It was further held that the effect of the dismissal of the petitioner's claim Petition is not to decide finally that he had no interest to ask that the sale should be set aside on payment the decree amount plus 5 per cent, into court only to decide that he has no right to have the attachment raised and that the claim petition could not, therefore, operate as res judicata to prevent the admission of an application to pay the decree amount and to get the property released after the sale.

    11. In Virish v. Subba Rao, AIR 1949 Mad 687, the properties which were the subject matter of the sale belonged to one Nawab Hasanali Khan Bahadur and ware sold by him to appellant No. 1 and the father of the appellant No. 2 for a sum of Rs. 45,000. But prior to that sale, there was a suit against this Nawab Hasanali Khan Bahadur and others in which the plaintiff obtained a decree for a sum of money against him. In execution of that decree, the decree-holder attached these properties, whereupon appellant No. 1 and/the father of appellant 2 filed an application under O. 21, R. 58 of the CPC stating that the properties should not be attached because the judgment-debtors had no saleable interest in the same.

    12. The executing court allowed the claim, whereupon the decree-holder filed a title suit under the provisions of Order 21, Rule 63 of the Code for declaration that the suit properties were liable to be attached in execution of this decree. The trial Court dismissed that suit. But on appeal the High Court held that the decree-holder-plaintiff was entitled to a declaration that the sale deed in favour of the appellant was not binding against him. Thereafter the decree-holder continued the execution proceedings in which the properties were sold and purchased by two of the respondents.

    13. After that, the appellants as well as the alienees from them of different portions of the properties deposited the amount and applied for setting aside the sale under O. 21, R. 89 of the CPC. It was contended on behalf of the decree-holder that the claim of the appellants having been negatived in the title suit referred to above, they have no right to make an application under Rule 89 of Order 21. This contention was overruled and Govinda Menon, J., gave the judgment of the Bench, held that the decision in suit under Order 21, R. 63, holding that the decree-holder is not bound by the sale effected by the judgment-debtor in favour of the claimants, and that therefore, the property is liable to be attached cannot be interpreted to mean that the claimants have been held to have no interest whatever in the property.

    14. He further held that the interest may not be sufficient to be put forward as a shield against the decree-holder's claim, but the word “interest” in Order 21, Rule 89, has got a very wide import and should be construed very liberally so that any inchoate right which a party may have over a property may be sufficient “interest” to enable him to apply under Order 21, R. 89. It was accordingly held that where a suit under Order 21, Rule 63, filed by a decree-holder for a declaration that the suit properties are liable to be attached in execution of a decree is decreed, the unsuccessful claimants under Order 21. Rule 58, are not estopped later on, upon the sale of the property in execution, from applying under O. 21, R. 89, for setting aside the sale upon depositing the decretal amount plus five per cent.

    15. Referring to the Full Bench decision in Narasimhachariar v. Raghava Padayachi, AIR 1945 Mad 333 (FB), which was cited on behalf of the decree-holder in support of his contention in that case, his Lordship stated that a decision under O. 21, Rules 58 and 63, becomes conclusive in so far as the parties thereto alone are concerned, and that it is conclusive between the parties to the suit or their legal representatives so far as the execution of the particular decree is concerned, but where the property is sold in execution proceedings arising out of an entirely different decree the claimant will not be precluded from setting up his title against a purchaser.

    16. It is, therefore, manifest that it is only because a claimant has some interest that he can raise an objection in execution of any other decree and this interest is enough to entitle him to make an application under O. 21, R. 89 of the CPC. With great respect to his Lordship, if I may be permitted to say so, I fully agree with the view taken by him. In Mundrika Singh v. Nand Lal Singh, AIR 1941 Pat 204, it was held that where attached property had been sold by auction and a third person within thirty days made an application under O. 21, R. 89 of the CPC, on the strength of a contract of sale executed in his favour by the judgment-debtor before the auction sale, he should be allowed to do so as he had locus standi to make the application under O. 21. R. 89.

    The same view as taken in Rabindra Nath v. Harendra Kumar, AIR 1956 Cal 462 in which it was held that the “title” in O. 21, R. 89 of the CPC, includes not merely completed and perfected title but a title in process of maturity. Both the Patna and the Calcutta cases were cases of contract for sale, which, under Section 54 of the Transfer of Property Act, does not create any interest in the property in question. Nevertheless, that was held to be an interest enough for the purpose of entitling the party to have the sale set aside under O. 21, R. 89 of the CPC.

    17. As against the above cases, counsel for the decree-holder has placed reliance on the cases of Nand Kishore Jha v. Paraoo Mian, 2 Pat LJ 676 : (AIR 1917 Pat 159) and Onkar v. Dhansingh, AIR 1926 Nag 10 (2). In the Patna case, a person who was out of possession of certain immovable property but was litigating to establish his title thereto made a deposit to have the sale set aside and the sale was accordingly set aside. Subsequently, he lost the suit in which he was endeavouring to establish his title to the property in question. He, therefore, claimed to recover the amount which he had so deposited from the person who was found entitled to the property. It was held that he could not recover the same.

    18. In that connection their Lordships held that such a person was not entitled to make a deposit. That case, therefore, has no application to the facts of the present case. In the Nagpur case, a very restricted meaning was given to the word “interest”, and it was held that a person whose claim under R. 58 and a suit under R. 63 have been dismissed cannot apply under R. 89. I have already observed, as held in the case of AIR 1949 Mad 687 that the word “interest” imports a very wide meaning so as to include such a person to make an application under O. 21, R. 89 of the CPC. I am unable to agree with the view taken in the above Nagpur case.

    19. The second point raised in the case is as to the sufficiency of the deposit made by the petitioner. As already stated, the sale proclamation was issued for the recovery of Rs. 468/7/- and the sale was held for a sum of Rs. 478, but subsequently after the sale the amount of the decree was reduced by amendment on an application which had been made much before the sale was held. If the deposit had to be made on the basis of this amount, it is undisputed that the amount was sufficient to have the sale set aside. The amount deposited was Rs. 439.

    20. This sum included the amount of Rs. 415/15/- payable to the decree-holder under the amended decree and five per cent, of the sale amount of Rs. 478 to be payable to the auction-purchaser. Accordingly the deposit is sufficient. But if the petitioner had to deposit the entire sum for which the sale was held, plus five per cent, thereon, it is obviously insufficient. The question, therefore is as to what should be the basis for calculation of the amount to be deposited under the above rule which has already been quoted. Under clause (a) of sub-rule (1) of that rule, a sum equal to five per cent, of the purchase money has to be deposited for the payment to the purchaser, and in this case, that sum has been deposited.

    21. Therefore, the question of sufficiency or otherwise of the amount of deposit is not concerned with the amount required to be deposited under this clause. Clause (b) of that sub-rule requires the depositor to deposit for the payment to the decree-holder the amount specified in the proclamation of sale less any amount which may, since the date of such proclamation of sale have been received by him. The argument advanced on behalf of the decree-holder is that the amount specified in the sale proclamation was Rs. 468/7/- and, therefore, the deposit should have been made of that amount.

    22. On behalf of the petitioner, however, it is submitted that the amount required under clause (b) is for the payment to the decree-holder for the satisfaction of the decretal dues and, therefore, the amount deposited in terms of the amended decree, which alone the decree-holder was entitled to get in full satisfaction of his decree, was sufficient under that clause. I feel inclined to accept this contention. No doubt, R. 89 requires the amount specified in the proclamation of sale to be deposited. Rule 66 of Order 21 lays down what amount should be specified in the sale proclamation.

    23. According to O. 21, R. 66(2)(d), the amount that has to be specified in the proclamation of sale is the amount for the recovery of which the sale is ordered; in other words, the decretal dues which the decree-holder is entitled to recover by a sale of the property is the amount which is required to be specified in the sale proclamation. On reading R. 89 together with R. 66 of O. 21, it is manifest that the amount that is required to be deposited is the amount which the decree-holder is entitled to recover under the decree. That being the position, the deposit in this case, according to the terms of the amended decree, is sufficient to have the sale set aside.

    24. The view that I have taken gains support from a decision of the Nagpur High Court in Vithoba v. Dhanaji, AIR 1948 Nag 126. In that case, the property of the judgment-debtor was sold in execution of a money decree, but before the sale was confirmed, the decree was reversed on appeal and, thereupon, the judgment-debtor applied under O. 21, R. 89 to have the sale set aside and made a deposit of five per cent, under R. 89(a) for payment to the purchaser, but did not make any deposit under R. 89(b) for payment to the decree-holder on the ground that, the decree having been reversed, nothing was due to the decree-holder.

    25. Bose, J. (as he then was), held that as between the judgment-debtor and the decree-holder, the decree was wiped out and, therefore was under the law a constructive receipt within the meaning of R. 89(b) by the decree-holder of what was once due to him and that hence the deposit was sufficient compliance with R. 89. On the above principle in the present casa also it may be safely held that to the extent of the amount to which the decree was reduced, the decree-holder would be deemed, under the law, to have received it constructively and, therefore, the petitioner was entitled to deposit the balance only.

    26. Payment under clause (b) of R. 89 need not be payment in cash or payment through court. Th(payment may be in kind and may be outside the Court. If the entire decretal amount has been so paid, there is nothing to be deposited within the meaning of clause (b). Similarly, if a portion of the decretal amount has only been paid up, the deposit has to be made only of the balance of the decretal dues. In Laxmansing Baliramsing v. Laxminarayan Deostban, AIR 1948 Nag 127, it was held that O. 21, R. 89(1)(b) is satisfied by an unequivocal admission of the decree-holder that his decree was satisfied within thirty days of the date of sale.

    27. In Jyotish Chandra Ghose v. Bireswar Haidar, 39 Cal WN 829, it was held that there was no authority for the proposition that in every case of an application under O. 21, R. 89 of the CPC, for setting aside a sale, there must be a cash deposit in court of the amount specified in the sale proclamation and that the amount received by the decree-holder since the sale proclamation being deductible under R. 89(1)(b) in a case where at the date of the application there is nothing due to the decree-holder by reason of payments made to him out of court since the sale proclamation, whether before or after the sale, the application, accompanied only by a deposit of the compensation money payable to the auction-purchaser, is in order.

    28. In Mahendra Chandra Das v. Parshmani Dasya, 68 Cal LJ 264 : (AIR 1938 Cal 252), it was held that if after a sale the judgment-debtor discharged the decretal amount in full out of court to the decree-holder and deposited five per cent of the purchase money to be paid to the petitioner, he was entitled to have the sale set aside by an application under O. 21, R. 89 of the CPC. A similar view has been taken in AIR 1956 Cal 462 and in the Full Bench decision of the Madras High Court in Muthuvenkatapathy Reddy v. Kuppu Reddi, AIR 1940 Mad 427 (FB).

    29. For the reasons given above, I hold that the petitioner was entitled to make an application under O. 21, R. 89 of the CPC for setting aside the sale and the amount deposited on the basis of the amended decree was sufficient to have the sale set aside.

    30. In the result, the application succeeds and is allowed with costs, the judgment and the order of the lower appellate court are set aside and those of the Munsif setting aside the sale are restored. Hearing fees Rs. 100.

    31. V. Ramaswami, C.J:— I agree.

    G.M.J

    32. Application allowed.

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    Radharaman Choudhary v. Gulab Thakur And Others Opposite Party.
    (Aug 19, 1958)