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  • rule 66, order XXI of the Civil Procedure Code,
  • XXI, rule 54, sub-clause (2)
  • clause (e) of rule 66(2)
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Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
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  • rule 66, order XXI of the Civil Procedure Code,
  • XXI, rule 54, sub-clause (2)
  • clause (e) of rule 66(2)
Smart Summary

Structured Summary of the Opinion (Pullan, J. and Sulaiman, J.)

Factual and Procedural Background

This is an appeal by an auction purchaser (who was also the decree-holder) against an order of the Subordinate Judge setting aside a sale of certain property. The sale in question was proclaimed for 27 February 1927 but was in fact held on 28 February 1927, when the property was sold for Rs. 6,500 (described in the opinion as a very low price for the property). The Subordinate Judge set the sale aside on the ground of irregularities in the proclamation and/or conduct of the sale; the purchaser appealed from that order. The opinion addresses whether there was a valid proclamation for the sale as held on 28 February and whether any irregularity in the proclamation or conduct caused the low sale price.

Legal Issues Presented

  1. Whether there was any legal proclamation of the sale for 28 February 1927 (i.e., whether the proclamation originally made for 27 February could validly be treated as a proclamation for the 28th).
  2. Whether the proclamation itself (the proclamation purporting to be for 27 February) was irregular — in particular, whether omission to state the valuation, failure to affix the proclamation to the property, or defects in the beat of the drum constituted a material irregularity.
  3. Whether any material irregularity in proclamation or conduct of the sale caused the property to fetch a substantially inadequate price, thereby justifying setting the sale aside under the relevant provisions of Order XXI.

Arguments of the Parties

Appellant's Arguments

  • The appellant (auction purchaser) argued, through counsel, that under Order XXI, Rule 69 the court has an absolute discretion to adjourn any sale to a specified day and hour and that if the adjournment is not for a period exceeding fourteen days no fresh proclamation is necessary. On that basis the appellant contended that changing the date from 27 February to 28 February did not require fresh proclamation or notice.
  • The appellant (decree-holder purchaser) adduced evidence that there had been a fresh beat of the drum on 27 and 28 February announcing the sale for 28 February.

Respondent's Arguments

  • The respondent argued that the court could not alter the date fixed for the sale unknown to the parties and that a proclamation for 27 February is not a proclamation for 28 February; therefore the sale held on 28 February lacked the statutory proclamation required by Order XXI and amounted to a sale without notice.
  • The respondent contended that absence of due notice to the parties (including the Court of Wards representing the judgment-debtor) could itself amount to a material irregularity, and that the absence of representatives at the sale was material to the inadequacy of the price realized.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Saadatmand Khan v. Phul Kuar (Privy Council) Decision quoted for the proposition that if the court states a valuation in the proclamation, that statement is a material fact. The court (Pullan, J.) interpreted this precedent as not requiring that a valuation must always be stated in the proclamation; rather, if the court does state a valuation it will be a material fact, but the Privy Council did not hold that valuation must in every case be included in the proclamation.

Court's Reasoning and Analysis

The opinion contains two judgments (Pullan, J. and Sulaiman, J.). Each judge addresses overlapping legal questions: (a) the sufficiency/regularity of the proclamation, and (b) whether absence of notice or other irregularities caused the inadequate sale price.

Pullan, J. — Reasoning (step-by-step)

  1. Established the factual starting point: proclamation apparently made for 27 February; sale actually held on 28 February; the purchaser (decree-holder) conceded that the property was of much greater value than the sale price.
  2. First asked whether the proclamation for 27 February was itself irregular. Noted the proclamation contained ordinary statutory details under rule 66, Order XXI (description, incumbrances, decree amount) but omitted a statement of the property's value.
  3. Considered Privy Council authority (Saadatmand Khan) relied upon by the lower court. Concluded that Privy Council only held that if valuation is stated it is a material fact, but did not impose a duty on courts to state a valuation in every case. Expressed the view that compelling courts to give a valuation might undesirably affect price; therefore omission of valuation is not automatically a material irregularity.
  4. Addressed other minor irregularities noted in the proclamation (possible improper place of drum-beating; notice affixed to a tree rather than the property). Held that, absent definite proof that these irregularities affected the price, he would not treat the proclamation for 27 February as defective.
  5. Turned to the essential point: the sale was not held on 27th but on 28th because the amin reported that the 27th was a Sunday and on 24th the court ordered the sale to be held on the 28th. Examined whether the change of date was notified effectively to bidders. Considered Order XXI, Rule 69.
  6. Interpreted Rule 69 as authorizing adjournment by the court or the officer when the date of sale arrives (adjournment on the day). Held that when adjournment is within fourteen days no fresh proclamation is necessary. However, held the court cannot alter the date unknown to the parties at any time — a sale held under such circumstances would be a sale of which no notice had been given.
  7. Stated unequivocally that a proclamation for 27 February is not a proclamation for 28 February; unless it is shown that parties were present when the date was altered, they cannot be treated as having notice of the 28th. Found there was therefore no proclamation for the 28th as required by rule 66(2) and no notice to parties concerned (specifically noted no notice to the Court of Wards representing the judgment-debtor), and this constituted a material irregularity.
  8. Concluded that, given the admitted very low sale price and absence of notice to interested parties, the irregularity caused the low price and warranted dismissal of the purchaser's appeal (i.e., affirming the setting aside of the sale).

Sulaiman, J. — Reasoning (step-by-step)

  1. Agreed that the appeal ought to be dismissed. Started by stating the legal standard under Order XXI, Rule 90: the judgment-debtor must show a material irregularity or fraud in publishing or conducting the sale and must show substantial injury from that irregularity or fraud.
  2. Accepted that substantial injury was established: property sold for just over Rs.6,000 though several persons would have paid much more; the judgment-debtor offered to retake the property on payment of Rs.10,000 but the decree-holder purchaser did not agree to accept less than Rs.5,000 (this factual detail is recorded in the opinion).
  3. Examined omission to state valuation in the proclamation and concluded that omission is not per se a material irregularity in all cases — it may be material in some circumstances but not necessarily here.
  4. Considered statutory requirements of Order XXI, Rule 54(2) (proclamation by beat of drum or other customary mode at or adjacent to the property and affixation of a copy on a conspicuous part of the property and the court-house). Observed the proclamation was not affixed on the property but hung on a pipal tree some distance away. Held that omission to affix on the property when expressly required by the Act was a material irregularity which might have contributed to absence of bidders.
  5. Focused on the change of date: the court directed sale to Monday because of the amin's report about Sunday; no notice of alteration was given to the judgment-debtor or Court of Wards; there was conflicting evidence about fresh beats of the drum, but the subordinate judge rejected the decree-holder's evidence of a fresh beat as unworthy of belief and Sulaiman, J. saw no reason to disagree with that finding of fact.
  6. Addressed the appellant's Rule 69 argument that no fresh proclamation was necessary if the adjournment was within fourteen days. Noted that the rule's language is ambiguous and declined to construe "adjournment" so narrowly as to exclude postponement by an order passed in advance; nevertheless, held that absence of due notice can in certain circumstances amount to a material irregularity.
  7. Emphasized that the court's order changing the date was passed on the amin's report without clear reason why Sunday was objectionable, and prospective purchasers might have arranged to attend on the proclaimed date. Observed amin's absence on the 27th meant bidders arriving that day would have had no means to know of the postponement to the next day.
  8. Concluded that the cumulative effect of omissions (failure to affix notice on property, failure to give notice of changed date, amin's absence) amounted to a material irregularity and caused substantial loss to the judgment-debtor; accordingly dismissed the appeal and ordered costs.

Holding and Implications

HOLDING: The appeal by the auction purchaser is DISMISSED; the Subordinate Judge's order setting aside the sale is thereby affirmed.

Implications for the parties:

  • The decision upholds the Subordinate Judge's finding that there was a material irregularity in the publication/conduct of the sale (notably the absence of statutory notice on the property and the lack of effective notice of the altered sale date), and that this irregularity caused the property to be sold at a substantially inadequate price.
  • As recorded in the opinion, the sale was set aside and the purchaser's appeal against that order failed; Sulaiman, J. expressly stated he would dismiss the appeal with costs.

No broader principle or binding new precedent beyond the application of the cited provisions of Order XXI and the Privy Council remark in Saadatmand Khan v. Phul Kuar is set out in the opinion; the courts applied established principles concerning material irregularity, notice, and the causal link to inadequate sale price in the circumstances of this case.

    Rup Kishore (Decree-Holder) v. Collector Of Etah And Others (Judgment-Debtors).

    Pullan, J.:— This is an appeal by an auction purchaser against an order of the Subordinate Judge setting aside a sale. The sale took place on the 28th of February, 1927, and certain property was sold for Rs. 6,500. The purchaser was the decree-holder. It is alleged, find the lower court has held, that the property is of a much greater value and this fact is conceded by the appellant. We have, however, to consider whether the low price was caused by a material irregularity in the proclamation or conduct of the sale. The first question raised is whether there was any legal proclamation of the sale for the 28th of February, and the second is whether, supposing that the proclamation made for the 27th of February can be taken to be a proclamation for the sale held on the 28th, that proclamation itself was irregular. I will take the second point first. The proclamation of sale 1 for the 27th February contains the ordinary details required by law under rule 66, order XXI of the Civil Procedure Code, that is to say there is a description of the property to be sold and a statement of the incumbrances and the amount of the decree. There is no statement of the value of the property, and the lower court has held that this is a material irregularity, relying upon the judgment of their Lordships of the Privy Council in the case of Saadatmand Khan v. Phul Kuar(1). I do not consider that the remarks of their Lordships in that case are authority for holding that the court must under clause (e) of rule 66(2) give a valuation of the property. What their Lordships held was that if the court stated the valuation of the property, that must be considered to be a material fact. They did not say that this being a material fact must always be stated by the court in the sale proclamation, and I am of opinion that it will be unwise to direct that the court should in every case give a valuation for the property to be sold. It is clear that such action on the part of the court might effect the price in an undesirable manner, and although certainly it is open to the court to state anything which it considers material for the purchaser to know, and undoubtedly the opinion of the court as to the value of the property is a material fact, yet I am not of opinion that the court should be compiled by law to give this guide to the purchaser. For the rest there are certain minor irregularities which have been Mentioned in connection with this proclamation, thus there is some doubt as to the drum having been beaten at the right place, and it is said that the notice was not affixed to the property itself but on a tree in the neighbourhood. Failing definite proof that these irregularities affected the price finally realised at the sale, I should not be disposed to hold that the proclamation was defective as regards the sale fixed for the 27th of February.

    But the sale did not take place on the 27th of February. It took place on the 28th. The reason for this is that on the 21st of February the amin who was the sale officer informed the court that the 27th of February was a Sunday, and on the 24th of February the court gave an order to the amin to hold the sale on the 28th of February instead. The lower court has gone into the evidence as to whether the change of date was notified by beat of drum and it has found that the vidence is conflicting, but in my opinion this is not an essential point in the case. Either the court could adjourn the sale to the 28th under rule 69 of order, XXI, in which case the old proclamation for the 27th of February was still a valid proclamation, and as the new date was within fourteen days there was no need for any further action or the court could not alter the date from the 27th of February to the 28th without giving notice to the parties concerned Rule 69, clause (1) runs as follows:—“The court may in its discretion adjourn any sale hereunder to a specified day and hour and the officer conducting any such sale may in his discretion adjourn the sale, recording his reasons for such adjournment.” It is clear to me that this rule, so far as it relates to the officer conducting the sale, can only apply to an adjournment on the date of the sale, and I see no reason to form a different opinion as to the rule relating to the court. In my opinion the rule means that when the date of the sale arrives it may be adjourned either by the court; or by the officer conducting the sale. Such an adjournment takes place when the parties have received their notice and have had an opportunity of appearing at the place of sale. It is for this reason that here is no need for a fresh proclamation unless the adjournment is for a longer period than fourteen days. But I am not prepared to hold that the court can, unknown to the parties, at any time alter the date fixed for the sale to some other date without giving notice. In my opinion a sale held under such circumstances would be a sale of which no notice has been given and consequently no proclamation.

    A proclamation for the 27th of February is not a proclamation for the 28th of February and a notice given for the 27th of February, is not a notice given for the 28th of February. Unless the parties could be proved to have been present on the 24th of February when the date was altered, it cannot be held that they have had a notice that the sale would be held on the 28th, and I would therefore find that this sale on, the 28th was made without any proclamation for that date as required under rule 66(2) and without any notice being given to the parties concerned. There is therefore a material irregularity, and as it is admitted that the sale took place for a very low value I am prepared to find that the irregularity committed is the cause of the low price. I am further led to this view by the fact that no notice of the altered date was given to a the Court of Wards who represent the judgment-debtor in this case, and neither the judgment-debtor himself nor the Court of Wards had any representative present at the time of the sale.

    In these circumstances I would dismiss this appeal.

    Sulaiman, J.:— I agree that this appeal ought to be dismissed. Before a sale is set a side under order XXI, rule 90, it is incumbent upon the judgment-debtor to make out that there was a material irregularity or fraud in publishing or conducting the sale, and he must further show that he has sustained substantial injury by reason of such irregularity or fraud.

    That he has sustained a substantial injury admits of no doubt. The property was actually sold for a sum just exceeding Rs. 6,000, but several persons are prepared to offer much more. Indeed the judgment-debtor himself offered to retake the property on payment of Rs. 10,000, but the decree-holder who has himself purchased the property did not agree to accept less than Rs. 5,000. There can, therefore, be no doubt that the property has been sold very cheap and the judgment-debtor has suffered loss. The question for consideration is whether there has been a material irregularity and whether the loss is its consequence.

    The learned Subordinate Judge has referred to the fact that there was no mention of any value in the proclamation of sale. It is difficult to say that in all cases an omission to specify the valuation is necessarily a material irregularity, though there may be circumstances in which it may become necessary to Specify the value in order to enable the bidders to judge of the value of the property. I would therefore not be prepared to hold that in the present case the omission was a material irregularity.

    Under order XXI, rule 54, sub-clause (2) it was necessary that the order for sale should be proclaimed at some place on or adjacent to the property by beat of drum or other customary mode and that a copy of the order should be affixed on a conspicuous part of the property and upon a conspicuous part of the court house. Admittedly the sale proclamation was not affixed on any part of the property which was going to be sold. It was hung up on a pipal tree some distance from the place. An omission to affix the sale proclamation on the property itself, when it was required expressly by the Act, was a material irregularity. That fact might have contributed towards the absence of sufficient bidders on the date of the sale which prevented the proper price from being offered.

    The main circumstance which undoubtedly has led to the property being sold for an inadequate price is that, on the report of the amin that the date previously proclaimed was a Sunday, the court directed that the sale should take place on the following Monday. No notice of this alteration of the date was given to the judgment-debtor or the Court of Wards in which the property had become vested. Admittedly no fresh proclamation of sale was issued. The evidence led by the decree-holder was to the effect that there was a fresh beat of drum on the 27th and 28th of February, 1927, announcing that the sale would take place on the 28th of February. The learned Subordinate Judge who heard this evidence has considered it unworthy of belief and has rejected it. I see no reason for taking a contrary view.

    The question for consideration is whether, there has been a material irregularity in the publication of the sale. The learned advocate for the appellant argues that under order XXI, rule 69 the court has an absolute discretion to adjourn any sale to a specified day and hour and that if the adjournment is not for a longer period than fourteen days no fresh proclamation is necessary. The rule however merely lays down that if the adjournment is for more than fourteen days a fresh proclamation shall be made. The argument addressed to us on behalf of the respondent is that under this rule the court can adjourn the sale only by an order passed on that very day, i.e the day fixed for the sale, and that it would not be a case of adjournment if the date is altered or the sale is postponed in advance. The language of the rule is undoubtedly ambiguous, but I am not prepared to commit myself to holding that the word “adjournment” Would not be wide enough to cover a postponement by an order passed in advance.

    But it seems to me that no exhaustive list of material irregularities is given in order XXI, and the absence of due notice to the parties concerned may in certain circumstances itself amount to a material irregularity. The order in this particular case was passed on a report received from the amin. It is not at all clear why Sunday was necessarily objectionable. The sale had been previously proclaimed to take place on that date and prospective purchasers might have made arrangements to be present on that date. The date was suddenly altered without any notice having been given to the Court of Wards, which might have liked, to send a representative to be present on that date. In this particular case the amin did not appear at the proper, time and place on the 27th of February to announce to the bidders who arrived there that the sale would take place on the next day, but merely absented himself. Thus even if bidders arrived on the scene on the 27th, they would have no means of knowing that the sale was going to take place the very, next day. I am therefore of opinion that the cumulative effect of the entire proceedings is that there had been a material irregularity in the publication of the sale and that in consequence of it the judgment-debtor suffered substantial loss inasmuch as the property had been knocked down, for a grossly inadequate price. I would therefore dismiss the appeal with costs.

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    Comments

    Rup Kishore (Decree-Holder) v. Collector Of Etah And Others (Judgment-Debtors).
    (Jul 16, 1929)