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Bibi Sharofan, Judgment-Debtor, v. Mahomed Habibuddin , Opposite Party.
Structured Summary of the Opinion (Mookerjee, J.; concurring: Caspersz, J.)
Factual and Procedural Background
The opinion concerns a challenge to an execution-sale proceeding. The chronology and procedural steps (as set out in the opinion) are:
- 10 June 1908 — Ehaya Hossain obtained a mortgage-decree against the present Petitioner.
- 11 February 1909 — The decree was made absolute.
- 13 July 1909 — Execution was taken out.
- 20 September 1909 — Properties were sold at auction; the purchaser at the sale was Mahomed Habibuddin.
- 5 October 1909 — The judgment-debtor applied under Order XXI, rule 90 of the Civil Procedure Code (1908) for reversal of the sale, alleging fraud and material irregularity in publication and conduct causing substantial injury.
- 9 October 1909 — The judgment-debtor applied for leave to deposit the decretal amount; two days later the Court granted that application.
- During the pendency of the rule under r. 90 the decree-holder intimated willingness to accept the decretal amount and to allow the sale to be set aside; the Petitioner alleges payment was made and satisfaction certified to the Court.
- 12 April 1910 — The Subordinate Judge set aside the sale on the ground of irregularity (non-publication of requisite notices) and resulting substantial injury to the judgment-debtor.
- The auction-purchaser alone appealed to the District Judge; the District Judge held that neither material irregularity nor fraud had been established, that substantial injury had not been proved, set aside the order of the Court of first instance and directed confirmation of the sale.
- The judgment-debtor (Petitioner) obtained a Rule to consider whether the auction-purchaser's appeal to the District Judge was competent, arguing that the appeal was incompetent because the decree-holder had consented to setting the sale aside and accepted payment (relying upon Poorna Chandra v. Doorga Frosad).
- The present opinion disposes of that Rule.
Legal Issues Presented
- Whether an auction-purchaser at an execution sale has a right to be heard and to appeal when an original Court sets aside that sale under Order XXI, r. 90 (i.e., whether the auction-purchaser has locus standi to contest an order setting aside an execution sale).
- Whether an arrangement or consent by the decree-holder (including acceptance of the decretal amount) to have the sale set aside precludes the auction-purchaser from appealing and thereby defeats the purchaser's independent rights.
- Whether time-limits and deposit provisions of the Code (notably r. 89 and r. 92(2) of Order XXI) affect the Court's ability to reverse a sale by enlargement of time in the present circumstances.
Arguments of the Parties
Judgment-Debtor's (Petitioner's) Arguments
- The appeal by the auction-purchaser to the District Judge was incompetent because the decree-holder had signified willingness to have the sale set aside and had accepted payment in full satisfaction of the decree; by consenting and accepting payment the decree-holder was precluded from challenging the sale, and the auction-purchaser (being no more than a purchaser) had no locus to challenge the setting-aside of the sale.
- Reliance was placed upon the authority of Poorna Chandra v. Doorga Frosad (and related Putni Regulation authority) to support the proposition that a purchaser cannot, in certain contexts, maintain an appeal alone.
- It was argued that before confirmation of an execution sale the auction-purchaser has no vested interest (or no such interest) to entitle him to invite the Court to confirm the sale if the decree-holder is not in a position to ask for confirmation.
Appellants'/Auction-Purchaser's Arguments (as identified by the Court)
- The auction-purchaser is entitled to notice and to be heard before an execution sale is set aside (Order XXI, r. 92(2)); that entitlement indicates he is treated as a party for the purposes of proceedings to set aside a sale.
- The auction-purchaser has an equitable or inchoate right in the property (payment of purchase-money and accepted bid) which gives him a substantive interest and a right to appeal if prejudiced by an order setting aside the sale.
- The auction-purchaser's right to test the legality of an order setting aside the sale is independent of the decree-holder's conduct or any arrangement between decree-holder and judgment-debtor; the purchaser is not the decree-holder's representative and should not be bound by the decree-holder's compromise.
- Authorities (both domestic and foreign) support the purchaser's right to appeal from an order setting aside a judicial sale where he has complied with the terms of the sale and paid the purchase-money.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Poorna Chandra v. Doorga Frosad (also cited as Poorna Chandra Roy v. Doorga Prasad Babu) | Authority relied on by the Petitioner to argue that a purchaser cannot, in certain contexts (Putni Regulation suits), appeal alone or maintain an appeal independent of the principal party. | The Court distinguished that case as factually and legally different (Putni Regulation context) and held it did not establish a comprehensive rule preventing purchasers in execution-sale proceedings under the Civil Procedure Code from appealing. |
| Kripali Singh v. Pairoo Raut | Support for the requirement of notice to persons affected before making an order to set aside a sale (linked to Order XXI, r. 92(2)). | The Court relied on it to show that the auction-purchaser is entitled to notice and to be treated as a person affected (i.e., a party) in proceedings to set aside a sale. |
| Srinath Das v. Probodh Chunder Das | General proposition on who may appeal: an appellant must be a party (or treated as one), or be legal representative, or have privity of estate/title/interest apparent on the record; also that appellant must have an interest and be prejudicially affected. | The Court applied these principles to show that the auction-purchaser satisfied the requisites for a competent appeal (party status for notice purposes, interest in subject-matter, prejudicial effect). |
| Brij Mohan Thakur v. Umanath Chowdhury | Statement that if no successful application is made to set aside a sale the Court's duty is to confirm the sale as regards parties to the suit and the purchaser. | Used to support the proposition that the purchaser has a stake that the sale be confirmed if objection fails. |
| Adhur Chunder v. Aghote Nath | Authority that an auction-purchaser does not acquire full title until confirmation; the purchaser has an inchoate (equitable) right. | Cited in support of the statement that the purchaser has an equitable or inchoate right which becomes absolute on confirmation, thereby giving him a sufficient interest to appeal. |
| Bhawani Koer v. Mathura Prasad | Reviewed authorities concerning the inchoate/equitable rights of the auction-purchaser and when title becomes absolute. | Relied upon for the same proposition regarding the purchaser's inchoate right until confirmation. |
| Hiralal Ghose v. Chandta Konta Ghose | Principle that whether an appeal is competent depends upon the nature of the order assailed, not the status of the party preferring the appeal. | The Court invoked this to hold that a purchaser can appeal if the order falls within the scope of appealable orders, irrespective of his formal status. |
| Joytara v. Prankristo | Acceptance of the Hiralal Ghose principle; supports that appeal competence depends on nature of order, not party status. | Used as supporting authority for the same proposition. |
| Gopal Singh v. Dular Kuar | Held that an auction-purchaser can appeal against an order made to his prejudice in the course of proceedings for reversal of the sale. | Applied to show the purchaser's right to appeal where adversely affected by an order setting aside the sale. |
| Kanthi Ram v. Bankey Lal | Same principle as Gopal Singh: purchaser may appeal against adverse orders made in proceedings to set aside sales. | Reinforced the conclusion that purchasers should be heard and can appeal in such circumstances. |
| Blossom v. Milwaukee Ry. Co. (Supreme Court of the United States) | U.S. authority ruling that a purchaser at a judicial sale who complied with terms and paid purchase-money has right to appeal from an order setting aside the sale. | Quoted and adopted as persuasive authority for the purchaser's right to appeal; the Court approvingly quoted earlier chancery authority (Delaplaine v. Lawtence). |
| Delaplaine v. Lawtence | Chancellor Walworth's dictum describing purchasers' inchoate rights entitling them to a hearing and, if necessary, to appeal when a sale is improperly set aside. | Quoted with approval in Blossom and relied on here to reinforce that purchasers acquire inchoate rights enforceable by appeal. |
| Kneeland v. American Land T. Co. | One of several U.S. decisions confirming the purchaser's right to appeal from an order reversing a judicial sale. | Cited among numerous decisions supporting the principle that purchasers who comply with sale terms can appeal an order setting aside the sale. |
| Magann v. Segal | Another decision confirming purchaser's right to appeal. | Used as precedent in the line of authorities upholding the purchaser's right to challenge reversal of a sale. |
| Floutnoy v. Smith | Decision confirming purchaser's appellate rights. | Included in the list of authorities supporting the purchaser's right to appeal. |
| County v. Bunch | Decision supporting purchaser's right to appeal from reversal of a sale. | Relied on as part of the broader body of authority. |
| Penon v. Ctieghton | Decision listed among authorities confirming the purchaser's appellate right (text uses this spelling). | Included as part of the supportive authority cited by the Court. |
| Todd v. Gallego | Decision confirming purchaser's right to appeal. | Cited in the catalog of supporting authorities. |
| Wood v. Seattle | Decision confirming purchaser's right to appeal from an order reversing a judicial sale. | Also cited among decisions upholding purchasers' rights to appeal. |
| In re Robinson | Authority showing that an unsuccessful bidder (who acquired no interest) cannot appeal. | Distinguished from purchasers who have paid and acquired inchoate/equitable rights; used to show limits of appellant status. |
| Thomas v. Elliott | Authority showing that the purchaser's right of appeal may be restricted or removed by statute. | Noted as illustrating that statutory provisions can limit otherwise recognized appellate rights of purchasers. |
| Murray v. Guse | Example where co-Defendants (lien-holders) could appeal an adverse judgment despite the owner (co-Defendant) failing to appeal. | Applied by analogy to show that an auction-purchaser may appeal even if the decree-holder does not. |
| French v. Peters | Illustration of the doctrine that a Defendant injured by a judgment against a co-Defendant can appeal despite the co-Defendant's failure to appeal. | Cited to support the independence of the purchaser's right to appeal from the decree-holder's conduct. |
| McDaniel v. ??? | Listed among cases illustrating the principle that one Defendant may appeal although co-Defendants do not (the opinion contains an unresolved name). | The Court cites it as an illustration; the opinion as provided does not supply the full name or expanded application beyond that purpose. |
| Arthur v. Reed | Another illustration that a Defendant aggrieved may appeal even though another Defendant does not. | Used by analogy to support the purchaser's independent right to appeal. |
| Putni Regulation authorities (context of Poorna Chandra case) | Related to special rules under the Putni Regulation (sec. 14) concerning reversal of sales and appeals by purchasers in that special regulatory context. | The Court treated Putni Regulation cases as distinguishable from ordinary execution-sales under the Civil Procedure Code and did not accept a blanket rule from them to the present case. |
Court's Reasoning and Analysis
The Court's analysis proceeds in a sequence of legal propositions tied closely to statutory provisions and precedent:
- The auction-purchaser is entitled to be heard before an execution sale at which he purchased is set aside. This entitlement is grounded in Order XXI, r. 92(2) (the proviso that no order setting aside a sale shall be made unless notice of the application has been given to all persons affected), and supported by Kripali Singh v. Pairoo Raut.
- The purchaser's entitlement to notice shows he is treated as a party to the proceedings to set aside a sale; that party-status is a prerequisite for being able to appeal if prejudiced.
- The Court applied the general requirements for a valid appeal (as articulated in Srinath Das v. Probodh Chunder Das): the appellant must be a party (or treated as such), have an interest in the subject-matter, and be prejudicially affected by the order. The auction-purchaser satisfies these requisites because he has paid the consideration and thus has a substantial equitable/inchoate interest which is perfected upon confirmation.
- The Court relied on authorities (Adhur Chunder, Bhawani Koer, Brij Mohan Thakur, and others) to explain that purchasers have only an inchoate or equitable right until confirmation but that this right is sufficient to ground a right to be heard and to appeal.
- The Court noted statutory developments under the Code of 1908 (reference to sec. 65) which treat the property as vested in the purchaser from the time of sale, subject to confirmation; and reiterated the principle (Hiralal Ghose and Joytara) that competence of appeal depends on the nature of the order, not the status of the party.
- The Court surveyed domestic and foreign authorities (including the U.S. Supreme Court in Blossom v. Milwaukee Ry. Co. and supporting chancery dictum in Delaplaine v. Lawtence) to show a consistent principle: a purchaser who complies with the sale terms and pays purchase-money has a right to appeal from an order setting aside the sale.
- The Court held that the purchaser's rights are independent of any omission or compromise by the decree-holder. The purchaser is not the decree-holder's representative; the decree-holder's acceptance of payment or willingness to have the sale set aside cannot bind the purchaser or defeat the purchaser's independent right to insist on the validity of his purchase.
- The Court observed that Order XXI, r. 89 contemplates that an execution sale may be set aside on payment of the judgment-debt and statutory damages to the purchaser within a prescribed time; permitting a decree-holder and judgment-debtor to circumvent those statutory protections by private arrangement would render the rule futile.
- The Court considered but declined to order reversal of the sale under r. 89 on its own motion because r. 92(2) requires the deposit to be made within thirty days from the date of sale and the Court had no power under sec. 5 of the Limitation Act or sec. 148 of the Civil Procedure Code of 1908 to enlarge that time; hence the Court could not relieve the judgment-debtor from the statutory time-limit.
- On these grounds the Court concluded that the auction-purchaser's appeal to the District Judge was competent and that there were no grounds for interfering with the District Judge's order in the exercise of revisional jurisdiction.
Holding and Implications
Holding:
Rule discharged.
Implications and direct effects:
- The Court held that an auction-purchaser at an execution sale has an independent right to be heard and to appeal against an order of the original Court setting aside the sale; the purchaser's rights are not defeated merely because the decree-holder accepted payment or agreed to set aside the sale.
- The District Judge's confirmation of the sale (reversing the Subordinate Judge's order setting the sale aside) was not interfered with by this Court in revisional jurisdiction.
- The Court declined to exercise power to reverse the sale under r. 89 because the statutory time for deposit (30 days) could not be enlarged; this preserves the operation of the time-limits in Order XXI (r. 89 and r. 92(2)).
- The Court emphasized that its conclusions are founded on established principles of notice, party-status, interest, and prejudice as requisites for appeal, and on a body of precedent both domestic and foreign recognizing purchasers' rights to appeal — thereby affirming existing principles rather than announcing a novel, sweeping rule.
- Costs: The Court ordered that there will be no order for costs in this Court.
Note: This summary is strictly confined to the statements and materials contained in the provided opinion. Where the opinion used imprecise or partially transcribed case-names (represented in the opinion by "???" in places), the same wording as in the opinion has been preserved and not supplemented.
Mookerjee, J.:— We are invited in this Rule to consider the legality of an order by which the Court of Appeal below, in reversal of an order of the Court of first instance, has directed the confirmation of an execution sale. There is no controversy as to the circumstances under which the order has been made. One Ehaya Hossain obtained a mortgage-decree against the Petitioner on the 10th June 1908. The decree was made absolute on the 11th February 1909. Execution was taken out on 13th July 1909, and the properties were purchased at the auction sale which followed on the 20th September 1909, by one Mahomed Habibuddin. On the 9th October 1909, the judgment-debtor applied for leave to deposit the decretal amount, and two days later the Court granted the application. The judgment-debtor, however, on the 5th October 1909, made an application under r. 90 of Or. 21 of the Civil Procedure Code of 1908 for reversal of the sale on the ground of fraud and material irregularity in its publication and conduct, which had resulted in substantial injury to the. Petitioner. During the pendency of this proceeding, the decree-holder intimated to the Court his willingness to accept the decretal amount and to allow the sale to be set aside, if the judgment-debt was satisfied. Thereupon, the Petitioner alleges, he paid the sum to the decree-holder who certified payment to the Court. On the 12th April 1910, the Subordinate Judge set aside the sale, not on the ground that as the decree-holder had consented to its reversal it could not stand good, but on the ground that the sale had been irregular and the judgment-debtor had suffered substantial injury by reason of the non-publication of the requisite notices and sale proclamation. The auction-purchaser alone appealed against this order to the District Judge. The learned Judge held upon the evidence that neither material irregularity nor fraud had been established, and that the alleged substantial injury had not been proved. In this view, he set aside the order of the Court of the first instance and directed the sale to be confirmed. The judgment-debtor then applied to this Court and obtained the Rule now under consideration on the ground that the appeal was incompetent because as the decree-holder had ??? to have the sale set aside and by acceptance of a sum in full satisfaction of the judgment-debt had precluded himself from challenging its validity, the auction-purchaser had no locus standi in the matter. In support of this proposition, reliance has been placed upon the case of Poorna Chandra v. Doorga Frosad. It has further been argued that before an execution sale has been confirmed, the auction-purchaser has no interest in the property, at any rule, no such interest therein as would entitle him to invite the Court to confirm it, even though the decree-holder was not in a position to ask for its confirmation. The question raised is of some novelty and apparently of first impression, but upon well-recognised principles we are unable to hold that the contention of the judgment-debtor should prevail.
In the first place, it cannot in our opinion be disputed that the auction-purchaser is entitled to be heard before the execution sale at which he has purchased is set aside. This is manifest from Or. 21, r. 92, sub-r. 2, the proviso to which lays down that no order upon an application to set aside a sale shall be made unless notice of the application has been given to all persons affected thereby. See also Kripali Singh v. Pairoo Raut(2). In the second place, the auction-purchaser is not concluded by the decision of the original Court; it is open to him to take the matter to the Court of Appeal, if he has been prejudiced by the order, and obtain its reversal on the ground that it is erroneous. This conclusion follows from fundamental principles which regulate the right of appeal. As was pointed out by this Court in the case of Srinath Das v. Probodh Chunder Das(3), as a general proposition of law no one can appeal from a judgment or decree unless he was a party to the action or was treated as such, or is the legal representative of a party, or has privity of estate, title or interest apparent on the face of the record. Another requisite of a valid appeal is that the Appellant has an interest in the subject-matter of the proceeding. A third requisite of a valid appeal is that the Appellant should have been prejudicially affected by the judgment or order complained of. Now, in the case of an appeal by an auction-purchaser against an order of the original Court by which the execution sale has been set aside, it cannot be disputed that the auction-purchaser was a party to the proceeding in the Court of first instance. The very circumstance that he is entitled to notice before any order is made to his prejudice shews conclusively that be is treated as a party to the proceedings for reversal of the sale. He has also a substantial interest at stake, because he has paid the consideration for the purchase of the property, and, as observed by their Lordships of the Judicial Committee in Brij Mohan Thakur v. Umanath Chowdhury(4), if no application is successfully made to set aside the sale there is only one duty left to the Court, namely, to pass an order confirming the sale as regards the parties to the suit and the purchaser. Again as pointed out in the case of Adhur Chunder v. Aghote Nath(5) and in other cases reviewed in Bhawani Koer v. Mathura Prasad(6), an auction-purchaser does not acquire a full title till the confirmation of the sale, he has what has been described as an inchoate or an equitable right which is perfected or becomes absolute upon confirmation.
This view is strengthened by the alteration in the law made by the Code of 1908, under which (sec. 65) the property is deemed to have vested in the purchaser from the time when the property is sold and from the time when the sale becomes absolute upon confirmation under r. 92, sub-r it is may further be observed, as pointed out by this Court in the case of Hiralal Ghose v. Chandta Konta Ghose(7), which upon this point was accepted as good law in Joytara v. Prankristo(8) that whether an appeal is competent or not depends, not upon the status of the party who prefers the appeal, but upon the nature of the order which is assailed. In the case just mentioned, it was held that if an order is one within the scope of sec. 244 of the Code of 1882, it can be challenged by way of appeal by the auction-purchaser precisely in the same manner as its validity can be contested by the decree-holder or by the judgment-debtor. On this principle, it was ruled in the case of Gopal Singh v. Dular Kuar(9) and Kanthi Ram v. Bankey Lal(10) that the auction-purchaser can appeal against an order made to his prejudice in the course of proceedings for reversal of the sale. It was observed that as it is the duty of the Court, where an objection has been disallowed, to confirm the sale as regards the parties to the suit and the purchaser, it is equally the duty of the Court to hear the purchaser if he appears to answer the objection of the judgment-debtor or decree-holder to the sale, and if he has to be heard in the first Court there is no intelligible reason why he should not be heard in the second Court whether he appears as Appellant or Respondent. That this view is based not upon any technical rules of procedure but upon broad principles of justice, equity and good conscience is in our opinion incontestable.
The question was in fact raised and discussed as one of principle in a case before the Supreme Court of the United States, Blossom v. Milwaukee Ry. Co.(11), and it was ruled that a purchaser at a judicial sale who has complied with the terms thereof and paid the purchase-money has the right to appeal from an order setting aside the sale. Mr. Justice Miller who delivered the unanimous opinion of the Court quoted with approval the following passage from the judgment of Chancellor Walworth in Delaplaine v. Lawtence(12). “In sales made by masters under decrees and orders of this Court, the purchasers who have bid for the-property and paid their deposits in good faith are considered as being inchoate rights which entitle them to a hearing upon the question whether the sale shall be set aside and if the Court errs by setting aside the sale improperly, they have the right to carry the question by appeal to a higher tribunal.” To put the matter in another way, a purchaser or bidder subjects himself to the jurisdiction of the Court so much so that if he fails to complete the sale, he may be penalised in the manner mentioned in r. 86 of Or. 21; it is therefore only just to hold that he acquires a corresponding right no appear and claim at the hands of the Court relief to which he may be entitled under the rules of equity proceedings. This view has been maintained in numerous decisions amongst which may be mentioned, Kneeland v. American Land T. Co.(13), Magann v. Segal(14), Floutnoy v. Smith(15), County v. Bunch(16), Penon v. Ctieghton(17), Todd v. Gallego(18) and Wood v. Seattle(19), all of which confirm the right of the purchaser at a judicial sale to appeal from an order for reversal thereof on the principle just explained. On the other hand, the case of In re Robinson(20) shews that an unsuccessful bidder at a sale can not appeal, because he acquired no interest, inchoate or otherwise, while the case of Thomas v. Elliott(21) shews that the right of appeal which would otherwise be enjoyed by the auction-purchaser may be restricted or taken away completely by statutory provision to that effect.
From a review then of the principles just explained it is plain that two positions are firmly established, namely, first, that an execution sale cannot be set aside without notice to the auction-purchaser and without opportunity afforded to him to support the validity of the sale: and, secondly, that if the original Court has passed an order adverse to the interest of the auction-purchaser, he is entitled to appeal and test the legality of the order in the superior tribunal.
The question next arises whether the rights of the auction-purchaser are affected by the omission of the decree-holder to contest the application of the judgment-debtor for reversal of the sale or by his acceptance of terms from the judgment-debtor which estop him from supporting the sale. In our opinion the right of the auction-purchaser is independent of the right enjoyed by the decree-holder to support the legality of the sale. The auction-purchaser cannot be treated as the representative in interest of the decree-holder, and his position cannot be affected by any arrangement which the decree-holder may be prepared to accept. As a general rule a Defendant who is injured by a judgment against a co-Defendant, may appeal therefrom, although the Defendant, against whom the judgment is rendered, does not do so. Illustrations of this doctrine may be found in various cases in the reports: thus in Murray v. Guse(22), it was ruled that where an adverse judgment has been given against the owner of the property and several holders of liens thereon, who were all Defendants to an action, the lien-holders were not prevented from appealing against the erroneous judgment, if aggrieved thereby, merely by reason of the failure of the owner to prefer an appeal. A similar view was maintained in French v. Peters(23), McDaniel v. ???(24) and Arthur v. Reed(25). It is plain that after an execution sale has taken place, the auction-purchaser is quite as much interested in the proceedings as the decree-holder himself, though no doubt their points of view may be different: the former has deposited the purchase-money, and his bid has been accepted by the Court, with the result that if the sale cannot be set aside in one or other of the different modes prescribed by the Code, his purchase must be confirmed; the decree-holder, on the other hand, is interested to see that the sale continues in force so that the proceeds may be available for the satisfaction of the judgment-debt. It is conceivable that the decree-holder may be satisfied if his claim is paid in full, and he may not be willing to enter into a contest with the judgment-debtor about the legality of the sale: but that is no reason why the auction-purchaser should have his position affected without his consent. He has a substantial interest at stake, and he is entitled to prove the validity of his purchase irrespective of the subsequent conduct of the decree holder. If any other view were maintained, the provisions of r. 89 of Or. 21 would be futile. That rule clearly contemplates that an execution sale may be set aside on payment of the judgment-debt to the decree-holder and of statutory damages to the purchaser, if the application is made within the prescribed time. If it is open to the judgment-debtor to enter into an engagement with the decree-holder for reversal of the sale at any time without the assent of the auction-purchaser and without the payment to him of the sum prescribed by r. 89, no judgment-debtor need avail himself of the provisions of that rule. In our opinion, the view taken by the Court of first instance in the present case, namely, that the auction-purchaser was not bound by the alleged arrangement between the decree-holder and the judgment-debtor and that the sale could be set aside, if at all, only on proof of the grounds mentioned in r. 90, is sound: and if the correctness of this position is once conceded, the conclusion he-comes inevitable that the auction-purchaser was entitled to test the propriety of the order of the original Court by an appeal to the District Judge.
The learned Vakil for the Appellants placed much reliance upon the case of Poorna Chandra Roy v. Doorga Prasad Babu, in which it appears to have been ruled that in a suit brought under sec. 14 of the Putni Regulation, for reversal of a sale against the zemindar and the purchaser, an appeal against the decree cannot be maintained by the purchaser alone. That case, in our opinion, is clearly distinguishable. The zemindar as well as the purchaser had jointly preferred an appeal to this Court against the decree for reversal of the sale. The zemindar applied to the Court for dismissal of the appeal so far as he was concerned, because in his opinion the decree of the Court below could not be successfully challenged: the appeal was thereupon dismissed. The purchaser then claimed to prosecute the appeal so far as he was concerned. The Court held that he could not be heard because the question at issue, namely, whether there was or was not any arrear for which the zemindar could take proceedings under the Putni Regulation, was one between those two parties alone, and the purchaser could not give the Court any information about it. Upon a careful examination of the judgment we are not satisfied that it lays down a comprehensive rule of law that in cases of sales under the Putni Regulation the purchaser can, in no event, appeal against the decree of reversal unless the zemindar also joins in the appeal. If the learned Judges intended to lay down any such rule the question when it arises again may require reconsideration. In any event the learned Judges clearly intimated that there was in this respect no analogy between a putni sale and a sale in execution of a decree under the Civil Procedure Code, in fact they added that in cases of execution sales, when the question before the Court is one of regularity of the proceedings, the purchaser, who is himself a party to those proceedings, may very well appear before the Court and maintain their regularity. In our opinion the case of ??? Chandra v. Doorga Prosad does not really advance the contention of the Petitioners.
We may add that at one stage of the proceedings we were inclined to make an order for the reversal of the sale under r. 89 of Or. 21 of the Code. We are unable to do so, however, because under r. 92, sub-r. 2, the deposit must be made within thirty days from the date of sale and we have no power either under sec. 5, of the Limitation Act, or under sec. 148 of the Civil Procedure Code of 1908, to enlarge the time. We are therefore constrained to hold that the appeal to the District Judge was competent and that no grounds have been established for our interference with his order in the exercise of our revisional jurisdiction.
The result is that the rule is discharged: but there will be no order for costs in this Court.
Caspersz, J.—The Petitioner is the judgment-debtor whose application, under Or. XXI, r. 90 of the Code of Civil Procedure, was allowed by the Subordinate Judge of Patna, the sale of the Petitioner's properties being set aside. During the pendency of that case the decree-holder accepted his dues from the Petitioner and certified satisfaction to the Court. But the auction-purchaser took the matter in appeal before the District Judge who confirmed the sale for the reasons given in his judgment. The Petitioner next obtained a rule from this Court, and the point for determination is whether the auction-purchaser's appeal to the District Judge was competent.
Under Or. XLIII, r. 1(j) of the Code, an order under r. 92 of Or. XXI, setting aside a sale, is appealable at the instance of any one whose interests are affected by the sale (see r. 90 of Or. XXI). It appears, therefore, that the auction-purchaser was entitled to prefer his appeal to the District Judge. The auction purchaser, it is true, had no vested right to the properties in question by reason of any order passed by the Court confirming the sale. But he had an equitable title to the property, and a right, in the last resort, under r. 93 of Or. XXI, namely, the right to get back his purchase-money with or without interest. The carriage of the execution proceedings was in the hands of the decree-holder who elected to compromise with the judgment-debtor contracursus curice. Such a compromise, however, cannot be allowed to defeat the interests of the auction-purchaser and the intention of the Code which allows a deposit to set aside the sale only if the money is paid in a particular way and within 30 days. See Or. XXI, rr. 89 and 92(2).
I, therefore, agree, for the reasons generally stated in the judgment of my learned brother, that this rule must be discharged.
Rule discharged.
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