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  • Order XXI, rule 65, of the Code of Civil Procedure and the High Court General Rules
  • Order XXI, rule 84,
  • Order XXI, rule 90.
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Cites
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Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
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  • Order XXI, rule 65, of the Code of Civil Procedure and the High Court General Rules
  • Order XXI, rule 84,
  • Order XXI, rule 90.
Smart Summary

Judgment Summary — Macpherson, J. (with Das, J. concurring)

Factual and Procedural Background

On 15 November 1922 a raiyati holding was put up to auction under orders of the Munsif of Madhubani. The sale was conducted by the nazir (the officer designated under Order XXI, rule 65 of the Code of Civil Procedure and High Court rules), but not in the immediate presence of the presiding officer. The nazir's bid-sheet (in his handwriting) recorded successive bids: decree-holder Rs. 188; one Babunandan Rs. 189; the petitioner Jaibahadar Jha Rs. 200; Babunandan Rs. 215; and the petitioner Rs. 220. The nazir sent the bid-sheet to the Munsif, who wrote "Close" against the last offer and signed.

The petitioner then paid, by chalan to the officer conducting the sale, a deposit equal to one-fourth of Rs. 220, purporting to act under Order XXI, rule 84. After Court had risen for the day, certain persons (including the present opposite party) represented to the Munsif that they had been waiting to bid and that no public auction had taken place. The Munsif told them he had not signed the order "knocking down the sale" and would consider their representation the next day.

On the following day the execution clerk put up order No. 3 on the order-sheet (stating that Jaibhadar Jha purchased for Rs. 220 and deposited earnest money). The Munsif initialled that order but, when about to sign the formal order on the nazir's bid-sheet (which recorded a knock-down in favour of Jaibhadar Jha for Rs. 200), he realized representations had been made. He struck out his incomplete signature on the bid-sheet, wrote a note that the property would be put up to sale again in the interest of the judgment-debtor, and initialled the order-sheet. The clerk's order recorded that the sale should be put up the next day.

On 16 November a petition was filed requesting the sale be held in the presence of the petitioners' pleader, and the auction was resumed the same day in the presence of the Munsif. The opposite party (Mutukdhari Jha) opened bidding at Rs. 420 and ultimately succeeded with a final bid of Rs. 1,075; the Munsif wrote and signed "Closed" and later signed the knock-down order in favour of Mutukdhari Jha. Both the opposite party and the petitioner deposited the balance of purchase money on 6 December; the Munsif recorded that Jaibhadar Jha (in whose favour sale had not been knocked down) should take back his money.

The Munsif had not confirmed the sale because the High Court had stayed proceedings prior to the date fixed for confirmation. The principal question before the Court was whether a valid sale had already taken place in favour of the petitioner on 15 November such that the Munsif acted without jurisdiction by resuming the auction and declaring the opposite party purchaser.

Legal Issues Presented

  1. Whether there was a completed sale to the petitioner on 15 November 1922 (i.e., whether the bid of Rs. 220 had been accepted by the Court such that the sale was complete within the meaning of Order XXI, rule 84).
  2. Whether, if a sale to the petitioner had been complete on 15 November, the Munsif acted without jurisdiction in resuming the auction and knocking down the sale to the opposite party on 16 November.

Arguments of the Parties

Petitioner's Arguments (Mr. Murari Prasad)

  • The sale to the petitioner was complete on 15 November and he should be considered the declared purchaser within the meaning of Order XXI, rule 84.
  • The Munsif's writing "Close" evidenced acceptance of the bid by the Court; the formal "knocked down to..." entry was superfluous and merely a record rather than a necessary act to complete the sale.
  • An order to the petitioner's prejudice (i.e., resuming the sale and declaring another purchaser) was made without hearing him.

Opposite Party / Court's Position (as presented in the record)

  • The opposite party's affidavit stated that the petitioner was present on 16 November when the auction was resumed and made no protest.
  • The Munsif's recorded view was that there had been no sale to the petitioner on 15 November; "Close" meant the officer conducting the sale was to stop bidding and put up the formal order for the presiding officer's signature, and the sarishtadar's passing of the chalan for earnest money was an anticipatory/erroneous act.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Miscellaneous Appeals No. 112 to 114 of 1922 Illustrates that sales which were completed because the bid was accepted by the Court and the purchaser declared were not set aside. The Court cited this to distinguish situations in which a sale is complete (acceptance by the presiding officer and declaration of purchaser) from the present case where there had been no such formal acceptance and declaration on 15 November.

Court's Reasoning and Analysis

The Court focused on the narrow question whether a sale to the petitioner had been completed on 15 November. The analysis proceeded in these steps, based on the materials and practices recorded in the file:

  1. Distinction between the functions of the officer conducting the sale (the nazir) and the presiding officer (the Munsif). The nazir's role is ministerial; the sale is held by the Court and the presiding officer remains in charge.
  2. Requirement for completion of sale: the Court emphasised that a sale is not complete merely because the nazir records bids or because a deposit is taken by the officer conducting the sale. For a sale to be complete the presiding officer must accept the highest bid and formally declare the purchaser under Order XXI, rule 84, and sign the formal order. This applies equally when the auction is not conducted in the immediate presence of the presiding officer — the presiding officer remains responsible and his formal acceptance and signature are required.
  3. Application to the facts: the Court found the proceedings on 15 November were casual — the nazir had not put up the terminating order before the presiding officer rose, and the sarishtadar's passing of the chalan accepting the earnest money was anticipatory or erroneous. There were no materials on record to determine whether the nazir conducted the 15 November sale in a "hole-and-corner" fashion, but the High Court rule (and long practice) is that auctions should be held in the immediate presence of the presiding officer or within court premises selected by him; no application was made under Order XXI, rule 90.
  4. The petitioner had an opportunity to object when the auction was resumed on 16 November in the Munsif's presence but did not do so; the opposite party's affidavit recorded petitioner's presence and silence. The Court considered it reasonable to infer the petitioner understood the sale had not been completed.
  5. Reliance on authority: the Court referred to Miscellaneous Appeals No. 112–114 of 1922 to explain that in those cases sales were not set aside because they had been completed by acceptance and declaration by the Court — thereby underlining that the formal acceptance by the presiding officer is the decisive act.
  6. Conclusion of analysis: because until a bid has been accepted by the presiding officer it is only an offer, there was no sale to the petitioner on 15 November. Consequently, the Munsif acted within his jurisdiction in resuming the auction and later declaring the opposite party the purchaser on 16 November.

Holding and Implications

Holding: The application (petition challenging the Munsif's actions) was dismissed. The Court held that there had been no completed sale to the petitioner on 15 November 1922, and the Munsif did not act without jurisdiction in resuming the auction and declaring the opposite party the purchaser.

Implications:

  • Direct effect on the parties: the petitioner's application failed and was dismissed with costs. The Munsif's subsequent actions in declaring the opposite party purchaser were held to be within jurisdiction, and there was no basis shown to set aside that declaration insofar as it concerned the petitioner.
  • Procedural/status note: the sale had not yet been confirmed because the High Court had stayed proceedings prior to the confirmation date; the opinion observed there was "no reason, so far at least as the petitioner is concerned, why the sale to the opposite party should not be confirmed."
  • No broader novel precedent was established by this decision; the judgment applied existing distinctions and practice regarding the necessity of formal acceptance and declaration by the presiding officer for completion of a court sale.

Disposition recorded in the opinion: "Application dismissed." Das, J. agreed.

    Jaibahadar Jha v. Matukdhari Jha

    Macpherson, J.:— The circumstances in which we are asked to interfere in revision in this case hardly admit of any dispute. A raiyati holding was put up to auction on the 15th November, 1922, under the orders of the Munsif of Madhubani. The sale was conducted by the nazir of the Court, who is the officer of the Court designated under Order XXI, rule 65, of the Code of Civil Procedure and the High Court General Rules and Circular Orders, but not in the presence of the Court. The bid-sheet, the entries in which are in the handwriting of the nazir, shows that the decree-holder bid Rs. 188, one Babunandan Rs. 189, the petitioner, Jaibahadar Jha Rs. 200, Babunandan Rs. 215 and the petitioner Rs. 220. The nazir sent the bid-sheet, in accordance with practice, to the Munsif who wrote “Close” against the last offer, and signed the order. The petitioner thereafter, purporting to act under Order XXI, rule 84, paid in by chalan to the officer conducting the sale a deposit of one-fourth of Rs. 220. After the Court had risen for the day, certain persons, including the opposite party, approached the Munsif and represented that they had been waiting the whole day to bid and that no public auction had taken place. The learned Munsif informed them that he had not signed the order “knocking down the sale” and would consider their representation next day. On the following day, when the Munsif took his seat in his private chamber, order No. 3 in the order-sheet, dated the 15th November, was put up before him for signature by the execution clerk, and it is as follows:

    “Sale held. One Jaibhadar Jha purchased the property at Rs. 220 and deposited the earnest money today. Vide chalan No. 1134. The purchaser to deposit the balance of the parchase money in time Put up on 1st December 1922.”

    The Munsif initialled this order. He was then about to sign the following order on the bid-sheet which had been written and sent by the nazir.

    “Sale knocked down in favour of Jaibhadar Jha son of Sone Lal Jha, Bhatsiwar, pargana Bachow for Rs. 200 only. Munisif, 15th November 1922,”

    and which should have been put up for signature before the order on the order-sheet, when he realized that the case must be that regarding which certain persons had approached him on the previous day. He then made enquiries from them and from his office. As a result he struck out his incomplete signature on the bid-sheet and cut his initials to order No. 3 on the order-sheet. On the bid-sheet he wrote:

    “Some of the intending purchasers represent that the sale took place in their ignorance, while they were ready to bid for high amount. In the interest of the judgment-debtor the property is put to sale again,”

    and signed and dated this order the 15th (or 16th—the figure is not clear) November. In the order-sheet he wrote:

    “Before the sale was knocked down, some of the intending purchasers represented to me that sale took place in their ignorance while they were ready with their money to bid at the sale. As the sale appears to me to have been conducted in haphazard way, in the interest of the judgment-debtor the property is put to sale again.”

    He affixed no date to this order, though order No. 4 in the order-sheet, which is in the handwriting of the clerk, is dated the 15th and is:

    “Put up for sale tomorrow as there is no time today.”

    Order No. 5, dated the 16th November, is:

    “One Radhakant Jha and others file a petition stating that the decree-holder wants to get the property sold secretly and praying that the sale be held in the presence of their pleader. Let the sale be held as prayed for.”

    The auction was accordingly resumed on the same day in the presence of the Munsif himself, Rs. 220 being the starting point. The petitioner appears to have been present but he did not interpose. The first bid of the day was Rs. 420 and it came from Mntukdhari Jha, the present opposite party. There was a spirited contest, and eventually against Mutukdhari Jha's final bid of Rs. 1,075, the Munsif wrote and signed the order “Closed,” and later affixed his full signature to the order endorsed by the nazir on the bid-sheet:

    “Sale knocked down in favour of Mutukdhari Jha, son of Sone Lal Jha of Bhawanipur, pargana Hati, for Rs. 1,075 only.”

    and also, after the opposite party had made the deposit required under Order XXI, rule 84, on the order-sheet of the case to an order in the same terms as order No. 3 quoted above. On the 6th December both, the opposite party and the petitioner, deposited the balance of the purchase money. As regards the latter, the Munsif recorded the order:

    “One Jaibhadar Jha in whose favour the sale was not knocked down, has deposited the balance of purchase money. He is directed to take back his money.”

    The learned Munsif has not yet confirmed the safe, as proceedings were stayed by order of this Court prior to the date fixed for the confirmation of the sale.

    In the view of the learned Munsif there had been no sale to the present petitioner. By his order “Close” he merely meant the officer conducting the sale to stop the auction and put up for the Court's signature the order knocking down the property and declaring the purchaser under Order XXI, rule 84. The sale in his view would be completed only after the Court's signature was obtained. The passing of the chalan for the earnest money was done erroneously by the sarishtadar in anticipation of the Munsif's acceptance of the highest bid which would have been forthcoming in ordinary cases and would have denoted the completion of the sale.

    There are no materials before us upon which it is possible to determine whether on the 15th November the nazir conducted the auction in a hole-and-corner fashion. The rule laid down by the High Court, which is also in accordance with long standing practice, is that the auction should be conducted in the immediate presence of the presiding officer, and where that is not possible, in another place within the Court premises to be selected by the presiding officer. No application was made under Order XXI, rule 90. The only point for determination, therefore, is whether there was a sale to the petitioner on the 15th. If there was, the Munsif, as is obvious and as indeed is admitted, acted without jurisdiction in resuming the auction on the following day and purporting to sell the property to the opposite party.

    Mr. Murari Prasad, on behalf of the petitioner, contends that in the circumstances the sale to his client was complete and be should be considered to have been declared the purchaser of the immovable property within the meaning of Order XXI, rule 84. He claims that the word “Close” written by the Munsif showed that the Court had accepted the bid and that the order “Knocked down to, etc.” was in the circumstances superfluous being merely a record of the fact of sale such as was also entered in the order-sheet. Stress is laid on the allegation that an order to the prejudice of the petitioner was made without hearing him.

    This contention is, in my judgmtent, not well-founded. The petitioner who, as appears from the affidavit of the opposite party, was present in Court on the 16th when the auction was resumed, made no protest, though the opportunity presented itself, and it is not unreasonable to infer that he also understood that the sale was not complete. The contention, moreover, takes no account of the distinction which has on several occasions been pointed out in this Court, between the function of the presiding officer in connection with a civil court sale and the function of the officer who conducts the sale. The sale is held by the Court. Thus, in Miscellaneous Appeals No. 112 to 114 of 1922, the sales were not set aside inasmuch as they had, it was found, been completed, the bid having been accepted by the Court (and not only by the nazir) and the purchaser having been declared. In fact, the function of the nazir or other officer appointed by the Court to conduct the auction is of a ministerial character: if he conducts it in presence of the presiding officer, the latter is still in direct charge of it, forthwith declares under Order XXI, rule 84, who the purchaser is and signs the formal order (as in fact happened on the 16th November in this case), and the sale is not complete until the declaration has been made and the order signed. Equally when the auction is (for reasons of convenience) not held in his presence, the presiding officer is still in charge of it and the officer conducting the sale is in no more responsible position than if he were conducting it in presence of the presiding officer: that the sale may be completed, not only the order of the presiding officer to close the bidding, but also his order under Order XXI, rule 84, formally accepting the bid and declaring the purchaser is required, exactly as in sale proceedings conducted in his presence. In really efficient proceedings, the officer conducting the sale puts up the formal order under rule 84 for signature expeditiously and certainly before the presiding officer rises for the day, and the presiding officer before signing the order enquires from the persons present in Court whether there is any advance on the highest bid given to the nazir. In the case before us the proceedings were somewhat casual, both on the part of the officer conducting the sale, who did not put up the order terminating the sale and yet in anticipation of it erroneously accepted from the highest bidder the deposit required from a declared purchaser, and on the part of the Court which rose before the proceedings in connection with the sale had been concluded. Nevertheless, it is manifest that there was no sale to the petitioner since until a bid has been accepted, it is only an offer and there is no sale in such a case it is open to the Court to resume the auction. That is what occurred in the present instance. As there was no sale to the petitioner the Court did not act without jurisdiction in declaring the opposite party to be the auction-purchaser, and there is no reason, so far at least as the petitioner is concerned, why the sale to the opposite party should not be confirmed.

    Accordingly the application fails and is dismissed with costs.

    Das, J.:— I agree.

    Application dismissed.

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    Comments

    Jaibahadar Jha v. Matukdhari Jha
    (Apr 17, 1923)