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IN THE HIGH COURT OF KARNATAKA AT BANGALORE
DATED THIS THE 24TH DAY OF MARCH, 2014
BEFORE
THE HON’BLE Mr. JUSTICE N. KUMAR
WRIT PETITION No. 34092/2011 (GM-CPC)
BETWEEN: Sri ABDUL UBEDULLA S/O. LATE ABDUL SATHAR SAB AGED ABOUT 44 YEARS R/A. KODIGEHALLI MADHUGIRI TALUK – 572 127 …PETITIONER
(BY SRI VIVEK B RAMAKRISHNA FOR SRI KASHYAP N NAIK, ADVOCATES)
AND: 1. Smt. NOORJAHN W/O. ABDUL JABBASAB AGED ABOUT 62 YEARS 2. Sri. ABIDA @ FARIDA BANU AGED ABOUT 29 YEAS 3. Sri. RAHAMATHULLA AGED ABOUT 27 YEARS 4. Smt. FAMIDA BANU AGED ABOUT 23 YEARS 5. Smt. AYISHA BANU AGED ABOUT 17 YEARS
®
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REP. BY HER MOTHER AND NATURAL GURADIAN Smt. NOORJAHN - 1ST RESPONDENT HEREIN 6. Sri. ABDUL JABBAR SAB S/O. SHEIK ABDULLA SAB SINCE DEAD BY LEGAL REPRESENTATIVES 6A. Sri. KAKHEER S/O. LATE ABDUL JABBAR SAB AGED ABOUT 40 YEARS R/A. MASIJDIE SIDDIQUE EAK BAR P.G. LAYOUT P.H. COLONY TUMKUR – 572 101. 6B. Smt. SAREENA BANU D/O. LATE ABDUL JABBAR SAB C/O. ABUDUL SHAFFIULLA ALOMEENA SCHOOL ADMINISTRATOR Dr. No. 10, VI CROSS MAVALLI, MAJEED
LALBAG BANGALORE – 560 004 …RESPONDENTS
(BY SRI T V SUBRAMANYA PRASAD, ADV., FOR R-1 TO 4 SRI G S VENKATASUBBA RAO, ADV., FOR R-6A AND B
R-5 SD.) THIS WRIT PETITION. IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA WITH A PRAYER TO ALLOW MISC. PETITION No. 7/2009 FILED BY THE PETITIONER SEEKING DELIVERY OF VACANT POSSESSION OF THE SCHEDULE PROPERTY AND ETC. THIS WRIT PETITION COMING ON FOR FINAL HEARING THIS DAY, THE COURT PASSED THE FOLLOWING;
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O R D E R
This writ petition is filed by the auction purchaser in a
Court sale whose application under Order 21 Rule 95 CPC
seeking delivery of possession of the property purchased in
Court auction is rejected on the ground that the application
is barred by limitation.
2. Respondent Nos. 1 to 5 filed a suit, O.S. No.
123/1999 on the file of Principal Civil Judge (Junior
Division), Madhugiri, against 6th respondent seeking a decree
for maintenance and creation of charge in respect of two
items of schedule properties. The said suit, after contest,
came to be decreed on 06.11.2003 granting monthly
maintenance of Rs.400/- to the 1st respondent and Rs.300/-
to each of respondent Nos. 2 to 5. 6th respondent was also
directed to pay cost of Rs.1,254/- and charge was created on
item Nos. 1 and 2 of the schedule properties. 6th respondent
preferred R.A. No. 162/2003 challenging the said judgment
and decree, but the judgment and decree of the trial Court
was not stayed therein. Therefore respondent Nos. 1 to 5
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filed execution petition Ex. No. 39/2004 on 07.04.2004 for
recovery of arrears of maintenance of Rs.6,159/- and also
sought for attachment and sale of properties on which the
charge had been created. In the meanwhile appeal filed by
6th respondent came to be dismissed confirming the
judgment and decree of the trial Court against which order
6th respondent preferred no appeal and therefore it attained
finality. On the death of 6th respondent his legal heirs born
through the first wife were brought on record, but they too
did not satisfy the decree. Therefore suit item No. 1 was
brought to sale after attaching the same in the execution
proceedings. In the Court auction held on 16.01.2007, the
petitioner herein was declared to be the highest bidder; he
deposited the bid amount within the time stipulated and the
sale in his favour was confirmed on 20.08.2008. The sale
certificate came to be issued on 16.01.2009.
3. The petitioner herein filed a petition under Order
21 Rule 95 CPC on 09.09.2009 in Misc. Petition No. 7/2009
seeking delivery of possession of the property purchased by
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him in the Court auction. The legal representatives of
deceased 6th respondent filed their statement of objections
contending that the application filed under Order 21 Rule 95
CPC is to be dismissed as barred by limitation under Article
134 of the Limitation Act. The executing Court, after
considering the rival contentions and after taking note of the
decisions on which reliance was placed by both the parties,
came to the conclusion that the limitation for filing an
application under Order 21 Rule 95 CPC starts from the date
of confirmation of sale and not from the date of issuance of
sale certificate; the miscellaneous petition filed on
09.09.2009 is time barred and therefore dismissed the
petitioner’s application. Aggrieved by the said order, the
petitioner is before this Court.
4. Learned counsel for the petitioner assailing the
impugned order argued that, having regard to the language
employed in Order 21 Rule 95 CPC an application by the
auction purchaser seeking delivery of possession is to be
filed only after sale certificate is issued and therefore it is the
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date of issue of sale certificate which is the starting point for
filing the application under Order 21 Rule 95 CPC; the trial
Court committed a serious error in ignoring the said
provision and computing the period of limitation from the
date of confirmation of sale and therefore the impugned
order should be set aside.
5. Per contra, the learned counsel for the
judgment-debtors/respondents herein argued that the title
in the property which is the subject matter of the Court sale
passed on the date of confirmation of sale; issuing sale
certificate is not a proof of such sale. In view of the language
employed in Article 134 of the Limitation Act, one year period
prescribed thereunder has to be counted from the date of
confirmation of sale and not from the date of issuance of sale
certificate.
6. In the light of above, the point that arises for
consideration in this case is:
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“Whether the period of limitation for
seeking delivery of possession by an auction
purchaser of immovable property at a Court sale
in execution of a decree begins from the date of
confirmation of sale or from the date of issuance
of sale certificate?”
7. Before dwelling upon the point for consideration
it is essential to understand the scheme provided for sale of
an immovable property under the Code of Civil Procedure.
Order 21 Rule 82 to Rule 96 deal with sale of immovable
property by the Court. Once a property is offered for sale in
auction conducted by the Court, the highest bidder in such
public auction would be declared as ‘purchaser’ and he shall
pay 25% of the purchase money immediately and the
balance is payable in to the Court before the Court closes on
the 15th day from the date of sale of property. After such
sale, Rule 89 provides for an application for setting aside the
sale on account of sale consideration being not deposited in
the Court. Rule 90 provides for an application for setting
aside the sale on the ground of irregularity or fraud. Where
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no application is made under Rule 89, 90 or 91 or where
such application is made and disallowed under Rule 92, the
Court shall make an order confirming the sale and there
upon the sale shall become absolute. Once an order is made
confirming the sale, no suit to set aside an order confirming
such sale shall be brought by any person against whom
such order is made. The remedy provided against an order
confirming the sale is to prefer an appeal and separate suit
is not maintainable. On the confirmation of sale the Court
shall grant a certificate specifying the full details and
description of the property sold; the name of the person who
at the time of auction sale is declared as be the purchaser
and the date on which the sale became absolute. The sale
certificate is thus, only an evidence of such sale and not a
document of title. The title in an immovable property sold in
the Court sale passes to the auction purchaser, not under
the certificate of sale but by an order of confirmation of sale.
8. The title of the court auction-purchaser becomes
complete on the confirmation of the sale under Order 21
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Rule 92. By virtue of Section 65 CPC, the property vests in
the purchaser from the date of sale. The certificate of sale, by
itself do not create any title. It is merely evidence of title.
The sale certificate is a formal acknowledgement of a fact
already accomplished, stating as to what stood sold. Such
act of the court is pristinely a ministerial one and not
judicial. It is in the nature of a formalization of the obvious.
The title to the property sold does not vest in the purchaser
immediately on the sale thereof unlike in the case of a
private sale. The court was required to make an order
confirming the sale. It is upon such confirmation that the
sale becomes, absolute in terms of Order 21 Rule 92. Such
certificate bears the date as on which the sale became
absolute. It is on the sale becoming absolute that the
property sold vests in the purchaser. The vesting of the
property is thus made to relate back to the date of sale as
required under Section 65 CPC.
9. Therefore, once the sale is confirmed by an order
of the Court, the auction purchaser would be entitled to
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possession of the property sold at the auction on an
application being made by the purchaser under Order 21
Rule 95 CPC for an order delivering the property in his
favour by putting him in possession of the same.
10. Article 134 of the Limitation Act prescribes the
time limit within which an application under Order 21 Rule
95 CPC is to be filed and it reads as under:
Art. 134 For delivery of possession by a purchaser of immovable property at a sale in execution of a decree
One year When the sale becomes absolute
11. A reading of the aforesaid provision makes it
clear that an application under Order 21 Rule 95 for delivery
of possession by a purchaser of immovable property on a
sale in execution of a decree is to be filed within one year
from the date when the sale becomes absolute. In other
words, one year period starts running from the date when
the Executing Court passes an order under Order 21 Rule 92
CPC confirming the sale. There is no time gap between an
order confirming the sale and the same becoming absolute.
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Once an order is passed confirming the sale, the sale
becomes absolute and within one year from that date, an
application under Order 21 Rule 95 has to be filed. Issue of
sale certificate under Rule 94 is of no consequence. The
auction purchaser can seek delivery of possession under
Order 21 Rule 95 CPC even without obtaining a certificate of
sale. Even otherwise, when a sale certificate is issued on a
subsequent date, it shall bear the date on which the sale
became absolute. Therefore it is not the date of issue of sale
certificate but the date on which the sale became absolute
which is relevant for calculating the period of limitation
under Article 134 of the Limitation Act in respect of an
application under Order 21 Rule 95 CPC.
12. The Apex Court had an occasion to consider
Article 134 of Limitation Act in the case of PARTTA
KHADER KHAN vs PATTAM SARDAR KHAN AND
ANOTHER, 1996(5) SCC 48 and in the said decision it is
held as under:
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“10. Now to the spirit of it. A court sale is a
compulsory sale, conducted by or under orders of
the court. The title to the property sold does not
vest in the purchaser immediately on the sale
thereof unlike in the case of a private sale. The
law requires that it does not become absolute
until sometime after the sale; a period of a least
30 days must expire from the date of sale before
the sale can become absolute. In that while, the
sale is susceptible of being set aside at the
instance of the judgment-debtor on the ground of
irregularity in publication or conduct of the sale or
on defalcation as regard deposit of money etc., as
envisaged in Rules 89 and 90 of Order 21. Where
no such application is made, as is the case here,
the court was required, as indeed it did, to make
an order, confirming the sale and it is upon such
confirmation that the sale becomes, and became,
absolute in terms of Order 21 Rule 92. After the
sale has become absolute, a certificate is required
to be granted by the court to the purchaser,
termed as “certificate of sale” in Order 21 Rule
94. Such certificate bears the date as on which
the sale became absolute. It is on the sale
becoming absolute that the property sold vests in
the purchaser. The vesting of the property is thus
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made to relate back to the date of sale as
required under Section 65 CPC.
11. Order 21 Rule 95 providing for the
procedure for delivery of property in occupation of
the judgment-debtor etc., requires an application
being made by the purchaser for delivery of
possession of property in respect of which a
certificate has been granted under Rule 94 of
Order 21. There is nothing in Rule 95 to make it
incumbent for the purchaser to file the certificate
along with the application. On the sale becoming
absolute, it is obligatory on the court though, to
issue the certificate. That may, for any reason,
get delayed. Whether there be failure to issue the
certificate or delay of action on behalf of the court
or the inaction of the purchaser in completing the
legal requirements and formalities, are factors
which have no bearing on the limitation
prescribed for the application under Article 134.
The purchaser cannot seek to extend the
limitation on the ground that the certificate has
not been issued. It is true though that order for
delivery of possession cannot be passed unless
sale certificate stands issued. It is manifest
therefore that the issue of a sale certificate is not
“sine qua non” of the application, since both these
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matters are with the same court. The starting
point of limitation for the application being the
date when the sale becomes absolute i.e. that
date on which title passed, the evidence of title, in
the for of sale certificate, due from the court, could
always be supplied later to the court to satisfy
the requirements of Order 2 Rule 95. see in this
regard Babulal Nathoolal V. Annapurnabai,
which is a pointed. It therefore becomes clear that
the title of the court auction-purchaser becomes
complete on the confirmation of the sale under
Order 21 Rule 92, and by virtue of the thrust of
Section 65 CPC, the property vests in the
purchaser from the date of sale; the certificate of
sale, by itself, not creating any title but merely
evidence thereof. The sale certificate rather is a
formal acknowledgement of a fact already
accomplished, stating as to what stood sold. Such
act of the court is pristinely a ministerial one and
not judicial. It is in the nature of a formalization of
the obvious.”
13. Following the ratio in the aforementioned
decision, the Apex Court in the case of BALAKRISHNAN vs
MALAIYANDI KONART, AIR 2006 SC 1458 held as under:
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“14. The limitation for the purpose of Article
134 starts from the date of confirmation of sale.
(See Ganpat Singh (dead) by L.Rs. V. Kailash
Shankar and Ors. 1987(3) SCC 146). In Pattam
Khader Khan V. Pattem Sardar Khan and Anr.
(1996 (5) SCC 48) this court held that it is not
from the date when the sale certificate is issued
that the limitation starts running. The sale
becomes absolute on confirmation under Order
XXI Rule 92 of the Code effectively passing title. It
cannot be said to attain finality only when sale
certificate is issued under Order XXI Rule 94.
There can be variety of factors conceivable for
which delay can be caused in issuing a sale
certificate. The period of one year limitation now
prescribed under Article 134 of the Limitation Act
in substitution of a three year period prescribed
under Article 180 of the Indian Limitation Act,
1908 is reflective of the legislative policy of
finalizing proceedings in execution as quickly as
possible by providing a quick forum to the
auction-purchaser to ask for the delivery of
possession of the property purchased within that
period from the date of the sale becoming
absolute rather than from the date of issuance of
the sale certificate. On his failure to avail such a
quick remedy the law relegates him to the remedy
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of a regular suit for possession based on title,
subject again to limitation.”
14. Therefore, the legal position is very clear. The
limitation for the purpose of Article 134 starts from the date
of confirmation of sale. It is not from the date when the sale
certificate is issued that the limitation starts running. The
purchaser cannot seek to extend limitation on the ground
that the certificate had not been issued. Issuance of sale
certificate is not a sine qua non for filing an application
under Order 21 Rule 95 CPC. On the sale becoming absolute
the property sold vests in the purchaser. Therefore the sale
certificate is a formal acknowledgment of a fact already
accomplished stating as to what was sold. The sale becomes
absolute on confirmation under Order XXI Rule 92 of the
Code effectively passing title. On his failure to avail such a
quick remedy the law relegates him to the remedy of a
regular suit for possession based on title, subject again to
limitation. Therefore the order of the Executing Court that
an application filed under Order 21 Rule 95 CPC is barred by
time cannot be found fault with.
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15. The argument of the respondent is that, as the
question of delivery of possession as adjudicated by the
executing Court has attained finality, a separate suit for
recovery of possession is not maintainable. He sought to
support the said argument by placing reliance on a judgment
of the Supreme Court in HARNANDRAI BADRIDAS V.
DEBIDUTT BHAGWATI PRASAD AND OTHERS, reported in
AIR 1973 SC 2423 wherein it is held that, as a result of
amendment to Section 47, the purchaser at a sale in
execution of a decree, whether he is decree-holder or not is
unquestionably a party to the suit for the purpose of Section
47. Having regard to this, all questions arising between the
auction-purchaser and the judgment-debtor must be
determined by the executing Court and not by a separate
suit. Therefore, it is contended that the auction purchaser,
by virtue of the aforesaid provisions, becomes a party to the
suit and his request for delivery of possession has been
considered by the executing Court and once it is negatived,
his right to possession for all time to come stood
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extinguished. Further reliance is also placed on the
judgment of this Court in D. Rangappa Vs. G. Mudlappa and
others, reported in ILR 2005 Kar. 4759 wherein relying on
the judgment of the Apex Court in Harnandrai Badridas case
cited supra, this Court held that a suit for recovery of
possession without filing an application under Order 21 Rule
95 CPC for possession by the auction purchaser as not
maintainable.
16. Section 47 of the Code which deals with
questions to be determined by the Court executing the
decree reads as under:
47. Questions to be determined by the
court executing decree:
(1) All questions arising between the parties
to the suit in which the decree passed, or their
representatives, and relating to the execution,
discharge or satisfaction of the decree, shall be
determined by the Court
(2) [***]
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(3) Where a question arises as to whether
any person is or is not the representative of a
party, such question shall, for the purposes of
this section, be determined by the court.
[Explanation I : For the purposes of this
section, a plaintiff whose suit has been dismissed
and a defendant against whom a suit has been
dismissed are parties to the suit.
Explanation II : (a) For the purposes of this
section, a purchaser of property at a sale in
execution of a decree shall be deemed to be a
party to the suit in which the decree is passed;
and
(b) All questions relating to the delivery of
possession of such property to such purchaser or
his representative shall be deemed to be
questions relating to the execution, discharge or
satisfaction of the decree within the meaning of
this section.]”
17. An auction purchaser therefore, shall be deemed
to be a party to the suit in which the decree is passed and all
questions relating to delivery of possession of such property
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to such purchaser shall be deemed to be the questions
relating to the execution, discharge or satisfaction of the
decree within the meaning of the section and all such
questions shall be determined by the Court executing the
decree and not by a separate suit. All that it means is that
the auction purchaser, after the sale is confirmed in his
favour, is not expected to file a suit for possession. He will be
treated as a party to the suit and can file an application
under Order 21 Rule 95 CPC seeking recovery of possession.
The right of an auction purchaser to recover possession
being not in dispute there is nothing to be adjudicated in
such proceedings. Once there is an order confirming the sale
and an application under Order 21 Rule 95 being filed in the
very same proceedings, the Court which confirmed the sale
also has the power to deliver possession; only one condition
to be satisfied is that such a request/application for delivery
of possession shall be filed within one year from the date of
confirmation of sale. The Legislature in order to avoid
inconvenience and hardship to such auction purchasers has
provided remedy by way of application under Order 21 Rule
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95 CPC so that the auction purchaser would get possession
expeditiously in the very same execution proceedings. But by
inadvertence or by mistake if he does not choose to file
application within one year from the date of confirmation of
sale, his right in the property does not get extinguished. If
the application is not filed within one year, then the auction
purchaser is not entitled to possession of the property in the
said execution proceedings. But that can not take away his
right to recover possession by filing a suit. The sale in his
favour being made absolute, he would become the absolute
owner of the property and shall have all the rights over such
property under law including the right to recover possession.
The only difference is, if such application is filed within one
year he will get possession without paying any Court fee and
without waiting for years. Once he loses that advantage
given under law, then he has to file a suit for possession, pay
requisite Court fee and such a suit is to be filed within 12
years from the date when the defendant’s possession
becomes adverse to his interest. In other words, on his
failure to avail such a quick remedy, the law relegates him to
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the remedy of a regular suit for possession based on title,
subject again to limitation. Such remedy is not barred under
law.
In that view of the matter, I pass the following;
O R D E R
1. Writ petition is dismissed.
2. Liberty is reserved to the petitioner to initiate
appropriate proceedings for recovery of
possession independently.
Sd/- JUDGE
LRS