CPC Sale
CPC Sale
CPC Sale
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result of the sheer hard work and constant support of many people. I would like to
take this opportunity to thank all of them.
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Dishant Mittal
Table of Contents.............................................................................................................................3
Table of Cases..................................................................................................................................4
INTRODUCTION...........................................................................................................................5
Execution: Meaning.........................................................................................................................6
General Rules.................................................................................................................................10
Conclusion.....................................................................................................................................18
Bibliography..................................................................................................................................19
Execution is the last stage of any civil litigation. There are three stages in litigation:
1) Institution of litigation.
2) Adjudication of litigation.
3) Implementation of litigation.
Execution is the medium by which a decree-holder compels the judgment-debtor to carry out the
mandate of the decree or order as the case may be. It enables the decree-holder to recover the
fruits of the judgment. The execution is complete when the judgment-creditor or decree-holder
gets money or other thing awarded to him by judgment, decree or order2.
1
http://www.legalserviceindia.com
2
D. N. Mathur, Code of Civil Procedure (3rd ed. Cent. Law Publications 2015).
Illustration:
A files a suit against B for Rs 10,000 and obtains a decree against him. Here A is the decree-
holder. B is the judgment-debtor, and the amount of Rs 10,000 is the judgment- debt or the
decretal amount. Since the decree is passed against B, he is bound to pay Rs 10,000 to A.
Suppose in spite of the decree, B refuses to pay the decretal amount to A, and A can recover the
said amount from B by executing the decree through judicial process. The principle governing
the execution of decree and orders are dealt with in Sections 36 to 74 ( substantive law) and
Order 21 of the code( procedural law).
Supreme Court in Ghanshyam Das v. Anant Kumar Sinha 4 dealing with provision of the code
relating to execution of decree and orders, stated, “ so far as the question of executability of a
decree is concerned, the Civil Procedure Code contains elaborate and exhaustive provisions for
dealing with it in all aspects. The numerous rules of Order 21 of the code take care of different
situations providing effective remedies not only to judgment-debtors and decree-holders but also
to claimant objectors, as the case may be. In an exceptional case, where provisions are rendered
incapable of giving relief to an aggrieved party inadequate measures and appropriate time, the
answer is a regular suit in the civil court.
Order XXI of the CPC which is the longest Order provides detailed provisions for making an
application for execution and how they are to be entertained, dealt with and decided.
3
Justice C.K.Takwani (Thakker), Civil Procedure (CPC) with Limitation Act (8th ed. E.Book 2017)
4
(1991) 4 SCC 379
It is only the execution, which reveals and signifies the importance of the decrees to be passed
and the pedestal of the Court and sanctity of the document. As such, the decrees are required to
be executed with force, so that the Decree Holder having a document containing declaration of
his rights may not feel cheated or helpless having earned no fruits of the list got settled by him
from the Court even after spending decades altogether.
This Order 21 of The Code, 1908 can be divided into six parts. The main classification is as
under:-
5
Justice C.K.Takwani (Thakker), Civil Procedure (CPC) with Limitation Act (8th ed. E.Book 2017)
The Code of Civil Procedure,1908 lays down various modes of execution. After the decree-
holder files an application for execution of a decree, the executing court can enforce execution.
The substantive provision under Section 51 of The Code,1908 merely enumerates different
modes of execution in general terms. The Code of civil procedure allows more than one mode of
execution of decrees. It is for the decree-holder to decide in which mode he will execute his
decree. This power, however, is subject to such conditions and limitations as may be prescribed
by the code6. The code lays down following modes for the execution of different types of
decrees:
Though it is for the decree-holder to choose a particular mode of executing his decree and it is
permissible in law to opt for even a simultaneous execution, "the court may in its discretion,
refuse execution at the same time against the person and property of the judgment-debtor7."
6
Mahadea Prasad Singh v. Ram Lochan (1980) 4 SCC 354
7
Anandi Lal v. Ram Sarup, AIR 1936 All 495
A decree may be executed by attachment and sale or sale without attachment of any property.
Section 65 to 73 and rules 64 to 94 of Order 21 deals with the subject relating to sale of movable
and immovable property. Before ordering sale the court has to decide whether it is necessary to
bring entire attached property to sale or such portion thereof as may seem necessary to satisfy the
decree. If the property is large and decree to be satisfied is small the court must bring to sale only
such portion of the property the proceeds of which would be sufficient to satisfy the claim of the
decree holder.
Order 21 of the Code of Civil Procedure deals with the solemn act of execution of the decrees
passed by the Courts from grassroots to the top. Ultimately, after the judgment attains finality or
where there is no stay in the execution by any Appellate or Revisional Court, it is the Court of
original jurisdiction which performs this sacred act of implementation of the execution. The
provisions of the Civil Procedure Code, 1903, on the subject of sales are contained in Order XXI,
Rules 64 to 102. Rule 64 to 73 deal with “sale generally”; Rules 74 to 81, with “sale of moveable
property”; and Rules 82 to 104 with “sale of immovable”9.
8
D. N. Mathur, Code of Civil Procedure (3rd ed. Cent. Law Publications 2015).
9
Justice C.K.Takwani (Thakker), Civil Procedure (CPC) with Limitation Act (8th ed. E.Book 2017)
The rule enjoys that in all execution proceedings the court has to enquire whether sale of part of
the property would be sufficient to satisfy the decree. Under this provision the executing Court
derives jurisdiction to sell properties attached only to the point at which the decree is fully
satisfied. The words ‘necessary to satisfy the decree’ clearly indicate that no sale can be allowed
beyond the decreed amount mentioned in the sale proclamation. In other words, where the sale
fetches a price equal to or higher than the amount mentioned in the sale proclamation and is
sufficient to satisfy the decree, no further sale should be held and the court should stop at that
stage. The sale held in contravention of this mandatory requirements is illegal and without
jurisdiction10.
Order 21 Rule 65: Sales by whom conducted and how made - Save as otherwise prescribed,
every sale in execution of a decree shall be conducted by an officer of the Court or by such other
person as the Court may appoint in this behalf, and shall be made by public auction in manner
prescribed.
According to rule 65, every sale in execution of a decree shall be conducted by an officer of the
court by public auction, sale by asking offer through advertisement in Newspaper or otherwise is
barred and such a sale is nullity. There is a substantial distinction between the sale by calling for
offers through advertisement and the sale by public auction. An auction is held by public
competition wherein every bidder has the right to raise his own bid. The atmosphere therein
created by open bidding can tempt the bidder to raise his bid and thus enhanced price can be
fetched by the said mode. In a sale by tender, however no such opportunity is available to the
tender. Once he gives his offer that is final and cannot be raised, whereas in public auction each
10
Ambati Narasayya v. M. Subba Rao, 1989 (2) SCC 693
11
https://lawtimesjournal.in
Order 21 Rule 67: Mode of making proclamation - (1) Every proclamation shall be made and
published, as nearly as may be, in the manner prescribed by rule 54, sub-rule (2).
(2) Where the court so directs, such proclamation shall also be published in the Official Gazette
or in a local newspaper, on in both, and the costs of such publication shall be deemed to be costs
of the sale.
(3) Where property is divided into lots for the purpose of being sold separately, it shall not be
necessary to make a separate proclamation for each lot, unless proper notice of the sale cannot, in
the opinion of the court, otherwise be given.
The object of issuing a proclamation is twofold, firstly it protects the interest of the intending
purchasers by giving them all material information regarding the property to be sold, and
secondly, it protects the interest of the judgment-debtor by facilitating the fetching of proper
market price for his property and by preventing it from being knocked down at public auction for
a price much below the market price.
It is the duty of the court to ensure that the requirements of Rule 66 are complied with 13. It is also
desirable that every proclamation of sale shall be made by beat of drum or other customary
mode.
It is no doubt easy to draw the line between irregularity and illegality in an execution sale, but
where a substantial provision like Order XXI, Rule 66, is violated the sale should be regarded as
having been illegally conducted and would be void.
12
Desh Bandhu Gupta v. N.L. Anand, (1994) 1 SCC 131.
13
Shalimar Cinema v. Bhasin Film corp. (1987) 4 SCC 717
Contents of proclamation:-
a) Time and place of sale
b) Property to be sold
c) Revenue, if any, assessed upon the property;
d) Encumbrance, if any, to which property is liable;
e) Amount to be recovered;
f) Details relating to property, such as title deed, length etc.
14
A. Venkatchalam v. E.M. Zackria, 1987 SCC 124
Order 21 Rule 68: Time of sale - Save in the case of property of the kind described in the
proviso to rule 43, no sale hereunder shall, without the consent in writing of the judgment-debtor,
take place until after the expiration of at least fifteen days in the case of immovable property, and
of at least seven days in the case of movable property, calculated from the date on which the
copy of the proclamation has been affixed on the court-house of the Judge ordering the sale.
This provision provides that no sale shall, without the consent in writing of the judgment debtor,
take place until after the expiration of at least thirty days in the case of immovable property, and
of at least fifteen days in the case of movable property from the date of proclamation in the
courthouse.
The only exception is in the case, where the property ordered to be sold is perishable or the
expense of keeping it in custody is likely to exceed its value. This provided in Order 21 Rule 43 of
The code, 1908.
Provided that, where the sale is made in, or within the precincts of, the court house, no such
adjournment shall be made without the leave of the court.
(2) Where a sale is adjourned under sub-rule (1) for a longer period than thirty days, a fresh
proclamation under rule 67 shall be made, unless the judgment debtor consents to waive it.
(3) Every sale shall be stopped if, before the lot is knocked down, the debt and costs (including
the costs of the sale) are tendered to the officer conducting the sale, or proof is given to his
satisfaction that the amount of such debt and costs has been paid into the court which ordered the
sale.
Where a resale has been occasioned by reason of the purchaser’s default, (i.e. due to the failure
to deposit the sale price) any deficiency of price and all expenses attending such resale shall be
certified to the court and shall be recoverable at the instance of either the decree-holder or the
judgment debtor from the defaulting purchaser.
When purchaser is not negligent then this rule won’t apply. In Gopal Krishan Das v. Sailendra
Nath16, the court held that this provision is salutary and has been enacted with a view to
minimize the hardship of the judgment-debtor or decree-holder resulting from the auction-
purchaser’s default. It also seeks to provide an expeditious remedy to the aggrieved party
(judgment-debtor or decree-holder), who has suffered due to the default of the auction-purchaser.
Therefore, if resale is not ordered because of the default of the auction purchaser, then Rule 71
will not apply.
15
Radhey Shyam v. Shyam Behari, (1970) 2 SCC 405.
16
(1975) 1 SCC 815
(2) Where decree holder purchases, amount of decree may be taken as payment—Where a decree
holder purchases with such permission, the purchase money and the amount due on the decree
may, subject to the provisions of section 73, be set-off against one another, and the court
executing the decree shall enter up satisfaction of the decree in whole or in part accordingly.
(3) Where a decree holder purchases, by himself or through another person, without such
permission, the court may, if it thinks fit, on the application of the judgment debtor or any other
person whose interests are affected by the sale, by Order set aside the sale; and the costs of such
application and order, and any deficiency of price which may happen on the re-sale and all
expenses attending it, shall be paid by the decree holder.
When decree holder does so with the permission of the court, he is entitled to a set off, but if he does
so without such permission, the court has discretion to set aside the sale upon the application by the
judgment-debtor, or any other person whose interests are affected by the sale.
This provision is intended to safeguard the interests of the judgment-debtor. The court will have
to be satisfied that without granting permission to the decree-holder, an advantageous sale cannot
otherwise be had17. Such permission, therefore, should be cautiously granted after considering all
the attending circumstances.
Even though there is no express requirement for issue of notice to the judgment-debtor in Rule
72 before granting permission to the decree-holder, since it vitally affects the rights of the
judgment-debtor, the rules of natural justice require that a notice should be given to him. The
decision to grant permission is administrative and not judicial. It is therefore, not necessary for
17
Sivathi Ammal v. Arulayee Ammal, AIR 1974 Mad 34.
In Jaswantlal Natvarlal v. Sushilaben Manilal18, the court held that for getting a sale set aside
it is not sufficient to show that there was an illegality or irregularity in the conduct of the sale,
the applicant has to show substantial injury has been caused to him as a result of non issuance of
the notice.
In Janak Raj v. Gurdial Singh 19, the Hon'able Supreme Court held that where the auction-
purchaser is a stranger or an outsider, sale by public auction would normally protect him even if
the decree is finally set aside. As this is based on the doctrine of justice and equality.
Order 21 Rule 72A provides that mortagee is also forbidden to bid at sale without the leave of
the Court. If leave to bid is granted to such mortgagee, then the court shall fix a reserve price as
regards the mortgagee so that mortgagee may not take undue advantage by purchasing the
mortgaged property at a lower price and then pursuing other remedies to recover the balance of
the amount of the decree.
Order 21 Rule 73: Restriction on bidding or purchase by officers- No officer or other person
having any duty to perform in connection with any sale shall, either directly or indirectly, bid for,
acquire or attempt to acquire any interest in the property sold.
18
1991 (2) SCC 691
19
AIR 1967 SCC 608
Order 21 of the code contain elaborate and exhaustive provision for execution of decrees and
order, take care of the different type of situation and provide effective remedies not only to the
decree-holder and judgment-debtors but also to the objectors and third parties.
A decree can be executed by various modes which include delivery of possession, arrest, and
detention of the judgment-debtor, attachment of the property, by sale, by appointment of
receiver, partition, cross-decrees, and cross-claims, payment of money etc.
On exceptional situation, where provisions are rendered ineffective or incapable of giving relief
to an aggrieved party, he can file suit in civil court.
BOOKS
1. Justice C.K.Takwani (Thakker), Civil Procedure (CPC) with Limitation Act (8th ed. E.Book
2017).
2. Sir Dinshaw Fardunji Mulla, Mulla’s the Code of Civil Procedure (19th ed. Lexis Nexis
2017).
3. D. N. Mathur, Code of Civil Procedure (3rd ed. Cent. Law Publications 2015).
4. Avtar Singh, Code of Civil Procedure (4th ed. Cent. Law Publications 2015).
Websites
1. http://www.legalserviceindia.com
2. http://www.scconline.com/
3. https://indiankanoon.org
4. https://legal-dictionary.thefreedictionary.com
5. https://definitions.uslegal.com/
6. http://www.legalcrystal.com