Lis Pendenz Sale During Money Suit by Balaji J
Lis Pendenz Sale During Money Suit by Balaji J
797 of 2017
CORAM
S.A.No.797 of 2017
and C.M.P.No.20013 of 2017
R.Karuppannan .. Appellant
Vs.
Natarajan (Deceased)
1.Manikandan
2.Saroja
3.Gunasekaran
5.K.R.Jagadeesan (Deceased)
..Respondents
PRAYER: The Second Appeal filed under Section 100 of the Civil
Procedure Code against the judgment and decree dated 17.07.2017 passed in
A.S.No.24 of 2015 on the file of the Principal Sub-Court, Salem, confirming
the judgment and decree dated 27.10.2014 made in R.E.A.No.137 of 2004 in
R.E.P.No.126 of 2002 in O.S.No.193 of 2002 on the file of the Principal
District Munsif Court, Salem.
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For Respondents
For RR1 & 2 : Mr.S.Mukund
Senior Counsel
for Mr.T.S.Vijayaraghavan
For R3 : Exparte
JUDGMENT
This Second Appeal has been filed against the judgment and decree
Salem. The suit was filed for recovery of a sum of Rs.29,025/- based on a
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exparte decree. The property was sold by the Executing Court and one
execution proceedings, the third party, namely the respondents herein filed
have also taken possession of the property. According to the petitioners, they
came to know that the decree holder had filed I.A.No.290 of 2002 under
judgment. The suit was decreed exparte as already noted on 26.04.2002 and
the attachment order in I.A.No.290 of 2002, which had been passed earlier
23.07.2002 and sought for bringing the suit property for sale. Even in the
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4.It is the specific case of the petitioner's that the defendant was fully
aware of the proceedings and despite the same, he has sold the property to
about the suit or the execution proceedings, much less the attachment
proceedings. According to the petitioners, the 2nd respondent has also handed
over the possession of the suit property to them and the petitioners have also
also put up additional constructions in the suit property and they have been
the Court Bailiff along with police personnel came to the suit property and
informed the petitioners about the purchase of the suit property by the
auction purchaser, the 3rd respondent and the petitioners were threatened with
dispossession. As the Court Bailiff did not give any time to the petitioners,
they had no other option, but to remove the belongings and deliver
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the Court papers and came to know about the auction sale in favour of the 3rd
that the sale was also confirmed on 07.01.2003. The petitioners also noted
irregularities in the legal process adopted by the decree holder and therefore,
moved the Executing Court for conducting enquiry and to put the petitioners
bonafide purchaser who has purchased the property in Court auction and it is
the Court which executed the Sale Deed in his favour and therefore,
following the due process of law, the auction purchaser has taken delivery of
the suit property and on these grounds resisted the applications filed by the
petitioners. The Executing Court, after discussing the rival contentions of the
parties, found that the respondents had colluded to defraud the petitioners
and therefore, the petitioners are entitled to redelivery of the property along
The First Appellate Court concurred with the findings of the Executing Court
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Courts below, has preferred the above Second Appeal. The Second Appeal
question of law:
for the respondents 1 and 2. The 3rd respondent, who is a decree holder,
plaintiff in the original suit proceedings remained exparte even in the Second
Appeal.
concurrent findings of the Court below on the ground that the respondents
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are purchasers pending the execution proceedings before the Court and
counsel for the appellant would also state that the appellant has purchased
the property in a Court auction and the Court has executed a Sale Deed in his
favour and therefore, such a sale cannot be set aside casually, that too at the
instance of purchasers who have taken the risk of purchasing the suit
10.The learned counsel for the appellant would place reliance on the
following decisions:
11. In Usha Sinha' case, the Hon'ble Supreme Court discussed the
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object and scope of Order 21 Rules 97, 98, 100 and 102 and finding it to be
based on justice, equity and good conscience, held that a transferee from the
Industries' case, elaborately dealt with the Rules 98 and 100 as well as 102
Property Act makes it clear that no party to the proceeding can transfer any
property which is the subject matter of the litigation, the transferee from the
party to the proceeding or the judgment-debtor cannot have any valid title.
13.In Annakkili's case, the learned Single Judge of this Court held
that Section 52 of the Transfer of Property Act namely the doctrine of lis
14.In Sriram Housing Finance' case, the Hon'ble Supreme Court held
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the property against the decree holder, empowers the decree holder to make
Order 21 also deals with the right of 'any person' other than the judgment-
debtor who is dispossessed by the decree holder. The Hon'ble Supreme Court
further held that the provision vests 'any person' with a right to make an
Rule 98 and 100 deal with the power of the Execution Court to pass orders
on applications under Rule 97 and 99. Rule 101 confers with jurisdiction on
the same proceedings and not by a separate suit. Rule 102 clarifies that Rules
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respondents 1 and 2 would state first and foremost that the suit was one
counsel for the appellant according to the Senior Counsel would have no
bearing on the facts of the present case. He would further contend that
the present case as the execution proceedings admittedly, arose only under a
16.The learned Senior Counsel would also state that the auction
purchaser himself stood as a witness when the property was attached and this
under Order 38 Rule 11(b) has not been complied with and therefore, the
reliance place on by the learned counsel for the appellant on the decision of
this Court in Annakkili's case would not apply to the facts of the present
case.
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17.The learned Senior Counsel would also state that the possession
was in possession and this also amounted to a fraud and also irregular
procedure before the Executing Court. Finally, he would also place reliance
on Ex.P38, Encumbrance Certificate for period 1987 to 2002 which does not
18.The learned Senior Counsel for the respondents would also place
Another).
M.Ramachandran; S.Nagarajan).
K.S.Maheswari).
19.In Ammavasai's case, the learned Single Judge of this Court held
amendments to the CPC could not be lost sight of and third parties who are
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were also brought within the ambit of Order 21 so that prolonged litigation
can be avoided. The Hon'ble Supreme Court also held that the word
physical possession alone and held that the Execution Court was well within
the law to adjudicate the claim of a third party under Order 21 Rule 99 of
CPC.
21.In Shamsheer Singh's case, the Hon'ble Supreme Court held that
the purpose of amendment to Rule 103 was that any adjudication made under
Rule 101 shall have the same force and be subject to the same conditions as
opportunity to get all issues relating to right, title or interest in the property
the person approaching the Court to establish his right, title or interest in the
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22.In Mari's case, the Hon'ble Supreme Court held that all questions
relating to right, title and interest arising between the parties to proceedings
the Court dealing with such application 'not by way of a separate suit' and
execution of a decree even though not being the party to the decree, has to
move only the Executing Court and establish his independent right and it is
not open to him to file a separate suit for the said purpose.
learned Senior Counsel for the respondents 1 and 2, with regard to the
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24.In the above decisions, this Court has categorically held that in
sought to be attached is situated. This Court has consistently held that the
procedural compliances under the said Rule 11(b) is mandatory and any
defendant/judgment-debtor.
decree holder and consequent purchase of the suit property by the auction
purchaser would bind the respondents herein, who are the purchasers from
the defendant/judgment-debtor.
entirety:
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2. Security
(1) Where the defendant fails to show such cause the
Court shall order him either to deposit in Court money
or other property sufficient answer the claim against
him, or to furnish security for his appearance at any
time when called upon while the suit is pending and
until satisfaction of any decree that may be passed
against him in the suit, or make such order as it thinks
fit in regard to the sum which may have paid by the
defendant under the proviso to the last preceding rule.
(2) Every surety for the appearance of a defendant
shall bind himself, in default of such appearance, to
pay any sum of money which the defendant may be
ordered to pay in the suit.
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27.It is pertinent to note that the Code of Civil Procedure does not
provide for any such requirement as contemplate under Rule 11-B. Rule 11-
Madras. It is clear from the language employed under Rule 11-B that any
is situate.
Court wherein it has been unequivocally held that non compliance of Rule
11-B would be fatal and when there is a failure to communicate the order of
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instance taking the case on hand itself, the litigation arose out a simple suit
in the original suit in favour of the plaintiff, that too for a partly sum of
Rs.20,000/-. In the said suit, the plaintiff had also taken out an application
procedure had been followed or complied with, the attachment order would
document which shows the entries that are relating to the subject property
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be bonafide purchasers for value from the 2nd respondent, it is impossible for
them to have known about the order of attachment passed by the Civil
had been fair and bonafide in disclosing the said factum the purchasers. Only
in order to protect innocent purchasers from dealing with the properties that
are subject matters of attachment, the Madras High Court has introduced
Rule 11-B, which is not available even in the main Code itself. This being
the position, the mandate of Rule 11-B cannot be whittled down by stating
despite failure to comply with mandate of Rule 11-B. Once the order of
Officer, as discussed herein above, the order of attachment itself looses its
despite the fact that the appellant has purchased the property, only through a
the law.
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contemplated under Order 21 to take possession from the third parties who
are in possession of the suit property in question. The decree holder cannot
claim to have validly taken possession, at the time of executing the decree.
personal visit by the Court Bailiff to the suit property, orders of Police aid
and break open have been ordered and possession was taken from the
32.In the counter filed by the auction purchaser, he has stated that he
has taken possession only from the judgment debtor and there is no
obstruction for the execution being proceeded with. However, on the date of
evidence the same, they have also filed several documents in the nature of
House Tax receipts, Demand Registers, Water and Telephone Bills, LIC
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receipts as well as communication form the Electricity Board and Water Tax
card. Therefore, it is clear that the possession has been taken only from the
Ex.P30. It is a receipt which has been signed only by the auction purchaser
to confirm the fact that he has vacated and delivered the possession of the
appellant that he has taken possession only from the judgment-debtor who
was present on the relevant date when the Bailiff went there to take forcible
possession, the Bailiff ought to have obtained the signature of the judgment-
debtor instead of producing a self serving receipt from the auction purchaser
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would also point out that at the time of effecting tom tom, the auction
purchaser stood as a witness and therefore, the learned Senior Counsel would
contend that he was very much in the know of the entire proceedings and it
following the due process of law while executing the decree for recovery of
possession, in view of the fact that the non communication of the order of
attachment to the jurisdictional Sub Registrar, the very foundation itself gets
attachment order can have any legal validity or effect. Therefore, the very
itself is not valid and is illegal in the eye of law. Consequently, the recovery
possession.
and Others Vs. Tamil Nadu State Transport Corporation (CBE) Ltd.,
Coimbatore and Others, held that Rules 98 and 100 shall not apply to the
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sought to be executed was passed, here, in the present case, the facts are
order was not communicated to the Sub Registrar, the attachment would
have effect and therefore, the question of transferee a pendente lite would
never come into play in the first place. Therefore, the said decision would
37.For all the above reasons, I do not find any substantial questions of
08.03.2024
Index : Yes/No
Speaking Order/Non-Speaking Order
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ata
P.B.BALAJI., J.
ata
To
1.The Principal Sub-Court, Salem
2.Principal District Munsif Court, Salem.
3.The Section Officer, VR Section, High Court, Madras.
S.A.No.797 of 2017
08.03.2024
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P.B.BALAJI, J.,
Today, this matter is listed
under the caption 'for being
mentioned'.
2. On going through the
Judgment, dated 08.03.2024, it is seen
that in the twelfth line of the
paragraph No.36, by inadvertently
typed as “would have effect”, it
should be read as “would have no
effect”. Hence, the Registry is
directed to include the the said word
"no" in the twelfth line of the
paragraph No.36 and correct the error
in the judgment dated 08.03.2024.
3. Except for the aforesaid
modification, judgment dated
08.03.2024, remains unaltered in all
other respects.
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