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HIRENDRA NATH GORAI AND SUBAL CHANDRA SHAW AND OTHERS versus SUDHIR CHANDRA GHOSH AND OTHERS

Citation: [1964] 6 S.C.R. 1001 · Decided: 04-03-1964 · Supreme Court of India · Bench: K. SUBBA RAO · Disposal: Appeal(s) allowed

Cited by 7 judgment(s) · see the full citation network in Lexace

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Judgment (excerpt)

" 
6 S.C;R. 
SUPREME COURT REPORTS 
1001 
Nothing has been placed before us to establish that the 
1961 
Superintending Engineer was legally authorized to enter into Karamshi l•tha-
such a contract on behalf of the Government; nor do the 
bhai 
d 
~ 
ocuments ex facie show that the agreement was expressed Stat< of Bombay 
to be made in the name of the Provincial Government. The 
Subba Rao J. 
letters mentioned the name of the Minister of the Public 
Works Department and also the Government, in the context 
of the rates that might be fixed thereafter, but the said 
documents did not purport to emanate from the Governor. 
At best they were issued under the directions of the 
Ministe_r. 
We find it difficult to stretch the point further, 
as such a construction will make the provisions of s. 175(3) 
of the Government of India Act, 1935, nugatory. We 
cannot, therefore, hold that either the contract was entered 
into by the person legally authorized by the Government 
to do so or expressed to be made in the name of the 
Governor. The agreement is void, as it has not complied 
with the provisions of s. 175(3) of the Government of India 
Act, 1935. 
In this view, it is not necessary to express our opinion 
'111 other interesting questions raised in this case. 
In the result, the appeal fails and is dismissed, but in 
the circumstances, without costs. 
Appeal dismissed. 
I>HIRENDRA NA TH GORAi AND SUBAL CHANDRA 
SHAW AND OTHERS 
v. 
SUDHIR CHANDRA GHOSH AND OTHERS 
(K. SUBBA RAo, K. C. DAS GUPTA AND 
RAGHUBAR DAYAL, JJ.) 
1964 
March 4. 
~ 
Execution-Court salt of property in execution of a decree in respect o/ 
a loan-Judgment-debtor not objecting to valuation even after 1ervict 
of notice-Application for selling asidt tht 1al• on tht vourul of 
1964 
Dhirendranath 
Gorai 
v. 
5udhir Chand1a 
Ghos/1 
1002 
SUPREME CO!JRT REPORTS 
no11-cu1npliance of the provisions of s. 35 · vf the 
Bengal 
Jo,,Jvney 
Lenders Act-Maintainability-Sale if, valid-Bengal AJoney 
Len-
a·er~' Act, 1940 ( 10 of 1940), s: 35-Code of Civil Procedure, 1908 
( V of 1908), U.XXI, rr. 64, 66 and 90. 
ln execution of a decree passed in a mortgage suit, the appellant 
11.n11exed in the execution application a Schedule comprising of J 1 pro-
vertlC1' sought to be sold for the satisfaction of the claim. The appellant 
gave valuation of the said properties. 
Though the 
1st 
responUent 
received a notice under 0.XXl, r. 66 of the Code· of Civil Procedure, 
be did not file any objection to the valuation. Though he got the sal.! 
adjourned a number of times promising to pay the decretal amount, be· 
failed to do so. Finally, two of the said properties 
were :sold. 
The 
l.!:il respondent then filed an application in the executing court for setting 
a~i<le, the saiO. sale unde:- O.XXI, r. 90 of the Code of Civil Procedure. 
inter aiia, on the ground that s. 35 of the Bengal Nloney·Lender's Act 
was not complied with. The learned subordinate Judge held that there 
was no fraua in publishing and conducting the ~ale, that the price of 
the lots sold was fair and that lhe s;.li~ was not vitiated by reason of 
1nfringen1cnt of s. 35 of the A!.:t. 
On appeal, the High Court held that 
though there bad not been any substantial injury to the 1st respondent, 
the provisions of s. 35 of the Act were 111andatory and. therefore, the 
infringen1eut of the said provisions would invalidate the sale. In this 
Court it was contended on behalf of the appellants that whether s. 35 
of the Act was mandatory or directory, the sale held in violation of the 
saiJ provision \Vas only illegal but not a nullity and, therefore, it could 
be set aside only in the manner and for the reasons prescribed in Q.XX:l, 
r. ~O of the Code of Civil Procedure, and further that. as the respon-
dents did not attend at the drawing up of the proclamation of sale. the 
!).de could not be set aside at their instance. 
Held; The non-compliance with the provisions of s. 35 of the Acl 
J~ a defect or 
<.1 irregularity in 
publi~hing or conducting the sale. 
A 
pany who received the notice of the proclamation but did not attend 
at the drawing up of the proclamation or did not object to the said 
defect cannot maintain an application under O.XXI, r. 90 of the Code 
of Civil Procedure. Even if he coul'd, the sale cannot be 
set aside 
unless by reason of the said defect or irregularity he 
bad sustained 
substantial injury. 
Ashrun1 Thikadar v. Vijay Singh Chopra, LL.R. (1944) l Cal. 
166, 
distinguished. 
Al

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