LexaceLexace Ask the AI ›
⚖️ Ask the AI about your situation:🚗 Car Accident💼 Work / Job🏠 Housing / Eviction👪 Family / Divorce📋 Contract Dispute💰 Money Owed

RAMCHANDRA SPG. & WVG. MILLS versus BIJLI COTTON MILLS & ORS.

Citation: [1967] 2 S.C.R. 301 · Decided: 16-12-1966 · Supreme Court of India · Bench: K.N. WANCHOO · Disposal: Dismissed

Open in Lexace · Ask the AI about this case

Judgment (excerpt)

A 
B 
c 
D 
E 
F 
RAMCHANDRA SPG. & WVG. MILLS 
\', 
BIJU COTTON MILLS & ORS. 
December 16, 1966. 
(K. N. WANCHOO, R. S. BACHAWAT AND J.M. SHELAT JJ.j 
CMI Procedure Code (Act 5 of 1908), ss. 2(2), 47,, 0.21 R.84 a11d 
0.21 R.90-Sale of properly i11 exec11tion proceedi11gs-Sa/e held by exe-
c11tir.g court to be a 11ullity 011 ground 'I/lat 011e fourth of purchase price 
not paid i111,11ediately after a11ctio11-0rder whether appea/ab/e-0.21 R.90 
whether applicable. 
The appellant's factory was sold by auction in execution of a decrc1> 
and was purchased by the respondents. The appellant challenged the sale 
on the allegation that one-fourth of the sale-proceeds was not paid !<> the 
Amin immediately after the auction and thus 0. 21 R. 84 had not been 
complied with. 
The evidence produced by the respondents showed that 
they had paid the required amount to the Amin after the latter had con-
'1.lltc<l the Munsif on the same day. 
The Civil Judge disbelieving the 
respondents' version held the oale to be a nullity and ordered a re-sale. 
The High Court howeve·r decided in favom· of the respondents and rejected 
the appellant's legal contentions that (i) the order of the Civil Judgo 
being interlocutory was not appealable and (ii) that 0. 21 R. 90 was not 
applicable. 
On appeal by Special Leave to this Court. 
HELD : (i) The sale had been declared to be a nullity and there was 
thus no question of material irregularity having been committed. 0. 21 
R. 91 therefore. did not apply. (304 A] 
(ii) The order of the Civil Judge however finally determined the 
question whether the sale was a nullity. 
After that no question was left 
to be decided as between the judgment-debtor and the auction purchaser. 
The order was therefore not an interlocutory order but a firlal order 
determining the rights of the parties. 
It fell within the definition of a 
decree under s. 2(2) read with s. 47 of the Code of Civil Procedure and 
was appealable unde.r s. 96 of the Code. (307 G; 305 Al 
Case law considered. 
Mrs. Pe/iii v. Kans/ii Gop,1/, A.LR. I 939 Lah. 210, disapproved. 
Manila/ Mohan/a/ Sha/I & Ors. v. Sardar Sayed Ahmed Sayed Mohamad 
& Anr. (1955] 1 S.C.R. 108 and Jetlia11a11d & S011.1 v. Stare of Uttar Pra-
desh, A.I.R. 1961 S.C. 794, followed. 
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 877 of 1964. 
Appeal by special leave from the judgment and order dated 
G 
May 9, 1963 of the Allahabad High Court in Execution First Appeal 
No. 4TO of 1962. 
H 
Ravinder Narain, for the appellant. 
J.P. Goyal and E. C. Agarwala, for respondents Nos. I and 2. 
The Judgment of the Court was delivered by 
Shelat, J. This appeal by special leave raises the question 
whether an order by an executing Court setting aside an auction 
sale as a nullity is an appealable order. 
0 
302 
SUPREME COURT REPORTS 
(1967] ~ S.C.R. 
In pursuance of a decree passed against the appellant (judg-
ment debtor) the judgment creditor took out 
cx~cution proceed-
ings. 
An auction sale of the factory belonging to the appellant 
was ordered by the executing court. 
In pursuance of that order 
the Amin (lhe auction officer) held an auction sale on September 10, 
1962. 
Respondent No. I was 
held to be the highest bidder for 
Rs. 2,45,000/-. The appellant challenred th~ auction sale alleging 
that the Amin had not 
realised I/4th of the sale 
proceeds 
immediately after the said auction was closed as required by 0. 21 
R. 84 of the Code of Civil Procedure. His case was that the Amin 
realised the said amount and deposited it in the Treasury on 
September 11. 1962. The appellant thereafter filed an application 
under 0. 21 
R. 
84 
before the 
Civil 
Judge, 
Aligarh. 
Respondent 
No. 
1 contested 
that application 
stating that 
he 
had 
tendered 
the 
said 
amount 
immediately 
after the 
auction, that 
the 
said amount being large 
the 
Amin hesitated to accept it in cash as it was too late that day lo 
deposit it in the Treasury. 
He also alleged that lhe Amin wanted 
to know whether he could accept a cheque instead of cash and 
therefore took Chhotelal, his representative, along with him to the 
residence of the Munsif, Hathras, to take direclions. Leaving 
Chhotelal in the car outside the 
Munsif's 
residence, the Amin 
went in to consult the Munsif if he could accept a cheque but the 
Munsif advised him to take cash. Thereafter the Amin returned 
to the car where he accepted the,.<>aid 
amount from Chhotelal 
and issued there and then a receipt therefor. The re

Excerpt shown. Read the full judgment & AI analysis in Lexace.