RAO MAHMOOD AHMED KHAN THROUGH THEIR L.R. versus SHRI RANBIR SINGH AND ORS.

Citation: [1995] 2 S.C.R. 230 · Decided: 22-02-1995 · Supreme Court of India · Bench: S.C. AGRAWAL · Disposal: Appeal(s) allowed

Cited by 1 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

A 
RAO MAHMOOD AHMED KHAN THROUGH THEIR L.R. 
v. 
SHRI RANBIR SINGH AND ORS. 
FEBRUARY 22, 1995 
B 
[S.C. AGRAWAL AND FAIZAN UI;>DIN, JJ.] 
U.P. Zamindari Abolition and Land Refonns Rules, 1952 : Rules 285 
D-Mandatory provision-Sale of land-By auction-Payment of one fourth 
~ 
bid amount-Rule contemplates payment by cash only-Payment by che-
c que-Not a valid tender-Sale declared a nullit)-Land liable to be resold 
forthwith. 
Code of Civil Procedure,· 1908: Order 21, Rules 84, 85 and 86-Sale 
."" 
of Property-Provision mandatory-Payment of 25 percent of bid amount-
D 
Immediately-Failure to do so would render sale a nullity-l'roperty liable to 
be re-sold forthwith-Provision similar to Rules 285D and 285E of the U.P . 
. Zamindari, Abolition and Land Refonns Rules, 1952. 
I,>-
Words and Phrases : ''lmmediately'l....J'Forthwith''-Meaning of in tlfe 
context of U.P. Zamindari Abolition and Land Rtfonns Rules, 1952. 
E 
The appellant being the defaulter of Government dues was proceeded 
against for recovery of the said amount as arrears of land revenue and in 
pursuance or recovery proceedings the Collector attached his agricultural 
land. The said land was put to auction sale. The respondent was one of the 
bidders and his bid being highest it was knocked down in his Cavour. The 
. 
F Sale, Officer taking the bid made by respondent to be adequate and 
....... 
' reasonable, accepted .the same and directed the respondent to deposit 25' 
percent of the bid amount at once and the balance of the sale amount 
within 15 days. 111~ respondent • auction purchaser deposited one-fourth 
or the bJd amount by means of a cheque on the same day which was 
---;.. 
G encashed and accounted ror after 11 days and the balance or the bid amount 
was deposited in cash well wlthhi the time stipulated by Ruie 285E ofJJ.P. 
Zamindari Abolition and Land Reforms Rules, 1952. 
I 
The appellant filed an objection before the Sale Officer for setting 
aside the auction sale on the ground that one-fourth of the bid amount was 
H not deposited as required by Jaw. The Sale Officer rejected the aforesaid 
230 
\ 
~.-f 
,) 
A' 
-( 
RM.AHMED KHAN v. R. SINGH 
231 
objection and the revision flied against the said order was dismissed by A 
the Commissioner. The said order of the Commissioner wa set aside by 
the Board of Revenue In revision on the ground that the deposit of 
one-fourth of the bid money by means of cheque was not a valid deposit 
within the meaning of Rule 285·D of the rules and the auction sale was 
therefore void. The respondent flied a Writ petition before the High Court 
challenging the aforesaid order of the Board of Revenue and It was allowed. B 
Aggrieved by the judgment of the High Court the appellant preferred the 
present appeal. 
On behalf or the appellants It was contended that Rule 285·D or the 
Rules was mandatory; that one-fourth or the bid amount had to be C 
deposited Immediately by the auction purchaser; that failure to do so 
w9uld render the sale a nullity; and that since the cheque for one-fourth 
of the bid amount was encashed four days after the auction It was not a 
valid deposit.' 
Allowing the appeal, this Court 
HELD : 1.1. Order 21, Rule 84 of the Code of Civil Procedure, 1908 
Is almost similar In terms to Rule 285·D or U.P. Zamlndarl Abolition and 
Land Reforms Rules, 1952, which provides for deposit or 25 percent or the 
bid amount Immediately and on failure to do so re·sale of the property 
forthwith. Rule 285-D requires the person declared to be purchaser to 
deposit Immediately 25 percent or the amount of his bid, and In default of 
such deposit the property shall be resold forthwith and such person who 
failed to deposit 25 percent of the bid amount shall be liable for the 
expenses Incurred In the first sale and the deficiency of price, If any, which 
may occur on the re-sale would be recovered from such defaulting pur· 
chaser as arrears of land revenue. The word "Immediately" and the expres· 
sion "re-sale of the property forthwith" are meaningful and significant. 
[237-B, FJ 
1.2. The word "Immediately" connotes and Implies that the deposit 
should be made without undue delay and within such convenient time as 
Is reasonably required for doing the thing same day with all convenient 
speed excluding the possibility of rendering the other associated cor· 
responding act and duty cast upon the omcer/authorlty conducting the sale 
as envisaged by Rule 285-D Is to put up the property for re-sale 'forthwi

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