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SAI ENTERPRISES versus BHIMREDDY LAXMAIAH AND ANR.

Citation: [2007] 4 S.C.R. 40 · Decided: 16-03-2007 · Supreme Court of India · Bench: ARIJIT PASAYAT · Disposal: Disposed off

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Judgment (excerpt)

A 
SA! ENTERPRISES 
,A 
v. 
BHIMREDDY LAXMAIAH AND ANR. 
MARCH 16, 2007 
B 
[DR.ARIJITPASAYAT AND LOKESHWARSINGHPANTA,JJ.] 
"' 
Code of Civil Procedure, 1908: 
c 
0.21, rr. 54, 64 and 90-Execution proceedings-Sale of property-
Duty of Court-Held: Court not to allow sale of property beyond decretal 
amount-It is not just discretion but obligation cast on Court to direct sale 
of only such portion of property as is necessG1y to satis.fi' the decree. 
The appellant filed suit against respondent No.2 for recovery of Rs.4.49 
D 
lacs. Respondent No. I also filed suit against respondent No.2 for foreclosure 
of the mortgage in his favour for Rs. I lac. During the pendency of first suit, 
trial Court ordered attachment before judgment. The suit filed by respondent 
No.I was decreed against respondent No.2. Respondent No. I filed an execution 
petition and sought for sale of mortgage property as respondent No.2 did not 
satisfy the decree. The appellant's suit was also decreed against respondent 
E No.2. Respondent No.2-judgment debtor was set ex parte as he did not attend 
the execution proceedings. Proclamation was published in a newspaper. 
Appellant filed execution petition seeking direction for sale of schedule 
property for realization of Rs.5.69 lacs. 
Respondent No.2 filed an application under Order 2I Rule 69 CPC r/w. 
F ss. 47 and 151 seeking direction to stop the auction and also sought for 
adjournment of the matter for settlement of terms and conditions of sale. 
Proclamation of sale was published in another newspaper and the decree 
holder-Respondent No.I purchased the property for Rs.3.12 lacs. Thereafter 
the appellant filed an application under Order 2I Rule 90 to set aside the 
G sale and to re-auction the schedule property, as the respondent no.I has not 
taken proper steps for wide publicity of the auction. It was stated that the value 
of the property was not less than 6 lacs. The judgment-debtor Respondent 
No.2 objected in the counter that the value of the property is more than rupees 
..... 
8 lakhs. The sale was confirmed. The High Court, dismissed the Revision 
petition taking of the view that allegations made in the petition were general 
H 
40 
- )-
SAi ENTERPRISES v. BHIMREODY LAXMAIAH 
41 
in nature, and the affidavit with the petition does not disclose whether objection A 
relates to non publicatipn in the newspaper or places. 
In appeal to this Court, the appellant contended that the newspaper in 
which the publication was made was not a wide circulating newspaper. Further 
the value at which tile decree holder purchased was very low. Additionally, it 
I 
. 
was submitted that jn terms of Order 21Rule64 Code of Civil Procedure, B 
1908. the Court was required to find out whether a part of the property would 
_) 
have sufficed to meet the decretal amount, which was not done in the present 
case. 
Disposing of the aipeal, the Court 
c 
., 
~ 
HELD: I. The H~h Co"rl has oatego,kally fo"nd that iniHally the 
auction was notified in" ewspaper 'Eanadu' with wide circulation, and that 
was done on two occasio s. The grievance about the publication in a newspaper 
with inadequate circull;lti_ n would have been a factor provided the earlier notice 
was published in some tpape' not having wide dn:ulation, but admittedly D 
the publication was mad in newspaper having a wide circulation. Additionally, 
the stand regarding non ompliance with the requirements of Order 21 Rule 
54 sub-rule (2) CPC is of no consequence because the objection has to be 
specific and not to be general in nature. In the absence of specific allegations 
' 
it would not be possible for either parties or the executing court to deal with 
the same. This conclusion of the High Court is in order. However, the E 
grievance of the appellant so far non-compliance with the requirements of 
Order 21Rule64 of the Code is on sound footing. The provision contains 
some significant words. They are "necessary to satisfy the decree". Use of 
the said expression clearly indicates the legislative intent that no sale can be 
allowed beyond the decretal amount mentioned in the sale proclamation. 
F 
[Paras 7, 8, 9J (44-D, F, G; 45-A] 
r 
Takkasee/a Pedda Subba Reddi v. Pujari Padmavathamma, AIR (1977) 
SC 1789, r:elied on. 
2. In all execution proceedings, Court has to first decide whether it is G 
necessary to bring the entire property to saleor such portion thereof as may 
seem necessary to satisfy the decree. If the property is large and the decre

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