Order XXI Rule 90 CPC - The Legal Chamber

The Supreme Court held that Order XXI Rule 90(3) CPC bars judgment debtors from challenging an execution sale on grounds they could have raised before the sale proclamation was drawn up. Failure to object to the sale of an entire property, rather than a sufficient part, at the appropriate stage precludes a subsequent challenge under Order XXI Rule 90. Facts Of The Case: In 1995, decree-holder Rasheeda Yasin filed a suit for recovery of ₹3.75 lakhs against Komala Ammal and her son K.J. Prakash Kumar. An ex-parte decree was passed in 1997. Execution proceedings began in 1998 to attach and sell the judgment debtors' property—a house and site in Chennai. After multiple unsuccessful auctions due to high upset prices, the court, upon the decree-holder's applications, progressively reduced the ...

The Supreme Court upheld the High Court's decision confirming the validity of a court-auctioned property sale. It endorsed the directions for a fresh survey to demarcate the exact purchased area and for the auction purchaser to pay additional consideration, citing his conduct, while ruling that subsequent challenges to the sale were barred by law. Facts Of The Case: The dispute originated from a debt recovery proceeding initiated by the Karnataka State Financial Corporation (KSFC) against a company, for which the respondent, G.M. Krishna, was a guarantor. Following a decree, KSFC attached the respondent's agricultural land for auction. The appellant, R. Raghu, emerged as the highest bidder in a court auction in 2003, and a sale certificate was subsequently issued. The responden...

Tag: Order XXI Rule 90 CPC

CPC Order XXI Rule 90(3): Supreme Court Clarifies Time-Bar for Challenging Execution Sales

Conduct Matters: Supreme Court Confirms Auction Sale but Orders Buyer to Pay Extra ₹25 Lakh/Acre