Tag: Sale Certificate

CPC Order XXI Rule 90(3): Supreme Court Clarifies Time-Bar for Challenging Execution Sales
10Feb By The Legal ChamberNo Comments
Supreme Court

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

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 ...
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No Redemption After Auction Notice: Supreme Court Major Ruling on Bank Loan Recovery
10Nov By The Legal ChamberNo Comments
Supreme Court

No Redemption After Auction Notice: Supreme Court Major Ruling on Bank Loan Recovery

This Supreme Court judgment clarifies that the right of redemption of a mortgagor under Section 13(8) of the SARFAESI Act is extinguished upon the publication of the notice of sale, as per the 2016 amendment. The Court held that this amended provision is retrospective in operation and overrides the general right of redemption under the Transfer of Property Act, 1882. The ruling emphasizes that only a single composite notice of sale is required under the SARFAESI Rules, irrespective of the mode of transfer adopted by the secured creditor. Facts Of The Case: The borrowers, M/s KPK Oils and Proteins India Pvt. Ltd. and its guarantors, availed credit facilities from the respondent Bank in January 2016, creating an equitable mortgage over various properties. After the loan account was classif...
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Conduct Matters: Supreme Court Confirms Auction Sale but Orders Buyer to Pay Extra ₹25 Lakh/Acre
29Sep By The Legal ChamberNo Comments
Supreme Court

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

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...
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Supreme Court Upholds Right to Peaceful Protest, Quashes Criminal Case Against Andhra Educationists
28Aug By The Legal ChamberNo Comments
Supreme Court

Supreme Court Upholds Right to Peaceful Protest, Quashes Criminal Case Against Andhra Educationists

The Supreme Court held that certified copies of municipal documents, duly certified under Section 376 of the Karnataka Municipalities Act, 1964, carry the same evidentiary value as originals. The failure of the Municipal Council to produce original records despite court orders justified drawing an adverse inference, and a registered sale certificate cannot be invalidated by a mere administrative resolution. Facts Of The Case: The dispute concerned two plots, No. 394 and 395, auctioned by the City Municipal Council (CMC). Respondent No. 2, Prabhudeva, purchased plot No. 395 in a 1973 auction, but his 1988 sale deed erroneously mentioned plot No. 394. Upon realizing this mistake, he applied for rectification in 1992. The CMC's Junior Engineer inspected the site and confirmed the error, lea...
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