Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

1973 (8) TMI 169

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... iled to mention the values put by the judgment-debtors on these properties. The respective valuations of the properties by the two sides were : 4. On 18-5-1948, long before the proclamation of sale was drawn up on 31-3-1955, the judgment debtors had put in an objection to the execution Court's order of 14-2-1948 relating to the framing of the sale proclamation, particularly with regard to the two bungalows situated in the heart of the Civil Lines, the best residential area of Allahabad. They had stated that the area of land in the compound in which the two bungalows were situated was three acres and that the whole property was not worth less than Rupees one lac. They had objected to the sale of the two bungalows in one lot. They had also asserted that the latest municipal assessment of 1944 had displaced the municipal assessment of 1934 relied upon by the decree-holder. According to the judgment-debtors, the two bungalows Nos. 8 10 on Tej Bahadur Sapru Road were assessed at annual rents of ₹ 1500/- and ₹ 1200/- per year. In an affidavit of 19-4-1947 they had asserted that a bungalow situated nearby, assessed at an annual rent of ₹ 1500/-, was sold for  .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... f worth that much. 8. The Execution Court had relied upon the Amin's report for holding that the two bungalows could be properly sold as a single unit because the servants' quarters for the two bungalows, which were situated in one compound, were the same. The judgment debtors' application had been dismissed for absence of material irregularity or fraud and want of proof of substantial injury as a result of these auction sales. A Division Bench of the High Court had affirmed these findings, but had certified the case, under Article 133 of the Constitution of India, as fit one for an appeal to this Court. 9. Two questions arise before us for decision. They are : firstly, whether there was either fraud upon the court or material irregularity in conducting the auction sales; and, secondly, whether substantial injury to the judgment-debtor had been proved have resulted from the auction sales. 10. It may be mentioned here that no one has put in appearance on behalf of the decree-holders respondents, Mr. J.N. Chatterjee, appearing on behalf of the judgment-debtors-appellants, stated that he did not want to press objection to sales of Colonelgunj and Katra properties. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... yanasundaram Mudaliar and Ors. AIR1927Mad1009 R. Srinivasan and Ors. v. the Andhra Bank Ltd. AIR 1949 Mad. 398. V.A.S. Yellappa Naidu v. G. Venugopal Naidu AIR 1958 Mad. 423 and the Allahabad High Court, in Md. Said Khan v. Md. Abdus Sami Khan and Anr. AIR1932All664 . Dwarka Dass v. Bhawani Prasad and Ors. AIR1960All510 have held that it is unnecessary for the Court to give its own estimate. The Calcutta High Court in Rajah Ramessur Proshadnarain Singh v. Rai Sham Krissen and Ors. 8 CWN 257 Saurendra Mohan Tagore v. Rurruk Chand and Ors. 12 CWN 542 Bejoy Singh Dadhulla v. Ashutosh-Gossami and Ors. AIR1924Cal589 . Lachira v. Rameshwar Singh and Ors. AIR1930Cal781 Pashupati Nath Maliah and Anr. v. Bank of Behar: AIR1932Cal141 . New Birbhum Coal Company Ltd. v. Surendra Nath Laik and Ors.: AIR1934Cal205 . the Patna High Court, in Raghunath Singh v. Hazari Sahu and Ors. AIR 1917 Pat. 381. and Mt. Golab Kuer and Anr. v. Mt. Bibi Saira and Ors. AIR1919Pat372 . and the Rangoon High Court in A.M.K.M. Finn V. Baishmaw AIR 1937 Rang 137. have expressed opinions favouring giving of the Court's own estimate of the value of the property to be sold. But, a mere acceptance of the valuation gi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 15. A review of the authorities as well as the amendments to Rule 66(2)(e) makes it abundantly clear that the Court, when stating the estimated value of the property to be sold, must not accept merely the ipse dixit of one side. It is certainly not necessary for it to state its own estimate. If this were required, it may, to be fair, necessitate insertion of something like a summary of a judicially considered order, giving its grounds, in the sale proclamation, which may confuse bidders. It may also be quite misleading if the Court's estimate is erroneous. Moreover, Rule 66(2)(e) requires the Court to state only the facts it considers material for a purchaser to judge the value and nature of the property himself. Hence, the purchaser should be left to judge the value for himself. But, essential facts which have a bearing on the very material question of value of the property and which would assist the purchaser in forming his own opinion must be stated That is, after all, the whole object of Order 21, Rule 66(2)(e), Civil Procedure Code. The Court has only to decide what all these material particulars are in each case. We think that this is an obligation imposed by Rule 66(2)( .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Pillai v. Manickavasakam Chettiar: If the respondent knew the true facts, if he purchased at what he knew was too low a figure based on an upset price accepted by the Court owing to his own initial misrepresentation and subsequent suppression of material facts, his conduct would amount to fraud on the Court as the learned subordinate judge points out . 18. It is not necessary for us to decide whether the decree-holders' conduct in the case before us would amount to actual fraud practised on the Court with regard to the valuation. The judgment-debtors were there with their own valuation and had even applied for the appointment of a Commissioner at their expense to report about matters affecting the value of the property. They had asserted that the two bungalows at Tej Bahadur Sapru Road would fetch a much higher value if sold separately. The execution court should have at least performed the duty of considering whether these objections were well-founded. 19. We find from a perusal of the sale proclamation in this case that even the area of the compound in which the two bungalows were situated was not there. The land in the compound is evidently nuzool leasehold land b .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates