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1965 (3) TMI 112

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..... t received a letter (Ex. R. 17) from the District Rent and Managing Officer, Ludhiana, informing him that as the sale was confirmed by the Competent Officer on October 3, 1956 he should pay the rent to the respondent from that date. The appellant alleged that he had tendered rent at Rs. 12 per month to the respondent who did not accept it but demanded Rs. 20 per month. He further alleged that he had sent a money order for Rs. 12 and another for Rs. 24 which were refused by the respondent. The appellant deposited on July 16, 1958, Rs. 240 and Rs. 144 on May 25, 1959 in the Court of Senior Sub-Judge, Ludhiana (vide Exs. R. 18 and R. 20). In this way the appellant deposited rent for 32 months from October 30, 1956 to June 30, 1959 at Rs. 12 per month. Meanwhile, on May 22, 1959 the respondent made an application to the Rent Controller. Ludhiana. under Section 13 of the Act for the eviction of the appellant. He stated in that application that the tent of the shop was Rs. 20. per month and it had not been paid from October 3, 1956. He also alleged that the appellant had made material alterations in the shop and put it to use other than that for which it was taken on rent. 3. The Control .....

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..... ord that the standard rent was tendered by money order by the appellant. The only money order receipts are Exs. R. 27 and R. 28 but they show tender of rent respectively for two months from January 24, 1957 and for four months from April to July, 1959. These receipts neither cover the period from October 3, 1956 nor from December 4, 1956. Thus the only questions are (a) whether the deposits made by the appellant are adequate under Section 13 or not and (b) if not whether there should be any relief against forfeiture. 6. The property belonged to the compensation pool and was transferred under the provisions of Section 20 of the Displaced Persons (Compensation and Rehabilitation) Act, 3954 (44 of 1954). The procedure for sale of property in the compensation pool is laid down in Chapter XIV of the Displaced Persons (Compensation and Rehabilitation) Rules, 1955. The Chapter is self-contained and deals with the mode of sale of property; persons who may bid at sales; persons not eligible to purchase; the procedure for sale of property by auction; and the procedure for setting aside the sale. Unfortunately, the Rules do not indicate clearly the point of time from which the title of the au .....

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..... to send by registered post or to produce before the Settlement Commissioner or any other officer appointed by him for the purpose, a treasury challan in respect of the deposit of the balance of the purchase money. * * * (14) If the auction purchaser does not deposit the balance of the purchase money within the period specified in Sub-rule (11)............ he shall not have any claim to the property. (15) When the purchase price has been realised in full from the auction purchaser, the Managing Officer shall issue to him a sale certificate in the form specified in Appendix XXII or XXIII, as the case may be. A certified copy of the sale certificate shall be sent by him to the Registering Officer within the local limits of whose jurisdiction the whole or any part of the property to which the certificate relates is situated. If the auction purchaser is a displaced person and has associated with himself any other displaced person having a verified claim whose net compensation is to be adjusted in whole or in part against the purchase price, the sale certificate shall be made out jointly in the name of all such persons: Provided that if it is agreed in writing by all concerned that the .....

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..... r the officer appointed by him. When the full purchase price is paid a certificate issues in Form No. XXII and is sent to the Sub-Registrar for registration. If the balance of the price is not paid, the amount of advance in deposit is forfeited and the auction purchaser has no claim to the property. 9. The passing of title thus presupposes the payment of price in full and the question is at what stage this takes place. Obviously, there are several distinct stages in the sale of property. These are: (a) the fall of the hammer and the declaration of the highest bid; (b) the approval of the highest bid by the Settlement Commissioner or officer appointed by him; (c) payment of the full price after approval of the highest bid; (d) grant of certificate; and (e) registration of the certificate. 10. The first and last in this series, namely, the fall of the hammer and the registration of the certificate are not critical dates for this purpose and they have not been suggested as the starting point of title. It is also clear that till payment of full price title is in abeyance for the rules themselves say that if the price is not paid the auction purchaser has no claim to the property. Under .....

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..... e of the certificate may now be filled in the blanks. The reason appears to be this that the balance of the purchase price may not be paid before the approval of the highest bid but much later and it may be necessary to put in the date of payment rather than the date of approval of the bid. It is, however, possible to conceive of a case where the full price may be tendered before confirmation (as in this case) or the compensation may exceed the full price and it may be necessary to refund even the advance, which is to be paid when the highest bid is declared. In that case the date of confirmation or even of the auction could be the date to be mentioned in the certificate. Be that as it may, it is clear that the form used here is not the new form though the form actually used mentions all the three dates: the date of auction, the date of approval of the bid, and the date of certificate. It may be recalled that the whole of the purchase price was already paid before the approval of the final bid. 13. In Pamandas's case, MANU/RH/0013/1963, a distinction was made between certificates which mentioned the date of the commencement of title and which did not, and it was stated that whe .....

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..... ould be transferred and a sale certificate would issue. It was observed by the learned Judge: ......It is for the appellants to show that the property had been transferred. They have not stated that the sale certificate was issued, nor that the balance of the purchase money had been paid. In those circumstances, it must be held that there was as yet been no transfer of the salt pans to respondents Nos. 4 and 5. The appellants cannot, therefore, claim the benefit of Section 29 and ask that they should not be evicted. Mr. Purshottam Trikamdas contended that the sale certificate will in any event be granted and that once it is granted, as the form of this certificate shows, the transfer will relate back to the date of the auction. It is enough to say in answer to this contention that assuming it to be right, a point which is by no means obvious and which we do not decide, till it is granted no transfer with effect from any date whatsoever takes place and none has yet been granted. It has been rightly pointed out in some of the subsequent cases that the question when title passes (a question which arises directly here) was not decided in that case. If it had been established in that ca .....

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..... precise point on which he rested his new defence. The rulings on which he relies also erroneously accepted the decision of this Court in the Bombay Salt and Chemical Industries case, AIR 1958 SC 289 , to have decided the point when title commences. As has been rightly pointed out in Jaimal's case, 66 Pun LR 99: (AIR 1964 Punj 99), the point was at large. In our judgment, the landlord in the present case could maintain the proceedings for ejectment. We agree generally with the observations of Tekchand, J. in Roshanlal Goswami v. Gobind Ram, MANU/PH/0150/1963, that the landlord's right to bring a suit for ejectment need not necessarily depend on the issuance of, the certificate. In this case the landlord bad paid the full price, his bid was approved and he had received a certificate mentioning the date of confirmation. In our judgment, he obtained title on the date of confirmation of the sale and could demand rent from that date as indeed he was informed and he himself understood to be the true state of affairs. 17. It remains to consider whether there ought to have been relief from forfeiture in this case. Here the difficulty in the way of the appellant is insuperable. Secti .....

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