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If you receive multiple notices during execution proceedings but fail to raise objections about selling the entire property, can you later challenge the auction sale after it's completed?
No. The Supreme Court has ruled that judgment debtors who receive multiple notices during execution proceedings cannot later challenge the auction sale for selling the entire property when they failed to raise objections at the appropriate stage.
Order XXI Rule 90(3) CPC specifically bars judgment debtors from raising grounds to set aside a sale that they could have taken before the sale proclamation was drawn up.
The Court emphasized that Order XXI Rule 90(3) CPC creates a statutory bar against judgment debtors raising grounds to set aside a sale that they could have raised before the sale proclamation was drawn up.
In This Case: The judgment debtors received multiple notices during the execution proceedings when the upset price was being reduced from ₹16,25,000 to ₹11,00,000. They participated to some extent but failed to raise the objection that only part of the property needed to be sold.
The Court clarified the crucial difference between cases decided before and after the 1976 amendment that introduced Order XXI Rule 90(3) CPC.
The Court's Vital Clarification: The High Court erred by applying pre-amendment case law principles without considering the statutory bar created by Order XXI Rule 90(3) CPC.
The Court balanced the executing court's duty under Order XXI Rule 66(2)(a) CPC with the judgment debtor's responsibility to raise timely objections.
The Court's Ruling: When judgment debtors are put on notice at every stage but fail to raise material irregularities, they cannot later "blithely place the burden on the executing court" to set aside a sale held years earlier.
Never Ignore Court Notices: Every notice in execution proceedings is crucial. Failure to respond can be interpreted as acquiescence.
Raise All Objections Early: If you believe only part of the property should be sold, or if there are any material irregularities, raise these objections immediately when you receive notices about sale proclamation or upset price reduction.
Know the Deadline: All grounds to challenge a sale must be raised on or before the date the sale proclamation is drawn up.
No Second Chance: The law does not give you a second opportunity to raise objections that you could have raised before the sale proclamation.
Document Your Objections: Ensure your objections are properly documented in your written submissions to the court.
Don't Remain Silent: Even if you attend proceedings, remaining silent on key issues can be treated as waiver of your rights.
Seek Legal Advice Early: Consult a lawyer as soon as you receive the first notice in execution proceedings to understand your rights and obligations.
Check Notice Compliance: Ensure that the executing court issued proper notices to judgment debtors at all stages of the execution proceedings.
Document the Process: Keep records of all sale proclamations, notices, and court orders related to the auction process.
Finality of Sale: Once the sale certificate is issued and you've paid the consideration, the sale should attain finality unless there are fundamental irregularities.
Protection Under Law: The law protects auction purchasers who participate in court-conducted sales in good faith.
"No application to set aside a sale under this rule shall be entertained upon any ground which the applicant could have taken on or before the date on which the proclamation of sale was drawn up."
This provision was introduced by the 1976 amendment and creates an absolute bar against raising belated objections.
"The court shall specify in the proclamation of sale... such other thing as the court considers material for a purchaser to know in order to judge the nature and value of the property."
This includes the court's duty to consider whether part of the property could be sold instead of the whole property.
"Vigilance is the price not only of liberty but also of successful litigation."
This judgment reinforces that the legal system expects parties to be vigilant about their rights and to raise objections at the appropriate time. Order XXI Rule 90(3) CPC serves as a statutory reminder that judgment debtors cannot stand by during execution proceedings and then challenge the sale years later based on grounds they could have raised earlier. The provision ensures finality in court proceedings and protects the rights of bonafide auction purchasers who rely on court-conducted sales.
The Supreme Court's decision emphasizes that procedural laws are not mere technicalities but essential safeguards that balance the rights of all parties involved in execution proceedings.