Application to set aside sale on deposit
Full Text
(1) Where immovable property has been sold in execution of a decree, any person claiming an interest in the property sold at the time of the sale or at the time of making the application, or acting for or in the interest of such person, may apply to have the sale set aside on his depositing in Court,—
(a) for payment to the purchaser, a sum equal to five per cent of the purchase-money, and
(b) for payment to the decree-holder, the amount specified in the proclamation of sale as that for the recovery of which the sale was ordered, less any amount which may, since the date of such proclamation of sale, have been received by the decree-holder.
(2) Where a person applies under rule 90 to set aside the sale of his immovable property, he shall not, unless he withdraws his application, be entitled to make or prosecute an application under this rule.
(3) Nothing in this rule shall relieve the judgment-debtor from any liability he may be under in respect of costs and interest not covered by the proclamation of sale.
Plain English Summary
Provides a benevolent statutory mechanism allowing the judgment-debtor or interested person to set aside an auction sale within 60 days by depositing the full decretal debt plus a 5% statutory sweetener for the auction purchaser, conditioned on withdrawing any Rule 90 fraud challenge.
Key Legal Elements
- Locus Standi: Any person claiming an interest in the property at the time of sale or application.
- Dual Mandatory Deposit: (1) 5% penalty solatium to the auction purchaser; (2) Full decretal sum stated in proclamation to decree-holder.
- 60-Day Limitation Window: Under Article 127 of the Limitation Act (as amended in 2002), deposit and application must be made within 60 days.
- Doctrine of Election (Sub-rule 2): Cannot pursue Rule 89 and Rule 90 simultaneously; Rule 90 petition must be withdrawn.
Practical Note
Redeeming Property Under Order XXI Rule 89: 1. Landmark Authorities - Dadi Jagannadham v. Jammulu Ramulu (2001) 7 SCC 71 (Constitution Bench) & Challamane Huchha Gowda v. M.R. Tirumala (2004) 1 SCC 453: The limitation period for depositing the amount and filing the application under Rule 89 is 60 days from the date of sale (Article 127 Limitation Act). The 5% solatium to the purchaser is mandatory and compensatory for his trouble. 2. Inadvertent Shortfall: The 2002 amendment to Rule 92(2) protects depositors: if there is a minor clerical or arithmetical deficit, the court can grant time to make good the deficiency. 3. Golden Practice: Never file under Rule 89 without withdrawing any pending Rule 90 petition first.
हिंदी पाठ
(1) जहां किसी डिक्री के निष्पादन में स्थावर संपत्ति बेची जा चुकी है, वहां विक्रय के समय या आवेदन करने के समय संपत्ति में हित रखने का दावा करने वाला कोई भी व्यक्ति न्यायालय में निम्नलिखित जमा करके विक्रय को अपास्त कराने का आवेदन कर सकेगा—
(क) क्रेता को संदाय के लिए, क्रय-धन के पांच प्रतिशत (5%) के बराबर राशि; तथा
(ख) डिक्रीदार को संदाय के लिए, विक्रय उद्घोषणा में विनिर्दिष्ट वह राशि जिसकी वसूली के लिए विक्रय का आदेश दिया गया था (घटाकर वह राशि जो डिक्रीदार को प्राप्त हो चुकी हो)।
(2) जहां कोई व्यक्ति नियम 90 के अधीन विक्रय अपास्त कराने का आवेदन करता है, वहां जब तक वह अपना आवेदन वापस न ले ले, वह इस नियम के अधीन आवेदन करने का हकदार नहीं होगा।
(3) यह नियम निर्णय-ऋणी को उन खर्चों और ब्याज के दायित्व से मुक्त नहीं करेगा जो विक्रय उद्घोषणा में शामिल नहीं थे।