Preliminary decree in suit for sale
Full Text
(1) In a suit for sale, if the plaintiff succeeds, the Court shall pass a preliminary decree to the effect mentioned in clauses (a), (b) and (c) (i) of sub-rule (1) of rule 2, and further directing that, in default of the defendant paying as therein mentioned, the plaintiff shall be entitled to apply for a final decree directing that the mortgaged property or a sufficient part thereof be sold, and the proceeds of the sale (after deduction therefrom of the expenses of the sale) be paid into Court and applied in payment of what has been found or declared under or by the preliminary decree due to the plaintiff, together with such amount as may have been adjudged due in respect of subsequent costs, charges, expenses and interest, and the balance, if any, be paid to the defendant or other persons entitled to receive the same.
(2) The Court may, on good cause shown and upon terms to be fixed by the Court, from time to time, at any time before a final decree for sale is passed, extend the time fixed for the payment of the amount found or declared due under sub-rule (1) or of the amount adjudged due in respect of subsequent costs, charges, expenses and interest.
(3) Power to decree sale in foreclosure-suit.—In a suit for foreclosure in the case of an anomalous mortgage, if the plaintiff succeeds, the Court may, at the instance of any party to the suit or of any other person interested in the mortgage-security or the right of redemption, pass a like decree (in lieu of a decree for foreclosure) on such terms as it thinks fit, including the deposit in Court of a reasonable sum fixed by the Court to meet the expenses of the sale and to secure the performance of the terms.
(4) Where, in a suit for sale or a suit for foreclosure in which sale is ordered, subsequent mortgagees or persons deriving title from, or subrogated to the rights of, any such mortgagees are joined as parties, the preliminary decree referred to in sub-rule (1) shall provide for the adjudication of the respective rights and liabilities of the parties to the suit in the manner and form set forth in Form No. 9, Form No. 10 or Form No. 11 as the case may be, of Appendix D with such variations as the circumstances of the case may require.
Plain English Summary
Governs preliminary decrees in mortgage suits for sale, fixing amounts due and providing a 6-month payment window, failing which the mortgagee can apply for a final decree to sell the mortgaged property at court auction.
Key Legal Elements
- Application to Simple Mortgages: Primary remedy for simple mortgages and equitable mortgages (by title deed deposit).
- Account Taking & Grace Period: Declares debt amount and allows statutory period of up to 6 months for mortgagor to pay.
- Sale of 'Sufficient Part': Mandates sale of only so much of the mortgaged property as is necessary to satisfy the mortgage claim.
- Extension of Time (Sub-rule 2): Court has power to extend redemption period before final decree.
- Conversion of Foreclosure to Sale (Sub-rule 3): Court can order sale instead of foreclosure in anomalous mortgages to prevent unjust windfall to mortgagee.
Practical Note
Duty to Sell Only 'Sufficient Part' & Form of Decree: 1. Supreme Court Mandate on Excessive Execution: In Ambati Narasayya v. M. Subba Rao (1989 Supp (2) SCC 693), the Supreme Court held that under Order XXXIV Rule 4 read with Order XXI Rule 64, the executing court has an absolute duty to consider whether sale of only a portion of the mortgaged property would suffice to satisfy the decree. Selling the entire mortgaged property when a identifiable parcel would cover the debt is illegal. 2. Preliminary vs Final Decree Limitation: The preliminary decree in a suit for sale does not directly authorize the court bailiff to auction the property; a formal final decree under Rule 5 must be obtained first.
हिंदी पाठ
(1) विक्रय के वाद में, यदि वादी सफल होता है, तो न्यायालय नियम 2 के उप-नियम (1) के खंड (क), (ख) और (ग) (i) में उल्लिखित प्रभाव वाली एक प्रारंभिक डिक्री पारित करेगा, और यह निदेश भी देगा कि प्रतिवादी द्वारा उसमें उल्लिखित रीति से संदाय न किए जाने की दशा में, वादी ऐसी अंतिम डिक्री के लिए आवेदन करने का हकदार होगा जिसमें यह निदेश दिया जाएगा कि बंधक संपत्ति या उसका पर्याप्त भाग बेच दिया जाए, तथा विक्रय के आगमों (खर्चे काटने के बाद) को वादी के शोध्य ऋण, ब्याज व खर्चों के संदाय में लगाया जाए और यदि कोई अतिशेष (Balance) बचे तो वह प्रतिवादी को दे दिया जाए।
(2) न्यायालय उचित हेतुक दर्शित किए जाने पर विक्रय के लिए अंतिम डिक्री पारित किए जाने से पूर्व किसी भी समय भुगतान की अवधि बढ़ा सकेगा।
(3) पुरोबंध वाद में विक्रय डिक्री करने की शक्ति—विलक्षण बंधक (Anomalous mortgage) की दशा में पुरोबंध के वाद में, न्यायालय किसी भी पक्षकार के अनुरोध पर पुरोबंध की डिक्री के स्थान पर विक्रय की डिक्री पारित कर सकेगा।
(4) जहां पाश्चात्य बंधकदार या प्रत्यासीन व्यक्ति पक्षकार हों, वहां प्रारंभिक डिक्री परिशिष्ट घ के प्ररूप 9, 10 या 11 के अनुसार पक्षकारों के अधिकारों का न्यायनिर्णयन करेगी।