Final decree in suit for sale
Full Text
(1) Where, on or before the day fixed or at any time before the confirmation of a sale made in pursuance of a final decree passed under sub-rule (3) of this rule, the defendant makes payment into Court of all amounts due from him under sub-rule (1) of rule 4, the Court shall, on application made by the defendant in this behalf, pass a final decree or, if such decree has been passed, an order—
(a) ordering the plaintiff to deliver up the documents referred to in the preliminary decree, and, if necessary,—
(b) ordering him to transfer the mortgaged property as directed in the said decree, and, also, if necessary,—
(c) ordering him to put the defendant in possession of the property.
(2) Where the mortgaged property or part thereof has been sold in pursuance of a decree passed under sub-rule (3) of this rule, the Court shall not pass an order under sub-rule (1) of this rule, unless the defendant, in addition to the amount mentioned in sub-rule (1), deposits in Court for payment to the purchaser a sum equal to five per cent. of the amount of the purchase-money paid into Court by the purchaser.
Where such deposit has been made, the purchaser shall be entitled to an order for repayment of the amount of the purchase-money paid into Court by him, together with a sum equal to five per cent. thereof.
(3) Where payment in accordance with sub-rule (1) has not been made, the Court shall, on application made by the plaintiff in this behalf, pass a final decree directing that the mortgaged property or a sufficient part thereof be sold, and that the proceeds of the sale be dealt with in the manner provided in sub-rule (1) of rule 4.
Plain English Summary
Allows the mortgagor to redeem the property at any time before the court confirms the auction sale upon depositing the mortgage debt plus a 5% compensatory penalty to the auction purchaser; otherwise directs the passing of a final decree for public sale.
Key Legal Elements
- Absolute Right to Redeem Until Confirmation: Mortgagor's equity of redemption does not terminate upon knockdown of bidding, but survives until confirmation under O. 21 R. 92.
- Mandatory 5% Penalty (Sub-rule 2): Mortgagor must deposit full decree debt + 5% of auction purchase money as compensation to the third-party purchaser.
- Passing of Final Decree for Sale (Sub-rule 3): On default of payment, mortgagee applies for final decree directing court sale.
- Restoration of Documents and Possession: Upon timely redemption, mortgagee must deliver up all title deeds and yield possession.
- Interplay with Order XXI Rule 89: Rule 5 provides a special statutory right of redemption distinct from and wider than general execution setting-aside provisions.
Practical Note
Survival of Redemption Right Until Confirmation of Sale: 1. Supreme Court Landmark — L.K. Trust v. EDC Ltd. (2011) 6 SCC 780: The Supreme Court reiterated that Order XXXIV Rule 5 grants a special statutory right to the mortgagor to redeem the mortgage at ANY time before the sale is confirmed by the court under Order XXI Rule 92. The mortgagor's right is paramount even if the auction has concluded, provided he deposits the mortgage amount plus 5% purchase money for the auction purchaser. 2. Supreme Court in K. Rajamouli v. A.V.K.N. Swamy (2001) 5 SCC 37: Confirmed that an appeal against dismissal of an application to set aside sale keeps the confirmation in abeyance, thereby extending the window for the mortgagor to invoke Order XXXIV Rule 5.
हिंदी पाठ
(1) जहां नियत दिन को या उससे पूर्व अथवा इस नियम के उप-नियम (3) के अधीन पारित अंतिम डिक्री के अनुसरण में किए गए विक्रय की पुष्टि (Confirmation of sale) से पूर्व किसी भी समय, प्रतिवादी नियम 4 के उप-नियम (1) के अधीन शोध्य समस्त रकमों का न्यायालय में संदाय कर देता है, वहां न्यायालय प्रतिवादी के आवेदन पर एक अंतिम डिक्री अथवा (यदि अंतिम डिक्री पहले ही पारित हो चुकी हो तो) ऐसा आदेश पारित करेगा जिसमें—
(क) वादी को प्रारंभिक डिक्री में निर्दिष्ट दस्तावेज परिदत्त करने का आदेश दिया जाएगा, और यदि आवश्यक हो तो—
(ख) बंधक संपत्ति को प्रतिवादी को अंतरित करने का आदेश दिया जाएगा, तथा—
(ग) प्रतिवादी को संपत्ति का कब्जा सौंपने का आदेश दिया जाएगा।
(2) जहां संपत्ति उप-नियम (3) की डिक्री के अनुसरण में नीलाम कर दी गई है, वहां न्यायालय तब तक उप-नियम (1) का आदेश पारित नहीं करेगा जब तक कि प्रतिवादी क्रेता को संदाय के लिए क्रेता द्वारा जमा किए गए क्रय-धन का पांच प्रतिशत (5%) के बराबर रकम भी न्यायालय में जमा न कर दे। जहां ऐसा जमा किया जाता है, वहां क्रेता क्रय-धन तथा 5% अतिरिक्त राशि वापस पाने का हकदार होगा।
(3) जहां संदाय नहीं किया गया है, वहां न्यायालय वादी के आवेदन पर अंतिम डिक्री पारित करेगा जिसमें बंधक संपत्ति या उसके पर्याप्त भाग को बेचने और आगमों का निपटारा करने का निदेश होगा।