L. MOOLCHAND AND ORS.versusFATIMA SULTANA BEGUM AND ORS.
- Citation
- 1995 INSC 733
- Decided
- 14 November 1995
- Disposal
- Dismissed
- Bench
- M M PUNCHHIS C SEN
Holding
The Court’s inherent powers under Section 151 CPC allow it to direct a lower court to examine objections to a court‑sale, and the High Court’s order was correct.
Summary
In an administrative suit concerning the sale of a property at Ootacamund, the Court appointed receivers who effected the sale. The purchasers of the property (appellants) challenged objections raised under Order 21, Rule 90 read with Section 151 of the CPC, arguing that such objections were not maintainable. The Trial Court dismissed the objections as non‑maintainable, but the High Court, invoking the Court's inherent powers under Section 151, remanded the matter to the Trial Court to examine the merits of the objections. The Supreme Court held that the Court, as the principal, may hold its receivers accountable and that the interests of justice are the paramount consideration in exercising inherent powers under Section 151. Consequently, the High Court’s direction to the Trial Court was affirmed, and the appeal was dismissed without costs.
Issues considered
- Whether objections to a court‑sale conducted by receivers are maintainable under Order 21, Rule 90 of the CPC.
- Whether Section 151 CPC empowers the Court to direct a lower court to examine the merits of such objections.
Legislation cited
- Code of Civil Procedure, 1908s. Order 21 Rule 90, s. Section 151
Subjects
Judgment
L. MOOLCHAND AND ORS. A
v.
FATIMA SULTANA BEGUM AND ORS.
NOVEMBER 14, 1995
[M.M. PUNCHHI AND S.C. SEN, JJ.] B
Code of Civil Procedure, 1908:
S.151, 0. 21 R. 9f>-Court sale-Objections tcr-Maintainability
of-Held, interests of justice are primary consideration in deciding a petition C
under S. 151-High Court rightly permitted trial court to examine the objec-
tions.
The purchasers of the property sold in a sale conducted by receivers
appointed by Court in an administrative suit, filed the present appeal
against the order of the High Court directing the Trial Court to decide on D
merits the application under S.151 CPC raising objections to the sale.
Dismissing the appeal, this Court
HELD : 1. In an administrative suit, the receivers appointed by the
Court to perform a function are agents of the Court and like a good E
principal, the Court can put the receivers to accountability. To awaken the
role of the Court in that behalf, applications by the parties connected with
the suit, are perfectly in order to obviate any doubt entering in that regard
and to effect a sense of transparency so that no blame or aspersion is cast
on the Court for its having handled the matter in a particular way. The F
Court's role is of a balancer. [230-F-G]
2. Interests of justice are the primary consideration in granting or
not granting prayers in a petition under S. 151 CPC. No rule or procedure
can curtail that power of the Court. The High Court has rightly permitted
the Trial Court to examine the objections raised. [230-H; 231-A] G
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1081 of
1976.
From the Judgment and Order dated 21.7.76 of the Andhra Pradesh
High Court in Appeal against Order No. 15/74. H
229
230 SUPREMECOURTREPORTS [1995]SUPP.5S.C.R.
A B. Kanta Rao for the Appellants.
A. Subba Rao for the Respondents.
The following Order of the Court was delivered :
B In an administrative suit, the parties had agreed for sale of a property
at Ootacamund in the State of Tamil Nadu. The receivers appointed by the
Court for the purpose sold the said property. The appellants herein are
the purchasers thereof. Some of the parties to the suit raised objections to
the sale purporting to be under Order 21, Rule 90 read with section 151
C CPC. An objection was raised before the Trial Court that such objections
were not maintainable. The Trial Court framed a preliminary issue and
went into the matter. It rejected the application being not maintainable.
The respondents herein took the matter in appeal to the High Court which
was placed before a Division Bench for disposal. The High Court agreed
with the Trial Court that an objection under Order 21, Rule 90 CPC to
D such a sale did not lie. But, since the sale had been effected by the Court
through its appointed receivers, the High Court viewed that the Court had
full control and grip over the matter, empowering it to oversee whether the
sale had been properly conducted and if there was any other objection
thereto, what was the merit of the objection. This role of the Court was .
E spelled out by the High Court to be within the domain of Section 151 CPC
which recognises and preserves the inherent powers of the Civil Court. It
is for that purpose that the High Court effected a remand to the Trial
Court to go into the matter, J:iolding the application filed by the respon-
dents maintainable. That view is in question before this Court.
F After hearing learned counsel for the parties, we are in total unison
with the views expressed by the High Court. In an administrative suit, the
receivers· appointed by the Court to perform (a) function are agents of the
Court and like a good principal, the Court can put the receivers to
accountability. To awaken the role of the Court in that behalf, applications
G by the parties connected with the suit, are perfectly in order to obviate any
doubt entering in that regard and to effect a sense of transparency so that
no blame or aspersion is cast on the Court for its having handled the matter
in a particular. way. The Court's role is of a balancer.
It has also to be borne in mind that interests of justice are the
H primary consideration in granting or not granting prayers in a petition
L. MOOLCHAND v. F.S. BEGUM 231
under Sec. 151 CPC. No rule or procedure can curtail that power of the A
Court. The High Court rightly has pursued that path in permitting the Trial
Court to examine the objections raised, to promote the cause of justice.
We, therefore, see no reason to interfere in the said order.
The appeal, therefore, fails and is hereby dismissed, but without any
order as to costs. B
R.P. Appeal dismissed.
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