Telangana High Court
Smt. Pushpa Ramnani vs M/S. Vakils Impex Private Limited on 20 September, 2022
Author: P. Sree Sudha
Bench: P. Sree Sudha
THE HON'BLE SMT. JUSTICE P. SREE SUDHA
CIVIL REVISION PETITION No.15 of 2022
ORDER :
Petitioner's counsel present. In spite of service of notice, the 1st respondent has not appeared. Notice of R2 is returned with an endorsement 'unclaimed' and it is treated as proper service of notice.
Heard the petitioner's counsel.
This Civil Revision Petition is filed aggrieved by the order dated 23.12.2021 in E.P.No.370 of 2019 in O.S.No.1089 of 2014 passed by the XXVI Additional Chief Judge, City Civil Court, Hyderabad, which reads as follows :-
"DHR and counsel present. 5-Bidders present, the upset price is fixed Rs.80,00,000/- the bidders are not ready to participate. The Bidders requested the court to reduce the upset price to Rs.30,00,000/- for which the court is not inclined to reduce. Hence the auction is adjourned for hearing call on 05.01.2022."
The petitioner herein filed O.S.No.1089 of 2014 for recovery of amount and it was decreed in her 2 favour. After passing of the decree, when the petitioner intended to sell the property, the upset price of the property was fixed as Rs. 80,00,000/- (Rupees eighty lakhs only), but the bidders are not ready to participate in the auction for the said upset price and the Court below is not inclined to reduce the upset price to Rs.30,00,000/- (Rupees thirty lakhs only) and accordingly the auction was adjourned. Infact, the judgment debtors gave an undertaking to deposit half of the amount on or before 23.12.2021 but they could not deposit the amount as such the matter came up for auction of the property. As per the Market Value Certificate issued by the Registration and Stamps Department, the market value of the property is fixed at Rs.84,12,500/-. As per the Encumbrance Certificate issued by the Registration and Stamps Department, nala is existing on the northern side of the property in question.
3
Learned counsel appearing for the petitioner stated that as per the plan, the approach road to the auction property is ten feet passage and there is a nala on the northern side of the property as such, it will not fetch the market value of Rs.84,12,500/- as mentioned in the Market Value Certificate. Though the trial court is having ample power to reduce the upset price, the Court below has not reduced the upset price. In support of his contention, he relied upon the decision of the Kerala High Court in FEDERAL BANK LIMITED Vs. K.SREEDHARAN AND OTHERS1, wherein the Kerala High Court held as follows :-
"Execution of decree-Auction sale of property- Mortgagee/decree holder allowed to bid at auction-No other bidder to purchase property-Merely because R.72A(2) of 0.21 mandates that reserve price fixed should not be less than amount due under mortgage decree-Court is not powerless to reduce reserve price so as to attract bidders-Reserve price can be fixed in accordance with present market value of property."
1 AIR 2003 KERALA 199 4 He also relied upon the decision of the Madras High Court in Dr.A.U.NATARAJAN AND ANOTHER Vs. INDIAN BANK, MADRAS2, wherein the Madras High Court held that the Executing Court has power to fix upset price for sale of property and also power to reduce the same.
In view of the above decisions, this Court is of the considered view that the Court below has ample power to reduce the upset price.
Considering the above submissions of the learned counsel for the petitioner and in view of the fact that there is no passage to the property in question except ten feet passage and as there is nala on the northern side boundary of the property and as the bidders are not ready to participate for the auction in view of fixation of upset price at Rs.80,00,000/-, this Court finds it just and proper to remand the matter to the 2 AIR 1981 Madras 151 5 Court below to pass orders afresh, after considering the above said facts.
Accordingly, the Civil Revision Petition is allowed setting aside the order of the Court below. The matter is remanded to the court below to consider the above said facts and fix the upset price and directed to conduct auction, as earlier as possible, as the suit is filed in the year 2014 for recovery of amount. No costs.
Pending miscellaneous applications, if any, shall stand closed.
___________________ P. SREE SUDHA, J Date: 20.09.2022 Prv 6 THE HON'BLE SMT. JUSTICE P. SREE SUDHA 7 C.R.P.No.787 of 2021 16.09.2022 Prv