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Manilal Mohanlal Shah And Others vs Sardar Sayed Ahmed Sayed Mahmad And ... on 14 April, 1954

13. The learned Counsel for the petitioners relied upon the decision of the Hon'ble Apex Court in the case of Manilal Mohanlal Shah and others Vs. Sardar Sayed Ahmed Sayed Mahmad and another, 1 in which it was held that "the inherent powers of the Court cannot be invoked to circumvent the mandatory provisions of the Code and relieve the auction purchasers of their obligation to make the deposit of purchase money under Order 21 rule 85" and it was also held that "there was default in depositing 25 percent of the purchase money and further there was no payment of the full amount of the purchase 1 AIR 1954 SC 349 15 money within fifteen days from the date of the sale. Both the deposit and the payment of the purchase money being mandatory under the combined effect of rules 84 and 85, the Court has the discretion to forfeit the deposit but it was bound to re-sell the property with the result that on default the purchaser forfeited all claim to the property. These provisions leave no doubt that unless the deposit and the payment are made as required by the mandatory provisions of the rules there is no sale in the eye of law in favour of the defaulting purchaser and no right to own and possess the property accrues to him." The Counsel for the petitioners argued that in view of the language of the relevant rules and the judicial decisions, the very fact that the Court is bound to re-sell the property in the event of a default shows that the previous proceedings for sale are completely wiped out as if they do not exist in the eye of law and when there was no sale, purchasers acquire no rights at all. He further contended that it was specifically held in the above citation that Order 21 rule 85 and 86 are mandatory and its non-compliance renders the sale proceedings as complete nullity requiring the Executing Court has to proceed with resale unless J.Dr. satisfies the decree by making the payment before resale.
Supreme Court of India Cites 8 - Cited by 150 - G Hasan - Full Document
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