Order 21 Rule 54 CPC
Provision:
Order 21, Rule 54 CPC – Sale of Immovable Property
It primarily deals with:
Mode of Sale:
The court or executing officer can sell immovable property by public auction to satisfy a decree.
Notice of Sale:
Notice of the sale must be given to:
The judgment-debtor.
Any person claiming interest in the property.
Public at large through newspapers, local publications, or official notices.
Reserve Price:
Court may fix a reserve price below which the property cannot be sold.
Execution of Sale:
Property is sold to the highest bidder.
Sale proceeds are applied to satisfy the decree.
Any excess amount after satisfying the decree is returned to the judgment-debtor.
Conveyance of Property:
The purchaser at auction gets a sale certificate.
Right, title, and interest of the judgment-debtor vest in the purchaser.
Adjournment and Re-auction:
Court may adjourn or postpone the sale.
If the property is not sold, it can be re-sold under the same procedure.
Key Points:
Purpose:
To enforce a decree involving immovable property.
Ensures judicial authority in property transfer under execution.
Judicial Control:
Court supervises the entire process to avoid collusion or undervaluation.
Rights of Parties:
Judgment-debtor cannot refuse sale once proper notice is given.
Purchaser gets absolute title once sale is confirmed.
Application:
Applies when decree-holder seeks sale of property to recover money due.
Covers land, building, or other immovable property.
Practical Illustration:
Example:
A creditor wins a decree for ₹50 lakhs against a debtor.
Debtor owns a house.
Court fixes a reserve price of ₹60 lakhs and notifies public and parties.
Highest bid is ₹65 lakhs → Court confirms sale.
₹50 lakhs goes to creditor, ₹15 lakhs returned to debtor.
Buyer gets sale certificate, and the house legally transfers to him.
Significance:
Provides a clear, regulated procedure for sale of immovable property under a decree.
Protects interests of the decree-holder, judgment-debtor, and purchaser.
Prevents arbitrary sale or undervaluation of property.
Ensures court-supervised transfer of property, minimizing disputes.
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