Appeal No. 5 of 2004. Case: State Bank of India Vs Sri Rajesh Kumar. Ranchi Debt Recovery Tribunals
|Appeal No. 5 of 2004
|For Appellant: Pravin Jaiswal, Adv. and For Respondents: Party-in-Person
|S.K. Mohapatra, Presiding Officer
|Sale of Goods Act, 1930 - Section 64(2); Code of Civil Procedure (CPC) - Order 21, Rules 77 and 78; Sale of Good Rules - Rules 44(2) and 45
|II (2005) BC 68
|February 03, 2005
|Ranchi Debt Recovery Tribunals
S.K. Mohapatra, Presiding Officer
The present appeal has been filed against the order dated 11.11.2004 of learned Recovery Officer, DRT, Ranchi in R.P. No. 6/2003 and R.P. No. 1/2004 whereby the bid of respondent No. 1 in respect of five movable items was accepted.
Perused the relevant case papers including the rejoinder of respondent No. 1 and written arguments of both sides. In spite of notice judgment debtors did not appear.
Heard the arguments of both appellant and respondent.
Before dealing with the various grounds raised by the appellant it is pertinent to refer to the relevant provisions of Law and rules applicable to sale of movables.
Sub-rule 2 of Rule 44 of the Second Schedule (Procedure of Recovery of Tax) provides that "on payment of the purchase money, the officer holding the sale shall grant a certificate specifying the property purchased, the price and name of the purchaser, and the sale shall become absolute."
Rule 45 enumerate that "No irregularity in publishing or conducting the sale of movable property shall vitiate the sale, but any person sustaining substantial injury may sue for compensation".
The Rules 44 and 45 of the 2nd Schedule is in pari materia with Rules 77 and 78 of Order 21, Code of Civil Procedure. The mandatory provisions of Law in case of sale of movables provide that--
(A) Recovery Officer has discretion to allow the purchase money to be paid at a reasonable time after the sale.
(B) Sale becomes absolute as soon as purchase money is paid.
(C) No order of Court of necessary as in the case of sale of immovable property.
(D) Auction sale of movable property cannot be set-aside on the ground of irregularity in publishing or conducting the sale.
(E) Any person injured may sue.
Similar statutory provision has been provided under Sub-section 2 of Section 64 of Sale of Goods Act, 1930, which envisages that "the sale is complete when the auctioneer announces its completion by the fall of the hammer or in other customary manner." Thus the contract of sale of movables is complete soon after the bid is accepted and sale becomes absolute on payment of purchase money.
Now coming down to the conditions of sale of movable property laid and prescribed in the instant case, it is seen that these are in the line of aforesaid rules. Condition 9 of the conditions of sale of movable property provides that the price of each lot/items shall be paid at the time of the sale or as soon after the officer holding the sale directs. Condition 10 provides that the said of lots/items are strictly on as is where is basis, the position of lots and items sold deemed to have vested with the purchaser on his paying the purchase money and the sale becoming absolute immediately thereafter.
It is thus seen that the mandatory provision of law read with the conditions of sale of movable property provides that on payment of purchase money, the interest in the property sold immediately vests with the buyer as well as...
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