Attachment of Property (Order XXI Rules 54-66)

Attachment of various properties

Attachment of property is one of the key modes of execution of a decree under Section 51(b) of the Code of Civil Procedure, 1908 (CPC). It is a process by which the Court brings the property of the judgment-debtor under its own custody or control, preventing the judgment-debtor from dealing with it. The purpose of attachment is to secure the property so that it can be subsequently sold to satisfy the decree.

Order XXI of the CPC lays down the detailed rules for the execution of decrees. Rules 41 to 58 specifically deal with the attachment of various types of property. The procedure for attachment varies depending on whether the property is movable or immovable, and in whose possession it is.

Attachment of immovable property

The procedure for the attachment of immovable property is primarily governed by Order XXI, Rule 54. This rule outlines the steps the Court must take to effect the attachment:

(1) Order of Attachment: The Court passes an order prohibiting the judgment-debtor from transferring or charging the property in any way, and prohibiting all persons from transferring or charging the property in favour of the judgment-debtor, or from receiving the property from him.

(2) Proclamation: A copy of the order of attachment is affixed on a conspicuous part of the property itself. This serves as a public notice to anyone dealing with the property.

(3) Affixing on Court Notice Board: A copy of the order is also affixed on the outer door of the Court-house and on the notice board.

(4) Proclamation in Locality: Where the property is land paying revenue to the Government, a copy of the order is also affixed in the office of the Collector of the district where the land is situated.

(5) Registration: If the property is situated in a district where the Indian Registration Act, 1908, is in force, and the property is of a nature that requires registration of transactions relating to it, a copy of the order must be sent to the registering officer of the district or sub-district where the property is situated. The registering officer is required to file this order in the book kept for recording attachments.

Effect of Attachment (Section 64): Once an attachment is made, any private transfer or delivery of the property attached, or of any interest therein, contrary to such attachment, shall be void as against all claims enforceable under the attachment. This prevents the judgment-debtor from selling or gifting the property after it has been attached by the Court for execution.

Attachment of movable property

The procedure for attaching movable property depends on its nature and whether it is in the possession of the judgment-debtor or a third party. Order XXI, Rules 43 to 53 cover various scenarios:

(a) Movable property in possession of the judgment-debtor (Order XXI, Rule 43): The attachment is made by actual seizure of the property. The attaching officer takes the property into their custody. If the property is livestock or other movable property which cannot be conveniently removed, it may be left in the custody of a respectable person (known as a 'custodian' or 'supurdar') who executes a bond for its production when required by the Court.

(b) Movable property not in possession of the judgment-debtor (e.g., a debt not secured by a negotiable instrument, share in a corporation) (Order XXI, Rule 46): Attachment is made by a written order (a prohibitory order) prohibiting:

The creditor (judgment-debtor) from recovering the debt or transferring the share.
The debtor (person who owes the debt to the judgment-debtor) from paying the debt to anyone other than the Court.
The corporation from permitting the transfer of the share or paying dividends to the judgment-debtor.

A copy of this order is served on the judgment-debtor and the person or corporation holding the property/debt.

(c) Attachment of salary or allowances of Government servant or railway servant or local authority servant (Order XXI, Rule 48): A specific procedure is prescribed. The Court can issue an order to the disbursing officer of the Government or authority to deduct a portion of the salary/allowance as per the law (Section 60(1)(i) specifies attachable portion) and pay it to the Court. This order is served on the disbursing officer.

(d) Attachment of Negotiable Instruments (Order XXI, Rule 51): If the property is a promissory note, bill of exchange, or cheque, the attachment is made by actual seizure, if it is in the judgment-debtor's possession. If it is not, the person in possession can be prohibited from transferring it.

(e) Attachment of Property in Custody of Court (Order XXI, Rule 52): Where the property sought to be attached is in the custody of another Court or a public officer, the attachment is made by a notice to such Court or officer requesting that the property be held subject to the further orders of the attaching Court.

The procedures ensure that the movable property is secured and cannot be dealt with by the judgment-debtor while the execution process is ongoing.

Attachment before Judgment (Order XXXVIII)

Attachment Before Judgment (ABJ) is a preventive measure available to the plaintiff *before* a decree is passed in their favour. It is governed by Order XXXVIII of the CPC. The purpose is to prevent the defendant from disposing of their property during the pendency of the suit with the intention of defeating any decree that may be passed against them in the future.

When ABJ can be sought (Order XXXVIII, Rule 1 & 5)

ABJ is not a right; it is a discretionary power of the Court. A plaintiff can apply for ABJ if they can satisfy the Court, by affidavit or otherwise, that the defendant is attempting to:

Dispose of or remove the whole or any part of his property from the local limits of the Court's jurisdiction.
Abscond or leave the local limits of the Court's jurisdiction.

The intention behind such action must be to obstruct or delay the execution of any decree that may be passed against the defendant.

The Court must be satisfied that the plaintiff has a strong prima facie case and that the defendant's conduct indicates an intention to defeat the decree. Mere allegations are not sufficient.

Procedure for ABJ (Order XXXVIII, Rules 5-12)

Application by Plaintiff: The plaintiff files an application supported by an affidavit stating the grounds for seeking ABJ and identifying the property to be attached.
Conditional Attachment Order (Rule 5): If the Court is satisfied with the plaintiff's grounds, it does not usually order attachment immediately. Instead, it passes a conditional order directing the defendant either to:
- Furnish security sufficient to satisfy any decree that may be passed in the suit; OR
- Show cause why he should not furnish such security.
The Court may also order a conditional attachment of the property, specifying that the attachment will become absolute if the defendant fails to show cause or furnish security.
Service of Notice/Warrant (Rule 6): Notice of the show-cause order (and conditional attachment, if ordered) is served on the defendant.
Hearing and Final Order (Rule 6): On the date fixed, the Court hears the parties. If the defendant fails to show sufficient cause, or fails to furnish the required security within the time fixed, the Court may order the attachment of the property specified in the application or such portion thereof as appears sufficient to satisfy the decree. If the defendant shows cause and the Court is not satisfied that grounds for ABJ exist, the conditional attachment (if any) is withdrawn, and the application is dismissed.
Manner of Attachment (Rule 7): The attachment is made in the manner provided for the attachment of property in execution of a decree (i.e., rules of Order XXI apply).
Investigation of Claims (Rule 8): Claims or objections to ABJ can be investigated similar to those in execution proceedings.

Effect of ABJ:

ABJ prevents the defendant from transferring or creating any charge on the attached property. Any transfer or charge created after ABJ is void as against all claims enforceable under the attachment (Rule 10). However, ABJ does not create any charge or priority in favour of the attaching creditor over other creditors (Rule 10). It merely preserves the property in its existing condition to be available for execution later.

If the plaintiff's suit is dismissed, the attachment before judgment is automatically withdrawn (Rule 9).

Example 1. Mr. Suresh files a suit against Mr. Gopal for recovery of Rs. 15,00,000/-. During the pendency of the suit, Mr. Suresh learns that Mr. Gopal is selling his apartment in Mumbai and is planning to move to another city with the money, likely to avoid paying the potential decree. What can Mr. Suresh do to prevent this?

Answer:

Mr. Suresh can file an application for Attachment Before Judgment (ABJ) under Order XXXVIII, Rule 5 of the CPC before the Court where the suit is pending. He must satisfy the Court, typically through an affidavit, that Mr. Gopal is disposing of his property (the apartment) with the intention of obstructing or delaying the execution of the decree that may be passed against him. If the Court is satisfied, it will issue a show-cause notice to Mr. Gopal asking him to either furnish security for Rs. 15,00,000/- or show cause why he should not do so. The Court may also order a conditional attachment of the apartment. If Mr. Gopal fails to furnish security or show sufficient cause, the Court can order the attachment of the apartment, preventing him from selling it during the suit's pendency.

Property which may be attached and sold in execution of a decree

Section 60(1) of the CPC specifies what property belonging to the judgment-debtor is liable to attachment and sale in execution of a decree. The general rule is that all saleable property (movable or immovable) belonging to the judgment-debtor is liable, unless it is specifically exempted by the proviso to Section 60(1).

Property liable to attachment and sale includes:

Lands, houses or other buildings: Immovable properties owned by the judgment-debtor.
Goods: Tangible movable properties.
Money, banknotes, cheques, bills of exchange, hundis, promissory notes, Government securities, bonds or other securities for money: Various forms of financial assets and instruments.
Debts: Amounts owed to the judgment-debtor by third parties.
Shares in a corporation: Ownership interest in a company.
Other saleable property: Any other property (movable or immovable) belonging to the judgment-debtor or over which they have the power to sell or dispose of for their own benefit. This is a residuary clause covering any other asset of value.

This list is illustrative and not exhaustive. The key is that the property must belong to the judgment-debtor or be at their disposal for their own benefit, and it must be capable of being sold to realize the decree amount.

Example 2. Mr. Deepak has a decree for Rs. 8,00,000/- against Mr. Amit. Mr. Amit owns a house, has a car, has some money in a fixed deposit account, is owed Rs. 50,000/- by his friend Mr. Vikas, and owns 500 shares in a private company. Which of these properties can Mr. Deepak seek to attach and sell?

Answer:

Based on Section 60(1), Mr. Deepak can seek to attach and sell the following properties belonging to Mr. Amit:

The house: This is immovable property (land/building).
The car: This is movable property (goods).
The fixed deposit: This represents money/security for money.
The debt owed by Mr. Vikas (Rs. 50,000/-): This is a debt owed to the judgment-debtor.
The shares in the private company: These are shares in a corporation.

All these fall under the categories of property liable to attachment and sale under Section 60(1), provided they are not exempted under the proviso to Section 60(1) (which typically exempts basic necessities, certain incomes, etc., not assets like houses, cars, FDs, debts or shares unless they fall into specific prohibited categories).

Property which may not be attached or sold

The proviso to Section 60(1) enumerates a list of properties that are exempt from attachment or sale in execution of a decree. This list is designed to protect certain basic necessities of the judgment-debtor and their family, livelihood-related items, and specific welfare benefits, so that execution does not render the debtor completely destitute.

The exempted properties include (but are not limited to - some State amendments might add more):

**(a)** The necessary wearing-apparel, cooking vessels, beds and bedding of the judgment-debtor, his wife and children, and personal ornaments as, in accordance with religious usage, are not to be parted with by any woman.
**(b)** Tools of artisans, and, where the judgment-debtor is an agriculturist, his implements of husbandry and such cattle and seed-grain as may, in the opinion of the Court, be necessary to enable him to earn his livelihood as such agriculturist, and such portion of agricultural produce or of any class of agricultural produce as may, in the opinion of the Court, be necessary for the support of the judgment-debtor and his family until the next harvest. (Subject to certain limits).
**(c)** Houses and other buildings (with the materials and the sites thereof and the land immediately appurtenant thereto and necessary for their enjoyment) belonging to an agriculturist or a labourer or a domestic servant and occupied by him.
**(d)** Books of accounts.
**(e)** A mere right to sue for damages.
**(f)** Any right of personal service.
**(g)** Stipends and gratuities allowed to pensioners of the Government or of a local authority or of any other employer, or payable out of any service family pension fund notified in the Official Gazette by the Central Government or the State Government in this behalf, and political pensions.
**(h)** The wages of labourers and domestic servants, whether payable in money or kind.
**(i)** Salary to the extent of the first one thousand rupees and two-thirds of the remainder in execution of any decree other than a decree for maintenance (as amended by CPC Amendment Act, 2004). Salary is fully attachable for maintenance decrees.
**(ia)** Any allowance forming part of the emoluments of any servant of the Government or of any servant of a railway company or local authority or of any other employer which the appropriate Government may by notification in the Official Gazette declare to be exempt from attachment, and any subsistence grant or allowance made to any such servant while under suspension.
**(j)** The pay and allowances of persons to whom the Air Force Act, 1950, or the Army Act, 1950, or the Navy Act, 1957, applies.
**(k)** All compulsory deposits and other sums in provident funds (including those under the Provident Funds Act, 1925, EPF Act, 1952, Public Provident Fund Act, 1968, etc.).
**(ka)** All deposits and other sums in the Life Insurance Policy of the judgment-debtor. (This clause was added to protect life insurance policy proceeds from attachment).
**(kb)** The interest of a lessee in a residential building to which the provisions of law for the time being in force relating to control of rents and eviction apply. (Protects tenants under rent control laws).
**(l)** Any residential house or other building belonging to a member of a rural artisan, commonly known as *Vishwakarma*, and occupied by him.

This list highlights the legislative intent to balance the rights of the decree-holder with the need to ensure the basic sustenance and livelihood of the judgment-debtor and their family.

Example 3. Mr. Ravi, a farmer, owes Rs. 2,00,000/- under a decree. He owns 5 acres of agricultural land, a small house in the village he lives in, his farming equipment (a tractor and plough), two oxen, and enough grain stored for his family's consumption until the next harvest. Can the decree-holder attach and sell all of these properties?

Answer:

No, the decree-holder cannot attach and sell all of these properties. According to the proviso to Section 60(1):

The agricultural land can be attached and sold, as it is not generally exempt (unless there's a specific State law protecting small landholdings, which varies).
The small house occupied by Mr. Ravi, as an agriculturist, is exempt from attachment and sale under Section 60(1)(c).
His implements of husbandry (tractor, plough) and the oxen needed to earn his livelihood as an agriculturist are exempt under Section 60(1)(b).
The stored grain necessary for the support of his family until the next harvest is also exempt under Section 60(1)(b).

Therefore, while the land might be attachable, his house, farming equipment, oxen, and necessary grain are likely protected from attachment and sale under the exemptions provided in Section 60(1) Proviso.

Sale of Property (Order XXI Rules 64-94)

Proclamation of Sale

Once the judgment-debtor's property has been attached in execution of a decree, the next step, if the decree is not satisfied by other means, is the sale of the attached property. The proceeds from the sale are then used to satisfy the decree amount. Before any sale can take place, the Court must issue a public notice about the intended sale. This notice is called the Proclamation of Sale.

Contents of Proclamation of Sale (Order XXI, Rule 66)

Rule 66 of Order XXI lays down the detailed particulars that must be included in the proclamation of sale. The proclamation must be drawn up after notice to the decree-holder and the judgment-debtor, and it must state the time and place of sale and specify as fairly and accurately as possible:

Property to be Sold: A description of the property to be sold, including boundaries where relevant, or any other details necessary to identify the property.
Interest of Judgment-Debtor: The right, title, and interest which the judgment-debtor is believed to have in that property.
Encumbrances: Any known or ascertained encumbrances (e.g., mortgages, charges, leases) to which the property is liable. The Court is not obligated to find out encumbrances but must state those which are known to it or have been brought to its notice.
Amount to be Recovered: The amount for the recovery of which the sale is ordered.
Reserve Price (if any): A reserve price, if any, for the property (this is discretionary for the Court).
Other Details: Any other particulars which the Court considers material for a purchaser to know to judge the nature and value of the property. This may include information about pending litigation affecting the property, zoning restrictions, etc.

The estimate of the value of the property, as stated by both the decree-holder and the judgment-debtor (if they provide one), must also be included in the proclamation (Rule 66(2)(e)). The Court, however, is not required to make its own valuation but must state the value furnished by the parties.

Mode of Making Proclamation (Order XXI, Rule 67)

Rule 67 prescribes how the proclamation of sale is to be made public to ensure potential buyers are aware of the sale. It should be made in the manner prescribed for the service of summons (usually by delivery) and also by affixing a copy:

On the Court-house.
On a conspicuous part of the property to be sold.
Where the property is land paying revenue to the Government, in the office of the Collector of the district where the land is situated.

The Court may also order publication of the proclamation by beat of drum or in a local newspaper, depending on the nature and value of the property. The object is to give wide publicity to the sale to attract bidders.

A sale held without a proper and legally compliant proclamation of sale may be liable to be set aside on the ground of material irregularity under Order XXI, Rule 90.

Example 1. The Court orders the sale of Mr. Rajesh's apartment in Delhi for execution of a money decree. Before the auction, what information must be included in the proclamation of sale regarding the apartment?

Answer:

According to Order XXI, Rule 66, the proclamation of sale must include details necessary for potential buyers. For Mr. Rajesh's apartment, this would include:

A clear description of the apartment (address, floor number, area, layout if possible).
Mr. Rajesh's title or interest in the apartment (e.g., freehold owner, leaseholder).
Any known charges or mortgages on the apartment.
The amount for which the sale is being conducted.
The time and place of the auction.
The value estimated by both the decree-holder and Mr. Rajesh.
Any other relevant details about the property that might affect its value or title.

A copy of this proclamation must also be affixed on the apartment itself and in the Court-house.

Procedure of Sale

After the proclamation of sale has been duly published, the property is put up for sale. Order XXI, Rules 65 to 73 (for movable property) and 82 to 88 (for immovable property) prescribe the procedure for conducting the court auction.

Auction

The sale is typically conducted by public auction (unless the Court orders otherwise, which is rare). The auction is conducted by an officer of the Court appointed for this purpose, or by any other person authorized by the Court (Order XXI, Rule 65).

For Movable Property (Order XXI, Rules 74-78): Specific rules apply to different types of movable property:

Agricultural produce: May be sold standing or when reaped, near the place where it is produced (Rule 74).
Negotiable instruments or shares: If not seized, the holder can be prohibited from transferring them (Rule 76). They may be sold through a broker (Rule 77).
Other movable property: Sold at the place where it was seized or where the Court directs (Rule 78).

The sale of movable property is usually completed at the time of auction by payment of the full price (Rules 79, 80).

For Immovable Property (Order XXI, Rules 82-88):

Place of Sale: Sales of immovable property in execution of decrees may be ordered by any Court, but shall, except when the property is situate within the local limits of the ordinary original civil jurisdiction of the High Court, be conducted by the Court ordering the sale or by such other Court as the High Court may from time to time appoint (Rule 82). This sale usually takes place at the Court-house or such other place as the Court may appoint (Rule 83).
Adjournment of Sale (Rule 69): The Court has the power to adjourn the sale. However, if the sale is adjourned for a period exceeding thirty days, a fresh proclamation of sale must be issued unless the judgment-debtor consents to waive it.

Deposit by purchaser

For sale of immovable property, the procedure regarding deposit by the purchaser is critical and is governed by Rules 84 to 86:

Immediate Deposit (Rule 84): The person who is declared to be the purchaser at the sale shall immediately after such declaration, deposit twenty-five percent (25%) on the amount of his purchase-money to the officer or other person conducting the sale. If they fail to make this deposit, the property shall be put up again and sold at once.
Payment of Full Price (Rule 85): The remainder of the purchase-money, along with the stamp duty for the certificate of sale, must be paid into Court within fifteen days from the date of sale.
Default in Payment (Rule 86): If the purchaser fails to pay the remainder of the purchase-money and stamp duty within the fifteen-day period, the deposit of 25% shall be forfeited to the Government. The property shall be re-sold, and the defaulting purchaser shall forfeit all claim to the property and any part of the sum for which it may subsequently be sold. They also become liable for any deficiency in price on the re-sale compared to the original sale.

These rules ensure seriousness on the part of bidders and prompt payment of the purchase price to facilitate the satisfaction of the decree.

Example 2. Mr. Agarwal successfully bids Rs. 50,00,000/- for an attached plot of land at a court auction on 1st March 2024. What are his immediate obligations and what is the deadline for the remaining payment?

Answer:

Immediately after being declared the purchaser on 1st March 2024, Mr. Agarwal must deposit 25% of the purchase-money with the officer conducting the sale, i.e., $25\%$ of Rs. $50,00,000$ which is Rs. $12,50,000$. He must do this without delay. The remaining 75% of the purchase-money (Rs. $37,50,000$) along with the applicable stamp duty for the sale certificate must be paid into the Court within fifteen days from the date of sale, i.e., by 16th March 2024. If he fails to pay the balance by this date, his initial deposit of Rs. 12,50,000/- will be forfeited, and the property will be re-sold.

Setting Aside of Sale

A court sale in execution of a decree is not necessarily final immediately after the auction. The Code provides mechanisms for interested parties to apply to the Court to set aside the sale under specific grounds and procedures, as laid down in Order XXI, Rules 89 to 92.

Deposit of decretal amount (Order XXI, Rule 89)

This is one of the ways to set aside a court sale. Any person claiming an interest in the property sold (including the judgment-debtor) can apply to have the sale set aside by making a specific deposit into Court. The conditions for applying under Rule 89 are:

The applicant must apply within sixty days from the date of sale (as per Article 127 of the Limitation Act, 1963).
The applicant must deposit in Court:
- The amount specified in the proclamation of sale as that for the recovery of which the sale was ordered, less any amount already received by the decree-holder (essentially, the decretal amount + costs).
- For payment to the purchaser, a sum equal to five percent (5%) of the purchase-money. This is compensation to the purchaser for the trouble and expenses incurred.
Notice of the application must be given to the persons affected by the sale.

If these conditions are fulfilled and the deposit is made within time, the Court shall make an order setting aside the sale, provided the purchaser is not the decree-holder and the applicant has not withdrawn the deposit (Rule 92). This rule is based on the principle that if the decree is satisfied and the purchaser is compensated, the sale should be set aside to restore the property to the judgment-debtor or other interested party.

Material irregularity or fraud (Order XXI, Rule 90)

Any person whose interests are affected by the sale may apply to the Court to set aside the sale on the ground of a material irregularity or fraud in publishing or conducting it. The conditions are:

The applicant must be a person whose interests are affected by the sale (e.g., judgment-debtor, decree-holder, claimant, mortgage holder).
The application must be made within sixty days from the date of sale (Article 127 of Limitation Act, 1963).
The ground must be a material irregularity or fraud in the publication or conduct of the sale (e.g., improper proclamation, sale at the wrong time or place, collusion among bidders, failure to follow prescribed procedure).
The applicant must also prove that they have sustained substantial injury by reason of such irregularity or fraud. Proving irregularity or fraud alone is not sufficient; the applicant must show a causal connection between the irregularity/fraud and the substantial injury (e.g., the property fetched a significantly lower price than its market value).

If the Court is satisfied that there was a material irregularity or fraud and that the applicant has sustained substantial injury by reason thereof, it may make an order setting aside the sale (Rule 92). Unlike Rule 89 which is mandatory if conditions are met, setting aside under Rule 90 is discretionary for the Court even if the grounds are proven.

Other Grounds for Setting Aside Sale:

Order XXI, Rule 91: The purchaser at the sale may apply to set aside the sale on the ground that the judgment-debtor had no saleable interest in the property sold. If the Court is satisfied after notice to the parties, it may set aside the sale. The purchaser is then entitled to a refund of the purchase money.

Consequences of Setting Aside (Order XXI, Rule 92):

If an application under Rule 89, Rule 90, or Rule 91 is allowed, the Court makes an order setting aside the sale.
If no application is made within the limitation period, or if all applications are disallowed, the Court shall make an order confirming the sale.
No suit lies to set aside an order under Rule 92.

Example 3. Mr. Sharma's property was sold in a court auction on 10th February 2024 for Rs. 40,00,000/- to satisfy a decree of Rs. 35,00,000/-. Mr. Sharma wants to get the sale set aside. He has arranged Rs. 35,00,000/- plus 5% of the sale price. He files an application on 5th April 2024, depositing Rs. 35,00,000/- and $5\%$ of Rs. 40,00,000/- (Rs. 2,00,000/-) in Court. Can the Court set aside the sale?

Answer:

Yes, the Court shall set aside the sale in this case, provided the purchaser is not the decree-holder and Mr. Sharma has not withdrawn the deposit. Mr. Sharma has applied under Order XXI, Rule 89. He has deposited the required amount (the decretal amount of Rs. 35,00,000/- and 5% of the purchase money Rs. 2,00,000/-). The application is filed on 5th April 2024, which is within sixty days from the date of sale (10th February 2024). Since all the conditions of Rule 89 are met, the Court is bound to set aside the sale under Order XXI, Rule 92.

Example 4. A court sale of property took place. The judgment-debtor applies to set aside the sale under Order XXI, Rule 90, alleging that the proclamation of sale was published in an obscure newspaper with limited circulation, and that this irregularity caused the property, valued at Rs. 1 Crore, to be sold for only Rs. 60 Lakhs. The judgment-debtor provides evidence of the actual market value and the limited circulation of the newspaper. Can the Court set aside the sale?

Answer:

Yes, the Court *may* set aside the sale in this case if it is satisfied with the evidence. The judgment-debtor is applying under Order XXI, Rule 90, on the ground of material irregularity in publishing the sale proclamation. Publishing in an obscure newspaper when a wider circulation would be expected for a property of that value can be considered a material irregularity in publication. The judgment-debtor has also alleged and provided evidence of substantial injury (sale at Rs. 60 Lakhs instead of Rs. 1 Crore) and has linked this injury to the alleged irregularity. If the Court is convinced that the irregularity was material and caused the substantial injury claimed, it has the discretion to set aside the sale under Order XXI, Rule 92. However, it is not mandatory; the Court will evaluate the seriousness of the irregularity and the causal link to the injury.

Certificate of Sale

If no application to set aside the sale is made within the limitation period, or if such applications are made and disallowed, the Court passes an order confirming the sale. After the confirmation of the sale, the Court issues a Certificate of Sale to the purchaser.

Issuance and Effect of Certificate of Sale (Order XXI, Rule 94)

Order XXI, Rule 94 states:

"Where a sale of immovable property has become absolute, the Court shall grant a certificate specifying the property sold and the name of the person who at the time of sale is declared to be the purchaser and the date when the sale became absolute."

Key aspects of the Certificate of Sale:

Issued After Confirmation: The certificate is granted only after the sale has become "absolute", which means it has been confirmed by the Court under Rule 92.
Issued by the Court: The Court itself grants the certificate.
Contents: It specifies the property sold, the name of the purchaser, and the date on which the sale became absolute.
Effect on Title: The certificate is the document that serves as proof of the purchaser's title to the property acquired through the court sale.
Relates Back to Date of Sale: While the certificate is issued after confirmation, Section 65 of the CPC provides a crucial legal effect: "Where immovable property in execution of a decree is sold to a person other than the decree-holder, and such sale has become absolute, the property shall be deemed to have vested in the purchaser from the time when the property is sold and not from the time when the sale becomes absolute." This means the purchaser's title relates back to the date when the property was actually knocked down at the auction, although the title becomes perfected only after the sale is confirmed and the certificate is issued.
Registration: A certificate of sale of immovable property of the value of one hundred rupees and upwards is a compulsorily registrable document under Section 17(2)(xii) of the Indian Registration Act, 1908. Once registered, it provides conclusive proof of title.

The issuance of the sale certificate marks the completion of the sale process in execution, transferring the rights of the judgment-debtor in the property to the auction purchaser.

Example 5. Mr. Kishore purchased an attached plot of land in a court auction on 15th March 2024. No application to set aside the sale was filed, and the Court confirmed the sale on 20th May 2024. When will Mr. Kishore receive the certificate of sale, and from what date will his ownership of the land be deemed to have started?

Answer:

Mr. Kishore will receive the Certificate of Sale from the Court after the sale has been confirmed, i.e., after 20th May 2024. The certificate will mention the property, Mr. Kishore's name as purchaser, and the date when the sale became absolute (20th May 2024). However, according to Section 65 of the CPC, even though the title is perfected upon confirmation and issuance of the certificate, the property shall be deemed to have vested in Mr. Kishore from the date of sale, which was 15th March 2024. Therefore, his ownership is deemed to have started from 15th March 2024.