Basis of Rule 89,90 and 91 CPC whereas right given in Rule 69 Order XXI CPC relates to the stage when property was not sold in execution of decree.

18. This Court in Muslim Commercial Bank through Branch Manager/General Attorney vs. Fashion Pride (Private) Ltd through Chief Executive and 5 others (2016 CLD 124) held that Order XXI CPC is bifurcated into two stages and once the property is sold, the sale can only be set aside on the basis of Rule 89,90 and 91 CPC whereas right given in Rule 69 Order XXI CPC relates to the stage when property was not sold in execution of decree. On this ground also, aforesaid irregularities pointed out in auction proceedings are not sufficient to set aside the sale unless case under Order XXI Rule 90 CPC is made out as discussed above. The relevant observation of this Court in judgment referred supra is reproduced hereunder:- 

“Order XXI is a code into itself. A close analysis of Order XXI reads to an ineluctable conclusion that the matter relating to auction can be bifurcated into two stages. At the conclusion of the first stage, the property shall be deemed to have been “sold in execution of a decree” (see Order XII, R.89, C.P.C). This stage shall be ‘taken to have been crossed once the purchase-money has been paid in full. Once this threshold is crossed, the auction and the sale of property can only be set aside on the basis of rules 89 to 91, C.P.C. and the reversal or setting aside of a decree will not impact its continuance. To complete the analysis, rule 92 of Order XXI, C.P.C. does not envisage any other ground to set aside a sale except those given in rules 89 to 91 of Order XXI, C.P.C. The use of the expression “where immovable property has been sold in execution of a decree” are significant and convey a meaning that the property has in fact been sold and the positon to that extent is irretrievable. In other words, the matter of sale, having passed through the conductor of auction proceedings, has shaped into a right to vest in the auction purchaser to have the sale confirmed in terms of rules 89 to 91 of Order XXI, C.P.C. The right comprised in rule 69 of Order XXI, C.P.C. relates to a stage when the immovable property has not been sold in execution of the decree. It has to be exercised before ‘the lot in knocked down’. This is the stage where the sale may be stopped.  

 Part of Judgment 

 IN THE LAHORE HIGH COURT MULTAN BENCH, MULTAN JUDICIAL DEPARTMENT.

Civil Revision-Civil Revision (Against Interim Order)
375-15

2017 LHC 1880