Redemption rights in mortgage sale execution remain available while sale confirmation is still under challenge.

Section 32(8) of the State Financial Corporations Act was treated as importing, as far as practicable, the Code of Civil Procedure execution process for sale of mortgaged property, including the mortgagor's right under Order 34 Rule 5 to redeem the mortgage unless its application was impracticable. Pending appeals against confirmation of sale meant the auction had not attained irrevocable finality, so the redemption right under the proviso to Section 60 of the Transfer of Property Act remained alive. The scheme contained no inconsistency excluding that right, and the execution application was maintainable.

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Issues: Whether the mortgagor could invoke Order 34 Rule 5 of the Code of Civil Procedure, 1908 to redeem the mortgage during execution of an order of sale passed under Sections 31 and 32 of the State Financial Corporations Act, 1951, notwithstanding confirmation of sale and pending appeals.

Analysis: The relevant scheme under Sections 31 and 32 of the State Financial Corporations Act, 1951 was treated as a special execution procedure, but Section 32(8) required the sale to be carried out, as far as practicable, in the manner provided in the Code of Civil Procedure, 1908 for execution of a decree. The Court held that this incorporated the ordinary execution incidents applicable to a decree for sale of mortgaged property, including the right under Order 34 Rule 5, unless its application was impracticable. The pendency of appeals against the order confirming or setting aside the sale meant that the sale had not attained irrevocable finality, and the mortgagor's right of redemption had not been extinguished under the proviso to Section 60 of the Transfer of Property Act, 1882. The statutory scheme contained no provision inconsistent with that right, and the legal fiction in Section 32(8) could validly extend to the execution process for applying the relevant Code provisions.

Conclusion: The application under Order 34 Rule 5 was maintainable and entitled the mortgagor to redeem the mortgage. The appeals were allowed and the subsequent auction sale was set aside.

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