2013 (10) TMI 1377 - SC - Indian Laws

Debtors granted chance to pay judgment debt with interest to avoid property auction in execution proceedings.

The Supreme Court upheld the High Court of Calcutta's discretionary order, which granted judgment debtors an opportunity to pay the decretal amount with ... - Issues involved:The issues involved in this case are related to the discretionary nature of an order by the High Court of Calcutta, which granted an opportunity to judgment debtors to pay the decretal amount with interest, thereby nullifying the auction of a property in execution proceedings.Details of the Judgment:Issue 1: Ex parte decree and execution proceedingsIn 1965, a money suit was filed for a refund of earnest money, resulting in an ex parte decree against the judgment debtors. Despite opportunities given to deposit the decretal amount, the property was auctioned in 1990, with the petitioners as the highest bidders.Issue 2: Revision petition and setting aside the auction saleThe judgment debtors filed a revision petition, challenging the auction sale and the calculation of the amount due under the decree. The High Court set aside the initial calculations, directing a fresh calculation of the amount payable by the judgment debtors.Issue 3: Discretionary order of the High CourtThe High Court, in its order, directed the judgment debtors to deposit a specific amount within a month to set aside the auction sale. The High Court exercised discretion to grant one more opportunity for payment, considering the prolonged nature of the case and the need for correct calculations.Conclusion:The Supreme Court dismissed the Special Leave Petition, upholding the discretionary nature of the High Court's order and emphasizing the importance of not depriving judgment debtors of their property in such circumstances. The Court found no error in the exercise of discretion by the High Court and did not identify any substantial question of law warranting interference.