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        Case ID :

        1999 (10) TMI 748 - SC - Indian Laws

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        Right of redemption survives until appeal on sale validity is finally decided, keeping mortgagor's remedy alive. An application under Order 34 Rule 5 CPC remains maintainable for redemption until the mortgage sale attains finality in law. Where an appeal against an ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                            Right of redemption survives until appeal on sale validity is finally decided, keeping mortgagor's remedy alive.

                            An application under Order 34 Rule 5 CPC remains maintainable for redemption until the mortgage sale attains finality in law. Where an appeal against an order refusing to set aside the sale is pending, the sale is not conclusively final merely because the executing court has confirmed it; the appeal continues the proceedings relating to the sale. The mortgagor may therefore deposit the mortgage amount and invoke the last opportunity to redeem before that appeal is finally disposed of. On these facts, the mortgagee's challenge failed and the deposit operated to discharge the mortgage.




                            Issues: Whether an application by the mortgagor under Order 34 Rule 5 of the Code of Civil Procedure, 1908 was maintainable after confirmation of sale but during the pendency of an appeal arising from proceedings under Order 21 Rule 90 of the Code of Civil Procedure, 1908, and whether the sale could be treated as final before disposal of that appeal.

                            Analysis: Order 34 Rule 5 confers a last opportunity on the mortgagor to redeem the property by depositing the mortgage amount at any time before confirmation of sale. The expression "before the confirmation of sale" has to be read with the scheme of Order 21 Rules 89, 90, 91 and 92. Where an application to set aside the sale is pending in appeal, the sale does not attain irrevocable finality merely because the executing court has confirmed it. The appeal is a continuation of the proceedings relating to the sale, and until that appeal is disposed of, the situation remains open for the mortgagor to invoke Order 34 Rule 5 and deposit the amount required for redemption. The Court also noted that, in the present case, the earlier proceedings had effectively reopened the matter, and the later acceptance of the mortgage amount and return of documents could not be ignored merely because of conflicting orders passed below.

                            Conclusion: The application under Order 34 Rule 5 was maintainable, and the mortgagor was entitled to redeem the mortgage during the pendency of the appeal against the order refusing to set aside the sale.

                            Final Conclusion: The mortgagee's challenge failed, and the mortgagor's deposit operated to discharge the mortgage, with the consequential reliefs left undisturbed.

                            Ratio Decidendi: A mortgage sale does not become conclusively final, for purposes of redemption under Order 34 Rule 5, until the appeal against the order refusing to set aside the sale is finally disposed of.


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                            ActsIncome Tax
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