EMBASSY HOTELS PVT.LTD. versus MIS. GAJARAJ & CO. & ORS.

EMBASSY HOTELS PVT.LTD. versus MIS. GAJARAJ & CO. & ORS.

Once the auction sale of mortgaged property is confirmed by competent court and the right of redemption is extinguished, specific performance cannot be decreed; collateral challenge to the sale certificate or judgment cannot be entertained on allegations of fraud without proper pleadings and issues, and must be a direct challenge.

Parties
Appellant: Embassy Hotels Pvt. Ltd.; Respondent: M/s. Gajaraj & Co.; Respondent: Srinivasa Perumal Financing Corporation; Respondent: CS Benjamin, represented by three daughters
Jurisdiction
India
Judgment Date
12 November 2014
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal allowed
Legal Topics
Specific Performance, Redemption of Mortgage, Confirmation of Auction Sale, Collateral Challenge, Fraud Allegation
Property Law Civil Procedure Specific Relief Specific Performance Redemption of Mortgage Confirmation of Auction Sale Collateral Challenge Fraud Allegation

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Parties

Embassy Hotels Pvt. Ltd.

Appellant

M/s. Gajaraj & Co.

Respondent

Srinivasa Perumal Financing Corporation

Respondent

CS Benjamin, represented by three daughters

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether the right of redemption survives after confirmation of court auction sale
  2. 2 Whether specific performance can be granted after auction sale of the property
  3. 3 Whether judgments/orders of competent courts can be ignored in collateral proceedings

Ratio Decidendi

Once the auction sale of mortgaged property is confirmed by competent court and the right of redemption is extinguished, specific performance cannot be decreed; collateral challenge to the sale certificate or judgment cannot be entertained on allegations of fraud without proper pleadings and issues, and must be a direct challenge.

Court Disposition

Appeal allowed

Orders

  • High Court judgment and decree set aside
  • Judgment of Trial Court restored