MAGANLAL ETC. versus JAISWAL INDUSTRIES NEEMACH & ORS.

MAGANLAL ETC. versus JAISWAL INDUSTRIES NEEMACH & ORS.

Order 34 Rule 5 CPC applies to sale of mortgaged property under Section 32 of the State Financial Corporations Act, in execution, permitting redemption by the mortgagor unless and until the equity of redemption is extinguished; the appeal against confirmation order prevents sale becoming absolute, keeping redemption...

Source-derived case information.

Parties
Appellant: Maganlal; Respondent: Jaiswal Industries Neemach; Appellant: Ramnarayan and others; Respondent: M.P. State Financial Corporation
Jurisdiction
India
Judgment Date
07 August 1989
Procedural Posture
Civil Appeal / Appeal From High Court Order
Outcome
Appeals allowed; application for redemption (CMP No. 9940 of 1982) allowed.
Legal Topics
Redemption of Mortgage, Sale of Mortgaged Property, State Financial Corporations Act, Application of Order 34 Rule 5 CPC
Civil Procedure Financial Law Redemption of Mortgage Sale of Mortgaged Property State Financial Corporations Act Application of Order 34 Rule 5 CPC

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Parties

Maganlal

Appellant

Jaiswal Industries Neemach

Respondent

Ramnarayan and others

Appellant

M.P. State Financial Corporation

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Order

Legal Issues

  1. 1 Whether Order 34 Rule 5 of the Code of Civil Procedure applies to sales of mortgaged property under Section 32 of the State Financial Corporations Act, 1951.
  2. 2 Whether appeals pending against orders for sale affect the right of redemption under Order 34 Rule 5 CPC.

Ratio Decidendi

Order 34 Rule 5 CPC applies to sale of mortgaged property under Section 32 of the State Financial Corporations Act, in execution, permitting redemption by the mortgagor unless and until the equity of redemption is extinguished; the appeal against confirmation order prevents sale becoming absolute, keeping redemption right alive.

Court Disposition

Appeals allowed; application for redemption (CMP No. 9940 of 1982) allowed.

Orders

  • Order of High Court setting aside auction sale in favour of first purchaser is reversed.
  • Auction sale in favour of second purchaser is set aside.