Sales in execution of decrees are conducted by an officer of the court and are made by public auction or through a broker at the market rate in the case of a negotiable instrument or share in a corporation.
The sale proclamation is drawn up in the language of the court after notice to the decree-holder and the judgment-debtor and states the time and place of sale. The sale proclamation also specifies the property to be sold, or where a part of the property would be sufficient to satisfy the decree such part, the revenue assessed on it, any in cumbrance to which it is liable, the amount for the recovery of which the sale is ordered and every other thing material for a purchaser to enable him to judge the nature and value of the property. (O. 21, R. 66).
Every proclamation is made and published by beat of drum or other customary mode near the property. A copy of the proclamation is affixed on a conspicuous part of the property and of the court house and in the Collector’s office, where the property is revenue paying land.
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ADVERTISEMENTS:
Unless the property ordered to be sold is subject to speedy and natural decay or the expense of keeping it in custody is likely to exceed its value, no sale shall, without the written consent of the judgment-debtor, take place before 15 days in the case of immovable property and 7 days in the case of movable property from the date of the proclamation. (O. 21, R. 68).
The sale may be adjourned by the court, but where the sale is adjourned for a longer period than 30 days a fresh proclamation shall be made, unless the judgment-debtor consents to waive it.
The sale shall be stopped if before the lot is knocked down, the debt and costs (including the cost of the sale) are tendered to the officer conducting the sale or paid into the court which ordered the sale. (O. 21. R. 69).
ADVERTISEMENTS:
The decree-holder shall not, without the express permission of the court, bid for or purchase the property. No officer or person in any way concerned in execution of sale shall, either directly or indirectly, bid for or acquire any interest in the property sold.
Where a decree-holder purchases the property at the auction sale with the permission of the court, the court may, unless there are other decree-holders entitled to ratable distribution of the assets under Section 73, set off the purchase money and the amount due on the decree against one another and shall enter up satisfaction of the decree in whole or in part.
If he purchases without such permission, the court may set aside the sale on the application of the judgment-debtor or any other person whose interests are affected by sale, and the decree-holder shall pay cost and expenses and the deficiency of price on resale. (O. 21, R. 72). It may be noted here that the order setting aside or refusing to set aside the sale is an appealable order.
Notwithstanding anything contained in R. 72 a mortgagee of immovable property shall not bid for or purchase property sold in execution of a decree on the mortgage unless the court grants him leave to bid for or purchase the property [O. 21, R. 72-A (1)].
ADVERTISEMENTS:
If leave to bid is granted to such mortgagee, then the court shall fix a reserve price as regards the mortgagee, and unless the court otherwise directs the reserve price shall be—
(a) Not less than the amount then due for principal, interest and costs in respect of the mortgage if the property is sold in one lot; and
(b) In the case of any property sold in lots, not less than such sum as shall appear to the court to be properly attributable to each lot in relation to the amount then due for principal, interest and costs on the mortgage. [O. 21, R. 72-A (2)].