IN THE HIGH COURT OF SINDH AT KARACHI

 

SUIT NO.1114/2011

 

Plaintiff             :      Imtiaz Ali Effendi,

                                through M/s. Ziaul-Haq Makhdoom

                                & Azhar Mehmood, advocates.

 

Defendants       :      Ali Muhammad Effendi and others,

through M/s. Khawaja Saiful-Islam and Irfan Hassan advocates for defendants.

M/s. Sofia Saeed Shah and Sohail Abbas, advocates for auction purchaser.

 

 

Date of hearing                :       01.12.2015. 

 

Date of announcement    :       26.02.2016.

 

……………

 

SALAHUDDIN PANHWAR, J: Through an application U/s 151 CPC (CMA No.15083/15), the defendants have prayed for retaining the subject property by paying the share amount of the plaintiff.

2.                     Heard learned counsel for respective parties and perused the record.

3.                      To understand the back-ground of the instant application, it would be proper to have a glance over the history of matter. The record shows that plaintiff Imtiaz Ali Effendi filed instant suit for Administration, Partition , injunction Mesne profit against his own sisters. The preliminary decree was passed.

4.                      A reference to earlier orders, passed in the matter shall make position clear hence are referred hereunder:-

                         Order dated 9.7.2013.

           I have heard….. The plaintiff and defendants’ counsel shall cooperate and assist the Nazir in coming up to a just and proper valuation. After this exercise with regard to the shop in question both the properties be put to auction and the proceeds thereof be distributed amongst the legal heirs of the deceased since the parties at present have not shown their desire to buyout shares of other legal heirs in terms of valuation of the Bungalow at least. However before the properties are auctioned, first the plaintiff and defendants shall have a right of refusal and / or to buyout shares of others….”

“07.02.2014

            Today in the court the plaintiff has raised his bid from Rs.46,00,000 to Rs.55,00,000/- (Rupees Fifty Five lacs only) and the defendants in response are not ready and willing to purchase the subject shop at the highest bid of Rs.55,00,000/- rather a categorical statement is made on behalf of the defendants that let the plaintiff purchase the subject shop at Rs.55,00,000/-,….”

“07.11.2014.

            The Nazir report is taken on record…. The defendants No.2 and 4 are present in court along with their counsel and informed that they have already deposited title documents of above mentioned shop with the Nazir of this court. They are directed to deposit original title documents of House No.18/1, 21st Street Khayaban-e-Tanzeem, Phase V, D.H.A. Karachi within seven days and the Nazir should complete the process of sale of the above mentioned shop and house in accordance with law without any delay.”

“19.12.2014.

            On the last date of hearing, the plaintiff has matched the offer of Rs.325,00,000/- offered by bidder Amir Ahmed who initially deposited 25% at the time of auction when his highest bid was for Rs.250,00,000/-. Today defendant no.3 present in Court has offered to purchase the property in question and was offered Rs.440,00,000/-. However, in reply the plaintiff has further enhanced his offer upto Rs.450,00,000/-. The defendants have conceded that the property may be sold to the plaintiff and may be directed to deposit their share within 30 days from today.

            In view of the above sale of the property i.e House No.18/1, 21st Street, khayaban-e-Tanzeem, Phase V DHA, Karachi is confirmed and plaintiff’s bid of Rs.4,50,00,000/- is accepted by consent of all concerned subject to deposit of share of other co-sharers within 30 days …..”

 

However, the record further shows that the parties did not settle at above hence on 12.8.2015 it was ordered as:

‘By consent, matter is referred to nazir of this Court and fixed on tomorrow at 11.00 a.m. All the parties including interested bidders are directed to appear before the Nazir and submit their bids alongwith pay order of 25% of their bids. If any auction purchaser has already deposited any pay order, he needs not to deposit fresh one. The parties in suit shall be given opportunity to meet with highest bid given by the auction purchaser.’

 

In consequence to above order, the auction proceedings were held and lastly an order dated 07.10.2015 was passed. The operative part thereof reads as:

            ‘Keeping in view the above position and consent order dated 22.8.2015, the highest offer of Mr. Abdul Majeed in the sum of Rs.435,00,000/- (Rupees Four Crore and Thirty Five lac only) is accepted with direction to him to deposit balance bid amount / offered amount within 15 days.

            Nazir is directed to return pay order of Mr. Tarique Dilawar to him, however, after proper identification and verification.’

 

From above series of the order, it appears that the defendants first stuck with plea of purchase of the subject property by the plaintiff himself but failure resulted in putting the property into auction again.

5.                      It is not a matter of dispute that the property in question is the ancestral house (property) of plaintiff and defendants and even some of the defendants have been residing therein who are unmarried. From very beginning the interest of the plaintiff was confined in receiving his share in the subject matter he (plaintiff), hence, cannot legally object to the offer of the present defendants that they are ready to pay up the share amount of the plaintiff as he (plaintiff) never thought more than that nor is legally entitled to more than his share in property.

6.                      Now, the question remains to be addressed is that of auction purchaser who participated in the auction proceedings and deposited directed advance money. However, it would suffice to say that mere participating in auction proceedings and depositing some part of the highest bid would not be sufficient to succeed because its confirmation by the court is something different. There can be no denial to the legal position that one offering highest bid in auction proceedings earns a right but still the discretion remains with authority to approve or disapprove the same.

7.                      It needs to be kept in view that auction proceedings in the instant matter were / are not within meaning of the Order XXI of the Civil Procedure Code, 1908 but it was a case within meaning of Order XX Rule 13 of the Civil Procedure Code, 1908 where the object was settlement of claims and distribution of share inter se between parties (legally entitled person in property) hence the provisions referred in Order XXI of the Civil Procedure Code, 1908 cannot be pressed hard because in such like proceedings no auction of property can be legally held without wide publicity which , in the instant matter, lacks. The operative part of case of Muhammad Attique v. Jami Limited (2015 SCMR 148) is made hereunder:-

‘5. …. It is, however, discretionary with the Court to execute the decree in accordance with the provisions of the Code, it cannot depart therefrom. Proclamation cannot be an exception to that. The relevant provisions need to be read once again for the sake of clarify which read as under:-

           

65. Mode of making proclamation: ………….

54. Attachment of immovable property.---

6. A careful reading of the above quoted provisions would reveal that the purpose behind their enactment, as for as it can be gathered from the words used therein, was to give wide publicity to the sale of the property so that maximum number of people may turn up to participate in it and give bids that match the price the property deserves.…….. But where it is otherwise, failure to comply with the provisions cannot be brushed aside without due application of mind. The Court has to undo a sale if failure to comply with the provisions causes injustice. Needless to reiterate that these provisions have been enacted to advance and not to impede the cause of justice.

 

9……The argument that the word ‘sale’ means fall of hammer and not its confirmation by the Court, too, is correct, as was held in the cases of ‘Diwan Ghulam Rasul v. Ghulam Qutab-ud-din’ (supra) and Mst. Asma Zafarul Hassan v. Messrs United Bank Ltd. and another’ (supra). ..

 

(Emphasis supplied)

 

If the auction proceedings are taken as one within meaning of Order XXI of the Civil Procedure Code, 1908 then above failure is sufficient for holding the sale proceedings as not sustainable. Further, it is also a matter of record that confirmation of sale in favour of the auction purchaser has not been ordered earlier therefore, return of the deposited amount shall cause no prejudice to him as was done with earlier auction purchaser.

8.                      Since, the defendants intend to keep the property with them which the Order XX Rule 13 of the Civil Procedure Code, 1908 nowhere restricts hence instant application of the defendants is accepted particularly keeping in view :

i)                    property is ancestral property;

ii)                  dispute was in-fact between legal heirs to extent of share distribution only;

iii)                the defendants are women who pleaded to have not been in position to settle in a proper place even after receipt of their individual shares;

iv)                payment of share by defendants to plaintiff shall serve purpose of suit;

 

The defendants are directed to deposit the share amount of the plaintiff within a period of six months failing which the auction proceedings in favour of auction purchaser shall stand restored. The auction purchaser is at liberty to withdraw/collect his amount from Nazir or to wait till said period. The withdrawal of amount however shall be subject to proper identification and verification.

Imran/PA                                                                    J U D G E