BEAVER ESTATES PVT LTD Vs. PHILIP THOMAS

JUDGEMENT

(1.) These two appeals are filed by the judgment-debtors in Arbitration O.P. Nos. 2 of 1995 and 38 of 1994 respectively. The Awards were passed by the City Civil Judge of Udupi in Karnataka State and they were transferred for execution to the Subordinate Judge's Court, Ernakulam. The appellants are the same in both the appeals. There were four arbitration original petitions against the appellants in which awards were passed and in two of them (Arb. O.P. Nos. 26 of 1993 and 12 of 1994) full satisfaction was recorded and attachments were lifted. The validity of the sale in execution proceedings in the remaining two cases, is the question to be considered in these two appeals.

(2.) This appeal arises out of the order in E.A. No. 185 of 2001 in E.P. No. 271 of 1997 in Arb. O.P. No. 2 of 1995 on the file of the Principal Sub-Court, Ernakulam. The execution petition was filed for realising an amount of Rs. 37,17.274/- by sale of seven items of properties. Though these items were shown separately, it is not in dispute that they formed portions of a land called "Silver Sand Island" near Vyttila in Ernakulam City. Out of the seven items sold on 2-12-2000, sales of items 1, 3, 4 and 7 were already set aside at the instance of the auction purchasers in petitions filed under Order 21, Rule 90 of the Code of Civil Procedure on the ground of fraud and irregularity by orders dated 22-2-2003 and 2-9-2003. Sale of item No. 5 was also set aside since the auction purchaser was the decree-holder and on payment of the entire decree amount and interest, the decree-holder agreed for setting aside the sale. Therefore the appeal concerns only with regard to the sale of items 2 and 6 in the E.P. Schedule. All the items were sold on 2-12-2000. In E.A. No. 185 of 2001 filed under Order 21, Rule 90, the sales were sought to be set aside on the following grounds.

(3.) The judgment-debtors have suffered substantial injuries by reason of the sale.