K L ELUMALAI Vs. P NATARAJAN

JUDGEMENT

(1.) THIS revision is directed against the order passed in I.A. No. 188 of 1994 filed in O.S. No. 47 of 1991 on the file of the Subordinate Judge, Ranipet, North Arcot District. The 1st respondent is the third party auction purchaser. The 2nd respondent is the plaintiff in the unit. The auction purchaser filed EA. No. 73 of 1994 in I.A. No. 188 of 1994 in O.S. No. 47 of 1991, for a direction to the Indian Bank, SIPCOT branch to pay him the interest accrued for 97 days on the deposit amount, which he is entitled to. In the affidavit filed in support of the petition E.A. No. 73 of 1994, the auction-purchaser submitted that he participated in the auction proceedings conducted by the Advocate-Commissioner appointed by the Court in O.S. No. 47 of 1991. The auction was held on 23-3-1994. The auction purchaser was the successful bidder to purchase the suit property for sum of Rs. 24,00,100/-. The sale was knocked down in his favour and he paid the entire amount of Rs. 24,00,100/- on 23-3-1994. It was deposited by the Advocate-Commissioner in the SIPCOT branch of Indian Bank on the same day. The sale was confirmed after 60 days i.e. on 23-5-1994 which fell during the summer vacation of the court. Therefore, the sale certificate was issued after the re-opening of the Court. After the sale registration proceedings, the court issued auction sale warrant on 30-6-1994 which was served on petitioner on 1-7-1994. The sale amount of Rs. 24,00,100/- which was deposited in the bank, earned interest at the rate of Rs. 645/- per day from 23-3-1993 to 30-6-1994. i.e. from the date of deposit of sale consideration till the date of taking over possession of the property by the auction purchaser. Thus the interest accrued comes to Rs. 62,565/-. The amount was in court deposit till the confirmation of sale and transfer of possession in favour of the auction purchaser. Therefore according, to the auction purchaser he is entitled to the interest amount accrued on the amount which was deposited in the bank. Therefore, the auction purchaser requested the court to direct the bank to pay the accrued interest for the said period to him.

(2.) THE respondents filed their counter. According to them, the property in question was sold in the court auction by the Advocate Commissioner on 23-3-1994 and the game was confirmed on 23-5-1994. THErefore, the auction purchaser on no account can claim any interest accrued on the amount deposited by him. According to the respondent once the sale was knocked down in favour of the auction purchaser, the auction-purchaser has got to deposit the sale amount and after confirmation of the sale the auction purchaser will become the owner of the property from the date of sale itself and he has nothing to do with the sale price deposited from the date of sale and he also cannot claim any interest accrued from the date of sale till the date of confirmation or till possession of the property is handed over to him. Under the law, the owners of the property, viz. the judgment debtors deprived of their right over the property on the date of sale itself. Under Order 21, Rule 93, C.P.C., when the sale is set aside under Order 21, Rule 92, then only the auction-purchaser can get the refund of the sale price with or without interest as the court may direct. Hence, the auction purchaser is not entitled to the interest accrued on the deposit amount, from the date of sale till the date of confirmation or delivery of possession.

(3.) THE fact remains that in O.S. No. 47 of 1991, the property belonging to the defendants was brought to court-auction sale by the Commissioner appointed by the court on 23-3-1994 and the sale was confirmed on 23.5.94. On 1-7-1994, delivery of the property was given to the auction-purchaser. From the date of deposit till the date of handing over possession for a period of 97 days a sum of Rs. 24,00,000/- which was deposited in bank by the Commissioner accrued interest at the rate of Rs. 645/- per day, amounting to Rs. 62,565/-. According to the auction purchaser, he is entitled to the interest accrued for the period of 97 days since he will become the legal owner when the sale was confirmed, made absolute and possessions was handed over to him. It was therefore submitted that from the date of sale till the date of confirmation of sale or till the date of handing over of possession, the property sold was in the possession of the judgment-debtor and they were enjoying the income from the property which is a theatre. Hence it was submitted by the auction-purchaser that he is entitled to the interest accrued for the above said period of 97 days.