The Karnataka High Court disposed of a writ petition filed under Articles 226 and 227 of the Constitution of India, praying to quash the impugned order dated 12.12.2018 passed on the file of Hon'ble Addl. Civil Judge & CJM, rejecting the application filed by the petitioner. The Court observed that restricting the number of persons participating in the auction may result in the property being sold for a price that may be less than the market value.
Brief Facts:
Final decree proceedings are initiated pursuant to a preliminary decree for partition. The extent of the property is a residential house built on a site measuring 60x40 feet. Since the parties could not agree to the division of the property amicably, the Court had no other option but to order an auction sale of the property. Two applications were filed by the petitioner before the final decree court. One was to recall the order dated 27.11.2008 ordering the auction of the suit schedule property and another was with a prayer to direct the respondents to the final decree proceedings to sell their respective share to the petitioner for Rs.45,00,000/-. Both applications were rejected by the trial court. Hence, challenging the above orders of rejection of applications, the petitioner is before this court.
Contentions of the Petitioners:
The Learned Counsel for the Petitioners submitted that the property being a family property, the order dated 27.11.2018 ordering public auction does not augur well for the family members. The auction should be restricted only to the family members and the general public should not be allowed to participate in the auction. Further, she contended that Rs.45,00,000/- quoted by the petitioner in his application is the correct market value of the share of the respondents and the respondents should be directed to sell their share to the petitioner for Rs.45,00,000/- so that the property remains in the hands of a family member.
Contentions of the Respondents:
The Learned Counsel for the Respondents submitted that unless the public are allowed to participate in the auction the correct market value will not be fetched in respect of the shares held by the respondents. The petitioner cannot compel the other sharers to sell the property for the price quoted by the petitioner.
The Court noted that since the property which is in dispute is measuring 60x40 feet with a residential house, it cannot be divided into seven parts, allotting each sharer 1/7th share in the said immovable property.
The Court observed that in such a scenario, the only option that was left for the trial Court was to auction the property as the parties to the proceedings did not agree on a price to purchase the other members’ share among themselves. Thus, the trial court was justified in ordering the auction of the property, so that the sale proceeds could be shared by the family members proportionate to their share.
On the contention of the plaintiff that only the family members should be allowed to participate in the auction, the Court said that it cannot be done because restricting the number of persons participating in the auction may result in the property being sold for a price which may be less than the market value. Participation of more persons may result in property fetching real market value which in turn will be beneficial to all the sharers. Even in public auctions, the sharers can be permitted to participate in the bid.
The decision of the Court:
The Karnataka High Court, disposing of the petition, held that the value of the property sold in the auction shall have to be distributed among the sharers in accordance with the decree.
Case Title: Sri. Krishnakumar v Sri. D. Chikkaiah & Ors.
Coram: Hon’ble Justice Anant Ramanath Hegde
Case no.: WRIT PETITION NO. 428 OF 2019 (GM-RES)
Advocate for the Petitioner: Ms. V. Veena Bhat
Advocate for the Respondents: Mr. B.P. Honakhande
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