Purchase of Property & Legal Implications : Supreme Court Unfurls Crucial Legal Aspects

Purchase of Property and Legal Implications : Supreme Court Unfurls Crucial Legal Aspects

In a recent decision, Hon'ble Supreme Court has explained some important aspects of purchase of property as well as on execution of decrees.

In Bhikchand v. Shamabai Dhanaraj Gugale [2024] GCtR 1350 (SC) it was reiterated that "if at a court auction sale in execution of a decree, the properties are purchased by a bona fide purchaser who is a stranger to the court proceedings, the sale in his favour is protected and he cannot be asked to restitute the property to the judgment debtor if the decree is set aside. The policy which prompts the extension of protection to the strangers who purchase at court auctions is based on a need to ensure that proper price is fetched at a court auction. The special protection afforded to a stranger who purchases at an execution sale is not extended to an assignee of the decree-holder auction purchaser. Persons who purchase at a court auction who are strangers to the decree are afforded protection by the court because they are not in any way connected with the decree. The reasons which prompt the courts to protect strangers who purchase at court auction sales also do not apply to assignees or purchasers from a decree-holder auction purchaser."

It was also explained that "the execution of a decree by sale of the entire immovable property of the judgment debtor is not to penalise him but the same is provided to grant relief to the decree holder and to confer him the fruits of litigation."

You can download this judgment full text free of cost from www.sci.gov.in.

Written by 

Vishal

Delhi

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