A property is sold in execution of a decree and is purchased by a bonafide stranger. The decree is subsequently set aside in appeal. An application is made thereafter by the judgment-debtor for setting aside the sale. What orders should be passed on such application?
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Question: A property is sold in execution of a decree and is purchased by a bonafide stranger. The decree is subsequently set aside in appeal. An application is made thereafter by the judgment-debtor for setting aside the sale. What orders should be passed on such application?Find the answer to the mains question only on Legal Bites. [A property is sold in execution of a decree and is purchased by a bonafide stranger. The decree is subsequently set aside in appeal. An application is...
Question: A property is sold in execution of a decree and is purchased by a bonafide stranger. The decree is subsequently set aside in appeal. An application is made thereafter by the judgment-debtor for setting aside the sale. What orders should be passed on such application?
Find the answer to the mains question only on Legal Bites. [A property is sold in execution of a decree and is purchased by a bonafide stranger. The decree is subsequently set aside in appeal. An application is made thereafter by the judgment-debtor for setting aside the sale. What orders should be passed on such application?]
Answer
In the given scenario, the property was sold in execution of a decree, and a bona fide stranger (a person who was not a party to the original suit) purchased the property at the execution sale. Subsequently, the decree is set aside in appeal, indicating that the original decree was not valid.
Now, the judgment-debtor (the person against whom the decree was passed) makes an application to set aside the sale. In such a situation, the court should pass an order to set aside the sale and restore the property to the judgment-debtor.
The reason for this is that when the decree is set aside in appeal, it is considered as if the decree never existed. As a result, the execution sale that took place based on the now-invalidated decree is also rendered invalid. The bona fide stranger who purchased the property at the execution sale may have acquired the property in good faith, but the sale itself was based on a decree that is no longer valid. Therefore, the court will order the sale to be set aside, and the property will be returned to the judgment-debtor.
This principle is based on the concept of restitution, which aims to restore parties to their original positions when a decree is set aside or reversed. Since the decree was set aside in appeal, it is deemed to be non-existent from the beginning, and any actions taken based on that decree, including the execution sale, are nullified.
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