Punjab National Bank vs Sahujain Charitable Society And Ors

3. The suit property consisted of two buildings and the land on which it stood. The plaintiff held 66.94% of the shares therein. In terms of fraction, this came to 83 out of 124 shares. Defendant No. 1 held 8 out of 124. Defendants 2 to 7 each held 4 out of 124. Defendant No. 8 held 8 out of 124 and defendant No. 9 held 1 out of 124 shares. The total extent was said to be 64333 sq. feet. Out of this, the plaintiff - bank was in possession of an extent of 14930 sq. feet. On 22.6.1977, a preliminary decree for partition was passed. It was declared that the plaintiff was entitled to 83 out of 124 shares and that the same be allotted to the plaintiff. It also directed that other sharers be allotted their respective shares. The preliminary decree became final. It is necessary only to notice that respondent No. 1 before us was not a party to the preliminary decree and no share was allotted to it. But, it appears that subsequently, respondent No. 1 purchased the shares of defendants 1 to 4 and 9 and respondent No. 5 acquired 8 out of 124 shares taking an assignment from defendant No. 8. Thus, both respondents 1 and 5 before us who were impleaded in the final decree proceedings, were assignees from sharers, subsequent to the preliminary decree.

6. Now, the plaintiff purported to file an appeal against the order dated 1.3.2000 by which the court directed the sale of the property pursuant to the earlier direction dated 21.7.1987 but on the basis of a fresh valuation. In that appeal, a Division Bench noticed that the parties had agreed to settle the matter if a proper valuation was made and directed yet another valuation to be made. This time, the valuer valued the property at Rs. 1,04,96,000/-, less by about Rs. 2 lakhs from the previous valuation as per the report dated 12.9.2000. The Division Bench thereafter disposed of the appeal by directing that the valuation submitted be accepted and the other sharers execute conveyances in favour of the plaintiff Bank on the plaintiff depositing the amount less its share and making it liable for meeting all Municipal dues. The price payable was later corrected to show the purchase price as Rs. 1,06,42,000/-, higher of the two subsequent valuations. Thus, the property was directed to be taken by the plaintiff for the price of Rs.1,06,42,000/-. The amount was deposited. The sale was affirmed on 24.6.2005 and the Commission for partition directed to handover possession of the vacant portion on the third floor to the plaintiff, within a week.

7. At this stage, an application was made to recall the earlier orders and to stay the implementation of the orders dated 4.5.2005 and 24.6.2005. On 6.7.2005, respondent No.1 herein, the assignee subsequent to the preliminary decree, offered to purchase the property for Rs.1,25,00,000/- as against Rs.1,06,42,000/- for which it was sold to the plaintiff. The court directed the respondent to deposit Rs.1,25,00,000/- without prejudice. The amount was deposited. On 26.7.2005, respondent No.1 herein offered to purchase the property for Rs.2,00,00,000/-. Counsel for the plaintiff sought time to get instructions from his client. Respondent No.3 who claimed that it had no notice of the earlier order submitted that it could not offer anything more than Rs.1,25,00,000/-. The plaintiff was not willing to make any higher offer but raised the objection that the sale in its favour had been confirmed, it has deposited the price and nothing more remained to be done. The Division Bench of the High Court proceeded to set at naught everything that had happened earlier including its own confirmation of the sale in favour of the plaintiff and asserting that it could not keep its eyes shut to the enhanced price that may be fetched for the property, proceeded to go back upon its earlier orders and directed the property to be sold to respondent No. 1 at Rs. 2 crores and granted time to respondent No. 1 to make the deposit. It is this order of the Division Bench that is challenged by the plaintiff.

16. In the result, the appeal is allowed. The decision of the High Court is set aside and the plaintiff Bank is declared as the purchaser of the property for Rs. 2,01,00,000/-. The plaintiff Bank is permitted to set off its share of the value and is directed to deposit the value of the other sharers on the basis of the purchase price now fixed by us. Whatever the amounts the plaintiff Bank had deposited already in the High Court, will be given credit to and the plaintiff Bank will be liable to deposit only the balance amount, if any, remaining towards the shares of the purchase price of the other sharers. The amount would be made up in four months. The direction to the other sharers to execute sale deeds in favour of the plaintiff contained in the order dated 24.6.2005 will stand affirmed. A final decree on the above terms will be drawn up by the High Court in accordance with the relevant rules. In the circumstances, the parties are directed to bear their respective costs.