SRI R RAGHUversusSRI G M KRISHNA & ANR.
- Citation
- 2025 INSC 1040
- Decided
- 25 August 2025
- Disposal
- Dismissed
- Bench
- VIKRAM NATH
Holding
The Supreme Court upheld the High Court's order confirming the auction sale, directing the appellant to pay the additional Rs.25 lakh per acre and to undergo a fresh survey, thereby dismissing both appeals.
Summary
The Karnataka State Financial Corporation (KSFC) recovered a debt from Hoysala Thermo Farmers Pvt. Ltd. and, after default, auctioned agricultural land (Sy. No.67) belonging to the managing director, G.M. Krishna. The appellant, R. Raghu, purchased the land at the auction and later obtained a sale certificate as trustee of a trust, leading to disputes over his eligibility to buy agricultural land and the correct measurement of the property. The High Court upheld the auction but directed the appellant to pay an additional Rs.25 lakh per acre to the respondent and ordered a fresh survey to fix the boundaries of the 5 acres 20 guntas purchased. Both parties appealed to the Supreme Court, which examined the conduct of the parties, the applicability of the Karnataka Land Reforms Act, and the limitation bars. The Court concurred with the High Court, finding the additional payment justified and the survey necessary, and dismissed both civil appeals and the contempt petition.
Issues considered
- The validity of the High Court's direction for the appellant to pay an additional Rs.25 lakh per acre as sale consideration.
- The propriety of ordering a fresh survey and rectification of boundaries for the auctioned land.
- Whether the appellant, acting as a trustee, was barred from acquiring agricultural land under the Karnataka Land Reforms Act, 1961.
- The effect of the repeal of Sections 79A, 79B and 79C of the Karnataka Land Reforms Act on the appellant's claim.
- The applicability of limitation provisions to the respondent's objections to the auction sale.
Legislation cited
- Code of Civil Procedure, 1908s. Order XXI Rule 54, s. Order XXI Rule 90, s. Section 47, s. Section 5
- Karnataka Land Reforms Act, 1961s. 79A, s. 79B, s. 79C
- Limitation Acts. Section 5
- State Financial Corporation Act, 1951s. 31, s. 32(8)
Headnote
Issue for Consideration The appellant has preferred Civil Appeal No.8544 of 2024 aggrieved by the two directions given by the High Court in the impugned order relating to additional payment of Rs.25 lakhs per acre to the respondent as additional sale price and secondly, the direction to the of the auction property measuring 5 acres 20 guntas in Sy.No.67 and to fix its boundaries. Headnotes† State Financial Corporation Act, 1951 – Karnataka Land Reforms Act, 1961 – Code of Civil Procedure, 1908 – The respondent was the Managing Director of a company that had
Subjects
Judgment
[2025] 8 S.C.R. 2086 : 2025 INSC 1040
Sri R Raghu
v.
Sri G M Krishna & Anr.
(Civil Appeal No. 8544 of 2024)
25 August 2025
[Vikram Nath* and Prasanna B. Varale, JJ.]
Issue for Consideration
The appellant has preferred Civil Appeal No.8544 of 2024 aggrieved
by the two directions given by the High Court in the impugned
order relating to additional payment of Rs.25 lakhs per acre to the
respondent as additional sale price and secondly, the direction to
the District Court to conduct the survey of the auction property
measuring 5 acres 20 guntas in Sy.No.67 and to fix its boundaries.
Headnotes†
State Financial Corporation Act, 1951 – Karnataka Land
Reforms Act, 1961 – Code of Civil Procedure, 1908 – The
respondent was the Managing Director of a company that had
borrowed money from respondent no.2 KFSC – Due to defaults
in repayment, KSFC initiated recovery proceedings and was
granted a decree against the Company – Subsequently, KSFC
filed Execution Petition – As part of this process, agricultural
land measuring 5.5 acres in Sy. No.67 of Agara Village,
belonging to the respondent, was put to auction – The sale
was finalised – However, VVMP, a Trust, filed an application for
the issuance of a sale certificate in the execution petition and
application was sworn by the appellant – Sale certificate was
issued in the appellant’s favour as a Trustee of VVMP – It led
to various rounds of litigation with main contention that the
appellant had participated in the auction as a Trustee rather
than an individual agriculturist – In the impugned judgment,
the High Court has upheld the auction sale of Sy. No.67 but
directed the appellant to pay an additional Rs.25,00,000/- per
acre to respondent – The District Court was also directed to
once again survey the Sy. No.67, rectifying its boundaries,
if necessary, while maintaining status quo until then –
Correctness:
* Author
[2025] 8 S.C.R. 2087
Sri R Raghu v. Sri G M Krishna & Anr.
Held: 1. The High Court has carefully considered the long-drawn
litigation, involving several rounds inter se the parties, as well
as the various contentions raised and the conduct of the parties
throughout – The Single Judge has rendered a just and equitable
judgment by taking into account both the mitigating and aggravating
aspects of their conduct – This Court finds that the Single Judge
has dealt with each and every argument methodically and in the
true spirit of law and justice. [Para 7]
2. The fact remains that the appellant, auction purchaser had
purchased Sy.No.67 comprising of three parts with total area of
5 acres and 20 guntas (5-1/2 acres) – Once the area had been
specified of the three parts being (a) 1 acre 24 guntas (b) 36 guntas
and (c) 3 acres, totalling 5 acres and 20 guntas (5-1/2 acres), the
appellant would not be entitled to hold possession of any more
area than what was purchased in the auction and as mentioned in
the sale certificate – Further, the issue relating to the identification
and measurement is concerned, there is no justification to interfere
with the direction of the High Court to get the survey carried out
for specific measurements of the purchased property – Insofar as
the direction for payment of Rs.25 lakhs per acre as additional
sale consideration to the respondent is concerned, this Court does
not wish to interfere with the same, considering the conduct of the
appellant, whose dual role casts doubt on the entire proceedings
[Paras 9-11]
List of Acts
State Financial Corporation Act, 1951; Karnataka Land Reforms
Act, 1961; Code of Civil Procedure, 1908.
List of Keywords
Borrowed money; Defaults in payments; Recovery proceedings;
Execution petition; Auction sale; Sale certificate; Participation
in auction as trustee; Measurement of land; Rectification of
boundaries; Additional sale consideration.
Case Arising From
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 8544 of 2024
From the Judgment and Order dated 17.08.2023 of the High Court
of Karnataka at Bengaluru in CRP No. 539 of 2015
2088 [2025] 8 S.C.R.
Supreme Court Reports
With
Civil Appeal No. 8545 of 2024 and Contempt Petition (Civil) No.
657 of 2024 in Civil Appeal No. 8544 of 2024
Appearances for Parties
Advs. for the Appellant:
Gopal Sankaranarayan, Sonakshi Malhan, Siddharth Bhatnagar,
Nikhil M Sakhardande, Sr. Advs., Sajal Jain, Ms. Aditi Gupta,
Ms. Trisha C, Ms. Sonakshi Malhan, Ashish Venugopal, Nipun
Katyal, Ms. Shubhra Swami, Nadeem Afroz, Nishchay Johri,
Dhananjay Kumar, Aditya Sidhra, Meghraj Singh, Shashank
Shekhar.
Advs. for the Respondents:
Gopal Sankaranarayan, Siddharth Bhatnagar, Nikhil M Sakhardande,
Ms. Kiran Suri, Sr. Advs., Sajal Jain, Ms. Aditi Gupta, Ms. Trisha C,
Ms. Sonakshi Malhan, Ashish Venugopal, Nipun Katyal, Nadeem
Afroz, Ms. Shubhra Swami, Nishchay Johri, Dhananjay Kumar,
Aditya Sidhra, Meghraj Singh, Shashank Shekhar, S.J. Amith,
Ms. Vidushi Garg, Dr. (Mrs.) Vipin Gupta.
Judgment / Order of the Supreme Court
Judgment
Vikram Nath, J.
1. The present appeals arise from the impugned order dated 17.08.2023,
passed by the High Court of Karnataka in C.R.P. No. 539/2015. The
petitioner before the High Court was R. Raghu, while the respondents
were G.M. Krishna and Karnataka State Financial Corporation1.
Before this Court, appeals have been filed by both R. Raghu and
G.M. Krishna, along with a contempt petition filed by G.M. Krishna. R.
Raghu has filed Civil Appeal No. 8544 of 2024 whereas G.M. Krishna
has filed Civil Appeal No.8545 of 2024. The contempt petition has
been heard alongside the appeals. For convenience, the parties will
be referred to based on their positions in Civil Appeal No. 8544 of
2024 i.e. R. Raghu as appellant and G.M. Krishna as respondent.
1 KSFC
[2025] 8 S.C.R. 2089
Sri R Raghu v. Sri G M Krishna & Anr.
2. The facts giving rise to the dispute are that the respondent was the
Managing Director of Hoysala Thermo Farmers Pvt. Ltd.2 that had
borrowed money from respondent no.2 KFSC, with the respondent
acting as a guarantor. Due to defaults in repayment, KSFC initiated
recovery proceedings before the Principal District Judge, Rural District,
Bangalore and was granted a decree for Rs. 2,61,28,017.57paise
against the Company in Misc. No. 52/1996 vide judgment and decree
dated 15.11.1999.
2.1 Subsequently, KSFC filed Execution Petition No. 33/2000
before the Principal District Judge, Rural District, Bangalore,
to enforce the decree in Misc. No. 52/1996. As part of this
process, agricultural land measuring 5.5 acres in Sy. No. 67 of
Agara Village, belonging to the respondent, was put to auction.
On 10.04.2000, KSFC filed an application under Order XXI
Rule 54 of the Code of Civil Procedure, 19083 to restrain the
respondent from encumbering the property and also to attach
it. The Executing Court allowed the application and directed
the attachment of the land. However, when the Court bailiff and
a KSFC official attempted to identify the property, they were
unsuccessful, leading to the return of the attachment warrant.
2.2 KSFC then filed an application on 01.07.2000 under Section
32(8) of the State Financial Corporation Act, 19514, to appoint
a Cadastral Surveyor to demarcate the land. This application
remained pending before the Executing Court.
2.3 Meanwhile, the Executing Court ordered the sale of Sy. No. 67.
A sale on the spot was conducted, where the appellant placed
the highest bid of Rs. 15,50,000/-. The Court, however, deemed
this amount to be inadequate given the land’s potential and
conducted a Court auction on 19.04.2003. The appellant was
the sole bidder and increased his bid by Rs. 3,00,000/-, bringing
the final price to Rs. 18,50,000/- which was accepted. The
appellant subsequently deposited this amount.
2.4 Ved Vignam Maha Vidya Peeth (VVMP), a Trust, filed an
application for the issuance of a sale certificate in the execution
2 the Company
3 CPC
4 The 1951 Act
2090 [2025] 8 S.C.R.
Supreme Court Reports
petition. The application was sworn by the appellant, as a
Trustee, claiming that the Trust had purchased the land. The
auction was confirmed on 27.08.2005, and a sale certificate
was issued in the appellant’s favour as a Trustee of VVMP on
09.09.2005.
1st Set of litigation:
2.5 The respondent then filed an application being I.A. No. IV under
Order XXI Rule 90 CPC, read with Section 47 thereof, seeking
to set aside the sale. He contended that the appellant had
participated in the auction as a Trustee rather than an individual
agriculturist, which violated the Karnataka Land Reforms Act,
19615. The Executing Court dismissed the said application on
16.01.2006 on the ground of delay. The operative part of the
aforesaid order as contained in paragraph 18 is reproduced
hereunder:
“Thus, as already discussed supra, as I.A. No.IV is
barred by limitation, the value of the property was
made as it stood as on the date of auction, namely on
19.4.2003, as the auction purchaser is an individual
and not a trust, as the sale deed is also issued in
favour of the individual, as I.A. No.IV falls within the
provision of under order 90 rule 3 of CPC and the
explanation there under, as the amount is deposited
within time; as the property to an extent of 1 acre 24
guntas never vested with the Government and even
if vested, the forum
or seeking its remedy to the Govermnent is not before
this executing court and as the auction purchaser
has made out his right to the farm house situate in
the land purchased by him, I.A. No. IV and VIII are
liable to be dismissed, while I.A. No. VII is entitled
to be allowed.”
2.6 The above decision was later upheld by the High Court in MFA
No. 7981/2006 vide order dated 18.04.2007. The High Court’s
findings as held in paragraph 21 is as follows:
5 The 1961 Act.
[2025] 8 S.C.R. 2091
Sri R Raghu v. Sri G M Krishna & Anr.
“The KSFC and the JDR have filed Writ Petitions
challenging the validity of the Court auction in favour
of the auction purchaser. The JDR had also filed an
application under Order XXI 1 Rule 90 of CPC to set
aside the sale. The said application is filed almost two
years three months after the Court sale. Obviously,
the application is not filed within the limitation period
of sixty days. The JDR explains that he was out of
India and hence, he could not file the application in
time. The provisions of Section 5 of the Limitation
Act does not apply to the proceedings under Order
XXI. Therefore, whether or not the JDR had sufficient
cause, the application filed for setting aside the sale
is barred by time and cannot be entertained.”
2.7 Respondent’s SLP (C) Nos. 15832-15834/2007 before this
Court was dismissed on 14.09.2007 in limine.
2nd Set of litigation:
2.8 The respondent who owned adjacent survey numbers (70/1st
Block, 71/2A, and 179 in Agara Village), commissioned a
survey, on the ground that the boundaries mentioned in the
sale certificate issued by the Executing Court comprised of
not only Sy.No.67 that was sold in execution but also other
survey numbers namely Sy.No.71/2A, 179 that were not sold
in the execution.
2.9 Respondent executed a gift deed dated 28.01.2006 in favour
of his wife Smt. Arathi Krishna transferring the title of this
aforesaid adjacent land. The Tahsildar thereafter issued a
notice for carrying out a survey of the property on 13.02.2006.
2.10 The appellant challenged this notice in W.P. No. 2173/2006.
Additionally, on 22.05.2006, he filed O.S. No. 374/2005 (later
renumbered as O.S. No. 1414/2006) seeking a declaration that
the Gift Deed in favour of respondent’s wife was null and void.
2.11 The High Court, vide order dated 09.04.2007, quashed the
survey notice, holding that the appellant had legally acquired
the land through a Court auction. However, the survey of other
survey numbers remained open. The operative part of the
order as contained in paragraph 20 is reproduced hereunder:
2092 [2025] 8 S.C.R.
Supreme Court Reports
“Considering the facts and circumstances of the
case and the decisions referred to by the counsel
for the petitioner, which aptly applicable to the facts
and circumstances of the case and therefore the writ
petition is liable to be allowed and the Annexure G
notice issued by the Taluka surveyor is liable to be
quashed.”
2.12 Respondent’s Writ Appeals (Nos. 1025/2007 and 3763/2007)
challenging the above order were dismissed by the Division
Bench, vide order dated 02.11.2012, which held that the survey
notice of all properties is illegal as the adjacent property has
been gifted by respondent to his wife and as he has no claim
over auctioned property i.e. Sy.No.67. The relevant portion of
the order as contained in paragraph 7 is reproduced hereunder:
“From the aforesaid material on record it is clear
that the land bearing Sy.No.67, 70/1, 70/2 and 179
are all surveyed. An extent of 5 acres 20 guntas in
Sy.No.67 is purchased by the petitioner in Court
auction with specific boundaries and he has been
put in possession. In so far as other survey numbers
are concerned, the material on record-shows that 5th
respondent has executed gift deed dated 28.01.2006
in favour of Arati Krishna, bequeathing the land in
Sy.No.70, 71/2 and 179 which was duly registered
on 14.02.2006. Therefore, he has lost title to the said
property. Therefore, prima facie, the 5th respondent
has no title to-the property. Assuming that he has
retained some property, his request should be to
bifurcate the property which are purchased or property
which he has alienated. That is not the request made
in the application. He has requested for survey of all
the properties, as if no survey is conducted so far.
Such a request for the survey is not permissible.
Therefore the learned Single Judge was justified in
setting aside the said survey. If the 5th respondent
accepts the purchase of the property by the petitioner,
accepts the gift in favour of Arati Krishna, he must
produce the certified copies of the said documents
and then state, out of the property which properly he
[2025] 8 S.C.R. 2093
Sri R Raghu v. Sri G M Krishna & Anr.
has retained and then only he can seek for survey
for the purpose of bifurcating the property and giving
separate survey number to the property which he has
retained or to the property which he has alienated.
If such a request is made, then the authorities will
conduct survey in accordance with law. The learned
Counsel appearing for the appellant submits that in
so far as Sy.No.67 measuring 5 acres 20 guntas
is concerned, which is the subject matter of Court
auction in favour of petitioner is concerned, they
have no claim whatsoever. Their claim is in respect
of other survey numbers.”
3rd Set of litigation:
2.13 Nevertheless, the Tahsildar issued another survey notice on
01.10.2014 at the behest of respondent’s wife, prompting the
appellant to challenge it in W.P. No. 47527/2014. The High
Court, vide interim order dated 09.10.2014, held that the
survey could proceed for Sy. No. 71/2A but should not affect
Sy. No. 67. The appellant further challenged this in Writ Appeal
No. 2700/2014, where the Division Bench reaffirmed that the
appellant’s ownership and possession over Sy. No. 67 should
not be disturbed.
4th Set of litigation:
2.14 Despite this, a subsequent survey revealed that the boundaries
in the sale certificate encompassed Sy. No. 71/2A in addition to
Sy. No. 67. The Tahsildar, on 10.11.2014, ordered the appellant
to return 4 acres and 37 gunthas of land to respondent and
his wife within three days.
2.15 The appellant challenged these developments by filing W.P.
No. 54468/2014 against respondent and his wife, contesting
the survey report, and further filed W.P. No. 52691/2014 against
the Tahsildar’s order. The High Court, vide common order
dated 03.02.2015, allowed the writ petitions and set aside
impugned survey report and order passed by the Tehsildar.
The respondents were given liberty to approach the Civil Court.
The relevant portion of the aforesaid order as contained in
paragraph 35 is reproduced hereunder:
2094 [2025] 8 S.C.R.
Supreme Court Reports
“In the result and for the foregoing reasons, these writ
petitions are allowed. The impugned survey report and
the orders passed by Tahsildar are set aside. Liberty
is reserved to the respondents to seek redressal of
their grievance by approaching the Civil Court and
in accordance with law.”
2.16 Respondent and his wife filed W.A. Nos. 1094/2015 and
1096/2015 which were dismissed by the Division Bench vide
judgment dated 25.02.2021. It would be pertinent to mention
that the State of Karnataka also filed an appeal bearing Writ
Appeal No.2175 of 2015 assailing the order of the Single Judge,
which was also dismissed by the same order dated 25.02.2021.
The Division Bench examined the facts relating to previous
litigation inter se parties and other related parties in great detail
and passed strictures against the private parties as also the
officials of the revenue department. Relevant paragraphs of
the aforesaid judgment are reproduced hereunder: -
“25. The dispute involved in the writ petitions as well
as in these appeals is between two individuals. The
statutory authority has passed an order under the
provisions of the Act, 1964. We are rather surprised
to notice that the State Government has filed an
appeal to justify the order passed by the Tahsildar.
The contention that the order of the Tahsildar dated
10.11.2014 is well within the jurisdiction, cannot be
accepted. In any case, the dispute is between two
individuals. The factum of filing of an application to the
said authorities fortifies a conclusion that the revenue
authorities have acted with due haste and the instant
case is a case of colorable exercise of statutory
power and therefore, the learned Single Judge has
rightly quashed the order which has been passed by
the Tahsildar. The present case reflects a very sorry
state of affairs in which appellant No.2 after losing
from Supreme Court has again re-agitated the matter.
26. In the present case, the Corporation had initiated
proceedings for recovery of the amount under
Section 31 of the State Financial Corporation Act.
The auction was held on 19.4.2003, sale certificate
[2025] 8 S.C.R. 2095
Sri R Raghu v. Sri G M Krishna & Anr.
was issued on 9.9.2005, it was affirmed by the
Executing Court on 27.8.2005 and appellant No.2
was unsuccessful up to the Hon’ble Supreme Court.
The Trustee was placed in possession of the property
in question, survey was carried out at the behest
of the Trustee and after losing the battle up to the
Hon’ble Supreme Court, mischievously a new route
was adopted by appellant No.2 by executing the gift
deed on 28.1.2006 in favour of his wife to keep the
lis alive. The gift deed was registered on 14.2.2006
and now it is the wife who has stepped into the shoes
of appellant No.2. Such type of practice has to be
deprecated. A person who has bought the property
through an open auction in the year 2003 is still being
subjected to litigation for no rhyme or reason and all
kinds of legal jugglery have taken place in the present
case to ensure that the Trustee is not able to make
use of the property which he has purchased by way
of open auction. The appellant No.2 in the garb of
gift-deed cannot be permitted to set at naught the
rights acquired by the Trustee in an auction, validity
of which has been upheld by the Hon’ble Supreme
Court.
27. For the aforesaid reasons, this Court is of the
considered opinion that the writ appeals are devoid
of merits and do not have substance and deserves to
be dismissed. It is needless to state that the Trustee
shall be entitled to proceed with the use of the land
in question in accordance with law.
Writ appeals are dismissed. No orders as to costs.
Pending applications, if any, stand dismissed.”
5th Set of litigation:
2.17 On 05.12.2014, respondent filed Misc. Petition No. 157/2014 in
Execution Case No. 33/2000 under Section 47 CPC, seeking a
declaration that the auction sale and sale certificate were null
and void, on the ground that the appellant had misrepresented
himself as an agriculturist while purchasing the property for a
Trust, which was legally prohibited from holding agricultural
2096 [2025] 8 S.C.R.
Supreme Court Reports
land. It was contended that, that the actual purchase was not
made by the appellant but by the Trust and fraud has been
played on the Court by propping up the appellant to purchase
at the Court auction. The Trust was said to be prohibited from
holding property in view of Sections 79A and 79C of the 1961
Act. Further, it was contended that the records in the execution
petition disclosed that the property to be auctioned was never
identified and therefore, sale of such unidentified property was
illegal. The appellant filed his statement of objections wherein
he stated that the property was purchased by him as a Trustee.
2.18 The Trial Court, in its judgment dated 28.09.2015, ruled
in respondent’s favour, setting aside the auction sale and
declaring it null and void. The Court found that the appellant
had acted fraudulently by adopting inconsistent stances
regarding his role in the purchase. The Trial Court also noted
that Sections 79A, 79B and 79C of the 1961 Act bar a Trust
from acquiring agricultural land. The operative part of the
judgement as contained in paragraph 41 is as follows:
“Therefore, considering all. these facts and
circumstances of the case, I am of the clear opinion
that the petitioner has made out valid grounds to
set aside the sale declared on 19/04/2003 and sale
certificate issued on 09/09/2005 in Ex.No.33/2000.
It is necessary to conduct fresh auction proceedings
KSFC has to recover the due amount against the
Judgment Debtor. With the above discussion, I answer
the Point No. 1 held in the affirmative and proceed to
pass the following: The petition filed by the petitioner
under Section 47 of CPC is hereby allowed.”
2.19 The appellant challenged the aforesaid order dated 28.09.2015
before the High Court by way of C.R.P. No. 539/2015.
2.20 Notably, on 30.12.2020, Sections 79A, 79B, and 79C of
the 1961 Act were retrospectively repealed with effect from
01.03.1974.
2.21 In the impugned judgment, the High Court partially allowed the
appellant’s petition, affirming the finding of fraud against the
appellant but modifying the Trial Court’s ruling to the extent of
the setting aside of the auction sale dated 19.04.2003 and the
[2025] 8 S.C.R. 2097
Sri R Raghu v. Sri G M Krishna & Anr.
consequent confirmation of sale and the sale certificate dated
09.09.2005 in respect of Sy.No.67. The High Court has upheld
the auction sale of Sy. No. 67 but directed the appellant to pay
an additional Rs. 25,00,000/- (Rupees Twenty five lakhs only)
per acre to respondent. The District Court was also directed
to once again survey the Sy. No. 67, rectifying its boundaries,
if necessary, while maintaining status quo until then. The
operative part of the impugned judgment is as follows:
“The Petition is allowed in part. The impugned order
dated 28.09.2015 passed by the I Additional District
Judge, Bengaluru Rural District, Bengaluru in Misc.
No.l57 /2014 in so far as it relates to setting aside the
auction sale dated 19.04.2003 and the consequent
confirmation of sale and the sale certificate dated
09.09.2005 in respect of Sy.No.67 of Agara village,
Kengeri Hobli, Bengaluru South Taluk is set aside.
However, the Petitioner shall pay a further sum of
Rs.25,00,000-00 (Rupees Twenty Five Lakh only)
per acre to the respondent No.1 as additional sale
price within three months from the date of receipt of
a copy of this Order. The District Court is directed to
conduct a survey of the auctioned property measuring
5 acres 20 guntas in Sy.No.67 of Agara village,
Kengeri Hobli, Bengaluru South Taluk and fix its
boundaries and thereupon take steps to rectify the
boundaries mentioned in the sale certificate dated
09.09.2025, if necessary. Until then, the parties shall
maintain status quo.”
2.22 Aggrieved by this decision, both parties have approached
this Court.
3. The appellant has preferred Civil Appeal No.8544 of 2024 aggrieved
by the two directions given by the High Court in the impugned
order relating to additional payment of Rs.25 lakhs per acre to the
respondent as additional sale price and secondly, the direction to the
District Court to conduct the survey of the auction property measuring
5 acres 20 guntas in Sy.No.67 and to fix its boundaries.
4. The respondent and his wife Arti Krishna have preferred Civil Appeal
No.8545 of 2004 aggrieved by the first part of the impugned order
2098 [2025] 8 S.C.R.
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of the High Court whereby, the auction sale dated 19.04.2003, its
confirmation and the sale certificate dated 09.09.2005 in respect of
Sy. No.67 has been confirmed in favour of the appellant.
5. Contempt Petition No.657 of 2024 was filed by respondent alleging
that the appellant was proceeding to raise constructions despite
interim injunction granted by this Court.
6. We have heard the learned Senior Counsels/Counsels appearing
for the parties at length and have also examined the record with
due care.
7. At the outset, we record our appreciation that the learned Single Judge
of the High Court has carefully considered the long-drawn litigation,
involving several rounds inter se the parties, as well as the various
contentions raised and the conduct of the parties throughout. The
learned Single Judge has rendered a just and equitable judgment
by taking into account both the mitigating and aggravating aspects
of their conduct. We find that the learned Single Judge has dealt
with each and every argument methodically and in the true spirit of
law and justice.
8. In view of the above, we do not consider it necessary to deal with
the individual submissions in detail. The High Court has already
examined these very submissions at length, as noted hereinbefore,
and we find ourselves in agreement with its findings. Our reasons for
concurring with the same are recorded in the paragraphs that follow.
9. The fact remains that the appellant, auction purchaser had purchased
Sy.No.67 comprising of three parts with total area of 5 acres and
20 guntas (5-1/2 acres). Once the area had been specified of the
three parts being (a) 1 acre 24 guntas (b) 36 guntas and (c) 3 acres,
totalling 5 acres and 20 guntas (5-1/2 acres), the appellant would
not be entitled to hold possession of any more area than what was
purchased in the auction and as mentioned in the sale certificate.
10. Further, the issue relating to the identification and measurement
had been raised in the very beginning and there are reports of the
Bailiff, who had gone to deliver the possession stating that there
was difficulty in identifying the same. In the garb of boundaries being
mentioned, the appellant auction purchaser cannot claim any more
area than what was put up for auction and thereafter purchased by
[2025] 8 S.C.R. 2099
Sri R Raghu v. Sri G M Krishna & Anr.
him. Therefore, we do not find any justification to interfere with the
direction of the High Court to get the survey carried out for specific
measurements of the purchased property.
11. Insofar as the direction for payment of Rs.25 lakhs per acre as
additional sale consideration to the respondent is concerned, we do
not wish to interfere with the same, considering the conduct of the
appellant, whose dual role casts doubt on the entire proceedings.
However, since the matter had earlier travelled up to this Court, we
are not inclined to disturb the auction or the sale certificate. At the
same time, we are of the view that the additional amount directed
by the High Court is both well-deserved and justified.
12. The respondent’s claim in his appeal for setting aside the auction
proceedings and the sale certificate has been rightly rejected by
the High Court in view of his conduct. Firstly, he failed to take any
steps to challenge the sale for more than two years. In any case,
the bar contained in Sections 79A, 79B and 79C of the 1961 Act
stood repealed in 2020 with retrospective effect from 01.03.1974,
and therefore the objection relating to misrepresentation by the
appellant would lose its significance. Further, the application filed
under Order 21 Rule 90 read with Rule 47 CPC, wherein all such
objections had been raised as far back as 2002, was rejected up to
this Court. Hence, commencing a second round of objections on the
pretext that the appellant had been shifting his stand as to who is the
purchaser which is an issue already raised in the earlier objections,
could not have been permitted and is clearly barred in law.
13. For the aforesaid reasons, we agree with the direction of the High
Court to confirm the auction sale proceedings.
14. For all the reasons recorded above, both the civil appeals lack merit
and are dismissed. Consequently, the contempt proceedings are
also closed.
Result of the case: Appeals dismissed.
†
Headnotes prepared by: Ankit Gyan
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