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Supreme Court of India 2023-02-10 allowed

Gas Point Petroleum India Limited vs Rajendra Marothi & Ors

Bench: 2 — M. R. Shah, C. T. Ravikumar

In Brief

Gas Point Petroleum purchased property on 31 August 1999 from National Ginni Enterprises. In 1998, a dispute arose over an LPG gas agreement. The trial court passed a decree on 30 September 1999 for specific performance or payment in the alternative, but not involving the property. When the decree remained unexecuted, the Executing Court auctioned Gas Point's property in October 2011. Gas Point objected, arguing prior ownership and non-compliance with deposit rules. The High Court dismissed the objection. The Supreme Court allowed the appeal, holding that mandatory Rules 84-85 of CPC were violated (25% deposit not made immediately, full amount deposited after 15 days), vitiating the sale. Also, the property was never the subject of the decree and not covered by the interim injunction, so it could not be validly auctioned. The order was restored, allowing recovery of deposited amounts.

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Civil Procedure Execution of Decrees Property Sale Mandatory Provisions Court Orders

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