Order 21 Rule 66 of the Indian Code of Civil Procedure, 1908 (CPC) is a crucial provision that governs the procedure for preparing the Proclamation of Sale when property is to be sold by public auction in execution of a decree.
It is a mandatory provision and its object is to give intending purchasers all necessary information to enable them to bid adequately, thereby securing the best possible price for the judgment-debtor’s property.
Key Provisions of Order 21 Rule 66
1. Drawing up the Proclamation (Sub-Rule 1)
When the Court orders property to be sold by public auction (as per Rule 64), it must cause a proclamation of the intended sale to be made in the language of the Court.
2. Notice and Settlement (Sub-Rule 2)
The proclamation is drawn up after notice to both the decree-holder and the judgment-debtor. This notice is essential and gives both parties an opportunity to be heard regarding the terms of the sale. The proclamation must state the following details as fairly and accurately as possible:
- Time and Place of Sale: The date, time, and location where the auction will be held.
- Property Details:
- The property to be sold, or the part of the property sufficient to satisfy the decree (linking back to Rule 64).
- The revenue assessed upon the estate, if applicable.
- Details of any encumbrance (e.g., mortgage, charge) to which the property is liable.
- The amount for the recovery of which the sale is ordered.
- Any other particular which the Court considers material for a purchaser to know to judge the nature and value of the property.
3. Valuation of Property (Provisos)
The rule contains an important proviso regarding the property’s valuation:
- The proclamation shall include the estimates of value, if any, given by either or both of the parties (decree-holder and judgment-debtor).
- The Court is not required to enter its own estimate of the property’s value in the proclamation. However, the Court must apply its mind and consider the estimates provided by the parties.
Purpose and Significance
The primary significance of Order 21 Rule 66 lies in ensuring a fair and transparent sale process:
- Protecting the Judgment-Debtor: By ensuring wide publicity and an accurate description, the rule aims to attract a sufficient number of bidders, preventing the property from being sold for an inadequate price.
- Preventing Material Irregularity: A failure to strictly comply with the mandatory requirements of Rule 66 (especially regarding notice to the judgment-debtor or material particulars) is a common ground for setting aside a sale under Order 21 Rule 90, if the non-compliance has resulted in substantial injury to the judgment-debtor.
- Informing the Purchaser: The detailed particulars provide potential buyers with the necessary information about the title, liability, and nature of the property, allowing them to make an informed bid.
