Time Barred Objections being filed three years after the Auction --- Supreme Court of Pakistan confirm the Auction Sale of a Mortgaged Property
Islamabad 09-12-2024: The Supreme Court of Pakistan, in a recent judgment, dismissed a Civil Petition filed by Chaudhary Ghulam Hussain and another against M/s Saudi Pak Commercial Bank Limited, Lahore, upholding the Lahore High Court’s decision to confirm the auction sale of a mortgaged property. The case was heard by a bench comprising Mr. Chief Justice Qazi Faez Isa, Mr. Justice Muhammad Ali Mazhar, and Mr. Justice Musarrat Hilali.
The Petitioners had challenged the auction and subsequent confirmation of the sale, citing procedural irregularities and claiming the property was sold below its market value. However, the Supreme Court of Pakistan found no merit in their claims, citing procedural non-compliance and failure to adhere to statutory deadlines.
The Petitioners failed to file objections to the auction within the 30-day limitation period prescribed under Article 166 of the Limitation Act, 1908. Instead, they filed their objections nearly three years after the sale, rendering the petition time-barred.
The Court emphasized that the auction process complied with Order XXI Rules 89 and 90 of the Code of Civil Procedure, 1908, with the purchaser depositing the full sale price of PKR 45 million within the stipulated time.
The Petitioners argued that the property was sold for less than its market value of PKR 100 million. However, the Court noted that they failed to deposit the requisite amount to challenge the sale price, as required by law.
The Petitioners were previously allowed to match the highest bid but did not deposit the required amount, further weakening their case.
The Court found no evidence of fraud or material irregularity in the auction proceedings, rejecting the Petitioners’ claims as unsubstantiated.
The Supreme Court of Pakistan affirmed that the High Court and Executing Court acted within the bounds of the law, with the stay on execution proceedings having been vacated prior to the auction’s confirmation.
The Court observed that procedural laws, particularly those governing auction sales in execution proceedings, are designed to ensure fairness and transparency. It reiterated that objections to such sales must comply with strict procedural requirements, including adherence to statutory timelines and the deposit of requisite amounts.
Dismissing the appeal, the Supreme Court of Pakistan concluded that the petition lacked merit, suffered from procedural deficiencies, and failed to establish any substantial injury or irregularity in the auction process. The interim relief granted earlier was also vacated.
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