MUHAMMAD JAWED vs FIRST WOMEN BANK LTD — 2021 CLD 39 SUPREME-COURT

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MUHAMMAD JAWED VS FIRST WOMEN BANK LTD. O. XXI, Rr. 84, 85, 89, 90, 91 & 92---Mortgaged immoveable property---Court auction proceedings---Highest bidder---Vested right---Judgment debtor depositing entire decretal amount, cost of funds and cost of suit in court before acceptance of highest bidder's bid by the court---Question as to whether after having been declared the highest bidder any vested right in the subject property was created in his favour extinguishing the judgment debtor's right of redemption---Held, that nature of a bid made in court auctions involving immoveable property, notwithstanding whether it was the highest or the lowest, was that of an offer which did not by itself give rise to any rights, as the same was always subject to acceptance by the Court after proper application of its judicial mind followed by the deposit of full purchase-money under O. XXI, R. 85, C.P.C.---Bid made at an auction was in the nature of an offer which did not mature into a contract/sale till its acceptance by the court---Sale of property factually took place when the bid was accepted by the court---Court always held the power to reject any or all the bids without assigning any reason which itself reflected that the declaration by the auctioneer as the highest bidder was not a "sale"---Since a bid, being an offer, standing alone did not create any legal relationship, and neither did the deposit by the highest bidder, it logically followed that no rights could be said to arise out of the same---Vested/third party rights accrued in favour of a bidder when the auction sale became complete, i.e. when a bid was accepted by the Court and thereafter the full purchase-money was deposited in terms of O. XXI, R. 85, C.P.C.---However, such vested right again was defeatable and would not take away the right of the mortgagor/ judgment debtor to redeem his/her property if he/she brought his/her case within the parameters of O. XXI, Rr. 89, 90, or R. 91, C.P.C.---If, however, no application under said provisions was made within the time limit prescribed by law or the same was rejected, the Court mandatorily confirmed the qualified sale and made it absolute under O. XXI, R. 92, C.P.C., transferring the title of the property in the name of the successful bidder/purchaser, unless a delayed application to set aside the sale was entertained---Supreme Court observed that once the auction was conducted successfully the auctioneer's report must be taken up in Court for orders at the earliest, if not on the next day, accepting or rejecting the sale; that to prolong the proceedings or to keep the auctioneer report pending for months altogether not only discouraged the public in general to participate in Court sale but affected the sanctity of the proceedings and also caused loss to financial institutions and recovery of public money---Petition for leave to appeal was dismissed and leave was refused.

MUHAMMAD JAWED vs FIRST WOMEN BANK LTD — 2021 CLD 39 SUPREME-COURT

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