Code of Civil Procedure, 1908 | Order XXI

Order 21 Rule 74 CPC - Sale of Agricultural Produce

Order XXI Rule 74 of the Code of Civil Procedure, 1908 (CPC) regulates where attached agricultural produce is sold in execution proceedings and when a sale must be postponed because a fair price is not offered.

Key point: Growing crops are ordinarily sold on or near the land; harvested produce is ordinarily sold at or near its storage or threshing location. A limited right to postponement applies when the conditions in sub-rule (2) are met.

Order XXI Rule 74 CPC - Statutory provision

(1) Where the property to be sold is agricultural produce, the sale shall be held,-

(a) if such produce is a growing crop, on or near the land on which such crop has grown, or

(b) if such produce has been cut or gathered, at or near the threshing floor or place for treading out grain or the like or fodder-stack on or in which it is deposited:

Provided that the Court may direct the sale to be held at the nearest place of public resort, if it is of opinion that the produce is thereby likely to sell to greater advantage.

(2) Where, on the produce being put up for sale,-

(a) a fair price, in the estimation of the person holding the sale, is not offered for it, and

(b) the owner of the produce or a person authorized to act in his behalf applies to have the sale postponed till the next day or, if a market is held at the place of sale, the next market-day,

the sale shall be postponed accordingly and shall be then completed, whatever price may be offered for the produce.

Meaning and purpose of Rule 74

Rule 74 deals specifically with the auction of agricultural produce in the execution of a civil court decree. It recognizes that growing and harvested crops are often best sold close to where they are situated. The provision also seeks to avoid an immediate sale at an unfair price while limiting delay to the next day or the next market-day, as applicable.

Where must agricultural produce be sold?

Growing crops - Rule 74(1)(a)

If the produce is still growing, the auction is ordinarily held on or near the land where it has grown. This allows prospective buyers to assess the crop in its actual condition.

Cut or gathered crops - Rule 74(1)(b)

Where produce has been harvested, the sale is ordinarily conducted at or near the threshing floor, grain-treading place or fodder-stack where it is deposited.

Alternative public location - Proviso to Rule 74(1)

The executing court may direct that the sale take place at the nearest place of public resort if it considers that this would obtain a better price. This is a court-directed exception to the usual location requirements.

When is postponement compulsory under Rule 74(2)?

Both statutory conditions must be fulfilled:

The person conducting the sale considers that a fair price has not been offered.
The owner of the produce, or an authorized representative, requests postponement until the next day or, where a market is held at the place of sale, the next market-day.

When both conditions exist, the sale shall be postponed as provided in the rule. At the postponed sale, the sale is to be completed at the price offered, even if that price remains lower than expected. Rule 74(2) does not create an unlimited right to repeated adjournments.

Practical example

Suppose harvested grain is being auctioned near its threshing floor. The officer conducting the sale considers the bids too low. If the owner requests postponement in accordance with Rule 74(2), the officer must postpone the sale to the prescribed next day or market-day. The sale is then completed at the price offered.

Rule 64 concerns sale of attached property; Rule 66 addresses sale proclamations; Rule 68 prescribes the ordinary interval before sale; and Rule 69 provides for adjournment or stoppage of execution sales generally. These provisions should be read with Rule 74, subject to applicable amendments and court rules.

Frequently asked questions

Can agricultural produce be auctioned away from the farm?

Yes. The court may direct sale at the nearest place of public resort if it believes the produce is likely to sell to greater advantage there.

Does a low bid automatically postpone the auction?

No. Under Rule 74(2), the sale officer must consider the price unfair and the owner or authorized representative must request the prescribed postponement.

Can the owner demand repeated postponements?

Rule 74(2) provides for postponement to the next day or applicable next market-day, after which the sale is completed at the price offered. Other court powers and applicable procedural rules may require separate consideration.

Official legal source

Read the Code of Civil Procedure, 1908 on India Code and consult the applicable First Schedule, state amendments and High Court rules for the court concerned.

Legal information only. The application of these rules depends on the facts, local amendments and applicable court directions.