Civil Procedure Code, 1908 | Execution of decrees
Order XXI Rule 87 CPC - Notification on Re-Sale
Order 21 Rule 87 requires a fresh proclamation before immovable property is re-sold because the auction purchaser failed to pay the purchase money within the prescribed period.
Text of Order XXI Rule 87
87. Notification on re-sale. Every re-sale of immovable property, in default of payment of the purchase-money within the period allowed for such payment, shall be made after the issue of fresh proclamation in the manner and for the period hereinbefore prescribed for the sale.
Meaning and scope of Rule 87
Order XXI of the Code of Civil Procedure, 1908 (CPC) regulates execution of civil decrees. Rule 87 specifically addresses a re-sale of immovable property when the earlier auction purchaser defaults in paying the required purchase money. Immovable property generally includes land and buildings.
The rule requires a fresh proclamation, ensuring that prospective bidders receive notice of the new sale. The court must follow the applicable proclamation and timing provisions governing execution sales, subject to relevant court rules and amendments.
When is a fresh proclamation necessary?
- A court auction of immovable property has taken place.
- The successful purchaser has not paid the balance of the purchase price within the period required under Order XXI Rule 85.
- Consequences under Rule 86 arise, including re-sale of the property.
- Before conducting that re-sale, a fresh proclamation must be issued under Rule 87.
Related CPC rules explained
Order XXI Rule 66 - Proclamation of sale
Rule 66 governs the drawing up of a sale proclamation, including the time and place of sale, identification of the property, encumbrances, the amount sought to be recovered and other material particulars. Applicable notice requirements must be followed.
Order XXI Rule 67 - Publication of proclamation
Rule 67 provides for the manner of making and publishing a proclamation, generally by reference to Rule 54(2). The court may also direct publication in the Official Gazette or a local newspaper.
Order XXI Rule 68 - Time before sale
For immovable property, Rule 68 generally requires at least 15 days from affixing the proclamation at the courthouse before the sale, unless the judgment-debtor consents in writing to an earlier sale. Applicable local amendments should be checked.
Order XXI Rules 84 and 85 - Purchaser's payments
Rule 84 ordinarily requires an immediate deposit of 25% of the purchase money after the purchaser is declared successful, subject to its stated exception. Rule 85 requires the full purchase money to be paid into court before the court closes on the 15th day from the sale, subject to the permitted set-off under Rule 72.
Order XXI Rule 86 - Default and re-sale
Where the purchaser defaults under Rule 85, Rule 86 provides for re-sale; the court may, after defraying sale expenses, forfeit the deposit to the Government. The defaulting purchaser loses the claim described in that rule.
Order XXI Rule 71 - Loss on re-sale
Rule 71 addresses any deficiency in the re-sale price attributable to the purchaser's default and the expenses of re-sale, which may be recoverable from the defaulting purchaser in accordance with that rule.
Practical implications
The decree-holder and judgment-debtor should check that a new proclamation is properly prepared and published before the re-sale. Bidders should review the new proclamation rather than assume the earlier auction terms remain unchanged. A challenge to an execution sale depends on the specific procedural defect, the available remedy, and the statutory conditions, including those under Order XXI Rule 90 where applicable.
Official legal source
Read the Code of Civil Procedure, 1908 on India Code (official PDF), including Order XXI Rules 66 to 71 and 84 to 87. State-specific High Court amendments and rules may affect procedure in a particular jurisdiction.
Frequently asked questions
Can immovable property be re-sold without a fresh proclamation?
Where re-sale results from default in payment of the purchase money, Rule 87 expressly requires a fresh proclamation in the prescribed manner and for the prescribed period.
Does Rule 87 itself prescribe a separate number of days?
No. It refers to the period prescribed earlier for the sale. Rule 68 generally provides the relevant 15-day period for immovable property, subject to its exception and applicable amendments.
What happens to the defaulting purchaser's deposit?
Under Rule 86, the court may forfeit the deposit after meeting sale expenses. Forfeiture is discretionary under the wording of that rule.
This article is for general legal information. Court rules, state amendments and case-specific orders should be verified before taking action.