When Does Limitation For Application Under Order XXI Rule 95 CPC Start? Supreme Court Refers To Larger Bench, Doubts '96 Precedent

The Supreme Court recently referred a pertinent question of law for reconsideration by a larger bench. The Supreme Court bench comprising Justices Abhay S. Oka and Justice Rajesh Bindal was hearing an appeal against a Kerala High Court judgment which dismissed the revision application by holding that the starting point of limitation for making an application under Rule 95 of Order XXI was the date on which the sale certificate was issued by the Executing Court. The court observed “Though CPC does not permit an application under Rule 95 of Order XXI to be filed before the sale certificate is issued, Article 134 of the Limitation Act proceeds on the footing that cause of action becomes available to the auction purchaser to apply for possession on the basis of the order of confirmation of sale made under sub­rule of Rule 92 of Order XXI of CPC.” The Court further pondered if interpretative approach can be used to address the inconsistencies and anomalies present in this context. It added, “The very fact that Rule 94 of Order XXI incorporates a requirement of issuing a sale certificate shows that the Legislature was of the view that mere order of confirmation of auction may not be sufficient.The certificate is ultimately the evidence of the fact that the auction in favour of the person to whom a certificate is issued, has been confirmed by the Executing Court.” The court was of the opinion that it could reconcile Art 134, Limitation Act and Rule 95 of CPC by considering the issuance of the sale certificate as the starting point for making an application under Rule 95. The court held “Prima facie, it appears to us that the only way of avoiding inconsistency between Rule 95 of Order XXI of CPC and Article 134 of the Limitation Act is to read into Article 134 that the starting point for making an application under Rule 95 of Order XXI of CPC is the date on which a certificate recording confirmation of auction sale is actually issued to the purchaser.