Supreme Court of PakistaniMs. KAUSER PERVEEN and anothers vs KASB
This matter arises from a petition filed by individuals claiming to be neither defendants nor mortgagors in a suit filed by the respondent bank, yet whose property was allegedly sold in execution of a decree obtained by the bank. The core legal questions involve whether third-party co-owners can be deprived of their proprietary rights in undivided auctioned property and whether an auction sale is vitiated due to the auction-purchaser's failure to deposit the balance payment within the stipulated fifteen-day period. The Supreme Court granted leave to appeal to consider these aspects, noting that the petitioner deposited a sum to defray auction costs and cover the auction amount. The Court held that leave to appeal should be granted to examine the validity of the auction sale and the protection of third-party proprietary rights, directing the appeals to be fixed for hearing.
- Whether third-party co-owners can be deprived of their proprietary rights in a property sold in execution of a decree when they are neither defendants nor mortgagors?
- Does the failure of an auction-purchaser to pay the balance amount within the stipulated period vitiate the auction sale?
ORDER
' JAWWAD S. KHAWAJA, J.---The petitioners in these two cases are statedly neither defendants in the suit filed by the respondent, KASB Bank nor are they mortgagers to secure facilities obtained by the defendants judgment debtoRs, it is contended that notwithstanding this position the property belonging to the petitioners has been sold in execution of a decree dated 8-2-1999 obtained by the respondent-Bank.
2. Pursuant to the previous order passed by this court, Muhammad Salman-petitioner has deposited a sum of Rs,15,00,000 (fifteen lac) in court to defray the costs of the auction and to cover the amount at which the properly was auctioned. On this basis, it was argued that the petitioners even though they may be co-owners of the undivided property, which has been auctioned cannot be deprived of their proprietary rights therein.
3. In addition to the above, it is contended that the auction sale even otherwise is vitiated because the auction-purchaser had failed to make payment of the balance amount of Rs, 9,56,000 (nine lac fifty six thousands) within the stipulated period of 15 days.
4. Leave to appeal is granted to consider the above aspects of the case. Since a short question is involved, the office is directed to fix the appeals for hearing during the month of September, 2010.