Description

1. Overview of the Section

• Section 66 specifically deals with the situation where a purchaser buys property at an execution sale (sale to recover debt or fulfill a court decree), and it is later claimed that the purchase was made on behalf of the plaintiff (i.e., the person whose property was sold).
• The section clarifies that even if the purchaser is acting on behalf of the plaintiff or the judgment debtor, it is not a valid ground for initiating a suit against the purchaser to challenge the title obtained through the sale.
• In other words, once the sale is concluded and the purchaser obtains title to the property, this cannot be contested solely on the argument that the purchase was made by the purchaser on behalf of the plaintiff or debtor.

2. The Core Legal Principle

• The main principle behind this section is to protect the validity of court-ordered sales and ensure that purchasers who have bought property in good faith in an execution sale are not unduly harassed or challenged based on a claim that they bought the property on behalf of the plaintiff or debtor.
• A person who has legally purchased property through proper court procedures cannot later face a suit based merely on the assumption or claim that the purchase was made in the interest of the plaintiff or debtor.

3. Preventing Fraudulent or Malicious Claims

• This provision acts as a safeguard against fraudulent or malicious claims that may arise after a property sale, where the person who loses the property may try to file a suit against the purchaser, claiming the sale was invalid because the purchase was made on behalf of the original owner (the plaintiff or debtor).
• Section 66 ensures that such claims will not hold, maintaining legal certainty for the purchaser and finality of the court sale.

4. Legal Protection for the Purchaser

• By making it clear that suits against purchasers on the grounds of purchasing on behalf of the plaintiff cannot proceed, the section gives the purchaser legal protection and assures them that their purchase will not be contested based on such claims.
• It promotes transparency in the execution process, making it clear that the purchaser’s rights are not easily subject to challenge after a legal purchase in execution proceedings.

5. Potential for Fraud or Collusion

• While this section offers protection for the purchaser, it does not completely eliminate the possibility of fraud. If the purchaser colludes with the plaintiff or debtor to fraudulently buy the property back (i.e., by purchasing the property in the name of a third party to deceive the court), then the sale could still be challenged under other legal provisions.
• This section ensures that valid purchases are protected but does not shield fraudulent behavior.

Punishment

Punishment for Fraud: If the purchase was conducted fraudulently (such as buying the property on behalf of the plaintiff in a way that violates court orders or misrepresents the sale), punishment could follow under the Indian Penal Code (IPC).

• This could involve charges of fraud under Section 420 of IPC (cheating) or Section 406 (criminal breach of trust), or any other related fraudulent act provisions.
• If the plaintiff or a third party challenges the sale based on fraudulent grounds and proves the claim in court, the sale can be declared void, and criminal proceedings can be initiated.

Legal Consequences: In the absence of fraud or malicious intent, Section 66 ensures that the purchaser's title remains intact, and no action can be taken against them merely because they purchased the property on behalf of the plaintiff or debtor.