Does a Court Have Discretion to Reassess Property Market Value for Execution Proceedings After Substantial Delay When All Parties Consent? – Modification of Earlier Valuation Orders under Article 227 in Partition/Execution Cases

The Punjab and Haryana High Court clarified that where significant time has elapsed since an earlier property valuation order in a partition/execution matter, and all co-sharers consent to a higher current market value, the court can modify the earlier order to reflect the updated valuation. This judgment upholds consensual determination of asset value and provides practical guidance for future execution proceedings involving delayed valuations where all parties agree.

 

Summary

Category Data
Case Name CR/3036/2025 of DHARAMPAL SINGH PHOGAT Vs SUNIL SINGH AND OTHERS
CNR PHHC010764502025
Date of Registration 15-05-2025
Decision Date 01-09-2025
Disposal Nature DISPOSED OF
Judgment Author MR. JUSTICE VIKAS BAHL
Court High Court of Punjab and Haryana
Precedent Value Binding on lower courts under territorial jurisdiction
Overrules / Affirms Modifies the impugned order of Civil Judge (JD), Rohtak, dated 09.05.2025
Type of Law Civil Procedure, Partition/Execution, Valuation of Immovable Property
Questions of Law
  • Whether the court can reassess property market value for partition/execution after a delay, based on consent of parties.
  • Whether earlier valuation orders can be modified in such cases.
Ratio Decidendi

Where significant delay occurs after a property valuation order in partition/execution due to pending litigation, and all parties consent to adopting the updated market price, it is permissible for the court to modify the original assessment and direct parties accordingly.

The value determined by consensus at the time of execution reflects fairness to the co-sharers and avoids irreparable loss due to outdated valuations. The petitioner’s share will be recalculated on the current agreed price, and on payment, petitioner relinquishes all rights in the property.

Facts as Summarised by the Court

Earlier, property was valued at Rs. 40,000 per square meter and building cost at Rs. 14,00,000 by Civil Judge in 2019. Due to pending revision by respondents, order was not acted on. After 5+ years, the petitioner sought updated valuation in execution. Impugned order rejected this request. On revision, all parties agreed to new market price and to settlement of petitioner’s share accordingly.

Citations None specified in the judgment

Practical Impact

Category Impact
Binding On All subordinate courts within Punjab and Haryana
Persuasive For Other High Courts for similar partition/execution/postponed sale cases where parties consent
Overrules Modifies the Civil Judge (JD), Rohtak’s order dated 09.05.2025 refusing revaluation
Follows Established practises on consent orders and discretion in execution matters (as per facts in the judgment)

What’s New / What Lawyers Should Note

  • The court allows reassessment of property value in partition/execution if all co-sharers consent, especially after material delay.
  • Earlier valuation orders can be modified upon consent of parties to reflect current market realities.
  • Lawyers should seek and record consent of all parties when pursuing such modifications to avoid protracted litigation and to prevent loss caused by outdated valuations.
  • This approach avoids irreparable loss to the party seeking to realize their share at prevailing market value post long-pending litigation.

Summary of Legal Reasoning

  • The petitioner pointed out that property was valued in 2019, but due to a pending civil revision, the order was never executed, and market value had appreciated substantially.
  • On petitioner’s application for updated auction/valuation, the trial court dismissed the plea.
  • In revision before the High Court, all parties agreed on the current market value of Rs. 2.5 crores and undertook to settle the petitioner’s share accordingly.
  • The High Court, considering the fairness and consent of the parties, modified the impugned order to fix the new valuation and direct payment.
  • The court observed that such consensual modifications prevent irreparable loss and promote justice when there is substantial delay.

Arguments by the Parties

Petitioner:

  • Highlighted the long delay since the 2019 valuation (Rs. 40,000/sq. meter + Rs. 14 Lakhs for building).
  • Argued that, due to a 5+ year delay owing to a pending revision, property prices had increased and, hence, auction/settlement should be at current value.
  • Sought that the petitioner’s 1/4th share be calculated at the current market price (Rs. 2.5 crores).

Respondents (No. 1 to 3):

  • Agreed to petitioner’s proposal and undertook to pay petitioner his 1/4th share at the agreed current market value within a month.
  • Consent recorded in open court.

Factual Background

The dispute stemmed from a family property partition. In 2019, the Civil Judge (JD), Rohtak assessed the property at Rs. 40,000 per sq. meter and building at Rs. 14,00,000, but this order could not be implemented due to a revision filed by respondents, which was dismissed only in 2024. More than five years after the initial valuation, the petitioner requested that the property be revalued for the purpose of auction or settlement at current prices, which the trial court refused. Upon revision, all co-sharers agreed on the new market value and payment to settle the petitioner’s share.

Statutory Analysis

  • Section 151 CPC (inherent powers of court): Used for recalling earlier orders and enabling justice where procedures do not otherwise suffice.
  • Article 227 Constitution of India: Supervisory jurisdiction to set aside or modify orders of courts below.
  • Reviewed applicability of previous property valuation under Section 114 CPC (review), allowing modification with consent in execution proceedings due to material delay and changed circumstances.

Dissenting / Concurring Opinion Summary

No dissenting or concurring opinions noted in the judgment.

Procedural Innovations

  • The court permitted consensual modification of execution/partition valuations where all co-sharers agreed in light of material passage of time.
  • Revival of the dismissed petition through application under Section 151 CPC, restoring original proceedings.

Alert Indicators

  • ✔ Precedent Followed – Court followed and applied existing principles regarding consent orders and inherent powers for justice in execution/partition cases, with a new emphasis on consensual revaluation in case of delay.

Citations

No SCC, AIR, MANU, or other neutral citations specified in the judgment. No paragraph citations included. Status on reportability not expressly specified.

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