VEMULA SIVIAH NAIDU vs STATE OF A.P. & ANR.

The Supreme Court held that under Section 5 of the A.P. Revenue Recovery Act, 1894, a 'defaulter' is defined as a person liable to discharge a debt. The Court found that the second respondent, Radhakrishaniah, was indeed a defaulter as he had undertaken to discharge the liabilities of the joint family properties, including the debt contracted by K. Sankaraiah. Consequently, the sale of the property to the appellant was upheld, reversing the High Court's decision that had set aside the auction sale.