Property Attachment Procedure in Execution
Property Attachment Procedure in Execution
What
properties are liable to attachment and sale in execution of decree? State the
exceptions.
ANSWER
The procedure for attachment of different kinds of property has been elucidated
upon in Rules 43 to 54 within Order 21. The mode of attachment of property
largely depends on the type of property. The various procedures for attachment
have been mentioned below:
EXCEPTIONS
Section 60 not only provides the properties which are liable to attachment and sale,
but also mentions the particulars that are not liable to such attachment and sale. It
has been held in Municipal Corn. Of Rangoon v. Ram Behari, that the exemptions
that have been listed in this provision are culminative. This means that if the
judgement-debtor is eligible to do so, he can claim the benefit of more than one
clause. On the recommendation of the Law Commission in its fifty-fourth report,
sub-section I-A was inserted in the provision which provides that the benefit
provided by this section cannot be waived. The list within this provision providing
for the exceptions includes properties such as:
(h) Wages of labourers and domestic servants which are payable either in
money or kind,
(i) Salary to the extent of one thousand rupees and one thirds of a salary in
the execution of a decree of maintenance,
(j) The allowances and pay to the persons allowed so under the Air Force
or Army Act,
(k) All sums or deposits derived from any fund wherein the Provident
Funds Act is applicable and have been declared by the Act to be not liable
for attachment or money payable under life insurance of the judgement
debtor,
(l) Any allowance that forms the part of emoluments of any government
servant or railway company servant or such local authority which shall be
exempt from attachment by notification in the Official Gazette,
(p) If the judgement-debtor is such person liable for the payment of land-
revenue, any movable property which has been exempt under any law that
may be applicable to him.
“Executing court cannot go beyond decree”. Explain. State the various modes of
execution of decree.
ANSWER
[Link]
[Link]
second half of the PDF is good, not the first few pages, for Stay of Execution
[Link]
%20List%20title%20no134%20pdf).pdf - “Executing Court cannot go beyond
decree”
The term execution has not been defined within the Code of Civil Procedure. This
term has been instead interpreted by various courts. In the case of Overseas
Aviation Engineering, Lord Denning interpreted this to mean the process of
enforcement or giving effect to a judgement passed by a Court. Hence, execution is
essentially the enforcement of a decree passed by a court in order to bring into
effect the rights of the parties as decided in a case.
The principles and procedure for execution are enumerated with Sections 36 to 74
and Order 21 of the CPC.
After an application for execution has been filed by a decree holder in the relevant
court, the executing court can enforce execution. This can be done through various
modes which have been stated in Section 51 of the Code. It has been held in
Padrauna Rajkrishna Sugar Works v. Land Reforms Commissioner and Shyam
Singh v. Collector, Hamirpur that this provision provides the decree holder with
the choice to choose the mode of execution for the enforcement of the decree. It
was further held in Anandi Lal v. Ram Sarup that even though a decree holder can
choose the mode of execution, it is subject to the Court’s discretion.
The Courts have time and again laid down that an executing Court cannot expand
its scope to beyond the order to decree which is being executed. This settled
principle was also reiterated by the Apex Court as recently as 2019 in the case of
S. Bhaskaran v. Sebastian.
In Basant Singh v. Tirloki Nath, the Court noted that the principle that an executing
court cannot inquire into the correctness or legality of the decree stems from the
principle that a proceeding to enforce a judgement is collateral to the judgement.
Even if a decree is against the law, it can only be set aside in a revision or an
appeal.
While an executing court cannot alter, very, add or change the terms of the decree,
it has been held in Ramswami v. T.N.V. Kailash Theyar, that it does possess the
power to interpret it. In the instance that the terms enumerated within the decree
are vague or ambiguous, then the executing court shall have the power to delve
into the decree, as well as the pleadings of the case in order to ascertain its precise
meaning.
After an application has been filed by a decree holder, the executing court can
enforce execution. Section 51 of the Code enumerates various modes of execution,
the procedure for which has been enumerated by the rules within Order 21.
1. Delivery of property
This Section empowers the Court to order execution by attachment and sale or sale
without attachment. It has been held in Amulya Chandra v. Pashupati Nath that the
words ‘sale’ and ‘attachment’ within the provision are to be read disjunctively.
Hence, a sale without attachment is not void.
In the instance the decree is for the payment of money then this mode shall only be
ordered in certain instances which are mentioned in the provisio to Section 51.
These provisions are mandatory and must be complied with strictly.
This mode is known as equitable execution and is entirely at the Court’s discretion.
It has been held in Kerr on Receivers that this cannot be claimed as a matter of
right. This is considered an exceptional remedy and before resorting to this
method, the decree holder must show that the usual statutory modes of execution
provide no effective remedy for obtaining relief.
Partition: Section 54
Execution must be effected by the Collector in the instance of a decree of partition
or separate possession in an undivided estate assessed to the payment of revenue to
the Government.
(a) Cross-decrees
Two decrees shall satisfy each other if the amount under them is equal. If
the decrees are unequal, the smaller one shall be satisfied and execution
shall be allowed for the balance.
It has been held in Howrah Insurance Co. where a surety is liable the decree
can be executed against him to the extent of his personal liability.
Decree against corporation: Rule 32
A decree against a firm shall not affect any partner who has not been served
with a summons to appear.
Attachment can be effected either by the executing Court or the one which
passed the decree.
Here, the Court may direct part or whole of such to be paid to the decree-holder.
SHORT NOTES
1. Interpleader Suits- ordinary suits are instituted between a plaintiff and
defendant, these suits function normally and end up with a judgment in the
favor of either side. However, an Interpleader Suit is different from this.
This type of suit is a real dispute between two defendants instead of a
plaintiff and a defendant. The main recognition point of such a suit is that
the plaintiff is not really showing up to take part in the case and he or she
does not hold any subject matter or interest in the suit. The main object of
such a suit is to make a judgment for the defendants’ issue related to any
debt, money or property that is in dispute. The plaintiff in an Interpleader
Suit should only be of an impartial character with no bias for any side or
aspect of the suit. The meaning of Interpleader Suits according to the well
known Halsbury’s Laws of England (Fourth Edition), Vol. 37, Para 264
are- “Where a person is under liability in respect of a debt or in respect of
any money, goods or chattels and he is or expects to be sued for or in respect
of the debt or money or those goods or chattels, by two or more persons
making adverse claims thereto, he may apply to the court for relief by way
of interpleader”. For example- if A has 20,000 in his hands and both B and C
are claiming the money in opposition to each other then A (the plaintiff) can
file for an Interpleader Suit. However if A makes a deal about the money
with either B or C then the complaint will be dismissed and the suit would
be invalid in nature.
As for the legal provisions, Section 88 and Order XXXV of the Code of
Civil Procedure, 1908 deal with Interpleader suits. Firstly, Section 88 states
the relevant guidelines about where an interpleader suit can be filed and few
ingredients of such a suit, which are-
There may be a similar mortgage or amount of money or any type of
property (movable or immovable),
Two or more parties make claims against each other,
The individual who has the hold of the property must not be interested
in the same except for its charges and expenses and should have the
ability to pay or deliver the property to the rightful claimant.
The person who is claiming the property may file an interpleader suit
against all the opposing parties or claimants in order to decide who is
entitled to be the rightful receiver of the property and in order to
obtain indemnification for themselves.
In this case- Asan vs. Saroda- the Calcutta High Court held that a suit cannot be
called an Interpleader if the defendants don't complain to each other and if the
plaintiff does not admit to the title of one defendant in the case or if the plaintiff is
willingly ready to pay or deliver to one defendant.
The various rules mentioned in Order XXXV about Interpleader Suits are-
Rule 1: this rule talks about the Plaint that will be filed for an interpleader
suit (Mangal Bhikaji Nagpase vs. State of Maharashtra).
Rule 2: this rule talks about the payment of the thing (money, mortgage,
property etc.) that is being claimed through the suit (Syed Shamshul Haque
vs. Sitaram Singh and Ors.).
Rule 3: this rule talks about the process that would be followed if any
defendant sues the plaintiff during an interpleader suit.
Rule 4: this rule talks about the process to be followed at the first hearing of
the suit.
Rule 5: this rule talks about the individuals who cannot file an interpleader
suit. (Jugal Kishore and Anr. vs. Bhagwan Das, Neeraj Sharma vs. The
District Sangpur Khadi Gram).
Rule 6: this rule talks about the way the court would deal with the plaintiff’s
costs.
Introduction
The Code of Civil Procedure 1908 (CPC) allows for more than one mode of execution of
decrees. As a general rule, therefore, a decree-holder has an option to choose a particular mode
for executing and enforcing a decree passed by a competent court in his favour.
Section 51(b) of the Code of Civil Procedure 1908, states that the court, on an application by the
decree holder may order the execution of a decree by attachment and sale or the sale without
attachment of any property,
The Civil Procedure Code of 1908, has laid down the procedure for the same in Sections 60 to
64 along with Rules 41 to 57 of Order XXI.
Attaching property serves two functions:
1. To inform the judgement debtor not to alienate the property to someone else
2. To notify the general public not to purchase or otherwise deal with the judgment-
debtor’s property during execution proceedings (Balkrishnan Gupta v. Swadeshi
Polytex Ltd.)
Analysis
Sections 60 and 61 of CPC, list the different kinds of properties that are subject to attachment
and sale in execution of the decree, as well as the properties that are excluded from attachment or
sale. The executing court with the authority to seize and sell property is the court whose local
jurisdiction the property lies within (M.A.A. Raoof v. K.G. Lakshmipathi). In addition, the terms
'attachment' and 'sale' are to be interpreted disjointedly for the purposes of this section; hence, the
sale of a property without its attachment is only an irregularity and does not invalidate the sale
(Haji Rahim Bux v. Firm Samiullah & Sons).
PROPERTIES LIABLE TO BE ATTACHED
Section 60(1) enumerates the various types of property that may be attached and sold in order to
execute the decree. The section lists the following properties that can be attached:
As per the ruling in Ramesh Himmatlal v. Harsukh Jadhavji, the aforementioned list is not
exhaustive; therefore, the section prescribes the following general characteristics to assess
whether or not the subject property is attachable:
The property must be saleable;
It may be movable or immovable;
The property must either belong to the judgment-debtor or he should have the authority to
dispose of the property or its revenues for his own benefit.
It makes no difference whether the property is held in the judgment -debtor's name or in the
name of another person in trust of or on behalf of the judgment-debtor.
PROPERTIES NOT LIABLE TO BE ATTACHED
The proviso to Section 60 (1) outlines the properties excluded from sale and attachment during
the execution of a decree. They are:
The exemptions specified in the proviso are cumulative, and the judgment-debtor may qualify for
more than one exemption (Municipal Corpn. of Rangoon v. Ram Behari).
There was a discrepancy of judicial opinion over whether a judgment-debtor can forego the
benefits accrued by the proviso. It was laid down in Rajindar Kumar v. Chetan Lal that since it
was designed for the judgement debtor's advantage, he can waive it. Howveer, Union of India v.
Jyoti Chit Fund and Finance established that he cannot waive it because it is based on public
policy.
This confusion was cleared by the insertion of a new subsection (1A) by the Amendment Act of
1976. This new subsection specifies that any agreement to waive benefits under Section 60
exemptions is null and void.
Section 61 authorises the State to exempt agricultural products from attachment or sale. This
clause is meant to allow agricultural operations of an agriculturalist to continue following the
execution of a decree.
Mode of Attachement of Property
Order XXI, Rules 43 through 54, outlines the procedure for the attachment of various types of
moveable and immovable property. The procedures have been laid down below:
Rule Debt not secured by a negotiable The property is attached by a written order
46(1)(a) instrument prohibiting the creditor from recovering the debt
and the debtor from making payment.
Rule The property is attached by a written order
46(1)(b) Share in Capital of a prohibiting the person in whose name the shares
Corporation are from transferring them or receiving dividend
thereon.
Rule The property is attached by a written order
46(1)(c) Moveable Property not in prohibiting the person in possession of the
possession of judgement-debtor property from giving possession back to the
judgement-debtor.
Rule 47 The property is attached by giving notice to
Share or interest in movable judgement-debtor prohibiting him from
property transferring the share or interest or charging it in
any way.
Rule 48 The Property is attached by an order that the
& 48A Salary or Allowance of a public amount shall be withheld from such salary and
servant or private employee allowances, either in one payment or monthly
installments.
Rule 49
Partnership Property The property is attached by making an order to
do the following:
a. Charging the interest of the partner in the
firm
b. Appointment of a receiver of the share of
the partner in the profits,
c. Directing accounts and inquiries, and
d. Ordering sale of such interests.
Rule 53 Decrees for payment of money Decree passed by Executing Court: Property is
and sale in enforcing a mortgage attached by an order of such court.
or charge. Decree passed by another Court: Property is
attached by requesting the court to stay the
execution.
Other decrees: Property is attached by issuing
notice to decree holder, prohibiting him from
transferring or charging the decree and to the
executing court to stay the execution till the
notice is cancelled.
Rule 54, The property is attached by an order prohibiting
Immovable Property the judgement-debtor from transferring or
charging the property in any manner and all
persons taking any benefit from such transfer or
charge.
Question 3
What is the difference between Reference, Review, Revision and Appeal in civil cases?
The right to appeal is a legislative right that does not exist unless expressly granted by
statute. In general, an appeal is regarded a continuation of the procedure, and the
appellate authority has the jurisdiction to assess evidence subject to the statutory
constraints.
On the other hand, a court's revisional jurisdiction is inextricably linked to its appellate
authority. When a superior court's revision jurisdiction is sought on the revisional side, it
is done so so that a superior court can intervene by correcting and rectifying an error
committed by an inferior court.
However, in State of Kerala v. K.M. Charia Abdulla &Co., it was determined that a
revision court has the authority to consider evidence unless a statute clearly grants that
authority.
There is a distinction between the two, and the Supreme Court declared in Hari Shankar
v. Girdhari Lal that this distinction is real since an appeal carries the right to re-hear on
law as well as facts, but a superior court is given the power of revision to examine if the
case is decided according to law.
Furthermore, when exercising revisional powers, the court must limit itself to the legality
and propriety of the conclusions, as well as whether the subordinate court acted within
the scope of its authority.
An appeal and a review are distinct in that an appeal is heard by a higher court, whereas a
review is heard by the same Court and usually by the same judge. Furthermore, the
grounds for appeal are broader because an appeal involves a rehearing of the original
issue, but a review is only competent in limited circumstances.
Meanwhile, in Kalabharati Advertising v. Hemant Vimalnath Narichania, it was held that
a court or tribunal does not have an inherent jurisdiction or power to review a duly
pronounced decision, and in the absence of any provision granting this power, it is clear
that a review cannot be made, and any order of review issued is ultra-vires, illegal, and
without jurisdiction.
Furthermore, in the case of an appeal, the matter is reopened as soon as the appeal is
filed, whereas a matter for review is reopened only when the application for review is
accepted.
Only a High Court has revisional authority, whereas the power of review rests with the
same Court and, in most cases, the same judge who issued the judgement.
A High Court may utilise its revisional jurisdiction only when no further appeal is
pending, although review is permitted even when an appeal to a superior court is pending.
Furthermore, their authority might be used on different grounds, as the order authorising
review is appealable, whilst a modification order is not.
The case is referred to the High Court by the subordinate court and not by the party for
reference. For review, the application is made by the aggrieved party.
The matter of reference can be decided by the High Court’s only. A review is done by the
court which has passed the decree or made the order.
Reference can be made only when the suit, appeal or execution proceeding is pending. A
review can be done only after the decree or order is passed.
Grounds of reference is different than a review. Grounds for review are different.
1. Revisional jurisdiction can be exercised only A review is done by the court who has passed
by the High Court. the order or decree itself.
2. Revisional power is exercised when no appeal Review of an order or decree can be done
lies to the High Court. even if an appeal lies to the High Court.
3. The High Court can exercise the revisional For review, an application is required to be
power even suo moto (by its own motion). filed by the aggrieved party.
4. The grounds for revision are mainly on The grounds for revision are different
jurisdiction errors.
5. The order granting the review is appealable. The order passed on exercising revisional
jurisdiction is not appealable.
1. For reference, a case is transferred by a For revision, the application is made to the
subordinate court to the High Court. High Court either by the aggrieved party of
by High Court suo moto.
2. The grounds for reference is when there is The ground for revision is jurisdictional
reasonable doubt on the question of law by errors by the subordinate court.
the subordinate court.
2. Reference can always be made to the An appeal can be made to any court which superior
High Court. and it does not need to be only High Court.
3. The grounds for reference are a The grounds of appeal are much wider than grounds
substantial question of law and it is for reference.
narrower.
4. Reference can be made only when the An appeal can be filed only after the decree is passed
suit, order or execution is pending. or appealable order has been made by the subordinate
court.
1. A review can be made only to the same court. An appeal can be filed to any superior court.
3. Grounds of review are narrower than the Grounds for appeal are wider than the grounds
grounds for appeal. of review.
4. There is no provision for the second review. In an appeal, the provision for the second
appeal lies when sufficient grounds are
present.
1. An application for revision lies only to the High An appeal can be made to any court
Court. superior to the court passing the decree or
order.
2. A revisional application can be made to the High An appeal lies only from the decree or
Court for any decision made by the subordinate court order passed by the subordinate court.
when no appeal lies for such decision.
3. Revisional power of the High Court is totally The right to appeal has been provided by
discretionary. the statue as a substantive right.
4. The grounds for revision is the jurisdictional error. An appeal lies on the question of fact or
question of law or, both.
5. For revision, filing an application is not necessary. For an appeal a memorandum of appeal to
The high court may exercise the revisional power be filed by the aggrieved party before the
as suo moto. superior court is a must.