SUPREME COURT OF INDIA
Y.V. CHANDRACHUD AND V.R. KRISHNA IYER, JJ.
Union of India, Appellant
Versus
Jyoti Chit Fund and Finance and others, Respondents.
Civil Appeal No. 2179 of 1970
Decided on 22-3-1976.
Advocates appeared
Mr. G. L. Sanghi, Sr. Advocate, (M/s. Girish Chandra and S. P. Nayar, Advocates with him), for Appellant; M/s. K. B. Rohatgi, M. K. Garg, V. K. Jain and M. K. Rastogi, Advocates, for Respondent No.1. 1164
Constitution of India,1950 - Articles 300 and 98 (2) - Provident Funds Act - Sections 3 and 4 - Pensions Act - Section 11 - Civil Procedure Code,1908 - Section 60 (1), provisos (g) and (k) – Laconic order of dismissal - Fund and pension dues - Decree-holder - Fund or compulsory deposit - Appellant Union of India has come up in appeal, by special leave, challenging a laconic order of dismissal in Civil Revision made by Delhi High Court, thus upholding the view of the executing court overrulling the contention of the State, objecting to the attachment of certain provident fund and pension dues held by Union of India in trust for the judgment- debtor who had been employed in the Rajya Sabha Secretariat first court had held that the Union of India had no locus standi to object to the attachment, by the decree-holder on the score that an outsider to the suit without interest in the attached money has standing to intervene to dispute the attachability even if the sum was clearly immune to attachment in law - Relevant reasoning is in these - Ground which weighed with the trial court and has won the approval of the High Court is Government has no interest in the attached money and therefore no standing to come to court - Judgment-debtor may file objections for release of attached money - Objections, if made, will be decided afresh on merits - Held, argument that the Lok Sabha Secretariat is different from the Union of India is a new gloss which Shri Rohatgi has put upon his contention of locus standi. He has pressed into service Articles 300 and 98 (2) of the Constitution of India, neither of which is helpful or applicable. This point has the merit of novelty, little else. Consequentially, we set aside the decision of the High Court and of the executing court, but this is not the end of the matter – Court direct court of the Subordinate Judge to go into 1167 merits of the objection raised by te Union of India as to whether the entire amount or any portion thereof held by it on behalf of the Rajya Sabha Secretariat staff, so far as the judgment-debtor in this case is concerned, represents provident fund and compulsory deposits or pensionary benefits, excluded from attachability in execution of civil decrees under the provisions already adverted to - If it is feasible to effect services of notice on the judgment-debtor, well and good, but if it is not, the court cannot absolve itself of the duty to investigate into the merits of the claim or character of the amounts, so long as the Union of India is ready to make good its contention - Appeal allowed
JUDGMENT
KRISHNA IYER, J.:—The moral of this case is that a short cut may often be a wrong cut - in law, as in life. The ratio of this appeal is that technicality will not triumph in courts of law and justice, where substantial public policy is involved and it is such public policy which humanistically protects provident fund and pensionary dues of government servants from claims of judgment-creditors to attach in satisfaction of decrees.
2. The appellant, the Union of India, has come up in appeal, by special leave, challenging a laconic order of dismissal in Civil Revision made by the Delhi High Court, thus upholding the view of the executing court overrulling the contention of the State, objecting to the attachment of certain provident fund and pension dues held by Union of India (on behalf of the Rajya Sabha Secretariat) in trust for the judgment- debtor who had been employed in the Rajya Sabha Secretariat. The first court had held that the Union of India had no locus standi to object to the attachment, by the decree-holder on the score that an outsider to the suit without interest in the attached money has standing to intervene to dispute the attachability even if the sum was clearly immune to attachment in law. The relevant reasoning is in these terms :
"It is not the case of the Union of India that Union of India has any interest in the attached property so as to entitle Union of India to make an application under Order 21, Rule 58, C.P.C. In my opinion, if the attachment has been wrongly made it is for the judgment-debtor to make an application to the court for releasing the provident fund or the compulsory deposits from attachment."
The Court also expressed the view that it was premature to hold
"that attached money will fall within the definition of provident fund or compulsory deposit."
3. In fairness to the Subordinate Judge it must be said he did feel incline to agree that provident fund and compulsory deposits are not liable to any attachment under any defence or order of the civil court.
4. The ground which weighed with the trial court and has won the approval of the High Court is that "the Government has no interest in the attached money and therefore no standing to come to court. The judgment-debtor may file objections for release of the attached money. The objections, if made, will be decided afresh on merits." It is apparent from this statement of facts that the courts below took the narrow view, with an escapist flavour which led to long litigation and large expense, that only "the judgment-debtor and not the Government could raise objections regarding non-attachability of provident fund and pension amounts, as if Government were an officious intruder, bereft of any concern in the insulation of the amounts against execution of decrees of court.
5. The amount involved is small, but Shri Sanghi, for the appellant, contends that the question is one of principle and affects a wide circle of government servants. We agree and indeed appreciate the State s anxiety to fulfil the policy of the statute on behalf of the weaker sections by taking up the burden on itself. May be, it is like a test case ventilating a cause in which a large number of employees may be vitally involved.
6. We may make it clear here that the stand taken by Shri Rohatgi, counsel for the respondent, is two-fold. He argues firstly that this amount in the hands of Government is admittedly being held on behalf of the Rajya Sabha Secretariat servant who has just retired and, therefore, has lost the character of provident fund or pension. The inhibition of attachment of provident fund and like amounts, even if valid, cannot apply to this class of sums which have suffered a metamorphosis. Secondly, the Government has no right to move the court raising objection to the attachment since the judgment-debtor is the only appropriate person who can do so. We disagree. 1165
7. Processual law is neither petrified nor purblind but has a simple mission - the promoti
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