Andhra Pradesh High Court
Judges : P.CHANDRA REDDY, SRINIVASA CHARI
Parachuri Veerayya - Appellant
Versus
Yalavarti Veeraraghavayya - Respondent
Decided On : 08-12-60
ATTACHMENT - SUBSISTENCE OF ATTACHMENT BEFORE JUDGMENT - EFFECT ON SALE IN EXECUTION OF SUBSEQUENT DECREE - SECTION 64 C. P. C. - SECTION 47 C. P. C. - ORDER 21, RULE 58 C. P. C. - ORDER 21, RULE 63 C. P. C. - Subsistence of attachment before judgment is not a bar to the same property being sold in execution of a decree obtained subsequent to the attachment. The sale of property subject to attachment could be avoided by the attaching creditor or his representatives-in-interest. This does not preclude the same property from being brought to sale in execution of another decree.
Fact of the Case:
The appellant filed O. S. No. 89 of 1947 and attached the property in dispute before judgment. During the pendency of the suit, the property was sold in execution of an award granted by the Co-operative Deputy Registrar in respect of a debt due by the judgment-debtor to a Co-operative Credit Society and was purchased by the first respondent. The appellant's suit was decreed, and the property was being brought to sale. The first respondent intervened with a claim petition under Order 21, Rule 58 C. P. C., which was dismissed. The first respondent then filed a suit for declaration of his title to the property and for setting aside the order on the claim petition.
Finding of the Court:
The courts below held that the sale in favour of the first respondent was not vitiated by collusion and it was valid. They also held that Section 64 C. P. C. did not stand in the way of the suit property being brought to sale.
Issues: 1. Whether the subsistence of an attachment before judgment of some property is a bar to the same property being sold in execution of a decree obtained subsequent to the attachment? 2. Whether the first respondent could object to the attachment of the property, as, at the material time, he had no interest in the property?
Ratio Decidendi: 1. Section 64 C. P. C. does not enact an absolute prohibition of the sale of the property on which the attachment was subsisting. It only says that a private alienation of such property does not bind the attaching creditor or persons claiming under him. 2. Section 63 C. P. C. provides the machinery for adjudicating claims and objections to the attachment of the same property in two or three courts. Sub-section (2) lays down that even if a sale is held contrary to the procedure indicated in Sub-section (1), it is not invalidated for that reason. 3. The person who purchased the property, could bring this fact to the notice of the Court and stop further execution in regard to that court. 4. The first respondent, instead of filing a petition under Section 47 C. P. C. which it was competent for him to do so as could be seen from A. I. R. 1933 Mad. 166, filed the suit which has given rise to this appeal, to set aside the order on the claim petition, under Order 21, Rule 63 C. P. C.
Final Decision: The second appeal is dismissed. Parties will bear their own costs throughout.
( 1 ) THIS Second Appeal was referred to a Bench by our learned brother, Manoher Pershad J. , on the representation of the counsel on either side that an important question of law is involved in this case.
( 2 ) THE principal question raised by the appeal is whether the subsistence of an attachment before judgment of some property is a bar to the same property being sold in execution of a decree obtained subsequent to the attachment,
( 3 ) THE facts material for the purpose of this enquiry may be shortly related. The appellant filed O. S. No. 89 of 1947 on the file of the District Munsifs Court, Tenali, against respondents 2 and B and attached the property in dispute before judgment. During the pendency of the suit, this very property was brought to sale in execution of an award granted by the Co-operative Deputy Registrar, Vijayavada, in respect of a debt due by the judgment-debtor (2nd respondent) to Chowtapalli Vijayalaxmi Vilas Co-operative Credit Society and was purchased by the first respondent on 27/06/1950. The sale was confirmed on 8/08/1950 and the sale certificate Ex. A. 4, was issued to the court-auction-purchaser on 19/09/1952.
( 4 ) O. S. No. 89 of 1947, the suit filed by the appellant, was decreed, and the subject matter of the appeal was being brought to sale. At that juncture the first respondent intervened with a claim petition (E. A. No. 468 of 1952), under Order 21, Rule 58 C. P. C. It was dismissed on the ground that the property in dispute was attached in 1947 before judgment, that the subsequent sale of that property in favour of the first respondent did not affect the prior attachment and that, therefore, the attachment could not be raised.
( 5 ) THEREUPON, the first respondent laid the action (O. S. No. 319 of 1953 on the file of the District Munsifs Court, Gudivada), which has given rise to this appeal, for declaration of his title to the suit property and for setting aside the Order on the claim petition.
( 6 ) THE suit was resisted on the defence that the sale was a collusive one and that the existence of prior attachment rendered that sale void. Incidentally, it was also pleaded by the first defendant that the plaintiff first respondent could not object to the attachment, as, at the material time, he had no interest in the property.
( 7 ) THE trial court, over-ruling the opposition, decreed the suit. It was held by the District Munsiff that the sale in favour of the first respondent was not vitiated by collusion and it was valid. He also held that Section 64 C. P. C. did not stand in the way of the suit property being brought to sale. No issue was raised as to the effect of attachment of this property in another suit before the sale in question. Nor was this point argued before the trial court or the lower court.
( 8 ) ON appeal the Subordinate Judge confirmed the decree and judgment of the District Munsiff.
( 9 ) AGGRIEVED by this decision, the appellant, i. e. , the decree-holder in O. S. No. 89 of 1947, brought a second appeal to this Court. When it came for hearing before our learned brother, Manohar Pershad, J. , the parties requested the learned Judge to have the matter posted before a Bench urging that an important point of law was involved in the case.
( 10 ) THE only contention urged before us by the learned counsel for the appellant is that the plaintiff-first respondent ought to have been non-suited because no objection to the attachment of the properly could be taken by him, he not having acquired any interest thereon at the relevant time, and as such the claim petition filed by him was rightly dismissed and that the scope of the suit under Order 21, Rule 63, C. P. C. could not be wider than the one under Order 21, Rule 58 C. P. C.
( 11 ) AS we have already remarked, this point was not argued in either of the courts below or even before our learned brother, though this was pleaded in the written statement. But it is unnecessary for us to give any decision on the a
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