2006 (6) ALT 98
GOPALA KRISHNA TAMADA, J.
C.R.P. No. 2957 and 2959 of 2006
Decided on 28-7-2006.
E. Subba Reddy
vs.
G. Dhananjay and another
Advocate Appeared
Mr. C. Narender, Counsel for the Petitioner.
Mr. M.S. Ramachandra Rao, Counsel for the Respondent.
Code of Civil Procedure – Section 73 – Another Execution Petition – Transfer of – Whether a decree holder can maintain a petition under Section 73 C.P.C. in an Execution Petition to which the balance sale proceeds of the judgment-debtor in another Execution Petition are transferred –Held, It is not known as to how the petitioner can invoke the jurisdiction of the Court below under Section 73 C.P.C –Section 73 C.P.C. empowers the decree-holders to file an application in the so-called E.P. for rateable distribution of the auction sale proceeds, but not in E.P.No.18 of 2003 to which the 1st respondent herein, who is the decree-holder in O.S. got the balance sale proceeds i.e. an amount of Rs.1,00,000/- transferred invoking the powers under Section 73. C.P.C – Observations made by the learned Principal Junior Civil Judge are perfectly justified in holding that the Execution Applications filed by the petitioner are without any locus standi – Civil Revision Petitions Dismissed
Certainly. Based on the provided judgment, the case discusses the issue of whether a decree holder can maintain a petition under Section 73 of the Civil Procedure Code (C.P.C.) in an execution proceeding to transfer the balance sale proceeds from another execution petition. The court held that such a petition is not maintainable if it is not filed in the appropriate execution proceeding where the decree holder has a direct interest, and that a stranger to the proceedings cannot invoke Section 73 for such transfer.
For similar judgments, you may look for cases that address:
The proper scope and application of Section 73 C.P.C., particularly concerning the distribution of sale proceeds among decree holders and the locus standi to file applications in execution proceedings (!) .
The question of whether a decree holder or a third party can initiate proceedings under Section 73 for transfer or distribution of sale proceeds in a different execution petition from where the original decree was executed (!) .
Jurisdictional limits of courts to entertain applications under Section 73 C.P.C., especially in relation to transfers of amounts or properties in execution proceedings (!) .
The principles governing intervention or third-party claims in execution proceedings, and whether such claims can be entertained under Section 73 C.P.C. (!) .
These themes recur in various judgments dealing with the scope of execution proceedings, the rights of decree holders, and procedural limitations on third-party or stranger applications. You may consider searching for judgments that discuss the interpretation of Section 73 C.P.C. in the context of distribution of sale proceeds and locus standi of parties in execution proceedings.
As the point involved and the parties in these two revision petitions are one and the same, they are taken up together for disposal by this common order.
2. A short but interesting point that falls for consideration in these revision petitions is as to whether a decree holder can maintain a petition under Section 73 C.P.C. in an Execution Petition to which the balance sale proceeds of the judgment-debtor in another Execution Petition are transferred?
3. Brief facts are that the 2nd respondent herein is the judgment-debtor against whom a decree was passed by the Senior Civil Judge, Nizamabad in O.S.No.168 of 2001 which was filed by some third party. Similarly, the 1st respondent herein instituted O.S. No.351 of 2001 and the learned Principal Junior Civil Judge, Nizamabad, decreed the suit against the 2nd respondent herein on 3-7-2002. The suit in O.S.No.341 of 2001 instituted by the petitioner herein was also decreed against the 2nd respondent i.e. the judgment-debtor on 14-11-2001. It appears that the decree holder in O.S.No.168 of 2001 instituted E.P.No.67 of 2002 and got the properties belonging to the 2nd respondent-J. Dr sold in an auction and realized the sale proceeds. However, it appears, that an amount of Rs.1,00,000/-(Rupees One Lakh Only) was left over and the 1st respondent herein, who is the decree holder in O.S.No.351 of 2001, filed E.P.No.18 of 2003 under Section 73 C.P .C. seeking transfer of the outstanding amount of Rs.1,00,000/-from E.P. No.67 of 2002 from the Court of the Senior Civil Judge at Nizamabad to the Court of Principal Junior Civil Judge, Nizamabad and that petition was ordered. At a stage when the 1st respondent was about to realize the amount, the petitioner, who is the decree holder in O.S.No.341 of 2001, came forward and filed two applications i.e. E.A.No.188 of 2006 and EANo.189 of 2006 purported to have been filed under Section 73 C.P.C. seeking to stay the disbursement of amount of Rs.1,00,000/- in E.P.No.18 of 2003 to the 1st respondent herein and rateable distribution of the said amount respectively. Both the reliefs sought for were negatived by the Principal Junior Civil Judge, Nizamabad. Aggrieved by the same, the petitioner has preferred these Civil Revision Petitions.
4. Heard Sri C. Narender, learned counsel for the petitioner and Sri M.S. Ramachandra Rao, learned counsel for the respondents.
5. According to the learned counsel for the petitioner, after the decretal amount was realized in O.S.No.168 of 2001, the Court has become a trustee for the balance amount, and thus, there is no embargo for the petitioner to come forward for rateable distribution of the amount. However, the learned counsel for the respondents has strenuously opposed the said contention stating that the petitioner has no locus standi and the petitions are not maintainable and he has drawn my attention to Section 73 C.P.C.
6. Section 73 C.P.C. deals with proceeds of execution sale to be rateably distributed among decree-holders and according to the said provision of law, where assets are held by a Court and more persons than one have, before the receipt of such assets, made application to the Court for the execution of decrees for the payment of money passed against the same judgment-debtor and have not obtained satisfaction thereof, the assets, after deducting the costs of realization, shall be rateably distributed among all such persons.
7. From the above provision of law, it is clear that if there are more decree-holders than one and the amount is not sufficient to satisfy or realize to all the decree-holders, the Courts can pass orders rateably, but that does not mean a situation like this. Here is a case where the petitioner (totally a stranger to E.P.No.18 of 2003) can maintain a petition under Section 73 C.P.C. only in E.P.No.67 of 2002, but not in E.P.No.18 of 2003, which was filed by the 1st respondent herein. Instead of resorting to filing an application in E.P.No.67 of 2002, for obvious reasons, the petit
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