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In the High Court of Judicature, Andhra Pradesh at Hyderabad
B.K. SOMASEKHARA, J.
Aluru Venkata Rao – Petitioner
Versus
Kodali Venkata Sri Krishna Jaganmohana Rao - Respondent
Civil Revision Petition No. 2119 of 1994
Decided on : 17-10-1994

The court emphasized the importance of protecting the liberty and freedom of judgment-debtors and the need for a proper inquiry to determine their means to pay before ordering their arrest and detention.

Headnote:

CIVIL PROCEDURE CODE - ORDER 21 RULE 37 AND 40 - SECTION 51(B) - ARREST AND DETENTION OF JUDGMENT-DEBTOR - CONDITIONS - INQUIRY MANDATORY - SHOW-CAUSE-NOTICE - BURDEN OF PROOF - MEANS TO PAY - INTERPRETATION.

Fact of the Case:

The petitioner, a judgment-debtor, challenged the order of the District Munsif directing his arrest and detention in civil prison for failing to pay the decretal amount. The petitioner claimed that he had no means to pay and undertook to clear the dues in two years.

Finding of the Court:

The court held that the impugned order was passed in utter ignorance of settled law and precedents, violating mandatory provisions of the Civil Procedure Code. It emphasized the importance of protecting the liberty and freedom of the judgment-debtor and the need for a proper inquiry to determine the judgment-debtor's means to pay.

Issues: 1. Whether the District Munsif's order directing the arrest and detention of the petitioner was legally valid. 2. Whether the court was required to hold an inquiry and record a finding on the judgment-debtor's means to pay. 3. Who bears the burden of proof in establishing the judgment-debtor's means to pay.

Ratio Decidendi: 1. The court relied on various Supreme Court and High Court precedents, as well as authoritative commentaries on the Civil Procedure Code, to establish the mandatory nature of the provisions relating to the arrest and detention of judgment-debtors. 2. It held that a show-cause-notice to the judgment-debtor is mandatory and that the court is obliged to hold an inquiry and record a finding that the judgment-debtor has means to pay and has refused or neglected to pay the decretal amount. 3. The court clarified that the burden of proving that the judgment debtor has means to pay the amount of the decree or some substantial part thereof and that he is refusing or neglecting to pay the same, would be on the decree-holder.

Final Decision: The court allowed the petition, set aside the impugned order, and remitted the matter back to the executing Court for disposal according to law. The court directed the learned Munsif to give opportunities to both sides to produce evidence and address arguments and to dispose of the matter within two months.

ORDER :

1. The order of the learned District Munsif (Sri P. Laxminarayana), Nuzvid in E.P. No. 12/91 (O.S. No. 244/89) dated 16-6-1994 is challenged in this revision petition. The petitioner is the Judgment-debtor in E.P. 12/91 and respondent is the Decree-holder. The decree-holder was executing the decree obtained by him as against the petitioner. The respondent sought the assistance of the Court to arrest and detain the petitioner in civil prison till he paid the decretal amount. The petitioner resisted the execution petition pleading that he had no income and that he was unable to maintain himself and his family members with the meagre income he was getting. He also undertook to clear off the decretal amount in two years. The learned Munsif after hearing both the sides and on the basis of the material available before him came to the conclusion that there was no merit in the resistence of the petitioner and ordered issue of arrest warrant to keep him in civil prison.

2. The learned Advocate for the petitioner has contended that the impugned order passed by the learned Munsif is illegal and unenforceable.

3. He has pointed out Section 51(b) of C.P.C. in support of his contention that when the petitioner as a judgment-debtor raised a plea that he had no means to pay or that he had no capacity to pay, the Court was bound to hold an enquiry and give a finding that the conditions laid down in proviso to Section 51 of C.P.C. had been fufilled to direct the arrest of the petitioner and in the absence to do so, the result is that the order is vitiated. The learned Advocate for the respondent has contended that in effect and in spirit, the learned Munsif has complied with the legal implications stated above, since the petitioner is admittedly, a lecturer having means to pay and since the petitioner undertook to clear the dues under the decree and therefore, there is no infirmity either legal or otherwise, in the impugned order.

4. On a careful examination of the legal implications of Section 51(b) and order 21 Rules 37 and 40 of C.P.C. this Court is not convinced that the impugned order passed by the learned Munsif can be supported. It is passed in utter ignorance i.e., in contempt of settled law and precedents of the Supreme Court in Jolly George Varghese v. The Bank of Cochin1, our own High Court in Suravarapu Putrayya v. Maddukuri Veerraju2, R.V.J. Sastry v. Bank of India3, Sikile Moses v. Koturi Seeta Ram Das4, Kerala High Court in Kesava Pillai v. Ouseph Joseph5 and K.B. Md. Ibrahim v. State Bank of Travancore, Trivendrum6 and authoritative commentaries of C.P.C. by AM Sake (pages 211 and 212) and Mulla (pages 1454 to 1461 Vol. 11 in XIV Edn.)

5. The gist of the law so settled may be succinctly and briefly noted: The relevant provisions in this regard are intended to protect the liberty and freedom of the judgment-debtor and therefore, the Code considers them to be of paramount importance. They are mandatory and violation of which invariably results in vitiating the consequential order. A show-cause-notice to me judgment-debtor as to why he should not be committed to civil prison under Order 21 Rules 37 and 51(sic. 40) of C.P.C. is mandatory. The Court is obliged to hold an inquiry and record a finding that the judgment-debtor has means to pay and has refused or neglected to pay the decretal amount, and such a finding should be supported by reasons. Such an inquiry should not be confined only to the stage of the date of decree, date of the execution petition or the date of the show-cause-notice or the inquiry. It should be at the relevant time when the Court gives a finding as above. The meaning and the scope of means to pay is to be found in Jolly George Varghees's case1 as follows:

“…. The words which hurt are ‘or has had since the date of the decree, the means to pay the amount of the decree’. This implies, superficially read, that if at any time after the passing of an old decree the judgment-debtor had come by some resource

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