IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT GOA
Sandeep K. Shinde, J.
Madan Waman Chodankar & Ors. – Appellants
Versus
Keshav Malik Hardware & Ors. – Respondents
Writ Petition No. 86 of 2022
Decided On : 25-07-2022
Order XXI - Execution of Decrees and Orders - [Pendente Lite Enquiry] - [Order XXI, Rules 97, 101, 102 of CPC] - The court considered whether the Executing Court was justified in continuing the enquiry in an Application filed by a third party under Order XXI, Rules 97 and 101 of the CPC, despite the third party being pendente lite of the judgment debtor. The court referred to Order XXI, Rules 97, 101, and 102 of the CPC and discussed the scope of adjudication in such cases, emphasizing that a transferee pendente lite has no right to resist the decree. The court relied on the decisions in Usha Sinha Vs. Dina Ram & Others and Silverline Forum Pvt. Ltd. Vs. Rajiv Trust & Another to support its decision.
Fact of the Case:
The petitioners filed a suit for dissolution of partnership, recovery of mesne profits, and eviction of judgment debtors. The suit was decreed, and during the execution, a third party claimed rights over the property. The Executing Court allowed the third party's application and framed issues for determination. The petitioners moved an application for discontinuance of the enquiry, which was rejected, leading to the present petition under Article 227 of the Constitution of India.
Finding of the Court:
The court found that the third party, being a transferee pendente lite of the judgment debtor, had no right to resist the decree. The court held that the Application under Order XXI, Rule 97 of the CPC was not maintainable, quashed the impugned order, and allowed the petition, making it absolute.
Issues: The issues revolved around the justification of the Executing Court's continuation of the enquiry in an Application filed by a third party under Order XXI, Rules 97 and 101 of the CPC, despite the third party being pendente lite of the judgment debtor.
Ratio Decidendi: The court's decision was based on the interpretation of Order XXI, Rules 97, 101, and 102 of the CPC, emphasizing that a transferee pendente lite has no right to resist the decree. The court also relied on the decisions in Usha Sinha Vs. Dina Ram & Others and Silverline Forum Pvt. Ltd. Vs. Rajiv Trust & Another to support its decision.
Final Decision: The court quashed the impugned order, allowed the petition, and made it absolute in favor of the petitioners.
JUDGMENT
1. Heard Mr. Lotlikar, learned Senior Counsel for the petitioners and Mr. Desai, learned Counsel for the respondent no. 6.
2. Rule. Rule made returnable forthwith. Mr. Shivan Desai, learned Counsel, waives service on behalf of the respondent no. 6. Heard finally by consent of parties.
3. The short question, arises for consideration, is, whether, the Executing Court was justified in continuing enquiry, in an Application, purporting to have been filed by the third party, under Order XXI, Rules 97 and 101 of the CPC, although, enquiry has revealed that third party-respondent no. 6 was pendente lite of the judgment debtor.
4. Briefly stated facts of the case are as under:
The petitioners instituted a suit in the Court of Civil Judge Senior Division at Panaji, being Special Civil Suit No. 97/1996/B, for dissolution of partnership; recovery of mesne profits and eviction of judgment debtor nos. 1 to 5(i), who were defendants in the said suit. It was the petitioner's case that the original plaintiff no. 1 was tenant of the suit premises, wherein the business of defendant no. 1 (partnership firm) was carried on. In terms of partnership deed, the tenancy rights of the said premises continued to be the personal property of the original plaintiffs. On account of disputes between the plaintiffs and other partners of the firm, the original plaintiffs, gave a notice of dissolution of the partnership firm to the defendant nos. 2 to 4 and sought discontinuation of the use of the suit premises and delivery of vacant possession to them alongwith other reliefs.
5. On 24.04.2008, the learned Adhoc Civil Judge Senior Division at Panaji, decreed the suit, whereby, the defendants/ judgment debtor were inter alia directed to vacate the suit premises and deliver its vacant possession to the plaintiffs. Since the possession of the suit premises was not handed over by the judgment debtor, despite the decree attaining finality, the original plaintiffs filed an Application for execution of the decree, which came to be registered as Execution Application No. 22/2008/B. Pending Execution, in February, 2009, an Application, purporting to be an Application under Order XXI, Rules 97 and 101 of CPC, came to be filed on behalf of respondent no. 6, as a third party. Respondent no. 6 claimed that by Deed of Sale dated 24.04.2007, he had purchased the suit property alongwith the house from its owner, M/s Rizwi Estate and Hotels Private Limited. He would further claim that M/s Keshav Malik Hardware Corporation (partnership firm-respondent no. 1) was tenant of the suit premises and it had surrendered its tenancy rights in his favour, by Deed of Surrender dated 05.07.2007 and handed over the vacant possession of the same to him. On this premise, respondent no. 6, submitted that the decree in question could not be executed against him, since, he has independent right, title and interest in the property.
6. The Application under Order XXI, Rules 97 and 101 of CPC was opposed by the decree holders, on the ground that the Deed of Surrender dated 05.07.2007, purportedly made by M/s Keshav Malik Hardware Corporation (Firm-Defendant No. 1), was during the pendency of the suit, instituted by the original plaintiffs against the firm and its partners, therefore, was governed by doctrine of lis pendens and objection under Order XXI, Rule 97 of the CPC, was not maintainable.
7. On 18.08.2011, an Application was moved by the respondent no. 6, by which, he prayed to the Executing Court that, the issues which arise for determination of the Court between the parties, be framed before proceeding with the Execution. The Application was opposed by the petitioners, that there was no scope for framing such issues or points for determination as the very Application made by respondent no. 6, under Order XXI. Rules 97 and 101 of CPC was not maintainable.
8. By order dated 05.09.2013, the Executing Court allowed the Application of respondent no. 6 and framed the following issues:
i. Whether the
Brahmdeo Chaudhary Vs. Rishikesh Prasad Jaiswal & Another
Sameer Singh & Another Vs. Abdul Rab & Others
A transferee pendente lite has no right to resist the decree under Order XXI, Rules 97 and 101 of the CPC.
A subsequent purchaser cannot assert rights against a prior decree holder, as established by the doctrine of lis pendens under Section 52 of the Transfer of Property Act.
A transferee from a judgment debtor is presumed to be aware of the proceedings and cannot resist or obstruct the execution of a decree, as per Order XXI Rule 102 of the Code.
A purchaser of property during the pendency of a suit has no right to resist or obstruct the execution of a decree, as per Order XXI Rule 102 and the doctrine of lis pendens.
The main legal point established is that a transferee from a judgment debtor during the pendency of a suit has no right to resist or obstruct execution of a decree, as per Order XXI Rule 102 and the ....
A transferee pendente lite cannot maintain an application under Order XXI Rule 97 CPC, and the executing court must prioritize res judicata objections before proceeding.
Bonafide purchasers without notice of an original agreement can challenge a decree in a separate suit, as the Execution Court cannot adjudicate on the decree's collusiveness.
(1) Lis Pendens – Section 52 of T.P. Act has no application where transfer in favour of subsequent purchaser is not after filing of suit but before filing of suit for specific performance.(2) Resista....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.