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2001 Supreme(Cal) 212

High Court Of Calcutta
D. K. SETH
GOURI SIRKAR - Appellant
Versus
GOUTAM SIRKAR - Respondent
G. A.  579  Of  2000
Decided On : 04/17/2001

Payment made pursuant to an order of the court cannot be treated as an adjustment of the whole decree within the meaning of Order XXI, Rule 2 for the purpose of discharging the decree on being satisfied unless such direction conforms to Rule 2 read with Rule 1 of Order 21, satisfying the test as held above.

Headnote:

ORDER XXI, RULE 2 - ADJUSTMENT OF DECREE - ORDER XXI, RULE 1 - MODE OF PAYMENT - FULL SATISFACTION OF DECREE - PAYMENT PURSUANT TO COURT ORDER - RECOGNITION OF ADJUSTMENT - CONDITIONS - INTERPRETATION OF RULES 1 AND 2 OF ORDER XXI - COURT ANALYSIS AND CONCLUSION

Fact of the Case:

The petitioner, a judgment debtor, filed an application under Order XXI, Rule 2 of the Code of Civil Procedure, seeking to declare a compromise decree null and void and to record satisfaction of the decree. The petitioner claimed to have paid Rs. 1,90,000 to the plaintiff/decree-holder in full satisfaction of the decree and submitted a letter signed by the plaintiff stating that the plaintiff had no claim in the business.

Finding of the Court:

The court held that the petitioner failed to establish a prima facie case for adjustment of the decree under Order XXI, Rule 2. The court found that the payments made by the petitioner were pursuant to different orders of the court and not in full satisfaction of the decree. The court also held that the alleged letter submitted by the petitioner did not indicate that the decree was satisfied in full.

Issues: 1. Whether the petitioner had made an adjustment of the decree under Order XXI, Rule 2 of the Code of Civil Procedure. 2. Whether the payments made by the petitioner were in full satisfaction of the decree.

Ratio Decidendi: The court interpreted Order XXI, Rules 1 and 2 of the Code of Civil Procedure and held that in order to claim adjustment under Rule 2, the judgment debtor must satisfy certain conditions, including making the payment in the mode prescribed under Rule 1 and obtaining a certificate from the decree-holder or a recording by the court. The court also held that payment made pursuant to an order of the court cannot be treated as an adjustment of the whole decree unless it conforms to the requirements of Rule 2 read with Rule 1 of Order XXI.

Final Decision: The court dismissed the petitioner's application, holding that the petitioner failed to establish a prima facie case for adjustment of the decree. The court also directed the petitioner to pay a further sum of Rs. 50,000 to the plaintiff and to maintain day-to-day accounts of the business.

D. K. SETH, J.

( 1 ) IN this application the following prayers have been made :-' (A) An order declaring that the purported compromise decree dated 27/08/1997, passed in C. S. No. 300 of 1997 is a nullity and void ab initio and not capable of being executed by the plaintiffs; (b) Alternatively, an order recording satisfaction in full of the said purported compromise decree passed on 27/08/1997, in C. S. No. 300 of 1997 and for a declaration that the entire claim of both the plaintiffs in terms thereof stands satisfied in full, and as such, the said decree has become incapable of execution; (c) Stay of all further proceedings of the execution application, being G. A. No. 1693 of 2000; (d) Appropriate injunction restraining the plaintiffs herein from in any way giving effect to and/or enforcing the said purported compromise decree dated 27/08/1997, passed in C. S. No. 300 of 1997; (e) Ad interim orders in terms of prayers (c) and (d) hereinabove; (f) If necessary a Special Officer be appointed to go into accounts of the said business carried on under the name and style of 'b' Sarkar and Sons' at 124 and 124/1, Bepin Behari Ganguly Street, Calcutta-12' (g) Costs; (h) Such further or other order or orders be passed as to Your Lordships may seem fit and proper. "

( 2 ) ON the basis of the pleadings made therein it is said that the decree has since been satisfied. Virtually, the satisfaction is based on the pleadings contained in paragraphs 24 and 25. It is alleged that a sum of Rs. 1,90,000. 00 has since been paid to the plaintiff by the petitioner and that in consideration the decree having stood satisfied, the plaintiff had signed a letter for issue of trade licence in favour of the petitioner alone specifying that the plaintiff has no claim in the business. Mr. Lahiri, learned counsel for the plaintiff/decree-holder contends that his client disputes the genuineness of the said document and that he had initiated a criminal proceedings against the petitioner in view of the alleged letter which is alleged to be forged by the petitioner judgment-debtor.

( 3 ) THIS matter was fixed today upon being mentioned in the presence of the learned counsel for the petitioner. No one appears on behalf of the petitioner.

( 4 ) THE question is one under Order XXI, Rule 2 of the Code of Civil Procedure. In order to get the benefit of Order XXI, Rule 2 the judgment debtor has to inform the Court about such payment of adjustment and also to apply to the Court for issue of notice to the decree-holder as to why such adjustment should not be recorded or certified.

( 5 ) ORDER 21, Rule 2 of the Code of Civil Procedure deals with payment/adjustment of decree. Under sub-rule (1) in case of such payment/adjustment the decree holder has to ceritify such payment/adjustment to the executing Court and the Court then shall record the same. Under sub-rule (2) the judgment debtor may also inform them the Court about such payment/adjustment and apply to the Court for issuing notice to the decree holder for showing cause why the payment/adjustment should not be recorded as certified and upon failure to show case the Court will record the same. There are certain precondition provided in sub-rule (2a) with regard to payment /adjustment at the instance of the judgment debtor, viz. (a) that such payment/adjustment is made in the mode provided in Order 21, Rule 1, (b) or the payment/adjustment is proved by documentary evidence; (c) or the payment/adjustment is admitted by the decree-holder or on his behalf in reply to the notice under sub-rule (2) of Rule 1 Order 21. Rule 1 of Order 21 in sub-rule (1) prescribes how money payable under a decree is to be paid; (2) it is to be deposited in Court or sent to Court by postal money order or through bank; (b) if made out of Court then to the decree holder by postal money order or through bank or by a mode evidencing payment in writing; (c) or as the Court may direct. When such payment is made particulars provided in clauses









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