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2016 Supreme(Del) 138

IN THE HIGH COURT OF DELHI
J.R. MIDHA, J.
M/S BHANDARI ENGINEERS & BUILDERS PVT LTD. - Decree Holder
versus
M/S MAHARIA RAJ JOINT VENTURE & ORS - Judgement Debtors
EX.P. 275/2012 and EX.P. 276/2012
Decided On : 11-1-2016

Advocates Appeared:
Mr. S.S. Jauhar, Adv.
Mr. Sanjay Agnihotri, Adv. for JD 4. Mr. Ajit Sharma and Mr. Mayank Aggarwal, Advs. for Objector Brij Bhushan.

Headnote:

Civil Procedure Code, 1908 - Order 41 Rule 41(1), 41(2) - Execution of decree - Delays - Filing of affidavit - Permissibility of - Power of Court - Delays and difficulties in execution of decrees - Exercise of inherent powers to direct the judgment debtor to be present in Court - Executing Court may examine the judgment debtor orally or direct him to file an affidavit detailing how he wishes or proposes to satisfy the decree - Judgment debtor's default to file the affidavit of assets - Judgment debtors were directed to file the affidavits of their assets - Judgment debtors shall not dispose of, alienate, encumber either directly or indirectly or otherwise part with the possession of any assets of judgment debtor nos.1, 3 and 4 - Objections of the objector shall be taken up on the next date of hearing - Execution cases for recovery of money are unreasonably delayed before the Trial Courts - Courts seldom exercise the power under Order XXI Rule 41 of the Code of Civil Procedure - Copy of this order be sent to all the District Judges.

JUDGMENT

1. Delays and difficulties in execution of decrees erode public confidence and trust in justice delivery system. To prevent such delays, the executing Courts can exercise inherent powers to direct the judgment debtor to be present in Court (and even ensure his presence by coercive process) to receive such information or documents as will aid in the execution of the decree. The executing Court may examine the judgment debtor orally or direct him to file an affidavit detailing how he wishes or proposes to satisfy the decree.

2. In cases for execution of decree for recovery of money, an important step is to ascertain the assets/means of the judgement debtor to satisfy the decree. Order XXI Rule 41(2) of the Code of Civil Procedure empowers the executing Court to direct the judgement debtor to disclose his assets on affidavit in Form 16A, Appendix E to ascertain his assets/means to satisfy the decree. Order XXI Rule 41(2) of the Code of Civil Procedure is reproduced herein below:-

“Order XXI Rule 41(2) Where a decree for the payment of money has remained unsatisfied for a period of thirty days, the Court may, on the application of the decree-holder and without prejudice to its power under sub-rule (1), by order require the judgment-debtor or where the judgment-debtor is a corporation, any officer thereof, to make an affidavit stating the particulars of the assets of the judgment-debtor.”

3. Order XXI Rule 41(1) of the Code of Civil Procedure empowers the executing Court to orally examine the judgment debtor. Order XXI Rule 41(1) of the Code of Civil Procedure is reproduced hereunder: -[“Order XXI Rule 41. Examination of judgment-debtor as to his property.-

(1) Where a decree is for the payment of money the decree-holder may apply to the Court for an Order that— (a) the judgment-debtor, or (b) where the judgment-debtor is a corporation, any officer thereof, or (c) any other person, be orally examined as to whether any or what debts are owing to the judgment-debtor and whether the judgment-debtor has any and what other property or means of satisfying the decree; and the Court may make an order for the attendance and examination of such judgment -debtor, or officer or other person, and for the production of any books or documents.”

4. In the event of the judgment debtor’s default to file the affidavit of assets, Order XXI Rule 41(3) of the Code of Civil Procedure empowers the Court to detain the judgment debtor in civil prison for a term up to three months. Order XXI Rule 41(3) of the Code of Civil Procedure is reproduced below:-

“Order XXI Rule 41

(3) In case of disobedience of any order made under sub-rule (2), the court making the order, or any court to which the proceeding is transferred, may direct that the person disobeying the order be detained in the civil prison for a term not exceeding three month unless before the expiry of such terms the court directs his release.”

5. Form 16A of Appendix E of the Code of Civil Procedure prescribes the format of the affidavit of assets to be filed by the judgment debtor which is reproduced herein below:-

“[No. 16A Affidavit of Assets to be made by a Judgment-debtor

[O. XXI, r.41(2)]

In the Court of

A.B……… .................................…………………………. Decree-holder.

Versus

C.D..............................…….. ………………………….. Judgment-debtor.

I………………….. of …………………..state on Oath/solemn affirmation as follows:-

1. My full name is ……………………………………(Block Capitals)

2. I live at

3. I am*................................... married/single/widower (widow)/divorced

4. The following persons are dependant upon me:-

5. My employment, trade or profession is that of .....................carried on by me at ......................................... I am a director of the following companies:-

6. My present annual/monthly/weekly income, after paying income-tax, is as follows:-

(a) From my employment, trade or profession Rs………….

(b) From other sources Rs…………

7. *(a) I own the house in which I live; i


































































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