V.K. SHALI, J.

1. This is an execution appeal filed by the appellant against the order dated 2.6.2007 passed by the learned ADJ by virtue of which the objections which were filed by M/s. Asian Granites Pvt. Limited were dismissed with a cost amounting to Rs.25,000/-.

2. Briefly stated the facts of the case are that a suit bearing No.150/2000 for recovery of Rs.5 lacs was filed on 6.9.2000 under Order 37 CPC by Deen Dayal Aggarwal, the respondent herein (since deceased) against M/s. Balaji Wheat Products Pvt. Ltd. and its two directors, namely, Sanwar Mal, Managing Director and Sunder Lal, Director. Out of these defendants M/s. Balaji Wheat Products & Sanwar Mal are respondent No.2 and 3 respectively in the present execution appeal. The aforesaid suit was decreed ex parte against respondent Nos.2 and 3 Sunder Lal on 8.11.2000 with an interest @ 15 per cent per annum and a cost of Rs.14,483/-.

3. On 11.1.2001, Deen Dayal Aggarwal, decree-holder, filed an execution bearing No.2/2001 for recovery of Rs.5,27,399/- but respondent Nos.2 to 4 filed an application under Order 37 Rule 4 CPC for setting aside ex parte decree and the same was also dismissed on 27.9.2002. A Local Commissioner was appointed by the executing court to sell the property No.A-2/67, Warehousing Scheme, Kirti Nagar, New Delhi owned by appellant M/s. Asian Granites Pvt. Ltd. for the satisfaction of the decree passed in favour of Deen Dayal Aggarwal. The aforesaid property was put to auction and one Naresh Kumar Aggarwal, who is shown as one of the legal heirs of deceased Deen Dayal as respondent No.1 (f), was declared as a highest bidder. On 19.10.2002, Surender Kumar Aggarwal, judgment debtor No.3, who is respondent No.4 in the present appeal, filed an affidavit that property No.A-2/67, Kirti Nagar, New Delhi, was his absolute property. On 19.10.2002, objections were filed by one of the directors of M/s. Asian Granite Private Ltd. to the effect that sale be not confirmed during the pendency of decision on their objections and the objector company had approached the High Court and filed a petition bearing No.1156/2002 against order dated 19.10.2002 which was also dismissed on 1.11.2002 itself. Thereafter, an application under Section 47 CPC was filed by the legal heirs of the decree-holder, Deen Dayal Agarwal, who were impleaded as party and an application under Order 21 Rule 58 and 59 read with Section 151 CPC was also filed by the objector/appellant herein M/s. Asian Granite Pvt. Ltd. for release of property No.A-2/67, WHS, Kirti Nagar, New Delhi, from attachment. In the application, it was stated that the property belonged to M/s. Asian Granite Pvt. Ltd., a company registered under Companies Act and one Mr. Tarun Aggarwal, being the director of the company had filed the objections on behalf of the said company that it had nothing to do with the judgment debtor. As a matter of fact, the plot measuring 208.94 square meters was leased out perpetually in favour of M/s. Asian Granites by the DDA on 8.9.1989. The building on the said plot of land was raised and it was let out to M/s. Balaji Wheat Products Pvt. Ltd., the judgment debtor. Therefore, it was contended that the building is owned by M/s. Asian Granites Pvt. Ltd. and not by M/s. Balaji Wheat Products Pvt. Ltd. and could not be the subject-matter of attachment.

4. In reply to the application, the judgment debtor admitted that the property belonged to M/s. Asian Granite Pvt. Ltd. and it was also admitted that the judgment debtor company had a director, who was also the director of M/s Asian Granite Pvt. Ltd. but both the companies were separate entities. The application was signed by Sanwar Mal Aggarwal s/o Hanuman Parshad. Two issues were framed by the executing court:-

“(1) whether the property in question, namely, A-2/67, WHS, Kirti Nagar, could not be attached and sold in auction in execution proceedings, if so its effect and

(2) Relief.”

5. On the basis of the evidence adduced by the parties, t