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AMIT BANSAL
G. S Sandhu – Appellant
Versus
Geeta Aggarwal – Respondent
JUDGMENT :
AMIT BANSAL, J.
1. The present petition under Article 227 of the Constitution of India impugns the order dated 13th August, 2019 passed by the District Judge, Patiala House Courts in Execution No.5359/2016, whereby the petitioners, being the directors of M/s. Silver Fern Hotels Private Limited [hereinafter ‘judgment debtor company’] have been directed to file affidavits of assets in pursuance of the judgment of this Court in Bhandari Engineers and Builders Pvt. Ltd. Vs. Maharia Raj Joint Venture and Ors., 227 (2016) DLT 302.
2. The issue involved in the present petition was formulated by this Court in the order dated 20th September, 2019 while issuing notice in the present petition, viz., whether directors of a company can be directed to file affidavits of their assets in an execution petition. Pursuant to directions passed by this Court, written submissions have been filed on behalf of the petitioners and the respondent/decree holder.
3. Brief facts to the extent relevant for deciding the present petition are set out below:
Order XXI Rule 37 of CPC provides that when an application is filed in execution proceedings for payment of money seeking arrest and civil imprisonment of judgment debtor, court would issue a notice ....
The main legal point established in the judgment is that the directions to the directors to furnish details of their personal properties do not follow as a matter of course in every case of execution....
A court cannot independently impose asset disclosure requirements during execution proceedings without a request from decree holders, ensuring compliance with jurisdictional provisions and protecting....
A money decree against a corporation cannot be executed against its directors or employees unless they are personally liable; the corporate veil protects individuals from personal liability for corpo....
Court's direction on mandatory disclosure of judgment-debtor's assets, incomes, and expenditures to expedite execution proceedings.
Directors of a company cannot be held personally liable for the company's debts unless explicitly stated in the decree.
The main legal point established in the judgment is the requirement to implead Directors in their personal capacity for the attachment of personal property in execution and the inapplicability of the....
The court established that in money recovery suits, defendants may be required to disclose their assets on oath even before the settlement of issues, as a measure to secure potential decrees and prev....
Power of review can be exercised for correction of a mistake but not to substitute a view. Such powers can be exercised within the limits of the statute dealing with the exercise of power.
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