Wilful non-compliance with court orders justifies the issuance of arrest warrants against a judgment debtor.

JUDGMENT

Manmeet Pritam Singh Arora, J. (Oral)

CM APPL. 42026/2023 (For Exemption)

Allowed, subject to all just exceptions.

Accordingly, the present applications stand disposed of.

CM(M) 1312/2023 & CM APPL. 42025/2023

1. This petition filed under Article 227 of the Constitution of India impugns the order dated 10.08.2023 passed by the District Judge, North West District, Rohini Courts, Delhi (`Executing Court') in Execution Civil No. 228/2021 titled as "M/s Spinks India vs. M/s Zeal Polyrubs Pvt. Ltd." whereby the Executing Court declined to grant stay of execution of warrants of arrest issued against the Petitioner i.e., Judgement Debtor vide order dated 21.07.2023.

1.1. The Executing Court vide order dated 21.07.2023 issued warrants of arrest against the Judgement Debtor in exercise of its power under Order XXI Rule 41 (2) & (3) Code of Civil Procedure, 1908 (`CPC').

2. The learned senior counsel for the Petitioner states that the order dated 21.07.2023 was issued in view of the fact that the Petitioner herein had failed to file its affidavit of assets as per Order XXI Rule 41 (2) CPC.

2.1. He states that, however, subsequently the Petitioner herein along with the application seeking recall of the order dated 21.07.2023 filed an affidavit of assets, which was placed on record before the Executing Court on 10.08.2023, when the matter was taken up for hearing.

2.2. He states that with the filing of the affidavit of assets, the direction issued by the Executing Court for issuance of warrants of arrest should have been stayed, pending the final determination of the said application for recall.

2.3. He relies upon the judgement of this Court in "M/s Bhandari Engineers & Builders Pvt. Ltd. Vs. M/s Maharia Raj Joint Venture & Ors." 2019:DHC:6663; reported in EX. P. 275 of 2012 dated 05.10.2019; and more specifically paragraph `54' and `55' therein to contend that the Judgement Debtor (`JD') cannot be committed to the civil prison unless the Executing Court returns a finding in terms of para `54' and `55' therein. The relevant extract of the judgment reads as under:

"54. When the Executing Court finds that the judgment debtor is not satisfying the decree/award despite having means/capacity to pay, the decree-holder is at liberty to file an application for detention of the judgment debtor whereupon the Executing Court shall issue a show cause notice to the judgment debtor to show cause as to why he should not be committed to civil prison. The Court shall, upon being satisfied that the judgment debtor has means to pay the decretal amount or substantial part thereof and has refused or neglected to pay the same, pass an order for detention of the judgment debtor in civil prison for a period not exceeding three months in terms of Section 58 (1) (a) of the Code of Civil Procedure. Even after release from detention, the judgment debtor shall remain liable to satisfy the decree/award in terms of Section 58 (2) of the Code of Civil Procedure. However, the judgment debtor who has no means to satisfy the decree/award, cannot be detained in civil prison. The Court shall follow the procedure laid down in Sections 51(c), 55 to 59 and Order XXI Rules 37 to 40 of the Code of Civil Procedure for detention of the judgment debtor.

55. In appropriate cases, the Executing Court may (i) issue notice and direct the Garnishee(s) to deposit in Court the amount due to the judgment debtor as per law; (ii) permit the decree-holder to inspect all the assets and the records of the judgment debtor in the presence of the Local Commissioner to be appointed by the Court; (iii) direct the auditor of the judgment debtor company to submit a report with respect to the affairs of the judgment debtor; (iv) permit the decree-holder to serve interrogatories on the auditors of the judgment debtor; (v) permit the decree-holder to inspect the records of the judgment debtor with the Income Tax and the other authorities to verify the disclosures made by the judgment debtor; (vi) i