IN THE HIGH COURT OF KERALA AT ERNAKULAM
ANIL K.NARENDRAN, P. V. BALAKRISHNAN, JJ.
Housing And Urban Development Corporation Ltd. - Appellant
Vs.
M/s Zanss Projects, Eastern Tower - Respondent
WA No. 1052 Of 2025
Decided On : 10-06-2025
(A) Kerala High Court Act, 1958 - Section 5(i) - Writ petition concerning attachment of properties - The learned Single Judge directed the appellant to accept the higher valuation of properties and lift the attachment. The appellant's subsequent application to keep the deposit in an interest-bearing account was allowed, but later challenged. The court found that the principal borrower was not heard in the proceedings, leading to prejudice. (Paras 3, 10, 11)
(B) Procedural fairness - The court emphasized the necessity of hearing all parties with stakes in the matter before passing orders that affect their rights. (Paras 10, 11)
Facts of the case:
The 1st respondent claimed to be a bona fide purchaser of properties under attachment and sought to lift the attachment after valuation. The learned Single Judge initially allowed the lifting of the attachment upon deposit of the higher valuation amount.
Findings of Court:
The orders directing the deposit to be kept in an interest-bearing account were set aside due to lack of procedural fairness.
Issues: The main issue was whether the orders made without hearing the principal borrower were justifiable.
Ratio Decidendi: The court ruled that orders affecting the rights of parties must be made with their participation to ensure fairness and justice.
Result: Writ appeal allowed, and the impugned order set aside.
JUDGMENT :
P.V.BALAKRISHNAN,J
This appeal is filed by the 1st respondent in W.P.(C)No.42253 of 2022, aggrieved by the order dated 18.02.2025 of the learned Single Judge in I.A.No.3 of 2024 in I.A.No.1 of 2024 in that writ petition.
2. W.P.(C)No.42253 of 2022 has been filed by the 1st respondent herein claiming to be a bona fide purchaser of Exts.C5 to C7 properties mentioned in Ext.P1, seeking the following reliefs:
“1. Issue a writ of mandamus or other appropriate writ directions or orders directing the 1st respondent to cause valuation of C5-C7 properties mentioned in Exhibit P1 order within a time prescribed by this Hon'ble Court.
2. Issue a writ of mandamus or other appropriate writ directions or order commanding the 1st respondent to accept the value of the properties in respect of C5 to C7 mentioned in Exhibit P1 and grant No Objection to lift the order of attachment issued by the 3rd respondent.
3. Issue a writ of mandamus or other appropriate writ directions or order directing the 3rd respondent to cause the lifting of attachment over the properties covered by C5 to C7 in Exhibit P1 order on payment of the value as fixed by this Hon'ble Court.
4. Issue a writ of mandamus or other appropriate writ directions or order directing the 4th respondent to efface the attachment over properties covered by C5 to C7 in Exhibit P1 order once the payment of the value of the property is remitted by the petitioner with the 1st respondent as directed by this Hon'ble Court.”
3. During the pendency of the writ petition, the learned Single Judge ordered valuation of the afore properties, and as per order dated 13.04.2023, directed the appellant to accept the higher value shown by the valuers, i.e., Rs.5,85,21,989.89 and grant a 'no objection' to lift the order of attachment issued by the 3rd respondent herein over the aforesaid properties. The order passed by the learned Single Judge dated 13.04.2023 reads as follows:
“See order dated 30.01.2023 and 03.02.2023. The valuers have filed reports. As per the report filed by one valuer the value of the property is Rs.3,48,81,000/-. The second valuer has valued the property as Rs.5,85,21,989.89/-. There will be a direction to the 1st respondent to accept the higher value shown by the valuers i.e., Rs.5,85,21,989.89/- and grant a “No Objection” to lift the order of attachment issued by the 3rd respondent. It is made clear that the valuations made by the valuers as aforesaid, will not affect the contention of the 2nd respondent that the valuation by both the valuers are high and the property actually will not fetch the said value. The said contention is kept open for final consideration. If the petitioner deposits the above said value within two days, the 3rd respondent shall lift the attachment over the properties covered by C5 to C7 in Ext.P1”
4. As per the order referred above, the 1st respondent herein/petitioner deposited the amount with the appellant/1st respondent and the attachment came to be lifted.
5. Later, the 1st respondent herein/petitioner filed I.A.No.1 of 2024 on 24.09.2024 seeking an order directing the appellant to deposit the afore amount in an interest bearing Fixed Deposit pending adjudication of the liability. The learned Single Judge vide order dated 15.11.2024, allowed that application. The said order reads thus:
“This application has been filed for a direction to the 1st respondent to consider deposit of the amount of Rs.5,85,21,989.89 pursuant to the order dated 13.04.2023 in an interest bearing fixed deposit pending adjudication of the liability. On 13.04.2023, this Court had considered the reports filed by the valuers of the property and directed the 1st respondent to accept the higher value shown by the valuers, i.e., Rs.5,85,21,989.89 and grant a No Objection to lift the order of attachment issued by the 3rd respondent. It was made clear that the valuations made by the valuers as aforesaid, will not affect the contention of the 2nd respondent that the valuation by both the value
Orders affecting parties' rights must ensure procedural fairness by allowing all stakeholders to be heard.
A purchaser pendente lite cannot object to attachment if they agreed to fulfill a decree obligation.
Timeliness and evidentiary sufficiency govern discharge of decrees: certifications under Order 21 Rule 2 CPC filed beyond 30 days are impermissible; where documentary records conflict with oral evide....
Debt can be defined as an obligation to pay an ascertained sum of money, and therefore, a claim for compensation does not come within that purview.
Attachment before judgment requires strict compliance with procedural mandates; failure to do so renders the order unsustainable.
The appeal under Order 38 Rule 5 of the CPC is maintainable when conditional attachment is involved, ensuring proper legal mechanisms for securing claims.
A transfer made with knowledge of an attachment before judgment can be contested as fraudulent under Section 53 of the Transfer of Property Act.
Bona fide purchasers must be afforded opportunity for hearing before adverse property attachments, ensuring due process under law.
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