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2024 Supreme(Ker) 1673

IN THE HIGH COURT OF KERALA AT ERNAKULAM
VIJU ABRAHAM, J.
Abdurahman M. S/o Rukhiya – Appellant
Versus
Payyannur Urban Co-Operative Society Ltd. – Respondent
O.P. (C) No. 1319 of 2024
Decided On : 30-07-2024

Advocates Appeared:
For the Appellant : K. Rajesh Sukumaran
For the Respondent: Mahesh V. Ramakrishnan

Arrest warrants against judgment debtors cannot be issued without exhausting property execution options as mandated by CPC; reasoned orders are essential in judicial decisions.

Headnote:(A) Code of Civil Procedure, 1908 - Section 51 - Order XXI Rules 30 and 40 - Execution of decree - The court addressed issues concerning the execution proceedings against a judgment debtor, particularly the issuance of an arrest warrant without prior sale of property. The petitioner contended that arrest warrants can only be issued after exhausting property execution options. The court recognized the need for adherence to procedural requirements under CPC before detaining a debtor. The execution order was found cryptic and lacking reasoned justification, leading to its annulment and remand for compliance with procedural safeguards. (Paras 3, 4, 12, 15)

Findings of Court:
The execution court failed to follow the requisite procedural steps, compromising the validity of the arrest warrant. The order was criticized for being non-speaking and lacking clarity about grounds for the debtor's means.

Issues: Whether the execution court complied with the procedural standards mandated by sections of CPC before ordering arrest.

Ratio Decidendi: The court highlighted the requirement for a reasoned judgment in enforcement proceedings and asserted that arrest warrants should not supersede property execution methods without lawful justification.

Result: The execution order dated 23.05.2024 was set aside for non-compliance with procedural norms.

Table of Content
1. initial petition and execution context (Para 1 , 2)
2. arguments regarding property sale and arrest (Para 3 , 4)
3. analysis of execution procedures under cpc (Para 5 , 6 , 7)
4. simultaneous execution of decrees (Para 8 , 9)
5. procedural non-compliance and judgment clarity (Para 10 , 11 , 12)

JUDGMENT :

VIJU ABRAHAM, J.

1. The above original petition has been filed seeking to set aside Ext.P3 order dated 23.05.2024 in E.P.No.53 of 2022 in ARC No.758 of 2019 on the file of the Subordinate Judge’s Court, Payyannur.

2. Short facts necessary for the disposal of the original petition are as follows:

Petitioner is the respondent/judgment debtor in E.P.No.53 of 2022 on the file of the Subordinate Judge’s Court, Payyannur and the respondent herein is the petitioner/decree holder in the said execution petition. In execution of the award of the Assistant Registrar of Co-operative Societies (General), Payyanur dated 20.06.2019 in ARC No.758 of 2019 respondent filed E.P.No.53 of 2022 before the Court of Subordinate Judge, Payyannur. As per the execution petition, the total award amount along with interest comes to Rs.11,56,511/- and the mode of assistance of the court required are as follows:

i. The mortgaged property shown in the schedule below may be proclaimed, sold and the sale proceeds may be paid over to the petitioner towards the decree amount.

ii. Notice under Rule 37 of Order XXI of the Code of Civil Procedure (in short “CPC”) may be issued to the respondent and also a warrant of arrest under Rule 38 and they may be detained in civil prison for the realisation of the decree amount.

3. The petitioner contended that as per the execution petition, the first prayer is to sell the mortgaged property of the petitioner measuring an extent of 4.45 Ares (11 cents) in re-survey no.9/3 of Payyannur amsom, Kavvayi desom of Payyannur Taluk, which has been mortgaged with the bank at the time of availing the loan. A detailed counter statement was filed by the petitioner in the execution petition contending that the entire property need not be sold and only a portion of the property need be sold so as to fulfil the decree debt as the property is situated in the middle of the town and is having a value of more than Rs.5,00,000/- per cent. It is the case of the petitioner that the execution court did not consider the counter statement and without proceeding with the sale of the mortgaged property passed Ext.P3 order dated 23.05.2024 issuing warrant of arrest, that too without conducting an enquiry under Rule 40(1) of Order XXI CPC and without proving the means of the judgment debtor. The contention of the petitioner is that issuance of Ext.P3 order whereby arrest warrant was issued against him is in violation of the provisions of the CPC and also the judgment of this Court in Anilkumar v. Divya , 2023 (5) KHC 341. The petitioner would contend that in Anilkumar’s case cited supra it was categorically held that the execution court cannot invoke the remedy under Clause (c) of Section 51 CPC by issuing arrest warrant against the judgment debtor without exhausting the remedy under Clause (b) of Section 51 CPC by the sale of movable or immovable property if any available. So, on the basis of the same, the first contention of the petitioner is that before issuing arrest warrant, the execution court ought to have proceeded with the sale of movable or immovable property and only thereafter the court could have resorted to the arrest and detention of the judgment debtor in civil prison. Secondly, it is contended that before issuing arrest warrant as per Ext.P3, the procedures as contemplated in Rule 40(1) of Order XXI CPC have not been followed.

4. The respondent entered appearance through counsel and contended that as regard the first contention of the petitioner that the execution court can proceed against the person of the judgment debtor only after proceeding against the property of the judgment debtor is not correct and he relies on the judgmen

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