1979 Supreme(Raj) 279
RAJASTHAN HIGH COURT
K.D.Sharma, J.
Bhalle Chand And Ors - Appellant
Versus
Tej Raj And Ors - Respondent
S.B. Civil Regular Appeal No. 70 of 1968.
Decided On : 23-03-1979
A sale of property made after attachment is not void if the attachment was not complete and valid. However, a sale of property made with the purpose of cheating creditors and fraudulently converting the property into money so as to render it incapable to satisfy the debts due to them is void.
Headnote:
ATTACHMENT OF PROPERTY - VOID ATTACHMENT - SALE OF PROPERTY AFTER ATTACHMENT - VALIDITY - FRAUDULENT TRANSFER - SECTION 53 OF THE TRANSFER OF PROPERTY ACT, 1882 - INTERPRETATION AND APPLICATION.
Fact of the Case:
Kojiya, a judgment debtor, sold his 'Nohra' (house) to the appellants after it was attached by the court in execution of a decree obtained against him by the respondents. The appellants claimed ownership of the 'Nohra' under Order XXI Rule 58, Article of the Code of Civil Procedure, 1908, but their claim was dismissed by the execution court. They then filed a suit under Order XXI Rule 63, Article to establish their title to the 'Nohra'. The trial court and the appellate court dismissed the suit, holding that the sale was void as it was made after the attachment and that it was fraudulent.
Finding of the Court:
The High Court held that the attachment of the 'Nohra' was not complete until a copy of the proclamation order was affixed on a conspicuous part of the court house, which was done on April 20, 1963. Therefore, the sale of the 'Nohra' made by the judgment-debtor in favor of the appellants on April 19, 1963, was not void. However, the court found that the sale was fraudulent as Kojiya, the judgment-debtor, transferred the 'Nohra' with the purpose of cheating his creditors, namely, the respondents, and fraudulently converted the 'Nohra' into money so as to render it incapable to satisfy the debts due to him.
Issues: 1. Whether the attachment of the 'Nohra' was complete and valid? 2. Whether the sale of the 'Nohra' made by the judgment-debtor in favor of the appellants was void? 3. Whether the sale was fraudulent?
Ratio Decidendi: 1. The court held that the attachment of the 'Nohra' was not complete until a copy of the proclamation order was affixed on a conspicuous part of the court house, which was done on April 20, 1963. Therefore, the sale of the 'Nohra' made by the judgment-debtor in favor of the appellants on April 19, 1963, was not void. 2. The court held that the sale was fraudulent as Kojiya, the judgment-debtor, transferred the 'Nohra' with the purpose of cheating his creditors, namely, the respondents, and fraudulently converted the 'Nohra' into money so as to render it incapable to satisfy the debts due to him.
Final Decision: The High Court dismissed the second appeal filed by the appellants, holding that the sale of the 'Nohra' was fraudulent and the appellants could not succeed in proving that their father Bhalle Chand was not a party to the design of Kojiya transferor & he did not share Kojiya's intention to defeat and delay His creditors Tej Raj and Babu Lal.
1. Whether the house under attachment was in possession of the plaintiffs and they were its owners?
2. Whether the sale of the house under attachment has been effected after the attachment and, as such, was inoperative and void?
3. Whether the sale of the house under attachment was fraudulent? If so. its effect?
4. What would be the relief? and recorded the evidence of the parties on them The learned Munsiff then considered the entire evidence oral as well as documentary on the record and decided issues Nos. 1 and 3 in favour of the respondents' Nos. 1 and 2 white issue No. 2 was decided by him against the plaintiff-appellants Accordingly, the learned Munsiff dismissed the suit of the appellants and Sardar Mal, proforma respondent, but left the parties to bear their own costs. Aggrieved by this judgment and decree, the appellants and Sardar Mal filed an appeal in the court of the Civil and Additional Sessions Judge, Jalore. The learned Civil Judge after hearing the parties, upheld the judgment and decree of the learned Munsiff and dismissed the appeal leaving the parties to bear their own costs throughout. As against the judgment and decree of the Civil Judge, the defeated claimants have come up to this Court in Secord. Appeal During the pendency of the appeal, Bhalle Chand died and his legal representatives Smt. Choga Bai, Okh Chand & Smt. Mohan Bai were brought on the record is appellants.