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1992 Supreme(HP) 100

High Court Of Himachal Pradesh
DEVINDER GUPTA
VINOD KANT GAUTAM - Appellant
Versus
STATE BANK OF INDIA - Respondent
Civil Revision No. 143 of 1992
Decided On : 10/28/1992

Advocates Appeared:
For the appellant(s)/petitioner(s):Mr. Kuldip Singh, Advocate, For the respondent(s):Mr. K. D. Sood, Advocate.

A court has the discretion to order the attachment and sale of property in execution of a decree, but this discretion must be exercised judiciously and in accordance with the relevant provisions of law.

Headnote:

EXECUTION OF DECREE - ATTACHMENT AND SALE OF PROPERTY - COURT'S DISCRETION - LIMITATIONS - CODE OF CIVIL PROCEDURE, ORDER 21, RULES 21, 30, 64, 66 - HIGH COURT RULES AND ORDERS, CHAPTER 12-L, CLAUSES 2, 4.

Fact of the Case:

The judgment debtors challenged two orders passed by the Senior Sub Judge, Sirmur at Nahan in an execution petition. The first order directed the attachment of both movable and immovable property of the judgment debtors, and the second order directed the sale of the attached property.

Finding of the Court:

The court held that the trial court failed to consider the relevant provisions of the Code of Civil Procedure and the High Court Rules and Orders while passing the impugned orders. The court found that the trial court did not apply its mind to the facts of the case, did not afford an opportunity to the judgment debtors to be heard, and did not draw a proclamation as required by law.

Issues: 1. Whether the trial court erred in ordering the attachment of both movable and immovable property of the judgment debtors without considering the relevant provisions of law? 2. Whether the trial court erred in ordering the sale of the attached property without following the mandatory procedure prescribed by law?

Ratio Decidendi: 1. The court held that the trial court erred in ordering the attachment of both movable and immovable property of the judgment debtors without considering the relevant provisions of law. The court noted that Order 21, Rule 21 of the Code of Civil Procedure empowers the court to refuse execution at the same time against the person and property of the judgment debtor. The court also noted that Order 21, Rule 64 of the Code of Civil Procedure empowers the court to order the sale of the attached property, but only to the extent necessary to satisfy the decree. 2. The court held that the trial court erred in ordering the sale of the attached property without following the mandatory procedure prescribed by law. The court noted that Order 21, Rule 66 of the Code of Civil Procedure requires the court to draw a proclamation of sale, which must specify the time and place of sale, the property to be sold, the revenue assessed upon the property, any incumbrances to which the property is liable, the amount for the recovery of which the sale is ordered, and any other material information for a purchaser to know. The court also noted that the High Court Rules and Orders, Chapter 12-L, Clauses 2 and 4, provide specific instructions for the preparation of the proclamation of sale.

Final Decision: The court allowed the revision petition and set aside the order of the trial court directing the sale of the attached property. The court directed the trial court to proceed in accordance with law after ascertaining the exact amount due and payable by the judgment debtors to the decree holder and to find out if it is necessary to order the sale of the property. If so, to what extent and then to act in accordance with law.

JUDGMENT

Devinder Gupta, J.—Two orders of Senior Sub Judge, Sirmur at Nahan passed in an execution petition on 26th May, 1992 and 17th June, 1992 are under challenge in this civil revision.

2. The respondent-bank was granted decree on 15th January, 1987 for recovery of Rs. 34,202.56 paise on account of principal and interest alongwith costs and future interest at the agreed rate. The decretal amount was allowed to be paid by instalments of Rs. 850 per month. On failure to pay any instalment on due date, the judgment-debtor was held entitled to execute the decree,

3. On 30th January, 1992, the decree holder took out execution proceedings stating that Rs 90,784 had become due inclusive of interest and costs, which the judgment-debtors had failed to pay. Notice of execution was directed to be issued to judgment-debtors, who put in appearance and the execution was thereafter kept for conciliation. On 26th May, 1992. when conciliation could not be effected, the Court directed warrant of attachment to be issued against the moveable and immoveable property of the judgment debtors. The order reads as under:— "Conciliation not effected. Warrant of attachment of immoveable and moveable property be issued on filing of process fee and list of property returnable by 17-6-1992."

4. On the date fixed, namely, 17th June, 1992, for which date the warrants were made returnable, the Court passed the following order :— "Warrant of attachment received duly executed- Now warrant of sale of property attached be issued in the name of Collector, Nahan for actual sale on spot by 26-7-1992; Sale be proclaimed on 26-6-1992 and report be called by 29-7-1992."

5. Both the aforementioned orders are under challenge. At the time of hearing, learned Counsel for the decree-holder/respondents stated that as per instructions received by him from the bank, Rs 30,000 has since been received from the judgment-debtors. The challenge by the judgment-debtors is against the order of attachment of their entire property as also for sale of immoveable property, which according to them is contrary to law.

6. Counsel for the parties stated that the revision petition may be finally disposed of. 1 have heard them and gone through the various orders passed in the case, copies of which have been produced on record.

7. The Court while making the order as regards the attachment of moveable and immoveable property of the judgment-debtors and sale of immoveable property on the face of it did not take into consideration the salutary provisions of law and various pronouncements in this regard of the Apex Court and of this Court.

8. From the order dated 17th June, 1992, it cannot be ascertain as to whether the sale warrant has been directed to be issued against both the moveable and immoveable property or against the immoveable property alone However, since the sale warrant has been directed to be issued through the Collector, it is presumed that it must be pertaining to the immoveable property of the judgment-debtors.

9. The Code of Civil Procedure (hereinafter referred to as the Code)’ prescribes various modes available to the executing Court while executing a decree. One of the modes is attachment and sale or by sale without attachment of any property Every mode is subject to such conditions and limitations as may be prescribed One of the other mode is by executing the decree against the person by arrest and detention in civil prison. Order 21, Rule 21 of the Code empowers the Court in its discretion to refuse execution at the same time against the person and property of judgment-debtor. In a money decree, decree can be executed by virtue of Order 21, Rule 30 by the detention in civil prison of the judgment-debtor or by attachment and sale of the property or by both modes There is nothing in the Code or any other law, which lays down positively that several applications for execution of a decree cannot be filed simultaneously or several modes cannot be adopted simultaneously for executing th












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