MADRAS HIGH COURT
RAMACHANDRA IYER
N.Krishnaswamy Iyengar
Versus
N. Vedavalli Ammal and others
Civil Revn. Petn. No. 1151 of 1957
Decided On : 28February, 1958
EXECUTION OF DECREE - RATABLE DISTRIBUTION - ATTACHMENT - DISMISSAL OF EXECUTION PETITION - EFFECT - O. 21, R. 57, C.P.C. - DISMISSAL FOR DEFAULT - ATTACHMENT TO CONTINUE - WHETHER EXECUTION PETITION DEEMED TO BE PENDING.
Fact of the Case:
The petitioner, a decree-holder, filed an execution petition (E.P. No. 661 of 1955) to attach the equity of redemption in certain properties belonging to the judgment debtors. The attachment was ordered on 23-10-1955. In the meantime, the mortgagee in respect of those properties filed a suit, obtained a decree, and brought the properties to sale. The properties were sold in execution of the mortgage decree, and after satisfying the claim of the mortgagee decree-holder, there was a surplus amount of Rs. 2343-5-6 deposited into court. Various creditors of the judgment debtor applied for execution against her before the properties were sold under the mortgage decree. The petitioner's application E.P. No. 661 of 1955 came up for orders on 5-12-1955 when it was dismissed as not pressed. However, the learned Judge directed that the attachment should continue for six months.
Finding of the Court:
The court held that the execution petition (E.P. No. 661 of 1955) was not dismissed for default and should be deemed to be pending on the material date when the assets were received by the court. Therefore, the petitioner was entitled to a share in the rateable distribution of the assets received by the court along with the other decree-holders.
Issues: 1. Whether the execution petition (E.P. No. 661 of 1955) was dismissed for default? 2. Whether the petitioner was entitled to a share in the rateable distribution of the assets received by the court?
Ratio Decidendi: 1. The court held that the mere use of words "closed, dismissed, or struck off" does not indicate default on the part of the decree-holder and that question has to be determined only on the facts and circumstances of each case. 2. The court held that the fact that in the present case the attachment was ordered to continue would show that E.P. No. 661 of 1955 was not dismissed for default.
Final Decision: The court allowed the civil revision petition and remanded E.P. No. 1151 of 1956 to the lower court for passing orders as to rateable distribution in the light of the findings given above, namely, that the petitioner is also entitled to his legitimate share in the rateable distribution of the assets along with the other decree-holders.
ORDER :- The plaintiff in O.S. No. 2042 of 1954 on the file of the City Civil Court, Madras is the petitioner. This civil revision petition arises out of an order for rateable distribution, passed amongst the various decreeholders who had obtained decrees against one Vedavalli Ammal.
The petitioner has impleaded the judgment debtors as well as the rival decree-holders in this petition. The plaintiff had obtained a decree in O.S. No. 2042 of 1954 on the basis of a promissory note executed by Vedavalli Ammal in renewal of earlier debts incurred in connection with the marriage of her daughter, Rukmani. To that suit Vedavalli and her four daughters were made parties.
In due course the plaintiff obtained a money decree and in execution of that decree he filed K.P. No. 661 of 1955 on 4-10-1955 for attaching the equity of redemption in certain properties which belonged to the judgment debtors, Attachment was ordered on 23-10-55. In the meantime the mortgagee in respect of those properties filed O.S. No. 1699 of 1954, obtained a decree and brought the properties to sale. Vedavalli Ammal and her daughters were made party defendants to this suit.
The properties were sold in execution of the mortgage decree and after satisfying the claim of the mortgagee decree-holder there was a surplus amount of Rs. 2343-5-6 deposited into court. Various creditors of Vadavalli Ammal applied for execution against her before the properties were sold under the mortgage decree in O.S. No. 1699 of 1954. The present petitioners application E.P. No. 661 of 1955 came up for orders on 5-12-1955 when it was dismissed as not pressed.
But the learned Judge directed that attachment should continue for six months. The petitioner then filed E.P. No. 1151 of 1956 on 31-10-1956 to attach the surplus amount in court deposit but as that application was filed after the receipt of the assets by the court it cannot avail the petitioner to a claim in the rateable distribution of the surplus amount.
The petitioner, therefore, relied upon E.P. No. 661 of 1955 which he claimed as pending all along as it was not dismissed for any default on the part of the decree-holder. The learned Assistant Judge cum Registrar, City Civil Court, rejected the claim of the petitioner on the ground that E.P. No. 661 of 1955 was dismissed prior to the receipt of the assets by court and that, therefore, the petitioner cannot claim any share in the distribution of the assets. The petitioner has preferred the present civil revision petition against the order of the learned Assistant Judge, City Civil Court.
2. A preliminary objection was taken on behalf of the respondents that when the petitioner has got an alternative remedy by way of suit this court should not interfere in revision. I overruled this objection having regard to the fact that it would involve great hardship on the petitioner if he were directed to file a suit to decide the simple matter in dispute.
3. Mr. A. Narasimhachariar learned counsel for the petitioner contended that E.P. No. 6611 of 1955 should be deemed to be pending and that, therefore, the petitioner was entitled to claim a share in the distribution of the assets of the judgment debtors. He also submitted that the decree in favour of the petitioner was on the basis of a debt binding on the estate of Vedavalli Animals husband, that the decrees obtained by the other creditors of Vedavalli Ammal would not at all be binding on the estate and that therefore the petitioner was entitled to a preferential claim.
4. As regards the first contention raised by the learned counsel I sent for the original petition, E.P. No. 661 of 1955. The order on it passed on 5-12-1955 reads thus : "E.P. dismissed as not pressed. Attachment to continue for six months from today."The argument on the side of the respondents is that the execution petition of the petitioner having been dismissed as not pressed should be taken as dismissal of the petition for default and therefore it could not be consider
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