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1920 Supreme(Mad) 310

IN THE HIGH COURT OF MARAS
J Wallis, W Ayling, S Aiyar, Napier, Krishnan
E.M. Visvanadhan Chetti And Ors.
Versus
Arunachalam Chetti
Decided On : 6 October, 1920

The main legal principle established in the judgment is the duty of the attaching Court to provide for the realization of attached property and to distribute the proceeds rateably among decree holders entitled under Section 295, now 73, as well as the application of Section 73 to assets levied in execution or paid into Court in satisfaction of decrees under execution.

Headnote:

Attachment - Interpretation of Order XXI, Rule 52 of the Code of Civil Procedure - Section 295, now 73 - The judgment discusses the construction of Order XXI, Rule 52 of the Code of Civil Procedure and its application to rateable distribution among decree holders. It also highlights the duty of the attaching Court to provide for the realization of attached property and to distribute the proceeds rateably among decree holders entitled under Section 295, now 73. The court emphasizes that the custody Court is required to determine the priority of attachments and that Section 73 applies to assets levied in execution or paid into Court in satisfaction of decrees under execution.

Fact of the Case:

The judgment discusses the interpretation and application of Order XXI, Rule 52 of the Code of Civil Procedure, specifically focusing on the construction of the rule and its implications for rateable distribution among decree holders.

Finding of the Court:

The court found that the duty of the attaching Court includes providing for the realization of attached property and distributing the proceeds rateably among decree holders entitled under Section 295, now 73. It also concluded that Section 73 applies to assets levied in execution or paid into Court in satisfaction of decrees under execution.

Issues: The issues revolved around the interpretation and application of Order XXI, Rule 52 of the Code of Civil Procedure, the duty of the attaching Court, and the determination of priority of attachments.

Ratio Decidendi: The court's decision was based on the interpretation of Order XXI, Rule 52 and its application to rateable distribution among decree holders. It emphasized the duty of the attaching Court to provide for the realization of attached property and to distribute the proceeds rateably among decree holders entitled under Section 295, now 73. The court also highlighted that Section 73 applies to assets levied in execution or paid into Court in satisfaction of decrees under execution.

Final Decision: The court dismissed the appeal and upheld the duty of the attaching Court to provide for the realization of attached property and to distribute the proceeds rateably among decree holders entitled under Section 295, now 73.

JUDGMENT

John Wallis, C.J.

1. The answer to the referenda appears to depend on the construction of Order XXI, Rule 52 of the Code of Civil Procedure, which was first enacted as Section 237 of the Code of 1859, under which the first attaching, decree holder was entitled, as the first judgment-creditor suing out a writ of fi fa in England to have his claim satisfied in full out of the proceeds of execution, the surplus only being liable under the Codes to rateable distribution among subsequent attaching creditors. It was, however, retained as Section 272 of the later Cases under which, by virtue of Section 295, now 73, the attaching judgment-creditors were obliged to submit to rateable distribution with, but only with, other decree holders who had applied to the attaching Court for execution before the date specified in the portion. Now, it does not seem likely that the Legislature would have retained, and even ended the old session 217 by substituting the word "property" for money or any security", if it had considered that it would interfere with the due working of the procedure for rateable distribution introduced by Section 295, and would authorise the admission to rateable distribution of decree-holders who had not entitled themselves to rateable distribution under Section 295 by applying for execution to tie Court in which the first attaching decree holders decree was being executed, but had themselves subsequently to the first attachment, attached the property in the Court which had the custody of it, hereinafter sailed the custody Court. The procedure for rateable distribution under Section 295, now 73, applies to attached property in the custody of a Court just as much as to any other kind of attached property, and in my opinion precludes any rateable distribution on equitable grounds of property attached under Rule 52 among any other class of decree holders.

2. The section, which is now Rule 52, prescribes a form of attachment for property which is in the custody of a Court or any Public Officer" and under the attachment is to be held subject to the further orders" of the attaching Court, "Where the property attached is in the custody of a Public Officer, it is clearly the duty of the attaching Court to provide if necessary for the realization of the property and to divide the proceeds of the realization rateably between the attaching decree-holder and the other decree-holders who have applied to it for execution before it received Such proceeds in satisfaction of their decrees. If the attached property is money, it is now, in my opinion, the duty of the attaching Court, having regard to the provisions of station 295, to call on the Public Officer to pay it into Court and to deal with it in the same maner. When the property attached is in the custody of a Court it is equally to be held by the custody Court subject to the further orders of the attaching Court and subject, also to the proviso which has next to be examined which dose not, in my opinion, either relieve the attaching Court of the duty of getting in and distributing the money or proceeds of realization, if available, and distributing them among the decree-holders considered under Section 295, now 73, or authorise the custody Court to embark on another sort of rateable distribution among another class of decree-holders. The proviso only says that any question of title or priority arising between the decree holders" (meaning the decree holder who had made the attachment) and any other person not being the judgment-debtor claiming to be interested in such property by, virtue of any assignment, attachment or otherwise, shall be determined by such Court," the custody Court. This will include claims questioning, the title of the judgment-debtor and other cases, but, taking the present case of the property in the custody Court being made the subject of several attachment in execution of several decrees, the custody Court is then, in my opinion, required by the proviso


















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