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2014 Supreme(Mad) 3859

High Court of Judicature at Madras
K. KALYANASUNDARAM, J.
V. Nagarajan
Versus
K.P. Vebnkatesan
C.R.P. (NPD) No. 2981 of 2014 & C.M.P. No. 1 of 2014
Decided on: 28-10-2014

Advocates Appeared:
For the Petitioner:K.K. Sivashanmugam, Advocate.

Any alienation, transfer, encumbrance made after attachment is void as per Section 64 CPC.

Headnote:

Attachment and Sale of Property - Validity of Attachment and Sale - The court held that any alienation, transfer, encumbrance made after attachment is void as per Section 64 CPC. The respondent need not seek invalidation of the sale made by the judgment debtor after attachment, as in the eye of law the sale is void.

Fact of the Case:

The respondent filed a suit for recovery of money, and the properties of the petitioner/defendant were attached pending suit. The petitioner contested the suit, and the suit was decreed. The respondent filed an execution petition to realize the decree amount by way of attachment and sale of the properties of the petitioner/judgment debtor. The Executing Court permitted the decree holder to proceed against item No.3 of the petition property.

Finding of the Court:

The court found that the petitioner's objections regarding the validity of the attachment and sale were rejected by the Executing Court, and there was no illegality or irregularity in the order under challenge. The civil revision petition was dismissed.

Issues: Validity of attachment and sale of property, petitioner's objections, and the legality of the order under challenge.

Ratio Decidendi: The court held that any alienation, transfer, encumbrance made after attachment is void as per Section 64 CPC. The respondent need not seek invalidation of the sale made by the judgment debtor after attachment, as in the eye of law the sale is void.

Final Decision: The civil revision petition was dismissed, and no costs were awarded. The connected miscellaneous petition was also dismissed.

Judgment

1. Challenging the order passed by the II Additional Subordinate Judge, Coimbatore, in E.P.No.96 of 2011 in E.P.R.No.1 of 2011 in O.S.No.255 of 2006, dated 31.01.2014, the present revision petition is filed.

2. The petitioner is the defendant in O.S.No.255 of 2006. The respondent filed the suit for recovery of money. After contest the suit was decreed on 28.4.2008. The respondent filed an execution petition to realize the decree amount by way of attachment and sale of the properties of the petitioner/judgment debtor. The Executing Court, vide impugned order permitted the decree holder to proceed against item No.3 of the petition property. Challenging the order, the present revision is filed.

3. Heard Mr. K.K. Shivashanmugam, learned counsel for the petitioner and perused the records.

4. Learned counsel for the petitioner submitted that the properties of the petitioner were attached pending suit, but there was no proper proclamation and therefore, the attachment is not valid in the eye of law; that the petitioner had already sold all the three items of the petition properties and the sale can be invalidated only under Section 64 CPC and not under Order 21 Rule 54 of CPC; that the sale of item No.3 of the petition property in the year 2011 was intimated to the Executing Court, but without impleading the subsequent purchaser, the impugned order was passed. Hence it is liable to be set aside.

5. It is not in dispute that the respondent had filed O.S.No.255 of 2006 for recovery of money and three items of the properties of the petitioner/defendant were attached by the trial Court pending suit, under Order 38 Rule 5 of CPC. It is seen from the records that item Nos.1 and 2 of the petition properties were sold even before the attachment and the petitioner had sold the third item after the order of attachment.

6. A plain reading of Section 64 CPC would show that any alienation, transfer, encumbrance made after attachment is void. The respondent has filed the execution petition for attachment and sale of the properties of the judgment debtor under Order 21 Rule 54 CPC. The respondent need not seek invalidation of the sale made by the judgment debtor after attachment, as in the eye of law the sale is void.

7. The petitioner has not questioned the validity of the attachment order before the Executing Court, but the said point is raised before this Court for the first time. It is a disputed question of fact, which cannot be entertained by this Court. The Executing Court has considered the case of the petitioner and rightly rejected his objections and ordered attachment of third item of the petition property. I do not find any illegality or irregularity in the order under challenge.

8. In the result, the civil revision petition is dismissed. No costs. Consequently, connected miscellaneous petition is dismissed.

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