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2022 Supreme(Mad) 561

IN THE HIGH COURT OF JUDICATURE AT MADRAS
P.T. ASHA, J.
Kalyani & Another – Appellants
Versus
Sekar & Others – Respondents
C.M.S.A. No. 2 of 2005 & C.M.P.No.1662 of 2005
Decided on : 05-07-2022

Advocate Appeared:
For the Appellant :Shanmuga Sundaran, Senthilnathan, Advocates.
For the Respondents:V. Lakshminarayanan, Advocate.

The main legal point established in the judgment is that the provisions of Order 21 Rule 58(2) of the Civil Procedure Code must be complied with in its letter and spirit, and the Court cannot relegate the parties to file a separate suit when adjudicating claims to or objections to attachment of property.

Headnote:

Order 21 Rule 58 - Adjudication of claims to or objections to attachment of property - Order 21 Rule 58

Fact of the Case:

The appellants challenged the dismissal of their petition filed under Order 21 Rule 58 of the CPC, claiming a share in a property attached for auction to recover a debt owed by the 1st respondent. The lower courts dismissed the claim, stating that an application under Order 21 Rule 58 was not the appropriate remedy.

Finding of the Court:

The Court found that the lower courts failed to consider the provisions of Order 21 Rule 58(2) of the Civil Procedure Code, which stipulates that the Court cannot relegate the parties to file a separate suit. The Court held that the matter should be remanded back for fresh consideration, allowing both parties to present fresh evidence and raise all objections available to them under the provisions of Order 21 Rule 58.

Issues: The main issue was whether the appellants' claim under Order 21 Rule 58 was appropriately dismissed by the lower courts.

Ratio Decidendi: The Court held that the lower courts failed to comply with the provisions of Order 21 Rule 58(2) in their decision, and therefore, the matter should be remitted back for fresh consideration.

Final Decision: The appeal was allowed, and the matter was remitted back to the Principal District Munsif for fresh consideration. Both parties were permitted to present fresh evidence and raise all objections available to them under the provisions of Order 21 Rule 58. No costs were awarded, and the connected Miscellaneous Petition was closed.

JUDGMENT :

(Prayer: Appeal filed under Order 41 Rule 1 and Section 96 of CPC, against the judgment and decree dated 30.09.2004 made in CMANo.6 of 2004 passed by the Principal Subordinate Judge, Villupuram confirming the Judgment and Decree dated 28.08.2003 made in E.A.No.463 of 2003 in E.P.No.75 of 2002 in O.S.No.46 of 2001 on the file of the Principal District Munsif, Thirukoilur, Villupuram District.)

The 3rd party claimants are the appellants before this Court, challenging the dismissal of their petition filed invoking the provisions of Order 21 Rule 58 of the CPC. The brief facts of the case are as follows:-

2. The 1st respondent herein had borrowed a sum of Rs.25,500/- from the 2nd respondent on 10.01.1999, since the amounts were not repaid the 2nd respondent had initiated a suit for recovery of money against the 1st respondent in O.S.No.46 of 2001 on the file of the Principal District Munsif, Thirukoilur. The suit was decreed on 26.08.2001 for a sum of Rs.26,700/- with interest at 9% on Rs.22,500/-. Thereafter on 11.02.2002 the 2nd respondent had filed E.P.No.75 of 2002 for attaching the property belonging to the Judgment debtor and to bring it for sale. On 09.04.2002 the petition mentioned property was attached. The properties were brought to sale and on 28.08.2003 the decree holder had participated in the bid and purchased the property in auction. A day prior to that the claimants had filed E.A.No.463/2003 invoking the provisions of Order 21 Rule 58 stating that the property in question was a joint family property in which the judgment debtor/1st respondent had only one share. The remaining share belong to the petitioners/ appellants herein. They would in their claim petition state that they became aware about the auction purchase only on 25.08.2003 and immediately steps have been taken to initiate the proceedings.

3. The 2nd respondent had filed a counter in which they had admitted that the property were ancestral property but they would contend that the money was borrowed by the 1st respondent only as a Karta of the family for meeting the family needs. The claim petition was ultimately dismissed by the Principal District Munsif, Thirukoilur by holding that an application under Order 21 Rule 58 was not the remedy envisaged. Challenging the same the appellants herein had filed CMA.No.6/2004 on the file of the Principal Subordinate Judge, Villupuram.

4. The learned Judge also concurred with the order of the Trial Court and held that no documents were provided to show that the property was being jointly enjoyed and also that the loan had been borrowed by the 1st respondent only as the Karta of the family. It is this order that is the subject matter of the challenge before this Court.

5. Mr.Senthilnathan, learned counsel appearing on behalf of the appellant would submit that both the Courts below have failed to consider the provisions of Order 21 Rule 58(2) of the Civil Procedure Code which stipulates that the Court cannot relegate the parties to file a separate suit but in the instant case, both the Courts below have shirked their responsibility of considering the issue.

6. The provisions of Order 21 Rule 58 is extracted herein below-

    58. Adjudication of claims to or objections to attachment of property.—(1) Where any claim is preferred to, or any objection is made to the attachment of, any property attached in execution of a decree on the ground that such property is not liable to such attachment, the Court shall proceed to adjudicate upon the claim or objection in accordance with the provisions herein contained : Provided that no such, claim or objection shall be entertained—

(a) where, before the claim is preferred or objection is made, the property attached has already been sold; or

(b) where the Court considers that the claim or objection was designedly or unnecessarily delayed.

(2) All questions (including questions relating to right, title or interest in the property attached) arising between the parties to a proceeding or t

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