IN THE HIGH COURT OF MADRAS, (MADURAI BENCH)
B. PUGALENDHI, J.
Ganapathiammal and Anr. - Petitioners
Versus
Kanagalakshmi - Respondent
CRP(MD)No.2088 of 2022
Decided On : 20-02-2023
Attachment - Recovery of Money - Order 38 Rule 5 CPC - [Order 38 Rule 5 CPC] - The court allowed the revision petition and remanded the case back to the trial court to decide the interlocutory application afresh, emphasizing the essential requirements for attachment before passing of judgment under Order 38 Rule 5 CPC.
Fact of the Case:
The plaintiffs filed a suit for recovery of money based on a promissory note. They also filed an interlocutory application under Order 38 Rule 5 and Section 151 of the Code of Civil Procedure for directing the respondent to furnish security, which was dismissed by the trial court. The plaintiffs sought attachment of the respondent's property as the respondent's husband had passed away before repaying the loan.
Finding of the Court:
The court found that the plaintiffs failed to prove their capacity to lend the money and did not provide sufficient evidence for attachment. It also noted that the truth of the allegations could only be ascertained during the trial.
Issues: Capacity to lend money, sufficiency of evidence for attachment, truth of allegations
Ratio Decidendi: The essential requirements for attachment before passing of judgment under Order 38 Rule 5 CPC must be proved to the satisfaction of the court. Vague and general allegations without supporting particulars are not sufficient compliance with the rule.
Final Decision: The revision petition was allowed, and the case was remanded back to the trial court to decide the interlocutory application afresh.
ORDER :
(Prayer : Civil Revision Petition is filed under Article 227 of the Constitution of India, to allow this civil revision petition by setting aside the fair and decreetal order made in IA.No.02 of 2022 in OS.No.16 of 2022 dated 18.08.2022 on the file of the II Additional District Court, Thoothukudi.)
This civil revision petition is filed as against the fair and decreetal order made in IA.No.02 of 2022 in OS.No.16 of 2022 dated 18.08.2022 on the file of the II Additional District Court, Thoothukudi.
2. The Revision Petitioners before this Court are the plaintiffs in the O.S.No.16 of 2022 before the II Additional District Court, Thoothukudi, which was filed for the relief of recovery of money. The petitioners also filed an interlocutory application in I.A.No.2 of 2022 under Order 38 Rule 5 and Section 151 of the Code of Civil Procedure, for directing the respondent to furnish security, in default, to attach the property before passing of the judgment. However the trial court dismissed the said interlocutory application. Aggrieved over the same, the plaintiffs have filed the present revision.
3. The petitioners filed the suit in OS.No.16 of 2022 for recovery of Rs.26,00,000/- with 12% interest per annum on the basis of a promissory note dated 17.02.2020. The case of the petitioners is that the respondent’s husband availed a loan of Rs.26,00,000/- from the petitioners at 1% interest on 17.12.2020 and for security, he executed a promissory note on the same date. The respondent produced two cheques dated 20.03.2021 for Rs.26,00,000/- and Rs. 1,00,000/-. But before the encashment of the cheques, the respondent’s husband passed away on 18.05.2021. When the petitioners demanded repayment of the loan, the respondent denied the loan availed from the petitioners. Hence the petitioners filed the above suit. The petitioners also filed an application in IA.No.2 of 2022 under Order 38 Rule 5 of CPC for a direction to the respondent to furnish security and if not, to attach the property, since the respondent was attempting to alienate the properties of her husband in favour her benami. The respondent denied the loan availed by her husband that her husband and stated that had intimacy with the first petitioner’s daughter, who stole the cheques and promissory notes to misuse the same.
4. The interlocutory application in IA.No.2 of 2022 was dismissed by the trial court on the ground that the petitioners failed to prove their capacity to lend a huge sum of Rs. 26,00,000/- to the respondent’s husband and the petitioners failed to prove by producing any other documents for having lent the money to the respondent.
5. This court considered the rival submissions and perused the materials placed on the record.
6. In this case, the petitioners produced two sale deeds before this court, executed by the respondent on 27.01.2022. However the petitioners have not taken any initiatives to collect these documents at the relevant period, when the said interlocutory application was pending. Moreover these documents were also not filed along with the revision petition. The trial Court cannot pass an order of attachment on the vague allegations made by the petitioners without any materials and therefore, the trial Court cannot be found fault in dismissing the application.
7. The respondent had denied the loan and made an allegation against the husband that he had an illegal intimacy with the first petitioner’s daughter and she has stolen the cheques and promissiory note, which are misused against her and her husband. The truth or otherwise of the allegations can be ascertained only during the trial. The fact remains that the suit is filed based on a promissory note by the respondent’s husband and he also issued two cheques dated 20.03.2021 in favour of the plaintiffs/petitioners. The respondent’s husband is no more and hence the suit is filed against the respondent.
8. This Court in Renox Commercials Ltd. v. Inventa Technologies Pvt. Ltd., reported in AIR 2000 Mad pa
The essential requirements for attachment before passing of judgment under Order 38 Rule 5 CPC must be proved to the satisfaction of the court.
The maintainability of a Civil Revision Petition against the dismissal of an application under Order 38 Rule 5 of CPC and the importance of providing proof of ownership in attachment before judgment ....
The Court's decision emphasized the principle that in an application for attachment before judgment, the Court needs to form a prima facie opinion to secure the plaintiff's interest, and the defendan....
The specificity of the security amount and the pending nature of the suit are crucial factors in determining the validity of prescriptive attachment for non-furnishing of security in a recovery of mo....
Failure to comply with the order to furnish security under Order XXXVIII of the Civil Procedure Code may justify the attachment of properties.
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