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2025 Supreme(Online)(Kar) 16467

KARNATAKA HIGH COURT
M.NAGAPRASANNA, J
M/S. NAKODA CREATION HAVING ITS OFFICE AT JALARAM MARKET, 3RD FLOOR D.K.LANE, CHICKPET BENGALURU - 560 053 MR. MAHAVEER RATANCHAND JAIN PRESENT PROPRIETRIX SANTHOSH R.PUNMIYA PROPRIETORSHIP CONCERNED – Appellant
Versus
M/S. VEER TEXTILES BY ITS PROPRIETOR SANJAY D.GALA AGED ABOUT 44 YEARS OCC: BUSINESS NO.528, CHANDRA CHOWK 5TH LANE, M.J.MARKET, KALBADEVI MUMBAI - 400 002 PROPRIETORSHIP CONCERNED – Respondent
WRIT PETITION NO. 24578 OF 2023



Advocates:
For the Appellants/Petitioners: SRI B.SHARATH KUMAR
For the Respondents: SRI AJAY R. A.

The court reinforced the necessity of due process in execution proceedings, stipulating that an initial decision for enquiry should be honored to ensure justice.

Headnote:(A) Constitution of India - Article 227 - Writ petition against the order rejecting application to lead evidence in execution proceedings - Petitioner asserts prior payments disputing debt liability - The concerned court initially deemed an enquiry necessary which was not concluded - It leads to an order quashing the objection and restoring the application for consideration. (Paras 3, 8, and 9)

(B) Civil Procedure Code - Section 47 - Provisions regarding questions of discharge in execution proceedings - The court emphasized that the enquiry needs to be conducted as per the established proceedings ensuring justice is served, reiterating the obligation to follow legal protocols in execution matters. (Paras 8)

Facts of the case:
The petitioner is a judgment debtor in a money recovery suit decided ex parte against him, now appealing for an opportunity to present evidence concerning payments alleged to have been made and to challenge the legitimacy of the execution proceedings initiated against him.

Findings of Court:
The Court ruled that the execution process was improperly handled as the initial directives for an enquiry were neglected, thus the case should be restored and further proceedings carried out.

Issues: The primary issues addressed were the legitimacy of the execution process and the need to conduct an enquiry regarding prior payments claimed.

Ratio Decidendi: The court found that failing to conduct an enquiry after initial acknowledgment of evidence requests undermined the judicial process and resolved to restore the application for due process.

Result: The writ petition is allowed, and the matter is restored for further proceedings.

Table of Content
1. arguments presented by both parties regarding the execution proceedings. (Para 2 , 6)
2. facts regarding the execution petition and objections are established. (Para 4 , 5)
3. the court identifies the need for an enquiry into the debt discharge claims. (Para 7)
4. the necessity for a conclusive enquiry is highlighted. (Para 8)

ORAL ORDER

The petitioner – defendant – judgment debtor is before this Court calling in question an order dated 13.10.2023, passed in Ex.P.No.1274/2022, by the XLIV Additional City Civil and Sessions Judge, Bengaluru, insofar as it rejects the application - I.A.No.2, filed under Sections 47 (1) r/w. 151 of the CPC, seeking permission to lead evidence and seeks issuance of an arrest warrant.

2. Heard Sri B. Sharath Kumar, learned counsel for petitioner and Sri Ajay R.A., learned counsel for respondent.

3. Facts in brief, germane, are as follows:

The petitioner is the judgment debtor. A suit in O.S.No.489/2018 is filed by the respondent - plaintiff respondent against the petitioner – defendant for recovery of money of an amount before the jurisdictional Court at Mumbai. The suit comes to be decreed exparte against the petitioner. The plaintiff – decree holder then files an execution petition before the concerned Court at Bengaluru, at the petitioner’s place of business in Ex.P.No.1274/2022. In the proceedings before the concerned Court, an application is filed by the petitioner in I.A.No.1 under Order XXXIII Rule 1 of the CPC seeking permission to produce certain documents, on 27.01.2023. The reason for production of the documents is that, he has already made substantial payments which is not adjusted. The decree holder – respondent files his objections to I.A.No.1. The concerned Court then directs filing of a memo of calculation. An application – I.A.No.2 is then filed under Section 47 (1) of the CPC, by the petitioner – judgment debtor to determine the question of discharge from the debt as some amounts had already been paid. The respondent files his objections. The concerned Court then deems it appropriate to conduct an enquiry of I.A.No.2. Thus, posts the matter for an enquiry on I.A.No.2 filed by the petitioner – judgment debtor. The concerned Court rejects the application so filed by the petitioner on 13.10.2023. It is therefore, the petitioner is before this Court in the subject petition.

4. Learned counsel for petitioner would reiterate the contentions advanced in I.A.No.2 so filed before the concerned Court as the decree itself was passed exparte. He would submit that the petitioner should have liberty to produce what is contended in I.A.No.2. He would submit that the concerned Court initially directed an enquiry to be conducted, notwithstanding the same, the impugned order is passed rejecting the application. It is his contention that the execution petition is filed in the name of a wrong person as the firm is owned by a particular person and not the one that is shown as the judgment debtor. He would thus require one opportunity before the concerned Court to demonstrate several contentions which could not be done in the suit.

5. Per contra, learned counsel appearing for the respondent – decree holder submits that it is only a ruse to get over the execution proceedings and that the petitioner - judgment debtor is now trying to shift his burden of liability on a third party, depicting that a wrong person is impleaded as the judgment debtor.

6. I have given my anxious consideration to the submissions made by the learned counsel for the respective parties and have perused the material on record.

7. The afore-narrated facts are not in dispute. On the application filed by the petitioner certain orders are passed by the concerned Court. The order so passed are as follows:

“Advocate for DHR present and he submits this EP petition filed based on summery suit no.489/2018 passed by the Bombay City Civil Court at Mumbai on 26.06.2019 against the JDR and same was transferred from the Bombay city ci

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