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2018 Supreme(Online)(KER) 60101

IN THE HIGH COURT OF KERALA AT ERNAKULAM

PRESENT

THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE

THE HONOURABLE MR. JUSTICE P.B.SURESH KUMAR

and

THE HONOURABLE MR. JUSTICE P.SOMARAJAN

FRIDAY ,THE 07TH DAY OF DECEMBER 2018/16TH AGRAHAYANA, 1940

RFA (MISC.).No. 529 of 2015

AGAINST THE ORDER IN IA NO.838/2014 IN OS 28/2014 of SUB

COURT,NEYYATTINKARA DATED 09-06-2015

APPELLANT/PLAINTIFF/1ST RESPONDNET IN THE CLAIM PETITION:

M/S.VERIZON BUILDERS AND DEVELOPERS LTD.

NOW CHANGED TO M/S INCA DEVELOPERS LTD, NO.

VI/69, NEAR CARMEL GENERALATE, THAIKATUKARA

P.O., ALUVA, ERNAKULAM - 683 106, REP. BY ITS

MANAGING DIRECTOR DR. SANDEEP K.JOSE, S/O.

JOSEPH JOSE, KALATHIPARAMBIL HOUSE, D-5, INFRA

HILLOCK, BEHIND TOWN HALL, CHANGAMPUZHA NAGAR

P.O., ERNAKULAM - 682 033.

BY ADV. SRI.G.SREEKUMAR (CHELUR)

RESPONDENTS/3RD PARTY STRANGER AND THE DEFENDANT/CLAIM

PETITIONER AND 2ND RESPONDENT IN THE CLAIM PETITION:

1

JYOTHI SUSAN JOHN, AGED 31,

D/O. JACOB JOHN, RESIDING AT ELANJIKAL VEEDU,

PATTOM PALACE P.O., PATTOM VILLAGE,

THIRUVANANTHAPURAM - 695 001, NOW WORKING AS

MANAGER IN THE FEDERAL BANK LTD, ZONAL OFFICE,

MUMBAI - 410 001.

RFA (Misc) Nos.529 & 777/15

-:2:-

2

SREEKUMARAN NAIR,

AGED 30,

S/O. MADHAVAN PILLAI, MINI COTTAGE HOUSE,

SREEKARIYAM, PANGAPARA VILLAGE,

THIRUVANANTHAPURAM - 695 001.

BY ADVS.

R2 SMT.INDULEKHA JOSEPH

R1 SRI.LEGITH T.KOTTAKKAL

R2 SRI.NEERAJ NARAYAN

R1SRI.S.VINOD BHAT

THIS REGULAR FIRST APPEAL(MISCELLANEOUS) HAVING BEEN

FINALLY

HEARD

ON

10.10.2018,

ALONG

WITH

RFA

(MISC.).777/2015, THE COURT ON 7.12.2018 DELIVERED THE

FOLLOWING:

RFA (Misc) Nos.529 & 777/15

-:3:-

IN THE HIGH COURT OF KERALA AT ERNAKULAM

PRESENT

THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE

THE HONOURABLE MR. JUSTICE P.B.SURESH KUMAR

and

THE HONOURABLE MR. JUSTICE P.SOMARAJAN

FRIDAY ,THE 07TH DAY OF DECEMBER 2018 / 16TH AGRAHAYANA,

1940

RFA (MISC.).No. 777 of 2015

AGAINST THE ORDER IN IA NO.914/2014 IN OS 18/2014 of SUB

COURT,ALAPPUZHA DATED 1-08-2015

APPELLANT/PLAINTIFF:

KOSAMATTOM MKC FINANCIERS PVT. LTD

REPRESENTED BY ITS DIRECTOR- MATHEW.K.CHERIYAN,

AGED 55 YEARS, S/O.CHERIYAN KOSAMATTAM,

KOSAMATTAM HOUSE, MANGANOM P.O., KOTTAYAM.

BY ADVS.

SRI.R.RAMADAS

SRI.T.SIVADASAN

RESPONDENTS/DEFENDANTS AND PETITIONER IN IA 914/2014:

1

GURU DAYAL

AGED 49 YEARS

S/O.PALANIYAPPAN, GURU NIVAS, AMMANKOVIL

STREET, MULLACKAL P.O., ALAPPUZHA-688010.

2

SINDU GURUDAYAL

AGED 45 YEARS

W/O.GURUDAYAL, -DO- -DO-.

RFA (Misc) Nos.529 & 777/15

-:4:-

3

C.G.SASIKUMAR

AGED 50 YEARS

S/O.SUKUMARAN NAIR, RESIDING AT NAIVYAM FROM

JAYA NIVAS, KADAKKARAPPALLY P.O.,

KADAKKARAPPALLY MURI,KADAKKARAPPALLY VILLAGE,

CHERTHALA TALUK, PIN 688524.

BY ADVS.

R1-R2 SRI.GEORGE SEBASTIAN

R3 SRI.R.AZAD BABU

R1, R2 SRI.JAYAN.C.DAS

THIS REGULAR FIRST APPEAL(MISCELLANEOUS) HAVING BEEN

FINALLY

HEARD

ON

10.10.2018,

ALONG

WITH

RFA

(MISC.).529/2015, THE COURT ON 7.12.2018 DELIVERED THE

FOLLOWING:

RFA (Misc) Nos.529 & 777/15

-:5:-

“C.R.”

Advocates:
['SRI G SREEKUMAR CHELUR', 'INDULEKHA JOSEPH', '', 'SRI LEGITH T KOTTAKKAL', 'SRI NEERAJ NARAYAN', 'SRI S VINOD BHAT', 'SMT INDULEKHA JOSEPH']

Shaffique, J.

RFA No.529/2015 has been filed by the plaintiff in OS

No.28/2014 challenging an order passed in a claim petition filed

as IA 838/2014. The claim petition has been filed by the first

respondent herein under Order XXXVIII Rule 8 of the Code of Civil

Procedure (for short 'CPC'). The Court below allowed the said

application on a finding that the property under attachment was

transferred in the name of the claimant/1st respondent by a

registered sale deed dated 4/7/2014 prior to the order of

attachment. In fact the plaintiff contended that the transfer was

fraudulent and hit by S.53 of the Transfer of Property Act (for

short 'TP Act'). But placing reliance on the judgment in Rajan @

v. Rajan Gopinathan v. Dr.D.Jayashree Nayar and another

(2010 (1) KLT 142), it was held that adjudication of fraudulent

transfer can be made only during execution proceedings and

accordingly the claim petition was allowed vacating the order of

attachment.

2.

When the above matter came up for hearing before a

-:6:-

Division Bench of this Court, the matter was referred to a Full

Bench doubting the judgment in Rajan's case (supra) as per

reference order dated 21/6/2016. It was observed that O.XXXVIII

Rule 8 CPC is sufficient to adjudicate a claim in a property sought

to be attached before judgment.

3.

In RFA No. 777/2015 also, a similar question has arisen

for consideration. In that case also, the plaintiff had preferred the

appeal challenging order dated 1/8/2015 in IA 914/2014 in OS

No.18/2014 of the Sub Court, Alappuzha. IA No.914/2014 was

filed under Order XXXVIII Rule 8 for releasing the attachment.

The application is filed by the 3rd respondent herein inter alia

claiming right in respect of the property. It was contended that

the order of attachment was dated 9/4/2014 and it was made

absolute on 23/5/2014. The property was purchased by the

petitioner/3rd respondent as per document No.2736/12 for valid

consideration and that he is in possession of the property. Court

below having referred to the judgment in Rajan's case (supra)

observed that in so far as the claim petitioner had purchased the

property prior to the date of attachment, the plaintiff's contention

regarding fraudulent transfer of the property u/s 53 of the TP Act

-:7:-

need not be considered at the original side and accordingly the

application was allowed and the attachment was vacated. When

the above matter came up for hearing before the Division Bench,

doubting the judgment in Rajan's case (supra), the matter was

referred to be considered by a Larger Bench.

4.

In the light of the aforesaid two reference orders, these

two cases had been placed before us.

5.

The counsel for the 1st respondent in RFA No.529/2015

has filed IA No. 1091/2018 seeking for dismissal of the appeal on

the ground that decree has been passed in OS No.28/2014. We

do not think that such an application can be entertained as a

question of law involving divergent views had been referred to

this Court, which requires to be answered. If the attachment of

property can be sustained, there is no necessity for a further

attachment if a decree is passed in favour of the plaintiff.

6.

First let us examine the manner in which Rajan's

case (supra) has been decided. It was held that in so far as the

purpose of attachment before judgment is distinct and different

from attachment in execution, the attachment before judgment

would cease when the suit is dismissed on merits or if it is

-:8:-

dismissed for default. The attachment before judgment will not

revive on setting aside the order of dismissal of the suit for

default and on restoration of the suit. It is observed that O.XXI

R.58 (2) provides for determination of all questions including

question relating to right, title or interest in the property

attached, arising between the parties or their representatives and

it is further qualified by the expression “relevant to the

adjudication of the claim or objection”. Paragraphs

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