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.”
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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