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citation codes
Case Number
Attorney(S)
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Acts
  • sub-section (1) of Section 60 of the Code. According to sub-section (1)
  • Section 14(1)(b) of the Delhi Rent Control Act, 1958.4.
  • money.3. Section 60(1) of the Code of Civil Procedure
  • Section 14(1)(b) of the Delhi Rent Control Act
  • section 60(1) of the Code of Civil Procedure
  • DELHI RENT CONTROL ACT 1958
  • Section 60(1) of the Code
  • Section 14(1) of this Act,
  • Rent Control Act
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Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • sub-section (1) of Section 60 of the Code. According to sub-section (1)
  • Section 14(1)(b) of the Delhi Rent Control Act, 1958.4.
  • money.3. Section 60(1) of the Code of Civil Procedure
  • Section 14(1)(b) of the Delhi Rent Control Act
  • section 60(1) of the Code of Civil Procedure
  • DELHI RENT CONTROL ACT 1958
  • Section 60(1) of the Code
  • Section 14(1) of this Act,
  • Rent Control Act
Smart Summary

Factual and Procedural Background

M/s. Belrex India Ltd., Calcutta obtained a decree for recovery of Rs. 1,83,641.48 plus interest and costs against Singhal Electric Company and its partners. The judgment debtors conducted business in a shop located at 1868, Mahalaxmi Market, Bhagirath Palace, Chandni Chowk, Delhi. The goods in the shop were attached by actual seizure and a local commissioner secured the shop with his own lock and seal. Subsequently, the attached goods were removed, leaving the shop vacant. The decree-holder stated that the shop was the only known asset of the judgment debtors and that the debtors lacked funds to run the business. The decree-holder expressed willingness to take possession of the shop to operate a showroom-cum-retail sale depot, offering to pay Rs. 2000 per month for use and occupation, to be adjusted against the decree amount. The decree-holder prayed for possession of the vacant shop and fixation of the amount for use and occupation to be adjusted towards the judgment debt.

The judgment debtors contended that the shop was a tenanted premise and that tenancy rights were not transferable or attachable. They argued they had no saleable interest or right to transfer these tenancy rights and thus the shop could not be attached or sold in execution of the decree.

Legal Issues Presented

  1. Whether the tenancy rights in the shop at 1868, Bhagirath Palace, Delhi, are attachable or saleable in execution of a decree for recovery of money.
  2. Whether possession of the shop can be handed over to the decree-holder despite the tenancy rights governed by the Delhi Rent Control Act, 1958.

Arguments of the Parties

Decree-holder's Arguments

  • The shop is the only known asset of the judgment debtors.
  • The judgment debtors have no funds to run the business, making restoration of possession futile.
  • The decree-holder is willing to take possession and run a showroom-cum-retail sale depot.
  • Proposed to pay Rs. 2000 per month for use and occupation, adjustable against the decree amount.
  • Argued that the shop, being a non-residential building governed by the Rent Control Act, is not exempt under clause (kc) of Section 60(1) of the Code of Civil Procedure and is thus attachable.

Judgment Debtors' Arguments

  • The shop is a tenanted premise governed by tenancy rights.
  • Tenancy rights are not transferable or attachable under law.
  • They have no saleable interest or disposing power over the tenancy rights.
  • The shop cannot be transferred or handed over to the decree-holder for realization of the decretal amount.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
T. Devadasan v. Union of India and another, AIR 1964 S.C 179 Interpretation of proviso not to nullify main provision. The court held that the proviso to Section 60(1) of the CPC should not be interpreted to nullify the main provision regarding attachable property.
Madanlal Fakirchand Dudhediya v. Shree Changdeo Sugger Mills Ltd., AIR 1962 S.C 1543 Purpose of proviso to remove misapprehensions. The court relied on this to emphasize that the proviso clarifies exemptions without expanding attachment rights beyond the main provision.

Court's Reasoning and Analysis

The court analyzed Section 60(1) of the Code of Civil Procedure, which stipulates that saleable property belonging to the judgment debtor or over which he has disposing power may be attached and sold in execution of a decree. The court emphasized two conditions for attachment: the property must be saleable and capable of transfer. Transfer prohibited by law excludes attachment.

The proviso to Section 60(1) exempts certain properties, including a tenant's interest in residential buildings under rent control laws, from attachment. The shop in question was a non-residential building governed by the Delhi Rent Control Act, 1958. However, the court noted that the proviso's silence on non-residential premises does not imply attachability, as the proviso is not meant to override the main provision.

Section 14(1)(b) of the Delhi Rent Control Act prohibits a tenant from subletting, assigning, or transferring possession of the premises without the landlord's written consent. This restriction means the tenant lacks disposing power or saleable interest in the tenancy rights. Therefore, the judgment debtors cannot transfer or have their tenancy rights attached for execution of the decree.

Consequently, handing over possession of the shop to the decree-holder would violate Section 14(1)(b) of the Delhi Rent Control Act, 1958.

Holding and Implications

The court held that possession of the shop cannot be handed over to the decree-holder because the tenancy rights are neither attachable nor saleable in execution of the decree.

The application by the decree-holder was dismissed with no order as to costs. The decision directly affects the parties by denying transfer of possession but does not set any new precedent beyond reinforcing the non-attachability of tenancy rights under the relevant law.

    Belrex India Ltd. v. Singhal Electric Co.

    Sultan Singh, J.:— M/s. Belrex India Ltd. Calcutta a decree for recovery of Rs. 1,83,641.48 besides interest and costs against Singhal Electric Company and its partners. The judgment debtors were carrying on business in a shop at 1868, Mahalaxmi Market, Bhagirath Palace, Chandni Chowk, Delhi. The goods lying in the shop were attached by actual seizure. A local commissioner put his own lock and seal at the shop. The attached goods have since been removed from the shop and it is lying vacant. The decree holder states that the said shop is only asset of the judgment debtors known to the decree-holder, that they are not in a position to run business in the shop as they have no funds and it will be futile to restore possession of the shop to them. The decree-holder states that it is willing to take possession of the shop in order to run a show room-cum-retail sale depot, and to adjust Rs. 2000/- per month for use and occupation of the shop from the amount of the decree. Thus it is prayed that the possession of the vacant shop be handed over to the decree holder and the amount for use and occupation be fixed and it be allowed to adjust the same towards the amount due from the judgment debtors.

    2. The judgment debtors submit that the shop is tenanted premises, that the shop cannot be transferred or handed over to the decree-holder to enable it to realisg the decretal amount, that the tenancy premises are not attachable or saleable. It is submitted that judgment debtors have no saleable interest in the tenancy rights of the shop and have no right to transfer it and therefore it is not liable to be attached or sold in execution of the decree for recovery of money.

    3. Section 60(1) of the Code of Civil Procedure reads as under:

    “60(1) The following properly is liable to attachment and sale in execution of a decree, namely, lands, houses or other buildings, goods, money, bank notes, cheques, bills of exchange, hundis, promissory notes, Government securities, bonds or other securities for money, debts, shares in a corporation and, save as hereinafter mentioned, all other saleable property, movable or immovable, belonging to the judgment-debtor, or over which, or the profits of which, he has a disposing power which he may exercise for his own benefit, whether the same be held in the name of the judgment debtor or by another person in trust for him or on his behalf: Provided that the following particulars shall not be liable to such attachment or sale, namely:—

    a) to (kb)x x x x

    (kc) the interest of a lessee of a residential building to which the provisions of law for the time being in force relating to control of rents and accomodation apply.”

    The properties mentioned in Section 60(1) of the Code of Civil Procedure are liable to be attached and sold in execution of a decree i.e a decree for the recovery of money. The sub-section also provides that all other saleable property belonging to the judgment debtor or over which he has a disposing power for his own benefit may be attached. Thus it means that all properties whether movable over which the judgment debtor has disposing power and which is capable of being sold may be attached. The property in order to be attachable under this sub-section must be (i) ‘saleable property’ and (ii) capable of being transferred. Property which is not capable of being transferred cannot be attached. If tranfer of property is prohibited by law it cannot be attached. The proviso to Section 60(1) of the Code provides what properties are exempt from attachment. Clause (kc) of the proviso as set out above exempts from attachment the interest of a tenant in residential building to which the Rent Control Act is applicable. The premises where the judgment debtors were carrying on business is a shop at Bagirath Palace, Delhi and is governed by the Delhi Rent Control Act, 1958. Mr. Sharma, learned counsel for the decree-holder submits that the shop, being non-residential building though governed by Rent Conrrol Act is not included in clause (kc) and is therefore liable to be attached. The proviso no doubt mentions which are exempt from attachment but non mention of a property in the proviso does not mean that it is attachable. Proviso is not to be interpreted so as to nullify main provision (See: T. Devadasan v. Union of India and another, AIR 1964 S.C 179). The object of a proviso is often to remove misapprehension (See Madanlal Fakirchand Dudhediya v. Shree Changdeo Sugger Mills Ltd. and mothers, AIR 1962 S.C 1543. Whether a property is attachable or not one has to refer to sub-section (1) of Section 60 of the Code. According to sub-section (1) property belonging to the judgment debtor over which he has a disposing power and which is saleable may be attached in execution of the decree for recovery of money. The tenancy rights of the shop are governed by Delhi Rent Control Act, 1958. Section 14(1)(b) of the Act reads as under:

    “14(1) Notwithstanding anything to the contrary contained in any other law or contract, no order or decree for the recovery of possession of any premises shall be made by any court or Controller in favour of the landlord against a tenant:

    Provided that the Controller may, on an application made to him in the prescribed manner, make an order for the recovery of possession of the premises on one or more of the following grounds only, namely:—

    a)x x x x

    b) that the tenant has, on or after the 9th day of June, 1952 sublet, assigned or otherwise parted with the possession of the whole or any part of the premises without obtaining the consent in writing of the landlord”.

    According to clause (b) of the proviso to Section 14(1) of this Act, the tenant has no right to sublet, assign or otherwise part with the possession of whole or part of the tenancy premises without obtaining the consent in writing of the landlord. In other words, the tenant has no disposing power over the premises under his tenancy. He has no right to transfer the tenancy rights. The tenant can do so only with the consent of the landlord in writing. Thus the tenant has no saleable interest or disposing power over the tenancy rights of the premises. Section 14(1)(b) of the Delhi Rent Control Act prohibits transfer of the tenancy rights by a tenant except with the written consent of the landlord. In my opinion therefore the judgment debtors have no disposing power or any saleable interest in the tenancy rights of the shop at 1868, Bhagirath Palace, Delhi. If the possession of the shop is handed over to the decree-holder, it would amount to violation of Section 14(1)(b) of the Delhi Rent Control Act, 1958.

    4. It is therefore held that possession of shop can not be handed over to the decree-holder as the tenancy rights are not attachable or saleable in execution of the decree. The application is, therefore, dismissed with no order as to costs.

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    Comments

    Belrex India Ltd. v. Singhal Electric Co.
    (Mar 18, 1983)