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Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • S. 94, C.P.C). Under Order 38 Rule 5,
  • Article 98 of the Limitation Act.
  • Order 21 Rules 58 to 63, C.P.C
  • Order 21 Rule 63
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • S. 94, C.P.C). Under Order 38 Rule 5,
  • Article 98 of the Limitation Act.
  • Order 21 Rules 58 to 63, C.P.C
  • Order 21 Rule 63
Smart Summary

Factual and Procedural Background

Viswanatha Iyer, J.: The revision petition challenges an order of the Munsif Court, Trichur, in I.A. No. 2990 of 1971 in O.S. No. 805 of 1971, whereby the learned Munsif refused to enquire into a claim petition filed by the present petitioner contesting an attachment of movables. The underlying suit was for recovery of money; the plaintiff applied for attachment before judgment of movable goods in a shop alleged to belong to the defendants. The revision petitioner (a third party) filed an application before attachment asserting the movables belonged to him, which the Munsif dismissed as not maintainable on the ground that objection to attachment can be entertained only after attachment is effected. The petitioner filed this revision contesting that order. The court ultimately dismissed the revision petition and made no order as to costs.

Legal Issues Presented

  1. Whether a third party objecting to an attachment of property can obtain a court enquiry under Section 151, Civil Procedure Code, before the attachment is effected.

Arguments of the Parties

Petitioner's Arguments

  • The court acquires jurisdiction to attach property only if the property belongs to the defendants; therefore a third party may, under Section 151 CPC, object and seek enquiry before attachment is effected.

Court's Counter-Arguments / Respondent Position (as reflected in the opinion)

  • No party has a right to insist on exercise of the court's inherent jurisdiction; such jurisdiction is to be used only in exceptional circumstances where the Code lays down no procedure.
  • Where the Code contains express provisions on a topic, those provisions imply that powers are not to be exercised otherwise than as prescribed.
  • The Code provides specific mechanisms for pre-attachment protective orders (Section 94; Order 38 Rule 5) and for post-attachment claims (Order 21 Rules 58–63; Order 21 Rule 63; limitation under Article 98, Limitation Act), and these provisions govern the relevant procedures and remedies.
  • Allowing a third-party enquiry before attachment would risk defeating the scheme of the Code and enable defendants to frustrate attachment orders; hence inherent jurisdiction cannot be invoked to entertain such pre-attachment applications.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Radha Kishen Beni Prasad v. P.L Jaitly & Co. A.I.R 1935 All. 343 Supports the proposition that a third-party objection to attachment cannot be entertained before attachment; that post-attachment remedies govern. The court agreed with the decision, holding that it correctly lays down the law and applying its principle to dismiss the revision petition.

Court's Reasoning and Analysis

The court reasoned that inherent jurisdiction under Section 151 CPC is discretionary and reserved for exceptional cases where the Code contains no procedure. Where the Code contains express or implied provisions covering a subject, those provisions exclude alternative exercise of inherent power. The Code expressly provides for pre-attachment protective measures (Section 94; Order 38 Rule 5) which permit attachment before judgment only on satisfaction by affidavit or otherwise that attachment is justified, and for post-attachment third-party remedies (Order 21 Rules 58–63) including a summary enquiry and a right of suit under Order 21 Rule 63 with limitation one year under Article 98 of the Limitation Act. Allowing a third party to invoke inherent jurisdiction to seek enquiry before attachment would (a) undermine the protective pre-attachment regime by giving defendants opportunities to evade attachment, (b) create controversies regarding the nature and conclusiveness of orders, rights of suit and limitation periods, and (c) conflict with the statutory scheme and legislative intent. For these reasons the court held that inherent power cannot be invoked to consider a third-party application prior to attachment and found the Munsif's refusal to enquire to be correct.

Holding and Implications

DISMISSED.

Holding: The revision petition was dismissed; the lower court's order refusing to enquire into the third-party claim before attachment was upheld. There will be no order as to costs.

Implications: The decision confirms that third parties must ordinarily seek remedy after attachment is effected and pursue the remedies provided by the Code (Order 21 Rules 58–63 and related provisions), rather than invoking the court's inherent jurisdiction under Section 151 CPC before attachment. The court affirmed the existing legal position as laid down in Radha Kishen Beni Prasad v. P.L Jaitly & Co., and did not purport to create a new precedent.

    G.K Prabhakaran & Co. v. David Traders

    Viswanatha Iyer, J.:— The revision petition has been filed against an order passed by the Munsif Court, Trichur, in I.A No. 2990 of 1971 in O.S No. 805 of 1971 by which the learned Munsif refused to enquire into a claim petition filed by the petitioner against an attachment of property. The plaintiff in that case filed a suit for recovery of a sum of money from the defendants and applied for attachment before judgment of certain movable properties kept in a shop alleged to belong to the defendants. The revision petitioner, on coming to know of this order for attachment, filed an application in court objecting to the attachment of the moveables on the ground that the moveables belonged to him and did not belong to the defendants in the case. That petition was dismissed by the learned Munsif as not maintainable on the ground that a petition objecting to the attachment can be entertained only after the attachment was effected. It is against that order that this revision petition is filed.

    2. The petitioner contends that the court will get jurisdiction to attach the property only if the property belongs to the defendants and when a third party comes forward with an objection that the property does not belong to the defendants the matter can be enquired into by the court under S. 151 of the Civil Procedure Code even before attachment is effected. The question is whether this contention is correct.

    3. No party has a right to insist on the court exercising its inherent jurisdiction. This jurisdiction is to be exercised by the court in every exceptional circumstances for which the Code lays down no procedure. The Legislature has made detailed provisions in the Code for various matters.

    4. If there are express provisions in the Code covering a particular topic, they give rise to a necessary implication that no power shall be exercised in respect of the said topic otherwise than in the manner prescribed by the said provisions. The power under the Code need not even be express. It may be implied or can even be implicit from the very nature of the provisions made for covering the contingencies to which they relate.

    5. In order to prevent the ends of justice being defeated certain protective orders can be passed by the court pending suit (see S. 94, C.P.C). Under Order 38 Rule 5, in a suit for money when, on filing the suit the plaintiff finds that the defendant, with a view to defeat or delay the execution of a decree that may be passed against him, is attempting to dispose of or otherwise deal with his property, the former can move the court to call upon the defendant to furnish security and pending that may also seek to attach his property, moveable or immoveable. The court can issue an order only if it is satisfied by affidavit or otherwise that the plaintiff has made out a case for attachment before judgment. It is an extraordinary measure and the court is excepted to be very careful in issuing ex parte orders. If a third party is aggrieved by the attachment he can move the court for raising the attachment. It is only then that his right to move the court can arise and is recognised. His claim or objection will be investigated in the same manner as a claim petition is enquired into in execution of the decree under Order 21 Rules 58 to 63, C.P.C The enquiry under these rules is of a summary nature and the aggrieved party has a right of suit under Order 21 Rule 63 and the period of limitation will be one year under Article 98 of the Limitation Act. All these are covered by express provisions under the Code and the Limitation Act.

    6. It is said that if the third party can move the court only after the property is attached it will be of no assistance to him because by the process of attachment harm would have been done to him. His reputation and credit would have been damaged beyond repair. This risk is safeguarded by the Code itself providing that the court can issue the order only on being satisfied by affidavit or otherwise of the need for attachment. The risk to the plaintiff in countenancing this ante-attachment claim of the third party is greater. It will more often than not afford an opportunity to the defendant to defeat or delay the seizing of his property and thereby defeat the realisation of the fruits of the decree that may be passed in future. Again, the nature of the enquiry, the character of the order that the court may pass, its conclusiveness on the rights of parties, the question of a right of suit that the aggrieved party may have, the period of limitation within which that suit may be filed are all controversial points which may arise as a consequence of the entertaining an application before actual attachment. All these will conflict with the scheme and provisions of the Code and the intention of the Legislature. Hence the inherent power of the court cannot be invoked to consider the application of the third party before attachment of the property.

    7. The learned single Judge and the Division Bench in their orders of reference had doubted the correctness of the decision of the Allahabad High Court in Radha Kishen Beni Prasad v. P.L Jaitly & Co. (A.I.R 1935 All. 343) on this point. We find that the said decision correctly lays down the law and we agree with it.

    8. The order of the lower court is right. The revision petition is without any substance and is hereby dismissed. But, there will be no order as to costs.

    9. Dismissed.

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    Comments

    G.K Prabhakaran & Co. v. David Traders
    (Jul 3, 1972)