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Citation Codes
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citation codes
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  • Order XXXVIII, rule 11, Civil Procedure Code,
  • Order XXI, rule 57, Civil Procedure Code,
  • SECTION 73 CIVIL PROCEDURE CODE
  • Gani,(1) Order XXI, rule 57,
  • Order XXI, rule 57,
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • Order XXXVIII, rule 11, Civil Procedure Code,
  • Order XXI, rule 57, Civil Procedure Code,
  • SECTION 73 CIVIL PROCEDURE CODE
  • Gani,(1) Order XXI, rule 57,
  • Order XXI, rule 57,
Smart Summary

Factual and Procedural Background

This opinion arises from an appeal under the Letters Patent against the judgment of Mr. Justice Baker, who reversed the decree of two lower courts dismissing the plaintiff's suit with costs. The central issue concerns whether the attachment by the defendants-respondents was subsisting on the date the plaintiff-appellant purchased certain properties from the judgment-debtor. The properties consisted of twelve survey numbers, seven of which had been attached pursuant to a decree obtained by a third party (Dattatraya), and twelve attached before judgment by the defendants-respondents in a suit ending in 1906. The respondents had applied for rateable distribution of seven properties and for attachment and sale of moveable property in 1909 and 1913, but execution processes were not paid, leading to dismissal of those applications. The plaintiff purchased the remaining five properties, and subsequently filed suit seeking a declaration that these five properties were not liable to sale in execution of the respondents' decree, on the ground that the respondents' attachment ceased under Order XXI, rule 57, Civil Procedure Code, due to dismissal of their execution applications (Darkhasts). The two lower courts upheld the plaintiff's contention, but Mr. Justice Baker reversed this, holding that since no application for sale of the five properties was made, the attachment subsisted.

Legal Issues Presented

  1. Whether the attachment by the defendants-respondents was subsisting on the date the plaintiff purchased the properties from the judgment-debtor.
  2. Whether Order XXI, rule 57, Civil Procedure Code, applies to property attached before judgment and causes attachment to cease upon dismissal of execution applications.
  3. Whether the attachment ceases in respect of all attached properties or only those which are the subject of an execution application that is dismissed for default.

Arguments of the Parties

Appellant's Arguments

  • Order XXI, rule 57 applies equally to property attached before judgment as to property attached after judgment.
  • The rule is not limited to applications for execution by sale but includes any mode of execution under the Civil Procedure Code.
  • If an application for execution is dismissed due to decree-holder's default, attachment of all attached properties ceases.
  • Relied on the majority decision of the Full Bench of the Madras High Court in Meyyappa Chettiar v. Chidambaram Chettiar and this Court's decision in Ardeshir v. Usman Gani.

Respondents' Arguments

  • Order XXI, rule 57 presupposes (i) an application for sale of the attached property, (ii) default by the decree-holder in execution proceedings for sale, and (iii) attachment ceases only in respect of properties for which execution was sought and default occurred.
  • No application for sale of the five attached properties was made by respondents; only an application for rateable distribution under Section 73, Civil Procedure Code, was made.
  • No default occurred in the first application (Darkhast) of 1909, and the second application of 1913 concerned only moveable property.
  • Therefore, Order XXI, rule 57 does not apply to the five properties purchased by the plaintiff.
  • Relied on the minority view of the Madras Full Bench in Meyyappa Chettiar v. Chidambaram Chettiar and the decision in Shibnath Singh Ray v. Sheikh Saberuddin Ahmed.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Ardeshir v. Usman Gani Interpretation and application of Order XXI, rule 57, Civil Procedure Code, particularly relating to attachment before judgment. Supported the view that Order XXI, rule 57 applies to property attached before judgment but requires an application for execution by sale for attachment to cease.
Meyyappa Chettiar v. Chidambaram Chettiar Majority and minority views on the application of Order XXI, rule 57 to attachments before judgment and the effect of dismissal of execution applications. The Court preferred the majority view that the rule applies to pre-judgment attachments where execution sale applications have been made; attachment ceases only in respect of properties subject to such applications.
Shibnath Singh Ray v. Sheikh Saberuddin Ahmed Interpretation of Order XXI, rule 57 and its effect on attachments. Referenced as supporting the minority view that attachment ceases only in respect of properties for which execution sale applications were made and default occurred.
Bohra Akhey Ram v. Basant Lal Related to interpretation of attachment and execution rules under the Civil Procedure Code. Mentioned in comparison to other precedents; the Court found reasoning in this case less convincing for the present facts.

Court's Reasoning and Analysis

The Court analyzed the language of Order XXI, rule 57, emphasizing that it presupposes an application for execution by attachment and sale of the property. Since no such application was made by the respondents in respect of the five properties purchased by the plaintiff, the rule does not apply to those properties. The Court rejected the appellant's broader interpretation that any execution application suffices to terminate attachment. It held that attachment ceases only in respect of properties which are the subject of an execution application dismissed for default. The Court acknowledged the prior decision in Ardeshir v. Usman Gani but preferred the majority reasoning of the Madras Full Bench in Meyyappa Chettiar v. Chidambaram Chettiar, which aligns with this narrower interpretation. Ultimately, the Court found that the attachment on the five properties subsisted on the date of the plaintiff's purchase, and thus the plaintiff's suit failed.

Holding and Implications

The appeals are dismissed with costs.

The direct effect of this decision is that the attachment by the respondents on the five properties purchased by the plaintiff remained valid and subsisting, and therefore the plaintiff's suit for declaration that these properties were not liable to sale failed. The Court did not establish any new precedent but adhered to existing interpretations limiting the application of Order XXI, rule 57 to cases where execution sale applications have been made and dismissed for default.

    Hari Sabaji Kamat v. Shrinivas Vithal Pai

    Madgavkar, J.:—

    This is an appeal under the Letters Patent against the judgment of Mr. Justice Baker, reversing the decree of the two Courts below and dismissing the plaintiff's suit with costs. The question in both the appeals is whether the attachment of the defendants-respondents was subsisting on the date of the purchase by the plaintiff-appellant from the judgment-debtor. The property in all comprised twelve survey numbers. Out of these, a third party had obtained a decree and attachment in respect of seven. The defendants-respondents had obtained attachment before judgment in respect of twelve survey numbers in a suit, which ended in a decree in their favour in 1906. In 1909 the other decree-holder Dattatraya had applied to attach and sell seven out of the survey numbers, and by Darkhast No. 49 of 1909 by the defendants in execution of this decree the respondents applied for two reliefs, firstly, for rateable distribution under section 73, Civil Procedure Code, in respect of the seven properties attached which formed the subject-matter of the application by Dattatraya, and, secondly, for attachment and sale of the moveable properties of the judgment-debtor. The former relief he obtained but not the latter as process was not paid. By Darkhast No. 240 of 1913 on April 12, 1913, he again applied for attachment and sale of the moveable properties. No process was paid and that Darkhast was dismissed for default. Subsequently the plaintiff purchased the remaining five properties. In 1916 the respondents sought to bring the remaining five attached properties to sale, and the present suit by the plaintiff was for a declaration that these properties were not liable to be sold in execution of the decree in favour of the respondents on the ground that the respondents' attachment before judgment ceased under Order XXI, rule 57, Civil Procedure Code, on the dismissal of their two Darkhasts of 1909 and 1913. The plaintiff-appellant's contention was upheld by the two lower Courts, which held that the defendants-respondents' attachment before judgment was not subsisting on the date of the plaintiff-appellant's purchase but had ended under Order XXI, rule 57, Civil Procedure Code. Baker, J. in appeal came to a different conclusion on the ground that there had been no application by the respondents for sale of the five out of the twelve properties attached, and Order XXI, rule 57, Civil Procedure Code, therefore, had no application and the attachment therefore subsisted.

    It is argued for the appellant that as held by me sitting singly in Ardeshir v. Usman Gani,(1) Order XXI, rule 57, applies to property attached before judgment no less than to property attached in execution after judgment, and that the sentence is not limited to an application for execution by sale of the attached properties but that an application for execution in any of the modes allowed by the Code suffices, and if any such application is dismissed by reason of the decree-holders' default, the attachment, that is to say, the entire attachment of all the properties attached even before judgment ceases. Reliance is placed for this contention on the decision of the majority of the Full Bench of the Madras High Court in Meyyappa Chettiar v. Chidambaram Chettiar, followed by this Court in Ardeshir v. Usman Gani.(2)

    For the respondents reliance is placed on a decision not referred to in Ardeshir v. Usman Gani, Shibnath Singh Ray v. Sheikh Saberuddin Ahmed,(3) which follows the view of the minority of the Full Bench Madras decision in Meyyappa Chettiar v. Chidambaram Chettiar.(4) It is argued that even on the decision of the majority in the Madras Full Bench case referred to above, Order XXI, rule 57, necessarily pre-supposes, firstly, an application for sale of the attached property, secondly, default on the part of the decree-holder in execution proceedings for such sale, and thirdly, the attachment ceases only in respect of the properties in respect of which execution is sought, and not other properties attached in respect of which execution has not been sought and in respect of which, therefore, necessarily there can be no default. In this case the respondents have never applied themselves for sale of any of the attached property even in respect of the seven survey numbers brought to sale by Dattatraya but merely applied for rateable distribution under section 73, Civil Procedure Code. There was no default on their part in the first Darkhast of 1909, and the second Darkhast of 1913 was only for sale of the moveable property and Order XXI, rule 57, Civil Procedure Code, has therefore no application.

    In regard to the construction of Order XXI, rule 57, the argument for the respondents is in our opinion correct. The words of that section “where any property has been attached in execution of a decree” necessarily pre-suppose an application for execution for attachment and sale of the property, and this is made still more clear by the subsequent words in the opening sentence. Similarly, the subsequent word “application” for execution must be taken to imply the same application for execution, viz. by attachment and sale of the property. Where, therefore, as here, there has been no such application for attachment and sale of the property Order XXI, rule 57, has no application. In this view, strictly speaking, it is not necessary for us to consider the further aspect of the case.

    At the same time we adhere to the view one of us expressed in Ardeshir v. Usman Gani, based on the decision of the majority in Meyyappa Chettiar v. Chidambaram Chettiar. We are of opinion that by the words “has been attached” the legislature did not intend to exclude property which originally might have been attached before judgment but in respect of which, although no second application to re-attach was necessary by reason of Order XXXVIII, rule 11, Civil Procedure Code, application to sell had been made in execution subsequent to the decree. The reasoning in the Calcutta case, if we may say so with all respect, is not convincing. The reasons of the legislature for the addition of this new rule to the Code of 1908 hold equally good in the case of property attached before judgment. Speaking for myself, I still prefer the reasoning and the conclusion of Couts Trotter, J. and Ramesan, J. in the Full Bench Madras case referred to above to that of Rankins, C.J in Shibnath Singh Ray v. Sheikh Saberuddin Ahmed and of Bohra Akhey Ram v. Basant Lal.

    In the present case we are of opinion that the words “attachment shall cease” in the concluding sentence of rule 57 do not mean necessarily attachment of all the properties attached even though they do not form the subject-matter of the application for execution. Attachment merely results in the property remaining in custodia legis. But cases repeatedly occur where one or more out of such properties may be taken away from such custodia legis by order of the Court or by consequence of law; the others so remain under attachment. In the present case, we are of opinion that in the properties with which the present appeal is concerned, the attachment did not cease but subsisted on the date of the plaintiff-appellant's purchase, and his suit therefore fails.

    We agree, therefore, with the decision of Mr. Justice Baker and dismiss the appeals with costs.

    Appeals dismissed.
    B.G.R
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    Comments

    Hari Sabaji Kamat v. Shrinivas Vithal Pai
    (Mar 12, 1931)