C.S. MANI (DECEASED) BY LR C.S. DHANAPALANversusB. CHINNASAMY NAIDU (DECEASED) BY LRS.
- Citation
- 2010 INSC 565
- Decided
- 31 August 2010
- Disposal
- Appeal(s) allowed
- Bench
- R V RAVEENDRAN
Holding
The attachment continued until the property was sold by auction; the auction sale in favour of the appellant was valid and the intervening transfers by the judgment‑debtor were void.
Summary
The appellant obtained a money decree against Mokshammal, an agriculturist, and had his property attached on 29‑12‑1974. The Tamil Nadu Indebted Agriculturists (Temporary Relief) Act, 1975 (Debt Relief Act) came into force on 10‑1‑1975, and under its Section 4 the execution against agriculturists was stayed; the execution was closed on 15‑2‑1975. The stay was extended until 14‑7‑1979. After the moratorium expired the appellant re‑initiated execution and the attached land was auctioned on 6‑6‑1984, with the appellant purchasing it; the sale was confirmed on 30‑7‑1985. During the period of attachment the judgment‑debtor sold portions of the land in 1978 and 1980, which were later transferred to the respondent, who sued for title. Lower courts held the attachment continued and the auction sale valid; the High Court reversed, holding the attachment had ended after six months due to an alleged amendment to the 15‑2‑1975 order. The Supreme Court examined whether the attachment survived the statutory stay and whether the six‑month amendment was valid. It held that closure of the execution petition under a statutory stay is not a dismissal; therefore the attachment remained in force until the property was sold by auction. The later amendment adding “for six months” was a clerical error, set aside, and the debtor’s intervening transfers were void. Consequently, the auction sale in favour of the appellant was valid and the respondent’s claim was dismissed.
Issues considered
- Whether the attachment of the suit property effected on 29‑12‑1974 continued after the execution petition was closed on 15‑2‑1975 and remained in force until the auction sale on 6‑6‑1984, rendering the judgment‑debtor’s subsequent transfers void.
- Whether the attachment ceased on 15‑8‑1975 on the basis of an alleged six‑month limitation added to the 15‑2‑1975 order, thereby validating the judgment‑debtor’s later sales and invalidating the auction sale.
Legislation cited
Subjects
Judgment
(2010] 10 S.C.R. 866
A C.S. MANI (DECEASED) BY LR C.S. DHANAPALAN
v.
B. CHINNASAMY NAIDU (DECEASED) BY LRS.
(Civil Appeal No. 5798 of 2002)
AUGUST 31, 2010
B
[R.V. RAVEENDRAN AND H.L. GOKHALE, JJ.]
Tamil Nadu Indebted Agriculturists (Temporary Relief)
Act, 1975:
c
s.4 - Execution of money decree against agriculturist -
Attachment of property - Execution application closed in view
of s.4 of the Act staying the execution against agriculturist -
After moratorium period ended, initiation of execution
D proceedings by decree-holder - Auction sale of attached
property - Validity of - Held: Auction sate was valid - There
was no withdrawal of attachment, nor any qµestion of 'eclipse
of attachment' during the period of the statutory stay under the
Act - Attachment in execution already effected, continued
E and was in effect, during the entire period of stay and on expiry
of moratorium period, the decree-holder became entitled to
continue the execution by proceeding with the sale - Sale of
attached property during subsistence of attachment by the
judgment-debtor was void - Code of Civil Procedure, 1908 -
F s.51(b), 0.21, rr.54, 55, 57, 58.
Code of Civil Procedure, 1908:
s.51(b), 0.21, rr.54, 55, 57, 58 - Attachment of
immovable property effected in execution of a decree -
G Determination/removal of - Legal position discussed.
0.21, r.57 - Closure of execution application - Held: Is
not dismissal of execution application.
The appellant obtained a money decree against the
H 866
C.S. MANI (D) BY LR v. B. CHINNASAMY NAIDU 867
(DECEASED) BY LRS.
judgment-debtor (M). In the execution of the money A
decree, the properties belonging to 'M' were attached on
29.12.1974. On 10.1.1975, the Tamil Nadu Indebted
Agriculturists (Temporary Relief) Act, 1975 came into force,
by virtue of which all the proceedings in applications for
execution of decrees in which relief was claimed against B
the agriculturists were stayed until the expiry of one year
from the date of commencement of the said Act. As 'M'
was an agriculturist, the execution proceedings in regard
to the decree obtained by the appellant against her were
closed on 15.2.1975. The moratorium period of one year c
under the Debt Relief Act was extended from time to time
till 14. 7 .1979. After the moratorium period ended, the
appellant initiated execution proceedings afresh. In the
said execution proceedings, the attached suit property
was brought to auction sale on 6.6.1984 and in that D
auction, the appellant purchased the sale property. 'M'
filed an applicati<;m under Section 47, CPC to set asid~
the sale. The trial court set aside the sale. The first
appellate court reversed the order of trial court and
upheld the validity of sale. The High Court upheld the E
same. In the meanwhile, on 17.2.1978, 'M' had sold the
attached property and the purchaser further sold the
property and ultimately the a~~.lched (suit) property came
to the respondent.
In 1985, the respondent filed a suit for declaration of F
title over the suit property against the appellant. A decade
later, the respondent filed an additional document. As per
the document, the order dated 15.2.1975 was corrected
twenty years later on 19.7.1995 converting the attachment
which was to continue without any specific time limit, as G
one to end on the expiry of six months. The said
correction was by way of an office note and without
notice to the appellant. The appellant challenged the
amendment before the High Court. The High Court held
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868 SUPREME COURT REPORTS [2010] 10 S.C.R.
A that a clerical mistake cannot be converted behind the
back of parties and remitted the matter to lower court with
direction to give notice to both the parties in respect of
the clarification required and the amendment to be made.
On 18.9.1996, the District Munsif addressed a
B communication to the counsel of the appellant for making
correction in the suit register as well as in the certified
copies.
The trial court dismissed the suit. The first appellate
C court upheld the order of trial court. It was concurrently
found by both the courts that the attachment effected on
29.12.1974 was not raised/withdrawn/determined and it
continued till the sale of the property in the court auction
on 6.6.1984 and, therefore, the sale in favour of appellant
was valid and the sales effected by 'M' during the
D subsistence of the attachment were invalid. The High
Court allowed the appeal holding that that when the Debt
Relief Act came· into force, the executing court had closed
the execution proceedings on 15.2.1975 with an
observation that the attachment to continue for a period
E of six months, and at the end of six months the
attachment came to an end and was not revived or
renewed and auction sale in favour of the appellant was
not valid and consequently when 'M' sold the suit
property, it was not subject to any attachment and
F consequently, the respondent who purchased the suit
property was the owner of the suit property.
In the instant appeal, it was contended for the
appellant that on 15.2.1975, the executing court, while
G closing the execution in view of the stay of execution
proceedings by the Debt Relief Act, had made it clear that
the attachment would continue.
Allowing the appeal, the Court
H
C.S. MANI (D) BY LR v. B. CHINNASAMY NAIDU 869
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HELD: 1.1. An attachment of an immovable property A
in execution of a decree is made by an order prohibiting
the judgment-debtor from transferring or charging the
property in any way, and all persons from taking any
benefit from such transfer or charge (Order 21 Rule 54,
CPC), and it continues until the said property is sold and B
the sale is confirmed, unless it is determined or removed
on account of any of the following reasons: (i) By
deemed withdrawal under Rule 55 Order 21, CPC, that is,
where the attachment is deemed to be withdrawn on
account of (a) the amount decreed with all costs, charges c
and expenses resulting from the attachment being paid
into court; or (b) satisfaction of the decree being
otherwise made through the court or is certified to the
court; or (c) the decree being set aside or reversed. (ii)
By determination under Rule 57 Order 21, CPC, that is, D
after any property has been attached in execution of a
decree, the court passes an (.)rder dismissing the
application for execution of the decree, but omits to give
a direction that the attachment shall continue. (iii) By
release of the property from attachment under Rule 58
Order 21, CPC, that is, when any claim is preferred to the E
property attached in execution, or any objection is made
to the attachment, on the ground that the property is not
liable to such attachment and the court, on adjudication
of the claim or the objections, releases the property from
attachment. (iv) By operation of law, that is, on account F
of any statute declaring the attachment in execution shall
cease to operate, or by the decree (in respect of which
the property is attached) being nullified, or by the
execution being barred by the law of limitation. (v) By
consent of parties, that is, where the decree holder and G
the judgment debtor agree that the attachment be
withdrawn or raised. [Paras 8, 9] [877-C-H; 878-A-E]
1.2. It is not the case of the respondent that there was
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870 SUPREME COURT REPORTS [2010] 10 S.C.R.
A determination of the attachment on account of any of the
grounds specified in Rule 55 or Rule 58 of Order 21, CPC.
There was also no agreement to raise the attachment nor
any application for withdrawing the attachment. It is clear
from Rule 57 of Order 21, CPC that where the court
B 'dismisses' the application for execution of the decree,
the attachment effected in execution, shall cease unless
the court indicates that the attachment shall continue. But
where the execution petition is adjourned 'sine die' or
closed on account of any moratorium or stay of the
c execution under a statute, or by an order of stay by any
court, there is no "dismissal" of the execution
application. Similarly, where the execution application is
closed without any specific cause, apparently for
purposes of statistical disposal, there is no 'dismissal' of
the execution application. An execution application is
0
'dismissed' when (i) the execution is dismissed as a
consequence of the decree be.ing found to be null and
void or inexecutable (as contrasted. from any temporary
eclipse of the decree); or (ii) the execution is dismissed
E on the ground of any default on the part of the decree-
holder. [Paras 10, 11] [879-B-F]
1.3. The execution application of the appellant was
closed on 15.2.1975 in view of Section 4 of the Tamil Nadu
Indebted Agriculturists (Temporary Relief) Act, 1975
F staying the executions against agriculturists. What was
stayed or kept in abeyance during the period when the
statutory stay of execution operated under the Act, was
not the attachment, but the further proceedings in
pursuance of the attachment, that is, sale of the attached
G property. The stay was only for a specified limited period.
On the expiry of the moratorium period under the Debt
Relief Act on 17 .10.1979, the decree holder became
entitled to continue the execution by proceeding with the
sale. Thus, there was no question of determination or
H
C.S. MANI (D) BY LR v. B. CHINNASAMY NAIDU 871
(DECEASED) BY LRS.
withdrawal of attachment, nor any question of 'eclipse of A
attachment' during the period of the statutory stay under
the Debt Relief Act, nor any 'revival' of attachment
thereafter. Attachments in execution, already effected,
continued and were in effect, during the entire period of
stay of execution by the Debt Relief Act. The alienations B
by 'M' were, therefore, void as against the claim
enforceable under the attachment obtained by appellant,
having regard to Sec. 64 of the Code. As the attachment
obtained by the appellant continued, the sales by 'M' were
invalid and the sale in favour of the appellant was valid. c
[Paras 11, 12] [879~D-H; 880-A-E]
2.1. If the order of the executing court while closing
the execution, was 'attachment to continue', the
attachment would have continued in spite of the closing
of the execution proceedings. Even if the executing court D
had closed the execution, in view of the statutory stay,
without any· specific order continuing the attachment, the
attachment would not have ceased as there was no
'dismissal' of execution under Order 21 Rule 57, CPC. But
if the order dated 15.2.1975 had stated 'attachment to E
continue for six months', whether right or wrong, the
attachment would have come to an end on the expiry of
six months from 15.2.1975, unless it was continued by
any subsequent order, or had been modified or set aside
by a higher court. [Para 14] [881-C-E] F
2.2. The High Court erred in proceeding on the basis
that by order dated 15.2.1975, the executing court had
closed the execution proceedings in view of the
enactment of the Debt Relief Act and continued the G
attachment only for six months and thereafter there was
no attachment and, therefore, the sales by 'M' on
17.2.1978 and 8.12.1980 were valid and the court auction
sale in favour of the appellant was invalid. When the Debt
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872 SUPREME COURT REPORTS [2010] 10 S.C.R.
A Relief Act clearly indicated that the attachment would
continue during the period when the execution
proceedings were stayed, it is ununderstandable how the
executing court could make an order that the attachment
would continue only for six months. Moreover, when the
B order dated 15.2.1975 stated "attachment to continue", it
is ununderstandable how the said order could have been
amended after 20 years without notice to the plaintiff.
decree holder on the basis of some private clarification
letter dated 29.10.1985 allegedly written by the District
c Munsif stating that the order made on 15.2.1975 was not
"attachment to continue" but "attachment to continue for
six months". Also, when the order dated 19.7.1995
amending the order dated 15.2.1975 was set aside by the
High Court by order dated 22.12.1995 with a direction for
0 fresh disposal in accordance with law after notice to the
parties, it is ununderstandable how the District Munsiff,
instead of complying with the order of the High Court,
could have issued a notice dated 18.9.1996 to both
counsel stating that the said correction adding the words
E "for six months" was required to be made in the certified
copies, if any obtained by the Advocates, and that both
side Advocates should produce the certified copies for
making the correction. The notice dated 18.9.1996, by no
stretch of imagination, could be construed as an order.
F The notice dated 18.9.1996 was apparently issued under
an erroneous impression that the High Court had
accepted the correction, but had directed making of the
correction in the certified copies after notice to the
parties. The amendment made pursuant to the office note
dated 19.7.1995 having been set aside by order dated
G 22.12.1995, and no further order having been made
thereafter by the executing court, the unauthorized
addition of the words "for six months" in the order dated
15.2.1975 have to be ignored and excluded. Therefore,
the attachment dated 29.12.197 4 continued till the
H
C.S. MANI (D) BY LR v. B. CHINNASAMY NAIDU 873
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property was sold by public auction on 6.6.1984 and A
confirmed on 30.7.1985. Consequently any sale by 'M',
during the subsistence of the attachment was void
insofar as the decree obtained by the appellant.
Therefore, neither the purchasers from 'M' nor the
respondent who is the subsequent transferee, obtained B
any title in pursuance of the sales, as the sales were void
as against the claims enforceable under the attachment.
The order of the High Court is set aside and the order of
the first appellate court confirming the dismissal of the
respondent's suit stands restored. [Paras 18, 19, 20] [884- c
B-H; 885-A-G]
CIVIL APPELLATE JURISDICTION : Civil Appeal No.
5798 of 2002.
P. Vishwanath Shetty, V. Ramasubramanian, V. D
Balachandran for the Appellant.
K.S. Ramamurthy, A.T.M. Sampath for the Respondents.
The Judgment of the Court was delivered by
E
R.V. RAVEENDRAN, J. 1. Appellant obtained a money
decree for Rs.4200/- against one Mokshammal on 28.2.1972.
He levied execution (EP No.466/1974) in respect of the said
decree, wherein the suit property (agricultural land measuring
2 acres 22 cents) and two other properties (which are not the F
subject matter of present proceedings) belonging to
Mokshammal were attached on 29.12.1974.
2. The Tamil Nadu Indebted Agriculturists (Temporary
Relief) Act, 1975 ('Debt Relief Act' for short) enacted by the
Tamil Nadu Legislature came into force with effect from G
10.1.1975. Section 4 of the said Act stayed all further
proceedings in applications for execution of decrees in which
relief was claimed against an agriculturist until the expiry of one
year from the date of commencement of the said Act. The
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874 SUPREME COURT REPORTS [2010] 10 S.C.R.
A proviso. thereto enabled the court to pass such orders as it
deemed necessary for custody or preservation of the property
under attachment. As Mokshammal was an ·agriculturist' as
defined under the said Act, the execution proceedings in regard
to the decree obtained by the appellant against her were
B closed, by order dated 15.2.1975. The moratorium period of
one year under the Debt Relief Act was subsequently extended
from time to time till 14.7.1979.
3. After the moratorium period ended, the appellant
C initiated execution proceedings afresh (EP No.276 of 1980).
As the suit property had already been attached on 29.12.1974
in the earlier execution proceedings, and that attachment
continued even during the moratorium period, the appellant did
not seek any fresh attachment. In the said execution
proceedings the attached suit property was brought to sale. At
D the court auction sale held on 6.6.1984, the appellant
purchased the suit property. The auction sale in favour of
appellant was confirmed o'n 30.7.1985 and a sale certificate
was issued to him. According to appellant possession of the
suit property was also delivered to him through court on
E 10.9.1985.
4. The judgment debtor Mokshammal filed an application
under section 47 of the Code of Civil Procedure ('Code' for
short) to set aside the sale. The sale was set aside on
F 10.1.1986. However the appeal filed by the appellant against
the said order was allowed by the Subordinate Judge and by
order dated 15.3.1993 the order of the executing court dated
10.1.1986 setting aside the sale was reversed. The revision
petition filed by Mokshammal against the said order was
G dismissed on 5.10.1993. Thus the attempts by Mokshampial
to get the sale set aside failed and the auction sale attained
finality.
5. In the meanwhile, the Judgment-Debtor Mokshammal
sold 75 cents out of the suit property to one Chandra on
H 17.2.1978 who in turn sold it to Kiliammal on 19.8.1981. The
C.S. MANI (D) BY LR v. B. CHINNASAMY NAIDU 875
(DECEASED) BY LRS. [R.V. RAVEENDRAN, J.]
remaining 1.47 acre was also sold by Mokshammal to one A
Chand Basha under another sale deed dated 18.12.1980.
Chand Basha and Kiliammal sold their respective portions
measuring 1.47 acres and 75 cents to the respondent under
sale deeds dated 27 .1.1982 and 6.3.1982. Respondent thus
claimed to be the owner in possession of the suit schedule B
property measuring 2 acres 22 guntas. The respondent filed a
suit in the court of District Munsiff, Tiruvallur (O.S.No. 458/1985)
against the appellant seeking a declaration of his title over the
suit property and for a permanent injunction to restrain the
appellant from interfering with his possession over the same. c
In the said suit, the respondent contended that on the
enactment of the Debt Relief Act, the execution against
Mokshammal was closed on 15.2.1975 and as a result the
attachment dated 29.12.1974 over the suit property came to
an end; and therefore when portions of suit property were sold D
by Mokshammal to Chandra and Chand Basha or when the suit
0
prqperty was subsequently sold to him on 27.1.1982' and
6.3.1982, it was not subject to any attachment and therefore
he became the absolute owner thereof. He further contended
that the court sale in execution on 6.6.1984 in favour of the
appellant, was on the erroneous premise that the suit property E
was under attachment; and that as the attachment had ceased
on 15.2.1975, the auction sale was null and void. He also
asserted that he was in possession of the suit property and the
claim of the appellant that possession was delivered to him on
10.9.1985, was false and incorrect. The suit was contested by F
the appellant. The trial court dismissed the suit by judgment and
decree dated 7.11.1997, holding that the sale deeds in favour
of respondent were not valid and the appellant was in
possession of the suit property. The respondent filed an appeal
challenging the judgment and decree of the trial court, and the G
first appellate court by judgment dated 5.8.1998 dismissed the
appeal. The trial court and the first appellate court concurrently
found that the attachment effected on 29.12.1974 was not
raised/withdrawn/determined and it had continued till the sale
of the property in the court auction on 6.6.1984 and therefore H
876 SUPREME COURT REPORTS [2010] 10 S.C.R.
A the sale in favour of appellant was valid and the sales effected
by Mokshammal during the subsistence of the attachment were
invalid.
6. Feeling aggrieved, the respondent filed a second
B appeal. The High Court allowed the second appeal and set
aside the judgment and decree of the first appellate court, and
decreed the suit for declaration of title and injunction filed by
the respondent. The High Court held that when the Debt Relief
Act came into force, the executing court had closed the
C execution proceedings on 15.2.1975 with an observation that
the attachment to continue for a period of six months, and at
the end of six months the attachment came to an end and was
not revived or renewed and consequently when Mokshammal
sold the suit property on 17.2.1978 and 18.12.1980 in two
portions to Chandra and Chand Basha, the suit property was
D not subject to any attachment and consequently, the respondent
who had purchased the suit property from Chandra's successor
Killiammal and Chand Basha, was the· owner of the suit
·property. It held that the court sale dated 6.6.1984 and
consequent sale certificate did not convey any title to the
E appellant, as there was no attachment as on the date of sale
and Mokshammal did not have any interest in the suit property
on the date of auction sale. The said judgment is challenged
in this appeal.
F Legal Position regarding determination of attachment
7. One of the modes of enforcing execution of a money
decree is by attachment and sale of the property of the
judgment-debtor. (Vide Sec.51 (b) of the Code). Attachment of
an immovable property is made by an order prohibiting the
G judgment-debtor from transferring or charging the property in
any way, and all persons from taking any benefit from such
transfer or charge (Vide Order 21 Rule 54 of the Code). Section
64 of the Code of Civil Procedure provides that private
alienation of property after attachment is void and sub-section
H (1) thereof is extracted below:
C.S. MANI (D) BY LR v. B. CHINNASAMY NAIDU 877
(DECEASED) BY LRS. [R.V. RAVEENDRAN, ,J.]
"64. Private alienation of property after attachment to be A
void.--(1) Where an attachment has been made, any
private transfer or delivery of the property attached or of
any interest therein and any payment to the judgment-
debtor of any debt, dividend or other money contrary to
such attachment, shall be void as against all claims B
enforceable under the attachment."
8. An attachment of an immovable property effected in
execution of a decree, will continue until the said property is
sold and the sale is confirmed, unless it is determined or C
removed on account of any of the following reasons:
(i) By deemed withdrawal under Rule 55 Order 21 of the
Code, that is, where the attachment is deemed to be
withdrawn on account of (a) the amount decreed with all
costs, charges and expenses resulting from the D
attachment being paid into court; or (b) satisfaction of the
decree being otherwise made through the court or is
certified to the court; or (c) the decree being set aside or
reversed.
E
(ii) By determination under Rule 57 Order 21 of the
Code, t\at is, after any property has been attached in
execution of a decree, the court passes an order
dismissing the application for execution of the decree, but
omits togive a direction that the attachment shall continue.
F
(When an execution application is dismissed, for
whatsoever reason, the court is required to direct whether
the attachment shall continue or cease and shall also
indicate the period up to which the attachment shall
continue or the date on which such attachment shall cease).
G
(iii) By release of the property from attachment under
Rule 58 Order 21 of the Code, that is when any claim is
preferred to the property attached in execution, or any
objection is made to the attachment, on the ground that the
property is not liable to such attachment and the court, on H
878 SUPREME COURT REPORTS [2010] 10 S.C.R.
A adjudication of the claim or the objections, releases the
property from attachment.
(iv) By operation of law, that is, on account of any statute
declaring the attachment in execution shall cease to
operate, or by the decree (in respect of which the property
B
is attached) being nullified, or by the execution being
barred by the law of limitation.
(v) By consent of parties, that is, where the decree holder
and the judgment debtor agree that the attachment be
c withdrawn or raised.
Questions for consideration
9. On the contentions raised, two questions arise for our
consideration in this appeal :
0
(i) Whether the attachment of the suit property on
29.12.1974 continued after the closure of the execution petition
on 15.2.1975, till the auction sale on 6.6.1984 and confirmation
of sale on 30.7.1985; and consequently the sales by
E Mokshammal on 17.2.1978 and 18.12.1980 as also the sales
by her transferees to respondent were invalid.
(ii) Whether the attachment of the suit property ceased on
15.8.1975, on the expiry of six months from the date of closure
of the execution proceedings, in view of the intervention of the
F
Debt Relief Act and the orderof closure dated 15.2.1975; and
consequently the sales by Mokshammal on 17.2.1978 and
18.12.1980 were valid, and the auction sale in favour of the
appellant was invalid ?
G Re : Question (i)
10. There is no dispute that the suit property was attached
on 29.12.1974 in the execution proceedings initiated by the
appellant against Mokshammal, in regard to the money decree
H obtained by him. Therefore any private transfer or delivery of
C.S. MANI (D) BY LR v. B. CHINNASAMY NAIDU 879
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the attached property, by Mokshammal during the period when A
the attachment was in force, was void as against all claims
enforceable under the attachment by the appellant. As noticed
above, an attachment, once made in execution of a decree, will
continue till the completion of the sale, unless determined by
any of the methods mentioned in para (8) above. It is not the B
case of the respondent that there was determination of the
attachment on account of any of the grounds specified in Rule
55 or Rule 58 of Order 21 of the Code. There was also no
agreement to raise the attachment nor any application for
withdrawing the attachment. Therefore what remains to be C
considered whether there was determination of attachment
under any of the circumstances mentioned in paras (ii) and (iv)
of para 8 above.
11. It is clear from Rule 57 of Order 21 of the Code that
where the court 'dismisses' the application for execution of the D
decree, the attachment effected in execution, shall cease
unless the court indicates that the attachment shall continue. But
where the execution petition is adjourned 'sine die' or closed
on account of any moratorium or stay of the execution under a
statute, or by an order of stay by any court, there is no E
"dismissal" of the execution application. Similarly where the
execution application is closed without any specific cause,
apparently for purposes of statistical disposal, there is no
"dismissal" of the execution application. An execution
application is 'dismissed' when (i) the execution is dismissed F
as a consequence of the decree being found to be null and void
or inexecutable (as contrasted from any temporary eclipse of
the decree); or (ii) the execution is dismissed on the ground of
any default on the part of the decree-holder.
12. The execution application of the appellant was closed G
on 15.2.1975 in view of Section 4 of the Debt Relief Act staying
executions against agriculturists. The stay of further proceedings
in execution under section 4 of the Debt Relief Act was only
for a specified limited period. The proviso to section 4 clearly
implied that any attachment made in such stayed execution H
880 SUPREME COURT REPORTS [2010] 10 S.C.R.
A proceedings shall continue to be in effect, by providing that the
court will have to pass if necessary the orders for custody or
preservation of the attached property during the pendency of
stay under the Debt Relief Act. Therefore the enactment of the
Debt Relief Act did not determine the attachment. What was
B stayed or kept in abeyance during the period when the statutory
stay of execution operated, was not the attachment, but the
further proceedings in pursuance of the attachment, that is, sale
of the attached property. On the expiry of the moratorium period
under the Debt Relief Act on 17.10.1979, the decree holder
C became entitled to continue the execution by proceeding with
the sale. There is thus no question of determination or
withdrawal of attachment, nor any question of ·eclipse of
attachment' during the period when the statutory stay under the
Debt Relief Act, nor any ·revival' of attachment thereafter.
D Attachmonts in execution, already effected, continued and were
in effect, during the entire period of stay of execution by the Debt
Relief Act. The alienations by Mokshamal under sale deeds
dated 17.2.1978 and 18.2.1980 were therefore void as against
the claim enforceable under the attachment obtained by
appellant, having regard to Sec. 64 of the Code. As the
E attachment obtained by the appellant continued, the sale in his
favour was valid and the sales by Mokshammalo were invalid.
Re : question (ii)
13. The contention of the respondent is that even if the
F attachment was not determined on account of the enactment
of the Debt Relief Act, the executing court which passed the
order of attachment on 29.12.1974 had subsequently made an
order on 15.2.1975 closing the execution with an observation
that the "attachment to continue for six months" thereby making
G it clear that the attachment would came to an end on 15.8.1975.
It was submitted that there was no order extending the
attachment after the expiry of the said six month period. It was
submitted by the respondent that even assuming that the said
order dated 15.2.1975 was erroneous, it was binding and valid
H as it was not got modified or set aside and had attained finality;
C.S. MANI (D) BY LR v. B. CHINNASAMY NAIDU 881
(DECEASED) BY LRS. [R.V. RAVEENDRAN, J.]
and consequently when the sale was effected by Mokashammal A
on 17 .2.1978 and 18.12.1980 in respect of portions of the suit
property, there was no subsisting attachment. On the other
hand, the appellant contends that on 15.2.1975, the executing
court, while closing the execution in view of the stay of
execution proceedings by the Debt Relief Act, had made it B
clear that the attachment will continue. According to them the
order made by the executing court while closing the execution
proceedings on 15.2.1975 was "Defendant in an agriculturist
- EP is closed - attachment to continue".
14. If the order of the executing court while closing the C
execution, was 'attachment to continue', the attachment would
have continued in spite of the closing of the execution
proceedings. Even if the executing court had closed the
execution, in view of the statutory stay, without any specific
order continuing the attachment, the attachment would not have D
ceased as there was no 'dismissal' of execution under Order
21 Rule 57 of the Code. But if the order dated 15.2.1975 had
stated 'attachment to continue for six months', whether right or
wrong, the attachment would have come to an end on the
expiry of six months from 15.2.1975, unless it was continued E
by any subsequent order, or had been modified or set aside
by a higher court. What then was the order that was passed
on 15.2.1975?
15. It is significant that the respondent in his plaint (in OS
No. 458/1985) never stated that that order dated 15.2.1975 F
closing the execution proceedings, continued the attachment
for only six months. On the other hand his specific case was
that the attachment came to an end on account of the execution
being closed on 15.2.1975 by reason of the Debt Relief Act.
We extract below the relevant averments from the plaint : G
"While the E.P. Proceedings were in progress
Government passed Debt Relief Act for the relief of
agriculturists and by virtue of which all further proceedings
against agriculturists were either stayed or dismissed. H
882 SUPREME COURT REPORTS (2010] 10 S.C.R.
A The E.P. No.466/74 was also closed on 15.2.75 with the
result the attachment came to an end."
Nearly a decade later, the respondent filed by way of an
additional document in the said suit, the suit register extract
relating to order dated 15.2.1975 which read as follows :
8
Amended as per Office Note dated 19.7.1995:
"Defendant is an agriculturist - E.P. is closed - attachment
to continue for 6 months".
C The certified copy of the order dated 15.2.1975 obtained by
the appellant (prior to 19. 7.1975 when the amendment was
made) read: "Defendant is an agriculturist - E.P. closed -
attachment to continue." The said order dated 15.2.1975 was
corrected twenty years later on 19. 7 .1995 by adding the words
D "for six months" at the end, thereby converting the attachment
which was to continue without any specific time limit, as one to
end on the· expiry of six months. The said correction was by way
of an office note and without notice to the appellant. The
appellant therefore filed a civil revision petition before the High
E Court challenging the amendment to the crder dated 15.2.1975
made on 19.7.1995 by way of an office note, converting the
words "attachment to continue" to "attachment to continue for
6 months".
16. The High Court allowed the said revision petition by
F order dated 22.12.1995. It found that the correction had been
made after 20 years on 19.7.1995, allegedly after obtaining a
clarification from the Presiding Officer; and that it was not
known how and on what basis such a clarification could be
obtained after 20 years and on what authority the person who
G was the Presiding Officer on 15.2.1975 could issue any
clarification after the order, and how the order could be
amended after 20 years, that too without giving an opportunity
to the appellant to oppose the same. The court therefore
allowed the revision petition with the following observations and
H directions :
C.S. MANI (D) BY LR v. B. CHINNASAMY NAIDU 883
(DECEASED) BY LRS. [R.V. RAVEENDRAN, J.]
"3. It is absolutely necessary that whenever a clerical A
· mistake is to be corrected, such corrections cannot be
made behind the back of the parties and the parties must
be given an opportunity, explaining the clerical mistake and
the circumstances under which the corrections are to be
made. Hence the amendment made pursuant to the office B
note dated 19. 7 .1995 with regard to the suit register in
O.S.No.29/71 cannot be sustained. Accordingly, the same
is set aside.
4. The Civil Revision Petition is allowed and the matter is
remitted to the Lower Court for fresh disposal according C
to law. The Lower Court is directed to give notice to the
both parties in respect of the clarification required and the
amendment to be made and thereafter pass orders
regarding the amendment of the suit register, if required."
D
17. Strangely on such remand by the High Court, the
executing court did not hold any enquiry, nor gave any hearing
to parties as directed by the High Court. On the other hand a
rather strange communication dated 18.9.1996 was addressed
by the learned District Munsif to the learned counsel for the E
appellant and respondent herein :
"This is to inform you that regarding the order in
E.P.No.466of1974 in O.S.No.29 of 1971, the doubt was
cleared for the last order in E.P. by the then Presiding
officer by his letter dated 29.10.1985 i.e., "Defendant is F
an Agriculturist. E.P. is closed. Attachment to continue for
6 months". The same was omitted to be carried out in the
Suit Register by mistake on 29.10.1985 itself. Hence office
note put up on 19.07.1995 and as per order of District
Munsif the same was carried out in the suit register, after G
giving notice to the petitioner's advocate Thiru
S.Chandramouli in this Court's Memo in D.No. 393 dated
19.07.1995.
Now as per High Court's direction in C.R.P.No.2864 of
1995 dated 22.12.1995 this fresh notice is given to both H
884 SUPREME COURT REPORTS [2010] 10 S.C.R.
A the Advocates for making correction in the suit register as
well as in the certified copies if any obtained by the
Advocates. Hence both side advocates are directed to
produce the certified copies in E.P.No.466 of 1974 in
O.S.No.29 of 1971 (Suit Register Extract) on the file of this
B Court for making correction with in a week's time."
18. The High Court, while allowing the second appeal of
the respondent by the impugned judgment, has read the said
notice as an "order" reiterating the amendment made on
19.7.1995. The High Court has therefore proceeded on the
C basis that by order dated 15.2.1975, the executing court had
closed the execution proceedings in view of the enactment of
the Debt Relief Act and continued the attachment only for six
months and thereafter there was no attachment and therefore
the sales by Mokshammal on 17.2.1978 and 18.12.1980 were
D valid and the court auction sale in favour of the appellant was
invalid. The High Court clearly erred. Firstly when the Debt
Relief Act had clearly indicated that the attachment will continue
during the period when the execution proceedings were stayed,
it is ununderstandable how the executing c0•Jrt could make an
E order that the attachment will continue only for six months.
Secondly when the order dated 15.2.1975 stated "attachment
to continue", it is ununderstandable how the said order could
have been amended after 20 years without notice to the
plaintiff-decree holder on the basis of some private clarification
F letter dated 29.10.1985 allegedly written by the District Munsif
stating that the order made on 15.2.1975 was not "attachment
to continue" but "attachment to continue for six months". Thirdly
when said amendment order dated 19.7.1995 amending the
order dated 15.2.1975 was set aside by the High Court by
G order dated 22.12.1995 with a direction for fresh disposal in
accordance with law after notice to the parties, it is
ununderstandable how the learned District Munsiff, instead of
complying with the order of the High Court, could have issued
a notice dated 18.9.1996 to both counsel stating that the said
H correction adding the words "for six months" was required to
C.S. MANI (D) BY LR v. B. CHINNASAMY NAIDU 885
(DECEASED) BY LRS. [R.V. RAVEENDRAN, J.]
be made in the certified copies, if any obtained by the A
Advocates, and that both side Advocates should produce the
certified copies in EP No. 466 of 1974 for making the
correction. The notice dated 18.9.1996, by no stretch of
imagination could be construed as an order after haring as
directed by the High Court by its order dated 22.12.1995. The B
notice dated 18.9.1996 was apparently issued under an
erroneous impression that the High Court had accepted the
correction, but had directed making of the correction in the
certified copies after notice to the parties. The amendment
made pursuant to the office note dated 19.7.1995 having been c
set aside by order dated 22.12.1995, and no further order
having been made thereafter by the executing court, the
unauthorized addition of the words "for six months" in the order
dated 15.2.1975 have to be ignored and excluded.
conclusion D
.19. Therefore the attachment dated 29.12.197 4 continued
till .the property was sold by public auction on 6.6.1984 and
confirmed on 30.7.1985. Consequently any sale by the
judgment debtor Mokshammal, during the subsistence of the
E
attachment was void insofar as the decree obtained by the
appellant. Therefore it has to be held that neither the purchasers
from Mokshammal nor the respondent who is the subsequent
transferee, obtained any title in pursuance of the sales, as the
sales were void as against the claims enforceable under the
attachment.
F
20. In view of the above this appeal is allowed and the
order of the High Court is set aside and the order of the first
appellate court confirming the dismissal of the respondent's suit
stands restored and confirmed. G
D.G Appeal allowed.
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