Proceeds of execution sale to be rateably distributed among decree-holders

 Code of Civil Procedure Section 

DISTRIBUTION OF ASSETS

73. Proceeds of execution sale to be rateably distributed among decree-holders.—(1) Where assets are held by a Court and more persons than one have, before the receipt of such assets, made application to the Court for the execution of decrees for the payment of money passed against the same judgment-debtor and have not obtained satisfaction thereof, the assets, after deducting the costs of realization, shall be rateably distributed among all such persons:

Provided as follows :—

(a) where any property is sold subject to a mortgage or charge, the mortgage or incumbrancer shall not be entitled to share in any surplus arising from such sale;

(b) where any property liable to be sold in execution of a decree is subject to a mortgage or charge, the Court may, with the consent of the mortgagee or incumbrancer, order that the property be sold free from the mortgage or charge, giving to the mortgagee or incumbrancer the same interest in the proceeds of the sale as he had in the property sold;

(c) where any immovable property is sold in execution of a decree ordering its sale for the discharge of an incumbrance thereon, the proceeds of sale shall be applied—

First, in defraying the expenses of the sale;

Secondly, in descharging the amount due under the decree;

Thirdly, in discharging the interest and principal monies due on subsequent incumbrances (if any); and

Fourthly, rateably among the holders of decrees for the payment of money against the judgement-debtor, who have, prior to the sale of the property, applied to the Court which passed the decree ordering such sale for execution of such decrees, and have no obtained satisfaction thereof.

(2) Where all or any of the assets liable to be rateably distributed under this section are paid to a person not entitled to receive the same, any person so entitled may sue such person to compel him to refund the assets.

(3) Nothing in this section affects any right of the Government.

Code of Civil Procedure Section

Power for State Government to make rules as to sales of land in execution of decrees for payment of money

 

Code of Civil Procedure Section

 

 

67. Power for State Government to make rules as to sales of land in execution of decrees for payment of money. —

¹[(1)] The State Government ²*** may, by notification in the Official Gazette, make rules for any local area imposing conditions in respect of the sale of any class of interests in land in execution of decrees for the payment of money, where such interest are so uncertain or undetermined as, in the opinion of the State Government, to make it impossible to fix their value.

³[(2) When on the date on which this Code came into operation in any local area, any special rules as to sale of and in execution of decrees were in force therein, the State Government may, by notification in the Official Gazette declare such rules to be in force, or may ²*** by a like notification, modify the same. Every notification issued in the exercise of the powers conferred by this sub-section shall set out the rules so continued or modified.]

⁴[(3) Every rule made under this section shall be laid, as soon as may be after it is made, before the State Legislature.]

Note: 1. Section 67 renumbered as sub-section (1) by Act 1 of 1914, s. 3.

2. The words “with the previous sanction of the G.G. in C.” omitted by Act 38 of 1920, s. 2 and the Schedule, Pt. 1.

3. Added by Act 1 of 1914, s. 3.

4. Ins. by Act 20 of 1983, s. 2 and the Schedule (w.e.f. 15-3-1984).

 

Code of Civil Procedure Section

Purchaser's title

 

Code of Civil Procedure Section

 

SALE

65. Purchaser's title.— Where immovable property is sold in execution of a decree and such sale has become absolute, the property shall be deemed to have vested in the purchaser from the time when the property is sold and not from the time when the sale becomes absolute.

¹* * * * *

Note 1: S. 66 rep. by Act 45 of 1988. s. 7 (w.e.f. 19-5-1988).

 

Code of Civil Procedure Section

 

Private alienation of property after attachment to be void

 

Code of Civil Procedure Section

 

64. Private alienation of property after attachment to be void. —

¹[(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 moines contrary to such attachment, shall be void as against all claims enforceable under the attachment.

²[(2) Nothing in this section shall apply to any private transfer or delivery of the property attached or of any interest therein, made in pursuance of any contract for such transfer or delivery entered into and registered before the attachment.]

Explanation. —For the purpose of this section, claims enforceable under an attachment include claims for the rateable distribution of assets.

Note: 1. S. 64 renumbered as sub-section (1) by Act 22 of 2002, s. 3 (w.e.f. 1-7-2002).

2. Ins. by s. 3, ibid. (w.e.f. 1-7-2002).

 

Code of Civil Procedure Section

 

Property attached in execution of decrees of several Courts

 

Code of Civil Procedure Section

 

63. Property attached in execution of decrees of several Courts.—

(1) Where property not in the custody of any Court is under attachment in execution of decrees of more Courts than one, the Court which shall receive or realize such property and shall determine any claim thereto and any objection to the attachment thereof shall be the Court of highest grade, or, where there is no difference in grade between such Courts, the Court under whose decree the property was first attached.

(2) Nothing in this section shall be deemed to invalidate any proceeding taken by a Court executing one of such decrees.

¹[Explanation.—For the purposes of sub-section (2), “proceeding taken by a Court” does not include an order allowing, to a decree-holder who has purchased property at a sale held in execution of a decree, set off to the extent of the purchase price payable by him.]

Note 1: The Explanation ins. by Act 104 of 1976, s. 24 (w.e.f. 1-2-1977).

 

Code of Civil Procedure Section

Seizure of property in dwelling-house

 

Code of Civil Procedure Section

 

62. Seizure of property in dwelling-house.—

(1) No person executing any process under this Code directing or authorizing seizure of movable property shall enter any dwelling-house after sunset and before sunrise.

(2) No outer door of a dwelling-house shall be broken open unless such dwelling-house is in the occupancy of the judgment-debtor and he refuses or in any way prevents access thereto, but when the person executing any such process has duly gained access to any dwelling-house, he may break open the door of any room in which he has reason to believe any such property to be.

(3) Where a room in a dwelling-house is in the actual occupancy of a woman who, according to the customs of the country, does not appear in public, the person executing the process shall give notice to such woman that she is at liberty to withdraw; and, after allowing reasonable time for her to withdraw and giving her reasonable facility for withdrawing, he may enter such room for the purpose of seizing the property, using at the same time every precaution, consistent with these provisions, to prevent its clandestine removal.

 

Code of Civil Procedure Section

Partial exemption of agricultural produce

 

Code of Civil Procedure Section

 

61. Partial exemption of agricultural produce.—

The State Government ¹*** may, by general or special order published in the Official Gazette, declare that such portion of agricultural produce, or of any class of agricultural produce, as may appear to the State Government to be necessary for the purpose of providing until the next harvest for the due cultivation of the land and for the support of the judgment-debtor and his family, shall, in the case of all agriculturists or of any class of agriculturists, be exempted from liability to attachment or sale in execution of a decree.

Note 1: The words “with the previous sanction of the G.G. in C.” omitted by Act 38 of 1920, s. 2 and the First Schedule. Pt 1.

 

Code of Civil Procedure Section