Order XXI Rule 58 CPC – Claim Petition – Maintainability – Agreement of Sale
An application by a third-party claimant under Order XXI Rule 58 CPC to raise attachment is maintainable even where such claim is based on an agreement of sale, and the Executing Court is bound to adjudicate all questions relating to right, title or interest in the attached property. In the present case, the Executing Court entertained the application and adjudicated the same on merits. (Paras 18, 14)
Section 64 CPC – Pre-attachment Agreement – Requirement of Registration
Section 64(2) CPC protects transfers made in pursuance of a contract entered into and registered prior to attachment. Where the alleged agreement of sale is neither produced before the Court nor shown to be registered, the benefit under Section 64(2) CPC is not available and the attachment cannot be defeated. (Paras 15, 16, 21, 23)
Agreement of Sale – No Interest in Property
An agreement of sale, by itself, does not create any interest in the immovable property in view of Section 54 of the Transfer of Property Act. In the absence of a valid and proved agreement satisfying statutory requirements, no right can be claimed to defeat attachment proceedings. (Para 12)
Lok Adalat Award – Binding Effect – Third Party
An award passed in Lok Adalat binds only the parties to the proceedings and cannot bind the decree-holder who was not a party to such proceedings. (Para 12)
Attachment – Rights of Decree Holder – Fraudulent Attempt
Where the agreement of sale is not produced, not registered, and circumstances indicate close relationship between parties and an attempt to defeat the claim of the decree-holder, such plea cannot be accepted and the attachment must prevail. (Para 21)
Concurrent Findings – No Interference
The Executing Court, upon consideration of pleadings and evidence, rightly dismissed the claim petition and no illegality or irregularity is found warranting interference in appeal. (Paras 23, 24)
Result
Appeal Suit dismissed. No order as to costs. Pending miscellaneous applications, if any, stand closed. (Para 25)
No comments:
Post a Comment