Case Note & Summary
This appeal by special leave arose from an order of the Allahabad High Court dated 10-05-1996 in CR No. 352 of 1995. The dispute pertained to execution of a trial court decree obtained by the respondent against the appellant. The respondent had taken out execution of the trial court decree and also filed another revision, Revision No. 56-95, before the High Court, which granted stay of execution on 15-05-1995. Thereafter, the appellant's counsel, without knowledge, apparently made a statement in the executing court and the High Court that no revision had been filed against the order passed by the executing court. As a consequence, the impugned order directed enforcement of the decree and awarded exemplary costs. During the Supreme Court hearing, the respondent's counsel brought to the court's notice that the High Court had stayed the execution and that the appellant, under threat of contempt, had executed the sale deed in favour of the respondent. The Supreme Court observed that since the sale deed had already been registered in favour of the respondent in execution of the decree, it would not go into the question of the legality of the execution despite the stay order granted by the High Court in the revision. The Court noted that the dispute whether the respondent must pay at the rate of Rs. 500 per sq. yd. or Rs. 800 per sq. yd. was the subject matter of the pending appeal. Therefore, the execution of the sale deed was held to be subject to the result of that appeal. The Supreme Court further held that the imposition of exemplary costs of Rs. 25,000 by the High Court was not warranted on the facts of the case because the counsel's earlier statement was made without knowledge of the pending revision and stay order. Accordingly, the Supreme Court allowed the appeal to the extent of setting aside the exemplary costs and ordered no costs. The appeal was disposed of with the direction that the executed sale deed would be subject to the final outcome of the pending appeal.
Headnote
A) Execution - Stay of Execution - Effect of Sale Deed Registered During Stay - Not mentioned - Decree holder took execution of trial court decree while a revision with stay order was pending, and sale deed was executed and registered despite the stay, but the Supreme Court declined to examine the legality of execution because the sale deed had already been registered and the underlying appeal was pending - Held that execution of sale deed is subject to the result in the pending appeal (Paras Not mentioned). B) Costs - Exemplary Costs - Justifiability of Cost Award - Not mentioned - High Court awarded exemplary costs of Rs 25,000 based on appellant counsel's statement that no revision was filed, but that statement was made without knowledge due to misunderstanding, so the Supreme Court held the exemplary costs were not warranted and set aside the cost award - Held that exemplary costs are to be set aside (Paras Not mentioned).
Issue of Consideration
Whether the legality of execution of sale deed could be examined despite the High Court's stay order when the sale deed had already been registered; whether the High Court's imposition of exemplary costs of Rs 25,000 was justified
Final Decision
The Supreme Court allowed the appeal to the extent of setting aside the High Court's exemplary costs of Rs. 25,000, holding that they were not warranted. The Court declined to examine the legality of the execution because the sale deed had already been registered, and directed that the execution of the sale deed would be subject to the result of the pending appeal. No costs were ordered.
Law Points
- Execution of decree during subsistence of stay order is irregular
- registered sale deed in execution proceedings not to be reopened when underlying appeal is pending
- exemplary costs not justified when counsel statement made without knowledge of pending revision and stay order
