Bombay High Court Allows Decree Holder's Petition Challenging Executing Court's Order Permitting Judgment Debtor to Raise Pre-Decree Payment Defence. Pre-decree payments cannot be set up in execution under Section 47 CPC as they ought to have been raised in the suit.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
  • 2
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, Paackinindia, a registered partnership firm, obtained a decree in Special Summary Suit No. 58 of 2008 against the respondent, VSR Foods & Beverages Pvt. Ltd., for recovery of Rs. 2,10,270/- with future interest at 4% per annum. The decree was passed on 29th April 2009. When the petitioner filed execution proceedings (Special Darkhast No. 212 of 2009), the respondent filed an application at Exh. 14 under Section 47 read with Order 21 Rule 2 of the Code of Civil Procedure, 1908, claiming that it had made payments to the petitioner between 26th July 2004 and 21st January 2007, which fully satisfied the decreetal amount. The executing court allowed the application, directing the respondent to produce evidence. The petitioner challenged this order by way of a writ petition. The High Court noted that the suit was filed on 22nd April 2008 and the decree was passed on 29th April 2009, while the alleged payments were made between 2004 and 2007, i.e., prior to the decree. The court held that such pre-decree payments could not be raised in execution proceedings as they ought to have been taken as a defence in the written statement or in an application for leave to defend in the summary suit. The executing court cannot go behind the decree. Order 21 Rule 2 CPC applies only to payments or adjustments made after the decree. The impugned order was set aside, and the executing court was directed to proceed with execution in accordance with law.

Headnote

A) Civil Procedure - Execution of Decree - Section 47 read with Order 21 Rule 2 CPC - Pre-Decree Payments - The judgment debtor sought to prove payments made between 2004 and 2007, i.e., prior to the decree, in execution proceedings. The executing court allowed the judgment debtor to lead evidence. The High Court held that such pre-decree payments could not be raised in execution as they ought to have been taken as a defence in the suit. The executing court cannot go behind the decree. The order was set aside. (Paras 4-6)

B) Civil Procedure - Execution of Decree - Order 21 Rule 2 CPC - Scope - Order 21 Rule 2 CPC applies only to payments or adjustments made after the decree, not to pre-decree payments. The judgment debtor's application under Section 47 read with Order 21 Rule 2 CPC was misconceived as the alleged payments were prior to the decree. (Para 5)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether a judgment debtor can be permitted to raise a defence of payment made prior to the decree in execution proceedings under Section 47 read with Order 21 Rule 2 of the Code of Civil Procedure, 1908.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The High Court allowed the writ petition, set aside the impugned order of the executing court, and directed the executing court to proceed with execution in accordance with law.

Law Points

  • Execution proceedings cannot be used to reopen issues that were or ought to have been raised in the original suit
  • Pre-decree payments cannot be set up in execution under Section 47 CPC
  • Order 21 Rule 2 CPC applies only to post-decree adjustments
  • Executing court cannot go behind the decree
Subscribe to unlock Law Points Subscribe Now

Case Details

2011 LawText (BOM) (06) 84

Writ Petition No. 2648 of 2011

2011-06-07

D. G. Karnik

Mr. Ajay A. Basutkar for the Petitioner, Mr. Jyotishwar Bhosale for the Respondent

Paackinindia

VSR Foods & Beverages Pvt. Ltd.

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Writ petition challenging an order passed by the executing court in execution proceedings allowing the judgment debtor to lead evidence regarding pre-decree payments.

Remedy Sought

The petitioner (decree holder) sought to set aside the order of the executing court which permitted the respondent (judgment debtor) to produce evidence of payments made prior to the decree.

Filing Reason

The executing court allowed the judgment debtor's application under Section 47 read with Order 21 Rule 2 CPC to prove payments made before the decree, which the decree holder contended was impermissible.

Previous Decisions

The executing court passed an order on Exh. 14 in Special Darkhast No. 212 of 2009 directing the judgment debtor to produce evidence of payment.

Issues

Whether a judgment debtor can raise a defence of payment made prior to the decree in execution proceedings under Section 47 read with Order 21 Rule 2 CPC.

Submissions/Arguments

The petitioner argued that the payments alleged by the respondent were made prior to the decree and could not be raised in execution; they ought to have been taken as a defence in the suit. The respondent contended that the payments satisfied the decree and sought to lead evidence in execution.

Ratio Decidendi

Payments made prior to the decree cannot be set up in execution proceedings under Section 47 read with Order 21 Rule 2 CPC, as they ought to have been raised as a defence in the suit. The executing court cannot go behind the decree.

Judgment Excerpts

The payments that the respondent alleges to have made to the petitioner are made between the years 2004 to 2007 i.e. prior to the passing of the decree. The respondent could have and ought to have taken the defence of the alleged payments in the written statement and /or in the application for leave to defend. Order 21 Rule 2 of the CPC applies only to payments or adjustments made after the decree and not to payments made prior to the decree.

Procedural History

The petitioner filed Special Summary Suit No. 58 of 2008 for recovery of money, which was decreed on 29th April 2009. The petitioner then filed execution petition (Special Darkhast No. 212 of 2009). The respondent filed an application at Exh. 14 under Section 47 read with Order 21 Rule 2 CPC, which was allowed by the executing court. The petitioner challenged that order by way of Writ Petition No. 2648 of 2011 before the Bombay High Court.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 47, Order 21 Rule 2
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Gujarat High Court Quashes Disciplinary Termination Order Against Advocate in Service Matter — Violation of Natural Justice. Disciplinary Authority Failed to Provide Adequate Opportunity of Hearing and Relied on Ex-Parte Inquiry Report, Rendering T...
Related Judgement
High Court Bombay High Court Allows Decree Holder's Petition Challenging Executing Court's Order Permitting Judgment Debtor to Raise Pre-Decree Payment Defence. Pre-decree payments cannot be set up in execution under Section 47 CPC as they ought to have been ra...