Case Note & Summary
The applicants, M/s. LA'Builde Associates, a partnership firm, were judgment creditors under an arbitral award dated 22nd April 2004 passed by sole arbitrator Shri S.R. Shah. The respondent, Bipinchandra Narandas Dalal, was a lunatic represented by his guardian and manager, Shri Anil Shantilal Parekh, appointed by the High Court in Lunacy Petition No. 4 of 1986. The applicants filed Chamber Summons No. 1170 of 2009 in Execution Application (L) No. 463 of 2009 seeking directions against the guardian to disclose on oath by affidavit whether any debts are owing to the respondent and whether the respondent had any property or means to satisfy the award, including details of assets, bank accounts, jewellery, shares, securities, investments, source of income, business/employment, and other profitable activities. They also sought production of books of account, statements, and income tax returns for the last ten years, and an order for arrest and detention of the guardian in civil prison for three months. The background facts included an agreement dated 15th May 1981 between the applicants and the respondent for sale of land, with Rs.3,20,000 paid as earnest money, leading to disputes referred to arbitration. The court considered the provisions of Order 21 Rule 41 of the Code of Civil Procedure, 1908, which allows the court to order the judgment debtor to make a disclosure of assets. The court held that the judgment creditor is entitled to the disclosure and production of documents as sought, in the form prescribed by Form No. 16A of Appendix E CPC. However, the court declined to order arrest and detention of the guardian at this stage, as there was no evidence of willful disobedience or non-compliance. The court granted liberty to the applicants to apply for arrest and detention if the guardian fails to comply with the disclosure order. The Chamber Summons was allowed in part.
Headnote
A) Civil Procedure - Execution of Decree - Disclosure of Assets - Order 21 Rule 41, Code of Civil Procedure, 1908 - Judgment creditor sought direction against guardian and manager of judgment debtor (a lunatic) to disclose assets and produce documents to facilitate execution of an arbitral award - Court held that the judgment creditor is entitled to such disclosure and production of documents as per Form No. 16A Appendix E CPC, but declined to order arrest and detention of the guardian at this stage, granting liberty to apply if disclosure is not made (Paras 1-3, 5-6).
Issue of Consideration
Whether the judgment creditor is entitled to an order directing the guardian and manager of the judgment debtor (a lunatic) to disclose assets and produce documents under Order 21 Rule 41 CPC, and whether arrest and detention of the guardian can be ordered for non-compliance.
Final Decision
Chamber Summons allowed in part. Guardian and manager directed to disclose on oath by affidavit all assets and produce documents as per Form No. 16A Appendix E CPC within four weeks. Liberty granted to applicants to apply for arrest and detention if disclosure is not made. No order as to costs.
Law Points
- Execution of arbitral award
- disclosure of assets by judgment debtor
- Order 21 Rule 41 CPC
- Form No. 16A Appendix E CPC
- arrest and detention in civil prison
- guardian and manager of lunatic judgment debtor
