Bombay High Court Dismisses Judgment Debtor in Execution Proceedings - Order XXI Rule 29 CPC Stay Application Rejected as Suit Not Pending in Same Court. Suit for Injunction Filed by Legal Representatives of Deceased Judgment Debtor Cannot Stay Execution of Decree Attained Finality Up to Supreme Court as Requirements of Order XXI Rule 29 Not Met.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The dispute arose from a suit for specific performance and cancellation of a sale deed (RCS No. 319 of 2000) filed by late Balu Bhuji Lale against Anant Lale, a subsequent purchaser. The trial court partly decreed the suit, refusing specific performance but awarding damages. In appeal, the first appellate court reversed the decree, granting specific performance and cancelling the sale deed in favour of Anant Lale. Anant Lale's second appeal and special leave petition were dismissed in 2008, rendering the decree final up to the Supreme Court. Execution proceedings (RD Application No. 81 of 2008) were initiated before the Civil Judge, Junior Division, Jaysingpur. Anant Lale died in 2015, and the petitioners, his legal representatives, were brought on record. In 2016, the petitioners instituted a fresh suit (RCS No. 229 of 2016) in the Court of Civil Judge, Senior Division, Jaysingpur, seeking an injunction to restrain the decreeholders from taking forcible possession of the property otherwise than by due process of law. Thereafter, they filed an application (Exhibit 65) in the execution proceedings under Order XXI Rule 29 CPC, seeking stay of the execution until the disposal of their suit. The executing court dismissed that application on 3 February 2017, leading to the present writ petition. The petitioners argued that Order XXI Rule 29 mandates a stay whenever a suit is pending by the judgment debtor against the decreeholder, irrespective of the type of suit or the court in which it is filed, and that the executing court failed to exercise its discretion properly. The respondents contended that the application was an abuse of process, as the decree had attained finality, and the suit was filed in a different court. They argued that the decreeholders were executing the decree through court process, which is due process, and the suit was misconceived. The High Court held that under Order XXI Rule 29 CPC, the suit must be pending in the same court where the execution proceedings are pending, and the suit must be against the holder of a decree of that court. Relying on Shaukat Hussain v. Bhuneshwari Devi, AIR 1973 SC 528, the Court interpreted 'such court' to mean the court in which the suit is pending, requiring both proceedings to be in one court. Here, the suit was before the Senior Division while the execution was before the Junior Division, so the precondition was not satisfied. Moreover, the suit for injunction was wholly misconceived because the decreeholders were only taking steps through the execution court. The Court found that the executing court had correctly exercised its discretion in refusing to stay the execution. Consequently, the writ petition was dismissed with no order as to costs, and any interim relief stood vacated.

Headnote

A) Interpretation of Statutes - Code of Civil Procedure, 1908 - Order XXI Rule 29 - Meaning of 'such court' - The expression 'such court' in Order XXI Rule 29 CPC refers to the court in which the suit is pending, and the suit must be against the holder of a decree of that court - Held that there must be simultaneously two proceedings in one court: an execution at the instance of the decreeholder and a suit at the instance of the judgment debtor against the decreeholder; the rule does not apply if the suit is pending in a different court (Paras 18, 20-22).

B) Civil Procedure - Execution Proceedings - Stay of Execution - Discretion under Order XXI Rule 29 CPC - The power to stay execution is discretionary and must be exercised to prevent abuse of process; if the suit filed by the judgment debtor is prima facie misconceived or an abuse, stay may be refused - Held that the suit for injunction simplicitor against decreeholders praying that they be restrained from taking forcible possession otherwise than by due process of law was entirely misconceived because the decreeholders were executing the decree through court process, which is due process of law (Paras 19, 22).

C) Execution Proceedings - Effect of Finality of Decree - Subsequent Suits by Legal Representatives - When a decree has attained finality up to the Supreme Court and the judgment debtor did not challenge the decree or seek stay for a prolonged period, legal representatives stepping into his shoes cannot delay execution by instituting a frivolous suit and seeking stay under Order XXI Rule 29 CPC - Held that the executing court rightly declined to stay the execution proceedings pending since 2008 (Paras 15-17, 22).

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Issue of Consideration

Whether the executing court was justified in rejecting the application under Order XXI Rule 29 CPC for stay of execution of decree in RCS No. 319 of 2000 pending disposal of RCS No. 229 of 2016, and whether the requirements of Order XXI Rule 29 were satisfied.

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Final Decision

The writ petition is dismissed. The impugned order dated 3 February 2017 passed by the executing court is upheld. There shall be no order as to costs. Interim relief, if any, stands vacated.

Law Points

  • Order XXI Rule 29 CPC requires the suit by judgment debtor to be pending in the same court where execution proceedings are pending
  • the expression 'such court' means the court where the suit is pending
  • discretion under Order XXI Rule 29 must be exercised to prevent abuse of process
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Case Details

2018 LawText (BOM) (03) 47

Writ Petition No. 9418 of 2017

2018-03-01

M.S. Sonak, J.

2018:BHC-AS:6631

P. M. Arjunwadkar for Petitioners, Surel Shah for Respondents Nos.1 to 4

Kum. Aniket Anant Lale & Ors.

Shri. Prakash Balu Lale & Ors.

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Nature of Litigation

Writ petition under Article 227 challenging the order of the executing court rejecting the application for stay of execution under Order XXI Rule 29 CPC.

Remedy Sought

Petitioners (legal representatives of judgment debtor) sought to set aside the impugned order dated 3 February 2017 and to stay the execution of the decree in RCS No. 319 of 2000 pending disposal of their suit RCS No. 229 of 2016.

Filing Reason

The executing court misinterpreted the scope of Order XXI Rule 29 CPC and failed to exercise jurisdiction or exercised it with material irregularity.

Previous Decisions

RCS No. 319 of 2000: trial court partly decreed, first appellate court reversed and granted specific performance and cancelled sale deed; second appeal and SLP dismissed in 2008, decree final. Execution proceedings pending. Application Exhibit 65 in execution dismissed on 3 February 2017 by Civil Judge, Junior Division, Jaysingpur.

Issues

Whether the executing court erred in rejecting the application under Order XXI Rule 29 CPC for stay of execution of the decree in RCS No. 319 of 2000 pending disposal of RCS No. 229 of 2016. Whether the suit filed by the judgment debtor's legal representatives satisfied the requirement of Order XXI Rule 29 that the suit should be pending in the same court as the execution proceedings.

Submissions/Arguments

Petitioners contended that Order XXI Rule 29 CPC is mandatory once any suit is pending by the judgment debtor against the decreeholder, regardless of the type of suit or the court where it is filed, and that the executing court failed to exercise discretion properly. Respondents argued that the application was an abuse of process; the decree had attained finality up to the Supreme Court; the sale deed had been declared void; the petitioners' suit for injunction was misconceived as the decreeholders were executing the decree through due process; and the precondition of a suit pending in the same court was not fulfilled.

Ratio Decidendi

For a stay of execution under Order XXI Rule 29 CPC, the suit by the judgment debtor must be pending in the same court where the execution proceedings are pending, and the suit must be against the holder of a decree of that court. The expression 'such court' in the rule means the court in which the suit is pending. A suit for injunction simplicitor against the decreeholder claiming that they cannot take forcible possession otherwise than by due process of law is misconceived when the decreeholder is executing the decree through the court process. The executing court's discretion under Order XXI Rule 29 must be exercised to prevent abuse of process.

Judgment Excerpts

The petitioners' application at Exhibit 65 invoking the provisions of Order XXI Rule 29 of the CPC was entirely misconceived and therefore was rightly dismissed by the executing court by the impugned order. From the plain reading of the provisions of Order XXI Rule 29 of the CPC it is quite clear that a judgment debtor may invoke the provisions of Order XXI Rule 29 of the CPC only when the suit is pending in any court against the decreeholder of such court or of a decree which is being executed by such court. This means that the suit and the execution proceedings must be pending in one and the same court in order to invoke the provisions of Order XXI Rule 29 of the CPC. The expression 'such court' as it appears in Order XXI Rule 29 of the CPC has been interpreted by the Hon'ble Supreme Court in the case of Shaukat Hussain @ Ali Akram & Ors. vs. Bhuneshwari Devi (dead) by L.Rs. & Ors. to mean the Court in which the suit is pending.

Procedural History

Balu Bhuji Lale instituted RCS No. 319 of 2000 for specific performance and cancellation of sale deed in favour of Anant Lale. The trial court partly decreed the suit (declined specific performance, awarded damages). The first appellate court reversed and granted specific performance and cancelled the sale deed. Anant Lale's second appeal and special leave petition were dismissed in 2008, and the decree attained finality. Execution proceedings (RD Application No. 81 of 2008) were pending in the Court of Civil Judge, Junior Division, Jaysingpur. Anant Lale died in 2015, and the petitioners, his legal representatives, were brought on record. In 2016, the petitioners filed RCS No. 229 of 2016 in the Court of Civil Judge, Senior Division, Jaysingpur, seeking injunction against the decreeholders. Subsequently, the petitioners filed application Exhibit 65 in the execution proceedings under Order XXI Rule 29 CPC, which was dismissed by the executing court on 3 February 2017. The petitioners then filed the present writ petition challenging that order.

Acts & Sections

  • Code of Civil Procedure, 1908: Order XXI Rule 29
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