Private alienation of property after attachment to be void
Full Text
(1) Where an attachment has been made, any private transfer or delivery of the property attached or of any interest therein and any payment to the judgment-debtor of any debt, dividend or other monies contrary to such attachment, shall be void as against all claims enforceable under the attachment.
(2) Nothing in this section shall apply to any private transfer or delivery of the property attached or of any interest therein, made in pursuance of any contract for such transfer or delivery entered into and registered before the attachment.
Explanation.—For the purpose of this section, claims enforceable under an attachment include claims for the rateable distribution of assets.
Plain English Summary
Section 64 renders any private transfer, alienation, mortgage, or delivery of attached property void as against all claims enforceable under the court's attachment (including rateable distribution under Section 73). Under sub-section (2), this invalidity does not affect transfers executed in pursuance of a bona fide agreement entered into and registered prior to the attachment.
Key Legal Elements
- Relative Voidness: Private alienation is void only as against the claims enforceable under the attachment, not void ab initio against the whole world.
- Enforceable Claims & Rateable Distribution: Protects the attaching decree-holder as well as other creditors entitled to rateable distribution under Section 73.
- Debtor Payments Prohibited: Direct debt repayments, dividends, or funds paid to the debtor contrary to an attachment are equally void.
- Prior Registered Contract Exception (Sec 64(2)): Specifically protects private conveyances executed pursuant to a valid contract to transfer entered into and registered prior to the attachment.
Practical Note
Relative Invalidation, Prior Agreements & Supreme Court Jurisprudence: (1) Void Only 'As Against the Attachment': The transfer is not void for all purposes; it is only inoperative to the extent necessary to satisfy the attaching decree. If the decree is satisfied or the attachment falls away, the private transfer remains valid between the judgment-debtor and the transferee. (2) Prior Registered Agreements (2002 Amendment): Section 64(2) resolved historical ambiguity: where an agreement to sell was entered into and registered prior to the attachment, subsequent execution of the sale deed prevails over the attachment (Vannarakkal Kallalathil Sreedharan v. Chandramaath Balakrishnan, SC). (3) Protection Against Collusive Alienations: Debtor tactics to alienate property to relatives or third parties post-attachment are rendered completely void in the eyes of the executing court, allowing court auctions to override subsequent private buyers.
हिंदी पाठ
(1) जहां कोई कुर्की की जा चुकी है, वहां कुर्क की गई संपत्ति का अथवा उसमें के किसी हित का कोई प्राइवेट अंतरण या परिदान और ऐसी कुर्की के प्रतिकूल किसी ऋण, लाभांश या अन्य धनों का निर्णीत-ऋणी को किया गया कोई संदाय, उस कुर्की के अधीन प्रवर्तनीय सभी दावों के विरुद्ध शून्य होगा।
(2) इस धारा की कोई भी बात कुर्क की गई संपत्ति के अथवा उसमें के किसी हित के ऐसे किसी प्राइवेट अंतरण या परिदान को लागू नहीं होगी, जो कुर्की से पूर्व किए गए और रजिस्ट्रीकृत ऐसे अंतरण या परिदान की किसी संविदा के अनुसरण में किया गया हो।
स्पष्टीकरण—इस धारा के प्रयोजन के लिए, कुर्की के अधीन प्रवर्तनीय दावों के अंतर्गत आस्तियों (संपत्तियों) के आनुपातिक वितरण के दावे भी शामिल हैं।