Execution in case of cross-decrees
Full Text
(1) Where applications are made to a Court for the execution of cross-decrees in separate suits for the payment of two sums of money passed between the same parties and capable of execution at the same time by such Court, then—
(a) if the two sums are equal, satisfaction shall be entered upon both decrees; and
(b) if the two sums are unequal execution may be taken out only by the holder of the decree for the larger sum and for so much only as remains after deducting the smaller sum, and satisfaction for the smaller sum shall be entered on the decree for the larger sum as well as satisfaction on the decree for the smaller sum.
(2) This rule shall be deemed to apply where either party is an assignee of one of the decrees and as well in respect of judgment-debts due by the original assignor as in respect of judgment-debts due by the assignee himself.
(3) This rule shall not be deemed to apply unless—
(a) the decree-holder in one of the suits in which the decrees have been made is the judgment-debtor in the other and each party fills the same character in both suits; and
(b) the sums due under the decrees are definite.
(4) The holder of a decree passed against several persons jointly and severally may treat it as a cross-decree in relation to a decree passed against him singly in favour of one or more of such persons.
Plain English Summary
Enforces automatic equitable set-off between cross money decrees pending between identical parties in the same capacity, permitting execution only for the net balance.
Key Legal Elements
- Equal Decrees: Total mutual satisfaction entered.
- Unequal Decrees: Execution proceeds exclusively for the net surplus.
- Same Character Requirement: Parties must hold identical capacities (cannot set off personal debt against trust/estate decree).
- Definite Sums: Unascertained claims excluded.
Practical Note
Invoking Cross-Decree Set-off: If Plaintiff holds a decree of ₹10 lakhs against Defendant, but Defendant holds a decree of ₹6 lakhs against Plaintiff, file an application under Rule 18 in the executing court to record satisfaction of ₹6 lakhs and limit execution to the remaining ₹4 lakhs.
हिंदी पाठ
(1) जहां एक ही न्यायालय में उन्हीं पक्षकारों के बीच दो अलग-अलग वादों में धन की परस्पर विरोधी डिक्रियों (Cross-decrees) के निष्पादन हेतु आवेदन किए जाते हैं, वहां: (क) यदि दोनों रकमें बराबर हैं, तो दोनों डिक्रियों की पूर्ण तुष्टि दर्ज की जाएगी; और (ख) यदि रकमें असमान हैं, तो केवल बड़ी रकम वाले डिक्रीदार द्वारा छोटी रकम घटाकर शेष बचे अंतर के लिए निष्पादन कराया जा सकेगा।
(2) यह नियम समनुदेशिती (Assignee) पर भी लागू होगा।
(3) यह नियम तभी लागू होगा जब: (क) एक वाद का डिक्रीदार दूसरे में निर्णय-ऋणी हो और दोनों में पक्षकारों की विधिक हैसियत (Same character) समान हो; तथा (ख) देय रकमें निश्चित हों।
(4) संयुक्त व पृथक रूप से देनदार व्यक्तियों के विरुद्ध डिक्री को भी क्रॉस-डिक्री माना जा सकेगा।