Examination of judgment-debtor as to his property
Full Text
(1) Where a decree is for the payment of money the decree-holder may apply to the Court for an order that—
(a) the judgment-debtor, or
(b) where the judgment-debtor is a corporation, any officer thereof, or
(c) any other person,
be orally examined as to whether any or what debts are owing to the judgment-debtor and whether the judgment-debtor has any and what other property or means of satisfying the decree; and the Court may make an order for the attendance and examination of such judgment-debtor, or officer or other person, and for the production of any books or documents.
(2) Where a decree for the payment of money has remained unsatisfied for a period of thirty days, the Court may, on the application of the decree-holder and without prejudice to its power under sub-rule (1), by order require the judgment-debtor or where the judgment-debtor is a corporation, any officer thereof, to make an affidavit stating the particulars of the assets of the judgment-debtor.
(3) In case of disobedience of any order made under sub-rule (2), the Court making the order, or any Court to which the proceeding is transferred, may direct that the person disobeying the order be detained in the civil prison for a term not exceeding three months unless before the expiry of such term the Court directs his release.
Plain English Summary
Empowers the executing court to orally examine the judgment-debtor or corporate officers regarding assets, mandate a detailed affidavit of assets (Form 16A) if decree is unpaid for 30 days, and punish non-disclosure with up to 3 months' civil imprisonment.
Key Legal Elements
- Oral Examination (Sub-rule 1): Compelling debtor or company directors to disclose debts, bank accounts, and properties.
- Affidavit of Assets (Sub-rule 2): Triggered after 30 days of unsatisfied money decree.
- Production of Books & Accounts: Court can summon income tax returns, audited balance sheets, and passbooks.
- Three Months Civil Contempt Detention (Sub-rule 3): Disobedience of asset disclosure order leads directly to civil prison.
Practical Note
The Ultimate Weapon Against Evasive Debtors: 1. Landmark Authorities - Bhandari Engineers & Builders Pvt. Ltd. v. Maharia Raj Joint Venture (Delhi HC 2020) & Rahul S. Shah v. Jinendra Kumar Gandhi (2021) 6 SCC 418: The Supreme Court and Delhi High Court laid down comprehensive guidelines mandating judgment-debtors to file affidavits of assets in exhaustive formats covering bank accounts, PAN, properties, movable assets, shareholdings, and credit cards. 2. Incarceration under Rule 41(3): If the debtor conceals assets or fails to file the affidavit within the stipulated time, the court can commit him to civil prison for up to 3 months purely for disobedience, completely separate from Section 51 arrest!
हिंदी पाठ
(1) जहां डिक्री धन के संदाय के लिए है वहां डिक्रीदार इस आदेश के लिए न्यायालय को आवेदन कर सकेगा कि—
(क) निर्णय-ऋणी, या
(ख) जहां निर्णय-ऋणी कोई निगम है वहां उसका कोई अधिकारी, या
(ग) कोई अन्य व्यक्ति,
इस बारे में मौखिक रूप से परीक्षित किया जाए कि क्या कोई और कौन से ऋण निर्णय-ऋणी को शोध्य हैं और क्या निर्णय-ऋणी के पास डिक्री की तुष्टि के लिए कोई और कौन सी अन्य संपत्ति या साधन हैं; और न्यायालय उसकी उपसंजाति व परीक्षा तथा बहियों या दस्तावेजों को पेश करने का आदेश दे सकेगा।
(2) जहां धन के संदाय की डिक्री तीस दिन की अवधि तक असंतुष्ट रही है, वहां न्यायालय डिक्रीदार के आवेदन पर निर्णय-ऋणी को या उसके अधिकारी को अपनी आस्तियों (Assets) की विशिष्टियां बताते हुए शपथपत्र (Affidavit of Assets) दाखिल करने की अपेक्षा कर सकेगा।
(3) उप-नियम (2) के अधीन किए गए आदेश की अवज्ञा की दशा में न्यायालय आदेश की अवज्ञा करने वाले व्यक्ति को तीन मास से अनधिक की अवधि के लिए सिविल कारागार में निरुद्ध करने का निदेश दे सकेगा।