Attachment before judgment not to affect rights of strangers, nor bar decree-holder from applying for sale
Full Text
Attachment before judgment shall not affect the rights, existing prior to the attachment, of persons not parties to the suit, nor bar any person holding a decree against the defendant from applying for the sale of the property under attachment in execution of such decree.
Plain English Summary
Protects pre-existing rights of third parties (e.g., prior agreements to sell) from being impaired by attachment before judgment, and clarifies that such attachment does not confer a charge or priority over other independent decree-holders seeking court sale.
Key Legal Elements
- Protection of Prior Third-Party Rights: Rights accrued prior to the date of attachment remain completely unaffected.
- Prior Agreement to Sell Protected: A purchaser under a registered agreement to sell entered before attachment prevails over the attaching plaintiff.
- No Charge or Lien Created: Attachment before judgment does not create any title, lien, or security interest in favour of the plaintiff.
- Independent Decree-Holders Can Sell: Other creditors holding decrees against the same defendant can attach and auction the property in execution.
- Rateable Distribution under Section 73 CPC: Sale proceeds realized are subject to rateable distribution among competing decree-holders.
Practical Note
Prior Agreement to Sell Prevails Over Attachment: 1. Supreme Court Landmark — Vannarakkal Kallalathil Sreedharan v. Chandramaath Balakrishnan (1990) 3 SCC 291: The Supreme Court held that an agreement to sell entered into prior to the order of attachment before judgment prevails over the attachment. Even if the sale deed is executed subsequent to the attachment in pursuance of the prior agreement, the title of the purchaser is protected by Order XXXVIII Rule 10. 2. Attachment Does Not Create a Charge: Attachment merely prevents private alienation by the debtor under Section 64 CPC; it does not confer any proprietary interest or mortgage charge upon the attaching plaintiff.
हिंदी पाठ
निर्णय के पूर्व कुर्की उन व्यक्तियों के अधिकारों को प्रभावित नहीं करेगी जो वाद के पक्षकार नहीं हैं और जो कुर्की से पूर्व विद्यमान थे, और न ही प्रतिवादी के विरुद्ध डिक्री धारण करने वाले किसी व्यक्ति को ऐसी डिक्री के निष्पादन में कुर्की के अधीन संपत्ति के विक्रय के लिए आवेदन करने से वर्जित करेगी।