Where defendant may be called upon to furnish security for production of property
Full Text
(1) Where, at any stage of a suit, the Court is satisfied, by affidavit or otherwise, that the defendant, with intent to obstruct or delay the execution of any decree that may be passed against him,—
(a) is about to dispose of the whole or any part of his property, or
(b) is about to remove the whole or any part of his property from the local limits of the jurisdiction of the Court,
the Court may direct the defendant, within a time to be fixed by it, either to furnish security, in such sum as may be specified in the order, to produce and place at the disposal of the Court, when required, the said property or the value of the same, or such portion thereof as may be sufficient to satisfy the decree, or to appear and show cause why he should not furnish security.
(2) The plaintiff shall, unless the Court otherwise directs, specify the property required to be attached and the estimated value thereof.
(3) The Court may also in the order direct the conditional attachment of the whole or any portion of the property so specified.
(4) If an order of attachment is made without complying with the provisions of sub-rule (1) of this rule, such attachment shall be void.
Plain English Summary
Governs Attachment Before Judgment (ABJ); empowers the court to demand security for producing property or pass conditional attachment if the defendant attempts to dispose of or remove assets to defeat a decree, making non-compliant attachments void under sub-rule (4).
Key Legal Elements
- Two-Pronged Grounds: Defendant about to (a) dispose of property, or (b) remove property from jurisdiction.
- Mala Fide Intent to Obstruct/Delay: Positive evidence of intent to defeat execution is an indispensable jurisdictional prerequisite.
- Specification and Valuation (Sub-rule 2): Plaintiff must specifically identify the property and furnish its estimated market value.
- Conditional Attachment (Sub-rule 3): Court can order simultaneous conditional attachment pending the show cause notice.
- Sub-rule (4) Voidness Sanction (1976 Amendment): Any attachment levied without issuing show cause notice or satisfying sub-rule (1) is absolute nullity.
Practical Note
Supreme Court Benchmark on Attachment Before Judgment: 1. Extraordinary Power — Raman Tech. & Process Engg. Co. v. Solanki Traders (2008) 2 SCC 302: The Supreme Court held that Order XXXVIII Rule 5 is a drastic and extraordinary power. It must not be exercised mechanically or used as a tool of coercion to force an advance settlement or convert an unsecured debt into a secured one. The plaintiff must establish: (a) a prima facie bona fide claim, and (b) clear, cogent, positive evidence of overt acts by the defendant showing an imminent attempt to dissipate or alienate assets with intent to defeat the decree. 2. Sub-rule (4) Fatal Consequence: Added by the 1976 CPC Amendment, Sub-rule (4) renders any attachment made in violation of Sub-rule (1) void ab initio. A direct order of attachment without calling upon the defendant to furnish security or show cause is an incurable nullity.
हिंदी पाठ
(1) जहां वाद के किसी भी प्रक्रम में न्यायालय का शपथपत्र द्वारा या अन्यथा यह समाधान हो जाता है कि प्रतिवादी अपने विरुद्ध पारित की जाने वाली किसी डिक्री के निष्पादन में बाधा डालने या विलंब करने के आशय से,—
(क) अपनी संपूर्ण संपत्ति या उसके किसी भाग का व्ययन करने वाला है, अथवा
(ख) अपनी संपूर्ण संपत्ति या उसके किसी भाग को न्यायालय की अधिकारिता की स्थानीय सीमाओं से हटाने वाला है,
वहां न्यायालय प्रतिवादी को अपने द्वारा नियत समय के भीतर या तो आदेश में विनिर्दिष्ट राशि में ऐसी प्रतिभूति देने का निदेश दे सकेगा कि वह अपेक्षित होने पर उक्त संपत्ति या उसके मूल्य को अथवा उसके ऐसे भाग को जो डिक्री की तुष्टि के लिए पर्याप्त हो न्यायालय के समक्ष पेश करेगा और उसके व्ययनाधीन रखेगा, अथवा न्यायालय के समक्ष उपस्थित होकर हेतुक दर्शित करने का निदेश दे सकेगा कि वह प्रतिभूति क्यों न दे।
(2) वादी, जब तक कि न्यायालय अन्यथा निदेश न दे, कुर्क किए जाने के लिए अपेक्षित संपत्ति और उसके अनुमानित मूल्य को विनिर्दिष्ट करेगा।
(3) न्यायालय आदेश में इस प्रकार विनिर्दिष्ट संपत्ति के संपूर्ण या किसी भाग की सशर्त कुर्की (Conditional attachment) का निदेश भी दे सकेगा।
(4) यदि कुर्की का कोई आदेश इस नियम के उप-नियम (1) के उपबंधों का अनुपालन किए बिना किया जाता है, तो ऐसी कुर्की शून्य (Void) होगी।