Increase of security found inadequate
Full Text
(1) Where at any time during the pendency of the appeal the security furnished by either party appears inadequate, the Court may, on the application of the other party, require further security.
(2) In default of such further security being furnished as required by the Court,—
(a) if the original security was furnished by the appellant, the Court may, on the application of the respondent, execute the decree, appealed from as if the appellant had furnished no such security;
(b) if the original security was furnished by the respondent, the Court shall, so far as may be practicable, stay the further execution of the decree, and restore the parties to the position in which they respectively were when the security which appears inadequate was furnished, or give such direction respecting the subject-matter of the appeal as it thinks fit.
Plain English Summary
Regulates enhancement of security found inadequate during pendency of the appeal: failure by appellant allows execution of decree; failure by respondent stays further execution and triggers restitution to original status.
Key Legal Elements
- Inadequacy Discovered Pending Appeal: Property depreciates, bank guarantee expires, or surety becomes insolvent.
- Application by Either Party: Both appellant and respondent can be ordered to furnish enhanced security.
- Default by Appellant (Sub-rule 2a): Stay of execution vacated immediately; decree executed as if no security existed.
- Default by Respondent (Sub-rule 2b): Execution halted; restitution ordered to restore appellant to previous possession.
Practical Note
Monitoring Solvency of Security Pending Supreme Court Appeal: 1. Expiry of Bank Guarantees: Where interim stay was granted subject to a bank guarantee, respondent's counsel must verify whether the guarantee is being periodically renewed. If it lapses or depreciates, an immediate application under Rule 14(1) should be filed. 2. Consequence on Stay: If the appellant defaults under Rule 14(2)(a), the stay automatically collapses, and execution can proceed without further notice.
हिंदी पाठ
(1) जहां अपील के लंबित रहने के दौरान किसी भी समय किसी पक्षकार द्वारा दी गई प्रतिभूति अपर्याप्त प्रतीत होती है, वहां न्यायालय दूसरे पक्षकार के आवेदन पर अतिरिक्त प्रतिभूति की मांग कर सकेगा।
(2) न्यायालय द्वारा अपेक्षित ऐसी अतिरिक्त प्रतिभूति दिए जाने में व्यतिक्रम होने पर—
(क) यदि मूल प्रतिभूति अपीलार्थी द्वारा दी गई थी, तो न्यायालय प्रत्यर्थी के आवेदन पर उस डिक्री का जिसके विरुद्ध अपील की गई है निष्पादन ऐसे कर सकेगा मानो अपीलार्थी ने ऐसी कोई प्रतिभूति दी ही न थी;
(ख) यदि मूल प्रतिभूति प्रत्यर्थी द्वारा दी गई थी, तो न्यायालय जहां तक साध्य हो डिक्री के अतिरिक्त निष्पादन को रोक देगा, और पक्षकारों को उसी स्थिति में प्रत्यावर्तित कर देगा जिसमें वे तब थे जब वह प्रतिभूति दी गई थी जो अपर्याप्त प्रतीत होती है, अथवा अपील की विषय-वस्तु के संबंध में ऐसा निदेश देगा जैसा वह ठीक समझे।