DHANI RAM GUPTA & ORS. versus LALA SRI RAM & ANR.

DHANI RAM GUPTA & ORS. versus LALA SRI RAM & ANR.

The adjustment/compromise between the judgment-debtor and transferor decree-holder, even after notice of the execution application under Order XXI Rule 16, does not bar execution of the decree by the transferee. Property in a decree passes on assignment, not by Court recognition. The High Court's contrary view was erroneous.

Parties
Appellant: Dhani Ram Gupta; Appellant: Dhani Ram Gupta & Ors.; Respondent: Lala Sri Ram; Respondent: Lala Sri Ram & Anr.
Jurisdiction
India
Judgment Date
07 December 1979
Procedural Posture
Civil Appeal / Appeal by Special Leave From Allahabad High Court Judgment and Order Dated 16 4 1976 in Execution Second Appeal No. 2162 of 1974
Outcome
Appeal allowed
Legal Topics
Assignment of Decrees, Execution of Decrees, Adjustment of Decrees, Code of Civil Procedure Order XXI Rule 16
Civil Procedure Assignment of Decrees Execution of Decrees Adjustment of Decrees Code of Civil Procedure Order XXI Rule 16

Case Brief

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Parties

Dhani Ram Gupta

Appellant

Dhani Ram Gupta & Ors.

Appellant

Lala Sri Ram

Respondent

Lala Sri Ram & Anr.

Respondent

Procedural Posture

Civil Appeal / Appeal by Special Leave From Allahabad High Court Judgment and Order Dated 16 4 1976 in Execution Second Appeal No. 2162 of 1974

Legal Issues

  1. 1 Whether adjustment/compromise between judgment-debtor and original decree-holder after notice bars execution by transferee/assignee of the decree under Order XXI Rule 16 of CPC
  2. 2 Does property in a decree pass to the assignee upon assignment, or only upon Court recognition

Ratio Decidendi

The adjustment/compromise between the judgment-debtor and transferor decree-holder, even after notice of the execution application under Order XXI Rule 16, does not bar execution of the decree by the transferee. Property in a decree passes on assignment, not by Court recognition. The High Court's contrary view was erroneous.

Court Disposition

Appeal allowed

Orders

  • Matter remitted to the High Court for decision upon the question whether there was in fact a transfer under the deed of assignment.
  • Costs as indicated.