KOTAK & CO. versus STATE OF U.P.

Once an order for rateable distribution is made by the executing court, monies cease to belong to the judgment-debtor and become the property of the decree-holder, and statutory priority claimed by the State after such order cannot override this position.

Parties: Appellant: Kotak & Co.; Respondent: State of U.P.
Jurisdiction: India
Judgment Date: 08 January 1987
Procedural Posture: Civil Appeal / Appeal Decided, Order of High Court Set Aside, Executing Court's Order Restored
Outcome: Appeal allowed. Order of High Court set aside, order of executing court restored as far as appellant is concerned.
Legal Topics: Rateable Distribution, Statutory Priority, Execution of Decrees

Civil Procedure Rateable Distribution Statutory Priority Execution of Decrees

Case Brief

Summary, issues, holding and outcome

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Full judgment text Legal principles 2 Authorities cited 5 Party arguments 2

Parties

Kotak & Co.

Appellant

State of U.P.

Respondent

Procedural Posture

Civil Appeal / Appeal Decided, Order of High Court Set Aside, Executing Court's Order Restored

Legal Issues

1 Whether monies cease to be the property of the judgment-debtor and become the property of the decree-holder from the time an order for rateable distribution is passed by the executing Court, regardless of whether actual payment is made
2 Whether the State can claim statutory priority after a court has made an order for rateable distribution

Ratio Decidendi

Court Disposition

Appeal allowed. Order of High Court set aside, order of executing court restored as far as appellant is concerned.

Orders

Order of High Court set aside in so far as appellant is concerned.
Order of executing court restored in so far as appellant is concerned.