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The High Court refused an application to arrest and detain a company director in execution proceedings because no reasons justified proceeding against a non-party to the decree.
The respondent's alleged application to set aside the exparte award at CMA does not justify stay of execution, especially since it was not served to the applicant and no application for stay was filed before the court. The directors must be summoned to show cause why they should not be committed to prison for non-compliance with the CMA award.
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The executing court cannot entertain execution proceedings relating to the principal decretal sum and interest once satisfaction of decree is recorded, unless the satisfaction order is vacated. The judgment debtor remains liable for costs after taxation, but no evidence of bad faith exists to justify arrest and detention of directors.
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The High Court allowed a civil revision and set aside execution proceedings because the veil of incorporation had not been lifted before ordering arrest of company directors.
A formal application for lifting the corporate veil is necessary before execution can proceed against the personal capacity of a company's director who was not a party to the original suit; the application for execution by the advocate was proper under the Civil Procedure Code.
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