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of <h1>Supreme Court Reinstates Attachment in Title Execution Case: Protecting Decree Holders' Rights</h1> <h3>Nancy John Lyndon Versus Prabhati Lal Chowdhury & Ors.</h3> Nancy John Lyndon Versus Prabhati Lal Chowdhury & Ors. - 1987 AIR 2061, 1987 SCR (3) 1038, 1987 SCC (4) 78, JT 1987 (3) 366, 1987 SCALE (2) 413 Issues:1. Validity of property sales during the subsistence of attachment.2. Interpretation of Section 64 of the Code of Civil Procedure.3. Effect of restoration of Title Execution Case on attachment.4. Impact of judicial orders on third-party rights.5. Relevance of Calcutta High Court Rule 57 amendment.Issue 1: Validity of property sales during the subsistence of attachment:The appellant contended that property sales during the attachment period were void under Section 64 of the Code of Civil Procedure. The sales occurred before the Title Execution Case was dismissed for default, and the subsequent restoration of the case revived the attachment. The argument was based on the principle that any transfer during an attachment is void against claims enforceable under the attachment.Issue 2: Interpretation of Section 64 of the Code of Civil Procedure:Section 64 prohibits private transfers or payments contrary to an attachment. The provision aims to protect the rights of decree holders by invalidating transactions made during an attachment period. The explanation to the section clarifies its scope and applicability in attachment scenarios.Issue 3: Effect of restoration of Title Execution Case on attachment:The judgment analyzed the impact of restoring the Title Execution Case on the attachment status. It cited precedents from Madras and Bombay High Courts to support the view that restoration of a case revives all ancillary orders, including attachments. The restoration was deemed to retroactively reinstate the attachment during its subsistence period.Issue 4: Impact of judicial orders on third-party rights:The judgment distinguished the case law regarding the revival of execution proceedings and its effect on third-party rights. It emphasized that restoration of an execution application does not prejudice the rights of bona fide purchasers who acquired property assuming the orders were valid. The rights of strangers who acquired title during a non-attachment period were protected.Issue 5: Relevance of Calcutta High Court Rule 57 amendment:The judgment discussed the amendment to Rule 57 of Order 21 by the Calcutta High Court, which allowed the court to continue an attachment despite dismissing an execution application. However, the amendment did not alter the fundamental principle that restoration of a case revives attachments and ancillary orders.In conclusion, the Supreme Court allowed the appeal, overturning the Calcutta High Court's judgment. It held that the restoration of the Title Execution Case reinstated the attachment, rendering the property sales during the attachment period void. The decision reaffirmed the importance of protecting decree holders' rights during execution proceedings and clarified the legal implications of attachment and restoration in civil cases.
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