Expedited Enforcement Proceedings: Rahul S Shah v Jinendra Kumar Gandhi & Ors1

Noting the difficulties that can be faced in enforcing judgments, the Supreme Court has issued directions for enforcement proceedings to be expedited.

Facts

In a property related suit, the judgment debtors obstructed enforcement by creating conflicting rights over the property, filing objections, appeals, criminal proceedings, etc. Various writ petitions were filed by the judgment debtors and third parties objecting against the decree and the orders dismissing these petitions were challenged at the Supreme Court.

The Supreme Court's Decision

The Supreme Court noted the misuse of the Code of Civil Procedure 1908 (CPC) to prevent or delay enforcement and issued directions to all courts dealing with enforcement proceedings:

  1. Property Suits: Courts must identify the property and the status of any third-party rights before judgment. If there may be third party rights, then the third parties should be impleaded so that issues can be resolved before judgment, and enforcement is not delayed.
  1. Money Suits: Before judgment, courts may require defendants to disclose their assets through affidavits and after judgment courts must "invariably" arrest the judgment debtor to ensure immediate execution. At any stage, the courts may demand security to ensure that a judgment can be satisfied.
  1. Courts should not entertain applications and objections against a decree if the issues have or could have been raised before judgment.
  1. Courts may attach the properties of persons "from whom [a judgment debtor] may have the ability to derive share, profit or property."
  1. Enforcement proceedings must be completed within 6 months, with extensions being allowed only by giving cogent reasons in writing.
  1. The taking of evidence should be allowed only in exceptional cases.
  1. Courts must award costs and even arrest2 in cases of frivolous or mala fide Police assistance may be called on where required.

The Supreme Court has directed all High Courts to update their rules in relation to enforcement proceedings within 1 year.

Footnote

1 Decision dated 22 April 2021 passed by the Supreme Court of India in Civil Appeal No 1659-1660 of 2021.

2 Order XXI Rule 98(2) of the CPC: "... where the applicant is still resisted or obstructed in obtaining possession, the Court may also, at the instance of the applicant, order the judgment-debtor, or any person acting at his instigation or on his behalf, to be detained in the civil prison for a term which may extend to thirty days."

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