The subject of property attachment and sale during the execution of a decree as governed by the Code of Civil Procedure, 1908 is an intricate one. For a comprehensive understanding, it is crucial to delve into Section 60 of the Code, which lays down the law on the topic. The analysts at SimranLaw, our esteemed law firm, have expertise in interpreting this section. They have poured in their years of experience into making this complex legal issue understandable for our readers.
Section 60: The Basics
Section 60 of the Code of Civil Procedure dictates the proceedings that occur when a decree holder seeks to execute their decree against the judgment debtor. This is done through the attachment and sale of the debtor’s property.
The section outlines the types of property that can be attached and sold as well as exemptions to those rules.
Types of Properties
Movable property within India, belonging to the judgement debtor.
Immovable property within India, belonging to the judgement debtor.
- Property required by the state or local authority for public purposes or a corporation owned by the state.
- Stipends or pensions.
- Property held in trust.
- Property of a female not liable in the hands of a male
Key Legal Precedents
- The Spectrum Case (2017)
In this case, the Supreme Court held that the assets of a subsidiary company could not be attached during proceedings against the parent company. This decision affirmed the independent legal status of a subsidiary company.
The Supreme Court clarified in this case that a municipal corporation’s property cannot be attached to satisfy a decree against it.
The Supreme Court opined that the shares held by a promoter in a company are not ‘personal assets’, and hence cannot be attached to recover any personal liability of the promoter.
Section 60 of the Code of Civil Procedure, 1908 provides a detailed framework for the attachment and sale of property in execution of decrees. By analyzing relevant case law, one can gain further insight into how these provisions are applied and interpreted in practical scenarios. The experts at SimranLaw are committed to providing lucid insights into such complex legal topics, bringing the law closer to the common man.