Report No. 27
Order XXI, rules 58 to 63
In Order XXI of the First Schedule to the principal Act, for rules 58 to 63 (both inclusive), the following rules shall be substituted, namely:-
"58. Adjudication of claims to, or objections to attachment of, attached property.-(1) Where any claim is preferred to, or any objection is made to the attachment of, any property attached in execution of a decree on the ground that such property is not liable to such attachment, the Court shall proceed to adjudicate upon the claim or objection in accordance with the provisions herein contained:
Provided that no such claim or objection shall be entertained-
(a) where, before the claim is preferred or objection is made, the property attached has already been sold; or
(b) where the Court considers that the claim or objection was designedly or unnecessarily delayed.
(2) All questions (including questions relating to right, title or interest in the property attached) arising between the parties to a proceeding under this rule or their representatives and relevant to the adjudication of the claim or objection shall be determined by the Court dealing with the claim or objection and not by a separate suit.
(3) Upon the determination of the questions referred to in sub-rule (2) the Court shall in accordance with such determination-
(a) allow the claim or objection and release the property from attachment either wholly or to such extent as it thinks fit; or
(b) disallow the claim or objection; or
(c) continue the attachment subject to any mortgage, charge or other interest in favour of any person; or
(d) pass such order as in the circumstances of the case it deems fit.
(4) Where any claim or objection has been adjudicated upon under this rule, the order made thereon shall have the same force and be subject to the same conditions as to appeal or otherwise as if it were a decree.
[Cf. Order XXI, rule 50(3).]
(5) Where a claim or an objection is preferred and the Court, under the proviso to sub-rule (1), refuses to entertain it, the party against whom such order is made may institute a suit to establish the right which he claims to the property in dispute; but, subject to the result of such suit, if any, an order so refusing to entertain the claim or objection shall be conclusive.
[Cf. Order XXI, rule 63.]
59. Stay of sale.-Where before the claim was preferred or the objection was made, the property attached had already been advertised for sale, the Court may-
(a) if the property is movable, make an order postponing the sale pending the adjudication of the claim or objection; or
(b) if the property is immovable, make an order that pending the adjudication of the claim or objection the property shall not be sold or that pending such adjudication the property may be sold but the sale not be confirmed;
and any such order may be made subject to such terms and conditions as to security or otherwise as the Court thinks fit.".
[Cf. Order XXI, rule 58(1), proviso.]
Order XXI, rule 66
In rule 66 of Order XXI of the First Schedule to the principle Act, in sub-rule (2), the following provisos shall be inserted at the end, namely:-
"Provided that where notice of the date for settling the terms of the proclamation has been given to the judgment-debtor by means of an order under rule 54, it shall not be necessary to give notice under this rule to the judgment-debtor, unless the Court otherwise directs:
Provided further that it shall not be necessary for the Court itself to give its own estimate of the value of the property, but the proclamation shall include the estimate, if any, given by either or both of the parties.".
Order XXI, rule 68
In rule 68 of Order XXI of the First Schedule to the principal Act,-
(a) for the words "thirty days", the words "fifteen days" shall be substituted.
(b) for the words "fifteen days", the words "seven days" shall be substituted.
Order XXI, rule 69
In rule 69 of Order XXI of the First Schedule to the principal Act, in sub-rule (2), for the word "seven", the word "thirty" shall be substituted.
Order XXI, rule 89
In rule 89 of Order XXI of the First Schedule to the principal Act, in sub-rule (1), for the words "any person, either owning such property or holding an interest therein by virtue of a title acquired before such sale,", the words "any person claiming any interest in the property sold at the time of the sale or at the time of the petition, or acting for or in the interest of such person," shall be substituted.