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Report No. 54

Order 20, rule 12B (New)-Execution of document or endorsement of a negotiable instrument

20.19. Under Order 21, rule 34, where a decree is for the execution of a document or for the endorsement of a negotiable instrument, and the judgment-debtor neglects or refuses to obey the decree, the decree-holder may prepare a draft of the document or endorsement in accordance with the terms of the decree, and deliver the same to the court. The court shall, thereupon, cause the draft to be served on the judgment-debtor, together with a notice requiring his objections (if any) to be made within Such time as the court fixes in this behalf. Where the judgment-debtor objects to the draft, his objections are to be stated in writing within such time, and the Court shall make such order approving or altering the draft, as it thinks fit. The rule, then contains elaborate provisions as to further action.

20.20. Further, as regards suits for specific performance of contracts for the sale or lease of immovable property, the Specific Relief Act provides1-

"(3) If the purchaser or lessee pays the purchase money or other sum which he is ordered to pay under the decree within the period referred to in sub-section (1), the court may, on application made in the same suit, award the purchaser or lessee such further relief as he may be entitled to, including in appropriate cases all or any of the following reliefs, namely;-

(a) the execution of a proper conveyance or lease by the vendor or lessor;

(b) the delivery of possession, or partition and separate possession, of the property on the execution of such conveyance or lease."

1. Section 28(3), Specific Relief Act, 1963.

20.21. An elaborate provision regarding the decrees for specific performance of contracts for sale or lease of immovable property was suggested in an earlier Report1 of the Law Commission. The recommendation there was to the effect, that complete relief (such as, possession, etc., rescission, refund of earnest money, etc.) in such a suit should be available by application in the suit itself (instead of in execution as at present), and that appropriate provision should be made in the Civil Procedure Code enabling such applications to be made and orders thereon and also for appeals.

1. 9th Report (Specific Relief Act), para. 81, read with para. 35.

20.22. The matter was considered in the 27th Report, where it was noted1-

"It is considered, that so far as a provision authorising the making of an application and orders thereon is concerned, section 28 of the Specific Relief Act, 1963 (read with section 22) would be adequate. So far as appeals from such orders are concerned, the orders, it is considered, would fall within the definition of "decree" given in section 2(2) of the Civil Procedure Code. It is thought, that the only specific provision which is required is to the effect that the decree should specify the period for payment of the purchase-money or other amount due under the decree."

1. 27th Report, note on Order 20, rule 12.

Order 20, rule 12B (New)

20.23. We are of the view that where the decree orders the execution of a document or for the endorsement of a negotiable instrument, the proceedings for signing the document etc., should be completed in the very suit in which the decree is passed1.

1. Consequently, Order 21, rule 34 should be deleted.

Recommendation

20.24. Accordingly, we recommend that the following rule should be added in Order 20 as1 rule 12B.

"12B. (1) Where the Court passes a decree for the execution of a document or for the endorsement of a negotiable instrument, and the judgment-debtor neglects or refuses to obey the decree, all subsequent proceedings provided for in this rule shall take place in the suit.

[Cf. Order 21, rule 34(1)]

(2) The decree-holder may, on such neglect or failure by the judgment-debtor, prepare a draft of the document or endorsement in accordance with the terms of the decree and deliver the same to the Court.

[Cf. Order 21, rule 34(2)]

(3) The Court shall thereupon cause the draft to be served on the judgment-debtor, together with a notice requiring his objections (if any) to be made within time as the Court fixes in this behalf.

[Cf. Order 21, rule 34(3)]

(4) Where the judgment-debtor objects to the draft, his objections shall be stated in writing within such time, and the Court shall make such order approving or altering the draft, as it thinks fit.

[Cf. Order 21, rule 34(4)]

(5) The decree-holder shall deliver to the Court a copy of the draft with such alterations (if any) as the Court may have directed upon the proper stamp-paper if a stamp is required by the law for the time being in force; and the judge or such officer as may be appointed in this behalf shall execute the document so delivered.

[Cf. Order 21, rule 34(4)]

(6) The execution of a document or the endorsement of a negotiable instrument under this rule may be in the following form, namely:-

"C.D., Judge of the Court of

(or as the case may be) for A.B., in a suit by E.F. against A.B.", and shall have the same effect as the execution of the document or the endorsement of the negotiable instrument by the party ordered to execute or endorse the same.

[Cf. Order 21, rule 34(5)]

(7) The Court, or such officer as it may appoint in this behalf, shall cause the document to be registered if its registration is required by the law for the time being in force or the decree-holder desires to have it, registered, and may make such order as it thinks fit as to the payment of the expenses of the registration."

[Cf. Order 21, rule 34(6)]

1. As to Order 20, rule 12A, see 27th Report.



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