Punjab and Haryana High Court Sets Aside Order for Direct Transfer of Attached Property Ownership

07 May 2024 8:19 AM

By: Admin

Chandigarh, May 29, 2023 - In a significant ruling, the Punjab and Haryana High Court, presided over by Justice Archana Puri, has set aside an order directing the transfer of ownership of an attached property in a decree holder's name. The case (CR-1319 of 2019) involved M/s Bassiarkh Rice Mills and another as the petitioners, and Punjab State Warehousing Corporation and others as respondents.

The dispute arose during the execution proceedings for the recovery of Rs. 44,10,440/- as per a judgment and decree issued on January 21, 2013. The decree holder filed an application seeking the transfer and sale of the attached property in their name, citing a lack of interested buyers. Consequently, the lower court issued a letter to the Tehsildar, directing the transfer of ownership to the decree holder for a sum of Rs. 60,20,000/-.

However, Justice Puri observed that the lower court's process was flawed. The court had bypassed the requirement for the decree holder's participation in the auction proceedings and ordered the direct transfer of ownership, which lacked legal provision. As a result, the High Court set aside the impugned order and remanded the case back to the Executing Court.

The Executing Court has been directed to proceed with the execution from the stage of warrant of sale issuance for the attached property. If no bidders are found in the auction proceedings, the decree holder has been permitted to seek permission to participate in accordance with the law. The Executing Court has been instructed to facilitate the satisfaction of the decree dated January 21, 2013.

Decided on: 29.05.2023

M/s Bassiarkh Rice Mills and another VS Punjab State Warehousing Corporation and others