Code
CPC1[(1)] Where an attachment has
been made, any private transfer or delivery of the property attached or of any interest therein and any
payment to the judgment-debtor of any debt, dividend or other monies contrary to such attachment, shall
be void as against all claims enforceable under the attachment.2[(2) Nothing in this section shall apply to any private transfer or delivery of the property attached or of
any interest therein, made in pursuance of any contract for such transfer or delivery entered into and
registered before the attachment.]Explanation.For the purpose of this section, claims enforceable under an attachment include
claims for the rateable distribution of assets.
Great — this is Section 64 of the CPC, which deals with the effect of an attachment of property. Here’s a structured article for you:
Section 64 CPC – Effect of Attachment of Property
Code: Section 64 of the Civil Procedure Code, 1908
64. Private alienation of property after attachment to be void.
(1) Where an attachment has been made, any private transfer or delivery of the property attached or of any interest therein, and any payment to the judgment-debtor of any debt, dividend or other monies contrary to such attachment, shall be void as against all claims enforceable under the attachment.
(2) Nothing in this section shall apply to any private transfer or delivery of the property attached or of any interest therein, made in pursuance of any contract for such transfer or delivery entered into and registered before the attachment.
Explanation. For the purpose of this section, claims enforceable under an attachment include claims for the rateable distribution of assets.
Explanation of Section 64 CPC
Section 64 CPC ensures that once a property is attached by court order in execution of a decree, the judgment-debtor cannot frustrate that attachment by privately transferring it to someone else.
Key Points:
- Private Transfers Are Void:
- After an attachment, any sale, gift, mortgage, or delivery of the attached property is void against claims enforceable under the attachment.
- Payments to Judgment-Debtor Are Void:
- If someone pays money (like debt or dividend) directly to the judgment-debtor, ignoring the attachment, such payment is invalid.
- Exception – Pre-Registered Contracts:
- If a registered contract for sale/transfer was executed before the attachment, then a transfer made pursuant to that contract remains valid.
- This prevents injustice to bona fide purchasers.
- Explanation:
- The scope of “claims enforceable under attachment” also includes rateable distribution of assets under Section 73 CPC, i.e., where multiple decree-holders are entitled to share attached assets.
Illustrations
- Example 1: A judgment-debtor’s land is attached by court. After attachment, he sells it privately to his friend. That transfer is void as against the decree-holder’s claim.
- Example 2: A contract to sell the land was executed and registered before attachment. If the debtor later executes the sale deed, the sale is valid despite the attachment.
- Example 3: A company dividend payable to the debtor is attached. If the company pays him directly, ignoring attachment, such payment is void.
Judicial Interpretation
- Arunachalam v. Valliammal (AIR 1938 Mad 822): Private transfers after attachment are void not only against decree-holder but also against other creditors entitled to share rateably.
- State Bank of India v. Rajendra Kumar Singh (AIR 1969 SC 401): Emphasized the protection of bona fide transferees under pre-registered contracts.
Common Questions and Answers
1. What happens if a property is sold after attachment?
Such a sale is void against claims under attachment — the buyer gets no legal title.
2. Is every transfer void after attachment?
Yes, unless it is made under a pre-registered contract executed before the attachment.
3. Does this apply to movable and immovable property both?
Yes — any kind of attached property, movable or immovable.
4. What about payments like salary, dividends, or debts owed to the judgment-debtor?
They cannot be paid directly to him once attached; they must be paid to the court.
Conclusion
Section 64 CPC acts as a shield for decree-holders, preventing judgment-debtors from defeating court-ordered attachments by transferring property or collecting attached payments privately. However, it also balances fairness by protecting registered pre-attachment contracts.
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