CHAPTER 5 PRELIMINARY TOPICS
Ch. 5.10. Rateable distribution Sn. 73 C.P.C
Sn. 73 C.P.C. provides for rateable distribution, among decree- holders of the assets of the judgement debtor, held by the court.
Earlier the rule was “first come, first serve, and this had led to malpractices and scrambles. To put an end to this, Sn. 73 was made to place all decree-holders on equal footing.
The objects are (1) to prevent multiple execution proceedings and (2) to secure equitable distribution of assets. This section provides for a cheap and speedy mode of execution. It is a rule of procedure.
The essential conditions are as follows :
- The assets of judgement – debtor (J.D.) must be held by the court i.e., attached by the
- The decrees obtained by two or more decree holders, should be money-decrees and should be against the same D.
- The claimant must have applied for execution to the same court and before the court received the assets. He should not have obtained satisfaction of his decree.
- The cost of realization, should be deducted before rateable distribution.
Distribution of proceeds:
When the immovable property of the J.D. is sold by the court, the sale proceeds shall be applied to meet:
- cost of making sale
- amounts due under the decree
- interest and principal on encumbrances if rateable distribution of moneys among all the eligible decree-holders.
- The right of the is not affected by the section.
- The sale of immovable property by the court is subject to the mortgage or change, if any, on the property and hence, the purchaser gets the property subject to the said mortgage or
Of course, such a mortgagee or holder of charge, may waive and agree for reteable distribution with other decree-holders.
The High Court has powers of revision when the lower court has no jurisdiction or distribution is wrong.