THE SARGODHA CENTRAL CO OPERATIVE BANK LTD., SARGODHA vs MESSRS
This matter arises from a petition for leave to appeal against the judgment of the High Court, which set aside the executing court's order regarding the rateable distribution of decretal amounts. Three decrees were passed against the predecessor-in-interest of certain respondents in favour of multiple decree-holders, including the petitioner. The executing court consolidated the execution cases and ordered rateable distribution of the amount deposited by the Rehabilitation Department. The High Court accepted a revision petition filed by aggrieved respondents and set aside the distribution order. The Supreme Court granted leave to appeal to authoritatively interpret and construe Section 73 of the Code of Civil Procedure 1908, while dismissing the petitioner's stay application. The core legal question concerns the proper application and interpretation of rateable distribution under the Code of Civil Procedure.
- Whether Section 73 of the Code of Civil Procedure 1908 permits the rateable distribution of assets among multiple decree-holders under the circumstances of consolidated execution proceedings?
- Does the High Court have revisional jurisdiction to set aside an executing court's order regarding the rateable distribution of deposited funds?
- Section 73, Code of Civil Procedure 1908
ORDER
1. G. SAFDAR SHAH, J.-The brief and relevant facts of the case are that a three decrees were passed against late Wali Muhammad, the predecessor-- in-interest of respondents 4 (i) to 4(xiii), in favour of respondents 1, 2 and 3. In the decree passed in favour of the petitioner, which was for Rs. 1.12.916- 15, it was mentioned that the Rehabilitation Department owed to late Wali Muhammad Rs.
2. 91,638.94, and when the same was deposited in the Executing Court it was to be distributed amongst the three respondents/ decree holders in equal proportion. The record would show that the said three decrees passed against Wali Muhammad were put in execution, and the learned Senior Civil Judge, Sargodha consolidated all the three cases, and -when the Rehabilitation Department deposited in the Executing Court Rs. 80,424.94, which it claimed was the only amount due to late Wali Muhammad, the learned Judge ordered the rateable distribution of the same amongst all the decree-holders. In implementation of the said order, Rs. 60,005.94 came to the share of the petitioner. But of this the respondents felt aggrieved and consequently went to the High Court in its revisional jurisdiction. A learned Judge of the High Court accepted the said revision application and consequently set aside the order of the learned Executing Court by his judgment, dated 22-9-1972.
3. Being aggrieved of the judgment of the High Court, the petitioner filed a petition for leave to appeal in this Court, which was allowed, vide order dated 2-10-1973, on the ground that section 73 of the Code of Civil Procedure, which was interpreted and construed by the High Court, required authoritative exposition. By the same order, however, the stay application filed by the petitioner was dismissed.