2023 (10) TMI 1529 - SC - Indian Laws

Delay of execution proceedings under Order XXI of the Code of Civil Procedure 1908 - process is being abused in the execution proceedings to the peril of the helpless decree holder - principles of res-judicata - HELD THAT - In support of the submission the decree holder relied upon a decision of this court given in Barkat Ali Anr. vs. Badrinarain (D) by Lrs. 2008 (4) SCC 615 where this court reiterated the settled position of law that the principles of res judicata are not only applicable in respect of separate proceedings but the general principles of res judicata are also applicable at the subsequent stage of the same proceedings and therefore the same court will be precluded to go into that question which has already been decided or deemed to have been decided by it in the earlier stage. In other words it will be barred by the principle of res judicata or at least by the principle of constructive res judicata. The logic here is that an execution proceeding works in different stages and if the judgment debtors have failed to take an objection and have allowed the preliminary stage to come to an end and the matter has moved to the next stage the judgment debtors cannot raise the objection subsequently and revert back to an earlier stage of the proceeding. This is exactly one of the reasons given by the executing court in its order dated 28.09.2017 which we have already referred above. Merely because it has not specifically referred to the principle of res judicata will not make any difference. The High Court committed an error by not interfering in the matter. This case has unnecessarily been dragging on for so long; which is for nearly two decades. Conclusion - The executing court s order allowing execution that has attained finality cannot be reopened or challenged under Section 47 CPC except on jurisdictional grounds. The order dated 22.12.2017 by the Appellate Court and the order dated 08.01.2021 by the High Court are not sustainable in the eyes of law - the order of the High Court set aside - appeal allowed.

Summary

1. ISSUES PRESENTED and CONSIDERED

The core legal questions considered by the Court are:

- Whether the executing court under Section 47 of the Code of Civil Procedure, 1908 (CPC) can revisit or reopen an order allowing execution of a decree that has attained finality and was never challenged earlier.

- The scope and limitations of the powers of the executing court under Section 47 CPC in execution proceedings, specifically whether it can go behind the decree or the order permitting execution.

- The applicability of the principles of res judicata and constructive res judicata in execution proceedings and whether an objection not raised at the appropriate stage can be entertained later.

- Whether delay and abuse of process in execution proceedings can be curbed by judicial directions and procedural safeguards.

- The correctness of the appellate and High Court orders that allowed the judgment debtors to challenge the execution order years after it attained finality.

2. ISSUE-WISE DETAILED ANALYSIS

Issue 1: Scope of powers of the executing court under Section 47 CPC

The relevant legal framework is Section 47 of the CPC, which mandates that all questions arising between the parties relating to execution, discharge, or satisfaction of the decree shall be determined by the executing court and not by a separate suit. However, the executing court's jurisdiction is limited to issues concerning execution and it cannot go behind the decree itself or re-examine the validity of the decree or orders allowing execution, unless such orders are without jurisdiction or void ab initio.

The Court relied on precedent from Dhurandhar Prasad Singh v. Jai Prakash University, which clarified that the executing court's powers are "microscopic" and confined to a narrow inspection hole. The executing court can only refuse execution if the decree is void or not executable under law, but it cannot entertain a challenge to the decree or an order permitting execution that has attained finality.

In the present case, the executing court's order dated 12.02.2013 allowing execution was never challenged before any appellate or revisional forum by the judgment debtors. The judgment debtors' attempt to reopen the order nearly four years later under the guise of objections in execution was held to be impermissible. The executing court correctly dismissed the application on maintainability grounds, holding that it was not sitting in appeal against its own order and that the order was not passed without jurisdiction, nor was fraud or collusion alleged.

The Court emphasized that the executing court must execute the decree "as it is" and cannot re-adjudicate issues already decided in the suit or in earlier stages of execution proceedings.

Issue 2: Applicability of res judicata in execution proceedings

The Court examined the principle of res judicata and constructive res judicata as reiterated in Barkat Ali & Anr. vs. Badrinarain, which holds that the same court is precluded from re-examining questions already decided at an earlier stage of the same proceedings. The judgment debtors, having failed to challenge the execution order at the proper stage, cannot raise the same objection years later.

The executing court's order of 28.09.2017 implicitly applied this principle by holding the application to reopen the execution order as barred and not maintainable. The appellate court and the High Court, however, did not address the res judicata principle adequately and allowed the judgment debtors to challenge the execution order.

The Supreme Court found this to be an error, noting that the execution proceedings have different stages and once a stage is concluded and the matter moves forward, parties cannot revert to earlier stages to raise objections that should have been raised then.

Issue 3: Delay and abuse of process in execution proceedings

The Court highlighted the long-standing problem of delay and abuse in execution proceedings. It referred to the earlier three-Judge Bench decision in Rahul S. Shah v. Jinendra Kumar Gandhi, which condemned the misuse of execution proceedings to obstruct justice and delay the enforcement of decrees.

The Court reiterated that execution proceedings are meant to be expeditious and that Section 47 CPC and Order XXI CPC are designed to prevent multiplicity of suits and unnecessary litigation. The executing courts are directed not to entertain frivolous or belated objections, and to dispose of execution proceedings within six months unless reasons are recorded in writing for delay.

The Court also referred to directions that executing courts should not mechanically issue notices or entertain applications that could have been raised and decided during the suit stage, thus preventing abuse of process.

Issue 4: Correctness of appellate and High Court decisions

The appellate court and High Court had held that the executing court could decide whether the decree could be executed or not under Section 47 CPC, and allowed the judgment debtors to challenge the execution order dated 12.02.2013 years after it attained finality.

The Supreme Court held that these orders were not sustainable in law. The High Court erred in not interfering despite recognizing the principle of res judicata, because the issue was not addressed by the lower courts and the parties during execution proceedings.

The Supreme Court allowed the appeal, set aside the appellate and High Court orders, and upheld the executing court's order dismissing the belated objection application. It directed the executing court to complete the execution expeditiously within six months.

3. SIGNIFICANT HOLDINGS

"The executing court can never go behind the decree. Under Section 47, CPC the executing court cannot examine the validity of the order of the court which had allowed the execution of the decree, unless the court's order is itself without jurisdiction."

"The exercise of powers under Section 47 of the Code is microscopic and lies in a very narrow inspection hole. Thus, it is plain that executing court can allow objection under Section 47 of the Code to the executability of the decree if it is found that the same is void ab initio and a nullity..."

"The general practice prevailing in the subordinate courts is that invariably in all execution applications, the courts first issue show-cause notice... However, this is often misconstrued as the beginning of a new trial... This drags the execution proceedings indefinitely."

"The executing court must dispose of the execution proceedings within six months from the date of filing, which may be extended only by recording reasons in writing for such delay."

"The principles of res judicata are not only applicable in respect of separate proceedings but the general principles of res judicata are also applicable at the subsequent stage of the same proceedings and therefore the same court will be precluded to go into that question which has already been decided, or deemed to have been decided by it in the earlier stage."

"The executing court must execute the decree as it is and cannot entertain an application which is an attempt to re-open an order that has attained finality and was never challenged before any appropriate forum."

Final determinations:

- The executing court's order allowing execution that has attained finality cannot be reopened or challenged under Section 47 CPC except on jurisdictional grounds.

- Belated objections to execution orders are not maintainable and constitute abuse of process.

- Principles of res judicata apply in execution proceedings to bar re-litigation of issues already decided.

- The appellate and High Courts erred in allowing the judgment debtors to challenge the execution order years after finality.

- Execution proceedings must be conducted expeditiously, and courts must guard against delay and misuse of process.