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Supreme Court of India 2024-05-14 allowed

THROUGH LRS vs SHAMABAI DHANRAJ GUGALE (DECEASED)

Bench: 2 — Hrishikesh Roy, Prashant Kumar Mishra

In Brief

A judgment debtor sued for debt repayment obtained a decree that was later modified to reduce the decretal amount from Rs. 27,694 to Rs. 17,120. However, before this modification, the creditor executed the decree by auctioning all of the debtor's attached properties (worth Rs. 1,05,700) and purchased them for only Rs. 34,000. The debtor sought restitution under Section 144 CPC. The Supreme Court held that where a decree is modified and the entire property is sold to satisfy the original (higher) decretal amount, restitution by setting aside the sale is the appropriate remedy. The court emphasized that the decree holder who is himself the auction purchaser must restore the property, and third-party purchasers with knowledge of litigation risk cannot claim bona fide purchaser protection. The sale was set aside and parties restored to their pre-execution position.

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Restitution Civil Procedure Execution of Decree Property Auction Judgment Debtor Rights Decree Variation

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