51A. Rateable Distribution.
order 51A
Rateable Distribution
1. Proceeds of execution sale to be distributed rateably among judgment creditors. (O. 51A r. 1)
(1) Where assets are realised by sale or otherwise in execution of an order or judgment and more persons than one have, prior to the realisation, attached the property from which such assets have been realised in execution of orders or judgments for the payment of money against the same judgment-debtor and have not obtained satisfaction thereof, the assets, after deducting the costs of the realisation, shall be distributed rateably among all such persons:
Provided as follows–
(a) where any property is sold subject to a charge, the chargee shall not as such be entitled to share in any surplus arising from such sale;
(b) where any property liable to be sold in execution of an order or judgment is subject to a charge, the Court may, with the consent of the chargee, order that the property be sold free from the charge, giving to the chargee the same right against the proceeds of the sale as he had against the property sold;
(c) where any immovable property is sold in execution of an order or judgment ordering its sale for the discharge of an incumbrancer thereon, the proceeds of sale shall be applied
first, in defraying the expenses of the sale;
secondly, in discharging the interest and principal money due on subsequent incumbrances (if any);
thirdly, in discharging the interest and principal money due on subsequent incumbrances (if any);
fourthly, rateably among the holders of orders or judgment for the payment of money against the judgment-debtor who have, prior to the sale of the said property, applied to the Court which passed the order or judgment ordering such sale for execution of such orders or judgments and have not obtained satisfaction thereof; and
(d) where the property from which such assets have been realised has prior to realisation been attached by the High Court and also by one or more of the Subordinate Courts, no holder of a decree passed by a Subordinate Court shall be entitled to share in the distribution of such assets unless he shall prior to realisation have given notice in writing to the Registrar of the attachment at his instance of such property by such Subordinate Court.
(2) Where all or any of the assets liable to be rateably distributed under this rule are paid to a person not entitled to receive the same, any person so entitled may sue such person to compel him to refund the assets.
(3) Nothing in this rule shall operate to defeat or postpone any claim which under the provisions of any written law ought to be paid in priority.
2. Method of subsequent attachment. (O. 51A r. 2)
(1) Any property attached by way of execution by any Court whether physically taken into the Court’s custody or not, shall be deemed to have been seized by the Court and shall not thereafter be seized at the instance of any other person, but any subsequent order or warrant for the attachment or seizure of the same property by the same Court or any other Court, whether in the same or another place, or a certified copy thereof, may be delivered to the sheriff or the bailiff by whom the property was seized and shall thereupon operate and have effect as an attachment for the purpose of this Order.
(2) In the case of any property which cannot be taken into the physical custody of the bailiff or other officer of the Court, any prohibitory order or similar document for the purpose of protecting the interests of a subsequent attaching creditor may be served or registered and shall have effect in accordance with the provisions of paragraph (1) of this rule.
(3) If the property is released from the prior attachment, it shall be deemed to have been attached and seized under the subsequent order or warrant.
(4) If the property remains under the prior attachment and no order for sale thereof has been made within two months after such attachment, the property shall be deemed to have been released from the prior attachment and the provisions of paragraph 3 of this rule shall apply.
3. Property attached in execution of order or judgment of several Courts. (O. 51A r. 3)
Where property not in the custody of any Court is under attachment in execution of orders or judgments of more Courts than one, the Court which shall receive or realise such property and shall determine any claim thereto and any objection to the attachment thereof shall be the Court of highest grade, or where there is no difference in grade between such Courts, the Court under whose order of judgment the property was first attached.
4. Immovable property. (O. 51A r. 4)
Where the property to be seized consists of immovable property or any registered interest therein the following provisions shall apply:
(1) Seizure shall be made by an order prohibiting the judgment-debtor from transferring, charging or leasing such property or interest. For the purpose of this rule "charging" shall include the creation of a lien by deposit of a document of title;
(2) A copy of the order shall be served on the judgment-debtor and one or more copies, as the case may require, shall be issued to the judgment-creditor in order that he may present the same, in compliance with the provisions of any written law relating to such land, for registration at the Registry of Titles or Land Office whereat the land or interest in land specified in such order is registered;
(3) No prohibitory order issued under this rule shall affect any immovable property or registered interest therein and no immovable property or registered interest therein shall be deemed to have been seized until such prohibitory order shall have been registered as provided by any written law relating to such land;
(4) Subject to the provisions of sub-rule (5) of this rule any prohibitory order shall upon the expiration of six months from the date thereof cease to affect the immovable property or registered interest therein specified in such order.
order 51A
Rateable Distribution
1. Proceeds of execution sale to be distributed rateably among judgment creditors. (O. 51A r. 1)
(1) Where assets are realised by sale or otherwise in execution of an order or judgment and more persons than one have, prior to the realisation, attached the property from which such assets have been realised in execution of orders or judgments for the payment of money against the same judgment-debtor and have not obtained satisfaction thereof, the assets, after deducting the costs of the realisation, shall be distributed rateably among all such persons:
Provided as follows–
(a) where any property is sold subject to a charge, the chargee shall not as such be entitled to share in any surplus arising from such sale;
(b) where any property liable to be sold in execution of an order or judgment is subject to a charge, the Court may, with the consent of the chargee, order that the property be sold free from the charge, giving to the chargee the same right against the proceeds of the sale as he had against the property sold;
(c) where any immovable property is sold in execution of an order or judgment ordering its sale for the discharge of an incumbrancer thereon, the proceeds of sale shall be applied
first, in defraying the expenses of the sale;
secondly, in discharging the interest and principal money due on subsequent incumbrances (if any);
thirdly, in discharging the interest and principal money due on subsequent incumbrances (if any);
fourthly, rateably among the holders of orders or judgment for the payment of money against the judgment-debtor who have, prior to the sale of the said property, applied to the Court which passed the order or judgment ordering such sale for execution of such orders or judgments and have not obtained satisfaction thereof; and
(d) where the property from which such assets have been realised has prior to realisation been attached by the High Court and also by one or more of the Subordinate Courts, no holder of a decree passed by a Subordinate Court shall be entitled to share in the distribution of such assets unless he shall prior to realisation have given notice in writing to the Registrar of the attachment at his instance of such property by such Subordinate Court.
(2) Where all or any of the assets liable to be rateably distributed under this rule are paid to a person not entitled to receive the same, any person so entitled may sue such person to compel him to refund the assets.
(3) Nothing in this rule shall operate to defeat or postpone any claim which under the provisions of any written law ought to be paid in priority.
2. Method of subsequent attachment. (O. 51A r. 2)
(1) Any property attached by way of execution by any Court whether physically taken into the Court’s custody or not, shall be deemed to have been seized by the Court and shall not thereafter be seized at the instance of any other person, but any subsequent order or warrant for the attachment or seizure of the same property by the same Court or any other Court, whether in the same or another place, or a certified copy thereof, may be delivered to the sheriff or the bailiff by whom the property was seized and shall thereupon operate and have effect as an attachment for the purpose of this Order.
(2) In the case of any property which cannot be taken into the physical custody of the bailiff or other officer of the Court, any prohibitory order or similar document for the purpose of protecting the interests of a subsequent attaching creditor may be served or registered and shall have effect in accordance with the provisions of paragraph (1) of this rule.
(3) If the property is released from the prior attachment, it shall be deemed to have been attached and seized under the subsequent order or warrant.
(4) If the property remains under the prior attachment and no order for sale thereof has been made within two months after such attachment, the property shall be deemed to have been released from the prior attachment and the provisions of paragraph 3 of this rule shall apply.
3. Property attached in execution of order or judgment of several Courts. (O. 51A r. 3)
Where property not in the custody of any Court is under attachment in execution of orders or judgments of more Courts than one, the Court which shall receive or realise such property and shall determine any claim thereto and any objection to the attachment thereof shall be the Court of highest grade, or where there is no difference in grade between such Courts, the Court under whose order of judgment the property was first attached.
4. Immovable property. (O. 51A r. 4)
Where the property to be seized consists of immovable property or any registered interest therein the following provisions shall apply:
(1) Seizure shall be made by an order prohibiting the judgment-debtor from transferring, charging or leasing such property or interest. For the purpose of this rule "charging" shall include the creation of a lien by deposit of a document of title;
(2) A copy of the order shall be served on the judgment-debtor and one or more copies, as the case may require, shall be issued to the judgment-creditor in order that he may present the same, in compliance with the provisions of any written law relating to such land, for registration at the Registry of Titles or Land Office whereat the land or interest in land specified in such order is registered;
(3) No prohibitory order issued under this rule shall affect any immovable property or registered interest therein and no immovable property or registered interest therein shall be deemed to have been seized until such prohibitory order shall have been registered as provided by any written law relating to such land;
(4) Subject to the provisions of sub-rule (5) of this rule any prohibitory order shall upon the expiration of six months from the date thereof cease to affect the immovable property or registered interest therein specified in such order.
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