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Mohammed Faiz (Partner)     08 January 2015

Order 41, rule 6(2)

Hi,

Can anyone answer the following questions:

In a case of Execution Proceedings of the Decree, the Judgment Debtor obtained the stay of sale of his immovable property in a Execution Court on the grounds of pending appeal in the High Court as per Order 41, Rule 6(2) on condition of security to be given to the Court and instead of furnishing security the Judgment Debtor chose to deposit the entire decretal amount in cash.

Questions arises:-

1. Does the interest on the decretal amount will ceased to run on the day of depositing of the entire decretal amount in the Court ?

2. If the appeal is allowed in favour of Judgment Debtor, will Judgment Debtor entitled for any interest on the amount deposited as security ?

3.  If the appeal is allowed in favour of Decree Holder.  Who will be entitled for the interest on the amount deposited as security ?

 

Thanks



Learning

 3 Replies

sridhar pasumarthy (ADVOCATE)     08 January 2015

1.  It is a mere security.  Interest will not cease to run because D.Hr. will not be allowed to withdraw the amount.

2. Generally, amount will be deposited in bank account.  So, J.Dr. will be entitled to the interest offered by the bank.

3.If the outcome of the appeal is in favour of the D.Hr., he will be allowed to withdraw the amount for which he is entitled as per the decree.  If any amount remains, it will be returned to J.Dr.

Mohammed Faiz (Partner)     09 January 2015

Thank you very much for your reply...

venkatesh Rao (Retired Government Servant)     14 January 2015

Normally the amount will be deposited in court and kept under Civil Court Deposits which is not earning any interest. The party depositing may request the court to be kept in bank in the joint names of the Decree Holder and the J.D. and the amount with interest will go to the successful party in appeal.


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