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Issues Involved:
1. Validity of attachment before judgment under Section 136 of the Civil Procedure Code (CPC). 2. Effect of non-compliance with Section 136 CPC on the attachment order. 3. Validity of the auction sale in light of alleged procedural defects. 4. Impact of pre-existing agreements to sell on the attachment order. Issue-wise Detailed Analysis: 1. Validity of Attachment Before Judgment under Section 136 CPC: The primary issue was whether the Court that issued the attachment order could directly send it to another Court within whose jurisdiction the property was located or if it must send it through the District Court. The attachment before judgment was effected under Order XXXVIII Rule 5 of the CPC, which prescribes that the attachment must be made in the same manner as for the execution of a decree. Section 136 CPC outlines the procedure for attachment when the property is outside the jurisdiction of the issuing Court, requiring the order to be sent to the District Court within whose jurisdiction the property is situated. 2. Effect of Non-Compliance with Section 136 CPC on the Attachment Order: The High Court had held that the attachment order was ineffective because it was not sent through the District Judge, Gaya, within whose territorial jurisdiction the property was situated. However, the Supreme Court noted that different High Courts had taken varied views on this matter. The Travancore-Cochin High Court in Mariaimma Mathew v. Ittoop Paulo held that the procedure under Section 136 CPC is not mandatory and non-compliance amounts to an irregularity rather than invalidating the attachment. Similarly, the Kerala High Court in Mookan Ouseph Thamakutty v. Puramundekat Padinjare Madathil Nanu viewed the procedure as non-jurisdictional. Contrarily, the Patna and Allahabad High Courts had held that non-compliance with Section 136 CPC rendered the attachment invalid. The Supreme Court concluded that Section 136 CPC prescribes a procedure and does not affect the jurisdiction of the Court issuing the attachment. Thus, non-compliance with this section does not invalidate the attachment order, and the High Court's decision on this ground was incorrect. 3. Validity of the Auction Sale in Light of Alleged Procedural Defects: The respondents contended that the auction sale was invalid due to the procedural defect in the attachment order and the inadequacy of the price. The Supreme Court held that mere inadequacy of the price is not a ground for setting aside a Court sale unless fraud or material irregularity is alleged, which was not the case here. Therefore, the auction sale was valid despite the alleged procedural defects. 4. Impact of Pre-Existing Agreements to Sell on the Attachment Order: The respondents argued that two agreements to sell (Baibeyana) dated 9.2.1974 and 16.2.1974, prior to the attachment on 26.3.1974, should prevail over the attachment. The Execution Court rejected this plea, and the High Court did not consider it on merits due to its decision on Section 136 CPC. The Supreme Court referred to its decision in Vannarakkal Kallalathil Sreedharan v. Chandramaath Balakrishnan, which held that an agreement for sale creates an obligation attached to the ownership of the property. Consequently, the attaching creditor can only attach the right, title, and interest of the judgment debtor, subject to pre-existing contractual obligations. The Supreme Court remanded the case back to the High Court to consider the effect of the pre-existing agreements on the attachment, emphasizing that the learned Single Judge should address these aspects in light of the observations made. Conclusion: The Supreme Court set aside the High Court's decision that invalidated the attachment order due to non-compliance with Section 136 CPC. The case was remanded to the High Court for reconsideration of the impact of the pre-existing agreements to sell on the attachment order. The appeal was disposed of, with each party bearing its own costs, and the High Court was requested to expedite the disposal of the case.
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