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Issues involved: Determination of whether a sale of land agreed upon before attachment prevails over the attachment.
Summary: The High Court of Kerala held that the sale would be subject to attachment as the property was attached before the sale deed was executed. However, the appeal challenged this view. Relevant statutory provisions were considered, including Order 38 Rule 10 of the CPC, Section 40 of the Transfer of Property Act, and Section 91 of the Trusts Act. The Madras High Court's stance was cited, stating that a purchaser under an antecedent agreement obtains good title despite attachment. Similar views were expressed by the Calcutta, Bombay, and Travancore-Cochin High Courts. In contrast, the Punjab & Haryana High Court deemed such sales void against attaching creditors, citing Section 64 of the CPC. The Delhi High Court, aligning with the former view, emphasized that the contractual obligation from a pre-attachment agreement should prevail over the rights of the attaching creditor. Consequently, the appeal was allowed, reversing the High Court's order and restoring that of the trial court, with no order as to costs.
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