M/s. Parkash Traders and Others vs New Bank of India

G.R. Majithia, J.—The Respondent-bank filed a suit for the recovery of loan amount against the Petitioners on November 19, 1977 which was decreed by the learned Sub Judge 1st Class, Karnal, on March 3, 1982, against the present Petitioners/judgment-debtors. The operative part of the judgment reads as under:

In consequence of discussion made above and findings arrived at the issues, a decree in the sum of Rs. 15,244.73 with proportionate costs is hereby passed in favour of the Plaintiff-Bank and against the Defendants jointly as well as severely. Provided always that the Defendant No. 4 Shri Siri Kishan shall be liable to the extent of Rs. 8266.60 paise only as guarantor. Further that the Plaintiff-bank shall sell or cause to sell the pledged goods of the Defendant Nos. 1 to 3 lying under the control of the Plaintiff-Bank as entered in the stock register maintained by the Plaintiff-bank regarding account No. 195 less the shortage of goods reported by the Bank. Thereafter, the balance, if due, shall be realised by the Plaintiff-Bank from the Defendants in the manner mentioned above. Prayer for grant of future interest is declined.

The Respondent-bank without first realising the decreetal amount by sale of the pledged goods, as ordered, proceeded against the Petitioners. The Petitioners filed an objection petition u/s 47 of the Code of Civil Procedure. The same was rejected by the learned Sub Judge vide his order dated February 10, 1987. This order has been challenged in the revision petition filed by the judgment-debtors.

The sole submission made by the learned Counsel for the Petitioners is that the Respondent-bank should, in the first instance, realise the decreetal amount by way of sale of the pledged goods, and if the decree is not wholly satisfied out of the sale proceeds of the pledged goods, the Plaintiff may proceed against the Petitioners. I find force in the submission. The judgment referred to above, in terms, has also directed that the decreetal amount should be realised in the first instance of the sale proceeds of the pledged goods.

The order passed by the learned executing court is, consequently, set aside. The Respondent-bank is directed to realise the decreetal amount by way of the sale of the pledged goods, and in case the decree is not fully satisfied in that manner, it shall proceed against the judgment-debtors in accordance with law.

The parties will bear their own costs of this revision.