Punjab National Bank vs Bareja Knipping Fasteners Ltd. and Others

Ashok Bhan, J.—In C.P. No. 46 of 1984, this court passed a preliminary decree on December 2, 1985, and final decree on January 15, 1987, against Bareja Knipping Fastners Ltd. (company in liquidation) and three of its directors with costs and interest. In this execution application, the decree-holder has claimed a sum of Rs. 19,07,800 due from the judgment debtors with future interest at 12 per cent. In the execution application, the decree-holder has sought to recover the amount by attachment and sale of property of Bareja Engineering Industries Ltd., Bareja Engineers Ltd. owned and managed by judgment-debtors Nos. 2 to 4, Bareja Industrial International Pvt. Ltd. belonging to Raghunath Rai Bareja, judgment- debtor, Bareja Industries Pvt. Ltd., owned by Raghunath Rai Bareja, judgment-debtor and other members of his family by attachment and sale of household goods comprising T.V. set, video cassette recorder, sofa-sets, tables, chairs, beds, steel almirahs, carpet and dining set lying at Flat No. 9A and 9C situated at 9th Floor of 2A Mande-villa Garden, Jay Jayanti Apartment, Calcutta-19, Bareja Pumps Pvt. Ltd. belonging to the judgment-debtors, sale of office furniture owned by Raghunath Rai Bareja, judgment-debtor.

Objections have been filed by the judgment-debtors under Order 21, Rule 23(2) read with Section 47 of the Code of Civil Procedure. It has been averred that property belonging to the companies such as Bareja Industries Pvt. Ltd., Bareja Pumps Pvt. Ltd. cannot be attached and sold in execution of a decree passed against Bareja Knipping Fasteners Ltd. as these companies and their shareholders are different and the property of these companies cannot be sold to satisfy the claim of the decree holder which arises out of the decree passed against Bareja Knipping Fastners Limited. In para 6, it has been averred that the decree-holder had earlier filed Execution Petition No. 14/L of 1987. In this application on a prayer made by the decree-holder judgment-debtors Nos. 2 to 4 were directed to make statements, and disclose all their property, movable or immovable, debts due to them, etc. and their source of income. This application was disposed of by I.S. Tiwana J. (as his Lordship then was) on August 23, 1990, with the following observations :

"Reply has been filed on behalf of the respondents to the application under Order 21, Rule 41(1)(2) of the Civil Procedure Code, whereby they have disclosed their assets and the property owned by them. The decree-holder is at liberty to get any property attached for recovery of the decretal amount. This application is disposed of as indicated above."

I find force in the objections taken by the respondents. The decree passed against Bareja Knipping Fastners Limited, cannot be satisfied by attachment and sale of properties belonging to other limited companies even if it is assumed that they are being managed by the same group of directors. Other companies are different and distinct juristic personalities with different sets of shareholders against the assets of judgment-debtors Nos. 2 to 4 which were disclosed by them in their petition No. 14/L of 1987. No prayer has been made for attachment and sale of those assets. This petition, therefore, has to be dismissed. It would, however, be open to the decree holders to get the decree executed in any other mode or by claiming the properties which are owned by the original judgment-debtors. With these observations, this petition is dismissed.