AI Structured Summary
Not yet generated for this judgment
Judgment
J.V. Gupta, J.—This revision petition is directed against the order of the executing Court dated March 20, 1987, whereby the application filed on behalf of the New India Assurance Co. Ltd., the petitioner, for staying the execution proceedings was dismissed.
Admittedly, the New India Assurance Co. Ltd. has filed an appeal, i.e., F.A.O. No. 206 of 1985, which is pends in this Court. On April 25, 1985, at the time of the motion hearing the following order was passed therein:
The learned Counsel for the appellant undertakes to deposit the amount of Rs. 50,000/- within a period of two weeks. The amount in excess of Rs. 50,000/- be not recovered from the Insurance Company till further orders. The claimants can, however, recover that amount from the other judgment-debtors." Later on the said appeal was admitted on September 9, 1985 against respondent Nos. 7 and 8 only. As against respondents Nos. 1 to 6, the said appeal was dismissed. In view of that order, the claimants-respondents sought execution of the order. Before the executing Court, the petitioner pleaded that in view of the stay order granted by this Court in F.A.0. No. 206 of 1985, dated April 25, 1985, the amount in excess of Rs. 50, 000/- could not be recovered from it. However, the executing Court observed in the impugned order as follows:
It has not been shown by Mr. R.K. Bajaj that the liability of the respondent Insurance Company is limited to Rs. 50,000/-.
In view of the same, the execution proceedings were allowed to continue against the petitioner. Aggrieved against the said order, the petitioner has come up in revision to this court.
After hearing the learned Counsel for the parties, I find force in this petition. In view of the order dated April 25, 1985, passed by this Court in F.A. No. 206 of 1935, the execution against the petitioner in excess of Rs. 50,000/- could not be taken. However, since the appeal against the claimants therein was dismissed, the proper course will be for the claimants to make an application in that appeal either for vacating the said order or for modifying the same. Consequently, this revision petition on succeeds and is allowed. The impugned order is set aside. No costs.