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Civil Law

Decree Holder and Judgement Debtor

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 20-Sep-2023

Introduction

  • The term decree has been defined under section 2(2) of the Code of Civil Procedure, 1908 (CPC).
  • Decree means the formal expression of an adjudication which, so far as regards the Court expressing it, conclusively determines the rights of the parties with regard to all or any of the matters in controversy in the suit and may be either preliminary or final. It shall be deemed to include the rejection of a plaint and the determination of any question within section 144, but shall not include
    • (a) any adjudication from which an appeal lies as an appeal from an order, or
    • (b) any order of dismissal for default.
  • Explanation - A decree is preliminary when further proceedings have to be taken before the suit can be completely disposed of. It is final when such adjudication completely disposes of the suit. It may be partly preliminary and partly final.

Decree Holder

  • Section 2(3) of CPC defines the term decree holder.
  • Decree holder means any person in whose favour a decree has been passed or an order capable of execution has been made.
  • The term decree holder denotes a person:
    • In whose favour a decree has been passed.
    • In whose favour an order capable of execution has been made.
    • Whose name appears in the decree, either as plaintiff or defendant and the following conditions are satisfied:
      • The decree must be capable of execution.
      • The said person, by the terms of the decree itself or from its nature, should be legally entitled to seek its execution.
  • In Ajudhia Prasad v. The UP Govt. through the Collector (1947), the Allahabad High Court considered the scope of the expression decree holder. The Court held that it is clear from this that a person in whose favour an order capable of execution has been made is also a decree holder.
    • It is also evident from this definition that a decree-holder need not be a party to the suit.

Holder of Decree and Decree Holder

  • Though the terms decree holder and holder of decree appear to be identical but there is a legal distinction between the two terms.
    • The term holder of a decree used in Order XXI Rule 10 of CPC is very wide and it not only encompasses decree holder but also considers the transferee of a decree and the legal representative of the decree-holder. It takes into consideration the parties other than whose name appears on the decree.
    • Whereas the term decree holder includes any person in whose favour a decree has been passed or an order capable of execution has been made.

Judgement Debtor

  • Judgement debtor is defined in Section 2(10) of CPC.
  • Judgement-debtor means any person against whom a decree has been passed or an order capable of execution has been made.
  • The definition does not include legal representative of a deceased judgement-debtor.
    • A judgment debtor is a person against whom a judgment ordering him to pay a sum of money has been obtained and remains unsatisfied.
  • That order or decree may be for payment of money or for recovery of possession or any other order or decree.