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Supreme Court of India

MOHIT BHARGAVAversusBHARAT BHUSHAN BHARGAVA AND ORS.

Citation
2007 INSC 445
Decided
20 April 2007
Disposal
Dismissed

Holding

An executing court cannot execute against immovable property outside its jurisdiction unless the execution is authorized by Order XXI Rule 3 (or a similar specific provision); restraint orders like freezing or Mareva injunctions are permissible even when the property or person is outside the court’s jurisdiction.

Summary

The decree holder obtained a final decree against the judgment debtor in a partnership dissolution suit filed in the District Court of Gwalior. While executing the decree, the court issued restraint orders (19 Mar 2003 and 7 Jul 2003) preventing a third‑party occupant and a bank from handing over possession and documents of a building in Indore, and later ordered the sale of that building (6 Apr 2004) despite the property being outside its territorial limits. The judgment debtor objected, invoking Section 39 read with Order XXI Rule 3 of the CPC; the executing court rejected the objection. The High Court set aside the sale order, transferred execution to the Indore court, but upheld the earlier restraint orders. On appeal, the Supreme Court held that, under the 2002 amendment to Section 39, a court cannot execute against immovable property outside its jurisdiction unless the case falls within Order XXI Rule 3 (or similar specific provisions); otherwise the decree must be transferred. However, restraint orders such as freezing or Mareva injunctions are within the court’s jurisdiction even if the property or person is outside. Consequently, the sale order was invalid, the High Court’s transfer was proper, and the restraint orders stood. The appeal was dismissed.

Issues considered

  • Whether an executing court may order the sale of immovable property situated outside its territorial jurisdiction under Section 39 CPC and Order XXI Rule 3/48/50.
  • Whether restraint orders (freezing, Mareva injunction) issued by the executing court are valid when the property/person is outside its jurisdiction.
  • Effect of the 2002 amendment (Section 39(4)) on the discretion of the executing court to proceed with execution outside its jurisdiction.
  • Whether the High Court was correct in refusing to interfere with the earlier restraint orders.

Legislation cited

Subjects

jurisdictionexecution of decreeimmovable propertySection 39 CPCOrder XXI Rule 3Mareva injunctionfreezing orderpartnership dissolutiontransfer of executionAmendment Act 22 of 2002

Judgment

..,S                             MOHIT BHARGAVA                                             A
                                        v.
                        BHARAT BHUSHAN BHARGAVA AND ORS.

                                        APRIL 20, 2007

                     [PK BALASUBRAMANYAN AND S-8. SINHA, JJ .]                              B

              Code of Civil Procedure, 1908:
     ~



               s,39(4)-Jurisdiction of executing court-Held: Executing court cannot
         proceed against property situated outside its jurisdiction-Jurisdiction-           c
         Territorial jurisdiction.

              Judgment/Order:

               Freezing order/Mareva injunction-Restraint orders passed by
         executing court-JD not challenging these orders-Decree holder seeking              D
         sale of property belonging to J~bjection by JD that executing court has
~   "    no jurisdiction to order sale, as property is situated outside its jurisdiction-
         Rejected-JD challenging this as also restraint orders-High Court refusing
         to interfere with restraint orders-Correctness of-Held: Restraint orders
         were within the jurisdiction of the court which passed the decree and were         E
         in the nature offreezing order or a mareva injunction and an order akin to
         an Anton Piller order, orders which could be issued even if property is
         outside the jurisdiction of the court-As JD never bothered to question those
         orders when they were passed, High Court not in error in refusing to interfere
         with those orders.
                                                                                            F
               The decree holder and the grand father of the judgment debtor among
         others, were partners in a firm. A notice of dissolution was issued by some of
         the partners to the grand father of the judgment debtor. Ultimately, the decree
         holder filed a suit in the District Court of Gwalior for dissolution of the
         partnership and for rendition of accounts. The court passed a preliminary
         decree declaring that the partnership firm stood dissolved and directed that       G
    1-   accounts be taken to settle mutual rights and liabilities.

               Tf!e grand father executed a will bequeathing the properties to his grand
         son, the judgment debtor. On 1911.1985, the grand father of the judgment
                                               397                                          H
     398                     SUPREME COURT REPORTS                     [2007] 5 S.C.R.

A debtor died. The final decree proceedings continued and the Commissioner
    submitted his report after scrutinizing the accounts. The District Court,
    Gwalior, passed a final decree in the suit for dissolution whereby the judgment
    debtor was held liable to pay certain sums to the plaintiff and other partners.
    The decree holder, filed an execution petition in the District Court of Gwalior.
B   Meanwhile, the will executed by the grand father designating the judgment
    debtor as the legatee was probated for execution of the decree.

         The decree holder moved the executing court for an injunction
   restraining the person holding the building said to have been bequeathed to
   tht judgment debtor by his grand father, from handing over possession of the
C same to the judgment debtor and from handing over the documents of title to
   him. He also sought a direction restraining the bank holding an account of
   the estate from permitting the judgment debtor to operate the accounts. The
  executing court passed an order on 19.3.2003 directing the occupant of the
   building as well as the bank not to transfer to the judgment-debtor the
  properties enumerated in the list submitted by the decree holder. The person
D holding the building moved the executing court praying that he be relieved
  from the responsibility of managing the property. On 7.7.2003, the executing
  court, after taking notice of the documents produced by the occupant of the            ;, •
  building concerned, directed that the documents be kept in safe custody of
  the court. An application was moved by the decree holder that he had received
E an offer for the purchase of the building in question, which was situate at
  Indore, and praying that the said property may be sold by way of auction and
  the amount received by apportioned among the decree holder and other
  partners.

           Though the judgment debtor had not challenged the orders dated
F 19.3.2003 and 7.7.2003, He raised an objection in the executing court that
    tt.e executing court lacked territorial jurisdiction to order the sale of the
    property situate in Indore lying outside its territorial jurisdiction. The
    application was made under s.39 read with Order XXI Rule 3 of the Code of
    Civil Procedure. The judgment debtor also filed an independent objection to
    the prayer of the decree holder for sale of the property at Indore. On 6.4.2004
G   the executing court rejected the objections from the judgment debtor holding
    that it had territorial jurisdiction to proceed with the execution. It also passed   .)
    an order directing that the house at Indore be sold by public auction after due
    publicity.

           Feeling aggrieved by the last order and belatedly feeling aggrieved by
H
                                MOHITBHARGA VAv. BHARATBHUSHANBHARGA VA                   399
               the earlier orders dated 19.3.2003 and 7.7.2003, the judgment debtor               A
               approached the High Court. The High Court held that the executing court
               and the District Court at Gwalior, lacked territorial jurisdiction to continue
               the execution especially in respect of properties outside its jurisdiction or to
               order sale of building at Indore and consequently set aside the order dated
               6.4.2004 and transferred the execution to the concerned court at Indore for
               proceeding with the execution. But the High Court repelled the challenge to
                                                                                                  B
               the earlier orders of restraint dated 19.3.2003 and 7.7.2003 passed by the
               executing court at Gwalior. Feeling aggrieved by the non-interference with
               the orders dated 19.3.2003 and 7.7.2003, the judgment debtor has approached
               this Court Feeling aggrieved by the upholding of the objection of the judgment
               debtor to jurisdiction, the decree holder has come up to this Court.               C
                     Dismissing the appeal, the Court

                      HELD: 1. The court which passed the decree is entitled to execute the
               decree. This is clear from S.38 CPC which provides that a decree may be
               executed either by the court which passed it or by the court to which it is sent D
               for execution. S.42 CPC indicates that the transferee court to which the
>   -'         decree is transferred for execution will have the same powers in executing
               that decree as if it had been passed by itself. A decree could be executed by
               the court which passed the decree so long as it is confined to the assets within
               its own jurisdiction or as authorized by Order XXI Rule 3 or Order XXI Rule
               48 CPC. But when the property sought ~o be proceeded against, is outside the E
               jurisdiction of the court which passed the decree acting as the executing
               court, there was a conflict of views earlier, some courts taking the view that
               the court which passed the decree and which is approached for execution
               cannot proceed with execution but could only transmit the decree to the court
         .,,   having jurisdiction over the property and some other courts taking the view F
               that it is a matter of discretion for the executing court and it could either
               proceed with the execution or send the decree for execution to another court.
               But this conflict was set at rest by Amendment Act 22 of 2002 with effect
               form 1.7.2002, by adopting the position that if the execution is sought to be
               proceeded against any person or property outside the local limits of the
               jurisdiction of the executing court, nothing in S.39 of the Code shall be deemed G
    1-         to authorise the court to proceed with the execution. In the light of this, it is
               not a matter of discretion for the court either to proceed with the execution of
               the decree or to transfer it for execution to the court within the jurisdiction
               of which the property is situate. [Para 6) (405-B-F)
                                                                                                  H
    400                      SUPREME COURT REPORTS                    [2007] 5 S.C.R.

A         Salem Advocate Bar Association, T.N. v. Union ofIndia, (2005) 6 S.C.C.
    344, referred to.

           2. An execution against immovable property lying outside the
    jurisdiction of the executing court is possible in terms of order XXI Rule 3
    CPC which governs a case where the particular item of immovable property,
B   forms on estate to tenure situate within the local limits of jurisdiction of two
    or more courts, and one of those courts is approached for execution of the
    decree against that property. In a case where Order XXI Rule 3 has no                '-
    application, the position seems to be that if a decree holder wants to proceed
    against a property situate outside the jurisdiction of the court which passed
C   the decree, he has to get the decree transferred to the appropriate court for
    execution on moving the executing court in that behalf. Whatever doubts there
    might have been earlier on this question, must be taken to have been resolved
    by the introduction ofsub-section (4) ofS.39 CPC which is a mandate to the
    executing court to desist from proceeding against a property situate outside
    its jurisdiction, unless it be a case coming under Order XXI Rule 3 CPC.
D                                                               [Para 7) (406-B-DJ

           3. In the case on hand, the property that is sought to be sold in execution
                                                                                         )..   .
    of the decree for dissolution is not a property the partnership. It is not a
    partnership asset held by the court at Gwalior or within the jurisdiction of
    the court at Gwalior. Order XXI Rule 50 CPC is, therefore, not attracted.
E   What is sought to be done by the decree holder is to seek the sale of a property
    belonging to the judgment debtor so as to realise the fruits of his decree.
    Since that property lies outside the jurisdiction of the court at Gwalior, the
    executing.court was not correct in over ruling the objection if the judgment
    debtor regarding the absence of jurisdiction in the Gwalior court to order
F   sale of the property outside its jurisdiction. The High Court was, therefore,
    justified in interfering with that order and in transferring the decree to the
    court having jurisdiction over the property that is sought to be proceeded
    against by the decree holder. There is, therefore, no infirmity in that part of
    the order of the High Court sought to be challenged by the decree holder.
                                                                  (Para 8) (406-E-GJ
G
          4. There is no merit in the challenge of the judgment debtor to the
    refusal of the High Court to interfere with the orders dated 19.3.2003 and
    7.7.2003. First of all, the judgment debtor had not challenged those orders at
    the appropriate time and had allowed them to operate until he chose to
H   challenge them while challenging the rejection of his objection to jurisdiction
                               MOHITBHARGAVAv. BHARATBHUSHANBHARGAVA                       401

~)'..         raised later. By order dated 19.3.2003 what the executing court did was, to          A
              direct a third party, who had subsequently acceded to the jurisdiction of the
              executing court, not to handover possession of the building in question and
              the documents concerned, to the judgment debtor. It is seen that the third
              person submitted to the jurisdiction of the court and surrendered the
              documents in his possession to the executing court and prayed to that court
              that he be relieved from the responsibility of managing the property in the
                                                                                                   B
              circumstances stated by him in his application. It was in that context that the
    ~    ..   executing court passed another order dated 7.7.2003 that the documents
         ..   produced by the third party be kept in safe custody of the court These two
              orders are certainly within the jurisdiction of the court which passed the
              decree since they are only orders of restraint being issued to a person from         c
              handing over a property in his possession to the judgment debtor along with
              the concerned documents and keeping the documents in safe custody. They
              are in the nature of a "freezing order" or a "Mareva injunction" and an order
              akin to an Anton Piller order, orders that can be issued even if the property
              or the person concerned is outside the jurisdiction of the court. In the
              circumstances, especially since the judgment debtor never bothered to question       D
              those orders as and when they were passed, the High Court was not in error
~    .
         '    in refusing to interfere with those orders. But since the High Court has
              quashed the order dated 6.4.2004 and directed the transfer of the decree to
              the court at Indore, the direction dated 11.5.2004 by the court at Gwalior for
              sale of the house at Indore by public auction must necessarily fall to the ground.   E
              Only to that extent, if at all, a clarification is needed. It will be open to the
              decree holder, now that the decree has been transmitted to the court at Indore,
              to move an application in the executing court at Indore for sale of the property
              in question.
                                                                    (Para 9) (406-H; 407-A-F)
    ......-                                                                                        F
                    CIVIL APPELLATE JURISDICTION: Civil Appeal No. 2078 of2007.

                  From the Judgment and Order dated 03.01.2006 of the High Court of
              Madhya Pradesh, Jabalpur Bench at Gwalior in Writ Petition No. 3627 of2005.

                                                      WITH                                         G
     -!-            C.A. No. 2079 of2007.

                    Mukul Rohtagi, Sushil Kumar Jain, H.D. Thanvi, Sarad Singhania, Puneet
              Jain, Chiristi Jain, Sanjay Dwivedi and Ashok Mathur for the Appellant.
                                                                                                   H
    402                     SUPREME COURT REPORTS                   [2007) 5 S.C.R.

A         Respondent 10 & 11 in-person.

          The Judgment of the Court was delivered by

          P.K. BALASUBRAMANYAN, J. Leave granted.

B          I. While the judgment debtor challenges the order of the High Court in
    a petition filed by him under Article 227 of the Constitution of India to the
    extent it rejects his prayers, the decree holder has also challenged the same
    order to the extent it upheld an objection of the judgment debtor. The decree
                                                                                      .-
    holder and the grand father of the judgment debtor among others, were             ..
    partners in a firm. A notice of dissolution was issued by some of the partners
c   to the grand father of the judgment debtor. Ultimately, the decree holder filed
    a suit in the District Court of Gwalior for dissolution of the partnership and
    for rendition of accounts. On 27.4.1981 the court passed a preliminary decree
    declaring that the partqership firm stood dissolved with effect from 20.6.1978
    and directing that accounts be taken to settle mutual rights and liabilities. A
    receiver who had been appointed pending the suit was directed to continue.
D
        2. The father of the judgment debtor pre-deceased the grand father of          ., .
  the judgment debtor. It is said that on 26.3.1985, the grand father executed
  a will bequeathing the properties to his grand son, the judgment debtor. At
  the relevant time, the judgment debtor, the legatee, was a minor. Provisions
E were made regarding the management of the properties during the minority
  of the judgment debtor. On 19.11.1985, the grand father of the judgment
  debtor died. The final decree proceedings continued and the Commissio~er
  submitted his report after scrutinising the accounts on 27.8.2002. On 29.11.2002,
  the District Court Gwalior, passed a final decree in the suit for dissolution.
  Under the final decree, the judgment debtor was liable to pay to the plaintiff      ...,,
F a sum of Rs.6,66.292.50 and a total sum of Rs.10,83,757/- to other partners and
  a sum of Rs.5,000/- as his share of fees to the Commissioner. According to
  the judgment debtor, he has filed an appeal against this final decree, but due
  to objections raised by the Registry of the High Court regarding the court fee
  payable, further orders are awaited in the appeal on that question.
G
        3. On 2.1.2003, the decree holder, the plaintiff in the suit, filed an
  execution petition in the District Court of Gwalior for execution of the decree.      -~

  In other words, the execution petition was filed in the court which passed the
  decree. Meanwhile, it is said that the will executed by the grand father
  designating the judgment debtor as the legatee was probated. On 19.3.2003,
H the decree holder moved the executing court for an injunction restraining the
               MOHITBHARGAVA v. BHARATBHUSHANBHARGAVA [BALASUBRAMANYAN,J.] 403

          person holding the building said to have been bequeathed to the judgment A
          debtor by his grand father, from handing over possession of the same to the
          judgment debtor and from handing over the documents of title to him. He
          also sought a direction restraining the bank holding an account of the estate
          from permitting the judgment debtor to operate the accounts. The executing
          court passed an order on 19.3.2003 directing the occupant of the building as B
          well as the bank not to transfer to the judgment-debtor the properties
          enumerated in the list submitted by the decree holder. The person holding
          the building moved the executing court praying that he be relieved from the
          responsibility of managing the property. He also produced certain documents
          in the executing court with a prayer that he be relieved of his obligations. On
          7.7.2003, the executing court, after taking notice of the documents produced C
          by the occupant of the building concerned, directed that the documents be
          kept in safe custody of the court. On 26.7.2003, an application was moved
          by the decree holder submitting that he had received an offer for the purchase
          of the building in question, which was situate at 14, Bakshi Colony, Indore,
          and praying that the said property may be sold by way of auction and the
          amount received be apportioned among the decree holder and other partners. D

.   )\
          Though the judgment debtor had not then and there challenged the orders
          dated 19 .3 .2003 and 7. 7.2003, he now raised an objection in the executing
          court that the executing court lacked territorial jurisdiction to order the sale
          of the property situate in Indore lying outside its territorial jurisdiction. The
          application was made under Section 39 read with Order XXI Rule 3 of the E
          Code of Civil Procedure (for short 'the Code'). The judgment debtor also filed
          an independent objection to the prayer of the decree holder for sale of the
          property at 14 Bakshi Colony, Indore. On 6.4.2004 the executing court rejected
         the objections from the judgment debtor. It held that it had territorial
         jurisdiction to proceed with the execution. It also passed an order directing
         that the house at No.14, Bakshi Colony, Indore be sold by public auction after F
         due publicity. Feeling aggrieved by the last order and belatedly feeling
         aggrieved by the earlier orders dated 19 .3 .2003 and 7. 7.2003, the judgment
         debtor approached the High Court originally by way of a revision under
         Section 115 of the Code, but on its being held that a revision is not maintainable,
         later by way of a motion under. Article 227 of the Constitution of India G
         challenging all the orders. The High Court held that the executing court, the
         District Court at Gwalior, Jacked territorial jurisdiction to continue the execution
         especially in respect of properties outside its jurisdiction or to order sale of
         building No. 14 Bakshi Colony, Indore and consequently set aside the order
         dated 6.4.2004 and transferred the execution to the concerned court at Indore
         for proceeding with the execution. But the High Court repelled the challenge H
    404                     SUPREME COURT REPORTS                   [2007] 5 S.C.R.

A to the earlier orders of restraint dated 19.3.2003 and 7.7.2003 passed by the
    executing court at Gwalior. Feeling aggrieved by the non-interference with the
    orders dated 19.3.2003 and 7.7.2003, the judgment debtor has approached this
    Court. Feeling aggrieved by the upholding of the objection of the judgment
    debtor to jurisdiction, the decree holder has come up to this Court.

B       4. We shall first deal with the objection of the decree holder to the
  transfer of the execution to the court at Indore having jurisdiction over the
  property sought to be brought to sale. The decree holder who appeared in
   person as also the counsel who was appearing on his behalf in Petition for
   Special Leave to Appeal (Civil) No. 7742 of2006 argued that Section 39(4) of
  the Code as amended in 2002, was not attracted since this was not a case to
C which Section 39(1) was applicable. It was contended that the court which
  passed the decree had the jurisdiction to execute the decree and the decree
  holder had approached that court for execution of the decree. There was no
  defect in jurisdiction in seeking to enforce the decree through the court which
  passed the decree. It was submitted that the decree was being executed by
D the present court at Gwalior only because of the abolition of the court before
  which the execution petition was originally filed and the High Court
  misunderstood the factual position while coming to the conclusion that Section
  39(4) was attracted. On behalf of the judgment debtor it was pointed out that       A •
  though normally it is correct to say that the court which passed the decree
  has the jurisdiction to execute the decree, the moment the decree holder
E sought to execute such a decree against property lying outside the jurisdiction
  of that court, Section 39(4) of the Code was attracted and the court was
  obliged to transfer the decree for execution to the proper court. Section 42
  of the Code was referred to. Counsel further contended that earlier, in terms
  of Section 39(1) of the Code, a discretion was vested in the court, either to
  proceed with the execution of the decree or to transfer the same to another
F court as understood by some of the decisions. There was a conflict of judicial
  opinion. The legislature had therefore stepped in with an amendment in the
  year 2002 curtailing that discretion and introducing sub-section (4) in Section
  39 of the Code making it clear that any attempt of the court to proceed with
  the execution against a property outside the jurisdiction of that court, would
  be one without authority and this legislative intent had been properly
G understood by the High Court when it transferred to the decree to another
  court. Both sides brought to our notice Salem Advocate Bar Association,
  TN. v. Union ofIndia, [2005] 6 S.C.C. 344 with particular reference to paragraphs
  22 to 24 dealing with Section 39 of the code.

          5. In that decision, clarifying the fields of operation of Order XX! Rule
H 3, Order XXI Rule 48 and Section 39 of the Code, this Court stated:
                  MOHITBHARGAVA v. BHARATBHUSHANBHARGAVA [BALASUBRAMANYAN,J.]          405
                     "Section 39 does not authorise the court to execute the decree outside A
                     its jurisdiction but it does not dilute the other provisions giving such
                     power on compliance with the conditions stipulated in those provisions.
J ..
                     Thus, the provisions, such as, Order 21 Rule 3 or Order 21 Rule 48
                     which provide differently, would not be affected by Section 39(4) of
                     the Code."
                                                                                             B
                     6. There cannot be any dispute over the proposition that the court
              which passed the decree is entitled to execute the decree. This is clear from
              Section 38 of the Code which provides that a decree may be executed either
              by the court which passed it or by the court to which it is sent for execution.
              Section 42 of the Code indicates that the transferee court to which the decree
              is transferred for execution will have the same powers in executing that decree C
              as if it had been passed by itself. A decree could be executed by the court
              which passed the decree so long as it is confined to the assets within its own
             jurisdiction or as authorised by Order XX! Rule 3 or Order XXI Rule 48 of
              the Code or the judgment debtor is within its jurisdiction, if it is a decree for
              personal obedience by the judgment debtor. But when the property sought
             to be proceeded against, is outside the jurisdiction of the court which passed D
             the decree acting as the executing court, there was a conflict of views earlier,
       • f    some courts taking the view that the court which passed the decree and
             which is approached for execution cannot proceed with execution but could
             only transmit the decree to the court having jurisdiction over the property and
             some other courts taking the view that it is a matter of discretion for the E
             executing court and it could either proceed with the execution or send the
             decree for execution to another court. But this conflict was set at rest by
             Amendment Act 22 of 2002 with effect from I. 7.2002, by adopting the position
             that if the execution is sought to be proceeded against any person or property
             outside the local limits of the jurisdiction of the executing court, nothing in
             Section 39 of the Code shall be deemed to authorise the court to proceed with F
             the execution. In the light of this, it may not be possible to accept the
             contention that it is a matter of discretion for the court either to proceed with
             the execution of the decree or to transfer it for execution to the court within
             the jurisdiction of which the property is situate.

                    7. Pending a suit, the court approached with the suit, may have G
             jurisdiction to order attachment of a property even outside its jurisdiction. In
             execution, under Order XXI Rule 54 of the Code, it may also have jurisdiction
             to order attachment of the property prohibiting the judgment debtor from
             transferring or charging the property in any way when it exercises its jurisdiction
             over the judgment debtor though not over the property itself. It could :n such
             a case issue a percept in terms of Section 46 of the Code and thereupon, the H
    4()6                    SUPREME COURT REPORTS                    (2007] 5 S.C.R.

A court to which the percept is sent, has to actually attach the property in the
    manner prescribed. Section 136 of the Code provides for an order of attachment
    in respect of a property outside the jurisdiction of the court and sending the           ,. ....
    order of attachment to the district court within whose local limits the property
    sought to be attached, is situate as provided for therein. But Section 136
B   clearly excludes execution of decrees from within its purview. An execution
    against immovable property lying outside the jurisdiction of the executing
    court is possible in tenns of order XXI Rule 3 of the Code which governs a
    case where the particular item of immovable property, fonns one estate or           .-
    tenure situate within the local limits of jurisdiction of two or more courts, and   •
    one of those courts is approached for execution of the decree against that
C   property. In a case where Order XXI Rule 3 has no application, the position
    seems to be that if a decree holder wants to proceed against a property situate
    outside the jurisdiction of the court which passed the decree, he has to get
    the decree transferred to the appropriate court for execution on moving the
    executing court in that behalf. Whatever doubts there might have been earlier
    on this question, must be taken to have been resolved by the introduction
D   of sub-section (4) of Section 39 of the Code which is a mandate to the
    executing court to desist from proceeding against a property situate outside
    its jurisdiction, unless it be a case coming under Order XXI Rule 3 of the
    Code.

E        8. In the case on hand, the property that is sought to be sold in
  execution of the decree for dissolution is not a property of the partnership.
  It is not a partnership asset held by the court Gwalior or within the jurisdiction
  of the court at Gwalior. Order XXI Rule 50 of the Code is, therefore, not
  attracted. What is sought to be done by the decree holder is to seek the sale
  of a property belonging to the judgment debtor so as to realise the fruits of
F his decree. Since that property lies outside the jurisdiction of the court at         y
  Gwalior, the executing court was not correct in over ruling the objection of
  the judgment debtor regarding the absence of jurisdiction in the Gwalior court
  to order sale of the property outside its jurisdiction. The High Court was,
  therefore, justified in interfering with that order and in transferring the decree
  to the court having jurisdiction over the property that is sought to be
G proceeded against by the decree holder. We, therefore, see no infinnity in that
  part of the order of the High Court sought to be challenged before us by the
  decree holder.

           9. Now coming to the challenge of the judgment debtor to the refusal
H of the High Court to interfere with the orders dated 19.3.2003 and 7.7.2003,
            MOHITBHARGAVAv.BHARATBHUSHANBHARGAVA[BALASUBRAMANYAN,J.)            407
     we find no merit in it. First of all, the judgment debtor had not challenged A
     those orders at the appropriate time and had allowed them to operate until
     he chose to challenge them while challenging the rejection of his objection
     to jurisdiction raised later. Of course, his argument is that once it is found
     that the court has no jurisdiction to proceed, the orders passed by it earlier
      should also automatically fall to the ground. We cannot agree. By order
      dated 19.3.2003 what the executing court did was, to direct a third party, who B
      had subsequently acceded to the jurisdiction of the executing court, not to
      handover possession of the building in question and the documents concerned,
     to the judgment debtor. It is seen that the third person submitted to the
     jurisdiction of the court and surrendered the documents in his possession to
     the executing court and prayed to that court that he be relieved from the
     responsibility of managing the property in the circumstances stated by him C
      in his application. It was in that context that the executing court passed
     another order dated 7. 7.2003 that the documents produced by the third party
      be kept in safe custody of the court. These two orders are certainly within
     the jurisdiction of the court which passed the decree since they are only
     orders of restraint being issued to a person from handing over a property in D
     his possession to the judgment debtor along with the concerned documents
     and keeping the documents in safe custody. They are in the nature of a
     "freezing order" or a "Mareva injunction" and an order akin to an Anton Piller
     order, orders that can be issued even if the property or the person concerned
      is outside the jurisdiction of the court. In the circumstances, especially since
     the judgment debtor never bothered to question those orders as and when E
     they were passed, we are of the view that the High Court was not in error
      in refusing to interfere with those orders. But since the High Court has
     quashed the order dated 6.4.2004 and directed the transfer of the decree to
     the court at Indore, the direction dated 11.5 .2004 by the court at Gwalior for
     sale of the house at No.14, Bakshi Colony, Indore by public auction must
     necessarily fall to the ground. Only to that extent, if at all, a clarification is F
     needed. It will be open to the decree holder, now that the decree has been
     transmitted to the court at Indore, to move an applicati<m in the executing
     court at Indore for sale of the property in question.

           I0. In the result, the challenge by both sides to the order of the High
     Court is rejected except to the extent of the clarification as above regarding G
~.
     the order dated 17.12.2000.

         11. The appeal is, therefore, dismissed subject to the above clarification.
     However, there will be no order as to costs.

     D.G.                                                        Appeal dismissed. H


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