Section 64 of CPC : Section 64: Private alienation of property after attachment to be void.

Explanation using Example

Example 1:

Scenario: Ramesh owes Rs. 5 lakhs to Suresh and fails to repay the debt. Suresh files a lawsuit, and the court orders the attachment of Ramesh's house as part of the execution process.

Situation: After the court's attachment order, Ramesh tries to sell his house to his friend, Rajesh, for Rs. 4 lakhs.

Application of Section 64:

• The sale of the house by Ramesh to Rajesh is considered a private transfer of the attached property.
• According to Section 64(1) of the Code of Civil Procedure, 1908, this transfer is void because it was made after the attachment order.
• Therefore, Rajesh cannot claim ownership of the house, and the house remains attached to satisfy Suresh's claim.

Example 2:

Scenario: Priya owes Rs. 3 lakhs to Anil and fails to repay the debt. Anil files a lawsuit, and the court orders the attachment of Priya's car as part of the execution process.

Situation: Before the court's attachment order, Priya had entered into a registered contract with her cousin, Meena, to sell the car for Rs. 2.5 lakhs. The contract was registered a month before the attachment order.

Application of Section 64:

• The sale of the car by Priya to Meena is a private transfer of the attached property.
• According to Section 64(2) of the Code of Civil Procedure, 1908, this transfer is valid because it was made in pursuance of a contract that was entered into and registered before the attachment order.
• Therefore, Meena can claim ownership of the car, and the attachment order does not affect her rights.

Example 3:

Scenario: Vijay owes Rs. 10 lakhs to Rohan and fails to repay the debt. Rohan files a lawsuit, and the court orders the attachment of Vijay's bank account as part of the execution process.

Situation: After the court's attachment order, Vijay's employer deposits his monthly salary of Rs. 50,000 into the attached bank account.

Application of Section 64:

• The deposit of the salary into the attached bank account is considered a payment to the judgment-debtor (Vijay) contrary to the attachment.
• According to Section 64(1) of the Code of Civil Procedure, 1908, this payment is void as against all claims enforceable under the attachment.
• Therefore, the Rs. 50,000 deposited into the bank account can be used to satisfy Rohan's claim.

Example 4:

Scenario: Sunita owes Rs. 2 lakhs to Neha and fails to repay the debt. Neha files a lawsuit, and the court orders the attachment of Sunita's shares in a company as part of the execution process.

Situation: After the court's attachment order, Sunita receives a dividend of Rs. 10,000 from the company for her shares.

Application of Section 64:

• The receipt of the dividend by Sunita is considered a payment to the judgment-debtor contrary to the attachment.
• According to Section 64(1) of the Code of Civil Procedure, 1908, this payment is void as against all claims enforceable under the attachment.
• Therefore, the Rs. 10,000 dividend can be used to satisfy Neha's claim.