Rule 13 of CPC : Rule 13: Decree in administration-suit.

CPC

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Explanation using Example

Example 1:

Scenario: Ram, a resident of Mumbai, passes away leaving behind a property and several debts. His heirs file a suit in the court for the administration of his estate.

Application of Rule 13:

  1. Preliminary Decree: The court first issues a preliminary decree. This decree orders an accounting of Ram's property and an inquiry into his debts and liabilities.
  2. Administration of Property: During the administration process, it is discovered that Ram's property is insufficient to cover all his debts.
  3. Secured and Unsecured Creditors: The court follows the rules applicable to insolvent estates to determine the rights of secured and unsecured creditors. For example, a bank holding a mortgage on Ram's house (secured creditor) will have priority over an unsecured creditor like a credit card company.
  4. Claims Submission: All creditors, including those with future or contingent claims, are allowed to s...

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