Rule 20 of CPC : Rule 20: Cross-decrees and cross-claims in mortgage-suits.

Explanation using Example

Example 1:

Ravi and Suresh are involved in a legal dispute over a property. Ravi has a mortgage on the property, and Suresh has a separate claim against Ravi for unpaid debts. The court issues a decree for the sale of the property to enforce Ravi's mortgage. According to Rule 20, the provisions of rules 18 and 19 will apply. This means that if there are any cross-decrees or cross-claims between Ravi and Suresh, they will be considered and adjusted before the sale proceeds are distributed. For instance, if Suresh has a decree against Ravi for Rs. 2 lakhs and Ravi has a decree against Suresh for Rs. 1 lakh, the court will adjust these amounts, and Suresh will receive Rs. 1 lakh from the sale proceeds after the mortgage is settled.

Example 2:

Anita has taken a loan from a bank by mortgaging her house. She also has a separate legal dispute with her business partner, Meera, who has a claim against her for breach of contract. The court orders the sale of Anita's house to enforce the mortgage. Under Rule 20, the provisions of rules 18 and 19 will apply, meaning that any cross-decrees or cross-claims between Anita and Meera will be taken into account. If Meera has a decree against Anita for Rs. 3 lakhs and Anita has a decree against Meera for Rs. 1 lakh, the court will adjust these amounts. Meera will receive Rs. 2 lakhs from the sale proceeds after the mortgage is settled.