Supreme Court: What conditions the Appellate court should impose while staying execution of money decree?

11. To the same effect is the decision of this Court in Sihor Nagar Palika Bureau v. Bhabhlubhai Virabhai & Co.   MANU/SC/0315/2005 : (2005)4SCC1 , wherein it was held:

6. Order XLI Rule 1(3) of the CPC provides that in an appeal against a decree for payment of amount the appellant shall, within the time permitted by the Appellate Court, deposit the amount disputed in the appeal or furnish such security in respect thereof as the Court may think fit. Under Order XLI Rule 5(5) a deposit or security, as abovesaid, is a condition precedent for an order by the Appellate Court staying the execution of the decree. A bare reading of the two provisions referred to hereinabove, shows a discretion having been conferred on the Appellate Court to direct either deposit of the amount disputed in the appeal or to permit such security in respect thereof being furnished as the Appellate Court may think fit. Needless to say that the discretion is to be exercised judicially and not arbitrarily depending on the facts and circumstances of a given case. Ordinarily, execution of a money decree is not stayed inasmuch as satisfaction of money decree does not amount to irreparable injury and in the event of the appeal being allowed, the remedy of restitution is always available to the successful party. Still the power is there, of course, a discretionary power and is meant to be exercised in appropriate cases.

 IN THE SUPREME COURT OF INDIA

Civil Appeal Nos. 7410-7411 of 2008.

Decided On: 18.12.2008

Malwa Strips Pvt. Ltd. Vs. Jyoti Ltd.

Hon'ble Judges/Coram:

S.B. Sinha and Cyriac Joseph, JJ.

Author: S.B. Sinha, J.

Citation: AIR 2009 SC 1581.

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What principles the appellate court should follow while deciding stay application in appeal preferred against money decree?

11. To the same effect is the decision of this Court in Sihor Nagar Palika Bureau v. Bhabhlubhai Virabhai & Co., [MANU/SC/0315/2005 : 2005(2) RCR (Civil) 672 : (2005)4 SCC 1], wherein it was held:-

"6. Order 41 Rule 1(3) of the Civil Procedure Code provides that in an appeal against a decree for payment of amount the appellant shall, within the time permitted by the Appellate Court, deposit the amount disputed in the appeal or furnish such security in respect thereof as the Court may think fit. Under Order 41 Rule 5(5) a deposit or security, as abovesaid, is a condition precedent for an order by the Appellate Court staying the execution of the decree. A bare reading of the two provisions referred to hereinabove, shows a discretion having been conferred on the Appellate Court to direct either deposit of the amount disputed in the appeal or to permit such security in respect thereof being furnished as the Appellate Court may think fit. Needless to say that the discretion is to be exercised judicially and not arbitrarily depending on the facts and circumstances of a given case. Ordinarily, execution of a money decree is not stayed inasmuch as satisfaction of money decree does not amount to irreparable injury and in the event of the appeal being allowed, the remedy of restitution is always available to the successful party. Still the power is there, of course, a discretionary power and is meant to be exercised in appropriate cases."

 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

CR No. 5598 of 2023

Decided On: 09.01.2024

Sandeep Kumar Vs. Desh Raj and Ors.

Hon'ble Judges/Coram:

Sudeepti Sharma, J.

Citation:  MANU/PH/0526/2024.

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Supreme Court: Money decree can be stayed in exceptional cases

 Even if the said provision is not mandatory, the purpose for which such a provision has been inserted should be taken into consideration. An exceptional case has to be made out for stay of execution of a money decree. The Parliamentary intent should have been given effect to. The High Court has not said that any exceptional case has been made out. It did not arrive at the conclusion that it would cause undue hardship to the respondent if the ordinary rule to direct payment of the decreetal amount or a part of it and/or directly through the judgment debtor to secure the payment of the decreetal amount is granted. A strong case should be made out for passing an order of stay of execution of the decree in its entirety.

Supreme Court of India

M/S.Malwa Strips Pvt.Ltd. vs M/S.Jyoti Ltd. on 18 December, 2008

Bench: S.B. Sinha, Cyriac Joseph.

Author: S.B. Sinha, J.

Citation: AIR 2009 SC 1581.

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