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Criminal Procedure Code QUESTION #9497
Question 1
A is found to owe a debt to both B and C by separate decrees. In execution, B attaches certain property of A. C subsequently also attaches the same property. Both attach before any sale proceeds are realised. The property is sold and the sale proceeds are insufficient to satisfy both decrees. How should the executing Court distribute the proceeds?
  • The proceeds are distributed rateably among all decree-holders who have attached the property, in proportion to their respective decrees✔️
  • The Court exercises discretion based on the equities of each case
  • The proceeds go entirely to B since he attached first
  • C receives nothing since his attachment was subsequent
Correct Answer Explanation
Section 73 CPC requires that where assets are realised by sale of property attached in execution of decrees of several Courts, the proceeds shall be distributed rateably among all decree-holders. Priority of attachment does not give a preference in distribution of realised proceeds.