BALAJI INDUSTRIES Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) THE judgment-debtors confronted with liability under the money decree, have filed this revision petition under Section 115 of the Civil Procedure Code, 1908 (for short "the Code"), against the order dated May 1, 1992, passed by the executing court (Sixth Additional Judge to the Court of the District Judge, Indore) in Execution Case No. 71/84-A, thereby rejecting their objections under Section 47 read with Section 151 of the Code. Objections were preferred on the linchpin that the decree-holder bank has already recovered the sum of Rs. 3,50,000, a substantial part of the decretal liability, from the Deposit Insurance and Credit Guarantee Corporation (for short "the Corporation") on the strength of the premium paid from their (judgment-debtors) accounts and it cannot be permitted to recover the aforesaid amount from them (judgment-debtors) again and to indulge in undue enrichment. The executing court said a monosyllabic "no" to the objections, on the ground of absence of "privity of contract" between them and the Corporation and the absence of such a fetter in the decree.

(2.) I have heard Shri S. C. Bagadia, learned senior counsel with Shri Pan-kaj Bagadia for the applicants and Shri S. C. Consul, learned counsel for non-applicant No. 1. None appeared for non-applicants Nos. 2 to 4.

(3.) SHRI Bagadia has submitted that the order is illegal and vitiated by material irregularity in that "recovery" cannot be permitted to be duplicated despite the decree and that the promisee, having accepted performance of the promise from the Corporation, i. e. , a third person, to the aforesaid extent, cannot be allowed to enforce it against the promisor via execution. He has also submitted that enforcement, designed to secure undue enrichment, would amount to practising fraud and to committing of abuse of the process of the court. In further pursuit, he has placed reliance on Section 41 of the Indian Contract Act, 1872, and on Union of India v. Gangabishan, AIR 1973 Cal 141. He has also stated that efforts for a reasonable settlement with the bank are in progress.