(a) Where an order for sale of any property has been made by a Court in
execution, the proceeds of the sale, after the deduction of the expenses of sale,
shall be distributed rate-ably amongst all judgement creditors who have
applied for execution at any time before the date on which the order for sale
of such property was made;
(b) Where money is received by a Court in satisfaction of execution, otherwise
than by way of sale, it shall be distributed rate-ably amongst all judgement
creditors who have applied for execution before the money was received by
the Court;
(c) Where any property is sold subject to a mortgage or charge, the mortgager or
encumbrance shall not be entitled to share in any not be entitled to share in
any surplus arising from such sale;
(d) Where any property liable to be sold in execution of a decree is subject to a
mortgage or charge, the Court may, with the consent of the mortgager or
encumbrancer, order that the property be sold free from the mortgager or
charge, giving to the mortgager or encumbrance the same interest in the
proceeds of the sale as he had in the property sold;
(e) Where any immovable property is sold in execution of a decree ordering its
sale for the discharge of an encumbrance thereon, the proceeds of sale shall be
applied:(i) in defraying the expenses of the sale;
(ii) in discharging the amount due under the decree;
(iii) in discharging the interest and principal moneys due on subsequent
encumbrances (if any); and
(iv) rate-ably among the holders of decrees for the payment of money against
the judgement debtor in accordance with the provisions of paragraph (a).
2) Where all or any of the assets liable to be rate-ably distributed under this section are
paid to a person not entitled to receive them, any person so entitled may sue such
person to compel him to refund the assets.
3) Nothing in this section affects any rights of the CANS or any person who by any law
has a right to be paid in priority to other creditors.
288.
Payment by Installments:1) The Court which is carrying out the execution may on the application of the
judgement debtor and with the consent of the decree holder after attachment of the
property of the judgment debtor has been made or before such attachment upon the
judgement debtor furnishing such security as the Court thinks fit, order that payment
of the amount decreed shall be made by installments upon such terms as it thinks fit.
2) Where the Court has made an order under sub-section (1) and default is made in
execution of the order, the Court shall set aside the order for payment by installments
and shall on the application of the decree holder issue process for the recovery of the
whole amount of the judgement debt remaining unpaid.
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