Order For Rateable Distribution Of Property Among Various Decree Holders Bars Them From Setting-Off Their Individual Debt

Case: Subaida Ebrahim v. Moosa C & Ors.

Coram: Justice Anil K. Narendran and Justice P.G Ajithkumar

Case No.: F.A.O.NO. 25 OF 2021

Court Observation: “A conjoint reading of Section 73 and Order XXI Rule 72 would show that whenever a set-off is allowed, the order of rateable distribution shall have to be reckoned with and only after ascertaining the proportionate amount entitled by the decree holder-purchaser, his entitlement to set off can be decided. The provisions do not convey a meaning that in a case where rateable distribution is ordered by the Court, there can be an unbridled right to the decree holder-purchaser to set off the entire decree debt due to him. What he is entitled is only to set off the proportionate amount he is entitled on the rateable distribution.”

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