The Supreme Court allowed the appeals and set aside the High Court’s judgment that had protected a residential property from attachment during the execution of a recovery decree. A bench comprising Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe held that the exemption from attachment of a residential house under Section 60(1)(ccc) of the Code of Civil Procedure (CPC) is a personal privilege meant exclusively for the judgment-debtor and does not extend to or benefit the legal representatives after the debtor’s demise. The Court further clarified the proper interplay and procedural transition of execution proceedings from civil courts to the Debts Recovery Tribunal (DRT) under the Recovery of Debts and Bankruptcy Act, 1993, reversing unjustified interference by the High Court.
- Factual Background & Compromise Decree: M/s. Sterling Malt & Foods Pvt. Ltd. defaulted on credit facilities availed from Punjab & Sind Bank, leading to a civil suit and a subsequent compromise decree in October 1991. While a trust and its trustees took over management to revive the company, the original managing director (the guarantor/judgment-debtor) retained personal liability. Following his death in November 1994, execution proceedings were initiated against his legal heirs (respondents).
- Transfer to DRT: Pursuant to Section 31 of the Recovery of Debts and Bankruptcy Act, 1993, the execution case was transferred to the Debts Recovery Tribunal (DRT) in Jabalpur. The Recovery Officer initiated steps to attach and sell the residential property situated in Panchsheel Park, New Delhi.
- High Court’s Intervention: The legal heirs of the judgment-debtor approached the High Court of Madhya Pradesh via a writ petition, claiming protection under Section 60(1)(ccc) CPC (which exempts one main residential house from attachment under specific regional amendments). The High Court ruled in favor of the legal heirs, prompting the bank and auction purchasers to appeal to the Supreme Court.
- Core Legal Ruling on Section 60(1)(ccc) CPC: The Supreme Court authoritatively ruled that the statutory protection shielding a residential house from attachment is a personal benefit extended specifically to the judgment-debtor to prevent destitution. Once the judgment-debtor passes away, the protection does not automatically transmute as an inheritable right for legal representatives.
- Final Order: Finding the High Court’s interference with the DRT execution proceedings legally flawed and unsupported by any factual foundation established by the respondents before the Recovery Officer, the Supreme Court set aside the High Court’s judgment and upheld the recovery process.
2026 INSC 863
Sheela Gehlot v. Mohini Hardayal Singh & Ors. (D.O.J. 14.08.2026)



