Section 61 of The Presidency Small Cause Courts Act, 1882
If any claim is made to, or in respect of, any property seized under this Chapter, or in respect of the proceeds or value thereof, by any person not being the debtor, the Registrar of the Small Cause Court, upon the application of the bailiff who seized the property, may issue a summons calling before the Court the claimant and the person who obtained the warrant. And thereupon any suit which may have been brought in the High Court in respect of such claim shall be stayed, and any Judge of the High Court, on proof of the issue of such summons and that the property was so distrained, may order the plaintiff to pay the costs of all proceedings in such suit after the issue of such summons. And a Judge of the Small Cause Court shall adjudicate upon such claim and make such order between the parties in respect thereof and of the costs of the proceedings as he thinks fit; and such order shall be enforced as if it were an order made in a suit brought in such Court. The procedure in Small Cause Courts in cases under this section shall conform, as far as may be, to the procedure in an ordinary suit in such Courts.
Summary
- If someone other than the debtor claims ownership of seized property or its sale proceeds, the Registrar can intervene.
- Upon the seizing bailiff's application, the Registrar can issue a summons to bring the claimant and the warrant-holder before the court.
- Any lawsuit concerning this property claim that was already filed in the High Court will be stayed, meaning paused immediately.
- A High Court Judge can order the claimant to pay the costs of that paused High Court lawsuit once the Small Cause Court summons is issued.
- A Judge of the Small Cause Court will adjudicate, meaning formally judge, the claim and make a final ruling on who owns the property and who pays the proceedings' costs.
- The court will follow the same procedures as it would for a normal civil lawsuit.
Practical examples
FAQ
1. What happens if a third party claims ownership of property seized under the Presidency Small Cause Courts Act?
Under Section 61 of the Presidency Small Cause Courts Act, 1882, if a stranger claims seized property, the Registrar can issue a summons to bring the claimant and the landlord before the Small Cause Court to resolve the dispute.
2. Can a High Court lawsuit proceed if the Small Cause Court issues a summons for seized property under Section 61 of the Presidency Small Cause Courts Act?
No. Under Section 61 of the Presidency Small Cause Courts Act, 1882, any suit brought in the High Court regarding the claim to the seized property must be stayed, which means paused or frozen, once the Small Cause Court summons is issued.
3. Who decides the final ownership of seized property claimed by a stranger under Section 61 of the Presidency Small Cause Courts Act?
Under Section 61 of the Presidency Small Cause Courts Act, 1882, a Judge of the Small Cause Court adjudicates, meaning formally judges, the claim and makes an order regarding property ownership and costs.
Test yourself
Q1.Under Section 61 of the Presidency Small Cause Courts Act, 1882, if a third party claims ownership of a seized item, who initiates the court summons?
Q2.Under Section 61 of the Presidency Small Cause Courts Act, 1882, what is the legal effect on a High Court lawsuit concerning a seized item once a Small Cause Court summons is issued under this section?
Q3.Under Section 61 of the Presidency Small Cause Courts Act, 1882, how does the Small Cause Court determine the procedure for handling a stranger's claim to seized goods?
Q4.Under Section 61 of the Presidency Small Cause Courts Act, 1882, who has the authority to adjudicate, meaning to hear and formally judge, the stranger's claim to the distrained goods?