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Friday, 13 November 2026 Judgments, law jobs and study notes, written by a practising advocate
Code of Civil Procedure, 1908 · Part II: Execution

Section 73 CPC: Proceeds of execution-sale to be rateably distributed among decree-holders

Bare Act text

73. Proceeds of execution-sale to be rateably distributed among decree-holders.—(1) Where assets are held by a Court and more persons than one have, before the receipt of such assets, made application to the Court for the execution of decrees for the payment of money passed against the same judgment-debtor and have not obtained satisfaction thereof, the assets, after deducting the costs of realisation, shall be rateably distributed among all such persons:

Provided as follows:—

(a) where any property is sold subject to a mortgage or charge, the mortgage or incumbrancer shall not be entitled to share in any surplus arising from such sale;

(b) 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 mortgagee or incumbrancer, order that the property be sold free from the mortgage or charge, giving to the mortgagee or incumbrancer the same interest in the proceeds of the sale as he had in the property sold;

(c) where any immovable property is sold in execution of a decree ordering its sale for the discharge of an incumbrance thereon, the proceeds of sale shall be applied— First, in defraying the expenses of the sale; Secondly, in discharging the amount due under the decree; Thirdly, in discharging the interest and principal monies due on subsequent incumbrances (if any); and Fourthly, rateably among the holders of decrees for the payment of money against the judgment-debtor, who have, prior to the sale of the property, applied to the Court which passed the decree ordering such sale for execution of such decrees, and have no obtained satisfaction thereof.

(2) Where all or any of the assets liable to be rateably distributed under this section are paid to a person not entitled to receive the same, any person so entitled may sue such person to compel him to refund the assets.

(3) Nothing in this section affects any right of the Government.

Text of the Code of Civil Procedure, 1908 (Act No. 5 of 1908), as amended, including the changes for commercial disputes made by the Commercial Courts Act, 2015. Source: India Code, Government of India.

In simple words

Where assets are held by a Court and more than one person has, before receipt of the assets, applied for execution of money decrees against the same judgment-debtor without getting satisfaction, the assets, after deducting costs of realisation, are rateably distributed among all of them. The provisos deal with mortgaged or charged property: a mortgagee does not share in surplus, and the Court may, with the mortgagee's consent, order property sold free of the mortgage or charge.

Part II: Execution

  1. 36 Application to orders
  2. 37 Definition of Court which passed a decree
  3. 38 Court by which decree may be executed
  4. 39 Transfer of decree
  5. 40 Transfer of decree to Court in another State
  6. 41 Result of execution proceedings to be certified
  7. 42 Powers of Court in executing transferred decree
  8. 43 Execution of decrees passed by Civil Courts in places to which this Code does not extend
  9. 44 Execution of decrees passed by Revenue Courts in places to which this Code does not extend
  10. 44A Execution of decrees passed by Courts in reciprocating territory
  11. 45 Execution of decrees outside India
  12. 46 Precepts
  13. 47 Questions to be determined by the Court executing decree
  14. 48 Execution barred in certain cases (Repealed)
  15. 49 Transferee
  16. 50 Legal representative
  17. 51 Powers of Court to enforce execution
  18. 52 Enforcement of decree against legal representative
  19. 53 Liability of ancestral property
  20. 54 Partition of estate or separation of share
  21. 55 Arrest and detention
  22. 56 Prohibition of arrest or detention of women in execution of decree for money
  23. 57 Subsistence-allowance
  24. 58 Detention and release
  25. 59 Release on ground of illness
  26. 60 Property liable to attachment and sale in execution of decree
  27. 61 Partial exemption of agricultural produce
  28. 62 Seizure of property in dwelling-house
  29. 63 Property attached in execution of decrees of several Courts
  30. 64 Private alienation of property after attachment to be void
  31. 65 Purchaser’s title
  32. 66 Suit against purchaser not maintainable on ground of purchase being on behalf of plaintiff (Repealed)
  33. 67 Power for State Government to make rules as to sales of land in execution of decrees for payment of money
  34. 68 Power to prescribe rules for transferring to collector execution of certain decrees (Repealed)
  35. 69 Provisions of Third Schedule to apply (Repealed)
  36. 70 Rules of Procedure (Repealed)
  37. 71 Collector deemed to be acting judicially (Repealed)
  38. 72 Where Court may authorize Collector to stay Public Sale of Land (Repealed)
  39. 73 Proceeds of execution-sale to be rateably distributed among decree-holders
  40. 74 Resistance to execution
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