CPC Section 64 — Private alienation of property after attachment to be void

Civil

Summary

Once a court has attached property in a legal case, any private sale, gift, or transfer of that property, or any payment of a debt or money owed to the person against whom the court order was made, is invalid and cannot be used to defeat the claims that the attachment was meant to secure. However, this rule does not apply if the transfer or delivery was made to fulfill a contract that was already signed and officially registered before the attachment was ordered. For this section, claims that can be enforced under the attachment also include claims for the fair distribution of assets among multiple creditors.

Official Text

(1) Where an attachment has been made, any private transfer or delivery of the property attached or of any interest therein and any payment to the judgment-debtor of any debt, dividend or other monies contrary to such attachment, shall be void as against all claims enforceable under the attachment.

(2) Nothing in this section shall apply to any private transfer or delivery of the property attached or of any interest therein, made in pursuance of any contract for such transfer or delivery entered into and registered before the attachment.

Explanation.For the purpose of this section, claims enforceable under an attachment include claims for the rateable distribution of assets.