Code of Civil Procedure • Official Statutory Text & Practice Guide
Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1908
Section 49 of Code of Civil Procedure: Transferee
Official Bare Act Text
Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary
Every transferee of a decree shall hold the same subject to the equities (if any) which the judgment-debtor might have enforced against the original decree-holder.
Statutory Defined Terms in this Section:(Click any term for official legal definition)
Section 49 codifies the rule that the transferee of a decree holds the same subject to the equities which the judgment-debtor might have enforced against the original decree-holder.
Transferee of Decree Equities: Every transferee of a decree shall hold the same subject to the equities (if any) which the judgment-debtor might have enforced against the original decree-holder.
Judgment-Debtor Set-Off Protection: If the judgment-debtor holds a cross-decree or valid financial set-off against the original decree-holder, he can plead it against the assignee of the decree.
Nemo Dat Principle in Decrees: The assignee cannot obtain a greater right of recovery than the original decree-holder possessed.
Key Landmark Precedents:
Mahadeo Prasad Singh v. Ram Lochan, (1980) 4 SCC 354: The Supreme Court held that Section 49 protects judgment-debtors from collusive assignments designed to defeat cross-claims and set-offs.
Asset Reconstruction Co. (India) Ltd. v. S.P. Velayutham, (2022) 8 SCC 210: Affirmed that commercial assignees of debt decrees take subject to all existing equities under Section 49.
Courtroom Practice & Strategic Litigation Guidance:
If an assignee seeks to execute a transferred decree against you, invoke Section 49 to set off any independent money decree or cross-claim you hold against the original decree-holder.
Legal Commentary & Landmark Judgments: Section 49
Section 49 codifies the rule that the transferee of a decree holds the same subject to the equities which the judgment-debtor might have enforced against the original decree-holder.
If an assignee seeks to execute a transferred decree against you, invoke Section 49 to set off any independent money decree or cross-claim you hold against the original decree-holder.