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Section73
The Code of Civil Procedure, 1908

Proceeds of execution sale to be rateably distributed among decree-holders

In force From 01 Jan 1909 Act 5 of 1908 As on 15 Oct 2026

Act 5 of 1908 Ministry Law and Justice Enacted 21 Mar 1908 In force 01 Jan 1909

Section 73 of the Code of Civil Procedure, 1908 deals with proceeds of execution sale to be rateably distributed among decree-holders. 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 The Act came into force on 01 Jan 1909.

(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 realization, 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 in cumbrance 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 judgement-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.

Section 73, The Code of Civil Procedure, 1908 (Act 5 of 1908).

Related judgements & precedents

These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.

  1. Stock Exchange, Bombay vs V. S. Kandalgaonkar

    Supreme Court of India 25 Sep 2014 Binding (Supreme Court) Reportable

    Court's Decision & Legal Precedent

    Membership rights in a stock exchange constitute personal privileges granted by the exchange and not property rights of the member. Upon a member's default, all such rights vest absolutely in the exchange and cannot be attached by tax authorities. However, securities and other assets deposited by a member with the exchange remain the property of the member and are therefore attachable by tax authorities. A stock exchange holding a first and paramount lien over member securities through rules made under the Securities Contracts (Regulation) Act, 1956, qualifies as a secured creditor with priority over government income tax dues, since government dues have preferential priority only over unsecured creditors, not over secured creditors.

    On this section: Provides that Government debts have priority. Court analyzed this in context of priority of Government dues versus secured creditors.

    Read the full order on eCourts India

The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.

Judgments citing this section

These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.

  1. High Court 23 Jan 2018 KLHC010342312017

    … EP No.13/2016 in the said suit, in which the property of the first respondent was put to sale on 01.04.2017 and therefore, the petitioner filed Ext.P2 application, EA No.215/2016 in EP No.13/2016 in OS No.29/2015 before the Sub Court, Kaunagappally seeking the benefit of rateable distribution as contemplated in Section 73 of the Code of Civil Procedure. The said plea has been rejected by the court below as per the impugned order dated 13.02.2017. 5. Section 73 CPC reads as follows: "73.Proceeds of execution-sale to be rateably distributed among decree holders.- (1) Where assets are held by Court and more persons than one …

    Read this order on eCourtsIndia

Questions about Section 73

What have the courts held on Section 73 of the Code of Civil Procedure?

Stock Exchange, Bombay vs V. S. Kandalgaonkar (25 Sep 2014) is the leading judgment on this section among those set out below: Provides that Government debts have priority. Court analyzed this in context of priority of Government dues versus secured creditors.

How do I find court cases under Section 73 of the Code of Civil Procedure?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: CPC 73, section 73 CPC, section 73 of the Code of Civil Procedure. People searching for it also type cpc 73 planalto and cpc 73 e 2015. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Stock Exchange, Bombay vs V. S. Kandalgaonkar (25 Sep 2014).

When did Section 73 of the Code of Civil Procedure come into force?

Section 73 of the Code of Civil Procedure, cited as CPC 73, came into force on 01 Jan 1909, having been enacted on 21 Mar 1908. It is in force as at the date shown on this page.

Other sections of this Act

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.