Section 322: Third parties' rights unaffected by execution

Supreme Court decisions interpreting this section

1. Supreme Court Judgment No. 853/2567 (2024)

   Section 322 safeguards the rights of a third party that may be disturbed by execution and applies only outside the scope of Section 324; because it opens with the words 'subject to Section 324,' a mortgagee's right to be paid from the proceeds falls under Section 324, not Section 322.

   The Supreme Court contrasted Section 322 with Section 324(1). Section 322 protects third parties whose rights may be affected by execution, whereas Section 324 governs persons, including a mortgagee, entitled to be paid from the sale proceeds and does not require them to be outside persons. Since Section 322 begins 'subject to Section 324,' it applies only beyond the situations Section 324 covers.

2. Supreme Court Judgment No. 4414/2564 (2021)

   A creditor substituted as the mortgagee judgment creditor who petitions under the new Section 322 to segregate its share of the auction proceeds as a mortgage preferential creditor is exercising a right within the execution of the judgment, and that petition is not barred as a repeated proceeding under Section 144.

   After being allowed to step into the shoes of the judgment creditor, the petitioner, as mortgagee, sought to segregate its share of the auction proceeds under the new Section 322. The Supreme Court held this was part of enforcing the judgment and was exempt from the rule against repeated proceedings under Section 144(5).

Curated decisions with case numbers verified against the Supreme Court database. English renderings are the firm's editorial translation for study.