SMT. KAMALA DEVI vs SETH TAKHATMAL AND ANOTHER

The Supreme Court held that under Section 15 of the Displaced Persons (Debts Adjustment) Act, 1951, execution proceedings in a Civil Court must be stayed only if the Tribunal has territorial jurisdiction and the debt is owed by a displaced person. Since the Tribunal returned the application for lack of jurisdiction, the executing Court was correct in refusing to stay the proceedings. Furthermore, the Court found that the surety bond was not enforceable as the conditions for its enforcement, namely a demand for the bills and a default by the principal debtor, were not fulfilled.