KOTAK & CO. vs STATE OF U.P.

The Supreme Court held that once an order for rateable distribution is made by the executing court, the assets of the judgment-debtor cease to be their property and become that of the decree-holder, irrespective of actual payment. The court emphasized that the rights of decree-holders are determined by the distribution order, which acts as a judgment and decree. The court set aside the High Court's order, restoring the executing court's decision, affirming that the State's claim post-distribution is ineffective as the property is no longer under the debtor's control.