Order 21, rule 2, of the Code of Civil Procedure deals with payment out of court to a decree-holder. That rule provides that where any money payable under a decree of any kind is paid out of court, or a decree of any kind is otherwise adjusted in whole or in part to the satisfaction of the decree-holder, the decree-holder shall certify such payment or adjustment to the court whose duty is to execute the decree and the court shall record the same accordingly.
The judgment-debtor or any person who has become surety for the judgment-debtor also may, within 30 days of the payment made by him, inform the court of such payment or adjustment and apply to the court to issue a notice to the decree-holder to show cause why such payment or adjustment should not be recorded as certified; and if decree-holder fails to show cause, the court shall record the same accordingly. If the decree holder contents the claim of the judgment-debtor it is the duty of the court to give a judicial decision.
Clause (2-A) of R. 2 provides that no payment or adjustment shall be recorded at the instance of the judgment-debtor unless (a) the payment is made by deposit into the court, or out of court, to the decree-holder by postal money order or through a bank or by any other mode wherein payment Is evidenced in writing; (b) the payment or adjustment is provided by documentary evidence; or the (c) the payment or adjustment is admitted by, or on behalf of the decree-holder in his reply to the notice, or before the court.
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Clause (3) of rule 2 provides that a payment or adjustment which has not been certified or recorded as aforesaid shall not be recognized by any court executing the decree. It has therefore, to be noted that it is only the execution court that is debarred from recognizing such uncertified payment. The bar does not apply to any other court where a suit for payment may lie.
The judgment-debtor has the following remedies in case of non-recognition of payment:
1. He may bring a suit for recovery of damages for breach of the contract represented by the payment or adjustment.
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2. He may bring a fresh suit to claim back the money that the creditor has not certified to the execution court.
3. He may file a criminal complaint under Section 210 of the Indian Penal Code for fraudulently executing a decree even after satisfaction or may prosecute the decree-holder for giving false statement under Sections 191 and 193, I.P.C.
4. He may move the court under R. 2 (2) of O. 21, if limitation has not expired, to record the alleged payment or adjustment.