Debtors can't be jailed merely over unpaid decrees: LHC

Court says personal liberty cannot be curtailed without mandatory inquiry

LAHORE:

The Lahore High Court (LHC) has ruled that a judgment-debtor cannot be sent to civil prison merely because a money decree remains unpaid, holding that an executing court must first conduct the mandatory inquiry prescribed under Section 51 read with Order XXI Rule 40 of the Code of Civil Procedure (CPC), record evidence, hear both parties, and provide written reasons establishing the statutory grounds before curtailing a person's liberty.

Allowing a constitutional petition, the court set aside an order dated May 13, 2026, under which the petitioner had been committed to civil prison for non-payment of a decretal amount.

It held that deprivation of personal liberty cannot be ordered mechanically on the sole basis of an unsatisfied decree and remanded the matter to the executing court for fresh proceedings in accordance with law.

An LHC division bench headed by Justice Ahmad Nadeem Arshad held that compliance with Section 51 and Order XXI Rule 40 CPC is not a procedural formality but a mandatory statutory obligation. It observed that while Section 51 lays down the substantive conditions for ordering arrest and detention, Order XXI Rule 40 provides the procedural mechanism through which an executing court must determine whether those conditions actually exist.

It held that an executing court must provide both the decree-holder and the judgment-debtor an opportunity to produce evidence before reaching any conclusion.

Explaining the scope of Section 51 CPC, the court held that detention in civil prison is an exceptional mode of execution rather than a punitive measure.

It observed that arrest can only be ordered where the court records its satisfaction, supported by evidence and reasons in writing, that the judgment-debtor falls within one or more of the statutory contingencies, including an attempt to obstruct execution by absconding or leaving the court's jurisdiction, dishonest transfer or concealment of property after the institution of the suit, wilful refusal to satisfy the decree despite having sufficient means, or liability arising from a fiduciary obligation.