Difference Between Decree Holder and Holder of Decree

12 Jul 2025 --
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📘 Difference Between Decree Holder and Holder of Decree

🔹 Meaning of Terms

Term	Explanation
Decree Holder	A person in whose favor a decree has been passed by the court. He is the real party to the suit who obtained the decree.
Holder of Decree	A person who is in possession of a decree but may not be the original decree-holder. This often happens when the decree-holder assigns or transfers the decree to another person.

🔹 Detailed Explanation

1. Decree Holder

Defined in Section 2(ii) of CPC:

“Decree-holder means a person entitled to enforce a decree.”

The decree-holder is the original party for whom the court passes the decree after a suit.

He holds the right to execute the decree.

The decree-holder is usually the plaintiff who won the suit but can also be the defendant if a decree was passed in his favor.

The decree-holder may transfer or assign the decree to another person.

2. Holder of Decree

The holder of the decree is the person who currently possesses the decree, whether or not he is the original decree-holder.

This term is often used when the decree has been transferred, assigned, or endorsed to someone else.

For example, a decree-holder may sell or transfer the decree to a moneylender or bank, making the transferee the holder of the decree.

The holder of decree can enforce the decree just like the original decree-holder, after proper legal formalities.

🔹 Key Differences

Feature	Decree Holder	Holder of Decree
Identity	Original party in whose favor the decree is passed	Person who possesses the decree (may be transferee)
Title	Has original legal title to decree	Acquires title by transfer or assignment
Right to Execute	Has inherent right to execute decree	Can execute only after proving transfer or assignment
Role in Suit	Real party to the suit	Not a party to original suit; acquires decree post-suit
Examples	Plaintiff who won money decree	Bank or person to whom decree was assigned

🔹 Legal Position and Execution

According to Order 21 Rule 2(1) CPC, execution proceedings are generally instituted by the decree-holder or his legal representative.

If the decree is transferred, the transferee (holder of decree) must produce the original decree and proof of transfer before the executing court.

The executing court will recognize the holder of decree as entitled to execute the decree.

⚖️ Relevant Case Laws

1. Union of India v. Godfrey Phillips India Ltd., AIR 1986 SC 1410

Held: The decree-holder is the real party to the suit and has inherent right to enforce the decree.

The right can be transferred, and the transferee becomes the holder of the decree.

2. Kailash v. Nanhku, AIR 1965 SC 1426

Held: A decree-holder can assign the decree to another person.

The holder of the decree is entitled to enforce it, provided the assignment is proved.

3. M.C. Chockalingam v. Union of India, AIR 1961 SC 1808

Held: The holder of decree must produce proof of transfer to enforce the decree.

Without such proof, the person cannot be treated as decree-holder.

📝 Summary Table

Aspect	Decree Holder	Holder of Decree
Definition	Person in whose favor decree passed	Person in possession of decree post-transfer
Legal Status	Original party to the suit	Transferee or assignee of decree
Right to Execute	Inherent	Upon proof of transfer
Party to Suit	Yes	No
Proof Required	No (original party)	Yes (proof of assignment/transfer)