Order XX Rule 11 CPC - Payment by Instalments in Money Decrees
Order XX Rule 11 of the Code of Civil Procedure, 1908 (CPC) empowers a civil court to postpone payment of a money decree or permit payment by instalments. The requirements differ depending on whether relief is granted when the decree is passed or after it has been passed.
Order XX Rule 11 CPC - statutory provision
Rule 11(1): Direction at the time of decree
Where and in so far as a decree is for the payment of money, the Court may for any sufficient reason incorporate in the decree, after hearing such of the parties who had appeared personally or by pleader at the last hearing, before judgment, an order that payment of the amount decreed shall be postponed or shall be made by instalments, with or without interest, notwithstanding anything contained in the contract under which the money is payable.
Rule 11(2): Order after decree
After the passing of any such decree the Court may, on the application of the judgment-debtor and with the consent of the decree-holder, order that payment of the amount decreed shall be postponed or shall be made by instalments on such terms as to the payment of interest, the attachment of the property of the judgment-debtor, or the taking of security from him, or otherwise, as it thinks fit.
The text above follows the central CPC provision. Applicable High Court or state amendments and local civil rules should also be checked.
Meaning and important legal terms
Decree: Under Section 2(2) CPC, the formal expression of an adjudication which, so far as regards the court expressing it, conclusively determines the rights of the parties with regard to all or any matters in controversy in the suit, subject to the statutory inclusions and exclusions.
Decree-holder: Under Section 2(3) CPC, a person in whose favour a decree has been passed or an order capable of execution has been made.
Judgment-debtor: Under Section 2(10) CPC, a person against whom a decree has been passed or an order capable of execution has been made.
Instalments: Scheduled part-payments of the decretal amount instead of a single lump-sum payment. Postponement: Deferral of the time for payment. Both depend on an order of the court.
Before and after the decree: key distinction
| Issue | Rule 11(1) | Rule 11(2) |
|---|---|---|
| Stage | When passing the decree | After the decree is passed |
| Basis | Sufficient reason and hearing the specified parties | Application by judgment-debtor and consent of decree-holder under central text |
| Possible directions | Postponement or instalments, with or without interest | Postponement or instalments, with appropriate conditions such as interest or security |
How to seek payment by instalments
Before judgment, a party seeking instalments should place the relevant financial circumstances, proposed payment dates and supporting records before the court, so that the court can consider whether sufficient reason exists under Rule 11(1). After a money decree, the judgment-debtor may apply under Rule 11(2), proposing a workable schedule and addressing the decree-holder's consent, subject to applicable local amendments.
The court may consider the decretal sum, payment capacity, previous conduct, prejudice to the decree-holder and any appropriate safeguards. Merely filing an application does not itself suspend execution; a specific judicial order is necessary.
Related CPC provisions
Section 34 CPC addresses interest in money decrees; Section 51 CPC deals with modes of execution; Order XXI Rule 1 specifies modes of payment under a decree; and Order XXI Rule 2 addresses certification or recording of payments or adjustments made outside court. Their application depends on the facts and the decree.
Illustration
If a court decrees payment of Rs. 2,40,000, it may, for sufficient reason and after the hearing contemplated by Rule 11(1), direct payment in twelve monthly instalments of Rs. 20,000, subject to any interest or other terms specified. If the decree has already been passed, an instalment arrangement under the central Rule 11(2) requires an application by the judgment-debtor and the decree-holder's consent.
Official legal reference
Read the Code of Civil Procedure, 1908 (India Code, official PDF), including Order XX Rule 11, Section 2 and Order XXI. Check the applicable High Court rules and state amendments for any local variations.
Frequently asked questions
Can a civil court permit instalments in a money decree?
Yes. Order XX Rule 11 permits postponement or instalments on the conditions specified in its two sub-rules.
Is the decree-holder's consent required?
Under the central CPC text, Rule 11(2) requires the decree-holder's consent for an order after the decree. Rule 11(1), applicable before judgment when incorporating directions in the decree, does not impose the same consent requirement.
Does filing an instalment application stop execution?
No. Filing an application alone does not automatically stay execution proceedings.