The appeal is dismissed.

The costs of appeal are assessed against the defendant, including the part arising from the supplementary participation.

The grounds of appeal are examined (to the extent of supplement in case of supplemental appellate briefs not timely filed).

1. Regarding ground of appeal No. 1

A. According to Article 151(1) of the Civil Execution Act, a debtor who has appeared on the date of distribution may raise an objection against the creditor's claims or the precedence of such claims.

In the case of an auction to exercise a real estate security right, the debtor may raise an objection against the amount of dividends of the creditor by asserting the substantive reasons, such as the non-existence or invalidity of the mortgage and the secured claim, in the distribution procedure, in order to prevent the distribution of dividends to the mortgagee who has no right to receive the dividends, and further file a lawsuit of demurrer against the

(See Supreme Court Decision 2004Da51627 Decided September 22, 2006). Meanwhile, Article 21(1) of the former Trust Act (wholly amended by Act No. 10924, Jul. 25, 2011; hereinafter the same) provides that “No compulsory execution or auction shall be conducted against trust property: Provided, That this shall not apply where the right arising prior to the trust or the right arising from the performance of trust affairs is given.”

According to the above provisions, the trust property can only become a responsible property, unless there are special circumstances, only the rights arising before the trust or the rights arising in the course of performing the trust affairs.

In light of the above provisions and the legal principles, in a case where a decision of permission for sale to a purchaser is confirmed in a compulsory execution or auction of trust property and a distribution procedure is carried out with respect to the proceeds of sale, distribution may not be made unless there are special circumstances, unless there are creditors holding claims equivalent to “right arising from the cause of trust” or “right arising from the process of performing trust affairs”

Therefore, the obligor is entitled to receive the dividend from the obligee who is not entitled to receive the dividend.