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  • provisions of sub-rule (2) of Rule 98 and Rule 102 of Order XXI of CPC,
  • A.P. (Telangana Area) Tenancy and Agricultural Lands Act, 1950
  • Rules 97, 98 read with Rule 101 of Order XXI of CPC. Rule 97
  • Order XXI Rules 97 and 98 read with Rule 101 of CPC
  • Rules 98 and 102 of Order XXI read as under: "Rule 98
  • Bombay Tenancy and Agricultural Lands Act 1948,
  • Sub-rule 2 of Rule 98 and Rule 102
  • Rule 101 of Order XXI of CPC
  • Rule 35(3) of Order XXI CPC
  • provisions of sub-rule (2),-- (a)
  • Rule 97(1) of Order XXI.
  • Rule 35(3) of Order XXI,
  • Rule 102: Rules
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Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • provisions of sub-rule (2) of Rule 98 and Rule 102 of Order XXI of CPC,
  • A.P. (Telangana Area) Tenancy and Agricultural Lands Act, 1950
  • Rules 97, 98 read with Rule 101 of Order XXI of CPC. Rule 97
  • Order XXI Rules 97 and 98 read with Rule 101 of CPC
  • Rules 98 and 102 of Order XXI read as under: "Rule 98
  • Bombay Tenancy and Agricultural Lands Act 1948,
  • Sub-rule 2 of Rule 98 and Rule 102
  • Rule 101 of Order XXI of CPC
  • Rule 35(3) of Order XXI CPC
  • provisions of sub-rule (2),-- (a)
  • Rule 97(1) of Order XXI.
  • Rule 35(3) of Order XXI,
  • Rule 102: Rules
Smart Summary

Structured Summary of the Opinion

Factual and Procedural Background

The suit underlying these proceedings is O.S. No. 8 of 1975, filed by the 1st respondent (Kammari Balaram) in the Court of the Subordinate Judge, Nizamabad, against the 2nd respondent (Akula Bhumalingam) for declaration of title and recovery of possession. The 2nd respondent claimed possession on the basis of an agreement of sale from the 1st respondent. The trial Court found that the 1st respondent was the owner of the suit schedule property, being an assignee from the Government and that the property was not alienable; it decreed the suit as prayed and directed the 1st respondent to refund an advance/sale consideration of Rs. 5,500/-.

The 1st respondent appealed in A.S. No. 778 of 1978 to this Court only as regards the direction to refund the sale consideration. A learned single Judge (judgment dated 7-3-1983) held that the 1st respondent was not under obligation to refund the amount. The 2nd respondent filed LPA No. 104 of 1983, and a Division Bench (judgment dated 13-8-1987) directed refund and thereby upheld the trial Court on that point. After compliance with repayment directions, the 1st respondent filed execution proceedings (E.P. No. 4 of 1993 for delivery of possession).

The appellants (sons and wife of the 2nd respondent) filed EA. No. 58 of 1997 under Order XXI Rules 97 and 98 read with Rule 101 CPC, objecting to executability of the decree on the ground that the original assignment in favour of the 1st respondent had been cancelled by revenue authorities and the property was assigned in bits to the appellants. The executing Court rejected their objections by order dated 9-7-1997; the lower appellate Court dismissed their appeal by judgment dated 23-9-2002. The appellants pursued the present Second Appeal (A.S. No. 27 of 1997) against the lower appellate Court's judgment. At the admission stage the parties' counsel argued at length on questions of fact and law. A caveat was filed by the 1st respondent when the second appeal was filed.

Legal Issues Presented

  1. Whether objections to execution by persons who are not parties to the decree and who do not claim through a party to the suit (here, the appellants) can be adjudicated in execution proceedings under Section 47 CPC and Order XXI Rules (in particular Rules 97, 98 and 101).
  2. Whether a recorded or alleged cancellation of the assignment in favour of the decree-holder by revenue authorities (and subsequent assignments to third parties) can defeat or nullify a final civil decree for possession.
  3. Whether the executing Court should treat transfers that occurred during the pendency of the suit or thereafter (including transfers by operation of law) as effective against the decree-holder in execution proceedings, in light of sub-rule (2) of Rule 98 and Rule 102 of Order XXI CPC.
  4. Whether authorities relied upon by the appellants (including certain Supreme Court decisions) are applicable or distinguishable on facts and law from the present case.

Arguments of the Parties

Appellants' Arguments

  • The decree in favour of the 1st respondent is in personam and binding only on the parties to the suit; it does not bind the appellants (who are not party to the original suit).
  • The assignment in favour of the 1st respondent was cancelled by the concerned revenue authorities, and the suit schedule property was subsequently assigned in bits in favour of the appellants; accordingly, the basis for the decree (the 1st respondent's title) has disappeared and there is nothing to execute.
  • The appellants relied on the executing Court's power to adjudicate aspects including the rights of third parties and placed reliance on certain precedents (as argued by their counsel).
  • The appellants alleged they had invested Rs. 1.50 lakhs in development of the land, implying their equitable or proprietary interest.

1st Respondent's Arguments

  • The 2nd respondent (and through him, the appellants) invented the theory of cancellation of assignment and subsequent assignments to defeat a decree that had become final; nothing was placed before the executing Court to substantiate cancellation.
  • As long as the decree stands, subsequent alienations (even if true) do not have any bearing on execution of the decree.
  • The executing Court should not permit revenue authorities or subsequent transfers to nullify a civil decree without following proper legal procedure.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Bhanwar Lal v. Satyanarain (Supreme Court) Treatment of applications for execution under Rule 35(3) of Order XXI CPC and Rule 97(1) — particularly whether an application filed under one rule should be treated as filed for purposes of limitation when an executing Court directs re-filing under another rule. The Court found this precedent distinguishable. In Bhanwar Lal the Supreme Court held that an application for execution filed under Rule 35(3) should be treated for limitation purposes as covering an application under Rule 97(1); that case was held to have no factual or legal commonality with the present matter and therefore the reliance was rejected.
Sau. Sarastibai Trimbak Gaikwad v. Damodhar D. Motiwale (Supreme Court, reported 2002 SAR (Civ) 362) Recognition that where a specific tenancy or occupancy enactment (e.g., Bombay Tenancy and Agricultural Lands Act, 1948) confers occupancy rights and ousts Civil Court jurisdiction (see Section 85 of that Act and its overriding effect), a third party's occupancy certificate can prevail in execution proceedings. The Court held this decision inapplicable to the present facts. It emphasized that the Bombay Tenancy Act (and similar Acts such as the A.P. (Telangana Area) Tenancy and Agricultural Lands Act, 1950) placed in the IX Schedule have overriding effect; however, the present case bore no semblance to that situation, and reliance on it was of no assistance to the appellants.
Judgment of a Learned Single Judge of this Court (7-3-1983) — A.S. No. 778 of 1978 (earlier appeal by 1st respondent) Held that the 1st respondent was not under obligation to refund the advance/sale consideration (i.e., the single Judge's conclusion on refund aspect). Recounted as part of the case history; the present Court noted this single Judge decision was followed by further proceedings (LPA) and is part of the chronological rulings considered in the matter.
Division Bench of this Court (13-8-1987) — LPA No. 104 of 1983 Directed refund of the advance/sale consideration and thereby upheld the trial Court's direction on that point. Included in the procedural history. The Court observed that, after compliance with repayment directions, execution proceedings for delivery of possession were instituted; the Division Bench decision is part of the sequence of final determinations affecting the decree-holder's rights.

Court's Reasoning and Analysis

The Court's analysis proceeded by combining factual findings and statutory interpretation. The critical steps in its reasoning were:

  1. Finality of the decree: The Court observed that the decree in O.S. No. 8 of 1975 in favour of the 1st respondent had become final. The 2nd respondent had not challenged the decree at any forum in respect of its core declaration of title and recovery of possession.
  2. Absence of evidence for cancellation: The appellants failed to place any material before the executing Court to substantiate the alleged cancellation of the assignment in favour of the 1st respondent (said to have occurred on 22-7-1979) or to show when and how the 1st respondent lost possession as a consequence. The Court emphasized that nothing was shown to indicate necessary proceedings had been initiated against the 1st respondent as required by law to effect such cancellation.
  3. Scope of Section 47 CPC: The Court relied on Section 47 CPC to delineate the scope of adjudication in execution proceedings — namely, that the executing Court can decide only claims raised by the parties to the decree or those claiming through them. It held that third parties (those not parties to the decree and not claiming through a party) cannot have their rights adjudicated in execution under Section 47.
  4. Interpretation of Order XXI (Rules 97, 98, 101, and 102): The Court examined the rules relied upon by the appellants. It held that Rule 97 enables the decree-holder or purchaser in execution to remove obstructions; it does not permit third parties to file objections. Sub-rule (2) of Rule 98 and Rule 102 make clear that transfers occurring during the pendency of the suit or subsequent thereto (including transfers by operation of law) are to be ignored by the executing Court. Consequently, alleged subsequent assignments to the appellants could not be given effect against the decree-holder in execution.
  5. Inapplicability of relied precedents: The Court considered the authorities relied upon by the appellants (notably Bhanwar Lal and Sau. Sarastibai). It found Bhanwar Lal factually and legally dissimilar (it dealt with limitation and treatment of applications under different execution rules) and Sau. Sarastibai concerned statutory schemes (Bombay Tenancy Act and similar Acts) that oust civil jurisdiction and have overriding effect — circumstances not present here.
  6. Factual inference of mala fides and hollowness of appellants' claim: The Court recorded findings on the contemporaneous facts — that the 2nd respondent had repeatedly tried to retain possession despite the decree and that purported cancellation and subsequent assignments appeared to be contrived with the assistance of some revenue officials. On the record, the appellants' claim was described as hollow and unsupported.
  7. Consequential direction: Given the legal bar to adjudication of third-party transfers in execution and the absence of material proving cancellation, the Court concluded that the objections raised by the appellants could not be entertained and directed immediate execution of the decree by putting the 1st respondent in possession without resistance, with necessary assistance to the executing Court.

Holding and Implications

Holding: The Court DISMISSED the second appeal.

Direct consequences and remedial directions:

  • The executing Court is directed to forthwith put the 1st respondent in possession of the suit schedule property unhindered by any resistance and to give all necessary assistance in effecting possession.
  • The 1st respondent is entitled to costs throughout.

Broader implications: The opinion emphasizes the limited role of executing Courts under Section 47 CPC and Order XXI (particularly Rules 97, 98, 101 and 102) in relation to third-party claims: transfers pendente lite or subsequent transfers (including by operation of law) ordinarily cannot be permitted to defeat a final decree in execution proceedings. The Court did not purport to lay down any novel precedent beyond applying the existing statutory scheme and the settled principle that a civil decree of competent jurisdiction cannot be nullified by revenue action without following due process. The decision primarily affects the parties by ordering immediate execution and awarding costs.

    Akula Ramulu & Ors. v. Kammari Balaram & Anr.

    1. This Second Appeal is preferred against the judgment in A.S. No. 27 of 1997 on the file of the III Additional District and Sessions Judge (Fast Track Court) at Nizamabad. AS. No. 27 of 1997, in turn, was preferred by the appellants herein against the order in EA. No. 58 of 1997 in E.P. No. 9 of 1993 in O.S. No. 8 of 1975, on the file of the Court of the Subordinate Judge, Nizamabad. The appellants are Objection Petitioners in the execution proceedings. The trial Court as well as the lower appellate Court rejected the objections raised by the appellants.

    The relevant facts may briefly be stated as under:

    2. The 1st respondent, by name Kammari Balaram, filed O.S. No. 8 of 1975 in the Court of the Subordinate Judge, Nizamabad, against the 2nd respondent-Akula Bhumalingam, for the relief of declaration of title and recovery of possession. The 2nd respondent claimed his possession on the basis of agreement of sale in his favour from the 1st respondent. The trial Court found that the 1st respondent was the owner of the suit schedule property, being an assignee from the Government, the same was not alienable and accordingly decreed the suit as prayed for. The trial Court also directed the 1st respondent to refund the advance/ sale consideration of Rs. 5,500/- received by him.

    3. The 1st respondent preferred A.S. No. 778 of 1978 in this Court feeling aggrieved by the decree of the trial Court, in so far as it directed refund of the sale consideration. A learned single Judge, through judgment dated 7-3-1983, held that the 1st respondent was not under obligation to refund the said amount. Aggrieved thereby, the 2nd respondent filed LPA No. 104 of 1983. A Division Bench of this Court, through judgment dated 13-8-1987, directed refund of the amount and thereby upheld the decree of the trial Court. Having complied with the directions as regards repayment of the advance/ sale consideration, the 1st respondent filed E.P. No. 4 of 1993 for delivery of possession.

    4. The appellants 1 to 3 in this appeal are the sons and appellant No. 4 is the wife of the 2nd respondent. They filed EA. No. 58 of 1997 under Order XXI Rules 97 and 98 read with Rule 101 of CPC raising certain objections as to the executability of the decree. According to them, the assignment in favour of the 1st respondent was cancelled by the concerned revenue authorities and thereafter the suit schedule property was assigned in bits in favour of the appellants. The executing Court rejected the contentions through its order dated 9-7-1997. The appellants carried the matter in appeal before the lower appellate Court. The appeal was dismissed through judgment dated 23-9-2002. Hence, the present Second Appeal.

    5. By the time the 2nd appeal came to be filed, the 1st respondent filed Caveat. When the matter came up for admission, the learned Counsel for both the parties have argued the matter at length and extensively, touching upon the questions of fact and law.

    6. Sri C.R. Pratap Reddy, learned Counsel for the appellants, submits that the decree in favour of the 1st respondent was binding only on the parties thereto; and being one in personam, does not bind the appellants herein. He submits that the basis of claim and title of the 1st respondent over the suit schedule property was the assignment in his favour and once that was cancelled and the appellants were assigned the same land, the basis for the decree disappears and there do not exist anything to be executed. He submits that the powers of the executing Court are wide enough to adjudicate upon the various aspects including the one for adjudication of the rights of 3rd parties.

    7. Sri S. Ashok Anand Kumar, learned Counsel for the 1st respondent, submits that the 2nd respondent, who had lost before all the Courts, had invented the theory of cancellation of the assignment in favour of the 1st respondent and subsequent assignment in favour of his wife and sons, i.e., the appellants herein, only with a view to defeat the decree, which has become final. He submits that nothing was placed before the executing Court to substantiate the factum of cancellation of the assignment and, at any rate, as long as the decree stands, the subsequent alienations, even if true, do not have any bearing on the decree.

    8. It is not in dispute that the decree in favour of the 1st respondent in O.S. No. 8 of 1975 has become final. In fact the 2nd respondent did not challenge the same at any Forum. The 1st respondent carried the same in appeal in AS. No. 778 of 1978 only in so far as it relates to refund of the advance/sale consideration. As regards other aspects, no one had canvassed the correctness of the same.

    9. The appellants herein have put forward certain objections to the execution of the decree. Their contention was that the assignment in favour of the 1st respondent was cancelled by the concerned revenue authorities on 22-7-1979 and thereafter it was assigned in their favour in various bits. They also pleaded that they have invested an amount of Rs. 1.50 lakhs for development of the same. The trial Court passed the decree on 22-4-1978 declaring the title of the 1st respondent over the suit schedule property. As observed earlier, no one had challenged that declaration. Nothing is placed before the executing Court by the appellants herein to show that the necessary proceedings have been initiated as contemplated under law against the 1st respondent for cancellation of the assignment in his favour. It was a matter of record that the 2nd respondent was found to be in possession of the suit schedule property. He suffered a decree and was directed to restore the possession to the 1st respondent. Not a word is stated as to when and in what manner the 1st respondent lost the possession of the land as a consequence of the so-called cancellation of the assignment in favour of the 1st respondent on 22-10-1979. Even if anyone including the officials of the Government Department had sought to dispossess him, the same could not have any effect as long as the 2nd respondent was required by the decree to deliver the possession to the 1st respondent.

    10. There is another aspect, which needs to be adverted to. In AS. No. 778 of 1978, preferred by the 1st respondent as regards refund of the sale consideration, the learned single Judge of this Court, through its Judgment dated 7-3-1983, accepted his contention. The 2nd respondent carried the mater in LPA. The same was disposed of in 1987. It is not known as to whether the 2nd respondent brought the factum of cancellation of assignment in favour of the 1st respondent in 1979, to the notice of this Court, either in the First Appeal or in LPA. If he had canvassed that question before this Court, it has to be deemed to have been taken into account, but ignored. If he failed to do so, he cannot be permitted to canvass the same at a later stage. Further, the cancellation of the assignment, even if true, is not binding on the 1st respondent, once he is armed with a decree of the Court of competent civil Jurisdiction. The revenue authorities cannot be permitted to nullify the decree, that too, without even following the basic procedure.

    11. There are other reasons why the objections raised by the appellants herein cannot be taken into account. The scope of adjudication of claims in execution proceedings is delineated by section 47 of cpc. Under it, the executing Court can decide only those claims raised by the parties or claiming through them. The 3rd parties have no say in the matter. The objections raised by persons who are not parties to the decree or those who do not claim through the parties to the suit, cannot seek adjudication of their rights under Section 47. Though the appellants are sons and wife of the 2nd respondent who is defendant in the suit, they do not claim their right through him. They based their claim on the so-called assignment in their favour. The same is the purport of Rule 101 of Order XXI of CPC also.

    12. The application filed by the appellants was the one under Rules 97, 98 read with Rule 101 of Order XXI of CPC. Rule 97 enables only the decree holder for the possession of an immovable property or the purchaser of any such property sold in execution of decree to remove obstructions for any persons. The same does not enable the 3rd parties to make application to raise an objection. The nature of obstructions would no doubt be taken into account by the trial Court in the execution proceedings. The executing Court is required to pass an order under Rule 98 either allowing or dismissing the application for removal of obstructions. Sub-rule 2 of Rule 98 and Rule 102 stipulate as to how the claims of 3rd parties on the basis of pendente life or subsequent alienations are to be dealt with. Rules 98 and 102 of Order XXI read as under:

    "Rule 98 : Orders after adjudication :--(1) Upon the determination of the questions referred to in Rule 101, the Court shall, in accordance with such determination and subject to the provisions of sub-rule (2),--

    (a) make an order allowing the application and directing that the applicant be put into the possession of the property or dismissing the application; or

    (b) pass such other order as, in the circumstances of the case, it may deem fit.

    (2) Where upon such determination, the Court is satisfied that the resistance or obstruction was occasioned without any just cause by the judgment-debtor or by some other person at his instigation or on his behalf, or by any transferee, where such transfer was made during the pendency of the suit or execution proceeding, it shall direct that the applicant be put into possession of the property, and where the applicant is still resisted or obstructed in obtaining possession, the Court may also, at the instance of the applicant, order the judgment-debtor, or any person acting at his instigation or on his behalf, to be detained in the civil person for a term which may extend to thirty days.

    Rule 102: Rules not applicable to transferee pendente life :--Nothing in Rules 98 and 100 shall apply to resistance or obstruction in execution of a decree for the possession of immovable property by a person to whom the judgment-debtor has transferred the property after the institution of the suit in which the decree was passed or to the dispossession of any such person.

    Explanation :--In this rule, "transfer" includes a transfer by operation of law."

    From a reading of these provisions, it is evident that any transfers that take place during the pendency of the suit or subsequent thereto are to be ignored outright by the executing Court. The explanation to Rule 102 goes to the extent of requiring the executing Court to ignore even those transfers, which take place by operation of law. The so-called assignment in favour of the appellants herein, even if taken to be true and legal, cannot be placed on a higher pedestal than a transfer by operation of law. Having regard to the provisions of sub-rule (2) of Rule 98 and Rule 102 of Order XXI of CPC, the claim of the appellants did not merit any consideration.

    13. Sri C.R. Pratap Reddy, learned Counsel for the appellants, has placed reliance upon the judgment of the Supreme Court in Bhanwar Lal v. Satyanarain, . In that case, the decree holder made an application under Rule 35(3) of Order XXI CPC as regards execution of the decree. The same was returned with a direction to file an application under Rule 97(1) of Order XXI. When such application was filed, the same was dismissed on the ground of limitation. The view taken by the executing Court was upheld by the High Court. The Hon'ble Supreme Court reversed the order of the High Court and held that once an application was filed by the decree holder for execution, may be under Rule 35(3) of Order XXI, it should have been treated as having been filed within the limitation and insistence of filing of application under Rule 97(1) and rejection of the same, when filed, on the ground of limitation, was illegal. Neither on facts nor in law, that case had anything in common with the one on hand.

    14. The learned Counsel has also placed reliance upon the judgment of the Supreme Court in Sau. Sarastibai Trimbak Gaikwad v. Damodhar D. Motiwale, 2002 Supreme Appeals Reporter (Civil) 362. That case arose out of a situation where the decree holder initiated execution proceedings and a 3rd party, who was granted Occupancy Rights under the Bombay Tenancy and Agricultural Lands Act 1948, resisted the same. Taking into account Section 85 of the Act, which ousted the jurisdiction of the Civil Courts and also the overriding effect given to the provisions of the said Act, the objection on the basis of Occupancy Certificate issued therein, was sustained. It should not be forgotten that the Bombay Tenancy and Agricultural Lands Act, 1948 and similar enactments, such as, the A.P. (Telangana Area) Tenancy and Agricultural Lands Act, 1950 were placed in IX Schedule of the Constitution of India and have overriding effect on all other proceedings, so much so, the proceedings in Civil Court were barred. There is not even a semblance of similarity between the facts of that case and the present one. The other decisions relied upon by the learned Counsel for the appellants are equally of no help to the appellants.

    15. In addition to the legal aspects referred to above, the facts of the present case reveal as to how the 2nd respondent had defeated the rights of the 1st respondent under a decree, which became final, almost 2 decades ago as regards title and about 1 1/2 decades ago as regards refund of sale consideration. He tried all his tricks to perpetuate his possession, despite the decree having become final. When he sensed that his efforts are no longer going to be fruitful, he managed with some of the revenue officials and attempted to bring about the so-called cancellation as well as the assignment proceedings. The hollowness of the claim of the appellants is evident on the face of record. The 1st respondent was assigned the land as a landless poor. The same is said to have been cancelled and assignments are said to have been made in favour of the appellants. Even on their own showing, they have invested about Rs. 1.50 lakhs in bringing the land to cultivation. If that is their financial status, the genuiness of their claims for assignment can easily be imagined.

    16. This case presents an example as to how the judicial system is brought to disrepute by unscrupulous elements, like the 2nd respondent and his family members, the appellants herein. It is always open to any one to work out his legal remedy. However, if the whole effort is to circumvent the system and to reduce the proceedings before a Court to a farce, that too, by taking recourse to dubious methods, the system as such is prone to be branded as ineffective. The 2nd appeal does not merit any consideration either on facts or in law and is liable to be dismissed.

    17. The decree for recovery of possession was granted in 1975. The EP was filed in 1993. Respondent No. 2 and the appellants have dragged the matter successfully. The matter need not to be delayed any further. The executive Court is directed to forthwith put the 1st respondent in possession of the suit schedule property unhindered by any resistance by giving all necessary assistance.

    18. The second appeal is accordingly dismissed. The 1st respondent shall be entitled for costs through out.

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    Comments

    Akula Ramulu & Ors. v. Kammari Balaram & Anr.
    (Mar 10, 2003)