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Pothuri Thulasidas v. Potru Nageswara Rao .
Comprehensive Summary of the Provided Legal Opinion
Factual and Procedural Background
The appellant is the owner of a sawmill on his land at Chilakaluripeta, which was leased to the respondent in 1983. Disputes arose and the appellant terminated the lease by notice. When possession could not be recovered, the appellant filed O.S. No. 104 of 1990 in the Court of the Junior Civil Judge, Chilakaluripeta, originally seeking prohibitory relief (to restrain removal of sawmill machinery, equipment, tools and the zinc-sheet shed and from running the sawmill) and later amending the suit to seek a mandatory injunction to restore the schedule property and recovery of possession. The suit was decreed on 25.10.1999.
The respondent appealed (A.S. No. 67/1999) — dismissed on 30.11.2000 — and the second appeal (Second Appeal No. 54 of 2001) and Special Leave Petition to the Supreme Court were dismissed, the latter on 13.12.2001. After the decree became final, the appellant filed E.P. No. 94 of 2001 to execute the decree.
The respondent filed E.A. No. 494 of 2001 under Order XXI, Rule 97 C.P.C., seeking an inquiry into alleged obstruction with regard to existing superstructures. The respondent's application was premised on a claimed fire on 28.3.1998 that gutted the original shed and machinery and on the allegation that the respondent had restored shed and machinery that were different from those leased; hence, the decree in its present form could not be executed. The Trial Court rejected E.A. No. 494 of 2001 (order dated 22.1.2002), but the Appellate Court allowed the respondent's appeal on 17.6.2002 in A.S. No. 9 of 2002. The appellant filed this C.M.S.A. challenging that appellate judgment and decree.
Legal Issues Presented
- Whether it is competent and maintainable for a judgment-debtor to file and maintain an application under Rule 97 of Order XXI, C.P.C.
- Whether the lower Appellate Court was justified in travelling beyond the scope of the decree (i.e., undertaking fresh adjudication and invoking Section 108 of the Transfer of Property Act) in the execution-related proceedings.
Arguments of the Parties
Appellant's Arguments
- The respondent's application under Order XXI, Rule 97 C.P.C. was not maintainable and was an attempt to defeat a decree which had become final after dismissal of the S.L.P.
- If the respondent believed the relief in the suit could not be granted because of the 28.3.1998 fire, he should have raised that before the trial court or on appeal; it was impermissible to raise it during execution proceedings.
- Rule 97 of Order XXI provides for removal of obstruction — such applications are to be filed by decree-holders (complaining of third-party obstructions); a judgment-debtor cannot be permitted to create an obstruction and then invoke the same provision to resist execution.
- The findings of the lower Appellate Court effectively nullified the final decree and enabled the judgment-debtor to resist execution.
Respondent's Arguments
- The respondent filed E.A. No. 494/2001 because the decree mandates delivery of particular items (specific superstructures and machinery) which allegedly ceased to exist due to the fire, and therefore the decree could not be executed in its present form.
- The respondent pointed to a subsequent development: the dismissal of O.S. No. 75 of 1998 (filed by the appellant) and a decree in the respondent's favour on a counterclaim (allegedly), which, the respondent contends, gives him new rights impacting execution.
- There is nothing in Rule 97 of Order XXI C.P.C. that prohibits a judgment-debtor from bringing to the executing court's notice events that impede execution; making such an application does not amount to seeking a fresh adjudication of the original dispute.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Bhanwarlal v. Satyanarain and Anr. | Interpreting the words "any person" in Rule 97 of Order XXI to include a judgment-debtor. | The Court noted this authority as part of a line of decisions recognizing that "any person" can include a judgment-debtor, but distinguished the proposition to hold that those decisions did not go so far as to permit a judgment-debtor to file a Rule 97 application to annul a final decree in execution proceedings. |
| Srinath and Anr. v. Rajesh and Ors. | Same interpretive principle: "any person" in Rule 97 includes judgment-debtor. | The Court recorded this precedent as supporting the interpretive point but observed that these cases do not authorize a judgment-debtor to invoke Rule 97 to reopen adjudication on the merits of a final decree; the Court therefore rejected allowing E.A. No. 494 on that basis. |
| Silverline Forum Private Ltd. v. Rajiv Trust and Anr. | Same interpretive principle regarding "any person" under Rule 97. | The Court treated this decision similarly — as part of the line of cases on interpretation — but held that none of these precedents permit a judgment-debtor to file a Rule 97 application to defeat or annul a final decree in execution proceedings. |
| N.S.S. Narayana Sharma v. Gold Stone Exports | Reiterated that "any person" in Rule 97 can include a judgment-debtor; also held that a person not party to the decree can file under Rule 99 even on apprehension of dispossession (and that such applications are to be dealt with under parameters of Rule 97). | The Court acknowledged this decision but emphasized that the Supreme Court did not hold it permissible for a judgment-debtor to file under Rule 97 to reopen matters already finally adjudicated between decree-holder and judgment-debtor; the present Court thus concluded E.A. No. 494 was not maintainable as a device to relitigate final issues. |
Court's Reasoning and Analysis
The Court examined execution procedure under Order XXI of the Civil Procedure Code and identified the relevant rules and their purposes:
- Order XXI, Rule 35: procedure for delivery of immovable property; Sub-rule (3) deals with obstruction caused by the judgment-debtor.
- Order XXI, Rule 97: provides for removal of obstruction, generally conceived to be complaints by the decree-holder relating to obstructions by third parties; earlier Supreme Court decisions had interpreted "any person" in Rule 97 to include a judgment-debtor.
- Order XXI, Rules 99 and 101: Rule 99 permits a person evicted in execution to seek restoration (and such applications are to be treated akin to independent suits under Rule 101), and N.S.S. Narayana Sharma permits such actions even on apprehension of dispossession.
Despite these interpretations, the Court reasoned that permitting a judgment-debtor to file and maintain an application under Rule 97 would subvert the finality of adjudication: a judgment-debtor could thereby seek to annul or frustrate a decree that had already been finally adjudicated through trial, appeals, second appeals and S.L.P. That would open fresh fronts for litigation and effectively permit relitigation of matters already decided. The Court emphasized that the rights of the decree-holder and the judgment-debtor had already been adjudicated; execution proceedings are procedural and limited in scope and the executing Court cannot go beyond the decree.
The Court further analyzed the conduct of the lower courts in the case:
- The Trial Court treated the respondent's E.A. as if filed by the decree-holder and rejected it on merits.
- The Appellate Court allowed the appeal, travelled beyond the scope of the decree, drew fresh inferences (for example, concluding the respondent did not construct a shed after the fire and that the petitioner did), and invoked Section 108 of the Transfer of Property Act (specifically Section 108(h)) to permit removal of superstructures and machinery or to delay delivery — thereby frustrating the decree.
- The present Court found that the Appellate Court acted as if adjudicating the suit afresh, ignored finality of the earlier adjudication, and improperly invoked Section 108 to vary or nullify the effect of the decree; such action was impermissible in execution proceedings and amounted to allowing the judgment-debtor to open a fresh round of litigation.
- The Court also reviewed O.S. No. 75 of 1998 (which the respondent relied on) and found the suit had been dismissed for default; no decree in the respondent's favour on the counterclaim properly existed. The Trial Court in O.S. No. 75/1998 had drafted a decree inconsistent with the judgment (contrary to Rule 6 and 6(a) of Order XX C.P.C.), and that decree was invalid and without legal force.
On these bases the Court concluded that E.A. No. 494 of 2001 was not maintainable in law when filed by the judgment-debtor as a device to relitigate matters already finally adjudicated, and that the Appellate Court's judgment and decree in A.S. No. 9 of 2002 had no legal or factual basis.
Holding and Implications
Holding:
The C.M.S.A. is allowed; the judgment and decree in A.S. No. 9 of 2002 are set aside, and the dismissal of E.A. No. 494 of 2001 by the executing Court is upheld.
Consequences and implications:
- Direct effect on the parties: The appellate court's order permitting the respondent's E.A. (A.S. No. 9 of 2002) is quashed; the execution dismissal stands and the appellant is entitled to proceed with execution of the final decree (E.P. No. 94 of 2001) without being impeded by the respondent's Rule 97 application.
- The Court directed that the executing Court be put on notice to proceed with execution of the decree which became final at the Supreme Court level without any further delay and to report compliance to this Court.
- The C.M.S.A. was allowed with costs throughout.
- Broader implications: The Court emphasized the limits of execution proceedings and reinforced the principle that execution cannot be used as a forum to reopen final adjudications between decree-holder and judgment-debtor. The opinion does not purport to create a new general precedent beyond applying these settled principles to the facts of this case; the immediate legal consequence is restoration of executability of the final decree in favour of the appellant.
Note: This summary is based exclusively on the content of the provided opinion text and does not add facts or authorities that were not contained therein.
1. This C.M.S.A., is filed against the judgment and Decree, dated 17.6.2002, passed by the Court of the Principal Senior Civil Judge, Narsaraopet, in A.S. No. 9 of 2002. The subject-matter of A.S. No. 9 of 2002 is an order passed in E.A. No. 494 of 2001 by the Court of Junior Civil Judge, Chilakaluripeta.
2. The facts that gave rise to filing of the C.M.S.A., are as under:
The appellant is the owner of a sawmill installed in his land at Chilakaluripeta. The same was leased to the respondent in the year 1983. Thereafter, disputes arose between the appellant and the respondent. The appellant got issued notices terminating the lease. When he could not recover the possession, he filed O.S. No. 104 of 1990, in the Court of Junior Civil Judge, Chilakaluripeta, initially, for the relief of restraining the respondent, by way of a permanent injunction, from removing the machinery of saw-mill, its equipment, tools, the zinc sheets shed, or from replacing them with any other sheets, and for restraining the respondent from running the saw-mill. Subsequently, he got the relief amended, to include a mandatory, injunction to restore the suit schedule property to its original position and for recovery of possession of the same.
3. After contest by the parties, the suit was decreed on 25.10.1999. Aggrieved thereby, the respondent filed A.S. No. 67 of 1999, in the Court of the Principal Senior Civil Judge, Narsaraopet. The appeal was dismissed on 30.11.2000. Second Appeal No. 54 of 2001 filed in this Court was also dismissed on 16.11.2001. Finally, he filed S.L.P., before the Supreme Court, and it was also dismissed on 13.12.2001.
4. The appellant filed E.P. No. 94 of 2001, for execution of the decree. The respondent filed E.A. No. 494 of 2001, under Order 21, Rule 97 C.P.C., with a prayer to enquire into the matter of obstruction, with regard to the existing super structures. The basis for the application is that a fire accident took place on 28.3.1998, wherein the entire shed and machinery were gutted, and that the respondent got the shed and machinery restored. He pleaded that since the shed and machinery are different from those that were leased, the decree in its present form cannot be executed.
5. The Trial Court rejected E.A., through its order, dated 22.1.2002. The respondent filed A.S. No. 9 of 2002, in the Court of the Principal Senior Civil Judge, Narsaraopet, and it was allowed on 17.6.2002. Hence this C.M.S.A.
6. Sri O. Manohar Reddy, learned Counsel for the appellant submits that the application filed by the respondent under Order XXI, Rule 97 C.P.C. was not maintainable, and his effort was only to defeat the decree, which became final after the dismissal of the S.L.P. He submits that, if at all the respondent was of the view that the prayer in the suit cannot be granted, on account of the fire accident said to have taken place on 28.3.1998, he ought to have brought the same to the notice of the trial Court, or at any rate, the Appellate Court, and it is not open to him to raise the ground, at this stage. As to the maintainability of the application, learned Counsel submits that Rule 97 of Order XXI provides for removal of obstruction, and obviously such applications are to be filed by the decree-holders and under no circumstances, a judgment-debtor can be permitted to create an obstruction, by filing an application under that very provision. He submits that the findings recorded by the lower Appellate Court have the effect of setting at naught, the decree, which became final, with the pronouncement made by this Court and the Supreme Court, and thereby enabled the judgment debtor to resist the execution.
7. Sri V.L.N.G.K. Murthy, learned Counsel for the respondent, on the other hand, submits that the necessity and occasion for the respondent to file E.A. No. 494 of 2001 arose, because of the fact that the decree mandates the delivery of a particular item of the property, where as the same ceased to be in existence on account of fire accident. He also refers to a subsequent development namely, the dismissal of O.S. No. 75 of 1998, filed by the appellant himself for the same relief as in O.S. No. 104 of 1990, and the decree for counter claim passed therein. Learned Counsel also submits that there is nothing in Rule 97 of Order XXI C.P.C., which prohibits the judgment debtor to bring to the notice of the executing Court, any events, which come in the way of the execution of the decree and that the application so made cannot be treated as inviting fresh adjudication on the matter.
8. It is not in dispute that the respondent is the lessee of the appellant. The appellant filed O.S. No. 104 of 1990, initially, for a relief, which is prohibitory in nature. Thereafter, through an amendment, he sought the relief of mandatory injunction as to restoration of the suit schedule property, comprising of a shed and machinery therein, and for eviction of the respondent from it. The suit was decreed. The appellant was successful through out the hierarchy of the Courts, viz., the Trial Court, Appellate Court, this Court and the Supreme Court. After the decree became final, he filed E.P. No. 94 of 2001. The cantankerousness of the respondent did not stop with the dismissal of the S.L.P. He invented a new ground, in the execution proceedings. He resorted to a novel method of filing an application under Rule 97 of Order XXI C.P.C., thereby indicating that he proposes to create an obstruction and it is for the executing Court to decide as to how far his obstruction is permissible. The Trial Court took the view that the application can be treated as the one filed by the decree-holder himself, but rejected the same, on merits. The lower Appellate Court, however, has chosen to allow the appeal and uphold the obstruction pleaded by the respondent. Two important aspects fall for consideration in this C.M.S.A., namely:--
(a) whether it is competent for a judgment-debtor to file and maintain an application under Rule 97 of Order XXI, and
(b) whether the lower Appellate Court was justified in travelling beyond the scope of the decree.
9. Once a decree becomes final, the decree-holder gets a right to seek execution of the same. Depending on the nature of the decree, Order XXI provides for the corresponding procedure, for executing the decree. If the decree relates to delivery of the immovable property, the procedure is prescribed under Rule 35 of Order XXI C.P.C. If any obstruction is caused by the judgment-debtor, the same is taken care of, under Sub-rule (3) thereof. Where, however, the obstruction is by third parties. Rule 97 provides for removal of such obstruction. Basically, it is for the decree-holder to complain to the executing Court about existence of any obstruction from third parties.
10. In Bhanwarlal v. Satyanarain and Anr., , Srinath and Anr. v. Rajesh and Ors., and Silverline Forum Private Ltd. v. Rajiv Trust and Anr., , the Supreme Court held that the word "any person" occurring in Rule 97, would take in its fold the judgment debtor also. This view was reiterated by the Hon'ble Supreme Court in N.S.S. Narayana Sharma v. Gold Stone Exports, . Therefore, the obstruction that may have been created by the judgment-debtor, can be dealt with not only under Rule 35(3), but also under Rule 97 of Order XXI.
11. Where a person, other than a judgment-debtor, is evicted from a property in the course of execution, he can file an application under Rule 99 of Order XXI for restoration of the possession. Such application is required to be dealt with almost as an independent suit. In N.S.S. Narayana Sharma's case (supra), the Supreme Court took the view that a person, who is not a party to the decree, does not have to wait till he is dispossessed, for filing an application under Rule 99, and that it shall be competent for him to come forward with such an application, even on the apprehension of such dispossession. Such applications are required to be dealt with, under the parameters of Rule 97. In none of the judgments, referred to above, the Supreme held that it is permissible for a judgment-debtor to file an application under Rule 97. If permitted, such a course of action would result in annulment of the adjudication that culminated in the decree and would open new fronts for second round of litigation on the same dispute. This becomes apparent for the reason that an application filed under Rules 97 or 99 is required to be dealt with almost as an independent suit, under Rule 101 of Order XXI. It needs to be noted that the question of treating such applications on par with suits would arise, if only they involve the adjudication between the decree-holder, on the one hand, and the third parties, on the other. The reason is that the rights of the decree-holder, on the one hand, and the judgment-debtor, on the other, have already received adjudication in the hands of the Court and culminated in the decree.
12. This being the purport of various provisions of Order XXI, the Courts below have taken the view that an application filed by a judgment-debtor under Rule 97 can be treated as the one filed by decree-holder himself. Such a view runs counter to the execution procedure under C.P.C., and is contrary to law. Hence it is held that E.A. No. 494 of 2001 was not maintainable in law.
13. Coming to the second aspect, it has already been pointed out that the respondent suffered a decree and his contentions were negatived throughout the hierarchy of the Courts in the country. Once the decree has become final, it is not open to him to plead new facts. Even if it is true that the ground pleaded by him in the E.A. constitutes a formidable defence, it is not open to him to plead in the Execution proceedings. If for any reason, the application under Order XXI is to be treated as independent proceedings, the plea is barred by constructive res judicata. It is settled principle of law that the executing Court cannot go beyond the scope of the decree. Further, the respondent does not propose to plead a fact, which has surfaced or taken place after the decree became final. The incident pleaded by him relates to a time when the suit was pending. Not a whisper was made in his written statement nor was it canvassed in the appeal, second appeal or S.L.P. He cannot be permitted to open a fresh round of litigation. The executing Court had taken the correct view that it is impermissible for the judgment-debtor to plead any fact contrary to the decree. However, the lower Appellate Court did not feel itself restricted by the findings recorded by the Trial Court, which became final with the dismissal of S.L.P. It proceeded as though it is undertaking adjudication afresh.
14. When the decree was so specific as to the liability of the respondent to be evicted, and his obligation to restore the suit property to its original position, the lower Appellate Court had chosen to invoke the provisions of Section 108 of Transfer of Property Act, 1882 (for short 'the Act'). It has ignored its limitations and failed to honoured the finality attached to the decree under execution. It is on account of such indiscriminate misadventures, that persons like respondent derive courage in stalling the execution of the decrees. Thereby, the very effectiveness of the system is diluted. But for the perverse view taken by the Appellate Court, the respondent would not have been in a position to thwart the execution or to deny the appellant, of the benefit of a decree, which assumed finality at the Supreme Court.
15. The Appellate Court freely discussed various incidents pleaded by the respondent as though it is adjudicating the suit afresh. For example, this is what it observed as to the right of the respondent to remove the existing shed; by drawing its own inferences.
"The respondent is not contending that, after the fire accident he constructed the shed and installed the machinery. By the date of fire accident there was bitter enmity, so the respondent would not construct the shed or install machinery on the other hand he was seeking the eviction of the petitioner from the petition schedule property. So we can conclude that the petitioner constructed the shed and installed machinery."
16. After invoking Section 108 of the Act, the learned Judge observed as under:--
"The super structures and machinery that were in the suit schedule land were admittedly damaged in fire accident on 28.3.1998 and on insurance claim for that damages a suit is filed against the Insurance Company, and the petitioner in O.S. No. 13/ 2000 on the file of Prl. Senior Civil Judge, Narasaraopet and the same is pending before this Court and on that point we need not give any finding in this appeal. So in view of Section 108(h) of T.P. Act the petitioner is entitled to remove the super structures and machinery and he has to be permitted to remove the superstructures and machinery by giving reasonable time and if he fails to remove them within the reasonable time the property can be delivered including the super structures to the respondent. So the lower Court has to be given suitable directions".
With this, the learned Judge has frustrated the entire decree, and rendered it inexecutable.
17. Learned Counsel for the respondent submits that the appellant filed O.S. No. 75 of 1998, almost for the same relief as in O.S. No. 104 of 1990, in the same Court. He contends that apart from filing written statement, the respondent filed a counter claim, and that the suit was dismissed and the counter claim was decreed. He contends that, on the strength of the same, the respondent has acquired new rights and the decree in O.S. No. 104/90 became incapable of being executed.
18. The learned Counsel has placed before this Court the. certified copy of the decree and judgment in O.S. No. 75/1998. The relief claimed in this suit overlaps the one in O.S. No. 104 of 1990. Obviously because O.S. No. 104/90 was decreed and it became final throughout, the appellant did not pursue O.S. No. 75/98. The suit was dismissed for default on 23.4.2002. The relevant portion of the judgment reads as under:
"Plaintiff called absent. Costs not paid. No representation. Therefore, suit is dismissed for default."
19. However, the Trial Court has drafted a decree as though the counter claim of the respondent herein was decreed. On the face of it, the said decree is illegal and without any legal force. Rule 6 and 6(a) of Order XX C.P.C. mandate that the decree shall be in conformity with the judgment. Conversely any decree, which does not conform to the judgment, is nullity. Mere dismissal of a suit, by itself does not entail in the counter claim being allowed or decreed. There has to be specific finding and grant of relief separately as regards counter claim. So is the case with cross-objections in an appeal. When the Trial Court in O.S. No. 75/1998 did not grant any relief on the counter claim, there was no occasion or basis for drawing a decree in respect of counter claim. This Court has already taken note of the matter on administrative side for initiating action against the persons responsible for such a blatant illegality.
20. Hence, the judgment and decree in A.S. No. 9 of 2002, do not have any legal or factual basis and the same are accordingly set aside. Consequently dismissal of E.A. No. 494 of 2001 by the executing Court is upheld.
21. Having regard to the various developments that have taken place, which are, in fact, serious in nature, this Court is of the view that the executing Court be put on clear notice that it shall proceed with the execution of the decree which became final at the Supreme Court level, without any further delay, and report compliance of the same to this Court.
22. The CMSA is accordingly allowed with costs throughout.
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