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  • provisions in ss. 40 and 52 of the Transfer of Property Act
  • s. 52 of the Transfer of Property Act
  • s. 41 of the Evidence Act.
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Citation Codes
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citation codes
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  • provisions in ss. 40 and 52 of the Transfer of Property Act
  • s. 52 of the Transfer of Property Act
  • s. 41 of the Evidence Act.
Smart Summary

Structured Summary of the Opinion — K.K. Desai, J.

Factual and Procedural Background

The opinion arises from a second appeal against the Assistant Judge, Poona's appellate order dated November 13, 1964 (Civil Appeal No. 62 of 1964), which confirmed a trial court order granting reliefs claimed by the respondents in Darkhast Application No. 1057 of 1963 and dismissed the appellants' appeal with costs.

Key factual background in the opinion (as stated in the text):

  • In 1932 S.M. Gujarathi owned immovable property No. 356 at Vallabhbhai Patel Road, Poona; J.J. Cohen owned adjoining property No. 357.
  • Disputes arose concerning easements of light and air through windows. S.M. Gujarathi filed Suit No. 116 of 1932 for injunctions and enforcement of easement rights.
  • The suit was carried to this Court in Second Appeal No. 198 of 1935 and, by consent and compromise, a decree was passed on September 9, 1938, declaring mutual easement rights and providing, among other things, a right for S.M. Gujarathi to reconstruct a building according to an annexed sketch.
  • Clause 6 of that consent decree included the provision that the expressions “the plaintiff and the defendant herein” shall include "their heirs, legal representatives, executors, administrators and assigns" and, for injunction matters, "their servants and the members of the family."
  • In 1963 the respondents (heirs and legal representatives of J.J. Cohen) filed Darkhast Application No. 1057 of 1963 against the appellants, who were transferees/purchasers of property No. 356 from S.M. Gujarathi, seeking to enforce the restrictive covenants in the 1938 consent decree by injunction and otherwise.
  • The two courts below (trial court and the Assistant Judge) rejected the appellants' contention that the decree could not be executed against purchasers who were not parties to the original suit and granted the reliefs claimed; this appeal followed.

Legal Issues Presented

  1. Whether a consent decree granting an injunction and containing covenants said to "run with the land" is executable in execution proceedings against transferees/purchasers of the judgment-debtor who were not parties to the original suit.
  2. Whether the phrase "representatives" in Section 47 of the Code of Civil Procedure (and related provisions) includes purchasers/assignees so as to permit execution of a decree against such transferees.
  3. Whether inclusion of "assigns" or similar language in a consent decree (for example clause 6 of the 1938 decree) can, by itself, render the decree directly executable against purchasers/transferees of the judgment-debtor.
  4. Whether an execution application may, at the stage of this appeal (after full consideration by two courts below and this Court), be converted into a separate suit under the provisions relied upon (notably sub‑section (2) of Section 47 as argued by the applicants).

Arguments of the Parties

Appellants' Arguments

  • The appellants contended that there is no provision in the Code of Civil Procedure or elsewhere in law that entitles the decree-holders to execute the consent decree against the appellants as purchasers from S.M. Gujarathi because the appellants were never parties to the suit in which the decree was passed.
  • They argued that even if the decree were taken to create covenants running with the land, execution against purchasers who were strangers to the original suit is impermissible under the Code; reliance was placed on Sections 47 and 50 and the scheme of Order XXI of the Code.
  • It was submitted that Section 50 allows execution against legal representatives of a deceased judgment-debtor to the extent property has come into their hands, and that the term “representative” in Section 47 should be confined to legal representatives as defined in Section 2(11) of the Code — persons representing the estate of a deceased person — and should not include third-party purchasers or intermeddlers.

Applicants' / Respondents' Arguments

  • The applicants (heirs and legal representatives of J.J. Cohen) argued that the phrase “representatives” in Section 47 should be understood to include successors in interest, including purchasers and assigns of parties to the suit.
  • They relied upon clause 6 of the 1938 consent decree, which expressly stated that “the plaintiff and the defendant herein” include heirs, legal representatives, executors, administrators and assigns, contending this rendered the appellants (purchasers from S.M. Gujarathi) representatives within the meaning of Section 47 and therefore subject to execution of the decree against them.
  • The applicants relied upon the two courts below which had accepted such reasoning and permitted the execution application to proceed against the appellants.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Vithal v. Sakharam, 1899 1 Bom. L.R 854 Held that an injunction granted by decree was directed against the parties mentioned in the decree and/or particular persons and would not run with the land; therefore it was not executable against a transferee-purchaser of the judgment-debtor. The Court cited this authority to support the principle that injunctions are personal remedies and do not bind third-party purchasers who were not parties to the original suit.
Dahyabhai v. Bapalal, 1901 I.L.R 26 Bom. 140; S.C 3 Bom. L.R 564 Affirmed the principle that injunction decrees do not run with the land and are not executable against transferee-purchasers who are strangers to the suit. Used alongside other precedents to show established law that injunctions are personal and cannot be executed against purchasers absent statutory authority.
Jamsetji Manekji v. Hari Dayal, 1907 I.L.R 32 Bom. 181; S.C 10 Bom. L.R 18 Reached a similar conclusion that injunction decrees do not bind third-party purchasers. Relied upon to reinforce the settled position that third parties cannot be bound by such decrees in execution proceedings.
Amritlal v. Kantilal, 1930 33 Bom. L.R 266; S.C [1931] A.I.R Bom. 280 Considered the same question whether injunction decrees/similar remedies bind purchasers or third parties. Cited as one of the authorities establishing the settled rule that injunctive decrees are personal and do not directly bind purchasers absent statutory provisions.
Ganesh v. Narayn, 1931 33 Bom. L.R 1144; S.C [1931] A.I.R Bom. 484 Also treated the question of the personal nature of injunctive relief and its non-application to third-party purchasers. Referenced by the Court to demonstrate a consistent line of authority contrary to executing such decrees against purchasers.

Court's Reasoning and Analysis

The Court's analysis proceeded in the following steps, strictly following the content of the opinion:

  1. The Court observed that the question before it had been settled by a number of earlier authorities (those catalogued above) which held that injunctions are personal remedies directed against the parties named in the decree and do not run with the land; consequently such injunction decrees are not executable against transferee-purchasers who were not parties to the suit.
  2. The Assistant Judge had relied on clause 6 of the 1938 consent decree (which used the expression "assigns" within the definition of "the plaintiff and the defendant herein") as the sole ground for holding the decree executable against purchasers. The Assistant Judge considered provisions of ss. 40 and 52 of the Transfer of Property Act in the judgment and noted that the appellants purchased after the consent decree but before the execution proceedings.
  3. The Court found that the Assistant Judge's conclusion — that because the decree included "assigns" the restrictive covenants were enforceable in execution against the appellants — failed to apply the established ratio of the cited authorities. The Court emphasized the settled principle that, except where judgments in rem are passed or specific statutory provisions apply, third parties and strangers are not bound by judgments and decrees passed in particular suits (and it referred to s. 41 of the Evidence Act as directly providing this principle).
  4. The Court acknowledged limited statutory exceptions: for example, under Section 52 of the Transfer of Property Act purchasers pendente lite can be bound, and the Code of Civil Procedure contains provisions relating to effect of attachments where transferees of attached properties may be bound. These are exceptional circumstances in which the phrase "representative" in Section 47 has been held applicable.
  5. However, the Court held that it is not permissible to transform the clause language of a consent decree (such as including the word "assigns") into a source of new law that would permit execution against third-party purchasers; the law of execution must be found in the Code of Civil Procedure and related statutes. There is no provision in the Code empowering execution of decrees as such against purchasers of properties merely because a decree contains covenants that are said to run with the land.
  6. The Court rejected the applicants' alternative contention to convert the execution application into a suit under Section 47(2), observing that while ordinarily a trial court executing a decree may permit conversion, in this instance the matter had been fully tried in two courts below and argued in this Court, and thus conversion would not be permitted at this late stage.
  7. Accordingly, the Court set aside the orders of the two courts below that had permitted Darkhast Application No. 1057 of 1963 to proceed in execution and dismissed that application, with costs payable by the applicants/respondents.

Holding and Implications

Holding: The Court set aside the orders passed by the two courts below and DISMISSED Darkhast Application No. 1057 of 1963. The applicants-respondents were ordered to pay costs throughout.

Implications (direct consequences as stated in the opinion):

  • The immediate, direct effect is that the respondents' attempt to execute the 1938 consent decree's restrictive covenants against the appellants (purchasers/transferees who were not parties to the original suit) has failed; execution cannot proceed against these purchasers on the basis relied upon.
  • The Court affirmed the settled legal position—based on the cited authorities and statutory provisions—that injunctive decrees are personal remedies and do not automatically bind third-party purchasers unless a clear statutory exception applies (for example, purchasers pendente lite under s. 52 Transfer of Property Act or transferees affected by attachment provisions under the Code).
  • The opinion stresses that parties to a consent decree cannot, by using language such as "assigns," enact a new law of execution to make decrees directly executable against third-party purchasers; execution law must be found in the Code of Civil Procedure.
  • No change to existing law was made by this decision; the Court applied existing authorities and statutory interpretation rather than creating new precedent beyond reaffirming established principles.

    Abdul Kardar Haji Hiroli v. Mrs. Judah Jacob Cohen

    K.K Desai, J.:— This second appeal arises out of the appellate order dated November 13, 1964, passed by the Assistant Judge, Poona, in Civil Appeal No. 62 of 1964, whereby the learned Judge confirmed the trial Court's order granting the reliefs claimed by the respondents in Darkhast Application No. 1057 of 1963 and dismissed the appellants' appeal with costs.

    2. The short facts which need to be noticed are as follows: In 1932 one S.M Gujarathi was the owner of immovable property bearing No. 356 situated at Vallabhbhai Patel Road, Poona. One J.J Cohen was the owner of the immovable property bearing No. 357 situated on the southern side of the property of S.M Gujarathi. There were disputes between these two owners in connection with easements of light and air through the windows in their adjacent buildings. S.M Gujarathi then filed Suit No. 116 of 1932 for certain injunctions and for enforcing rights of easements. That suit was ultimately carried to this Court in Second Appeal No. 198 of 1935. At the ultimate hearing in that second appeal on September 9, 1938, by consent and compromise between the parties, a decree was passed. The decree declares mutual rights of these two adjacent owners in connection with their easements of light and air through the windows in their buildings. It also declares right in favour of S.M Gujarathi to reconstruct a building on his land in accordance with a sketch annexed to and also other provisions in the decree. In connection with the mutual covenants restraining each other given in the prior part of the decree, by clause 6, the following provision was made:

    “The expression ‘the plaintiff and the defendant herein’ shall include their heirs, legal representatives, executors, administrators and assigns and in the matter of injunction the said words shall also include their servants and the members of the family.”

    3. In 1963, the respondents, being the original applicants, filed Darkhast Application No. 1057 of 1963 against the appellants for enforcing the restrictive covenants by way of injunction and otherwise given in the consent decree by S.M Gujarathi in favour of J.J Cohen. The applicants are heirs and legal representatives of J.J Cohen. The appellants are the transferees and purchasers of the property No. 356 from S.M Gujarathi, the previous owner. The main contention on behalf of the appellants in the two Courts below was that there was no provision in the Code of Civil Procedure or otherwise in law which entitled the applicants to have the above consent decree executed against the appellants as purchasers of the above property from S.M Gujarathi. Both the Courts below have negatived that contention and passed orders as claimed in the darkhast application for reliefs claimed in execution of the above decree against the appellants.

    4. Mr. Jape for the appellants has once again repeated in this Court the above contention on behalf of the appellants. His contention is that the appellants do not admit that the decree crcates any covenants running with the land against the purchasers. Assuming, however, that the decree does create such covenants, there is no provision in the Code of Civil Procedure or otherwise in law which entitles the applicants-deeree-holders to execute the above consent decree against the appellants who were never parties to the suit in which the decree was passed. Mr. Jape has in this connection referred to ss. 47 and 50 and the scheme of O. XXI of the Code of Civil Procedure. He has submitted that under s. 50 specific provision is made whereunder, after a judgment debtor dies before the decree is fully satisfied, the holder of the decree is authorised to apply to the Court to execute the decree against legal representatives of the deceased judgment-debtor. He has emphasised that under sub-s. (2) provision is made that even against a legal representative decree can be executed to the extent only to which the property of the judgment-debtor has come to his hands. Under s. 17, questions arising between the parties to the suit in which the decree was passed or their representatives and relating to the execution, discharge or satisfaction of the decree are determined by the Court executing the decree and not by a separate suit. Mr. Jape has contended that the phrase “representative” in this section in effect is to include only legal representatives as defined in s. 2(11) of the Code. His contention is that “legal representative” is a person who in law represents the estate of a deceased person and otherwise an intermeddler with such estate and cannot include third parties. Mr. Dalvi for the applicant has on the contrary emphasised that the phrase “representatives” in s. 47 includes not only those who are defined as legal representatives in s. 2 of the Code but also all successors in interest of any of the parties to the suit including purchasers and assigns of such parties. In this connection, Mr. Dalvi has emphasised that S.M Gujarathi, from whom the appellants have purchased the property, agreed in clause 6 of the decree that the expression “the plaintiff” in the decree would include his heirs, legal representatives, executors, administrators and assigns and also his servants and members of his family. Relying’ upon the provisions in clause 6 of the decree, Mr. Dalvi contends that in this case in any event the appellants who are purchasers from S.M Gujarathi should be held to be representatives within the meaning of s. 47 and the decree should be held to be executable as such against the appellants.

    5. Now, in connection with these rival contentions of the parties, it first requires to be stated that the question has been settled by a number of authorities and does not arise now for a fresh decision. The learned Assistant Judge has referred to these authorities. In the case of Vithal v. Sakharam . 1899 1 Bom. L.R 854., it was held that the injunction granted was directed as against the parties mentioned in the decree and/or the particular persons and would not run with the land. The injunction granted by the decree, therefore, was not executable against a transferee-purchaser of the judgment-debtor. Similar was the decision in the cases of Dahyabhai v. Bapalal . 1901 I.L.R 26 Bom. 140, S.C 3 Bom. L.R 564. and Jamsetji Manekji v. Hari Dayal . 1907 I.L.R 32 Bom. 181, S.C 10 Bom. L.R 18.. As is mentioned by the learned Judge, the same question was considered in the cases of Amritlal v. Kantilal . 1930 33 Bom. L.R 266, S.C [1931] A.I.R Bom. 280. and Ganesh v. Narayn . 1931 33 Bom. L.R 1144, S.C [1931] A.I.R Bom. 484.. Having regard to these authorities, the learned Judge first held that an injunction was a personal remedy and did not run with the land. A decree for injunction could be executed only against those persons against whom the injunction was issued and could not be executed against other persons in the absence of statutory provisions. After making the above observations, the learned Judge referred to the provisions in ss. 40 and 52 of the Transfer of Property Act and arguments advanced on behalf of both sides on the basis of those sections. He first observed that

    “…the appellants have not purchased the property during the pendency of the execution proceedings; they purchased the property before the execution application and after the consent decree.”

    6. Subsequently he observed:

    “Taking into consideration the peculiar nature of the injunction decree, there appears some substance in the contention of the appellants that section 52 would not be of much help. But it is to be noted that under the terms of the consent decree (para 6) the assigns are included in the expression ‘plaintiff and defendant’. It will be thus seen that the parties not only bound themselves but the assigns are also bound by the terms of the decree. I have referred above that the appellants who have purchased the properties are bound by the covenants embodied in the decree. I, therefore, feel having regard to the terms of the consent decree above-referred, that the execution application is maintainable.”

    7. This is the sole ground on which the learned Judge held that the restrictive covenants in the decree by way of injunction were enforceable in execution proceedings against the appellants though they were transferees and purchasers of the above property. I have no doubt that in arriving at the above conclusion the learned Judge failed to apply the ratio of the authorities which he considered in prior part of his judgment. It is difficult to appreciate as to how the learned Judge failed to notice the well established principle that excepting the cases where judgments in rem are passed third parties and strangers cannot be bound by judgments and decrees passed in particular suits. That is directly provided in s. 41 of the Evidence Act. That is also the effect of the relevant provisions in the Code of Civil Procedure and particularly those in ss. 47 and 50 thereof. Now, it is true that having regard to what is provided in s. 52 of the Transfer of Property Act purchasers of properties pendente lite are bound by the decrees passed in litigations pending between third parties in respect of the properties under purchase. It is also true that having regard to the provisions in the Code of Civil Procedure relating to the effect of attachments, transferees of properties attached are bound by the provision in the decree in suits between third parties. These are exceptional eases and in these cases the phrase “representative” contained in s. 47 is held to be applicable. It is, however, not true that where decrees containing covenants running with the land are passed by consent and/or even in invitum the same can be directly executable against third parties and/or purchasers. Contentions of those kinds have already been negatived in the authorities which I have noticed above. Mr. Dalvi's contention that because S.M Gujarathi agreed to include the phrase “assigns” in clause 6 of the decree the same became executable against the purchasers from S.M Gujarathi is not well founded. Parties to a consent decree may choose to use such phrases as they like in a decree, but such decree cannot enact any new law of execution. The law of execution must be found in the Code of Civil Procedure. There is no provision in that Code empowering execution of decrees as such against purchasers of properties. That is so even in cases where decrees contain and provide for covenants which run with the land.

    8. Mr. Dalvi applied that since I was against the applicants on the question of procedure, their application should now be allowed to be converted into a suit. In that connection, he has relied upon sub-s. (2) of s. 47. It is true that ordinarily the trial Court executing a decree may give permission to convert an application for execution into a suit. This case has now been tried by the two Courts below and has been completely argued in this Court, I do not think that this is a matter in which I would permit such conversion at this stage. Under the circumstances, the orders passed by the two Courts below permitting Darkhast Application No. 1057 of 1963 to proceed are set aside. The Darkhast Application No. 1057 of 1963 is dismissed. The applicants-respon-dents will pay costs throughout.

    9. Orders set aside.

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    Abdul Kardar Haji Hiroli v. Mrs. Judah Jacob Cohen
    (Jul 18, 1967)