Login
  • Bookmark
  • PDF
  • Share
  • CaseIQ

Vengayil Madhavan Nayanar v. V. Parameswara Ayyar And Others.

Madras High Court
Sep 15, 1947
Important Paras
Please sign up to view Important Paras.
Smart Summary (Beta)

Structured Summary of the Opinion

Factual and Procedural Background

This set of proceedings arises from O.S. No. 15 of 1933 (a mortgage suit) in which a preliminary decree (13 September 1934) and final decree (27 January 1936) were passed. The mortgaged property was sold in execution and purchased by Vengayil Madhavan Nayanar (the appellant). On 16 November 1944 the first defendant (the judgment-debtor/mortgagor) applied in E.A. No. 52 of 1944 under Order 21, Rule 90 for setting aside the sale. On 6 March 1945 the decree-holders applied in E.A. No. 25 of 1945 under Order 21, Rule 2 for recording full satisfaction of the decree, alleging an out-of-court private adjustment: total due Rs. 6,750; Rs. 4,695 was paid and the balance (Rs. 2,055) was to be discharged by an order in respect of security deposited in E.A. No. 52/1944.

A "statement" filed on 8 March 1945 by the judgment-debtor's advocate recorded that Rs. 231-3-0 (poundage and sale commission due to the auction purchaser) was paid to the auction purchaser's advocate; the auction purchaser's advocate endorsed receipt. On 10 March 1945 the District Judge directed that full satisfaction be recorded and the sale cancelled, overruling the auction purchaser's objection (which was that the decree amount should have been deposited into Court and private adjustments ought not be recognised). The District Judge relied on Muthuvenkatapathi Reddi v. Kuppu Reddi and equated the position under Order 34, Rule 5 to the principle applied under Order 21, Rule 89.

Appeals were filed: A.A.O. No. 508 of 1945 against the order in E.A. No. 52 of 1944, and A.A.O. No. 507 of 1945 and C.R.P. No. 1060 of 1945 against the order in E.A. No. 25 of 1945. The High Court considered the correct legal approach to adjustments and payments at various stages of a mortgage suit and execution, and also dealt with an estoppel argument based on the auction purchaser's retention of five per cent of the purchase money.

Legal Issues Presented

  1. Whether, after a sale of the hypothec in execution of a final decree for sale and more than thirty days after the sale but before confirmation, the mortgagor may pay the amount due to the decree-holder out of Court (or otherwise satisfy the decree-holder) and thereby obtain the benefit of Order 34, Rule 5 without depositing the amounts into Court as that Rule requires.
  2. Whether Order 21, Rule 2 (certification of out-of-Court adjustments) can be invoked after a sale has taken place, i.e., whether Order 21, Rule 2 remains available to record an out-of-Court satisfaction once a third-party purchaser's interest has intervened by reason of a sale.
  3. Whether a party (the auction purchaser) who accepted and retained the 5% poundage/commission payment through his advocate can subsequently challenge the legality of the order cancelling the sale (the approbate and reprobate / estoppel aspect).

Arguments of the Parties

Appellant (Auction Purchaser) — Principal Arguments

  • The District Judge wrongly relied on Muthuvenkatapathi Reddi v. Kuppu Reddi; that decision does not permit ignoring the express language of Order 34, Rule 5.
  • The language of Order 34, Rule 5 is imperative: the amount due to the decree-holders must be deposited into Court; because the amount was not deposited into Court, the sale could not be set aside or cancelled.

Respondent / Judgment-Debtor and Decree-Holder — Principal Arguments

  • The decree-holders argued that Order 21, Rule 2 would apply even after sale and that the satisfaction could be recorded where payment or an adjustment has been made out of Court.
  • The judgment-debtor relied on the District Judge's interpretation of Muthuvenkatapathi Reddi v. Kuppu Reddi to support recognition of out-of-Court adjustments as equivalent to a deposit for the purposes of the relevant rule.
  • The respondents further contended that the appellant (auction purchaser) is precluded from challenging the orders because the appellant (through his advocate) accepted and retained the five per cent commission/poundage payment on 8 March 1945 and raised no objection on 10 March 1945 — an estoppel/approbate-and-reprobate argument.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Muthuvenkatapathi Reddi v. Kuppu Reddi (1940) 1 M.L.J. 629 : I.L.R. 1940 Mad 699 (F.B.) Whether non-cash payments or private adjustments to the decree-holder count as "amounts received" within Order 21, Rule 89 (i.e., can be credited). The Court recorded that the Full Bench held such adjustments can amount to receipt under Order 21, Rule 89, but refused to accept that the Full Bench held generally that a statutory requirement to deposit could be waived by agreement. The Court limited the application of the decision to interpretation of "amounts received" and declined to extend it to permit dispensing with an express deposit requirement in Order 34, Rule 5.
Madan Theatres Ltd. v. Dinshaw & Co., Ltd. (1945) 2 M.L.J. 367 : L.R. 73 I.A. 277 : 20 Luck. 461 (P.C.) Payment or adjustment out of Court between preliminary decree and final decree falls within Order 23, Rule 3; the mortgage suit continues until the final decree. The Court relied on the Privy Council's view to hold that earlier local decisions taking a stricter approach to out-of-court adjustments between preliminary and final decree were no longer good law; it used the decision to support the proposition that Order 23, Rule 3 permits recognition of out-of-court adjustments at that stage.
Seth Nanhelal v. Umrao Singh (1930) 60 M.L.J. 423 : L.R. 58 I.A. 50 (P.C.) The inapplicability of Order 21, Rule 2 after a sale has been effected because a third-party interest (the purchaser) intervenes; remedies post-sale are governed by Rule 89 (within 30 days) or equivalent provisions. The Court relied on the Privy Council's reasoning to reject the argument that Order 21, Rule 2 could be invoked after sale; it held that after sale only Order 21, Rule 89 and/or Order 34, Rule 5 can apply, and specifically that the application under Order 21, Rule 2 could not be treated as compliance with Order 34, Rule 5.
Rasan Chettiar v. Rangayyan Chettiar, A.I.R. 1930 Mad. 105 Earlier Madras decision indicating the preliminary view that payment must be into Court (i.e., stricter construction of payment provisions). The Court noted this earlier decision as representative of an earlier, stricter approach which has been superseded by later authoritative rulings (noted particularly in light of Madan Theatres).
Singaraja v. Pethu Raja (1918) 35 M.L.J. 579 : I.L.R. 42 Mad. 61 Earlier decision adopting the strict view that adjustments out of Court could not be pleaded against passing of a final decree for sale. The Court observed this earlier decision was part of the prior line of authority now displaced by later rulings (notably the Privy Council decision).
Adari Sanyasi v. Nookalamma (1930) 54 Mad. 708 Another earlier Madras decision in the same line as Singaraja, reflecting a strict approach to deposits into Court. The Court treated it as part of the earlier, now-overruled approach and did not follow it in light of later authoritative law.
Periakaruppan Chettiar v. Doraiswami Naicken (1940) 1 M.L.J. 134 Earlier decision consistent with the stricter line on deposits and adjustments. The Court recorded it as part of the earlier body of authority which had to be reconsidered in the light of Madan Theatres (Privy Council).
Palaniappa Chettiar v. Narayanan Chettiar (1935) 69 M.L.J. 765 : I.L.R. 59 Mad. 188 (F.B.) Full Bench decision addressing whether an application for a personal decree under Order 34, Rule 6 is an application in execution (and related procedural questions). The Court explained that this Full Bench dealt with a different stage and issue (Order 34, Rule 6), and that its reasoning did not conflict with the Privy Council's ruling in Madan Theatres relating to the stage between preliminary and final decree.
Tinkler v. Hilder (1849) 4 Exch. Rep. 187 Authority referenced in connection with the principle against approbation and reprobation (estoppel by conduct). The Court cited the principle as part of the doctrinal basis for holding the auction purchaser estopped from challenging the order after retaining the five per cent; the decision was invoked as background authority for the estoppel principle.
Venkatarayudu v. Chinna Ramakrishnayya (1929) 58 M.L.J. 137 Illustration that a party who personally hands over an amount to his opponent and the opponent keeps it cannot later rely on a protest to avoid consequence. The Court noted the passage (page 142) showing that an asserted protest by the recipient does not avail; used to support the conclusion that the auction purchaser's protest (if any) was ineffective after receipt.
Sriramulu v. Venkatanarasimham (1938) 2 M.L.J. 835 Case cited in the context of authorities dealing with approbation/reprobation and related procedural consequences. The Court referenced it among decided cases illustrating the principle that a party taking benefit under an order cannot later attack it; relied on the collective authority for the estoppel point.
Ranendramohan Tagore v. Keshebchandra Chanda (1934) 61 Cal. 433 Another case cited in the context of conduct and estoppel principles. Included in the list of authorities relied upon for the proposition that retaining the benefit of a payment precludes later protest; the Court considered these authorities unnecessary to examine individually because the governing principle was clear.

Court's Reasoning and Analysis

The Court proceeded by analyzing the legal position in sequential stages of a mortgage suit and execution, applying statutory provisions and relevant precedents to each stage rather than adopting a unitary rule for all stages:

  1. Stage between preliminary decree and final decree:
    • The Court examined Order 34, Rule 4(1), Order 34, Rule 2(1)(c)(i) and Order 34, Rule 5 and the prescribed form of preliminary decree. It concluded that adjustments or payments made out of Court at this stage fall within Order 23, Rule 3 (as explained by the Privy Council in Madan Theatres Ltd v Dinshaw & Co.). Thus payments/adjustments before a final decree can be pleaded and proved under Order 23, Rule 3.
  2. Stage between final decree and the sale:
    • The Court said Order 21, Rules 64–103 (which govern execution sales generally) would apply so that the mortgagor could avail himself of Order 21, Rule 2 and Order 21, Rule 66 between the final decree and the sale. Those provisions allow recognition of out-of-court adjustments prior to sale.
  3. Stage after the sale (the decisive stage in this dispute):
    • The Court stressed that once a sale has been effected a third-party purchaser's interest has intervened, and the remedies available to a mortgagor to set aside the sale are governed by Order 21, Rule 89 (if within 30 days) and by Order 34, Rule 5 (which, after the 1929 amendment, permits the defendant to apply at any time before confirmation of the sale but requires a deposit into Court of all amounts due and, where relevant, a 5% payment to the purchaser).
    • Although Muthuvenkatapathi Reddi (Full Bench) held that non-cash adjustments can be deemed "amounts received" under Order 21, Rule 89 Clause 1(b), the Court refused to accept that that decision authorises parties to dispense with an express statutory requirement of deposit into Court. The Court carefully limited Muthuvenkatapathi Reddi to its actual scope: it addressed whether non-cash adjustments amount to "receipt", not whether the statutory deposit obligation can be waived by agreement.
    • The Court concluded that Order 34, Rule 5's requirement of deposit into Court is mandatory and that a payment or adjustment made out of Court (i.e., not deposited in Court) does not satisfy the strict requirements of that rule.
    • It also rejected the contention that Order 21, Rule 2 could be used after sale to certify an out-of-court adjustment, relying on the Privy Council decision in Seth Nanhelal v. Umrao Singh to show that Order 21, Rule 2 contemplates a stage before third-party interests arise and is therefore inapplicable after sale.
  4. Estoppel (approbate and reprobate) point:
    • The Court examined the conduct of the auction purchaser who, through his advocate, accepted the five per cent commission/poundage payment on 8 March 1945 and did not object at the hearing on 10 March 1945 nor return the amount thereafter. The Court treated this conduct as precluding the auction purchaser from challenging the order cancelling the sale. The doctrine cited is that a party who takes a benefit under an order should not later be heard to challenge the validity of that order to the prejudice of others who relied on it.

Holding and Implications

Core Ruling: The Court dismissed the two civil miscellaneous appeals and the civil revision petition; the appeals and the connected petitions for additional evidence were also dismissed (with costs and specified advocates' fees as noted in the opinion).

Consequences and immediate implications:

  • The Court held that after a sale has been made in execution of a final decree the mortgagor cannot, in lieu of depositing the amounts required by Order 34, Rule 5 into Court, rely on an out-of-court payment or adjustment to obtain cancellation of the sale; the deposit requirement of Order 34, Rule 5 is mandatory for that remedy.
  • The Court held that Order 21, Rule 2 cannot be invoked to certify an out-of-court adjustment after a sale has taken place because a purchaser's interest has intervened; after sale, the available remedies are Order 21, Rule 89 (within 30 days) and Order 34, Rule 5 (before confirmation), subject to their conditions.
  • The auction purchaser was held estopped from contesting the cancellation where he (through his advocate) had accepted and retained the five per cent payment and raised no objection at the relevant hearing; accordingly the orders below were sustained and the appeals dismissed.
  • The petition to admit additional evidence (correspondence between the appellant and his advocate) was dismissed as irrelevant to the inter se rights between the auction purchaser and the judgment-debtor.

Note: The opinion applies and reconciles existing authorities and statutory provisions to the facts; it does not, in the text of the opinion provided, state that it is announcing a new precedent beyond the legal conclusions articulated above. The decision therefore had the direct effect described for the parties to these proceedings.

Show all summary ...

1. The facts necessary for the disposal of the above civil miscellaneus appeals and civil revision petition can be shortly stated. In O.S. No. 15 of 1933, on the file of the District Judge of Morth Malabar, which was a suit for sale on a mortgage, a preliminary decree was passed on 13th September, 1934, followed by a final decree on 27th January, 1936. The mortgaged property was sold in execution and purchased by one Vengayil Madhavan Nayanar who is the appellant in the civil miscellanous appeals and the petitioner in the civil revision petition and who will hereinafter be referred to as the appellant. On 16th November, 1944, the first defendant in the mortgage suit applied in E.A. No. 52 of 1944 under Order 21, Rule 90 of the Code of Civil Procedure for setting aside the sale. This application underwent several adjournments. On 6th March, 1945, the decree-holders applied in E.A. No. 25 of 1945 under Order 21, Rule 2 for recording full satisfaction of the decree alleging that the first defendant agreed to pay and the decree-holders agreed to receive Rs. 6,750 in full satisfaction of the decree, that Rs. 4,695 out of the said amount was paid to the decree-holders by the first defendant that in discharge of the balance of Rs. 2,055 both parties agreed that an order for payment should be made in favour of the decree-holders of the sum deposited as security by the first defendant in E.A. No. 52 of 1944. In what is described as a "statement" filed by the first defendant's advocate on 8th March, 1945, it was mentioned that "Rs. 231-3-0 made up of poundage and sale commission due to the auction purchaser as per the auction sale held in O.S. No. 15 of 1933 was paid to the advocate for the auction purchaser by the first defendant's advocate." The auction purchaser's advocate endorsed on it that he received the amount.

2. On 10th March, 1945, the learned District Judge directed that full satisfaction of the decree should be recorded and that the sale should be cancelled, overruling the auction purchaser's objection which, in the District Judge's language, was to the effect:

That the private adjustment of the decree ought not to be recognised but that the full decree amount due must be deposited in Court and then withdrawn by the decree-holders and that the decree-holders receiving the amount otherwise must not be upheld.

3. The learned District Judge characterised this objection as a technical one, after referring pointedly to the fact " that the auction purchaser has been paid his commission of five per cent and poundage." While noticing that Order 34, Rule 5. of the Civil Procedure Code prescribes that the defendant should deposit in Court the sum due as per the decree, the learned District Judge observed that it does not specifically prohibit private adjustments of the decree by any arrangement arrived at between the judgment-debtor and the decree-holders. The learned District Judge was of the opinion that this principle was established in Muthuvenkatapathi Reddi v. Kuppu Reddi (1940) 1 M.L.J. 629 : I.L.R. 1940 Mad 699 (F.B.) in regard to deposit in Court required by Order 21, Rule 89 and held that the same principle must govern the requirement as to deposit under Order 34, Rule 5.

4. In this view the application under Order 21, Rule 90 was no longer necessary and it was accordingly dismissed. A.A.O. No. 508 of 1945 is against the order in E.A. No. 52 of 1944 while A.A.O. No. 507 of 1945 and C.R.P. No. 1060 of 1945 are against the order in E.A. No. 25 of 1945.

5. It is contended on behalf of the auction purchaser that the reliance by the learned District Judge on the 'decision in Muthuvenkatapathi Reddi v. Kuppu Reddi (1940) 1 M.L.J. 629 : I.L.R. 1940 Mad 699 (F.B.) is misplaced, that the language of Order 34, Rule 5 is imperative and that as the amount due to the decree-holders was admittedly not deposited in Court for satisfaction of the decree, the sale cannot be set aside. For the judgment-debtor it is argued that Order 21, Rule 2 would apply even after the sale of the mortgaged property and that satisfaction of the decree can therefore be recorded when payment is made out of Court or the decree is otherwise adjusted notwithstanding that a sale has already taken place. It is also argued that the learned District Judge correctly interpreted the decision in Muthuvenkatapathi Reddi v. Kuppu Reddi (1940) 1 M.L.J. 629 : I.L.R. 1940 Mad 699 (F.B.) and was justified in applying its principle to a case arising under Order 34, Rule 5 which is described as a provision analogous to Order 21, Rule 89. The respondents' advocate raises the further contention that it is not open to the appellant to question the correct-ness of the orders of that Court in view of what transpired before and at the time when those orders were made. We shall deal with this last aspect of the case separately and in due course.

6. The principal question that has to be decided is whether, after a sale of the hypotheca in execution of a final decree for sale, it is open to the mortgagor more than 30 days after the sale but before its confirmation, to pay, out of Court, the amount due to the decree-holder or otherwise satisfy him and claim the benefit of Order 34, Rule 5 of the Civil Procedure Code, or in other words, whether or not the requirement of the said rule that the said amount must be deposited in Court is obligatory and is strictly to be complied with.

7. Elaborate arguments have been addressed and a large number of decisions have been referred to by Mr. Achuthan Nambiar for the appellant and by Mr. Ramakrishna Iyer for the respondent. While it is conceded that there is no ruling which directly deals with the point arising for determination in this case it is claimed that some light is thrown on it and some guidance afforded by decisions which deal with various stages of suits and execution when a mortgage is sought to be enforced by a sale of the mortgaged property.

8. It will be convenient to deal with the provisions bearing upon and the decisions relating to each of these several stages in their sequence. First as to the stage between the preliminary decree and the final decree, Order 34, Rule 4(1) which prescribes the form of a preliminary decree for sale runs as follows:

In a suit for sale, if the plaintiff succeeds, the Court shall pass a preliminary decree to the effect mentioned in Clauses (a), (4) and (c)(i) of Sub-rule (1) of Rule 2, and further directing that, in default of the defendant paying as therein mentioned, the plaintiff shall be entitled to apply for a final decree directing that the mortgaged property or a sufficient part thereof be sold and the proceeds of the sale (after deduction therefrom of the expenses of the sale) be paid into Court....

9. How the amount so paid is to be applied is laid down in the latter portion of Sub-rule 1, but it is unnecessary to quote it. Order 34, Rule 2, Sub-rule (1) Clauses (a), (b) and (c)(i) have to be read into Order 34, Rule 4, Sub-rule (1) with the result that a preliminary decree for sale must contain an order directing.

That an account be taken of what was due to the plaintiff at the date of the preliminary decree for principal and interest on the mortgage, the costs of suit, if any, awarded to the plaintiff, and other costs, charges and expenses properly incurred by him upto that date in respect of his mortgage secutrity, together with interest thereon or in the alternative a declaration of " the amount so due at that date." There must besides be included in such preliminary decree a direction That, if the defendant pays into Court the amount so found or declared due on or before such date as the Court may fix within six months from the date on which the Court confirms and countersigns the account so taken, or from the date on which such amount is so declared. The plaintiff shall deliver up to the defendant all documents in his possession or power relating to the mortgaged property and shall if so required, retransfer the property to the defendant and shall also, if necessary, put the defendant in possession of the property.

10. We have omitted all mention of the further amounts which the defendant has to pay by way of subsequent charges and expenses as provided in Rule 10 or subsequent interest as provided in Rule 11, as that part of Order 34, Rule 2(1)(c)(i) which refers to them does not bear on the point now at issue. Order 34, Rule 5(1) contemplates two stages. One is before the day fixed for payment as contemplated by the combined operation of Order 34, Rule 4(1) and Order 34, Rule 2(1)(c)(i). If before that day the defendant makes payment into Court of all amounts due from him under Sub-rule (1) of Rule 4, the Court shall, on application made by the defendant in this behalf, pass a final decree which has the effect of cancelling the mortgage and of restoring the defendant to the position he occupied before he executed the deed of mortgage. If payment before the day fixed is not made the Court shall, under Order 34, Rule 5 Sub-rule (3) on application made by the plaintiff in this behalf pass a final decree directing that the mortgaged property or a sufficient part thereof be sold, and that the proceeds of the sale be dealt with in the manner provided in Sub-rule (1) of Rule 4. After a sale takes place in pursuance of a final decree the defendant is given by another part of Order 34, Rule 5(1) a further chance to save his property. We shall set out this portion of Order 34, Rule 5(1) when dealing with that stage in the course of the examination of the final decree. That in fact is the stage with which" we are in this case, directly concerned.

11. The form of the preliminary decree appended to the Code of Civil Procedure (see Schedule I Appendix D form No. 5-A which is the form to be followed when the Court declares, as is very often done, the amount due) closely follows the provisions of Order 34, Rule 4(1).

It is necessary only to refer to paragraph 2 of that form whereby it is ordered and decreed that the defendant do pay into Court on or before the... day of...or any later date up to which time for payment may be extended by the Court the said sum of Rs....

12. In view of the language of Order 34, Rule 4(1) read with the relevant portions of Order 34, Rule 2(1) the form of decree we have referred to and the allied form No. 5 which is adopted where accounts are directed to be taken, as also from the language of Order 34, Rule 5(1) in so far as it relates to the stage before a final decree, the view was at one time taken in this Court that all adjustments made out of Court between the dates of the preliminary decree and the final decree cannot be pleaded against the passing of the final decree, that the provisions of Order 34, recognising only one method of payment, namely, payment into Court are imperative and that these provisions were advisedly inserted in modification of the corresponding provisions of Sections 88 and 89 of the Transfer of Property Act which provided for payment to the plaintiff or into Court (See Rasan Chettiar v. Rangayyan Chettiar A.I.R. 1930 Mad. 105). The same view was taken in an earlier decision in Singaraja v. Pethu Raja (1918) 35 M.L.J. 579 : I.L.R. 42 Mad. 61 and in the later decisions in Adari Sanyasi v. Nookalamma (1930) 54 Mad. 708 and Periakaruppan Chettiar v. Doraiswami Naicken (1940) 1 M.L.J. 134.

13. These decisions, however, are no longer good law in view of the judgment of the Judicial Committee in Madan Theatres Ltd. v. Dinshaw and Co., Ltd. (1945) 2 M.L.J. 367 : L.R. 73 I.A. 277 : 20 Luck. 461 (P.C.). In that case the Privy Council pointed out that the mortgage suit must be taken to be continuing upto the final decree for sale and that payment or adjustment out of Court before the final decree would therefore come under Order 23, Rule 3 of the Civil Procedure Code. It was emphasised that there is no qualification to the wide terms of Order 23, Rule 3 nor any grounds limiting its application and it was therefore held that under that rule it is open to a debtor to allege and prove that an adjustment has taken place or payment in whole or in part has been made and received between the preliminary decree and the final decree. In this view of Order 23, Rule 3, the Privy Council refrained from considering the question whether the provisions of order 34 are, if it stood alone, sufficiently precise to prohibit the compromise of the preliminary decree in a mortgage suit by payment or adjustment in some way other than that directed by the preliminary decree.

14. In C.M.A.No. 29 of 1945 it was noticed that the Madras decisions to which we have referred above are overruled by the recent decision of the Judicial Committee just mentioned. The learned Judges in A.A.O. No. 29 of 1945 added that the decision of the Full Bench in Palaniappa Chettiar v. Narayanan Chettiar (1945) 2 M.L.J. 367 : L.R. 73 I.A. 277 : 20 Luck. 461 (P.C.) must also be taken to have been overruled by the decision in Madan Theatres, Ltd. v. Dinshaw and Co., Ltd. (1945) 2 M.L.J. 367 : L.R. 73 I.A. 277 : 20 Luck. 461 (P.C.). We unable to follow this as the Full Bench in Palaniappa Chettiar v. Narayanan Chettiar (1935) 69 M.L.J. 765 : I.L.R. 59 Mad.188 (F.B.) was concerned with the question whether an application for the passing of a personal decree under Order 34, Rule 6 is an application in execution. It was pointed out that such an application has reference to one of the reliefs in the plaint in a mortgage suit which must to that extent be still regarded as pending and that the application must therefore be regarded as an application in the suit, notwithstanding that it cannot be made before it is found that the proceeds of the sale of the mortgaged property are insufficient to pay the amount due to the plaintiff. We do not see how this can be said to be in conflict with anything said by the Judicial Committee in Madan Theatres, Ltd. v. Dinshaw and Co., Ltd. (1945) 2 M.L.J. 367 : L.R. 73 I.A. 277 : 20 Luck. 461 (P.C.) which dealt as has already been said, with another and a quite different stage, viz., that between the preliminary decree for sale and the final decree for sale. The learned Judges in Palaniappa Chettiar v. Narayanan Chettiar (1935) 69 M.L.J. 765 : I.L.R. 59 Mad.188 (F.B.) refer no doubt to Singaraja v. Petharaja (1918) 35 M.L.J. 579 : I.L.R. 42 Mad. 61 but they make the reservation that they do not wish to be understood as accepting its correctness and also point out that that decision has no bearing on the question under their consideration.

15. The inapplicability of Order 21, Rule 2 which relates to the stage of execution, to any payment or adjustment made between a preliminary decree and a final decree for sale is also pointed out in Madan Theatres, Ltd. v. Dinshaw and Co., Ltd. (1945) 2 M.L.J. 367 : L.R. 73 I.A. 277 : 20 Luck. 461 (P.C.).

16. The second stage is that between a final decree for sale and the sale itself. Under Order 34, Rule 5(3) and form No. 6 of Appendix D to schedule No. 1, a final decree for sale first recites that the payment directed by the preliminary decree has not been made by the defendant and then proceeds to provide that the mortgaged property or a sufficient part thereof be sold. If any payment is made or satisfaction is given during this period there is no reason why the provisions of Order 21, Rule 2 cannot be availed of. In fact the appellant's advocate admitted that that rule would be applicable. If the provisions of Order 21, Rules 64 to 103 are applicable to sales in execution of mortgage decrees, as they presumably are except where a particular rule is made inapplicable either by an express provision or possibly by the context, the mortgagor-judgment-debtor can avail himself also-of the provisions of Order 21, Rule 66 and bring to the notice of the Court at the time of the settlement of the sale proclamation any payment which he may have made or satisfaction which he may have given to the mortgagee-decree-holder previously thereto, provided he is within 90 days of such payment or satisfaction (see Article 174 of the Limitation Act).

17. After the sale of the mortgaged property the position is much more complicated. This constitutes the third stage. Within thirty days of the sale it is open to the mortgagor to apply under Order 21, Rule 89 for setting aside the sale provided he deposits into Court such balance as may remain out of the amount specified in the prolcamation of sale after giving credit to any amount which may have been received by the decree-holder and also deposits into Court for payment to the purchaser a sum equal to five per cent of the purchase money.

18. A question has arisen whether under Order 21, Rule 89 Sub-rule 1 Clause (b) credit could be given when the judgment-debtor paid no cash but gave the decree-holder money's worth or obtained from the decree-holder a waiver or remission of the whole or a portion of the amount due under the decree. In Muthuvenkatappa-Reddi v. Kuppu Reddi (1940) 1 M.L.J. 629 : I.L.R. 1940 Mad 699 (F.B.) a Full Bench of this Court held, approving three earlier decisions, that any payment or adjustment made by the judgment-debtor to satisfy the decree-holder is " receipt " of an amount within the meaning of Order 21, Rule 89 Clause 1(b). The respondents' advocate referred to the observations of Krishnaswami Aiyangar, J., who was a member of the Full Bench, occurring at page 715 of the report which are as follows:

The true view to take of Order 21, Rule 89, Civil Procedure Code is that what is done by consent of parties as a substitute for the deposit is to be regarded as its equivalent in every respect and Judged by the same principles as those applicable to a deposit. By that consent, what was not in fact a payment in cash is turned into a deposit within the meaning of the rule to be acted upon by the Court in all respects as if it were a payment in cash.

19. Relying on these observations the respondents' advocate claimed that the decision in Muthuvenkatappa Reddi v. Kuppu Reddi (1940) 1 M.L.J. 629 : I.L.R. 1940 Mad 699 (F.B.) is an authority for the wider proposition that, notwithstanding any requirement in a statutory provision, whether Order 21, Rule 89 or Order 34, Rule 5 that payment should be made into Court, it is open to the parties to dispense with it by agreement and receive payment or its equivalent outside Court. With great respect we are unable to agree with the observations of Krishnaswami Aiyangar, J., just referred to. On an examination of the judgment of the Chief Justice with whom King, J., agreed as also of the earlier decisions which have been referred to with approval by the Full Bench it is quite clear that what the Full Bench was concerned with in Muthuvenkatapathi Reddi v. Kuppu Reddi (1940) 1 M.L.J. 629 : I.L.R. 1940 Mad 699 (F.B.) is whether the words "amounts received by the decree-holder" occurring in Clause (b) of Sub-rule 1 of Order 21, Rule 89 must be strictly construed so as to exclude from their purview and operation all satisfaction or adjustment otherwise than in cash. It was held that they should not be so construed. We are therefore, unable to agree with the argument of the respondents' advocate and the view of the lower Court that the decision in Muthuvenkatapathi Reddi v. Kuppu Reddi (1940) 1 M.L.J. 629 : I.L.R. 1940 Mad 699 (F.B.) laid down that a statutory requirement as to deposit can be ignored when the decree-holder is prepared to waive it or condone its non-observance.

20. If the application had been within thirty days of the sale it would no doubt have been open to the judgment-debtor to prove that the decree-holder " received " the amounts specified in the proclamation of sale in the manner alleged in E.A. No. 25 of 1945. But that application as also the payment of 5 per cent of the purchase money to the auction purchaser two days later, being obviously beyond thirty days of the sale, the judgment-debtor can if at all, avail himself only of the provisions of Order 34, Rule 5 which for the present purpose may be quoted as follows:

(1) Where,...at any time before the confirmation of a sale made in pursuance of a final decree passed under Sub-rule (3) of this rule, the defendant makes payment into Court of all amounts due from him under Sub-rule (1) of Rule 4, the Court shall, on application made by the defendant in this behalf, pass an order....

which would have the effect of cancelling the sale already held and restoring the property free from encumbrance to the mortgagor.

(2) " Where the mortgaged property or part thereof has been sold in pursuance of a decree passed under Sub-rule (3) of this rule, the Court shall not pass an order under Sub-rule (1) of this rule, unless the defendant, in addition to the amount mentioned in Sub-rule (1), deposits in Court for payment to the purchaser a sum equal to five per cent of the amount of the purchase money paid into Court by the purchaser. Where such deposit has been made the purchaser shall be entitled to an order for repayment of the amount of the purchase money paid into Court by him, together with a sum equal to five per cent thereof.

21. There is no reason to think that the language of this rule is otherwise than imperative, and we see no ground for holding that a payment or adjustment out of Court would be compliance with the strict requirements of this rule.

22. It has, however, been argued by the respondents' advocate that Order 21, Rule 2 can be invoked by his client and that such payment or adjustment as was made by the judgment-debtor can be recognised and recorded under its provisions. To this argument the appellant's advocate has an effective answer. In the decision in Seth Nanhelal v. Umrao Singh (1930) 60 M.L.J. 423 : L.R. 58 I.A. 50(P.C.) which has been cited on the appellant's behalf, the Privy Council rejected an argument similar to the one now advanced for the respondent. The following passage from their judgment may be usefully quoted:

In the first place, Order 21, Rule 2 which provides for certification of an adjustment come to out of Court, clearly contemplates a stage in the execution proceedings when the matter lies only between the judgment-debtor and the decree-holder, and when no other interests have come into being. When once a sale has been effected, a third party interest intervenes, and there is nothing in this rule to suggest that it is to be disregarded. The only means by which the judgment-debtor can get rid of a sale, which has been duly carried out, are those embodied in Rule 89, viz., by depositing in Court the amount for the recovery of which the property was sold, together with 5 per cent on the purchase money which goes to the purchaser as statutory compensation, and this remedy can only be pursued within 30 days of the sale: See Article 166, Schedule I of the Limitation Act, 1908. That this is so is, in their Lordships' opinion, clear under the wording of Rule 92, which provides that in such a case (i.e., where the sale has been duly carried out), if no application is made under Rule 89, the Court shall make an order confirming the sale and thereupon the sale shall become absolute.

23. In view of this decision there is, in our judgment, no room for the argument that Order 21, Rule 2 is applicable even after a sale of the mortgaged property. Dealing with a mortgage decree, we are of the opinion, that Order 21, Rule 89 and, or Order 34, Rule 5 alone can apply after the stage of sale, the former being obviously available only within thirty days of it.

24. We see no real hardship from the view we have indicated. The mortgagor-judgment-debtor has ample opportunities of reducing his indebtedness and having it recognised by Court whatever shape or form the satisfaction given to the mortgagee decree-holder may have taken. He could do so under Order 23, Rule 3 between the preliminary and the final decrees for sale. He could invoke the aid of Order 21, Rule 2, and Order 21, Rule 66 between the final decree and the sale itself. He could avail himself of Order 21, Rule 89 after the sale but within 30 days of it. A further chance has no doubt been given to him for saving his property by amending Order 34 Rule 5 in 1929, notwithstanding all his previous laches and default, but if he is to avail himself of this new privilege he must comply with its somewhat stringent provisions.

25. We may notice in passing that Seth Nanhelal v. Umrao Singh (1930) 60 M.L.J. 423 : L.R. 58 I.A. 50(P.C.) was itself a case of a mortgage decree, but no reference was made therein to Order 34, Rule 5 because though the judgment of the Privy Council was given on the 16th December, 1930, all the events with which their Lordships had to deal happened in 1923, 1924 and 1925 and therefore several years before Order 34, Rule 5 was amended by the Transfer of Property (Amendment) Supplementary Act, 1929, which came into operation in 1st April, 1930, and, which, for the first time provided for a deposit and an application at any time before the confirmation of the sale. The reasoning however of their Lordships of the Privy Council in Seth Nanehelal v. Umrao Singh (1849) 4 Exch. Rep. 187 will apply with equal force even after the amendment and will exclude the application of Order 21, Rule 2 once a sale in execution of the final decree takes place... The result is that the application by the decree-holder under Order 21, Rule 2 on 6th March, 1945 cannot be regarded as compliance with the provisions of Order 34, Rule 5.

26. It is argued by the respondents' advocate that the statement signed by the advocates for the auction purchaser and the judgment-debtor on 8th March, 1945, and filed into Court on that day may be regarded as an application under Order 34, Rule 5 particularly in view of certain decisions which were relied on as holding that an application under Order 34, Rule 5 or Order 34, Rule 6 need not even be in writing. We agree that any informality in the manner in which the application was made or in its contents will not stand in the way of the judgment-debtor obtaining the appropriate relief under Order 34, Rule 5. It is, however, un-necessary to pursue this matter further, as in our view, the main requirement of Order 34, Rule 5 has not been satisfied in so far as the judgment-debtor did not deposit into Court what was due to the decree-holder.

27. It now remains to deal with a further contention raised by the respondents' advocate for maintaining the order of the lower Court. It is argued that whatever may be the correct position as regards the necessity of a deposit into Court of the amount due to the decree-holder, the appellant is precluded from raising this objection in view of his conduct in retaining the five per cent. on his purchase money which had been paid to his advocate on 8th March, 1945. It will be recalled that this amount was received without objection on that date and that on 10th March, 1945 when the applications were heard and disposed of, no objection was taken that the amount due to the auction purchaser was not paid or that it should have been paid into Court. The amount was not paid back then or since. On 10th March, 1945, there was no offer even to return it though about the effect of a mere offer of that kind we do not desire to express our opinion. It has been said that the advocate had no authority to receive it. Prima facie he would have and assuming he had not, there is no reason why this was not stated to the Court on 10th March, 1945, or why as between the auction purchaser and the defendant the former did not restore the amount or see that it was restored by his advocate. Having, in a question between himself and the mortgagor, retained the benefit of a payment which he would be entitled to only if the sale is to be set aside as contemplated by Order 34, Rule 5 we do not see how he can now be heard to say-that the mortgagor is not entitled to the benefits of that provision. The principle applicable to such situations is stated in Halsbury's Laws of England, Hailsham edition, vol. 13, para 512 to be merely an application of the doctrine that a man may not approbate and reprobate. It is stated further in that paragraph that A party cannot, after taking an advantage under an order, be heard to say that it. is invalid and ask to set it aside or to set up to the prejudice of persons who have relied upon it a case inconsistent with that upon which it was founded.

28. The respondents' advocate drew our attention to Tinkler v. Hilder (1849) 4 Exch. Rep. 187 Venkatarayudu v. Chinna Ramakrishnayya (1929) 58 M.L.J. 137 Sriramulu v. Venkatanarasimham (1938) 2 M.L.J. 835 and Ranendramohan Tagore v. Keshebchandra Chanda (1934) 61 Cal. 433. It is unnecessary to refer to these decisions or to the rulings relied on in them as the governing principle is clear. We need refer only to the instance stated at page 142 of the report in Venkatarayudu v. Chinna Ramakrishnayya (1929) 58 M.L.J. 137 of a party liable under an order personally handing over the amount to his opponent, who, while insisting on keeping it, asserts that he receives it under protest, and it is pointed out that in such a case, his socalled protest cannot in the least avail him.

29. This argument for the respondent must, in the cirsumstances already pointed out, be upheld with the result that the two civil miscellaneous appeals and the civil revision petition are dismissed with costs with advocates' fee only in C.M.A. No. 507 of 1945. Two Counsel.

30. In C.M.P. No. 1466 of 1947, the appellant seeks the admission, as additional evidence in the appeals, of some correspondence which is said to have passed between him and his advocate after the disposal of the applications for the purpose of showing that the advocate had no authority to receive the amount which he did on the 8th. March, 1945. This has no bearing on the rights inter se of the auction purchaser and the judgment-debtor. This petition and the connected petition, C.M.P. No. 1465 of 1947 are therefore dismissed.