Login
  • Bookmark
  • PDF
  • Share
  • CaseIQ

Nagi Reddi Seetharami Reddi And Another v. Thikkavarapu Kotamma And Others.

Madras High Court
Jan 10, 1947
Important Paras
Please sign up to view Important Paras.
Smart Summary (Beta)

Structured Summary of the Opinion

Factual and Procedural Background

The decree-holders obtained a decree in O.S. No. 91 of 1932 on 6 December 1932. In 1933 the decree was transferred for execution to the District Munsiff's Court, Nellore. Within two days of the period of limitation under Section 48 of the Code of Civil Procedure, the decree-holders filed Execution Petition No. 15 of 1945 in the District Court of Nellore (filed on 4 December 1944). In that petition they requested: (a) re-transfer of the decree from the District Munsiff's Court to the District Court; (b) issuance of notice to the judgment-debtors; and (c) attachment and sale of immovable properties.

On 1 August 1945 the District Judge dismissed the petition as incompetent, observing that while he could have ordered re-transfer of the decree, he could not treat the petition as a substantive execution application because the decree had been transferred and no certificate of non-satisfaction had been returned by the transferee Court.

Legal Issues Presented

  1. Whether the Court which passed a decree (the decreeing Court) can entertain a substantive execution petition when the decree has been transferred for execution to another Court and the transferee Court has not returned a certificate under Section 41 of the Code of Civil Procedure.
  2. Whether an application to the decreeing Court for re-transfer of a decree already transferred for execution constitutes a "step-in-aid" of execution that prevents limitation from running against the decree-holder.
  3. If the decreeing Court can entertain execution notwithstanding transfer, whether concurrent execution or other exceptional circumstances are required to permit that exercise of jurisdiction.

Arguments of the Parties

Appellants' Arguments (as presented by their counsel)

  • Even though the decree had been transferred to the District Munsiff and no certificate under Section 41 had been returned, the decree-holder could still present an execution petition to the Court which passed the decree.
  • The District Judge therefore was competent to entertain the petition and ought to have entertained it as a substantive execution petition.
  • Counsel relied on a number of Madras decisions (including Maharaja of Bobbili v. Narasaraju P. B. S. Bahadur, Subbarao v. Ankamma and Seeni Nadan v. Muthuswami Pillai) to support the proposition that an application to the decreeing Court for re-transfer is a step-in-aid of execution and prevents limitation from running against the decree-holder.

The opinion does not set out detailed counter-arguments from any opposing party; the District Judge's view is recorded in the order dismissing the petition as incompetent for substantive execution in the absence of the transferee Court's certificate.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Maharaja of Bobbili v. Narasaraju Peda Balaria Simhulu Bahadur (1916) 31 M.L.J. 300; L.R. 43 I.A. 238; I.L.R. 39 Mad. 640 (P.C.) (also cited 1912 23 M.L.J. 236 : I.L.R. 37 Mad. 231) Establishes that the Court to which a decree is sent for execution is the only Court with seisin of the execution proceedings and retains jurisdiction to execute the decree until it certifies under Section 41 to the decreeing Court the fact of execution or circumstances of failure to execute. The Court treated this proposition as well-settled and relied on it as a principal authority for holding that the decreeing Court could not execute the decree in the absence of the certificate from the transferee Court.
Subbarao v. Ankamma (1932) 63 M.L.J. 788 Supports the view that an application to the decreeing Court for re-transfer is a step-in-aid of execution and prevents limitation from running against the decree-holder. The Court cited it (along with other Madras cases) to accept that the first sentence of the District Judge — that an application for re-transfer is available and saves limitation — was correct.
Seeni Nadan v. Muthuswami Pillai (1919) 37 M.L.J. 284 : I.L.R. 42 Mad. 821 (F.B.) Also supports the principle that the decreeing Court may be applied to for re-transfer and that such an application is a step-in-aid of execution (thus preventing limitation). Used to support the conclusion that the District Judge's statement regarding the availability of re-transfer applications and their effect on limitation was correct.
Makkanlal v. Bhagwan Kuer (1936) A.L.J. 277 Holds that while execution against the same property cannot take place simultaneously in two Courts, there is no bar to execution in one Court against immovable property and in another Court by other means (i.e., by different modes of execution). The Court noted this case as initially appearing favorable to the appellants, but it did not adopt it as overriding the principle that the decreeing Court cannot execute once the decree is in the custody of another Court without the Section 41 certificate.
Fatechand Rampratap v. Jitmal Rupchand (1929) I.L.R. 53 Bom. 844 Single Judge decision holding that the Court which passed a decree retains jurisdiction to pass orders in execution proceedings notwithstanding that the decree has been transferred for execution to another Court (though the present Court reads this decision narrowly). The Court viewed the decision as narrower than its apparent statement and did not treat it as supporting the appellants' broad contention that the decreeing Court could entertain substantive execution in the absence of the transferee Court's certificate.
Kanti Narain v. Madan Gopal A.I.R. 1935 Lah. 465 (Full Bench) Considered whether an application to the transferring Court (a) to execute, (b) to transfer to another Court, or (c) to re-transfer, is valid without a certificate from the transferee Court; held such an application is a valid step-in-aid of execution and can be considered even without the certificate (majority). The Court described this Full Bench decision, noting the majority view that the transferring Court could consider applications for re-transfer without a certificate, but observed that the case's arguments mainly addressed the transfer issue rather than execution.
Rulia Ram v. Diwan Chand (1934) I.L.R. 16 Lah. 80 Holds that where a decree is transferred for execution without limitation, the original Court cannot execute the decree until the decree is returned by the transferee Court with a certificate of non-satisfaction. The present Court expressed preference for this authority (despite its non-acceptance by the majority of the Full Bench in Kanti Narain) and treated its proposition favorably in concluding the decreeing Court could not execute without the certificate.
Jatendrakumar v. Mahendrachandra (1933) I.L.R. 60 Cal. 1176 Expresses a view aligned with Rulia Ram that the decreeing Court lacks the power to execute until the certificate under Section 41 is received from the transferee Court, considering Maharaja of Bobbili. Cited to show consistent judicial statements in favour of the proposition that the transferee Court's certificate is the key to the decreeing Court's power to execute.
Abdul Hafiz Sahib v. Abdul Sukkur Sahib (1937) 2 M.L.J. 602 Varadacharia J. accepted that, viewing Sections 38, Order 21 Rule 10 and Section 42 together, in the absence of an express limitation in the transfer order the transferee Court enjoys the powers of execution and the decreeing Court is effectively deprived of power to execute until the transferee Court certifies under Section 41. The Court relied on this reasoning as supporting authority for the proposition that the decreeing Court cannot execute once the decree has been sent elsewhere without the Section 41 certificate; it was cited as reflecting a well-understood construction of the Code provisions.

Court's Reasoning and Analysis

The Court proceeded in two stages, distinguishing between (A) an application for re-transfer of the decree and (B) a substantive execution petition presented to the decreeing Court while the decree remains in the custody of another Court.

(A) Re-transfer applications and limitation

  • The Court agreed with the District Judge's first observation that an application to the Court which passed the decree for re-transfer of the decree (from the transferee Court) is a permissible step-in-aid of execution and, when properly treated as such, prevents limitation from running against the decree-holder. The Court cited multiple Madras decisions in support of this proposition.
  • Therefore, a re-transfer application is available and would have preserved limitation if the appellants had sought only an order for re-transfer with a view to presenting a subsequent execution petition after re-transfer.

(B) Substantive execution in face of transfer (central analysis)

  • The key legal principle relied upon is that where a decree is transferred for execution, the transferee Court acquires seisin of the execution proceedings and retains jurisdiction to execute the decree until it certifies under Section 41 to the decreeing Court the result of execution or the circumstances of failure to execute.
  • On this basis the Court held that the decreeing Court is, in general, divested of power to entertain substantive execution proceedings concerning that decree so long as the decree remains in the custody of the transferee Court and no certificate under Section 41 has been returned. The Court noted exceptions where concurrent execution had been ordered or proceedings in the transferee Court had been stayed, but those exceptions did not apply here.
  • The Court reviewed authorities that might at first sight favor the appellants (Makkanlal, Fatechand Rampratap and the Full Bench in Kanti Narain) but explained either that those authorities were distinguishable or that their reasoning was narrower than it appeared. In particular, the Court preferred Rulia Ram and decisions like Abdul Hafiz Sahib which support the limitation on the decreeing Court's power until the Section 41 certificate is received.
  • Applying these principles to the facts, the Court found the District Judge was correct in refusing to treat the petition as a substantive execution application because the decree was still in the custody of the District Munsiff's Court and no Section 41 certificate had been returned.

Holding and Implications

Core Holding: APPEAL DISMISSED. The Court upheld the District Judge's dismissal of Execution Petition No. 15 of 1945 as incompetent to be treated as a substantive execution petition in the absence of the transferee Court's certificate under Section 41 of the Code of Civil Procedure.

Implications and Consequences:

  • The appellants were correct that they could apply to the decreeing Court for re-transfer of the decree and that such an application is a step-in-aid of execution which would save limitation. The Court explicitly accepted this point.
  • However, because the appellants insisted on having their petition dealt with as a substantive execution petition (rather than accepting a mere order for re-transfer), they were rightly refused; as a result, they are completely out of time to present an execution petition under the limitation prescribed by the Code.
  • No order for re-transfer at this point would be of any practical use to the appellants because of the lapse of the limitation period.
  • The appeal is dismissed with costs. The opinion does not purport to lay down a new broad precedent beyond applying and preferring existing authorities that the transferee Court's certificate under Section 41 is necessary before the decreeing Court can execute a decree in the ordinary course.
Show all summary ...

1. This appeal arises out of an execution petition No. 15 of 1945, filed in the District Court of Nellore, in O.S. No. 91 of 1932. The decree-holders obtained their decree on 6th December, 1932, and in the course of subsequent execution proceedings it was, in 1933, transferred for execution to the District Munsiff's Court, Nellore. On 4th December, 1044, within two days of the period of limitation laid down by Section 48 of the Code of Civil Procedure, the execution petition now in question was filed, the decree-holders asking: (a) that the decree transmitted in 1933 to the District Munsiff's Court should be ordered to be re-transmitted to the-District Court; (b) for the issue of notice to the judgment-debtors and (c) for attachment and sale of their immoveable properties. On 1st August, 1945, the District Judge made the following order:

It is open to the applicant to treat this petition as a step-in-aid of execution and invoke its aid when he files the next execution petition. But he cannot ask me to treat this as a substantive execution, application when the decree has been transferred and there is no decree before me to execute and the copy of the decree with the non-satisfaction certificate has not been returned by the District Munsiff's. Court, Nellore. This petition is therefore incompetent and is hereby dismissed.

The District Judge is thus saying that while he would have made an order simpliciter for re-transfer of the decree, yet he could not allow a substantive execution application which E.P. No. 15 of 1945 was in form.

2. Counsel for the appellants has cited a number of cases in support of his contention that although a decree may have been transferred for execution to another Court, the decree-holder nevertheless can always present an execution petition to the Court which passed the decree. He contends therefore that despite the fact that the decree in the present case had been transferred to the District Munsiff and was still in his Court and that no certificate had been returned in accordance with Section 41 of the Code of Civil Procedure, yet the District Judge was competent to entertain it and ought to have entertained it in the fullest possible way as an execution petition.

3. He has cited a number of cases in Madras, viz., Maharaja of Bobbili v. Narasaraju Peda Balaria Simhulu Bahadur (1916) 31 M.L.J. 300 : L.R. 43 I.A. 238 : I.L.R. 39 Mad. 640 (P.C.), Subbarao v. Ankamma (1932) 63 M.L.J. 788 and Seeni Nadan v. Muthuswami Pillai (1919) 37 M.L.J. 284 : I.L.R. 42 Mad. 821 (F.B.) which support the view, which indeed we think to be well settled, that an application may always be made to the Court which passed the decree for an order re-transferring it if it has been transferred elsewhere and that such an application is a step-in-aid of execution and prevents limitation running against the decree-holder. The first sentence therefore of the District Judge is correct.

4. The further question whether the District Court can execute the decree although the decree is in fact in the custody of another Court for execution, is not however to be answered in the appellant's favour upon the cases which have been cited to us. Three cases may be mentioned at once which at first sight are somewhat in favour of the appellant's contention. The first is Makkanlal v. Bhagwan Kuer (1936) A.L.J. 277. There a decree had been transferred for execution against certain property to a Court other than the Court which passed the decree and the property was attached in that other Court. Nevertheless, the decree-holder applied to the decreeing Court for execution by arrest of the judgment-debtor. It was held that while the law was well settled that execution against the same property cannot take place in two Courts at one and the same time, there is, however, no bar to execution in one Court against the immoveable property and in another Court by other means. In Fatechand Rampratap v. Jitmal Rupchand (1929) I.L.R. 53 Bom. 844, a single Judge held that the Court which passes a decree has jurisdiction to pass orders in execution proceedings notwithstanding that the decree has been transferred for execution to another Court. An analysis of the learned Judge's reasoning however leads one to the view that the proposition which he intends to lay down is not quite as wide as expressed above and that his decision goes no further than saying that because a decreeing Court has made an order of transfer it has not thereby deprived itself entirely of jurisdiction in respect of the decree which it has itself passed. Reliance was placed on Kanti Narain v. Madan Gopal A.I.R. 1935 Lah. 465 (F.B.), a Full Bench case, in which the material question which was asked was

" when a money decree has been transferred by the Court which passed it for execution to another Court, is an application to the first Court (a) to execute the decree, (b) to transfer it to another Court for execution and (c) to transfer it for execution to the same Court, not a valid application unless the proceedings taken in the other Court have first been reported and certified by that Court? "
In a lengthy judgment it was decided that it was a valid application and was a step-in-aid of execution so as to save limitation. By a majority it was held that even without a certificate by the Court to which the decree has been transferred, nevertheless the transferring Court could consider an application for re-transfer and could presumably therefore grant the application which in this particular case had been made to it. It is, however, quite clear from the judgment in this case that not until the end of the arguments did it become known to the Court that the application which it was considering was an application not only for re-transfer but also for execution. It appears to us, reading the judgment, that the arguments were based mainly on the application for transfer, and were in the main directed to the question whether or not, as such, it was a step-in-aid of execution.

5. An earlier case in the same High Court Rulia Ram v. Diwan Chand (1934) I.L.R. 16 Lah. 80 which appears to deal directly with the point now before us, was not accepted by the majority of the Full Bench, but it seems to us, with great respect, to be preferable. In this case, it was held that, Where a decree is transferred for execution, the original Court is not wholly divested of its jurisdiction but can still re-transfer the proceedings to itself or to some other Court. Where, however, a decree is transferred for execution without any limitation, the original Ccurt has no longer the power to execute the decree until and unless the decree is returned by the transferee Court with a certificate of non-satisfaction.

Reference is made in the judgment to Jatendrakumar v. Mahendrachandra (1933) I.LR. 60 Cal. 1176 where the same view was expressed after considering the Privy Council decision in Maharaja of Bobbili v. Narasaraju Peda Balaria Simhulu Bahadur (1916) 31 M.L.J. 300 : L.R. 43 I.A. 238 : I.L.R. 39 Mad. 640 (P.C.). In Maharaja of Bobbili v. Narasaraju Peda Balaria Simhulu Bahadur (1912) 23 M L.J. 236 : I.L.R. 37 Mad. 231, it was held that:

A Court to which a decree is sent for execution is the only Court which has seisin of the execution proceedings, and it retains its jurisdiction to execute the decree till it certifies under Section 41 of the Civil Procedure Code, to the Court which passed the decree, the fact of execution, or if it fails to execute the decree, the circumstances attending such failure. In such a case the Court which passed the decree has no jurisdiction to entertain an execution application unless concurrent execution had been ordered or proceedings in the Court to which the decree was sent, had been stayed for the purpose of executing the decree in the former Court, This case has been widely discussed on many occasions, and not least, in the Privy Council to which it went on appeal: Maharaja of Bobbili v. Narasaraju Peda Balaria Simhulu Bahadur (1916) 31 M.L.J. 300 : L.R. 43 I.A. 238 : I.L.R. 39 Mad. 640 (P.C.). However it may have been shaken in other respects, in our opinion, on this particular point it was not overruled, and the proposition quoted above may be taken to be well-settled law in this Court.

6. In Abdul Hafiz Sahib v. Abdul Sukkur Sahib (1937) 2 M.L.J. 602, for example, Varadacharia J., accepts the proposition as being perfectly clear and well understood (sic) says at page 604 after referring to the provisions applicable in the Code:

Taking these three provisions (viz., Section 38, Order 21, Rule 10, and Section 42, Civil Procedure Code) together, it seems to me that their natural effect is that, unless in the order of transfer there is any express limitation of the purpose for which the transfer is made--assuming that such limitation, if any, can control the provisions of the Code as to jurisdiction--there is no reason to limit the powers of the Court to which a decree has been transferred for execution. Indeed it is possible to construe the observations of the Judicial Committee in Maharaja of Bobbili v. Narasaraju Peda Balaria Simhulu Bahadur (1916) 31 M.L.J. 300 : L.R. 43 I.A. 238 : I.L.R. 39 Mad. 640 (P.C.), as depriving the original Court of jurisdiction to execute its decree once the decree has been sent to another Court for execution till the certificate under Section 41 is received from the transferee Court.

This view, moreover, is supported not only in the Calcutta and Patna High Courts but also in many decisions of the Bombay High Court.

7. In the result we hold that the learned District Judge was right in saying that he has no power to execute this decree in the absence of a certificate from the Court to which it has been transferred. If the appellants had been satisfied with an order for re-transfer intending, on the re-transfer of the decree, to present an execution petition, they would have been in order. They insisted, however, on having their petition dealt with as a substantive execution petition and so rightly failed. In the circumstances of this particular case the result is that the appellants are completely out of time for presenting an execution petition, because of the limit prescribed by the Code and no order in their favour now for re-transfer of the decree would be of any use to them.

8. The appeal is therefore dismissed with costs.