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Ratikanta Padhi And Others v. Ramesh Chandra Mohanty And Others
Case Summary — Execution of Mortgage Decree: Limitation Issue
Factual and Procedural Background
The decree-holder (appellant) sought execution of a mortgage decree originally decreed against a father, Chintamani, and his four sons. A preliminary decree was passed on 4-1-39. Before the final decree was obtained (20-4-40), the father had died and one son, Radha Charan, had also died on 1-4-40; the decree-holder was apparently unaware of Radha Charan's death and obtained the final decree against all four sons including the deceased.
Execution Case No. 314/40 was filed on the footing of the final decree. Radha Charan's son, Harish Chandra, intervened under Section 47 CPC, objecting that the final decree against his deceased father was not binding on him. The learned Munsif allowed that objection in Misc. Case No. 98/41 (15-9-41), directing execution to proceed only against the interests of the other three sons and not against the interest of the deceased Radha Charan.
The decree-holder applied for amendment of the final decree to include Harish Chandra but later (26-11-41) filed a review application withdrawing the amendment application. The Munsif held the review application barred by limitation and dismissed it on 23-11-42. The District Judge reversed that view, treating the application as one for amendment (a revised final decree) and allowed appeal, directing a fresh final decree to include Harish Chandra; that final decree was passed on 7-3-45. A revision (C.R. 192 of 1945) to the High Court restored the Munsif's decision (20-1-47), rejecting the review/application to implead Harish Chandra.
In the interregnum there were two execution proceedings: E.C. 314/40 (struck off 26-10-41 after Munsif's order) and E.C. 144/46 (filed after the District Judge's order, stayed by the High Court on 27-7-46 and struck off on 19-11-47 after the High Court decision). The present execution petition (Execution Case No. 37 of 1948) was filed on 3-2-48 seeking execution against the interests of the three brothers. The central procedural dispute is whether that application is time-barred.
Legal Issues Presented
- Whether the execution application filed on 3-2-48 (Execution Case No. 37 of 1948) is barred by limitation.
- Whether the disposal of the decree-holder's review/application by the High Court (restoring the Munsif's order) furnishes a fresh starting point for limitation under Article 182, Clause 3 of the Limitation Act.
- Whether the period during which the decree-holder's applications to implead Harish Chandra (from 26-11-41 to 20-1-47, as argued by the decree-holder) should be excluded for the purposes of computing limitation for execution.
Arguments of the Parties
Judgment-Debtor's Arguments
- Execution Case No. 144/46 was filed five years after the disposal of Execution Case No. 314/40; therefore it was beyond time.
- Since E.C. 144/46 was time-barred, the subsequent Execution Case No. 37 of 1948 (filed on 3-2-48) is also beyond time.
- Both courts below accepted this contention and held the execution to be time-barred.
Decree-Holder's (Judgment-Creditor's) Arguments
- The proceedings by the decree-holder to get Harish Chandra impleaded were pending from 26-11-41 up to 20-1-47, and that whole period should be excluded in computing limitation.
- The limitation for execution should commence from 20-1-47 (the date of the High Court's order in C.R. 192 of 1945), and measured from that date the present execution application (3-2-48) is within time.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Mahomed Naqir v. Alauddin Ahmad, AIR 1941 Pat 213 | Authority relied on by the courts below for the proposition that Article 182, Cl. 3 applies only where a review has been granted and not where it has been rejected. | The lower courts relied on this decision to reject the view that the High Court's disposal could furnish a fresh starting point for limitation. The present Court examined and distinguished the factual matrix and subsequent authority. |
| Bengali Mal v. Baijnath Prasad, AIR 1942 All 338 | Holds that "granting of the review" means that a rehearing has been granted; it clarified that rehearing granted is what triggers Article 182, Cl. 3 even if on rehearing the original decree is affirmed. | The Court relied on this later decision to conclude that where a rehearing was in substance granted (even if ultimately the original decision was affirmed), the date of the appellate disposal (High Court) furnishes a fresh starting point for limitation. |
| Barju Biswal v. Kunja Behari Mahapatra, AIR 1931 Pat 353 | Where a sole defendant dies after the preliminary decree but before final decree, the rule compelling impleading of all persons interested in the equity of redemption applies at the stage of final decree; an order declaring abatement and refusing final decree is itself a decree and appealable. | Ray, C.J. relied on this Bench decision to treat the decree-holder's application to substitute legal representatives (to obtain a final decree against all mortgagors) as an application for passing the final decree; this supported the view that appellate proceedings and the High Court order are relevant for limitation computation. |
| Nagendra Nath v. Suresh Chandra, 59 Ind App 283 (AIR 1932 PC 165) | Privy Council observation that any application to an Appellate Court to set aside or revise a subordinate court's decision is an "appeal" within Article 182(3)(a), even if irregular or incompetent. | The Court used this authority (and its follow-up Madras decision) to hold that even an irregular or incompetent appellate application counts as an appeal for the purposes of Article 182 Cl.3, and thus the date of the High Court's order is the date from which limitation runs. |
| P.P.P. Chidambara Nadar v. C.P.A. Rama Nadar, AIR 1937 Mad 385 (Full Bench) | Followed the Privy Council's view that procedures invoked before an appellate court to revise subordinate court orders are to be treated as appeals under Article 182(3)(a), regardless of irregularity or incompetence. | The Court relied on this decision to reinforce the proposition that the High Court's disposal constitutes the operative date for commencement of limitation where appellate/revisional proceedings have been invoked. |
Court's Reasoning and Analysis
The Court reviewed the factual and procedural history and found that the lower courts had taken a narrow view. Their error was to assume there was no impediment to executing the decree against the three brothers during the pendency of the decree-holder's proceedings to implead Harish Chandra. The majority reasoned as follows:
- Nature of the decree and risk of partial execution: The decree was a joint mortgage decree. If execution proceeded only against the three brothers while the decree-holder simultaneously sought to implead Harish Chandra and ultimately succeeded, there would be a potential objection to splitting the decree and to partial execution against some but not all judgment-debtors. Consequently, it was reasonable for the decree-holder to refrain from pressing partial execution until the position as to the liable judgment-debtors was clarified.
- Construction of Article 182, Clause 3 (Limitation Act): The Court examined the construction of Article 182 Cl.3 and the authorities relied upon by the lower courts. It acknowledged that Article 182(3) had been construed by some authorities as applicable only where a review had been granted and not where rejected. However, the Court relied on the later decision in AIR 1942 All 338 to read "granting of the review" to mean that a rehearing has been granted; this includes cases where rehearing was in substance granted though the original decree was ultimately affirmed on rehearing.
- Characterisation of the proceedings as a rehearing: Looking at all proceedings together (Munsif's decision refusing execution against Radha Charan's interest; the decree-holder's review/application to implead Harish Chandra; the District Judge's contrary view; and the High Court's final restoration of the Munsif), the Court found that the process amounted to a rehearing being granted in substance. The Munsif had considered the matter; the District Judge enterted a different conclusion; and the matter went to the High Court which examined the merits and affirmed the Munsif. Thus the High Court's disposal on 23-11-47 was the final decision on that rehearing process.
- Effect on limitation: Applying Article 182 Cl.3 with the understanding that a rehearing had been granted, the Court held that the date of the High Court's disposal constitutes a fresh starting point for limitation. The High Court's order dated 23-11-47 restarted the limitation clock, and the execution application filed on 3-2-48 therefore fell within time.
- Rejection of the lower courts' approach: The Court concluded the lower courts had erred in not appreciating the potential bar to partial execution and in failing to treat the appellate/revisional proceedings as having effectively granted a rehearing for the purposes of Article 182 Cl.3.
Ray, C.J., concurred in the result but advanced a different line of reasoning: he treated the decree-holder's application to substitute legal representatives (or to set aside abatement and obtain a final decree) as an application for passing the final decree and relied on Barju Biswal to show the stage at which impleading must occur. He further relied on Privy Council and Madras Full Bench authorities to show that an application to an appellate court to revise a subordinate court order must be treated as an "appeal" for Article 182(3)(a) purposes, even if irregular or incompetent; thus the date of the High Court order counts for limitation. He reached the same conclusion — the appeal should be allowed.
Holding and Implications
APPEAL ALLOWED — the view taken by the courts below is set aside and the appeal is allowed with costs throughout.
Implications:
- The Court held that the High Court's disposal of the decree-holder's application (which, taken with the preceding proceedings, amounted to a rehearing) furnished a fresh starting point for limitation under Article 182, Clause 3 of the Limitation Act. Measured from that date (23-11-47), the execution petition filed on 3-2-48 was within time.
- The direct effect is that the decree-holder's execution application (Execution Case No. 37 of 1948) is not time-barred and the appeal succeeds; the orders of the lower courts holding the execution barred by limitation are set aside.
- This decision resolves the parties' dispute over the computation of limitation in the circumstances described, but the opinion does not state that it establishes a broader new precedent beyond its application to the facts of this case.
This summary is prepared exclusively from the text of the provided opinion; no information outside that text has been added.
1. This appeal arises in execution of a mortgage decree and raises a question of limitation. The facts are as follows; The decree-holder is the appellant. The preliminary decree was passed on 4-1-39 against a father and his four sons. By the date of the final decree, the father Chintamani died and one of the sons, Radha Charan also died. The decree-holder apparently was not aware of the latter's death. He obtained the final decree on 20-4-40, against the four sons, including the deceased Radha Charan who had died a few days prior thereto on 1-4-40. Thereafter the decree-holder applied in Execution Case No. 314/40 to execute the decree. Radha Charan's son, Harish Chandra intervened by an application under Section 47 of the CPC in which he raised the objection that the final decree which was passed against his deceased father was not binding on him. The learned Munsif heard the objection in Misc. Case No. 98/41 and allowed it. He directed the execution to proceed only against the interests of the other three sons of Chintamani and not against the interest of Radha Charan, the father of Harish Chandra. The decree-holder thereupon filed an application for amendment of the final decree for the purpose of including the name of Harish Chandra as one of the judgment-debtors. But later on 26-11-41, he filed an application for review and withdrew the application for amendment. This application for review was heard by the learned Munsif, who while holding the review to be competent dismissed it on 23-11-42 on the ground that it was barred by limitation, since it was filed after 90 days from the date of appellant's knowledge of Radha Charan's death. Against that decision of the Munsif, an appeal was taken to the learned District Judge who held that, in substance, the application was one for amendment and that the learned Munsif erred in thinking that the limitation of 90 days from the date of the knowledge of the death of Radha Charan applies to the facts of this case. He was of the opinion that the decree-holder had three years from the date of the preliminary decree for taking the necessary steps since this was really an application for the passing of a revised final decree as against Harish Chandra also. He accordingly allowed the appeal and directed the passing of the fresh final decree showing the applicant Harish Chandra also as a judgment-debtor. As against that appellate decision of the learned District Judge, a revision was taken to the High Court which was numbered as C.R 192 of 1945. On appeal, the learned Judge of the Circuit Court, differed from the view taken by the learned District Judge and restored the decision of the Munsif thereby rejecting the review application. This was on 20-1-47. Thereafter the present execution petition was filed on 3-2-48 praying for execution of the decree against the interests of the three other brothers in the mortgage-decree. The question is whether this application is beyond time.
2. It is now necessary to state the history of the execution applications between the date of the final decree which was passed on 24-4-40 and the date of the present execution petition which was filed on 3-2-48. In between these dates there were two execution applications, viz., E.C 314/40 and E.C 144/46. Execution Case No. 314/40 was filed on the footing of the final decree as originally passed. That execution application appears to have been struck off on 26-10-41 after the decision of the Munsif dated 15-9-41, wherein he held that the interests of Radha Charan could not be sold in execution of the decree. Again, after the learned District Judge passed his order directing the passing of the fresh final decree and after the final decree in pursuance of that order of the District Judge was passed on 7-3-45, the decree-holder applied in Execution Case No. 144/46 for execution on the footing of the fresh final decree so passed. That execution was stayed by an order of the High Court dated 27-7-46 but was ultimately struck off on 19-11-47 after the decision of the High Court.
3. The contention of the judgment-debtor is that the 2nd Execution Case No. 144/46 was filed five years after the disposal of the Execution Case No. 314/40 and that therefore it was beyond time and that accordingly the present Execution Case No. 37 of 1948 filed on 3-2-48 is also beyond time. The judgment-creditor contended that since the proceedings taken by him for getting impleaded Harish Chandra, the son of deceased Radha Charan against whom the final decree was wrongly obtained were pending from 26-11-41 upto 20-1-1947, the whole of that period is to be excluded and also that the limitation for execution commences on 20-1-47 the date of the High Court's order in C.R 192 of 1945, and that on that view the present execution application is in time.
4. Both the Courts below have accepted the judgment-debtor's contention and rejected the dearer-holder's plea. They held that the execution was time-barred and hence the present appeal to this court.
5. It appears to us that both the courts below have taken an unduly narrow view of the position between the parties as it emerges from these various proceedings. The Courts below acted on the view that there was no impediment to the execution of the decree as against the other three judgment-debtors during the pendency of the proceedings taken by way of application for review in order to get the name of Harish Chandra included as a party-judgment-debtor. It does not appear to us that this is a correct view to take. The decree is a joint mortgage-decree against, the father and his sons. If in pursuance of the order of the Munsif dated 15-9-41 holding that the execution should proceed only as against the three brothers, he proceeded to execute and if he simultaneously pursued his trials to get Harish Chandra also impleaded and ultimately he succeeded in persuading the Court to implead Harish Chandra also as a judgment-debtor, the continuance of the execution as against these three brothers alone might conceivably be a bar for execution as against Harish Chandra. If he succeeds in getting him impleaded, it is difficult to say that there would be no objection by way of splitting up of the decree and of the non-maintainability of partial execution against different judgment-debtors.
6. Whether this objection would be ultimately tenable or not, it appears to us to be quite clear that no decree-holder can be expected to take the risk involved in proceeding with partial execution and he cannot be said to be wanting in diligence if he waited for clarification of the position as regards the judgment-debtors against whom he may proceed before he can safely continue to proceed against them, all. But apart from the merits of this aspect, which have very much weighed with the Courts below, it appears to me that on the wording of Article 182, Cl. 3, Limitation Act, the date of the disposal by the High Court on the application made by the decree-holder to the Munsif furnishes a fresh starting point for limitation. The courts below relying on the decision in — ‘Mahomed Naqir v. Alauddin Ahmad.’, AIR 1941 Pat 213 and — ‘Bengali Mal v. Baijnath Prasad’, AIR 1942 All 338, have held that since in the present case the review? application was finally rejected by the High Court, the date of the High Court's order cannot furnish a fresh starting point for limitation. It is true that Article 182, Cl. 3 of the Limitation Act has been construed as applicable only to cases where a review has been granted and not where it has been rejected. But the later decision in AIR 1942 All 338 which follows the decision in AIR 1941 Pat 213 clearly shows that what is meant by granting of the review is not that the decree, as originally passed, should be modified or reversed, but that a rehearing should have been granted. It makes no difference to the application of this principle that on rehearing the original decree was affirmed without variation.
7. The question, therefore, that has to be decided in the present case, is whether taking all the proceedings in the present case and looking at the matter broadly, this is not a case where a rehearing was granted though ultimately the original order was affirmed. Now looking at the proceedings from that point of view what has happened in the present case is this. The final decree was in the first instance passed against four persons of whom one died at the time, the decree-holder not having been aware of the fact of his death. This objection was brought to the notice by the son of the deceased person when the decree was put under execution. On the objection raised by his son, the learned Munsif decided that the execution cannot proceed against him.
8. Thereupon, the decree-holder applied for review of the final decree by praying that the name of the son of the deceased judgment-debtor should also be incorporated as a party-judgment-debtor. This review application was heard by the learned Munsif, but he refused to modify the decree by granting the prayer for insertion of the name of D-1 on the ground that the application was barred by limitation. That was a question that has been decided on the merits and it may be presumed that there the rehearing was granted but that the application was rejected on the merits. On appeal, which may or may not be competent, the learned District Judge came to a different conclusion. On revision therefrom, the High Court not only held that the appeal was incompetent, but also went into the merits and held that the review was rightly rejected by the learned Munsif. Therefore, taking all the proceedings before the Courts together, it is quite clear that this was a case in which a review was granted in the sense that a rehearing was granted, but the High Court ultimately agreed with the view of the Munsif on its merits. On that view, the review which was granted was finally decided on 23-11-47 and hence the limitation under Article 182 Cl. 3 starts on that date. Hence the present execution case filed on 3-2-48 was quite within time.
9. The view taken by the courts below must be set aside and the appeal must accordingly be allowed with costs throughout.
Ray, C.J:— Apart from my accord with the reasons given by my learned brother, I have a different line of approach, pursuing which, I arrive at the same result.
10. I hold that the application by the decree-holder for substitution of legal representatives of Radha Charan after setting aside the abatement of the suit against them is an application for passing the final decree. In this, connection, I rely on a Bench decision of the Patna High Court in the case of — ‘Barju Biswal v. Kunja Behari Mahapatra*’, in AIR 1931 Pat 353, their Lordships Wort and Mohammad Noor, JJ., “held that, where the sole defendant dies after the preliminary decree, but before the application for final decree, and his legal representative is not brought on record in time, an order declaring the suit to have abated and refusing to pass a final decree is a decree and is appealable as such and reference under O. 46, R. 1 is not competent. The compelling rule that all persons interested in the equity of redemption shall be impleaded as party defendants applies to the stage of final decree in a mortgage suit.
11. In this particular case, the executing court had come to a finding that the suit had abated as against Radha Charan and his heirs and therefore there had been no decree passed against them. In fact, the decree-holder was left in the same position in which he should have been, had he applied for a final decree, without impleading all the mortgagors. Therefore, the attempt that was made by the plaintiff-decree-holder to implead the legal representatives of the deceased Radha Charan, one of the mortgagor-judgment-debtors was to get a valid final decree against all. Appeal lay to the learned District Judge as against that order in which the learned Munsif dismissed the petition and it was a competent appeal. As against the said appeal, the defendant preferred a Civil Revision to the High Court which was disposed of by Beevor, J. The learned Judge reversed the order of the District Judge and restored that of the Munsif dismissing the plaintiff's application for impleading Radha Charan's legal representative and in fact restored and thus brought into existence a final decree for sale against some of the judgment-debtors of a part of the mortgaged property.
12. It is beside the point, whether Beevor, J. had jurisdiction to dispose of the matter before him as a Civil Revision; even though it is incompetent, still the date that counts for purpose of starting the period of limitation is the date of the order of the High Court. So is the case with the appeal to the District Judge as to its competency or otherwise. In the case of — ‘Nagendra Nath v. Suresh Chandra’, in 59 Ind App 283, corresponding to AIR 1932 PC 165, which was followed by a Full Bench decision of the Madras High Court in the case of — ‘P.P.P. Chidambara Nadar v. C.P.A. Rama Nadar’, reported in AIR 1937 Mad 385 (FB), it was observed by their Lordships of the Privy Council that
“any application by a party to an Appellate Court to set aside or revise a decree or, order of a court subordinate thereto is an “appeal” within the meaning of the above provision (Article 182, Cl. 3(a)), even though (a) it is irregular or incompetent, or (b) the persons affected by the application to execute were not parties or (c) it did not imperil the whole decree or order.”
13. Then ??? observed
“there is no definition of “appeal” in the Code of Civil Procedure, but their Lordships had no doubt that any application by a party to an appellate court asking it to set aside or revise a decision of a subordinate court, is an appeal within the ordinary acceptance of the term, and it is no less an appeal because it is irregular or incompetent.”
14. With these observations, I agree that the appeal should be allowed with costs throughout.
B/D.R.R
15. Appeal allowed.
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