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Bhagabat Sit v. Balaram Sit
Structured Summary of the Opinion — Civil Revision concerning Redemption of Mortgage
Factual and Procedural Background
Plaintiff (Opposite Party) filed Original Suit No. 278 of 1944 in the Court of the Munsif, Balasore, for redemption of a mortgage by conditional sale dated 27th July 1934. The Munsif decreed the suit on 25th August 1946. The mortgage dues were deposited on 22nd September 1945. The Munsif's decree was ultimately confirmed by the High Court in Second Appeal No. 342 of 1947 on 30th July 1951, and the High Court allowed six months' time for redemption from the date of that judgment.
The plaintiff filed an application to make the decree final on 14th March 1957. The learned Munsif dismissed that application on 20th January 1959, holding the application barred by limitation under Article 181 of the Limitation Act and that Section 5 of the Limitation Act had no application. On appeal the Additional Subordinate Judge (learned lower appellate Court) reversed the Munsif, holding that Section 5 of the Limitation Act applied and allowed the petition to make the decree final to proceed, but without himself passing a final decree; he remanded proceedings with a decretal order dated 8th March 1961 that the plaintiff's petition to make the decree final is allowed and that final decree proceedings shall proceed thereafter from the stage where the lower Court rejected the plaintiff's application.
The defendant (petitioner) filed the present Civil Revision against the appellate order dated 8th March 1961.
Legal Issues Presented
- Whether the order of the learned Munsif dated 20th January 1959, which dismissed the application to make the decree final as barred by limitation, amounted to a "decree" within Section 2(2) of the Code of Civil Procedure and was therefore appealable.
- Whether Section 5 of the Limitation Act applies to an application for making a decree final under Order 34, Rule 8 of the CPC (i.e., whether the application could be admitted after the period of limitation).
- Whether the appeal before the lower appellate Court was competent (i.e., whether the lower appellate Court had jurisdiction to reverse the Munsif's order given the character of that order and the necessity of a formal decree).
- Whether the Civil Revision filed by the defendant (petitioner) is maintainable in the circumstances.
Arguments of the Parties
Petitioner's Arguments (Mr. R.K. Mohapatra)
- The order of the learned Munsif dated 20th January 1959 is not a decree but an order under Order 34, Rule 8 of the CPC and therefore is not appealable under Order 43 CPC; consequently the lower appellate Court illegally exercised jurisdiction it did not have.
- Section 5 of the Limitation Act does not apply to an application to make the decree final; the application for final decree—having not been filed within three years of the deposit—is barred by limitation under Article 181 of the Limitation Act.
Opposite Party's Arguments (Mr. A.B. Roy)
- Preliminary objection: a Civil Revision does not lie because the decree of the lower appellate Court dated 8th March 1961 is appealable and a second appeal lies; therefore the appropriate remedy was appeal, not revision.
- Implicitly, reliance on grounds that Section 5 might make the applicant's delay excusable so that the application to make the decree final was not barred (this is reflected in the appellate Court's approach as described in the opinion).
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| AIR 1924 Bom 33, Vamanacharya v. Govinda | Support for the proposition that a judgment which determines rights should receive formal expression as a decree. | Cited to support the view that the Munsif's judgment comes within the definition of "decree" and that a formal decree should have been drawn up in accordance with the judgment. |
| AIR 1943 Nag 204, Baliram v. Manohar | Support for the necessity of formal expression of judgment as a decree. | Used alongside AIR 1924 Bom 33 to support the conclusion that a judgment amounting to a decree requires formal drawing up. |
| AIR 1917 Mad 285, Suppu Nayakan v. Perumal Chetty | Observation that abatement or orders with force of a decree are closely connected and suggestion that a rule might require drawing a decree where suits abate without formal order. | The court cites an observation in this case to show that commentary exists suggesting a decree should be formally drawn up, but notes the observation is not a clear pronouncement that appeal lies without a formal decree. |
| AIR 1919 Mad 709, Subbalakshmi v. Ramalinga | Instance where a decree was actually drawn up following judgment. | Referred to illustrate that in at least some decisions a formal decree was drawn up; does not establish the proposition that an appeal lies absent a decree. |
| 5 Pat LJ 342, Ganganand Singh v. Pirthi Chand | Referenced in argument concerning appealability of judgment vs decree. | The court notes this decision does not lay down the proposition that an appeal can be entertained without a formal decree. |
| AIR 1934 Pat 97 | Cited regarding the competency/maintainability of revision in certain circumstances. | Cited for the proposition that revision can be competent where appeal is not the appropriate remedy; supports maintainability of the Civil Revision in this case. |
| Dhup Pandey v. Narbadeshwar Prasad (citation as in text) | Cited regarding competency of revision. | Used as supporting authority for the proposition that revision is maintainable in the present circumstances. |
| AIR 1942 Mad 73, Panthanam v. Abdul Rahiman | Cited regarding competency of revision/appeal issues. | Again cited to support the conclusion that Civil Revision was maintainable. |
| AIR 1946 Mad 38, Angammal v. Muhammad Sulaiman | Principle that period of limitation for a mortgagee to apply for a final decree is three years from the date of deposit. | Described as "directly in point" and relied upon by the court to hold that the application for final decree is time-barred where deposit was on 22nd September 1945. |
| AIR 1957 Mad 189, M. Subramaniam Chettiar v. Muthiah Pillai | Same principle as Angammal: three-year limitation rule for application for final decree from date of deposit. | Cited as directly in point and relied on to conclude the application for making the decree final filed in 1957 was barred by limitation. |
Court's Reasoning and Analysis
The court proceeds in a structured sequence. It begins by examining definitions in the Code of Civil Procedure: "judgment" (Section 2(9)) is the statement of grounds for a decree or order, and "decree" (Section 2(2)) is the formal expression of an adjudication which conclusively determines the rights of the parties in whole or in part.
Applying those definitions to the Munsif's order dated 20th January 1959, the court finds two legal requirements for a 'decree': (1) an adjudication that conclusively determines rights in controversy, and (2) formal expression of that adjudication by drawing up a decree. The court holds that the Munsif's order satisfied the first requirement — it conclusively determined that the plaintiff could not obtain a final decree for redemption — but did not satisfy the second requirement because no formal decree was drawn up.
The court emphasizes that, under Section 96 CPC, ordinarily an appeal lies from a decree and not from a mere judgment; until a decree is formally drawn up in terms of the judgment, there can be neither appeal nor execution. The court refers to Section 33 CPC and Order 20, Rule 6 regarding the necessity for a decree to follow judgment and to agree with it.
The court considers a High Court General Rule (Rule 12, Chapter V, Part I) that in certain suits for money including suits upon mortgage, decrees need not be drawn up in specified situations. The parties dispute the scope of that rule: whether it encompasses redemption suits. The court accepts the petitioner's submission that suits for redemption are not suits for money and therefore the rule does not apply to relieve the trial Court of the duty to draw a formal decree in this redemption suit.
The court reviews authorities cited by the opposite party that suggest a judgment with the force of a decree might be treated as appealable even if a formal decree is not drawn. The court finds those authorities do not clearly support the proposition that an appeal can be entertained in the absence of a formal decree and declines to follow that view where suggested.
The court then scrutinizes the appellate order of the Additional Subordinate Judge. Although a formal decree had been drawn at the appellate level, the appellate Court's order did not itself finally and conclusively determine the rights of the parties because it remanded the matter to the trial Court to proceed with final decree proceedings; the lis remained pending. Therefore, the appellate order did not amount to an appealable decree or order, and consequently no appeal lay from it. On this basis the court holds the Civil Revision is maintainable.
Turning to limitation, the court examines Section 5 of the Limitation Act and concludes it has not been made applicable to applications under Order 34 (and therefore has no application here). The court states that under Order 34 the mortgagor may deposit amounts in Court (sub-rule (1) of Rule 7) before a final decree is passed and that the period of limitation for the mortgagee to apply for a final decree is three years from the date of the deposit under Article 181 of the Limitation Act. The court relies on AIR 1946 Mad 38 (Angammal) and AIR 1957 Mad 189 (M. Subramaniam Chettiar) as directly in point for this principle.
Applying that rule to the facts — the deposit having been made on 22nd September 1945 and the application to make the decree final filed on 14th March 1957 — the court finds the application is barred by limitation. Because the application is time-barred, the court reasons there is no useful purpose in directing the Munsif to draw up a formal decree merely to give the plaintiff an opportunity to appeal.
The court summarizes its conclusions:
- The appeal before the lower appellate Court was not competent as no formal decree had been drawn up in accordance with the Munsif's order;
- The Civil Revision is competent (maintainable); and
- The application for final decree is barred by limitation, so remanding for drawing a decree would serve no useful purpose.
Holding and Implications
Holding: The court allowed the Civil Revision, set aside the judgment and decree of the learned Additional Subordinate Judge, and restored the judgment of the learned Munsif.
Implications:
- Direct effect on the parties: The appellate Court's reversal is set aside; the Munsif's judgment (which had held the application for making the decree final barred by limitation) is restored.
- The court found the application to make the decree final was barred by limitation (deposit on 22nd September 1945; three-year period under Article 181 applied), so the plaintiff cannot obtain a final decree for redemption on the basis of the delayed application.
- The opinion does not purport to lay down any new, broader precedent beyond applying established principles on appealability, the necessity of drawing a formal decree, and the limitation period applicable to applications to make a decree final in mortgage/redemption contexts. The decision's immediate consequence is to terminate the plaintiff's attempt to secure a final decree as time-barred and to validate the maintainability of revision in these circumstances.
Costs: The opinion directs that parties are to bear their own costs throughout.
LF/D.H.Z
1. Defendant is the petitioner. The facts leading to the Civil Revision are as follows:
2. Plaintiff-Opposite Party filed Original suit No. 278 of 1944 in the Court of the Munsif, Balasore for redemption of the mortgage by conditional sale D/- 27th July 1934 and the suit was decreed on 25th August 1946. The mortgage dues, payable by the mortgagor to the mortgagee, were deposited on 22nd September 1945. The decree of the learned Munsif was ultimately confirmed by the High Court in second appeal No. 342 of 1947 on 30th July 1951, and the High Court allowed six months' time for redemption from the date of the judgment. Plaintiff filed an application for mating the decree final on 14th March 1957. The learned Munsif dismissed this application on 20th January 1959 holding that the application was barred by limitation under Article 181 of the Limitation Act as the decree-holder-mortgagor failed to apply within three years of the deposit and that Section 5 of the Limitation Act had no application to this case. On appeal the learned Additional Subordinate Judge, Balasore, reversed the judgment of the learned Munsif holding that Section 5 of the Limitation Act had application and that the application for final decree was not barred by limitation. Without passing a final decree himself he passed the following decretal order:
“…………… The plaintiff's petition to make the decree final is allowed and the final decree proceedings shall proceed thereafter from the stage where the learned lower Court rejected the plaintiff's application.”
3. Against this order dated 8th March 1961 the Civil Revision has been filed.
4. Mr. R.K Mohapatra for the petitioner raises the following contentions: (i) the order of the learned Munsif dated 20th January 1959 is not a decree but is an order under Order 34, Rule 8 of the CPC and is not appealable under Order 43 of the CPC. Accordingly no appeal lay and the lower appellate Court illegally exercised jurisdiction not vested in it by law; and (ii) the view that Section 5 of the Limitation Act applies to an application for making the decree final is contrary to law and the application for final decree not having been filed within three years of the date of deposit is barred by limitation under Article 181 Limitation Act.
5. Mr. A.B Roy for the Opposite Party takes a preliminary objection that a Civil Revision does not lie as the decree of the lower appellate Court D/.- 8-3-1961 is appealable and that a second appeal lies.
6. I will first examine whether the order dated 20th January 1959 of the learned Munsif is a decree and as such appealable. Section 2(9) of the CPC defines ‘judgment’ which means the statement given by the judge of the grounds of a decree or order. Section 2(2) of the CPC defines ‘decree’ which means the formal expression of an adjudication which, so far as regards the Court expressing it, conclusively determines the rights of the parties with regard to all or any of the matters in controversy in the suit and may be either preliminary or final. The rest of the definition is not quoted as not being relevant for the purpose of this case. By the order D/- 20th January 1959 the learned Munsif came to the conclusion that the petition for making the decree final was not maintainable as being barred by limitation. The effect of such order is that the plaintiff is not entitled to a final decree for the redemption which, in essence, amounts to dismissal of plaintiff's suit for redemption. There can be absolutely no doubt that this order conclusively determines the right of the plaintiff in negativing his relief for redemption. Therefore, the order comes directly within the meaning of ‘decree.’
7. In order to be a ‘decree’ two essential legal requirements must exist. Firstly, there must be an adjudication conclusively determining the rights of the parties with regard to all or any of the matters in controversy in the suit; and secondly, such adjudication must receive a formal expression by way of drawal of the decree. Different forms have been prescribed in the Code of Civil Procedure for drawing such decrees. The judgment itself gives the statement given by the Judge of the grounds of a decree which means the reasons and the grounds of adjudication. But the judgment itself is not a decree unless it further gets formal expression in the shape of a decree.
8. In this case the first requirement has been satisfied. The learned Munsif's Order conclusively determines the rights of the parties by holding that a final decree for redemption could not be passed. But the second requirement of a formal expression has not been complied with. It is clear therefore, that though a judgment was passed in the case by the learned Munsif, a decree was not drawn up to give the judgment a formal expression.
9. The next question is “Does an appeal lie against the judgment or the decree?” Section 96 of the CPC makes it clear that save where otherwise expressly provided in the body of this Code or by any law for the time being in force, an appeal shall lie from every decree passed by any Court exercising original jurisdiction to the Court authorised to hear appeals from the decisions of such Court. There can be absolutely no doubt that an appeal lies only from a decree and not from a judgment. Until a decree is formally drawn up in terms of the judgment there can be neither appeal nor execution.
10. Section 33 of the CPC lays down that the Court, after the case has been heard, shall pronounce judgment, and on such judgment a decree shall follow. Order 20, Rule 6 gives the contents of the decree and lays down, that the decree shall agree with the judgment. The view taken by me is fully supported by the decisions reported is AIR 1924 Bom 33, Vamanacharya v. Govinda and AIR 1943 Nag 204, Baliram v. Manohar. The conclusion therefore, is that in this case the judgment of the learned Munsif comes within the definition of ‘decree’ u/Section 2(2) of the CPC and that a formal decree should have been drawn up in accordance with the judgment and that only against a decree an appeal lies.
11. My attention has been drawn to Rule 12 in Chapter V, Part I at page 25 of the General Rules and Circular Orders of the High Court, Vol. I (Civil). It runs as follows;
“In suits for money including suits upon mortgage, in suits for specific movables, in suits for accounts and in suits for arrears of rent no decrees need be drawn up if:
(i) neither party has to recover anything unless the Judges otherwise direct;
(ii) the claim is satisfied after judgment but before the decree is drawn up.”
12. It is contended by Mr. Roy that suits for money upon mortgage would refer to all mortgage suits while it is contended by Mr. Mohapatra that they would only refer to mortgage suits in which the relief sought is for recovery of money. In other words, the Rule would apply to a case where the plaintiff sues for recovery of mortgage dues though he may ask further relief for sale or foreclosure on the failure of the payment; but the rule would not include suits for redemption by the mortgagor which is not at all a suit for money. I am inclined to accept the contention of Mr. Mohapatra and of the opinion that the order of the learned Munsif in which the prayer for redemption was refused cannot be characterized as a suit for money upon a mortgage.
13. Mr. Roy places reliance on three decisions in support of his contention that even if a formal decree is not drawn up, a judgment which comes within the definition of ‘decree’ us 2(a), Code of Civil Procedure can be appealed against. These decisions only lay down that no revision can lie against a judgment which itself is appealable either as a decree or an order. There is no categorical and clear pronouncement that a Judgment having the force of a decree can be appealed against without a formal decree being drawn up. There are some observations in support of Mr. Roy's contention in AIR 1917 Mad 285, Suppu Nayakan…Plaintiff v. Perumal Chetty…Defendant . observed at page 286:
“Thus the abatement of the suit and the passing of an order which has the force of a decree, dismissing the suit are treated as closely connected, if not identical, proceedings. I might however, suggest that the Rule Committee might make it clear by the enactment of a rule that in cases where suits have abated without the necessity of a formal order, a decree dismissing the suit should be drawn up as on the date of the abatement, unless of course the abatement is set aside by appropriate proceedings.”
14. This observation itself suggests that a decree is to be formally drawn up and as there was no such rule in the Madras High Court Rules, even the framing of a rule was suggested. In AIR 1919 Mad 709, Subbalakshmi v. Ramalinga, actually a decree was drawn up. I do not read in any of these decisions a pronouncement that an appeal would lie against a judgment and not against a decree. If, however, the decisions have laid down anything to the contrary, I am not inclined to follow them. 5 Pat LJ 342, Ganganand Singh v. Pirthi Chand also does not lay down such a proposition. I do not find much force in the contention of Mr. Roy.
15. I would next examine the preliminary objection raised by Mr. Roy that no revision lies against the judgment and decree of the learned Additional Subordinate Judge. This contention if developed in the way that a decree had been formally drawn up by the learned Additional Subordinate Judge, and as the judgment of the learned Munsif itself amounts to a decree, a second appeal lies. On the principle enunciated above I find no substance in this contention. So far as the judgment of the learned Additional Subordinate Judge is concerned, it satisfies the second test, namely, that a formal decree has been drawn up, but it does not satisfy the first test, namely, that the decree of the learned Additional Subordinate Judge does not finally and conclusively determine the rights of the parties. A suit for redemption does not come to an end until a final decree is passed. The lis remains pending till then. The learned Addl. Subordinate Judge could have passed a final decree after holding that the application of the mortgagor for the passing of a final decree was not barred by limitation. Without passing such a final decree he remanded the suit to the trial Court giving a direction that the final decree proceedings should proceed thereafter from the stage where the learned lower Court rejected the plaintiff's application. This does not amount to a decree within the meaning of Section 2(2) of the CPC. As this does not amount either to a decree or an appealable Order, no appeal lies against the judgment of the learned Addl. Subordinate Judge though a formal decree was in fact drawn up. I would accordingly hold that the Civil Revision is maintainable — See also AIR 1934 Pat 97 (2), Dhup Pandey v. Narbadeshwar Prasad and AIR 1942 Mad 73, Panthanam v. Abdul Rahiman. Mr. Roy concedes that the Addl. Subordinate Judge could have passed the final decree in the appeal.
16. Mr. Mohapatra contends that an order under Order 34, Rule 8 is not appealable under Order 43. The dismissal of the application under Order 34, Rule 8 to make the decree final amounts to refusal to pass final decree and to dismissal of the suit itself. Though the application was started under Order 34, Rule 8, the ultimate result was the dismissal of the suit which amounts to a decree.
17. I will now examine if the application for final decree is barred by limitation. Section 5 of the Limitation Act has no application to such cases. Section 5 runs as follows:
“Any appeal or application for a review of judgment or for leave to appeal or any other application to which this section may be made applicable by or under any enactment for the time being in force may be admitted after the period of limitation prescribed therefor, when the appellant or applicant satisfies the Court that he had sufficient cause for not preferring the appeal or making the application within such period.”
18. It is undisputed that S. 5 has not been made, applicable to an application under Order 34. There can be therefore no controversy that S. 5 has no application to this case. The learned Munsif took the correct view and the learned Additional Subordinate Judge was wholly confused and used ornamental and flowery language without understanding the legal significance thereof. The position of law is also well settled that under Order 34, Rule 8 the plaintiff can make payment into Court of all amounts due from him under sub-rule (1) of Rule 7 before a final decree debarring the plaintiff from all rights to redeem the mortgaged property has been passed or before the confirmation of the sale held in pursuance of a final decree passed under sub-rule (3) of Rule 8. The period of limitation for the mortgagee to file an application for granting a final decree is three years from the date of the deposit under Article 181 of the Limitation Act. The mortgagor can make the deposit at any time before the passing of a final decree for foreclosure for sale on good cause shown and upon the terms to be fixed by the Court from time to time. For an application for passing a final decree by a mortgagor the period of limitation is three years from the date he makes payment into Court. AIR 1946 Mad 38, Angammal v. Muhammad Sulaiman and AIR 1957 Mad 189, M. Subramaniam Chettiar v. Muthiah Pillai, are directly in point. In this case the deposit was made on 22nd September 1945. Applying the aforesaid principle the application for passing the final decree is barred by time. In view of the fact that the application for final decree is barred by limitation, no useful purpose will be served by directing the learned Munsif to prepare a decree so as to give a chance to the plaintiff to file an appeal against that decree. My views are summarized as follows:
(i) That the appeal before the lower appellate Court was not competent as no formal decree had been drawn up in accordance with the order of the learned Munsif:
(ii) That the Civil Revision is competent; and
(iii) That the application for final decree is barred by limitation and that no useful purpose will be served by sending back the case to the learned Munsif for preparing a decree.
19. In the result I would allow the Civil Revision, set aside the judgment and decree of the learned Additional Subordinate Judge and restore the judgment of the learned Munsif. The question regarding the competency of the appeal before the lower appellate Court had not been raised on behalf of the defendant. In the circumstances, parties are to bear their own costs throughout.
LF/D.H.Z
20. Revision allowed.
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