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Phool Chand v. Badri Prasad

Rajasthan High Court
Aug 19, 1952
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Structured Summary of the Provided Opinion

Factual and Procedural Background

The application before the Full Bench is for leave to appeal to the Supreme Court under Article 133(c) of the Constitution. The matter was referred to this Full Bench because some points overlap with Civil Miscellaneous Case No. 5 of 1952 (Mst. Gulab Bai v. Mst. Manphul Bai).

Facts and procedural history as stated in the opinion:

  • In August 1927 a decree (for about Rs. 7,000) was passed by the District Judge of Alwar in favour of one "Gbvindi" and against the present applicants Phulchand and Surajmal.
  • The decree was put into execution; a compromise was later made whereby a cash deposit and annual instalments of Rs. 600 were to be paid.
  • In 1931 another execution application was made; a house was attached and sold on 13 May 1940.
  • Objections under Order XXI, Rule 90, Civil P.C. were dismissed; the sale was confirmed on 8 September 1943 and the sale certificate issued on 6 September 1944.
  • An additional objection taken in August 1943 was finally decided by the Rajendra Shashan of the former covenanting State of Alwar in April 1949. Possession (except part occupied by the judgment-debtors' mother) was delivered to the decree-holder.
  • On 18 July 1949 the applicants filed an application contending the sale was void ab initio because mandatory provisions of Order XXI, Rules 84 and 85, Civil P.C., had been disregarded and prayed for restoration of possession. That application was dismissed on 28 September 1949.
  • The judgment-debtors appealed and possession was ordered restored to them on that appeal. A second appeal to this Court was allowed by a Division Bench. The present application seeks leave to appeal to the Supreme Court against the decree of this Court.

Legal Issues Presented

  1. Whether leave can be granted under Article 133(1)(c) of the Constitution when the point in dispute is measurable in terms of money and the valuation is less than Rs. 20,000.
  2. Whether, in the present case, leave to appeal should be granted — specifically, whether the question of law involved (whether a judgment-debtor can ask a court to declare a sale nullity after the court has confirmed the sale) is of general public importance and whether the law on that point is settled.

Arguments of the Parties

Opposite Party's Arguments

  • The opposite party contended that the High Court cannot give leave under Article 133(1)(c) because the point in dispute is measurable in terms of money and the valuation is less than Rs. 20,000 (para 4).
  • They further contended that the legal question (whether a judgment-debtor may have a sale declared void after confirmation) is settled by the decision of the Privy Council in Ganapathy Mudaliar v. Krishnamachariar (45 Ind App 54 (PC)) and therefore the case is not appropriate for certificate to appeal to the Supreme Court (para 4).

Applicants' (Judgment-Debtors') Arguments

  • The applicants conceded that if the law on the point was settled by a decision of the highest court, it would not be proper for the High Court to grant a certificate under Article 133(1)(c) (para 4).
  • They contended, however, that the law on the point is not settled and that the present case therefore raises a question of general public importance suitable for leave (para 4).
  • They also argued a factual/technical distinction: that they had not brought a suit but had made an application under Section 47, Civil P.C., implying that previous authorities concerning suits might not be directly applicable (para 11). The Court considered and rejected this distinction as lacking force (para 11).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Mst. Gulab Bai v. Mst. Manphul Bai (Civil Misc. Case No. 5 of 1952) Reference case concerning similar points referred to a Full Bench. Explains why the present matter was referred to a Full Bench (para 1) and the Court relies on the answer given in that Full Bench matter concerning Article 133(1)(c) (para 3).
Bhiram Ali v. Gopi Kanth, 24 Cal 355 Held Section 244 of the old Code (equivalent to present Section 47) barred a fresh suit for certain questions but did not bar trial of an issue raised by a defendant in an existing suit (para 5). Identified as the earliest authority on the point and included in the chain of precedents surveyed (para 5).
Ashutosh v. Beharilal (Ashutosh Sikdar), 35 Cal 61 (Five-Judge Full Bench) Held an application to set aside a sale under Section 244 must be made before confirmation unless applicant proves fraud or ignorance of sale proceedings (para 6). Relied on as a major authority establishing that post-confirmation challenges are barred except for fraud; treated as binding and central to the settled position (paras 6, 11, 17).
Ganapathy Mudaliar v. Krishnamachariar, 45 Ind App 54 (PC) Held that where sale was confirmed the validity of the sale could not be questioned by a fresh suit but only by an application before confirmation to the executing court (para 7). Used as an authoritative statement (Privy Council) applying Section 244 principles; the Court considered whether this Privy Council decision settled the law (paras 4, 7, 11, 16).
Prosunno Kumar v. Kali Das, 19 Ind App 166 (PC) Section 244 applies where the question concerns the auction purchaser as well as the parties to the suit (para 9, blockquote). Cited within the Privy Council's reasoning (via Ganapathy Mudaliar) to show the scope of Section 244 and its application to auction purchasers (para 9).
Firm Wasti Ram Gurditta Mal v. Mt. Ganeshi, AIR 1939 Lah 405 Held an objection under Section 47 cannot be taken after confirmation of sale (para 10). Relied on as one of the authorities supporting the proposition that post-confirmation challenges are barred except for fraud (para 10).
Baleshwar Chaubey v. Ram Rana Vijaya Prasad Singh, AIR 1947 Pat 461 (Special Bench) Held sale held in contravention of law may be avoided before confirmation by Section 47 application; after confirmation it can be avoided only if applicant proves fraud or ignorance of proceedings (para 10). Adopted as authority consistent with Ashutosh and Ganapathy and relied upon to conclude a consensus of view among High Courts (para 10, 17).
Mahomed Ali v. Kiberia Khatun, 9 Ind Cas 66 (Cal) Held that where sale price was not paid at all the sale could not be treated as a sale under the Code (para 12, 14). Recognised as directly conflicting with the Full Bench cases (Ashutosh and Ganapathy); Court noted doubts in that decision and did not follow it (para 14).
Annapurna Dasi v. Bazley Karim, AIR 1941 Cal 85 Single Judge held that where the balance of money is not paid under O. XXI, R. 85 the purchaser forfeits claim and the sale becomes a nullity (para 16). Noted as directly against Ashutosh and Ganapathy; the Court records that this decision did not consider those binding authorities and therefore is not followed (para 16).
Haji Inam Ullah v. Mohammad Idris, AIR 1943 All 282 In that case an objection relating to Order XXI, Rule 85 was taken before confirmation of sale (para 17). Cited to show that the objection in that case had been taken before confirmation and thus is distinguishable from post-confirmation challenges (para 17).
Satdeo Koeri v. Suraj Ball Singh, AIR 1948 All 16 Held that the court making the sale had no jurisdiction (para 18). Distinguished by the Court because the present line of authorities presumes the selling court had jurisdiction; Satdeo Koeri is therefore not inconsistent with Ashutosh and Ganapathy (para 18).
Necharuddi Safui v. Ayod Ali, AIR 1951 Cal 319 Single Judge followed Annapurna Dasi and held sale nullity where balance not paid and that sale could be set aside under Section 47 even after confirmation (para 19). Noted as directly against the five-judge Full Bench decision in Ashutosh and the Privy Council in Ganapathy; the Court recorded that those authorities were not considered in Necharuddi Safui (para 19).

Court's Reasoning and Analysis

The Court's reasoning proceeds in two stages corresponding to the two principal legal issues raised:

  1. Whether Article 133(1)(c) certificate may be granted despite monetary valuation below Rs. 20,000:

    The Full Bench referred to its answer in Civil Misc. Case No. 5 of 1952 and held that even if the point in dispute is measurable in money and the valuation is less than Rs. 20,000, the High Court may grant a certificate under Article 133(1)(c) if the High Court is of the opinion that the question involved is of general public importance (para 3). The opposite party's objection on this ground was rejected as without force (para 3).

  2. Whether leave should be granted in this particular case — is the law on post-confirmation challenges settled?

    The Court examined the authorities in chronological and doctrinal sequence to determine whether the law is settled:

    • It identified early authorities (Bhiram Ali) and the major Full Bench decision (Ashutosh Sikdar) which held that applications to set aside a sale under the old Section 244 (equivalent to present Section 47) must be made before confirmation unless the applicant proves fraud or ignorance of sale proceedings (paras 5–6).
    • The Privy Council decision in Ganapathy Mudaliar was considered and quoted: it held that a suit to challenge a confirmed sale was not maintainable because Section 244/47 limited challenges to the executing court before confirmation (paras 7–9).
    • The Court noted other High Court decisions (Wasti Ram; Baleshwar Chaubey) that align with the principle that once a sale made by a court having jurisdiction is confirmed, it cannot be challenged by suit or Section 47 application except on proof of fraud or ignorance of proceedings (paras 10–11).
    • The Court acknowledged conflicting Calcutta High Court authorities (Mahomed Ali; Annapurna Dasi; Necharuddi Safui) which held that failure to pay the balance could render the sale a nullity even after confirmation. The Court observed that these are directly contrary to the five-judge Full Bench in Ashutosh and the Privy Council in Ganapathy and that those cases did not consider those binding decisions (paras 12, 16, 19).
    • The Court distinguished decisions where the selling court lacked jurisdiction (Satdeo Koeri) or where objections were taken before confirmation (Haji Inam Ullah) as not being inconsistent with the settled principle (paras 17–18).
    • On balance, the Court concluded there is a consensus of opinion among the High Courts (excluding the few Calcutta single-judge decisions in conflict) that a sale made by a court having jurisdiction, once confirmed, cannot be challenged by suit or S.47 application except on the ground of fraud (para 17).

    Because the Court found the law on the point to be well settled, it concluded that although the question is of general public importance, this is not a fit case for granting leave to appeal to the Supreme Court (para 17).

Holding and Implications

LEAVE TO APPEAL UNDER ARTICLE 133(1)(c) IS REFUSED — the application for leave to appeal is dismissed. The opinion closes with the specific order: "The application for leave to appeal is hereby dismissed with costs to the opposite party" (para 18).

Implications as stated or reasonably confined to the text:

  • Direct effect: The applicants' application for a certificate to appeal to the Supreme Court is dismissed; costs are awarded to the opposite party (para 18).
  • On substantive law: The Court held that the law is well settled in favour of the proposition that where a court having jurisdiction makes and confirms a sale, that sale cannot be challenged thereafter by suit or by an application under Section 47, Civil P.C., except on the ground of fraud (para 11, para 17).
  • No new legal principle or precedent is announced by the Court; rather, the Court applied and affirmed the existing line of authority and refused leave on that basis (para 17).

Note: All factual statements, citations and conclusions above are drawn exclusively from the language and authorities cited in the provided opinion. No information beyond the opinion has been added.

Show all summary ...

1. This is an application for leave to appeal to the Supreme Court under Article 133(c) of the Constitution. It has been referred to this Full Bench for decision, because some of the points involved in this case are the same which arise in Civil Miscellaneous Case No. 5 of 1952 (Mst. Gulab Bai v. Mst. Manphul Bai) in which certain questions were referred to a Full Bench.

2. The present application has arisen in the following circumstances:

A decree was passed in August 1927 by the District Judge of Alwar in favour of one Gbvindi and against the present applicants Phulchand and Surajmal for about Rs. 7,000/-. It was put into execution, and a compromise was then arrived at by which a certain sum was to be deposited in cash and the rest of the decretal amount was to be paid in annual instalments of Rs. 600/-. In 1931, another execution application was made, and a house was attached, and was sold on the 13th May, 1940. Thereafter, there were certain objections under Order XXI, Rule 90, Civil P. C., which were dismissed, and the sale was confirmed on the 8th September 1943, and the sale certificate was issued on the 6th September 1944. It appears however that another objection was taken in August, 1943, and that objection was finally decided by the Rajendra Shashan of the former covenanting State of Alwar in April, 1949. Possession of the house barring a certain portion in the occupation of the mother of the judgment-debtors applicants was also made over to the decree-holder. Thereafter, after the decision of the Rajendra Shashan in April 1949 an application was filed on the 18th July, 1949, by the applicants contending that the sale was void ab initio, as the mandatory provisions of Order XXI, Rr. 84 and 85, Civil P. C. had been disregarded, and the applicants prayed for restoration of possession. This application was dismissed on the 28th September 1949. There was an appeal by the judgment-debtors, which was allowed and possession was ordered to be restored to them. Then there was a second appeal to this court, which was heard by a Division Bench. The second appeal was allowed. The present application is for leave to appeal against the decree of this Court.

3. The first point which arises for consideration is whether leave can be granted under Article 133(1)(c) ,of the Constitution in a case in which the point in dispute is measurable in terms of money, and the valuation is less than Rs. 20,000/-. This was the first question which was referred to the Full Bench in Miscellaneous case No. 5 of 1952. The answer we have given in that case is that even though the point in dispute is measurable in terms of money, and the valuation is less than the minimum amount, it is open to the High Court to grant a certificate under Article 133(1)(c) if the High Court is of the opinion that the question involved is of general public importance. The objection therefore of the opposite party that the High Court cannot give leave under Article 133(1)(c) of the Constitution because the point in dispute is measurable in terms of money, and the valuation is less than Rs. 20,000/- has no force.

4. The second question is whether we should grant leave in this particular case and whether the point in dispute is of general public importance. The point in dispute is whether it is open to the judgment-debtor to come to Law Court and ask it to declare that the sale is a nullity after the court has already confirmed the sale. Learned counsel for the opposite party admits that the point is of general public importance; but his contention is that the point is settled by the decision of Their Lordships of the Privy Council in -- 'Ganapathy Mudaliar v. Krishnamachariar', 45 Ind App 54 (PC), and therefore the law being settled the case is not a fit one for appeal to the Supreme Court. Learned counsel for the applicants concedes that if the law is settled by a decision of the highest Court, it would not be proper for this court to grant a certificate under Article 133(1)(c), but his contention is that the law in this case is not settled. What we have therefore to see is whether the law on this point is settled or not.

5. The earliest case on the point is --'Bhiram Ali v. Gopi Kanth', 24 Cal 355. In that case it was held that Section 244 of the Code of Civil Procedure (which is equivalent to Section 47 of the present Code) barred a suit for the determination of certain questions specified therein, but did not bar the trial of any issue involved in those questions if the issue was raised at the instance of a defendant in a suit brought against him. The question arose in a suit by a decree-holder who had obtained the sale certificate but had failed to obtain possession which remained with the judgment-debtors.

6. The next case, to which reference may be made, is -- 'Ashutosh v. Beharilal', 35 Cal 61, decided by a five judge Full Bench. In that case, the property of the judgment-debtors was sold, and the sale was confirmed. Thereafter, an application was made under Section 244 of the Code of Civil Procedure (which is equivalent to Section 47 of the present Code) by the judgment debtors to have the sale set aside on the ground that it was in contravention of the terms of Section 99 of the Transfer of Property Act. The application was rejected, and it was held that such an application must be made before confirmation of the sale, unless the applicant proved that owing to fraud or other reasons he was kept in ignorance of the sale proceedings preliminary to sale.

7. Then we come to -- 'Ganapathy Mudaliar v. Krishnamachariar', 45 Ind App 54 (PC). In that case property had been sold, and the sale was confirmed. The decree, however, in which the property was sold did not comply with Sections 86, 88 and 89 of the Transfer of Pro-perty Act. Later, a suit was brought by the judgment-debtor's heirs for redemption of the mortgage. It was held that the suit could not be maintained, because under Section 244 of the Code of Civil Procedure of 1882, (equivalent to Section 47 of the present Code), the validity of the sale could not be questioned by a fresh suit, but only by an application before confirmation to the court executing the decree. The following observations appeared at page 60:

"This Board decided in -- 'Prosunno Kumar v. Kali Das', 19 Ind App 166 (PC) that Section 244 had been rightly held in India to apply in a case in which the question raised concerned the auction purchaser at an auction sale as well as the parties to the suit. In this case the vakil was the auction purchaser and was also a party to the suit. The questions raised in the present suit could have been raised before the sale was confirmed, and, if so raised, would have been determined by the court which was executing the decree of the November 15, 1886."

8. Learned counsel for the opposite party urges that this case confirms the view that was taken in -- 'Ashutosh Sikdar's case', (35 Cal. 61), and that ever since the decision in --'Ganapathy Mudaliar's case', (45 Ind App 54 PC), the courts in India have held that once a sale is confirmed, it cannot be challenged by the judgment-debtor except on the ground of fraud,

9. Learned counsel for the applicants wants to draw a distinction between the facts of the present case and the facts in -- 'Ganapathy Mudaliar's Case', (45 Ind App 54 PC). He urges that he has not brought a suit, but has made an application under Section 47, Civil P. C. But -- 'Ashutosh Sikdar's case', (35 Cal 61), was a case of an application under Section 244 and not of a suit. In any case, the distinction that the learned counsel for the applicants wants tc draw does not appear to us to have any force for the principle of -- 'Ganapathy Mudaliar's case' has been applied not only to suits, but tc applications under Section 47, Civil P. C. We would refer to a few cases in this connection.

10. In -- 'Firm Wasti Ram Gurditta Mal v. Mt. Ganeshi', AIR 1939 Lah 405, it was held that an objection under Section 47 cannot be taker after confirmation of sale. The same view was taken by a Special Bench of the Patna High Court in -- 'Baleshwar Chaubey v. Ram Rana vijaya Prasad Singh', AIR 1947 Pat 461 (SB). It was held in that case that where a court has jurisdiction to sell, a sale held in contravention of some provision of law can be avoided before its confirmation by an application under Section 47. But after confirmation, the sale can only foe avoided if the applicant establishes that owing to fraud or other reason he was kept in ignorance of the sale proceedings preliminary to the sale.

11. A review of these authorities shows that the law on the question whether a sale can be avoided after confirmation by a suit or by an application under Section 47 is settled, and where the court, which made the sale, has jurisdiction to sell the property, the sale cannot be challenged either by a suit or by an application under Section 47 after it has been confirmed, except on the ground of fraud.

12. We may also notice certain cases which have been cited on behalf of the applicants to show that the point is not settled. In -- 'Mahomed Ali v. Kiberia Khatun', 9 Ind Cas 66 (Cal), a Bench of the Calcutta High Court held that where the sale price was not paid at all, the sale could not be treated to be a sale under the Code. They therefore decreed the suit against the auction purchaser. It is enough to say that this case is in direct conflict with the cases of -- 'Ashutosh Sikdar', (35 Cal 61 FB) and -- 'Ganapathy Mudaliar', (45 Ind App 54 PC), which we have mentioned above. It further appears that the learned Judges were not very sure of what they were deciding, for they made the following observations at the end of their judgment.

"We may add that the point is a new one in this court, and it is possible that facts, which are not before us, might give a very different aspect to the defendant's contention if he had raised it at an earlier stage of the litigation."

13. Then we come to -- 'Sm. Annapurna Dasi v. Bazley Karim', AIR 1941 Cal 85. In this, a learned Single Judge held, following Munshi Mohomed Ali Mia's case, that where the balance of money is not paid under O. XXI, Rule 85, the purchaser forfeits all claim to the property, and the sale becomes a nullity. The point arose in a suit brought by one of two joint decree-holders, we must say that the decision in this case is directly against the view taken in cases of Ashutosh Sikdar and Ganapathy Mudaliar, which were binding on the learned Judge but to which no reference has been made on the judgment.

14. Then we come to -- 'Haji Inam Ullah v. Mohammad Idris', AIR 1943 All 282. It is enough to say that in this case, the objection was taken before the confirmation of sale, though the application in which that objection was taken was mixed up with an application under Order XXI, Rule 90, and the judgment-debtor withdrew the application under Order XXI, Rule 90 in order to proceed with his application under Order XXI, Rule 89. The case, however, proceeds on the assumption that the objection relating to Order XXI, Rule 85 had been taken before the confirmation.

15. The next case is -- 'Satdeo Koeri v. Suraj Ball Singh', AIR 1948 All 16. In this case it was held that the court making the sale had no jurisdiction. The case is therefore clearly distinguishable because in the cases of 'Ashutosh Sikdar', (35 Cal 61 FB) and --Ganapathy Mudaliar', (45 Ind App 54 PC), it is presumed that the court making the sale had jurisdiction to sell the property.

16. The last case is -- 'Necharuddi Safui v. Ayod Ali', AIR 1951 Cal 319. Here also the balance of the purchase price had not been paid, and a learned Single Judge held, following --'Annapurna Dasi's case', that the sale was a nullity, and could be set aside on an application under Section 47 even after confirmation of sale. All that need be said about this case is that it is directly against the five-judge Full Bench decision in Ashutosh Sikadar's case, and also against the principle laid down in -- 'Ganapathy Mudaliar's case', (45 Ind App 54 PC), neither of which have been considered.

17. Barring therefore a few cases of the Calcutta High Court here and there which are, in our opinion, directly against the five-judge Full Bench case of -- 'Ashutosh Sikdar', (35 Cal 61 FB), there is a consensus of opinion in the High Court which have considered the matter that a sale made by a court which has jurisdiction, and which has once been confirmed, cannot be chal-lenged either by a suit or by an application under Section 47 after such confirmation, unless fraud is proved. We are therefore of opinion that the law on the point which is in dispute in this case is well settled. Therefore, even though the question is of general public importance, we feel that leave to appeal to the Supreme Court must be refused.

18. The application for leave to appeal is hereby dismissed with costs to the opposite party.