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Naguba Appa v. Namdev

Supreme Court Of India
Nov 20, 1950
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Factual and Procedural Background

A decree for pre-emption was passed in favour of the plaintiff (pre-emptor), directing him to deposit the sale price within two months from the date of the decree. An appeal was filed against this decision but was later withdrawn. The pre-emption money was not deposited within the time fixed by the decree. Thereafter, the pre-emptor applied to the court seeking permission to deposit the amount without disclosing that the decree’s time-limit had already expired, and the application was allowed.

Upon learning this, the defendant applied to the court asserting that the plaintiff’s suit had stood dismissed due to failure to deposit within time and that the decree was not executable. The trial judge agreed and held that the suit stood dismissed. This decision was set aside in appeal, but on second appeal it was restored, with the High Court holding that the suit stood dismissed under Order 20, Rule 14 of the Civil Procedure Code. An appeal was then preferred to the Judicial Committee of the State and the matter came before the present court under Article 374(4) of the Constitution.

Legal Issues Presented

  1. Whether the filing of an appeal against the trial court’s pre-emption decree justified the pre-emptor’s failure to deposit the pre-emption price within the time fixed by the decree.
  2. Whether the decree was defective for not expressly directing that failure to deposit within time would result in dismissal of the suit, and whether such omission affected the parties’ rights under Order 20 Rule 14 CPC.

Arguments of the Parties

Appellant's Arguments

  • The High Court’s decision was wrong because, since an appeal had been preferred from the trial court’s decree, the pre-emptor was justified in not depositing the amount within the time fixed by the decree.
  • The decree drawn up by the trial judge was not in accordance with Order 20 Rule 14 CPC because it contained no direction that if the deposit was not made within the time fixed, the suit would stand dismissed.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court rejected the contention that the mere filing of an appeal suspends the trial court decree. It held that filing an appeal does not by itself suspend the decree, and unless the appellate court alters the decree, the pre-emptor remains bound to comply with its directions. On this basis, the court agreed with the High Court that the pre-emptor’s default in not depositing the pre-emption price within the time fixed resulted in dismissal of the suit.

The court also rejected the argument that the decree’s failure to expressly state that non-deposit would lead to dismissal rendered it non-compliant with Order 20 Rule 14. The court reasoned that dismissal follows from the mandatory provisions of Order 20 Rule 14 and not from any further “decision” of the court; therefore, omission to incorporate such a direction in the decree could not affect the rights of the parties.

Holding and Implications

DISMISSED: The appeal failed and was dismissed with costs.

As a direct consequence, the High Court’s view was upheld: the pre-emptor’s suit stood dismissed due to failure to deposit the pre-emption money within the time fixed by the trial court’s decree under Order 20 Rule 14 CPC, and the pre-emptor was not entitled to execute the decree on the basis of a belated deposit allowed by the trial court. The opinion does not discuss any broader implications or the setting of any new precedent beyond applying the stated mandatory rule.

Show all summary ...

1. A decree for pre-emption of the property in suit was passed in favour of the plaintiff and he was ordered to deposit the sale price within two months from the date of the decree. An appeal was taken against this decision but it was withdrawn. The pre-emption money was not deposited within the time fixed in the decree. The preemptor made an application to the court for making the deposit without disclosing that the time fixed by the decree had elapsed. The application was allowed. The defendant, when apprised of the situation, made an application to the court to the effect that the plaintiff's, suit stood dismissed owing to his failure in making the deposit in time and that he was not entitled to execute the decree. The trial Judge held that the pre-emption money not having been paid within the time fixed in the decree the suit stood dismissed. On appeal this decision was set aside but on second appeal it was restored and it was held that the suit stood dismissed under Order 20, Rule 14, Civil Procedure Code. Against this decision an appeal was preferred to the Judicial Committee of the State and it is now before us under Article 374(4) of the Constitution.

2. It was contended on behalf of the appellant that the decision of the High Court was wrong inasmuch as an appeal having been preferred from the trial court's decree in the pre-emption suit, the preemptor was justified in not depositing the amount within the time fixed by the decree. This argument cannot be sustained. Mere filing of an appeal does not suspend the decree of the trial Judge and unless that decree is altered in any manner by the court of appeal, the preemptor is bound to comply with its directions. In our opinion, the High Court was right in holding that the preemptor's suit stood dismissed by reason of his default in not depositing the pre-emption price within the time fixed in the trial Court's decree. It was next contended that the decree drawn up by the trial Judge was not in accordance with the provisions of Order 20 Rule 14 in that it contained no direction to the effect that if the deposit was not made within the time fixed the suit will stand dismissed. In our view, this contention is not sound because the dismissal of the suit is as a result of the mandatory provisions of Order 20 Rule 14 and not by reason of any decision of the Court and the omission to incorporate this direction in the decree could not in any way affect the rights of the parties.

3. The result therefore is that this appeal fails and is dismissed with costs.