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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Article 133(1)(c)
  • Sections 40 and 42 of the Indian Code of Civil Procedure
  • Sections 43 and 44 of the Indian Code of Civil Procedure
  • Section 38 & 39 of the Indian Code of Civil Procedure
  • Foreigners' Act (31 of 1946)
  • The Indian Code of Civil Procedure
  • Section 43 of the Indian Civil Procedure Code as amended by the Adaptation of Laws Order of June 5, 1950
  • Section 43 of the Indian Code
  • Act 2 of 1951
  • Section 233 of the Gwalior Code
  • The Madhya Bharat Code of Civil Procedure
  • Section 2(a)(iii) which was amended by Act 38 of 1947
  • Sections 38 & 39 of the Indian Code of Civil Procedure
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Article 133(1)(c)
  • Sections 40 and 42 of the Indian Code of Civil Procedure
  • Sections 43 and 44 of the Indian Code of Civil Procedure
  • Section 38 & 39 of the Indian Code of Civil Procedure
  • Foreigners' Act (31 of 1946)
  • The Indian Code of Civil Procedure
  • Section 43 of the Indian Civil Procedure Code as amended by the Adaptation of Laws Order of June 5, 1950
  • Section 43 of the Indian Code
  • Act 2 of 1951
  • Section 233 of the Gwalior Code
  • The Madhya Bharat Code of Civil Procedure
  • Section 2(a)(iii) which was amended by Act 38 of 1947
  • Sections 38 & 39 of the Indian Code of Civil Procedure
Smart Summary

Factual and Procedural Background

On 3 December 1949, the Subordinate Judge, Bankura (West Bengal) passed a money decree in favour of the present respondent. A certificate for transfer was applied for on 27 July 1950, granted on 8 August 1950, and the decree was forwarded for execution on 28 August 1950 to the Court of the Additional District Judge, Morena, then within the former Gwalior State (later the Part B State of Madhya Bharat). The decree-holder commenced execution on 25 September 1950. Upon objection by the judgment-debtor, the executing court dismissed the application on 29 December 1950. The High Court of Madhya Bharat reversed that order on 15 November 1954. The judgment-debtor obtained a certificate under Article 133(1)(c) of the Constitution and appealed to the Supreme Court.

Legal Issues Presented

  1. Whether, under Sections 38 and 39 of the Indian Code of Civil Procedure, 1908 (CPC), the Bankura court could validly transfer the decree for execution to the Morena court when, at the time of transfer (August 1950), the CPC did not extend to Madhya Bharat.
  2. Whether the decree could nonetheless be executed in Morena by invoking Section 43 of the CPC as adapted by the Adaptation of Laws Order of 5 June 1950.
  3. Consequentially, whether the decree was, for execution purposes, a “foreign” decree requiring a fresh suit under the Gwalior/Madhya Bharat procedural law.

Arguments of the Parties

Appellant (Judgment-debtor)

  • Sections 38 and 39 CPC permitted transfer only to a “court” governed by the CPC; since the Code did not then apply in Madhya Bharat, the Morena court was not a competent transferee and the transfer was void.
  • Because the transfer was invalid, the decree remained unenforceable in Morena and was, in effect, a foreign decree that required a separate suit under Section 233 of the Gwalior Code.

Respondent (Decree-holder)

  • The term “court” in Sections 38 and 39 should be construed broadly as any forum where justice is judicially administered, relying on Manavala Goundan v. Kumarappa Reddy.
  • Even if Sections 38-39 were inapplicable, Section 43 CPC (as retrospectively amended by the Adaptation of Laws Order, 1950) authorised execution in any “court in the States,” which should include the Morena court.
  • The judgment-debtor was not a “foreigner” under the Foreigners Act, 1946; therefore the decree should not be treated as foreign.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Manavala Goundan v. Kumarappa Reddy Definition of the word “court” in earlier CPC provisions as “a place where justice is judicially administered.” The Supreme Court held the definition unhelpful; for Sections 38-39, “court” means a court to which the CPC applies, i.e., one within the then British Indian territories.

Court's Reasoning and Analysis

1. At the time of transfer (28 August 1950) the CPC applied only to territories comprising “British India.” Madhya Bharat, as a Part B State, did not come within the CPC until 1 April 1951 via Act 2 of 1951. Consequently, the Morena court was not a “court” within the meaning of Sections 38 and 39, rendering the transfer order ultra vires.

2. The respondent’s reliance on Section 43 (as adapted) failed because the text expressly referred to decrees “passed by a civil court in a Part B State.” The decree in question was passed in West Bengal (a Part A State). The Court refused to rewrite the statute by substituting “Part A” for “Part B.” Moreover, Section 43 could not operate in Madhya Bharat before the CPC’s extension on 1 April 1951.

3. The Foreigners Act, 1946, was irrelevant to determining whether a decree is “foreign” for execution purposes. Executability depends on the CPC: a decree can be executed either by the court that passed it or a court to which it is validly transferred under the Code. Because the transfer was invalid, the decree was, vis-à-vis Madhya Bharat courts, a foreign decree requiring a separate suit under local procedural law.

4. Given these conclusions, further questions became academic and were not examined.

Holding and Implications

Appeal Allowed; High Court judgment set aside; order of the executing court dismissing the execution application restored.

The immediate consequence is that the decree-holder cannot execute the Bankura decree in the Morena court without instituting a fresh suit or obtaining a valid transfer after 1 April 1951. The decision clarifies that, prior to the CPC’s statutory extension to Part B States, courts in those territories were not competent transferee courts under Sections 38-39, and Section 43 could not be invoked to circumvent that limitation. No broader doctrinal innovation was announced.

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    Firm Hansraj Nathuram v. Firm Lalji Raja And Sons

    Kapur, J.— This is an appeal against the judgment and order of the High Court of Madhya Bharat at Gwalior on a certificate of that Court under Article 133(1)(c) and like Civil Appeal No. 24 of 1961, raised the question of the applicability of the Indian Code of Civil Procedure and the question whether the decree sought to be executed was a decree of a foreign court or not. It is a reverse case in the sense that the decree sought to be executed was passed by a court in West Bengal — a province of what was British India. In this appeal the appellant is the judgment-debtor and the decree-holder is the respondent.

    2. On December 3, 1949, a decree was passed in favour of the respondent by the Subordinate Judge, Bankura, in West Bengal and a certificate of transfer was applied for on July 27, 1950, granted on August 8, 1950, and was transferred for execution on August 28, 1950. On September 25, 1950, the decree-holder took out execution in the Court of the Additional District Judge, Morena, in what was Gwalior State and subsequently became a part of the United State named Madhya Bharat and after the Constitution the Part B State of Madhya Bharat .On the judgment-debtor's objection the application for execution was dismissed on December 29,1950, but the appeal against that order was allowed by the High Court on November 15, 1954.

    3. It is unnecessary to set out the various sections of the Indian Code of Civil Procedure or to trace the various steps by which Sections 43 and 44 were amended in that Code; that we have done in CA No. 24 of 1960 decided today. It was contended before us by the judgment-debtor that the Court had no power to transfer the decree under Section 38 to the court in Morena. On the date when the decree was transferred the courts in Madhya Bharat were governed by the Indian Code of Civil Procedure as adapted by the Madhya Bharat Adaptation Order of 1948 but the power of transfer by the court at Bankura was governed by Sections 38 & 39 of the Indian Code of Civil Procedure. Under that code, the Court to which the decree could be transferred was one established in what was British India because the Code extended to the territories of what was British India and it was not till the coming into force of Act 2 of 1951 on April 1, 1951, that the Indian Code was applied to the “Territories of India” which comprised Parts A, B and C States.

    4. It was contended by Mr N.S Bindra counsel for the respondent, that under Sections 38 & 39 of the Indian Code of Civil Procedure a decree could be sent for execution to any court, the expression “court” being understood as a place where justice was administered and for this reliance was placed on Manavala Goundan v. Kumarappa Reddy where the word “court” in Section 622 of the old Civil Procedure was defined as a place where justice is judicially administered; but that was in a case where it had to be determined whether a District Registrar was a court for the purpose of Civil Procedure Code. The definition as given in that case is not of any help in determining the question now before us because what we have to see is whether the Court at Morena even though it administered justice judicially was covered by the word “court” in Section 38 or not. As we have said above “court” in the section means a court to which the Indian Code of Civil Procedure applies and not any court. Similarly at the relevant time in Sections 40 and 42 of the Indian Code of Civil Procedure “court” necessarily meant a court to which Indian Civil Procedure code applied i.e a court in what was British India. The court at Morena not being such a court the decree could not be transferred to it under the Indian Code of Civil Procedure and Sections 38 and 39 were inapplicable to justify such a transfer.

    5. The decree, it was then argued, was executable under Section 43 of the Indian Civil Procedure Code as amended by the Adaptation of Laws Order of June 5, 1950, which had retrospective effect as from January 26, 1950. After the amendment that section reads:

    “43 Any decree passed—
    (a) by a civil court in Part B State, or
    (b)-(c) * * *
    may, if it cannot be executed within the jurisdiction of the court by which it was passed, be executed in manner herein provided within the jurisdiction of any court in the States”
    The argument was that in the present case the expression “in a Part B State” should be read as if the expression was “in a Part A State”. This again is not permissible for us. Section 43 has to be interpreted as it is and a court cannot read it as if its language was different from what it actually is. It is not permissible for this Court to amend the law as suggested. Besides the Indian Civil Procedure Code was not extended to Madhya Bharat till April 1, 1951, by Act 2 of 1951. The decrees of foreign courts were, under the Gwalior Code of which Morena was a part, not executable under Section 233 which required a suit to be brought on the basis of foreign decrees nor under the Madhya Bharat Code of Civil Procedure. The decree therefore could not be executed in Morena under Section 43 of the Indian Code of Civil Procedure.

    6. It was next argued that the appellant Firm was not a foreigner because it did not fall under the Foreigners' Act (31 of 1946) and reference was made to Section 2(a)(iii) which was amended by Act 38 of 1947 on December 15, 1947; but this Act is not relevant for the purpose of finding out whether the decree was a foreign decree or not because the execution of decrees is governed by the provisions of the Code of Civil Procedure and not by the Foreigners Act. Under the former a decree can be executed by a court which passed the decree or to which it was transferred for execution and the decree which could be transferred has to be a decree passed under the Code and the court to which it could be transferred has to be a court which was governed by the Indian Code of Civil Procedure. But in the present case it was not transferred to a court which at the time of the transfer was governed by the Indian Code of Civil Procedure and therefore the transfer was ineffective for the purpose of execution and as we have said above Section 43 of the Indian Code was inapplicable before Act 2 of 1951 to the State of Madhya Bharat. It is not necessary to go into the other questions raised if the above two questions are decided against the respondent.

    7. We therefore allow this appeal, set aside the judgment and order of the High Court and restore that of the executing court. The appellant will have its costs in this Court.

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    Firm Hansraj Nathuram v. Firm Lalji Raja And Sons
    (Apr 30, 1962)