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  • Civil Procedure Code (CPC)
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  • Civil Procedure Code (CPC)
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Smart Summary

Factual and Procedural Background

The respondent was a tenant in Premises No. 88, Chowk Bazar, Sultanganj, Bhagalpur, paying a monthly rent of Rs 60 to the original landlord, Shiv Narayan Chowdhury. After the landlord’s death in 1976, his widow, son, and two married daughters (the present appellants) were substituted as plaintiffs. Due to the respondent’s non-appearance, an ex parte decree for eviction and arrears of rent was passed on 2 September 1978.

The decree-holders sought execution in 1984 (Execution Case No. 29 of 1984). On 25 April 1985 the respondent filed objections under Section 47 read with Order 21 Rule 2 of the Code of Civil Procedure (CPC), asserting that an oral settlement with Appellant 2 had created a fresh tenancy at an enhanced rent of Rs 150 per month and waived earlier dues. The executing court dismissed these objections on 22 August 1989, but the Patna High Court, in Civil Revision No. 1980 of 1989, remanded the matter on 11 April 1994. After remand, the executing court allowed the objections on 31 January 1997. The appellants’ revision was dismissed by the High Court on 1 April 1998, leading to the present appeal before the Supreme Court.

Legal Issues Presented

  1. Whether an un-certified oral agreement purportedly adjusting an eviction decree can be recognised by an executing court in light of Order 21 Rule 2(3) CPC.
  2. Whether an agreement allegedly executed by one of several decree-holders (claimed to be “karta” of a joint Hindu family) can extinguish the rights created by a decree in favour of all decree-holders.

Arguments of the Parties

Appellants' Arguments

  • The eviction decree of 1978 remained intact because no application was made under Order 21 Rule 2 to certify any alleged adjustment.
  • Under Rule 2(3), an uncertified adjustment cannot be recognised by an executing court; therefore, the respondent’s objections were not maintainable.
  • The respondent’s story of a fresh tenancy is false; even if true, it involved only one heir and could not bind the other decree-holders.

Respondent's Arguments

  • Both the executing court and the High Court recorded concurrent findings that a fresh tenancy at Rs 150 per month had been created, thereby satisfying and adjusting the decree.
  • Because the decree stood adjusted, the appellants were not entitled to seek execution.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Sultana Begum v. Prem Chand Jain (1997) 1 SCC 373 Non-certified payments or adjustments under Order 21 Rule 2 cannot be recognised by the executing court. The Court relied on this authority to hold that, in the absence of certification, the alleged settlement could not defeat execution of the decree.

Court's Reasoning and Analysis

The Supreme Court examined Order 21 Rule 2 CPC, emphasising that:

  • Any adjustment of a decree must be certified to the executing court by the decree-holder, or, on application, by the judgment-debtor.
  • Sub-rule (3) expressly bars recognition of uncertified adjustments.

It was undisputed that neither party sought certification of the alleged oral settlement. Citing Sultana Begum, the Court reiterated that uncertified adjustments are legally ineffective in execution proceedings. Consequently, the executing court had no jurisdiction to investigate the respondent’s Section 47 objections.

The Court further noted that the respondent’s reliance on Appellant 2 as “karta” of a joint Hindu family was unsubstantiated. Even if a family existed, a private agreement with only one of four decree-holders could not extinguish the decree in favour of the others.

Because the objections were legally untenable and no certification existed, the earlier orders allowing them were erroneous.

Holding and Implications

Appeal Allowed. The orders of the executing court and the High Court are set aside. The respondent’s objections under Section 47 read with Order 21 Rule 2 CPC are dismissed, and the eviction decree shall be executed. Costs are awarded to the appellants.

Implications: The judgment reinforces the mandatory nature of Order 21 Rule 2(3) CPC, confirming that private, uncertified arrangements cannot impede execution of decrees. It underscores the need for decree-holders or judgment-debtors to follow formal certification procedures if a decree is adjusted out of court.

    Badamo Devi And Others v. Sagar Sharma .

    1. Leave granted.

    2. The respondent was the tenant of one Shiv Narayan Chowdhury in respect of Premises No. 88, Chowk Bazar, Sultanganj, Bhagalpur on a monthly rent of Rs 60. A suit for his eviction was filed by Shiv Narayan Chowdhury who died during the pendency of the suit in 1976 and was substituted by the present appellants.

    3. Since the respondent did not put in any appearance in the suit, an ex parte decree for eviction and arrears of rent was passed against him on 2-9-1978. The decree was put to execution in 1984 and an Execution Case No. 29 of 1984 was registered in which the respondent filed objections under Section 47 read with Order 21 Rule 2 CPC on 25-4-1985. These objections were registered as Miscellaneous Case No. 11 of 1985 in which it was set out that under an oral settlement with Appellant 2, made outside the court, he was allowed to stay in the premises in question as a tenant on a fresh tenancy on an enhanced rent of Rs 150 p.m He further pleaded that all previous dues were waived by Appellant 2 who accepted the rent at the enhanced rate and also granted receipts to him.

    4. The appellants denied the agreement set up by the respondent and contended that the case set up by the respondent that a fresh tenancy at an enhanced rent was created in his favour was false. It was also contended that the decree passed against the respondent ought to have been executed and the agreement set up by him should not have been recognised by the High Court or the executing court nor should they have certified the said agreement.

    5. Originally, the objections filed by the respondent were dismissed by the executing court on 22-8-1989 but the High Court in Civil Revision Petition No. 1980 of 1989 set aside that order and remanded the case by its judgment dated 11-4-1994 to the executing court for a fresh decision. After remand, the executing court by its order dated 31-1-1997 allowed the objections under Section 47 CPC against which the appellants filed the revision before the Patna High Court which was dismissed on 1-4-1998. It is against this decision that the present appeal has been filed.

    6. It is contended by the learned counsel for the appellants that the eviction decree was passed against the tenant in 1978 and if there was an agreement between the appellants and the respondent, the same should have been brought to the notice of the Court for being certified and since this was not done, it could not have been recognised subsequently at the time of the execution of the decree. The executing court and the High Court were wholly wrong in not giving effect to the mandatory provisions contained under Order 21 Rule 2(3) CPC.

    7. Learned counsel for the respondent, on the contrary, has contended that since a finding of fact has been recorded by the executing court as also by the High Court that there was, in fact, an agreement entered into between the parties under which a fresh tenancy was created in favour of the respondent at an enhanced rent of Rs 150 p.m, the appellants were not entitled to seek the execution of decree as the decree stood adjusted and satisfied.

    8. Order 21 Rule 2 provides as under:

    “2. Payment out of court to decree-holder.—(1) Where any money payable under a decree of any kind is paid out of court, or the decree of any kind is otherwise adjusted in whole or in part to the satisfaction of the decree-holder, the decree-holder shall certify such payment or adjustment to the court whose duty it is to execute the decree, and the court shall record the same accordingly.

    (2) The judgment-debtor or any person who has become surety for the judgment-debtor also may inform the court of such payment or adjustment, and apply to the court to issue a notice to the decree-holder to show cause, on a day to be fixed by the court, why such payment or adjustment should not be recorded as certified; and if, after service of such notice, the decree-holder fails to show cause why the payment or adjustment should not be recorded as certified, the court shall record the same accordingly.

    (2-A) No payment or adjustment shall be recorded at the instance of the judgment-debtor unless—

    (a) the payment is made in the manner provided in Rule 1, or

    (b) the payment or adjustment is proved by documentary evidence; or

    (c) the payment or adjustment is admitted by, or on behalf of, the decree-holder in his reply to the notice given under sub-rule (2) of Rule 1, or before the court.

    (3) A payment or adjustment, which has not been certified or recorded as aforesaid, shall not be recognised by any court executing the decree.”

    9. Under this rule, if any payment due under the decree is made out of court or a decree of any kind is otherwise adjusted in whole or in part to the satisfaction of the decree-holder, it becomes the duty of the decree-holder to certify such payment or adjustment to the court and the court has to record the same. Under sub-rule (2) of Rule 2 of Order 21, a right has also been given to the judgment-debtor to apply to the court for certifying the payment or adjustment. If any application to this effect is made by the judgment-debtor, the court after issuing notice to the decree-holder would record the said adjustment or payment provided no cause is shown by the decree-holder. Sub-rule (3) of Rule 2 of Order 21 provides that a payment or adjustment which has not been certified would not be recognised by any court executing the decree.

    10. Admittedly, neither the decree-holder nor the respondent had applied to the Court for certification of the compromise entered into between the parties which had the effect of adjustment of the decree in its entirety. What would be the effect of non-compliance with the provisions of Order 21 Rule 2 was considered by this Court in Sultana Begum v. Prem Chand Jain (1997) 1 SCC 373 in which the entire case-law was reviewed and it was laid down that any payment or adjustment which is not certified under Order 21 Rule 2 would not be recognised by the executing court. Since the respondent had not approached the Court under Order 21 Rule 2 for certifying the adjustment of the decree in terms of the so-called agreement between him and Appellant 2, the objections filed under Section 47 CPC before the executing court were not maintainable and no investigation was required to be done in those objections.

    11. Apart from the above, the respondent claims to have entered into an agreement with Appellant 2 in his capacity as “karta” of the joint Hindu family. On the death of the original owner, namely, Shiv Narayan Chowdhury in 1976, the present appellants were substituted as his heirs in the suit. Appellant 1 is the widow of the original owner; Appellant 2 is the son and Appellants 3 and 4 are the married daughters of Shiv Narayan Chowdhury. Curiously, both the courts are silent on this aspect of the matter whether there was a joint Hindu family comprising of the appellants as members of that family and whether Appellant 2 was the “karta”.

    12. This plea was raised in the objections, perhaps, to overcome the glaring fact that the decree for eviction against the respondent was passed in favour of four persons, namely, the present appellants, while the so-called agreement of fresh tenancy was entered into with only one of them. That agreement, obviously, would not have the effect of compromising the claims of the three other decree-holders or destroying the decree in their favour.

    13. In any case, since the objections under Section 47 CPC were not maintainable and no investigation was required to be done as regards the adjustment of decree as the so-called agreement was not certified nor had the respondent approached the Court for that purpose, the appeal has to be allowed.

    14. For the reasons stated above, the appeal is allowed. The judgments passed by the executing court as also by the High Court are set aside and the objections filed by the respondent under Section 47 read with Order 21 Rule 2 CPC are dismissed with the direction that the decree for ejectment passed against the respondent shall be executed against him. The appellants are also entitled to their cost.

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    Comments

    Badamo Devi And Others v. Sagar Sharma .
    (Apr 1, 1999)