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Smart Summary

Factual and Procedural Background

The plaintiff sued for recovery of possession of immovable property, alleging that the property had been leased to defendants 1 and 2 under a registered lease deed dated 20-11-1123. Defendants 1 and 2 denied that the lease came into effect and asserted they had not taken possession.

The plaintiff applied for the appointment of a receiver; the trial Court granted that relief by an order dated 1-2-1952. When the receiver attempted to take possession, he was obstructed by the petitioner (a non-party to the suit) and the petitioner's brother. The receiver reported he could not obtain possession and sought police aid. The trial Court directed notice to the obstructors.

The petitioner filed C.M.P. No. 629 dated 11-2-1952 claiming ownership by his tarwad and independent possession since the kamavan’s death in 1105; he maintained that the plaintiff (the kamavan’s widow) never had rights or possession. He sought recognition of his possession and discharge of the receiver. The plaintiff filed objections, and after an enquiry the trial Court dismissed C.M.P. No. 629.

The petitioner appealed to the District Court, which dismissed the appeal on the short ground that the trial Court's order was not appealable. The petitioner then filed the present Civil Revision Petition in this Court challenging that dismissal.

Legal Issues Presented

  1. Whether the trial Court's order dismissing C.M.P. No. 629 (challenging the receiver's interference with the petitioner's possession) was an appealable order.
  2. Whether an order removing (or refusing to protect from removal) a person from possession comes within Rule 1(b) of Order 40 of the Civil Procedure Code (and thus, by Order 43 Rule 1(s), is appealable).
  3. Whether the words "any person" in Rule 1(b) of Order 40 include non-parties (and thereby permit a non-party to prosecute an appeal against such an order).

Arguments of the Parties

Petitioner's Arguments

  • The order of the trial Court falls within Rule 1(b) of Order 40 CPC (which empowers the Court to remove any person from the possession or custody of the property) and is therefore an order made under Order 40 Rule 1.
  • Orders under Order 40 Rule 1 are made appealable by Rule 1(s) of Order 43; consequently, the petitioner (allegedly affected by the receiver's attempted removal) was entitled to appeal the trial Court's order.

Respondent's Arguments

  • The respondent relied upon authorities that held similar orders were not appealable and argued that the appeal to the District Court was incompetent. Specific precedents (e.g., Eastern Mortgage and A.U. John) were pressed to support the view that no appeal lay.
  • Some earlier decisions (cited by the respondent) had declined to treat a refusal to discharge or remove a receiver as an appealable order; those decisions were presented to justify dismissal of the appeal for lack of competence.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court in This Opinion
R. Hudson v. J.P. Morgan, 36 Cal 713 (A) Held an order authorising a receiver to remove a person from possession was made under Section 503(b) of the old CPC (corresponding to Order 40 Rule 1) and was appealable (under Section 588, Cl. 24 of the old Code). The Court treated this decision as supportive of the proposition that orders removing a person from possession fall within Order 40 Rule 1 and are appealable; the passage was extracted and relied upon.
Ramaswami Pillai v. Janald Animal, AIR 1923 Mad 129 (B) Held that refusal to direct a receiver not to interfere with a person's possession effectively amounted to removing that person from possession and, hence, the order was within Order 40 Rule 1(b) and appealable. The Court cited and followed this decision as consistent with the view that such orders are appealable.
Agabeg v. Mt. Sundari, AIR 1918 Pat 301 (C) Adopted the view in 36 Cal 713 that orders under the relevant rule were appealable. The Court noted that Patna High Court followed the view that such orders are appealable.
Ramswarup v. Raghvmandan, AIR 1924 Nag 165 (D) Applied the decisions in 36 Cal 713 and AIR 1918 Pat 301 to uphold appealability in similar circumstances. The Court recorded that this decision followed the same line of authority supporting appealability.
Mt. Dulhin Sona Kuer v. Jamil Ahmad, AIR 1918 Pat 668 (E) Patna High Court decision adopting the view that removal orders were appealable. Cited as another Patna decision consistent with the appealability line of authorities.
Anandi Lal v. Ram Samp, AIR 1936 All 495 (F) Full Bench held the words "any person" in Order 40 Rule 1(b) are comprehensive and include parties as well as non-parties. The Court relied on this Full Bench authority to show the breadth of the phrase "any person" in Order 40 Rule 1(b).
K.V Rayarappan Nayanar v. K.V.V. Madhavi Amma, AIR 1950 FC 140 (G) Federal Court held an order removing a receiver was passed in exercise of powers under Order 40 Rule 1; the power to remove was implied (invoking Section 16 of the General Clauses Act); orders under Order 40 Rule 1 are appealable (Order 43 Rule 1(s) renders such orders appealable). It disapproved contrary reported decisions. The present Court treated this Federal Court decision as authoritative, followed it, and relied upon it to hold that an appeal against the trial Court's order was competent.
Ramaswarni Naidu v. Ayyalu Naidu, AIR 1924 Mad 614 (H) Earlier decision expressing the view that certain refusal/ removal matters were not appealable (distinguished or disapproved by Federal Court). The Federal Court disapproved this decision; the present Court noted that Federal Court's disapproval undermines its continuing authority.
Eastern Mortgage & Agency Co. Ltd. v. Premananda Saha, AIR 1916 Cal 824 (I) Earlier decision relied on by respondent to argue against appealability of certain orders; treated by Federal Court as not giving effect to Section 16 of the General Clauses Act. The present Court noted the Federal Court's disapproval of this line of authority and therefore did not treat it as controlling.
A.U. John v. Agra United Mills Ltd., AIR 1931 All 72 (J) Earlier authority used to argue that appealability must be expressly conferred and cannot be implied by analogy; relied on by respondents in earlier cases. The Federal Court disapproved this decision for failing to give effect to Section 16 of the General Clauses Act; the present Court followed the Federal Court and declined to treat A.U. John as good law.
Inderdeo Narain Singh v. Gouri Shanker, AIR 1918 Pat 364 (K) Disposed of a preliminary objection to appeal on the ground that the appellant was not a party; the decision contained no extended legal discussion. The Court observed that this decision offered no detailed legal analysis and noted its short-form disposition in the record.
Kochu Kumari v. Krishnan Janardhanan, AIR 1952 Trav-C 248 (L) Single Judge decision overruling a preliminary objection that revision was incompetent as the order was appealable; relied upon Surendra Nath v. Nagar Chand (AIR 1947 Pat 418). The present Division Bench declined to follow this Single Judge decision because the Patna authority it relied upon had been superseded by the Federal Court decision; the Court explicitly declined to follow Kochu Kumari.
Surendra Nath v. Nagar Chand, AIR 1947 Pat 418 (M) Held that a right of appeal against refusal to discharge a receiver was not to be presumed by implication; relied on to deny appealability in some Single Judge decisions. The present Court held that Surendra Nath can no longer be considered good law in view of the Federal Court decision in K.V. Rayarappan (G), and therefore declined to follow decisions based on it.

Court's Reasoning and Analysis

The Court identified the sole point for decision as whether the order passed by the trial Court (dismissing the petition filed by the non-party obstructing the receiver) was appealable. Because the lower appellate Court did not express any opinion on the merits, the analysis was limited to the procedural question of competence to appeal.

The Court examined the language of Order 40 Rule 1 (which empowers a Court to appoint a receiver, remove any person from possession, commit the property to the receiver, and confer powers upon the receiver), and noted that Order 43 Rule 1(s) makes all orders under Rules 1 and 4 of Order 40 appealable. The central sub-question was whether the trial Court's order fell under Order 40 Rule 1.

The Court conducted a careful survey of precedent. It recounted a consistent line of authorities (including decisions of the Calcutta, Madras, Patna, Nagpur and Allahabad High Courts) that treated orders affecting a person's possession as falling within Order 40 Rule 1 and therefore appealable. Crucially, the Federal Court in K.V. Rayarappan Nayanar v. K.V.V. Madhavi Amma (AIR 1950 FC 140) resolved conflicting authorities by holding that an order removing a receiver (or an order removing a person from possession under the Court's powers) is an order made in exercise of the powers under Order 40 Rule 1, and that the power to remove a receiver is implied having regard to Section 16 of the General Clauses Act. The Federal Court further observed that Order 43 Rule 1(s) expressly makes orders under Order 40 Rule 1 appealable and disapproved earlier decisions to the contrary.

The present Court accepted and followed the Federal Court's authoritative conclusion. It noted that some Single Judge decisions which had reached contrary results did so by relying on cases subsequently disapproved by the Federal Court; accordingly, those Single Judge decisions could not be treated as good law.

Applying that precedent to the facts before it, the Court concluded that the petitioner's challenge to the receiver's interference with his possession raised precisely the sort of adjudication that falls within Order 40 Rule 1(b) (removal of a person from possession). Consequently the order of the trial Court was appealable and the lower appellate Court erred in dismissing the appeal as incompetent without deciding the merits.

Holding and Implications

Holding: The Civil Revision Petition is allowed. The Court held that the appeal before the lower appellate Court was competent because the trial Court's order came within Order 40 Rule 1 and was therefore appealable. The Court reversed the lower appellate Court's order dismissing the appeal as not competent, remanded the case to the lower appellate Court for disposal on the merits, and allowed the revision with costs.

Implications:

  • Direct effect on the parties: the dismissal of the District Court was reversed; the matter is remitted to the lower appellate Court to decide the appeal on its merits. The petitioner succeeds in establishing the competence of his appeal and is awarded costs in this Court.
  • Broader legal consequence: the Court followed and applied the Federal Court decision in K.V. Rayarappan Nayanar v. K.V.V. Madhavi Amma (AIR 1950 FC 140), which treats orders under Order 40 Rule 1 (including those removing a person from possession or affecting a receiver) as appealable. The opinion expressly declines to follow Single Judge authority that rests on Patna decisions subsequently superseded by the Federal Court. The Court did not purport to set a new precedent independent of the Federal Court's ruling; rather, it applied the Federal Court’s view to the present facts.

Revision allowed.

    Velayudhan Narayanan v. Mathevan Narayani And Others Counter Petitioners.

    T.K Joseph, J.:— This Civil Revision Petition has been preferred by one who is not a party to the suit. The plaintiff sued for recovery of possession of property from the defendants on the allegation that the same was leased to defendants 1 and 2 under a registered lease deed dated 20-11-1123. Defendants 1 and 2 contended that the lease did not come into effect and that they did not get possession of the property.

    2. The plaintiff applied for the appointment of a receiver for the property and this was allowed by order dated 1-2-1952. When the receiver went to take possession, he was obstructed by the petitioner and his brother and the receiver reported that he was unable to obtain possession. He also sought for police aid to take possession of the property. On this, the Court ordered notice to the obstructors and the petitioner filed C.M.P No. 629 dated 11-2-1952 stating that the property belonged to his tarwad, that he was in independent possession ever since the death of the kamavan in 1105 and that plaintiff 1 who was the widow of the kamavan had no rights to or possession of the property at any time. He prayed for upholding his possession and for discharge of the receiver, as he was not liable to be dispossessed in this suit. The plaintiff filed objections to this and after an elaborate enquiry C.M.P No. 629 was dismissed. The petitioner preferred an appeal to the District Court which was dismissed on the short ground that the order passed by the trial Court was not appealable. He has therefore preferred this Civil Revision Petition.

    3. As the lower appellate Court has not expressed any opinion on the merits, the only point for decision in this revision petition is whether the order passed by the trial Court is an appealable one. As decisions on this point were not uniform the Civil Revision Petition was referred to a Division Bench for decision.

    4. The petitioner's case is that the order falls under R. 1(b) of O. 40 of the CPC, which is as follows:

    “(1) “Where it appears to the Court to be just and convenient, the Court may by order—

    (a) appoint a receiver of any property, whether before or after the decree;

    (b) remove any person from the possession or custody of the property;

    (c) commit the same to the possession, custody or management of the receiver; and

    (d) cooler upon the receiver all such powers, as to bringing and defending suits and for the realization, management, protection, preservation and improvement of the property, the collection of the rents and profits thereof, the application, and disposal of such rents and profits and the execution of documents as the owner himself has, or such of those powers as the Court thinks fit.

    (2) Nothing in this rule shall authorize the Court to remove from the possession or custody of the property any person whom any party to the suit has not a present right so to remove.”

    5. Rule 1(s) of O. 43 provides that all orders under Rr. 1 and 4 of O. 40 are appealable. Rule 4 has no application here and the question is whether the order falls under R. 1 of O. 40.

    6. This question arose for decision in — “R. Hudson v. J.P Morgan’, 36 Cal 713 (A), where a receiver was appointed in a mortgage suit and the appellant contended that he was not liable to be removed from possession. His objection was overruled and the Court ordered that he be removed from possession. A preliminary objection raised by the respondent that no appeal lay was overruled, holding that the order was one under Section 503(b) of the old CPC, corresponding to R. 1 of O. 40.

    7. The following passage in the judgment can with advantage be extracted:

    “As regards the preliminary objection taken on behalf of the respondents, we are of opinion that there is no substance in it. The order of the Subordinate Judge of 11-12-1908, under which the receiver is authorised to remove Hudson and to take possession of the properties now in his custody, was undoubtedly made under S. 503, Cl. (b) of the Code of 1882. That order is consequently appealable under S. 588, Cl. (24). It was not necessary for the appellant to challenge the order of 12-5-1903 by which the receiver was appointed. He was no party to that order, nor does it appear that he had any notice of it he was not affected by the proceedings for the appointment of a receiver, till the latter made an attempt to deprive him of possession of the disputed properties. As soon as there was an adjudication between him and the receiver as to the title of the latter to remove him from possession, he became entitled to question the validity of the adverse order. We must consequently overrule the preliminary objection and consider the case on the merits.”

    8. This decision was followed by the High Court of Madras in — ‘Ramaswami Pillai v. Janald Animal’, AIR 1923 Mad 129 (B). That was a suit between the mother and the widow of a deceased person regarding title to the estate of the deceased. A receiver was appointed during the pendency of the suit and the appellant who was not a party to the suit filed an application asking that the Court should direct the receiver not to interfere with his rights in the crops on 200 acres of land which he had purchased from the widow. This application was dismissed and he filed an appeal.

    9. It was held that when the Court refused to direct its officer, the receiver, not to interfere with the appellant's possession of the crops it in effect removed him from the possession or custody of the property and that order was one under R. 1(b) of O. 40. It was accordingly held that an appeal lay against the order.

    10. Reliance was also placed by the appellant on a decision of the Patna High Court in — ‘Agabeg v. Mt. Sundari’, AIR 1918 Pat 301 (2)(C) which also followed the view held in 36 Cal 713 (A).

    11. In — ‘Ramswarup v. Raghvmandan’, AIR 1924 Nag 165 (D), Baker, J.C followed the decisions in 36 Cal 713 (A) and AIR 1918 Pat 301 (2)(C).

    12. The Patna High Court adopted this view in a later decision in — ‘Mt. Dulhin Sona Kuer v. Jamil Ahmad’, AIR 1918 Pat 668 (E).

    13. Reference may also be made to a decision of the Allahabad High Court in — ‘Anandi Lal v. Ram Samp’, AIR 1936 All 495 (FB)(F). Sulaiman, C.J who delivered the opinion of the Full Bench held that the words “any person” in R. 1(b) of O. 40 were comprehensive to include parties as well as non-parties. It may be mentioned that the question in that case was whether the words “any person” would include parties to the suit.

    14. Most of the decisions cited by the learned counsel for the respondent came up for consideration by the Federal Court in — ‘K.V Rayarappan Nayanar v. K.V.V Madhavi Amma”, AIR 1950 FC 140 (G). The point for decision in that case was whether an appeal would lie against an order removing a receiver. The appeal was from an order of the High Court of Madras which held that while R. 1 of O. 40, in express terms empowered the Court to appoint a receiver, no mention was made in the rule authorising it to remove him and that an appeal did not therefore he from such an order as it was outside the ambit of the rule. The Federal Court reversed this decision holding that an order removing a receiver was cue which was passed in exercise of the Court's powers under R. 1 of O. 40. Even though there was no express provision in the said rule empowering a Court to remove a receiver it was held that this power was implied in view of Section 16 of the General Clauses Act.

    15. It was also pointed out by the Federal Court that while in certain cases appeals were limited only to certain specific orders passed under certain rules of the CPC, all orders made under O. 40, R. 1 have been made appealable under O. 43, R. 1(s). Reported decisions laying down the opposite view were disapproved. One of such cases was — ‘Ramaswarni Naidu v. Ayyalu Naidu’, AIR 1924 Mad 614 (H), which was relied on by the respondent. The following observation of the Federal Court is instructive:

    “In — ‘Ramaswami Naidu v. Ayyalu Naidu (H)’ a similar opinion was expressed. There the order appealed against was one refusing to remove a person from his position as receiver. This distinction, however does not materially affect the question. In this case also no reference was made to Section 16 of the General Clauses Act.”

    16. Reliance was placed by the respondent on the decisions in — ‘Eastern Mortgage and Agency Co., Ltd. v. Premananda Saha’, AIR 1916 Cal 824 (I) and — ‘A.U John v. Agra United Mills, Ltd.’, AIR 1931 All 72 (J). These decisions were referred to with disapproval by the Federal Court on the ground that effect was not given to Section 16 of the General Clauses Act. Another decision relied on by tile respondent is —‘Inderdco Narain Singh v. Gouri Shanker’, AIR 1918 Pat 364 (K). There is no discussion of the question of law or reference to decided cases, the question being disposed of in the following terms:

    “A preliminary objection has been made that no appeal lies. This objection must be given effect to. Inderdeo Narayan was not a party to the suit and therefore he has no right of appeal to this Court. The appeals are therefore dismissed.’’

    17. There is one decision of a Single Judge of this Court in — ‘Kochu Kumari… v. Krishnan Janardhanan…Counter Petitioner.’, AIR 1952 Trav-C 248 (L). This was a civil revision petition against an order refusing to remove a receiver. A preliminary objection was raised in that case that the revision was not competent as the order was appealable. This objection was overruled on the basis of the decision of the Patna High Court in — ‘Surchdra Nath v. Nagar Chand’, AIR 1947 Pat 418 (M). It was observed in that case:

    “It is conceded that the right of appeal against an order refusing to discharge a receiver has not been expressly conferred by any of the clauses of O. 43, but it is contended that the right of appeal must be deemed to have been conferred by implication, because the authority which has power to appoint a receiver must also by implication be deemed to have power to remove, and if triers is a refusal to remove a receiver that refusal must have been ordered under the powers conferred by O. 40, R. 1. In my opinion, the best reply to this line of reasoning is offered in the case of — ‘A.U John (J)’, just referred to, in these words: “Where a right of appeal has to be expressly conferred by statute, it cannot be presumed to exist by recourse to a rule of analogy or a rule of logic.” I have, therefore, no hesitation in holding that this appeal cannot be entertained as an appeal.”

    18. Fazl Ali, C.J relied on AIR 1931 All 72 (J), which was one of the cases expressly overruled by the Federal Court. In view of the decision of the Federal Court, the decision in — ‘Surendra Nath v. Nagar Chand (M)’ can no longer be considered good law. It may also be mentioned that the decision of the Federal Court was not brought to the notice of the learned Judge who decided — ‘Kochu Kumari… v. Krishnan Janardhanan…Counter Petitioner. (L)’. We therefore decline to follow that decision. Wo hold that the appeal before the lower appellate Court was competent. The lower appellate Court did not express any opinion on the merits of the case and we are therefore obliged to reverse the decision and remand the case. The Civil Revision Petition is allowed with costs and the case is remanded to the lower appellate Court for disposal on the merits.

    19. Revision allowed.

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    Velayudhan Narayanan v. Mathevan Narayani And Others Counter Petitioners.
    (Oct 11, 1954)