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Maturi Krishnamurty v. Maturi Lakshminarayana And Others

Andhra Pradesh High Court
Sep 24, 1968
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Summary of the Opinion

Factual and Procedural Background

One Maturi Sambasi Varao obtained a final decree for recovery of over Rs. 15,000 against Krishnamurty (the appellant) in O. S. No. 17 of 1942 before the District Munsif, Rajahmundry. That decree was ultimately confirmed by the High Court in S. A. No. 2207 of 1952. During the pendency of that appeal, Sambasivarao was adjudged insolvent in I. P. No. 1 of 1950 before the District Court, East Godavari at Rajahmundry; the official receiver was impleaded in S. A. No. 2207 of 1952.

In the administration of the insolvent's estate, the official receiver sold Sambasivarao's only 1/4th share in the decree. Sambasivarao's sons — Lajapathi Raju, Lakshminarayana and Colonol Raju — served notice declaring their intention to be divided with their father. Lajapathi Raju and Lakshminarayana filed E.A. No. 926 of 1961 under Order 21, Rule 15, Civil Procedure Code (CPC), seeking permission to execute the decree on behalf of their younger brother Colonol Raju as well. On the same day they filed E.As. Nos. 925 and 927 of 1961 for transmission of the decree to the Agency Munsif, Bhadrachalam, and for executing the decree to the extent of their 3/4th share.

The appellant (judgment-debtor) resisted, contending the petitioners were neither decree-holders nor transferees of the decree. The executing court accepted this contention and dismissed all three applications. The learned Additional District Judge, East Godavari (hearing the appeals together), reversed that decision and allowed the appeals, holding that:

  • the petitioners should be deemed transferees of the decree by operation of law because their father was adjudged insolvent and his 1/4th share had been sold; and
  • in any event, the petitioners' right to execute the decree could not be questioned with regard to the provisions of Sections 146 and 151 of the CPC.
The judgment-debtor (appellant) preferred the present appeals challenging that reversal.

Legal Issues Presented

  1. Whether the respondents are, in law, entitled to execute the decree in O. S. No. 17 of 1942 to the extent of their asserted 3/4th share.
  2. Whether the respondents qualify as "decree-holders" within the meaning of Section 2(3) CPC or as "transferees" of the decree by assignment in writing or by operation of law under Order 21, Rule 16 CPC.
  3. Whether Section 146 CPC (allowing proceedings by or against persons claiming under another) or Section 151 CPC (inherent powers) can be invoked to permit the respondents to execute the decree despite not being decree-holders or transferees within the specific provisions of the Code.

Arguments of the Parties

Appellant's Arguments

  • The respondents are not decree-holders within the meaning of Section 2(3) CPC (they are not persons in whose favour the decree has been passed) and thus are not ordinarily entitled to apply for execution of the decree.
  • The respondents are not transferees by assignment in writing nor by operation of law as required by Order 21, Rule 16 CPC; there is no written assignment and no applicable operation-of-law transfer.
  • The lower appellate court's reliance on Narain Sarup v. Daya Shanker is misplaced and inapplicable to the present facts.
  • Section 146 CPC does not apply because the respondents are not "claiming under" Sambasivarao; their claim is based on birth in a Hindu undivided family independent of their father.
  • Section 151 CPC (inherent powers) cannot be resorted to to grant relief that would contravene or circumvent specific provisions of the Code; inherent power cannot be used where alternative remedies are available or where the Code expressly restricts the relief.

Respondents' Arguments

  • The lower appellate court found the respondents should be deemed transferees of the decree to the extent of their 3/4th share by operation of law because their father was adjudged insolvent and his 1/4th share had been sold.
  • The respondents relied on Narain Sarup v. Daya Shanker to support a transfer-by-operation-of-law theory (analogy with succession/managership of a joint family).
  • The respondents contended that Section 146 CPC could be invoked (or construed liberally) to permit them to execute the decree, even if they are not strictly claiming under Sambasivarao.
  • They also relied on Section 151 CPC and the approach in Muthiah Chettiar v. Krishna Doss Varu (full bench, Madras) to argue that courts should apply nearest provisions or use inherent powers to prevent failures of justice in cases not explicitly covered by a particular rule of the Code.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Narain Sarup v. Daya Shanker, A.I.R. 1938 All. 258 Held that transfer of a decree by operation of law could cover succession of manager of a joint Hindu family, allowing the successor to apply for execution under Order 21, Rule 16. The court distinguished this authority: its reasoning turned on succession of a single manager to another (sole manager of a joint family). The present case involved three sons jointly seeking execution to the extent of 3/4th and a claimed disruption of joint status; Narain Sarup was held inapplicable and thus did not assist the respondents.
Jugalkishore v. Raw Cotton Co. (1955) S.C.J. 371; (1955) 1 S.C.R. 1369; A.I.R. 1955 S.C. ... Explains that "transfer by operation of law" is not confined to death or devolution; it requires passing of rights by force of some law (statutory or otherwise). The court acknowledged the general principle but held that this authority did not support the respondents' specific contention that insolvency adjudication of a Hindu father effects a transfer of the decree shares to his sons by operation of law.
Ramanathan Chettiyar v. Raghavendra Row, (1912) 16 Indian Cases 807 Holds that when a decree obtained by one member of a Hindu family is allocated at a family partition to another coparcener, such allotment alone does not constitute a transfer by operation of law; execution requires an instrument in writing. The court relied on this authority to support the proposition that allotment at partition does not amount to transfer by operation of law; thus the respondents cannot execute the decree absent assignment in writing.
Sankara Pattar v. Ramanath Ayyar, (1954) 2 M.L.J. 155 Similar principle that allocation at partition does not effect a transfer by operation of law sufficient to permit execution under Order 21, Rule 16 without a written assignment. Used to reinforce the conclusion that the respondents' asserted 3/4th share is not a transfer by operation of law enabling execution.
Saila Bala v. Nirmala Sundari, (1958) S.C.J. 743; (1958) S.C.R. 1287; A.I.R. 1958 S.C. 394 Addressed the scope of Section 146 CPC and whether it applies to initiation and/or continuance of proceedings; emphasises liberal construction of beneficent provisions. The court noted respondents' reliance on this case but held it did not justify applying Section 146 where the section is inapplicable on its terms; the cited decision dealt with a different question (initiation vs. continuance) and did not support expanding Section 146 to cases to which it does not apply.
Muthiah Chettiar v. Krishna Doss Varu, (1921) I.L.R. 44 Mad. 919; 41 M.L.J. 316; A.I.R. 1921 Mad. 599 Full Bench observation that where code sections do not provide for particular facts, courts should apply nearest provisions with necessary modifications and Section 151 exists to prevent failure of justice. The court declined to extend the principle to the present case: that decision concerned permitting a transferee of part of a decree (pending execution) to come on record where transferee was claiming under the decree-holder; here there was no transfer and the respondents were not claiming under the decree-holder, so Muthiah Chettiar did not aid them.

Court's Reasoning and Analysis

The court's analysis proceeded in a stepwise manner addressing the statutory categories of persons entitled to execute a decree and the specific facts of the case:

  1. Status as decree-holders: The respondents admitted they were not decree-holders within the meaning of Section 2(3) CPC because the decree had not been passed in their favour. The court confirmed that ordinarily only a decree-holder can apply for execution.
  2. Order 21, Rule 16 CPC (transferees): The court considered whether the respondents were transferees under Order 21, Rule 16 (transfer by assignment in writing or by operation of law). The respondents did not claim any written assignment. The lower appellate court relied on Narain Sarup v. Daya Shanker to hold a transfer by operation of law, but the court distinguished that case: Narain Sarup involved succession of a manager of a joint family (one person succeeding another), whereas the present case involved three sons jointly seeking execution to the extent of 3/4th without evidence of succession or transfer by law to them. The court further noted the general proposition (from Jugalkishore) that operation-of-law transfers require passing of rights by force of law, but found no authority establishing that adjudication of a Hindu father as insolvent effects transfer of decree shares to his sons by operation of law. The court also observed authorities (Ramanathan Chettiyar and Sankara Pattar) holding that allocation at partition does not amount to transfer by operation of law sufficient to permit execution without a written assignment.
  3. Section 146 CPC: The court examined whether Section 146 (proceedings by or against persons claiming under another) could be invoked. It concluded Section 146 is applicable only where the applicant claims under the person in whose name proceedings stand. Here the respondents' claim to a 3/4th share was said to be independent — based on birth in a Hindu undivided family — and not a claim "under" Sambasivarao. Consequently Section 146 did not apply.
  4. Arguments for liberal construction and reliance on Saila Bala: The court accepted that Section 146 is beneficent and should be construed liberally, but held that liberal construction does not permit applying a section to a case to which it is inapplicable on its terms. Saila Bala addressed a different question and did not support invoking Section 146 where the respondents do not claim under the decree-holder.
  5. Section 151 CPC (inherent powers) and Muthiah Chettiar: The court considered whether inherent powers could be used to permit execution. It reiterated settled law that inherent powers may not be used to grant relief when alternative remedies exist or to do something expressly prohibited or excluded by the Code. Because the Code specifically identifies the categories of persons entitled to execute a decree (decree-holders, transferees by assignment or operation of law, joint decree-holders, and persons claiming under decree-holders), conferring execution rights on persons outside those categories by use of Section 151 would amount to doing what the Code disallows. The court also noted that the respondents had alternative remedies (e.g., suit for partition or obtaining assignment from the official receiver) which they had not pursued. Thus Section 151 could not be used to override specific Code provisions.
  6. Conclusion of analysis: Because there was neither assignment in writing nor transfer by operation of law to the respondents, and because Sections 146 and 151 were inapplicable or could not be permissibly extended to cover these facts, the respondents were not entitled to execute the decree to the extent of the claimed 3/4th share.

Holding and Implications

The appeals are allowed; the judgments and decrees of the lower appellate court are set aside and the decision of the executing court dismissing E.A. Nos. 925, 926 and 927 of 1961 is restored.

Consequences and immediate effects:

  • The respondents are not permitted to execute the decree to the extent of the 3/4th share claimed.
  • The executing court's dismissal of the respondents' execution applications is reinstated.
  • Each party will bear their respective costs of these appeals.

Broader implications: The opinion does not purport to establish any new broad principle beyond applying existing authority; it confirms that (a) mere birthright in a Hindu undivided family or an alleged disruption of joint status does not, without assignment in writing or a clear operation-of-law transfer, permit execution under Order 21, Rule 16 CPC, and (b) Sections 146 and 151 CPC cannot be used to circumvent the Code's specific categories for entitlement to execute decrees. No novel precedent was declared beyond the application and distinction of cited authorities to the facts.

Show all summary ...

(1) The facts giving rise to these appeals, which arise out of certain execution proceedings, may briefly be stated: one maturi sambasi varao obtained a final decree for recovery of over rs. 15,000 against krishnamurty, the appellant herein, in o. S. No. 17 of 1942 on the file of the district munsif, rajahmundry.

(2) This decree was ultimately confirmed by the high court with slight vaiiation in s. A. No. 2207 of 1952. During the pendency of this appeal, sambasivarao was adjudged insolvent in i. P. No. 1 of 1950 on the file of the district court, east godavari at rajahmundry with the result that the official receiver in whom his propertit. S vested, was impleaded as a party to s. A. No. 2207 of 1952. In the courss of the administration of the estate of the insolvent, the official receiver sold his only 1/4th share in the decree in o. S. No. 17 of 1942, ashis sons lajapathi raju, lakshminarayana and colonal raju seem to have served him with a notice declaring their intention to become divided with their father, sambasivarao. Lajapathiraju and lakshminarayana thereafter filed e. A. No. 926 of 1961 under order 21, rule 15, civil procedure code, for permission to execute the decree on behalf of their younger brother colonal raju also. On the same day they filed two more petitions, e. As. Nos. 925 and 927 of 1961 for transmission of the decree to the agency munsif, bhad - rachlam and for executing the decree to the extent of their 3 /4th share therein. The appellant (judgment - debtor) resisted all these applications contending inter alia that the petitioners are not entitled to any one of the reliefs claimed by them as they are neither decree - holders nor transferees of the decree. The executing court accepted this and accordingly dismissed all the three applications. The learned additional district judge, east godavari, to whom the matters were taken in appeal and who dealt with all the petitions together, reversed the decision of the executing court and allowed the appeals holding that the petitioners should be deemed to be transferees of the decree by operation of law as their father was adji'dged insolvent and his 1/4th share in the decree was already sold away ; and that even otherwise, the petitioners' right to execute the decree cannot be questioned having regard to the provisions of sections 146 and 151 of the code of civil procedure. Aggrieved by this decision, the judgment - debtor has preferred these appeals.

(3) The only question that arises for consideration is as to whether the respondents are entitled, in law, to execute the decree in o. S. No. 17 of 1942 to the extent of their 3/4th share therein. It is contended for the appellant that the respondents, not being decree - holders within the meaning of section 2 (3) or any other provision of the code, are not entitled to execute the decree even to the extent of their 3/4th share therein. It is only the decree - holder that can ordinarily apply for execution of a decree under the provisions of the code. Where, however, there is a transfer of the decree by assignment in writing or operation of law, the transferee is allowed to execute the decree under order 21, rule 16, civil procedure code. Order 21, rule 15 (1) likewise provides that where a decree has been passed jointly in favour of more persons than one, any one or more of such persons may, unless the decree imposes any condition to the contrary, apply for the execution of the whole decree for the benefit of them all, or where any of them has died, for the benefit of the survivors and the legal representatives of the deceased. The respondents are admittedly not decree - holders within the meaning of section 2 (3) of the code as they are not persons in whose favour the decree has been passed. Let us see if they are at least transferees under order 21, rule 16. This rule, in so far as it is relevant for our purpose, reads : -

"where a decree or, if a decree has been passed jointly in favour of two or more persons, the interest of any decree - holder in the decree is transferred by assignment in writing or by operation of law, the transferee may apply for execution of the decree to the court which passed it; and the decree may be executed in the same manner and subject to the same conditions as if the application were made by such decree - holder."

The respondents do not claim to be assignees in writing of the decree sought to be executed or any part thereof. Relying on narain sarup v. Daya shanker, a. I. R. 1938 all. 258. The lower appellate court held that the respondents should be deemed to be transferees of the decree, to the extent of their 3/4th share therein, by operation of law as their father, sambasivarao, who obtained the decree, has since been adjudged insolvent. The correctness of this finding is vehemently questioned on behalf of the appellant. The decision cited seems to be inapplicable to this case. In any view, it does not help the respondents to say that the adjudication of their father as insolvent had the effect of transferring to them a 3/4th share in the decree by operation of law. In that case, one har sarup obtained a decree for money in his capacity as manager of the joint family consisting of himself and his three sons on 27th october, 1930. After recovering one half of the amount covered by the decree, he disappeared and his whereabouts could not be known. His eldest son, narain sarup thereupon applied for execution of the decree on 19th april, 1934, i. E. , even before the period necessary to raise a presumption of har sarup's death had expired. The question then arose as to whether he was entitled to apply for execution of the decree standing in the name of his father. This was answered in the affirmative as can be seen from the following :

"if, however, the analogy of rules of procedure of order 21, civil procedure code, be necessary, then the rule which will apply is rule 16. That rule deals with the transfer of a decree by assignment in writing or by operation of law and presumably the rule is intended to cover all the cases of transfer by these two expressions. The present case of the succession of one manager to another, would come under the words "operation of law" and the present applicant is therefore entitled under that rule to apply for execution of the decree. There does not appear to be any special rule dealing with the cases of succession of managers of joint hindu families. Such cases of succession would not always be covered by the case of the death of the manager, because, there might be a case where the manager was incapacitated by illness or old age from acting as manager. Exactly the same point arises in the case of any group of persons where one person is entitled to act as manager or director and he is succeeded by another member of the group. We consider, therefore that the applicant was entitled to apply for execution of the decree. "

The reason which appears to have weighed with their lordships in coming to the conclusion that there was a transfer of the decree by operation of law in favour of narain sarup is that he succeeded his father as manager of the joint hindu family on behalf of which har sarup obtained the decree. But the instant case is not one in which the eldest of the sons of sambasivarao is seeking to execute the decree on the ground that after the adjudication of his father as insolvent, he has become the manager of the joint hindu family on behalf of which the decree was obtained. On the contrary, all the three sons of sambasivarao are seeking to execute the decree and that too, to the extent of only 3/4 on the ground that there was a disruption of the joint family status as a result of their having issued a notice for the purpose to the official receiver, soon after the adjudication of sambasivarao as insolvent. Narain sarup v. Daya shanker,a. I. R. 1938 all. 258 does not therefore help the respondents to say that there was a transfer of the decree to the extent of 3/4 in their favour by operation of law. It is true that transfers by operation of law are not intended to be confined to cases of death, devolution or succession and that in order to constitute a transfer of property " by operation of law ", all that is necessary is that there must be passing of one's rights in the property to another by force of some law, statutory or otherwise as indicated in jugalkishore v. Raw cotton co. (1955) s. C. J. 371 : (1955) 1 s. C. R. 1369: (1955) 1 m. L. J. (s. C.) 220 : a. I. R. 1955 s. C. But this decision does not in any way support the respondents' contention that the adjudication of their father had the effect of transferring 3/4th of the decree to them by operation of law. I have not been referred to any authority to say that when a hindu father, in whose name a decree stands, is adjudged insolvent, the adjudication would have the effect of transferring to his sons their shares of the decree by operation of law.

(4) The preponderance of authority appears to be that even in the case of a partition, the coparcener to whose share a decree may be allotted has no right to execute the decree under order 21, rule 16, civil procedure code, in the absence of an instrument in writing, as such allotment does not amount to transfer by operation of law. It was held in ramanathan chettiyar v. Raghavendra row, (1912) 16 indian cases 807. That whre a decree obtained by one of the members of a hindu family is allocated, at a family partition, to another coparcener, the person to whom it is allocated cannot be treated as an assignee of the decree by operation of law and that he cannot, by reason of such allocation alone, execute the decree unless he was so empowered by an instrument in writing. To the same effect is the decision in sankara pattar v. Ramanath ayyar,. (1954) 2 m. L. J. 155. It is not the respondents' case that there was any partition of the family properties between them or that any portion of the decree has been specifically allotted to their share not to speak of any instrument in writing, empowering them to execute it. When it is thus seen that there is neither an assignment of the decree in writing nor its transfer by operation of law in favour of the respondents, it cannot be said that they are entitled to execute it to the extent of their 3/4th share therein under order 21, rule 16 of the code of civil procedure.

(5) The contention that the respondents are entitled to invoke to their aid provisions of section 146 of the code for the purpose of executing the decree appears to have found favour with the learned additional district judge. This section lays down that save as otherwise provided by this code or by any law for the time being in force where any proceeding may be taken or application made by or against any person, then the proceeding may be taken or the application may be made by or against any person claiming under him. If the respondents are claiming under sambasivarao they can certainly invoke to their aid section 146 but this is not the case. Their claim to a 3/4th share in the decree is based on their own right by birth in a hindu undivided family and independent of their father, sambasivarao. Section 146 has therefore no application to this case.

(6) Learned counsel for the respondents however argued that being a beneficiant provision, section 146 should be construed liberally as so to advance justice and not in a restricted manner and that in this view, the respondents, though they are not claiming under sambasivarao, should be permitted to execute the decree. Saila bala v. Nirmala sundari, (1958) s. C. J. 743 : (1958) s. C. R. 1287:, (1958) 2 an. W. R. (s. C.) 99 : (1958) 2 m. L. T. (s. C.) 99 : a. I. R. 1958 s. C. 394 is cited in support of this contention. There is no gainsaying that section 146 of the code, being a beneficient provision, has to be construed liberally but no question of liberal or other construction would arise in this case when the section itself is inapplicable to it. The question that arose for determination in the decision cited was whether section 146 could be called in aid only for initiating proceedings or even for continuance of proceedings which are already pending and not whether the provisions of the section could be applied even in case to which, it is altogether inapplicable.

(7) While conceding that section 146 does not, in terms, apply here, learned counsel for the respondents argued that the principle adumbrated in it should be extended to this case having regard to the hardship which would otherwise ensue. Reliance is placed, in this context, on a full bench decision of the madras high court in muthiah chettiar v. Krishna doss varu, (1921) i. L. R. 44 mad. 919: 41 m. L. J. 316' a. I. R. 1921 mad. 599 at 605 wherein kumaraswami sastry, j. , as he then was, observed:

"where rights are conferred by the sections of the code and no provision is made for a particular set of facts, i think courts ought to apply the provisions of the rules which are nearest in point with such modifications as may be necessary and not refuse on the ground that the legislature has not made provision for a particular case though within the generality of a section of the code. The object of section 151 is to give such power to courts and to prevent a failure of justice."

I am afraid that the respondents are not entitled to press into service the aforesaid observations as there is not a case where any rights as such are conferred on them by any section of the code. The question that fell to be considered in the decision cited was as to whether a person who obtained transfer of a part of a decree pending execution (prior to the amendment of order 21, rule 16, civil procedure code) could be allowed to come on record in the execution proceedings and whether the further proceedings could be treated as if it was a joint petition by the transferor and the transferee. These questions were answered in the affirmative having regard to the fact that the transferee of a part of a decree is a person claiming under the decree - holder and that section 146 and the special provisions of order 22, rule 10 as to devolution of interest during the pendency of a suit appear to be ample authority for permitting the assignee decree - holder to continue the pending execution proceedings. But there is no transfer at all of any portion of the decree in favour of the respondents in this case either by assignment in writing or by operation of law and so no question of extending the principle of section 146 for the purpose of enabling them to execute the decree would arise.

(8) Another provision of the code under which the respondents were found entitled to execute the decree, by the lower appellate court, is section 151. But it is settled law that a court is not entitled to invoke its inherent powers for the purpose of granting relief when alternative remedies are available for securing the relief in question. It is not open to a court to exercise its inherent power for doing a thing which is prohibited or excluded by the code. The code empowers decree - holders transferees of decree by assignment in writing or operation of law, joint decree - holders and persons claiming under the decree - holders alone and none else to execute decrees. If in spite of this, permission to execute the decree, in exercise of the inherent powers under section 151 should be accorded to the respondents notwithstanding that they do not come within any one of the several categories of persons entitled to execute a decree, it would amount to doing a thing which is prohibited by the code. Nothing prevented the respondents from filing a suit for partition soon after their father was adjudged insolvent or from getting an assignment of the decree to the extent of their 3/4th from the; official receiver representing the insolvent but they did not care to do so. Mere hardship cannot be a relevant consideration for the purpose of granting relief under section 151, civil procedure code, if the effect of granting such relief should be to violate the specific provisions contained in the other parts of the code. I must, therefore, agree with the learned counsel for the appellant that the decision rendered by the lower appellate court is liable to be set aside, being contrary to law.

(9) In the result, the judgment and decrees of the lower appellate court are set aside and the decision of the executing court, dismissing e. A. Nos. 925, 926 and 927 of 1961, is restored. The appeals are accordingly allowed. The parties will however bear their respective costs of these appeals in the circumstances of the case. Leave granted. Appeals allowed.