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Dewan Syed Aley Rasul v. Seth Balkishan
Structured Summary of the Opinion (Reference under Section 17, Ajmer Regulation 1 of 1877)
Factual and Procedural Background
By a deed dated 22 January 1912, Dewan Immamuddin hypothecated several properties (including a jagir, income from the shrine, a haveli and a nohra/bagh) to secure an advance. The original mortgagor died and was succeeded by Dewan Sharfuddin, against whom the mortgagee brought a suit for sale of the mortgaged properties. A preliminary decree was passed and on 28 September 1920 the Court ordered preparation of a final decree; no final decree is traceable (it may never have been prepared or may have been lost).
Key subsequent events: an execution application was made on 1 October 1920 but stayed when Sharfuddin applied to the Government for a loan (the Government refused the loan on 16 October 1924). The mortgagee (Amir Chand) died on 8 October 1924; the mortgagee’s legal representative applied on 17 March 1925 to revive execution and for substitution of parties. Sharfuddin had died on 2 December 1922 and was succeeded by Aley Rasul as dewan and sajjada-nashin, who raised objections including that he was not the legal representative and that most mortgaged properties were not transferable.
The Subordinate Judge and Additional District Judge differed and the Judicial Commissioner (23 April 1930) remanded for determination whether the mortgaged properties were alienable. On remand (15 March 1933) the Subordinate Judge held that only the haveli and the nohra/bagh were transferable and that Aley Rasul was legal representative qua those two; execution was directed for those two properties. An appeal was unsuccessful. A sale proclamation was prepared; Aley Rasul made objections (some procedural, some raising title questions) which were dismissed by the Court of first instance (28 November 1933) and the appellate Court (26 July 1934). No sale occurred; a fresh proclamation led to fresh objections (11 August 1934) asserting (a) no final decree existed and preliminary decree was not executable, (b) the suit had abated for want of substitution under Order 22, Civil P.C., and (c) the mortgage money was charged on all properties so only two properties could not satisfy the whole mortgage.
The decree-holder argued res judicata based on earlier orders. The executing Court initially refused a reference under Section 17, Regn. 1 of 1877; the Judicial Commissioner directed that the reference sought be made. The Subordinate Judge referred this question to this Court (whether consideration of the new objections was barred by res judicata). The Division Bench referred competency of the reference to a Full Bench which ruled the reference competent. The present Bench decides the question on the merits.
Legal Issues Presented
- Whether the consideration of the new objections raised by the judgment-debtor (Aley Rasul) in his objections dated 11 August 1934 was, in the circumstances of the case, barred by the principle of res judicata? (This is the precise question referred to the Court.)
- Subsidiary objections which the executing Court had to decide (as framed in the proceedings):
- Whether, as no final decree had been prepared, there was a decree capable of execution before the Court (i.e., whether a preliminary decree could be executed)?
- Whether, for want of substitution of names under Order 22, Civil P.C., within the limitation allowed by law, the suit had abated?
- Whether the mortgage money being charged on all properties meant that only two of the properties (haveli and nohra/bagh) could not be sold to satisfy the entire mortgage money?
Arguments of the Parties
Decree-Holder (legal representatives of the mortgagee) — Arguments
- Contended that earlier decisions of the Court (orders dated 28 November 1933 and 26 July 1934) operated as res judicata with respect to the objections raised on 11 August 1934, and therefore the new objections were barred.
- Argued that the order dated 28 November 1933, dismissing the judgment-debtor's objections and directing execution to issue, should be taken to have impliedly decided all objections which, if upheld, would have been fatal to execution.
Judgment-Debtor (Aley Rasul) — Arguments
- Maintained that he was not the legal representative of the deceased Sharfuddin for all the mortgaged properties and that most mortgaged properties were not transferable and hence could not be sold in execution.
- Raised, in objections dated 11 August 1934, that no final decree had been prepared and therefore there was no decree capable of execution (preliminary decree insufficient), and that substitution under Order 22, Civil P.C., had not been made and therefore the suit had abated.
- Had earlier relied on Order 22, Rule 12, Civil P.C., to argue that substitution provisions were not applicable to execution proceedings (this earlier pleading was disposed of by the Court as not applicable to execution proceedings under Order 22, Rule 12).
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Genda Lal Hazari Lal, A.I.R. 1936 All 21 | Set out a clear formulation (fourfold) of how the rule of res judicata applies in execution proceedings: (1) express adjudication by the execution Court in presence of parties is final; (2) where an objection is taken but dismissed or struck off and the application becomes fructuous, the judgment-debtor is debarred from raising invalidity later; (3) where an objection is dismissed for default or not on merits and the application does not become fructuous, the judgment-debtor is not debarred; (4) where no objection is taken but application becomes fructuous and that fructification assumes application was within limitation, judgment-debtor is debarred from later raising limitation. | The Court cites this decision as a clear expression of the law on res judicata in execution matters and uses its four-part test to frame the analysis. The Court applies the principles but limits their extension: it rejects the decree-holder's contention that the 28 November 1933 order implicitly disposed of all objections not then raised. |
| Full Bench case (unnamed in the record) | Addressed whether a judgment-debtor could take the plea of limitation on a second application for execution if omitted on the first application; the test formulated was that if the decree-holder obtained some relief (part satisfaction) on the first application, the judgment-debtor should be deemed to have had and unsuccessfully taken all objections which would have prevented that satisfaction; if the first application was abortive (no relief), the judgment-debtor was not debarred from raising such pleas on a subsequent application. | The Court treats the Full Bench ratio as instructive but distinguishes it because in the present case only one execution application is pending and objections were made at various stages within that same proceeding. The Court accepts the ratio so far as applicable but declines to extend it to bar objections not raised earlier in the same pending execution proceeding absent express adjudication. |
Court's Reasoning and Analysis
The Court proceeded in stages:
- Competence of the reference: The Division Bench had referred competence to a Full Bench which ruled the reference competent; this Court proceeds to answer the referred question.
- Identification of what was previously decided: The Court examined the order of 28 November 1933 and concluded that Aley Rasul had not then raised the specific objections now pressed — notably (a) that no final decree had been prepared and therefore no decree capable of execution existed, and (b) that the suit abated for want of substitution under Order 22, Civil P.C. The prior order had briefly disposed of an objection as to substitution with reference to Order 22, Rule 12, Civil P.C., holding those substitution provisions not applicable to execution proceedings. The present objections, however, challenge abatement of the suit itself — a different question which was not previously argued or decided.
- Legal framework on res judicata: The Court acknowledged that Section 11, Civil P.C., does not in terms apply to execution proceedings but that the rule of res judicata (including the constructive res judicata in Explanation 4 to Section 11) has application in execution proceedings subject to limitations and authorities. It reviewed the fourfold rule articulated in Genda Lal Hazari Lal A.I.R. 1936 All 21 and considered the Full Bench decision on limitation pleas in execution (as to second applications).
-
Application of principles to present facts:
- The Court emphasized that where there has been an express adjudication in execution proceedings in the presence of the parties, the matter is finally decided. Conversely, in the absence of express adjudication, the Court will not treat earlier orders as having implicitly decided all possible objections.
- The Full Bench test (regarding a second application for execution and pleas of limitation) was distinguished: the present matter involves a single, still-pending execution application, with objections raised at different stages of that proceeding. Therefore the Full Bench situation (multiple execution applications) is not directly applicable though its ratio informs the analysis.
- The Court rejected the decree-holder's contention that the 28 November 1933 order should be construed as having impliedly decided all objections which would have been fatal to execution. The Court found no rule of law under Section 47, Civil P.C., or elsewhere that requires the judgment-debtor to raise all possible objections at a single time; while the Court can guard against abuse, it must decide objections when they are raised unless barred by a rule of law.
- Conclusion of analysis: Applying these principles, the Court held that the first two objections (no final decree / suit abated for want of substitution) were not barred by res judicata because they had not been previously raised or expressly adjudicated. For similar reasons the third objection (scope of charge and insufficiency of only two properties to satisfy whole mortgage) was also not barred. The Court therefore answered the reference in the negative.
The Court also ordered that the costs incurred by the parties in this Court shall follow the ultimate result of the proceedings in the Court executing the decree.
Holding and Implications
Answer to the referred question: The consideration of the new objections raised by the judgment-debtor is not barred by the principle of res judicata.
Implications and direct consequences:
- The executing Court is not precluded by res judicata from entertaining the three objections raised by Aley Rasul (the absence of a final decree and thus no decree capable of execution; alleged abatement of the suit for want of substitution under Order 22, Civil P.C.; and the contention that only two properties are saleable and cannot satisfy the whole mortgage).
- The Court clarifies that, absent express adjudication in execution proceedings, the principle of res judicata will not be extended to deem every conceivable objection previously determined merely because an earlier order directed execution to issue. Judgment-debtors may raise objections during the pendency of the same execution proceeding, subject to the Court's power to prevent abuse.
- Costs in this Court are ordered to follow the ultimate result of the executing Court's proceedings (i.e., costs here will be determined by the eventual result in the execution court).
- No novel legal rule was laid down beyond the application and clarification of existing principles (notably those in Genda Lal Hazari Lal A.I.R. 1936 All 21 and the relevant Full Bench ratio) to the particular procedural posture of this case.
1. This is a reference under Section 17 of the Ajmer Regulation 1 of 1877. Before we state the precise question referred to this Court, the previous history of the case which has given rise to it should be stated. By a deed, dated 22nd January 1912, Dewan Immamuddin, a former 'sajjadanashin' of the Ajmer Dargah, hypothecated a number of properties, including a 'jagir', income from the shrine, a 'haveli' and a 'nohra', also called a 'bagh', to secure the advance of a certain sum of money. The original mortgagor died, and was succeeded by Dewan Sharfuddin, against whom a suit for sale of the mortgaged properties was brought by the mortgagee. A preliminary decree was passed in the usual terms. On 28th September 1920, the Court recorded an order directing the preparation of a final decree. It is common ground that no-final decree is traceable. It may be that no such decree was ever prepared through an oversight on the part of the office or that one was prepared but has been lost. Sharfuddin died on 2nd December 1922, and the mortgagee Amir Chand died on 8th October 1924, before the mortgage decree could be satisfied.
2. An application for execution had been made in the lifetime of the original par. ties on 1st October 1920; but, on the application of Sharfuddin to the Government for a certain loan, the execution proceedings were in abeyance. The Government finally refused the loan applied for by an order, dated 16th October 1924. The legal representative of the mortgagee made an application on 17th March 1925, asking for the revival of the execution proceedings and also for substitution of names for those of the original parties to the execution proceedings. Sharfuddin was in the meantime succeeded by Aley Rasul as 'dewan' and 'sajjada-nashin'. He put forward a number of objections, one of which was that he was not the-legal representative of the deceased Sharfuddin and that the mortgaged properties-were not transferable and could not, therefore, be sold in execution of the decree. The Subordinate Judge and the-Additional District Judge took different views on the questions raised by the objections. Eventually the Judicial Commissioner held, by an order, dated 23rd April 1930, that the important question to consider was whether the mortgaged' properties in dispute were alienable. Accordingly he reversed the orders of the subordinate Courts and remanded the case-to the Court of first instance for determination of the question indicated by him. The Subordinate Judge held after remand, by an order, dated 15th March 1933, that none of the mortgaged properties, except the 'haveli' and the 'nohra' also called the 'bagh', was in its nature transferable. He also held that Aley Rasul was the legal representative of Sharfuddin qua these two properties. Accordingly he directed execution to issue in respect of these two properties.
3. An appeal by Aley Rasul to the District Judge was unsuccessful. On the sale proclamation being prepared, Aley Rasul put forward a number of objections mostly directed against alleged defects in the preparation of the sale proclamation. Some of the objections, however, are construed in these proceedings as raising a question of title. These objections were dismissed by the Court of first instance on 28th November 1933. The appellate Court upheld the order of the Court of first instance by an order, dated 26th July 1934. For reasons, which do not appear from the record and which it is not necessary to mention, no sale took place in pursuance of the sale proclamation to which reference has been made, and a fresh sale proclamation was subsequently prepared when Aley Rasul took a fresh set of objections on 11th August 1934. The first of this was that, as no final decree had been prepared, there was no decree capable of execution before the Court, the preliminary decree not being one which the Court could execute. The second was that no substitution of names for those of the deceased parties having been made under Order 22, Civil P.C., within the limitation allowed by law, the suit had abated long before the application for execution was made. Lastly, it was pleaded that the mortgage money, mentioned in the preliminary decree, was charged on all the properties detailed in the mortgage deed and that only two of the properties, namely, the 'haveli' and the 'nohra' or 'bagh' could not be sold in satisfaction of the entire mortgage money. These are the objections which the Court has to decide.
4. It was urged on behalf of the legal representatives of the mortgagee, decree, holder that the earlier decisions of the Court, passed on the objections of Aley Rasul, operated as res judicata as regards the objections, dated 11th August 1934 This plea found favour with the Court of first instance, who also disposed of the objections on the merits. Aley Rasul made an application, under Section 17, Regn. 1 of 1877, asking for a reference to this Court for decision on the question whether the earlier decision operated as res judicata on the questions raised by hire by his objection, dated 11th August 1934 The Court refused to make the reference The case went in second appeal, to the Judicial Commissioner of Ajmer, who sent it back to the Court of first instance with the direction that the reference, asked for by Aley Rasul, be made. Accordingly, the Subordinate Judge referred the following question to this Court:
Whether the consideration of the new objections-raised by the judgment-debtor and referred to by the Subordinate Judge in his order of 3rd September 1934 was in the circumstances of the present case, barred by the principle of res judicata?
5. The case was heard by a Division Bench of this Court, and one of the questions raised before it was whether the reference under the Regulation above referred to was competent. The Division Bench referred the question to a Full Bench which has since ruled that in the circumstances of this case the reference should be taken to be competent. The case is now before this Bench for decision of the question under reference. Learned Counsel on both sides have taken us through the objections made and the orders passed on previous occasions. The only one to which a detailed reference is necessary is the order of the Court, dated 28th November 1933, which will also show the nature of the objections that had been preferred by the judgment-debtor on that occasion. We may say at once that Aley Rasul did not on that occasion raise the question which he is now raising, namely, that no final decree having been prepared the Court had no decree capable of execution before it, nor did he plead that proceedings for substitution of names not having been taken under Order 22, Civil P.C., the suit itself abated. It is true he had contended that substitution of names not having taken place in place of the deceased decree. holder and the deceased judgment-debtor the application for execution of the decree abated - an objection which was shortly disposed of by the Court with reference to Order 22, Rule 12, Civil P.C., which makes it clear that the provisions contained in that order are not applicable to execution proceedings. It should be noticed that the present objection raises the question whether the suit itself abated. His case seems to be that as no final decree was prepared the suit should be deemed to be pending and as the plaintiff and the defendant both died during the pendency of the suit and their legal representatives have not been brought on the record the suit should be deemed to have abated. This question, as already Stated, was not raised by Aley Rasul's objections, dated 11th August 1933. It could not be and was not decided by the Court's order, dated 28th November 1933. Out of the three questions raised by Aley Rasul the first two are founded on the assumption that a final decree not having been prepared the suit should be deemed to be pending. There can be no doubt that these objections are not barred by any express decision of the Court. It is, however, argued on behalf of the decree-holder that they might and ought to have been taken on the previous occasion and not having been then taken they should be deemed to have been constructively decided against Aley Rasul by the order of the first Court, dated 28th November 1933, and by that of the appellate Court, dated 26th July 1934. It is not disputed that Section 11, Civil P.C., does not in terms apply. It is also common ground that the principle of the rule of res judicata does apply. How far the rule of constructive res judicata embodied in Expln. 4, Section 11, Civil P.C., is applicable to orders passed in execution proceedings has been the subject of numerous judicial decisions some of which are not easily reconcilable. The view of this Court has "been clearly expressed in Genda Lal Hazari Lal A.I.R. 1936 All 21 in which it has been laid down that:
(1) Where there has been an express adjudication by the execution Court in the presence of the parties, then the question must be considered to have been finally decided, no matter whether it is raised again at a subsequent stage of the name proceeding or in a subsequent execution proceeding. (2) Where an objection is taken but is dismissed or struck off, even though not on the merits, and the application for execution becomes fructuous, the judgment-debtor is debarred from raising the question of the invalidity of that application, but (3) Where an objection to execution is taken but it is not dismissed on the merits or is dismissed for default, and the application for execution does not become fructuous, the judgment-debtor is not debarred from subsequently raising the question that that application was not within limitation. Lastly (4) Where no objection to the execution is taken but the application becomes partly or wholly fruotuous and such fructification necessarily involves the assumption that the application was made within limitation, then after such fructification the judgment-debtor is debarred by the principle of res judicata from raising the question that that application was not within limitation.
6. In the Full Bench case the question was whether the judgment-debtor was competent to take the plea of limitation on a second application for execution if he had omitted to take it when an application for execution was first made and process of execution was issued though no satisfaction was obtained. The test which has been laid down by the Full Bench seems to be that if on an application for execution the decree-holder, obtains some relief by way of part satisfaction of the decree the judgment-debtor should be deemed to have taken but unsuccessfully all objections, which if successful, would have prevented the decree-holder from obtaining satisfaction in part of the decree. Where however the decree-holder failed to obtain any relief and his application became abortive, the judgment-debtor was not debarred from taking any plea which if successful would defeat a second application for execution. The case before us is one in which only one application for execution was made and is still pending. The judgment-debtors successively objected not on successive applications "for execution being made but on various occasions arising in the course of the same proceedings. The proceedings started by the application for execution dated 1st October 1920 are still pending. Strictly speaking, the Pull Bench case is not applicable to the present case, but the ratio decidendi deducible from it can be safely applied to this case which is stronger than the one which the Fall Bench had to deal with. Learned advocate for the decree-holder has strenuously contended before us that the order of the Court dated 28th November 1933, dismissing the judgment-debtor's objection and directing the execution to issue should be taken to have impliedly decided all such objections as would be fatal to the execution of the decree if they were upheld by the Court. We do not think that the principle of res judicata can be extended so far. In the absence of express adjudication, and during the pendency of the same execution proceeding, there is nothing to prevent the judgment-debtor from taking any objection which might have been taken on the earlier occasion but was not taken. We have not been referred to any rule of law which makes it incumbent upon the judgment-debtor to raise all possible objections, under Section 47, Civil P.C., at a given time. While the Court possesses ample powers to prevent the abuse of its process it must decide all objections under Section 47, Civil P.C., when they are raised if they are not barred by any rule of law Accordingly we hold that the first two objections already mentioned are not barred by the principle of res judicata. For similar reasons we declare that the third question is also not barred. We answer the question under reference in the negative. The costs incurred by the parties in this Court shall follow the ultimate result of the proceedings in the Court executing the decree.
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