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Kanhaiya v. Kanhaiya Lal

Allahabad High Court
Feb 12, 1924
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Structured Summary of the Opinion — Walsh, J.

Factual and Procedural Background

This dispute arose between two alleged members of a family over an estate left by Mt. Basanti (widow of Bansidhar, deceased). Part of the estate consisted of uncollected rents and rents accruing due from tenants.

Mt. Basanti had made a will which, if valid, could be admitted to probate. In September 1922 an applicant applied for a succession certificate under the Succession Certificate Act claiming to be the legal representative and seeking protection for collecting rents and to enable obtaining decrees against tenants. The succession certificate application remained pending and inactive for several months (five months elapsed with no action).

On 23 February 1923 the applicant applied to the same Court (in which the succession certificate matter was pending) for the appointment of a Receiver, naming the objector who opposed the grant of the succession certificate. Both parties filed statements setting out their positions; the applicant alleged the objector was untrustworthy and impecunious and sought security or a Receiver. The lower Court declined actually to appoint a Receiver but gave the objector the option of giving security.

The objector challenged the lower Court's action by appeal and by revision to the High Court. The High Court (Walsh, J.) had to decide primarily whether the Succession Certificate Court had jurisdiction to entertain an application for appointment of a Receiver, and secondarily whether the High Court could exercise revision when provisions of the Code of Civil Procedure (CPC) were held not to apply to the Succession Certificate Act proceedings.

Legal Issues Presented

  1. Whether a Court sitting under the Succession Certificate Act (a "Succession Certificate Court") has jurisdiction to entertain an application for the appointment of a Receiver.
  2. Whether Order 40, Rule 1 of the Code of Civil Procedure (CPC) — the provision concerning appointment of Receivers — is limited to pending suits or can be applied in proceedings under other statutes (specifically the Succession Certificate Act).
  3. Whether Section 141 of the CPC (general application of CPC provisions) can be made applicable to proceedings under the Succession Certificate Act, either directly or through express incorporation.
  4. Whether the High Court retains jurisdiction to call for records and set aside an order of an inferior Court (i.e., to exercise revision under its powers) if the inferior Court acted without jurisdiction under the Succession Certificate Act.

Arguments of the Parties

Applicant / Proponent of a Receiver (as reflected in the record)

  • The applicant applied for appointment of a Receiver (or, alternatively, security from the objector) to protect recovery of rents while the succession certificate application remained pending.
  • The applicant alleged the objector (who opposed the succession certificate) was a person in a Native State, not to be trusted and impecunious, and therefore security or a Receiver was necessary to prevent improper withholding or loss of rent.

Arguments Supporting the Lower Court Order (presented by Mr. Pearey Lal Banerji)

  • It was contended that Order 40, Rule 1 of the CPC — which governs appointment of Receivers — is not, under the Code of 1908, limited solely to cases where a suit is pending; therefore a Receiver could be appointed in proceedings outside a suit.
  • Authority was cited in support: Rai Jamnabhai, wife of Liladhar Khetsey (where a Receiver was held to be appointable in an application under Section 12 of the Guardians and Wards Act) and Asadali Chowdhury v. Mahomed Hossain Chowdhury (with regard to an application under Section 93 of the Bengal Tenancy Act), suggesting that CPC provisions may be applied to non-suit proceedings where appropriate.
  • As a last resort, it was argued that if the Court concluded the general provisions of the CPC did not apply to the Succession Certificate Court, the logical consequence would be that Section 115 (the High Court's revision jurisdiction) would also not apply — and thus the High Court would be precluded from exercising revision in the present matter.

Objector's Position

  • The objector challenged the jurisdiction of the lower Court to entertain an application for appointment of a Receiver in proceedings under the Succession Certificate Act, and accordingly brought both an appeal and a revision to the High Court.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Rai Jamnabhai, wife of Liladhar Khetsey To show that a Receiver might be appointed in an application made under Section 12 of the Guardians and Wards Act (thus suggesting CPC provisions can apply in non‑suit proceedings). The Court acknowledged the case but held it did not establish that the Succession Certificate Act should be treated analogously; the Court found that the Succession Certificate Act was more restricted and did not permit appointment of a Receiver merely by importing CPC provisions generally.
Asadali Chowdhury v. Mahomed Hossain Chowdhury To support the view that CPC provisions had been applied to applications under Section 93 of the Bengal Tenancy Act. The Court noted the decision but concluded it did not cover the ground of the Succession Certificate Act; it held that those statutes had express assimilative provisions that the Succession Certificate Act lacked (except to a limited degree), so the precedent did not justify the lower Court's action.

Court's Reasoning and Analysis

The Court's analysis proceeded in several steps, applying statutory interpretation and assessing the scope of the Succession Certificate Act vis-à-vis the Code of Civil Procedure:

  1. The Succession Certificate Act is a compact statute enacted for a specific purpose (described by its title as facilitating collection of debts on successions and affording protection to persons paying debts to representatives of deceased persons). Its procedure, the Court observed, is carefully prescribed and restricted.
  2. The Court examined provisions of the Succession Certificate Act that incorporate or refer to the Code. It noted specific express incorporations: section 6 (verification of the application), section 7 (provisions for service), and section 19(3) (which applies section 141 of the CPC only in respect of provisions for reference and review contained in the old chapters 46 and 47 of the Code). Section 1(4) was also discussed insofar as it excludes certificates in respect of debts provable under specified probate provisions.
  3. The Court distinguished the Succession Certificate Act from other statutes (the Guardians and Wards Act and the Bengal Tenancy Act) where the general provisions of the CPC had been held applicable. The Court concluded those cases did not establish a general rule that CPC provisions (not expressly incorporated) could be imported into every statute’s machinery.
  4. On statutory grounds the Court held that section 141 of the CPC (general application of the Code) could not be made applicable to proceedings under the Succession Certificate Act except insofar as it had been expressly introduced by section 19(3) and as a corollary by section 26(3). Therefore it was not competent for a Succession Certificate Court to entertain an application for appointment of a Receiver.
  5. The High Court addressed the counter-argument that, if the general provisions of the CPC did not apply to Succession Certificate Courts, then the High Court itself would lack revision jurisdiction under section 115. The Court rejected that outcome: it held that while the general provisions of the CPC do not apply to the Succession Certificate Court, the High Court (sitting as High Court) remains vested with jurisdiction to call for the record of an inferior Court and to set aside its order if the inferior Court acted without jurisdiction.
  6. The Court concluded that the lower Court had no right to entertain the Receiver application and should have dismissed it for lack of jurisdiction. Because the lower Court proceeded without jurisdiction, its decision was erroneous and susceptible to revision by the High Court.

Holding and Implications

Core Ruling:

Appeal dismissed.
Revision allowed.

Consequences and directions explicitly stated in the opinion:

  • The order of the lower Court (which entertained the application for appointment of a Receiver) is quashed because the lower Court acted without jurisdiction.
  • Both parties were ordered to pay their own costs in the High Court on the revision; the appeal is formally dismissed with costs, including fees on the higher scale in this Court.
  • The record is to be sent back to the lower Court with a copy of the judgment and a direction to proceed without delay to dispose of the pending application for a succession certificate (the opinion notes the application had been pending since September 1922 and the year was 1924 at the time of judgment).
  • The Court expressly impressed upon lower Courts the importance of dealing expeditiously with summary and urgent matters, noting that such continual delays contribute to complaints about general delay of litigation in the province.

The opinion's practical effect is to quash the impugned interlocutory action (appointment/attempted appointment of a Receiver) as beyond the jurisdiction of a Succession Certificate Court and to remit the substantive succession certificate application for prompt disposal.

Show all summary ...

Walsh, J.:— This is a very pretty legislative knot. A dispute has arisen between two alleged members of a family over an apparently substantial estate left by Mt. Basanti the widow of Bansidhar deceased. Some portion of the property consists of uncollected rents, that is to say, arrears of rent, and also of rents accruing due from the occupiers of various tenancies held under the deceased. Mt. Basanti made a will, which, if it is a valid will, can, on proper proceedings being taken, be admitted to probate. The present applicant, in September 1922, applied for a succession certificate under the Succession Certificate Act, claiming to be the legal representative of the deceased lady, and that he was desirous of collecting the rent from the tenants who would be protected in paying their rents to him in the event of his obtaining a succession certificate from the Court. Nor could he obtain a decree in any suit against the tenants for rent due to the deceased's estate without producing a succession certificate in the trial Court. Unfortunately, as is too often the case, this comparatively simple piece of machinery for obtaining the necessary certificate in a kind of summary way, for which purpose the Succession Certificate Act of 1889 was elaborately devised, hung fire, and owing, either possibly to the Court below having more work to do than it could get through, or to its failure to reccgnise the urgency of summary applications of this kind, the month of February, 1923, arrived, five months having elapsed during which nothing whatever was done. One can understand the applicant after such delay looking round to see how best he could secure that which he really wanted. He complains in the application, with which we now have to deal, that these rents, or some of them, are being improperly withheld and are becoming time barred, or in danger of becoming time barred. It is a fact that the provisions of the law enable a person in such a position to protect himself if he is properly advised. The applicant could have brought suits within the period allowed by limitation against all the debtors, and could have either asked the Court to postpone granting decrees, if he was entitled to decrees, until he had obtained the necessary certificate or applied to the certificate Court, as an urgent matter, to expedite the proceedings which had been already pending, as we have said, five months. Unfortunately he seems to have been badly advised, or at any rate advised to take the novel procedure which has bee accepted by the lower Court, and we have to deal with the matter as it stands. On the 23rd of February, 1923, he applied for the appointment of a Receiver to the Court in which the succession certificate matter was still pending. He made that application against the objector who was objecting to his obtaining a succession certificate, and each party filed a statement containing their views of the merits, and a perusal of these documents shows that the real dispute was between these two persons as to who was to collect the rent, and the applicant objected to the objector being allowed to collect rent unless he gave adequate security, he being a person in a Native State, and generally according to the applicant's allegation, not to be trusted and impecunious. On that footing the applicant was desirous to have the appointment of a Receiver, and the Court has acceded to that view of the matter, and without actually appointing a Receiver has given the objector the option of giving security. Nobody can doubt that if the application had been made in a pending suit, it was a reasonable application to make, and that on the merits it was both plausible and attractive. But we have to decide whether it was an application which the Court below had any right to entertain at all. The matter being novel and difficult, the objector has brought in before this Court both by way of appeal and by way of revision. With regard to the right of appeal, it seems to be established by a course of decisions in this Court that there is no such right where the order of the Court below is either conditional or provisional, and does not eventuate in a final order. The substantial matter therefore which we have to decide is whether we have jurisdiction to entertain the revision which challenges the jurisdiction of the lower Court to entertain this application. Taking for convenience sake the latter consideration first, it is argued by Mr. Pearey Lal Banerji in defence of the order, that Order 40, rule 1 of the CPC which contains the whole of the law in India with reference to the appointment of Receivers, is not now under the Code of 1908, whatever it was before, confined only to cases in which a suit is pending. He cites in justification of that view the case of Rai Jamnabhai, wife of Liladhar Khetsey (1), in which it was held that a Receiver might be appointed in an application made under section 12 of the Guardians and Ward Act. Section 12 of the Guardians and Wards Act enables the Court under that Act to make orders for the protection of the property, and section 141 of the CPC applies the provisions of the Code generally to all proceedings in any Court of civil jurisdiction, so far as they can be made applicable. A similar view has been, taken in the case of Asadali Chowdhury v. Mahomed Hossain Chowdhury (2) with regard to an application under section 93 of the Bengal Tenancy Act. These cases, however, do not cover the whole ground. It is necessary to consider the scope of the Succession Certificate Act in order to see whether the general provisions of the Code of Civil Procedure can be worked or introduced into the machinery under the Succession Certificate Act, or in other words, whether section 141 of the CPC can be made applicable. The Succession Certificate Act is a provision within a very small compass enacted for a specific purpose. The title describes it as “an act to facilitate the collection to debts on successions, and afford protection to parties paying debts to the representatives of deceased persons.” Section 1(4) provides that a certificate is not to be granted in respect of any debt in which a right can be established by probate under two Acts specifically mentioned. It so happens that neither of these cases apply to the will of Mt. Basanti, which is a will governed by the Probate and Administration Act, but undoubtedly Letters of Administration with a copy of the will annexed could be obtained of her will within the meaning of the latter part of Section 1(4). It is, therefore, doubtful whether it is a case in which the Court had any right to grant a certificate at all. The procedure appears to us to be very carefully prescribed and restricted. Where assistance from the Code is required, it is introduced by an express enactment, for example, in section 6 governing the verification of the application. The provision for service and so on is contained in section 7, and there is no further reference to the Code except in section 19(3), which applies to section 141 (old section 647) only so far as it relates to the provisions for reference and review contained in old chapters 46 and 47 of the Code. We, therefore, come to the conclusion that we cannot treat this Act as analogous to the other Acts, like the Guardians and Wards Act and the Bengal Tenancy Act, to which the general provisions of the Code of Civil Procedure, have been held to apply, and that we are unable to see that section 141 can be made applicable to the Succession Certificate Act except in so far as it is expressly introduced by section 19(3) and also as corollary by section 26(3). The result is that in our view it is not competent for a Court sitting, as a Succession Certificate Court, working the provisions of the Succession Certificate Act, to entertain an application for the appointment of a Receiver, and that in doing so the Court below acted without jurisdiction.

2. Mr. Pearey Lal Banerji, however, as a last resort contended that if this was so, the logical result was that none of the provisions of the Code of Civil Procedure would be applicable at all, including section 115, known as the revision section, and that, therefore, we are prohibited by our own interpretation of the Succession Certificate Act from applying the machinery provided in section 115.

3. The answer to this ingenious suggestion is in our opinion as follows:—We hold that the general provisions of the Code of Civil Procedure do not apply to the Court below sitting as a Court administering the Succession Certificate Act. But in our opinion they do apply to the High Court sitting as such which is vested with jurisdiction to send for the record in any case decided by an inferior Court, and if it has acted without jurisdiction, to set aside its order. Finally Mr. Pearey Lal Banerji, contended that there was no decision, although the Court granted in substance what he asked. We do not think it is necessary to go so far as to examine the ultimate decision of the lower Court in these proceedings. The difficulty arose at an earlier stage. The Court had no business to entertain this application at all. It ought to have thrown it out on the ground of absence of jurisdiction. It could not have entertained it without first deciding that it had jurisdiction to do so. If has so decided and in our view it has decided wrongly and therefore has exercised a jurisdiction which did not belong to in. On these grounds the revision must be allowed and the order quashed. Under the circumstances both parties will pay their own costs. Let the record be sent back to the lower Court with a copy of this judgment and a direction to such Court to proceed without delay to dispose of the application for a succession certificate. We are now in the year 1924 and this application which was a barbed in September, 1922, is still pending. We would impress upon the lower Court and all lower-Courts the importance of dealing with summary and urgent matters as expeditiously as possible. These continual delays, particularly in what may be called interlocutory machinery, are largely responsible for the complaints which are had about the general delay of litigation in this province.

4. The appeal of course will be formally dismissed with costs including in this Court fees on the higher scale.

5. Appeal dismissed.

6. Revision allowed.