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Structured Summary of the Opinion: Kanhaiya Singh, J.

Factual and Procedural Background

The dispute concerns plots Nos. 678 and 679 and a house in Samastipur that formerly belonged to Mst. Bachia. Bachia executed a simple mortgage bond in favour of the firm Damri Sah Halkhori Ram; on default the firm obtained a mortgage decree and in execution purchased the disputed property in 1917. Partners Damri and Halkhori later died (Damri in October 1926; Halkhori in March 1928), but the firm continued. After their deaths members of their family executed a mortgage deed dated 24-8-1928 in favour of the plaintiffs (the firm Shanti Nayak Misri Lall).

In 1932 the plaintiffs sued to enforce the mortgage bond against the family, including Mt. Jagpatia (Damri's widow). The suit was dismissed as against Jagpatia but decreed against other family members; on appeal Jagpatia was exempted and her name expunged. The plaintiffs executed the mortgage decree and sold most mortgaged properties to themselves on 5-12-1938, but the disputed house was purchased at auction by Lalchand Lal. Jagpatia filed an application under O.21, R.100 CPC claiming dispossession; her objection was allowed. The plaintiffs then obtained an ex parte decree under O.21, R.103 CPC.

Lalchand did not obtain delivery of possession immediately and by 26-7-1948 (when the present suit was brought under O.21, R.63 CPC) had still not taken possession; later proceedings and a suit by Lalchand were dismissed on 10-7-1953. Separately, Rameshwar Prasad (defendant No.1) purchased the disputed house in execution of a money decree against Mt. Jagpatia on 4-3-1946 and obtained delivery of possession on 28-8-1946.

The plaintiffs obtained a further decree for a balance under O.34, R.6 and in execution attached the disputed house again. Defendant No.1 applied under O.21, R.58 to object to the attachment on the ground that he had purchased the property and was in possession; this application was allowed on 14-4-1948. The plaintiffs then brought the present suit (26-7-1948) seeking a declaration that the property belonged to the judgment-debtors and that defendant No.1 acquired no good title by his purchase in execution against Jagpatia alone.

At first instance the Subordinate Judge found that Damri and Halkhori were equal partners, that Damri died separate from the family, and that Jagpatia had acquired title by adverse possession to part of the property; the Subordinate Judge held defendant No.1 had acquired good title and dismissed the plaintiffs' suit. The Addl. District Judge affirmed the partnership equal-share finding, disagreed that Jagpatia had perfected title by adverse possession, but held that because Lalchand's sale stood the plaintiffs could not re-sell the same property; he also treated an earlier decision (Ext. 4(c)) as operating as res judicata on whether Damri was joint, and dismissed the plaintiffs' appeal. The plaintiffs then appealed to this Court (Letters Patent).

Legal Issues Presented

  1. Whether the purchase of the disputed property by Lalchand at an earlier auction precluded the plaintiffs from attaching and selling the same property again in execution (i.e., whether Lalchand's purchase was fatal to the plaintiffs' suit under O.21, R.63 CPC).
  2. What is the proper scope of a suit under Order 21, Rule 63 CPC — specifically, whether mere proof of possession by judgment-debtors at the date of attachment is sufficient, or whether the material question is title.
  3. Whether possession of the judgment-debtors at the date of attachment (or subsequent possession short of perfected title) suffices to defeat the attachment or confer a vendible interest to prevent execution-sale purchasers from obtaining good title.

Arguments of the Parties

Plaintiffs' / Learned Government Advocate's Arguments

  • The principal contention before the Single Judge was that Lalchand's purchase of the disputed property was not fatal to the plaintiffs' suit — i.e., the plaintiffs could still attach and sell the property in execution.
  • It was argued that Lalchand had not obtained delivery of possession, and therefore the judgment-debtors remained in possession at the date of the plaintiffs' attachment.
  • The learned Government Advocate further contended that mere possession by the judgment-debtors constituted a right or interest; consequently, even if Lalchand had purchased the property, the executing Court could sell the property on the strength of the possession of the judgment-debtors.
  • He relied strongly on the decision in Gobind v. Jagnarain (AIR 1952 Pat 314) for the proposition that possession is good title against all but the true owner and that possession creates an interest capable of being inherited, devised or conveyed.

Defendant No. 1's Arguments

  • Defendant No.1 pleaded that the firm Damri Sah Halkhori Ram belonged exclusively to Damri and, on that basis, the disputed property belonged to Damri and devolved to his widow, Mt. Jagpatia, who remained in possession.
  • He contended he had acquired good title by purchasing the property (specifically in execution of a money decree against Mt. Jagpatia) and had obtained delivery of possession before the plaintiffs' subsequent attachment.
  • He further argued that after the disputed property had been sold in execution and purchased by Lalchand (and later transactions), the plaintiffs could not re-attach and re-sell that same property to recover a further balance.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Premsukh v. Satyanarain, ILR 24 Pat 408 : AIR 1945 Pat 485 The scope of a suit under Order 21, Rule 63 CPC — that the material question in such a suit is title and mere proof of possession of the judgment-debtors at the date of attachment is not sufficient. The Court relied on this precedent to hold that a suit under O.21, R.63 is brought to establish the right to attach the judgment-debtors' property and that title (not mere possession) is the decisive question. The Court applied this principle to conclude plaintiffs failed to show the judgment-debtors had any vendible interest at the date of attachment.
Puma Chandra Chakrabarty v. Kalipada Roy, 46 Cal WN 477 : AIR 1942 Cal 386 Similar principle (from Calcutta High Court) that in a suit under O.21, R.63 the material question is title and proof of mere possession by judgment-debtors is not conclusive. The Court cited this authority alongside Premsukh to reinforce that title — not mere possession — determines the right to attachment. It supported the Court's conclusion that plaintiffs' reliance on alleged possession was insufficient.
Gobind v. Jagnarain, AIR 1952 Pat 314 Statement that possession is good title against all but the true owner and that a person in peaceable possession has an interest capable of being inherited, devised or conveyed. The Court considered and rejected the plaintiffs' reliance on this decision for their case: the Court observed that Gobind did not address the effect of possession in a suit under O.21, R.63, and reiterated that possession cannot defeat the title of the true owner (here Lalchand), so the principle did not assist the plaintiffs.

Court's Reasoning and Analysis

The Court proceeded by first clarifying the legal character of a suit under Order 21, Rule 63 CPC: such a suit is to establish the right to attach the judgment-debtors' property, and the decisive issue is title rather than mere possession. The Court relied on Premsukh and the Calcutta decision in Puma Chandra Chakrabarty to state that mere evidence of possession by the judgment-debtors at the date of attachment is not sufficient to sustain such a suit.

Applying that principle to the facts, the Court found that on the date of the plaintiffs' attachment the judgment-debtors had no vendible interest in the disputed property: the property had already passed to Lalchand in execution of the plaintiffs' earlier decree. Consequently, the judgment-debtors had "no interest or right of any kind left in the disputed property" on the relevant date, and for that reason the plaintiffs were not entitled to succeed in a suit to establish a right to attach.

The Court addressed the plaintiffs' contention (advanced by the learned Government Advocate) that Lalchand had not obtained delivery of possession and hence the judgment-debtors remained in possession. The Court observed that the lower courts made no finding that the judgment-debtors were in possession; indeed, the findings showed Jagpatia and later defendant No.1 were in possession. The Court emphasized that possession is a question of fact that must be established by evidence, and even if the judgment-debtors had been in possession, that alone would not be sufficient in a suit under O.21, R.63.

The Court further examined the argument that possession gives an interest (relying on Gobind v. Jagnarain). It concluded that Gobind did not consider possession in the specific context of O.21, R.63 and, crucially, that possession cannot defeat the title of the true owner. Because the record established Lalchand had title to the property, any imperfect possession by the judgment-debtors could not prevail against Lalchand's ownership.

The Court also noted that, on the date of the suit, only about ten years had elapsed since Lalchand's purchase, so the judgment-debtors could not be treated as having acquired perfected title by prescription; any later acquisition of title (if at all) could not be considered in the absence of evidence of the nature and character of subsequent possession. The Court concluded that plaintiffs had failed to prove that the judgment-debtors possessed a sellable interest in the property on the date of attachment.

Holding and Implications

HOLDING: The appeal is dismissed. The Court held that the plaintiffs failed to prove that the judgment-debtors had any vendible interest in the disputed property on the date of attachment, and therefore the plaintiffs could not sustain their suit under O.21, R.63 CPC.

Direct consequences and practical effects:

  • The decision of the learned Single Judge was affirmed; the appeal had "no merit" and was dismissed with costs payable to defendant No.1 (as stated by Kanhaiya Singh, J., and agreed by Ramaswami, C.J.).
  • The plaintiffs are unsuited because the property had earlier passed to Lalchand and the judgment-debtors had no sellable interest at the date of the attachment; possession alone (if established) would not have been sufficient under O.21, R.63.

The opinion does not purport to lay down any broad new precedent beyond applying established principles concerning the nature of a suit under O.21, R.63 CPC and the consequences of prior execution-sale transfers; it affirms that title, not mere possession, is decisive in such suits.

Order recorded: Appeal dismissed. Costs to defendant No.1. (Kanhaiya Singh, J.; Ramaswami, C.J. agreed.)

    Misri Lal Nayak And Others v. Rameshwar Prasad And Others .

    Kanhaiya Singh, J.:— This is an appeal by the plaintiffs under Letters Patent from the decision of the learned Single Judge dated 15-12-1054, arising out of a suit brought under O. 21, R. 63 of the Code of Civil Procedure.

    2. The point involved is simple, but it is not easy to unravel the tangled skein of this proceeding. The dispute relates to plots Nos. 678 and 679, together with a house thereon, situate in the town of Samastipur. The disputed property at one time belonged to one Mst. Bachia. She executed a simple mortgage bond in respect of this house in favour of the firm Damn Sah Halkhori Ram. The mortgage money remaining unpaid, this firm obtained a mortgage decree against Mt. Bachia and in execution of the mortgage decree, purchased the disputed property as far back as 1917. Damri and Halkhori, partners of the firm, died respectively, in October 1926 and March 1928. The firm, however, continued to function even after the death of Damri. The plaintiffs are proprietors of a firm, known and styled as Shanti Nayak Misri Lall. After the death of Damri and Halkhori, the members of their family executed a mortgage deed dated 24-8-1928 in favour of the plaintiffs hypothecating inter alia the disputed property. In 1932, the plaintiffs instituted a suit to enforce the mortgage bond against the members of the family of Damri and Halkhori, including Mt. Jagpatia, the widow of Damri, on the allegation that the family was joint and she was impleaded as an abundant precaution. Jagpatia resisted the suit and set up a paramount title on the allegation that her husband Damri was separate from the other members of his family, that the disputed house belonged exclusively to him and that, on his death, it devolved upon her, to the exclusion of other members.

    3. The suit was dismissed against her but was decreed against other members of the family. The plaintiffs went up in appeal to the High Court, and there they exempted Jagpatia from the suit and got her name expunged from the record. In due course the mortgage decree was put into execution and the mortgaged properties were sold on 5-12-1938 and were purchased by the plaintiffs-decree-holders, except the disputed house, which was purchased by one Lalchand Lal. The plaintiffs were delivered possession through Court, and Mt. Jagpatia filed an application under O. 21, R. 100 of the CPC, complaining of her dispossession and claiming that she was in possession of the lands purchased by the plaintiffs in her own right. Her objection was allowed. Thereafter, the plaintiffs instituted a suit under O. 21, R. 103 of the CPC and obtained an ex parte decree.

    4. Lalchand Lal, who had purchased the disputed property at an auction sale, did not apply for and did not obtain delivery of possession through Court. The present suit was brought on 26-7-1948, and although by that time nearly ten years had elapsed after the auction sale, he had not obtained the of possession. It is, however, stated that on 22-19-1950. He brought a suit for of the disputed property against the plaintiffs and that the suit was dismissed on 10-7-1953.

    5. It may be noted that in execution of a money decree against Mt. Jagpatia, the disputed house was attached and nut to sale and purchased by Rameshwar Prasad (defendant No. 1) on 4-3-1946. He obtained delivery of possession on 28-8-1946.

    6. It appears that the not proceeds of the sale held in execution of the mortgage decree were not sufficient to pay the amount due under the mortgage decree to the plaintiffs. Accordingly, the latter made an application under O. 34, R. 6 of the CPC, and obtained a decree for the balance. In execution of that decree, the plaintiffs again attached the disputed house, which had already been sold previously to Lalchand Lal at the auction held in execution of their previous mortgage decree. Defendant No. 1 made an application under O. 21, R. 58 of the CPC, objecting to the attachment, on the ground that he had purchased the disputed property at an auction and was in possession and that the judgment-debtors, namely, the heirs and descendants of Damn and had no subsisting interest therein. This application was allowed on 14-4-1948. On 26-7-1948 the present suit was brought by the plaintiffs for a declaration that the suit property belonged to the judgment and was in their possession, and defendant No. 1 acquired no good title by his purchase at the auction sale in execution of the money decree against Mt. Jagpatia alone.

    7. Defendant No. 1 resisted the suit on various grounds. His defence was that the firm Damri Sah Halkhori Ram belonged exclusively to Damri, and consequently the disputed property belonged to Damri himself, that he was separate from the other members of the family and on his death the disputed property along with other properties devolved upon his widow, Mt. Jagpatia, by inheritance and that his widow was all along in possession. He contended, therefore, that he had acquired a good title by virtue of purchase at the auction sale, and the judgment-debtors had no interest left therein. His further plea was that when the disputed property was sold in execution of the mortgage decree by the plaintiffs themselves and purchased by Latch and, the plaintiffs could not re-attach and re-sell the property for recovery of the balance of the mortgage money.

    8. The learned Subordinate Judge held that the firm Damri Sah Halkhori Ram was not the exclusive business of Damri, that both Damri and Halkhori were partners of the firm, each owning half share, and that Damri died separate from other members of the family and his properties came to his widow, Mt. Jagpatia. He further held that Mt. Jagpatia had eight annas share in the property in her own right, and she was in adverse possession of the rest of the property and had acquired perfected title by prescription. He, therefore, found that the defendant had acquired good title and the suit property was not available to the plaintiffs and dismissed the suit.

    9. On appeal, the learned Addl. District Judge affirmed the finding of the Court of first instance that the firm Damri Sah Halkhori Ram belonged in equal shares to Dmri and Halkhori. He, however, held that so long as the rmction shle in favour nf Lalchand stood, the plaintiffs could not re-sell the same property and obtain a declaration that the disputed property he onged to the members of the family of Damri and Halkhori. He, however, negatived the finding of the learned Subordinate Judge that Mt. Jagpatia bad acquired title by adverse possession. On the question whether Damri was joint, he held that in view of the previous decision (vide Ext. 4(c)), it must be held that Damri died in a state of jointness, as that decision operated as res judicata. On these findings, he dismissed the appeal.

    10. In the Second Appeal, the only point urged before the learned single Judge was that the purchase of the disputed property by Lalchand was not fatal to the present suit. The learned Judge considered the scope of a suit under O. 21, R. 3 of the Code and, relying upon a decision of this Court in Premsukh v. Satyanarain*, ILR 24 Pat 408 : (AIR 1945 Pat 485), and a decision of the Calcutta High Court in Puma Chandra Chakrabarty v. Kalipada Roy, 46 Cal WN 477 : (AIR 1942 Cal 386), laid down that the material question for determination in a suit under O. 21, R. 63 is the question of title, and mere proof of possession of the judgment-debtors at the date of attachment was not sufficient. These propositions of law are unexceptionable. So far as this Court is concerned, it is now well settled that a suit under R. 63 of O. 21 is a suit to establish a right to attach the judgment-debtors' property. The suit is brought not to set aside the order made under R. 60 but to establish the validity of the attachment itself.

    11. Therefore, as laid down by this Court in the case of Premsukh, referred to above, it would not be enough merely to show that the judgment-deb-tors, and not the plaintiffs, were in possession at the date of attachment. In a suit under 0.21, R. 63 the material question for determination is the question of title. This is evident from the plain wording of R. 63, which provides that where a claim or an objection is preferred, the party against whom an order is made may institute a suit to establish the right which he claims to the property in dispute, but, subject to the result of such suit, if any, the order shall be conclusive. It is manifest, therefore, that in such a suit the possession of the judgment-debtor or of the claimant, though material, is not conclusive. What is conclusive is the tide of one or the other to the attached property.

    12. Applying these principles, there can be no doubt that on the date of attachment of the disputed property by the plaintiffs, the judgment-debtors had no interest left therein. The property-had already passed to Lalchand in execution of the decree of the plaintiffs themselves. Therefore, it as plain that the judgment-debtors had no interest or right of any kind left in the disputed property. On this ground alone, therefore, the plaintiffs must be unsuited. The contention of the learned Government Advocate is that Lalchand had not obtained delivery of possession, and the judgment-debtors were still in possession. There is no finding by the Courts below that the judgment-debtors were in possession.

    13. On the contrary the finding is that Mt. Jagpatia was in possession of the property, and since after his purchase, defendant No. 1 was in possession. Defendant No. 1 attached and purchased this property before the plaintiffs attached and advertised it for sale. From the absence of delivery of possession, the learned Government Advocate assumed that the judgment-debtors were in possession. From the fact that Latch and did not take out delivery of possession, it does not follow that the judgment-debtors were in possession. It is a question of fact, which must be established by evidence. Assuming that the judgment-debtors were in possession, this, as stated above, is not sufficient to the plaintiffs to a decree in such a suit.

    14. It is well to remember that on the date of the suit the judgment-debtors had not acquired a perfected title by virtue of that possession, since only ten years had elapsed from the date of the purchase by Lalchand. Whether or not their possession had subsequently ripened into a perfected title cannot be taken into consideration for the simple reason that there is no evidence of the nature and character of their subsequent possession if any. At any rate, we are to consider the respective rights of the parties on the date of the suit. The learned Government Advocate then contended that mere possession of the disputed property constituted a right and was a interest. He urged that even if Lalchand had purchased the property, the executing Court could sell the property on the strength of the possession of the judgment-debtors.

    15. In support of his contention, he strongly relied upon a Hench decision of this Court in Gobind v. Jagnarain*, AIR 1952 Pat 314. In that case, it has been laid down that possession is good title against all but the true owner and a person in peaceable possession of land has, as against everyone but the true owner, an interest capable of being inherited devised or conveyed. This decision, in my opinion, does not assist him in the least. In the first place, in that case the effect of possession of the judgment-debtors in a suit under O. 21, R. 63, was not involved and was not considered. Apart from that, even according to that decision, possession does not constitute a good title against the true owner. In this case, it is indisputably established that Lalchand had title to the disputed property and was the real owner. The judgment-debtors had no title. Therefore, their possession will not avail against the title of Lalchand.

    16. From this point of view also, the plaintiffs cannot succeed in this case. They cannot blow both hot and cold in the same breath. They cannot say that Lalchand had acquired good title and urge at the same time that the title remained with the judgment-debtors, because of their continued possession, even though that possession Was, in law, not sufficient to perfect their title. It is not the case of the plaintiffs that the judgment-debtors had acquired interest in the suit property subsequent to the auction sale in favour of Lalchand and prior to the attachment obtained by them. It is thus established beyond doubt that the judgment-debtors had no interest in this property, and the plaintiffs could not attach and sell it on the ground that it belonged to the judgment-debtors. Whether or not it belonged to Mt. Jagpatia or, through her, to defendant No. 1 is not of much importance in this suit. In order to succeed, the plaintiffs must prove that the judgment-debtors had saleable interest in the disputed property, and this, as I hava stated above, they have failed to prove.

    17. It follows that the decision of the learned Single Judge is right, and there is no merit in this appeal which must be dismissed with costs, payable to defendant No. 1.

    Ramaswami, C.J:— I agree.

    JD/K.S.B

    18. Appeal dismissed.

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    Comments

    Misri Lal Nayak And Others v. Rameshwar Prasad And Others .
    (Aug 12, 1960)