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Bhoje Mahadev Parab v. Gangabai Vithal Naik
Structured Summary of the Opinion
Factual and Procedural Background
In 1902 the 1st defendant, Gangabai kom Vithal, obtained a decree (Ex. 65) for her maintenance against Ramchandra, Vinayak and others. The plaintiff purchased, in 1906, two plots (the opinion concerns one plot: Survey No. 108 Falni Nos. 1 t 2 and 4 and Plot Nos. 1, 2 and 3) from some of those judgment-debtors. Prior to the plaintiff's 1906 purchase no attachment or other proceeding under the 1902 decree had been taken. In 1907 the decree-holder applied for execution of her decree. In 1910 the plot in question (among others) was attached and sold at auction and purchased by the third defendant.
The plaintiff instituted the present suit seeking a declaration that his 1906 purchase was binding on the 1st and other defendants and that the 1910 auction sale should be set aside. At trial the plaintiff succeeded. The lower appellate Court reversed, holding that the doctrine of lis pendens (pendente lite) was fatal to the plaintiff's claim. This appeal was preferred by the plaintiff against that appellate decision.
Legal Issues Presented
- Whether the doctrine of lis pendens (as embodied in Section 52 of the Transfer of Property Act) applies to the plaintiff's 1906 purchase where the decree in favour of the 1st defendant was obtained in 1902 but execution proceedings were not initiated until 1907 (i.e., was the plaintiff's purchase "during the active prosecution in any Court of a contentious suit or proceeding")?
- Whether a Court (auction) purchaser's title relates back in a way that affects competing interests — specifically, whether the third defendant as auction-purchaser takes a title unaffected by prior incumbrances or whether the plaintiff's 1906 purchase remains subject to the charge created by the 1902 decree?
Arguments of the Parties
Appellant / Plaintiff
- The plaintiff brought the suit seeking a declaration that his 1906 purchase was binding on the decree-holder and others, and seeking to set aside the 1910 auction-sale. (The opinion records that the plaintiff succeeded in the trial Court but was defeated in the lower appellate Court.)
Respondents
- Mr. A. G. Desai for the respondents argued that proceedings in execution must be regarded as a continuation of the suit; accordingly, a purchase made during the pendency of execution proceedings is void as pendente lite. He relied on authorities such as Shivjiram v. Waman and Makanji v. Babaji and sought to assimilate the facts here to cases like Chunni Lal v. Abdul Ali Khan.
- Respondents further contended that respondent No. 2 (one of the respondents) is a Court purchaser and that his title relates back to the date of the mortgage, making it unaffected by incumbrances; authorities were cited (Sakharam v. Sadashiv; Kasan Laldas v. Pranjivan Asharam; Mohan Manor v. Togu Uka) in support of that contention.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Shivjiram v. Waman (1897) I.L.R. 22 Bom. 939 | Sale made while execution proceedings were actually pending is to be considered pendente lite. | The Court regarded Sir Charles Farran's judgment as of special importance but distinguished it on facts: Shivjiram involved a purchase during actual pendency of execution and therefore does not support applying lis pendens to the present case where purchase preceded execution. |
| Makanji v. Babaji (1904) 6 Bom. L.R. 303 | Another case where the purchase occurred during the actual pendency of execution proceedings and was treated as pendente lite. | The Court treated it as a case of precisely the same character as Shivjiram and therefore inapplicable to facts of this appeal where the purchase preceded execution proceedings. |
| Chunni Lal v. Abdul Ali Khan (1901) I.L.R. 23 All. 331, 334 | Discussed in context of mortgage decrees; the Chief Justice was speaking expressly of mortgage decrees. | The Court refused to assimilate the present decree (a maintenance decree creating a charge) to the mortgage-decree situation addressed in Chunni Lal, holding the distinction important for the lis pendens question. |
| Venkatesh Govind v. Maruti (1886/1887) I.L.R. 12 Bom. 217 | Authority for the proposition that the lis pendens ends with the decree (i.e., litigation terminated by decree), subject to the particularities of mortgage suits. | The Court relied on this ruling to support the conclusion that the maintenance decree was final and ended the lis, so the plaintiff's purchase was not made during active prosecution. |
| Kinsman v. Kinsman (1830) 1 R. & M. 617 | Statement by Lord Lyndhurst that "After the decree, and before execution ... lis pendens could any longer exist" (quoted in other authorities). | Quoted as part of the historical authority indicating that lis pendens typically ends with the decree and therefore does not apply to the interval before execution unless revived by active proceedings. |
| Rachappa Nilkanthappa v. Mangesh Mahadaji (1898) P.J. 386 | Case said to approach respondents' position but decided on peculiar facts (rapid sequence from decree to execution) and concerned a mortgage decree. | The Court treated this decision as fact-specific and not a general authority for the broad proposition that a later institution of execution always revives lis pendens for the earlier interval. |
| Dose Thimmanna Bhutta v. Krishna Tantri (1906) I.L.R. 29 Mad. 508 | Referred to as a case where the alienation was effected during the pendency of the actual suit. | The Court observed that this case involved an alienation during the actual pendency of the suit and thus did not support the respondents' contention here. |
| Sakharam v. Sadashiv (1878) P. J. 147 | Authority concerning doctrine that a Court purchaser's title may relate back (cited in support of respondent's court-purchaser argument). | The Court accepted that these decisions support the proposition that a court purchaser's title relates back and considered them in relation to the second point. |
| Kasan Laldas v. Pranjivan Asharam (1870) 7 B.H.C.R. (A. C. J.) 146 | Authority cited for the proposition that a court purchaser's title relates back and may be unaffected by incumbrances. | Recognized by the Court as part of the body of authority supporting the court-purchaser principle relied upon by respondents. |
| Mohan Manor v. Togu Uka (1885) I.L.R. 10 Bom. 224 | Another authority cited in support of the court-purchaser's title relating back. | The Court treated these authorities collectively as establishing the propositions contended for by respondents on the court-purchaser point. |
| Kuloda Prosad Chatterjee v. Jageshar Koer (1899) I. L. R. 27 Cal. 194 | Authority for the proposition that a prior charge created by decree affects subsequent purchasers irrespective of their notice of the charge. | The Court relied upon this authority to conclude that the plaintiff's 1906 purchase was subject to the charge in favour of the 1st defendant regardless of notice. |
| Worsley v. Earl of Scarborough (1746) 3 Atk. 392 | Early authority cited for the general rule that lis pendens ends with the decree (subject to exceptions noted in administration or account suits). | Referred to in historical discussion reinforcing the principle that the lis normally terminates with the decree and so does not extend indefinitely into the pre-execution interval. |
Court's Reasoning and Analysis
The Court's analysis proceeded in two connected strands corresponding to the two principal issues.
First, on the lis pendens point the Court examined the wording of Section 52 of the Transfer of Property Act which, for the present appeal, limits the doctrine to purchases made "during the active prosecution in any Court of a contentious suit or proceeding." The Court emphasized that these words must be given their natural and ordinary meaning and concluded that a purchase made after a decree had been passed (1902) and before execution proceedings were initiated (the plaintiff's purchase was in 1906; execution proceedings began in 1907) cannot, with propriety of language, be said to have been made "during the active prosecution" of the suit.
The Court noted that the lower appellate Judge had characterized the plaintiff's purchase as during the pendency of execution proceedings, but observed that the purchase plainly occurred before execution proceedings were instituted. The Court then considered the authorities relied upon by respondents and the lower Court. It distinguished cases where the alienation or purchase clearly took place during the actual pendency of execution or the substantive suit (e.g., Shivjiram v. Waman; Makanji v. Babaji; Dose Thimmanna Bhutta) as not analogous because those involved purchases made while execution or the substantive proceedings were actively pending.
The Court accepted the principle, reflected in older authorities (Worsley; Kinsman and the decision in Venkatesh Govind v. Maruti), that lis pendens generally terminates with the decree and that, except in certain suit types (administration, suits for account, or particularities in mortgage suits), the decree ends the litis contestatio. The Court further observed that Chunni Lal concerned mortgage decrees specifically (where the lis may not terminate until the final decree) and was therefore inapplicable to the maintenance decree before the Court.
The Court examined Rachappa Nilkanthappa v. Mangesh Mahadaji and found it to be a case driven by peculiar facts (very short interval and prompt execution) and by mortgage-specific considerations; it therefore did not support the broad proposition urged by respondents that the later institution of execution revives lis pendens for the entire earlier interval. On the cumulative reading of Section 52 and the authorities, the Court concluded the doctrine of lis pendens could not be applied to the facts here because the plaintiff's purchase was not made during the active prosecution of any contentious suit or proceeding.
Second, on the question of the effect of a court (auction) purchase and competing incumbrances, the Court accepted respondents' authorities (Sakharam v. Sadashiv; Kasan Laldas v. Pranjivan Asharam; Mohan Manor v. Togu Uka) showing that a court purchaser's title may relate back to the date of the mortgage/charge. The Court further relied on Kuloda Prosad Chatterjee v. Jageshar Koer for the proposition that the plaintiff's purchase was subject to the charge in favour of the first defendant irrespective of whether the plaintiff had notice of that charge.
Applying these principles to the facts, the Court concluded that while the lis pendens doctrine did not invalidate the plaintiff's 1906 purchase, the plaintiff's title was nonetheless subject to the charge created by the 1902 maintenance decree. Consequently, the appropriate remedy was to set aside the lower appellate judgment and to enter a decree allowing the plaintiff to recover possession from the third defendant on condition that the plaintiff pays to the third defendant the sum for which the property was sold at auction; if the property was sold as part of a larger parcel, the proportionate sum attributable to the plot in suit was to be ascertained by the lower Court in execution.
Holding and Implications
Holding: The appeal was allowed. The Court held that the doctrine of lis pendens could not be applied to the plaintiff's 1906 purchase because that purchase was not made "during the active prosecution in any Court of a contentious suit or proceeding" within the meaning of Section 52 of the Transfer of Property Act. The Court set aside the decree under appeal and substituted a decree in favour of the plaintiff, subject to conditions described below.
Core Ruling: The appeal is allowed and the decree under appeal is set aside.
Direct consequences and practical effects:
- The substituted decree entitles the plaintiff to recover the property in suit from the third defendant, on the condition that the plaintiff pays to the third defendant the sum for which the property was put to sale at the auction.
- If there is any dispute as to the sale amount, or if the property was sold together with another property as a single parcel, the lower Court in execution is directed to ascertain the proportionate sum attributable to the plot in suit.
- The plaintiff's 1906 purchase remains subject to the charge created by the 1902 maintenance decree in favour of the first defendant; the third defendant as auction-purchaser is entitled to that charge.
- The appellant (plaintiff) was awarded costs throughout.
- The opinion does not purport to establish any broad new principle of law; it applies Section 52 and existing authorities to the particular facts and distinguishes cases relied upon by respondents. Accordingly, no new precedent beyond this factual application is asserted by the Court.
Note: This summary is strictly confined to the material and statements contained in the provided opinion and does not add facts or inferences not present in the original text.
1. This appeal, which is preferred by the plaintiff in the original suit, arises in the following circumstances :-
In 1902 the 1st defendant Gangabai kom Vithal obtained V decree for her maintenance against Ramchandra, Vinayak and others. The plaintiff is a purchaser, from some of these judgment-debtors, of two of the plots mentioned in the maintenance suit, but in this appeal we are concerned only with one of these two plots, namely, Survey No. 108 Falni Nos. 1t 2 and 4 and Plot Nos. 1, 2 and 3. This purchase was made by the plaintiff in 1906. Prior to then no attachment or other proceeding had been taken out by the first defendant under her decree of 1902. In 1907, however, she applied for execution of her decree for maintenance. In 1910 this particular plot along with others was attached and sold, and was purchased by the third defendant.
2. The suit was brought by the plaintiff for a declaration that the sale to him in 1906 was binding on the 1st and other defendants and in order that the Court should set aside the auction-sale of 1910.
3. In the trial Court the plaintiff succeeded. He was, however, defeated in the lower appellate Court, the learned Judge being of opinion that the doctrine of Us pendens was fatal to his suit.
4. The first point that we have to decide is whether this view of the learned Judge of the Court below was right. It appears to me that, in the circumstances of this case, the doctrine of list pendens cannot be applied. The decree which was obtained by the first defendant is Ex. 65 and the purport of it was to place a charge in her favour upon the family property. It was declared that her charge was for arrears amounting to Rs. 61 and for future maintenance.
5. As I have noted, the decree was obtained in 1902. Plaintiffs purchase was in 1906, and between these dates no execution or other proceeding in the litigation was at any time pending. It was not till a year after the plaintiff's purchase that the decree-holder applied for execution of her decree.
6. The learned Judge below realized these facts which he has correctly stated. He says, however, that proceedings in execution must be regarded as a continuation of the suit, and the purchase during their pendency is consequently - void, and he refers to the cases of Shivjiram v. Waman (1897) I.L.R. 22 Bom. 939 and Makanji v. Babaji (1904) 6 Bom. L.R. 303. It seems to me, however, that if these cases be accurately apprehended, they will be seen to be hostile rather than favourable to the view which the learned Judge took.
7. In the first place, however, I must note that the phrase used by the learned Judge as to this being a purchase " during the pendency of the execution proceedings " is incorrect. The purchase, as the Judge himself observes in another part, was made prior to the institution of execution proceedings.
8. The doctrine of list pendens is for us embodied in Section 52 of the Transfer of Property Act which, so far as concerns the present appeal, limits the applicability of the doctrine to purchases made " during the active prosecution in any Court of a contentious suit or proceeding." If these words are not to be strained, but are to carry only their natural and ordinary meaning, it seems to me clear that they cannot cover such a case as this. The decree had been passed four years earlier. The execution proceedings were not yet taken, and I think it is not possible with any propriety of language to say in these circumstances that this purchase by the plaintiff was made during the active prosecution of a contentious suit or proceeding.
9. Mr. A. G. Desai for the respondents endeavoured to assimilate the facts here with those with-which Sir Arthur Strachey C. J. was dealing in Chunni Lal v. Abdul Ali Khan (1901) I.L.R. 23 All. 331, 334. There, however, the Chief Justice was speaking expressly of mortgage decrees only, and while it is clear that in mortgage suits the Us is not terminated by the decree nisi, but only by the final decree, I do not think that any such distinction can properly be made in regard to the decree which we have before us. In my opinion this decree awarding maintenance and laying a charge for it upon a particular property was a final decree and, as such, it ended the litis contestatio. If that is so, then I think under the rulings by which we are bound, the plaintiff is entitled to succeed, and I rely in particular upon the same cases which the learned Judge below cited in support of his decision. Sir Charles Farran's judgment in Shivjiram v. Waman (1897) I.L.R. 22 Bom. 939 is, I think, of special importance. The facts there were that the impugned sale was made to the defendants while the plaintiff's execution proceedings were actually pending. It was held that the sale was therefore to be considered as made pendente lite. Even this conclusion was not arrived at without some little difficulty; for the Chief Justice begins by saying that " the general rule of law is that the Us pendens, except in administration suits and suits for an account in which the decree is the inception of subsequent proceedings, ends with the decree. This," as his Lordship says, " was laid down by Lord Hardwicke in Worsley v. Earl of Scarborough (1746) 3 Atk. 392 and was recognized by Sir Charles Sargent C. J. in the above cited case of Venkatesh Govind v. Maruti (1886) I.L.R. 12 Bom. 217. In Kinsman v. Kinsman (1830) 1 R. & M. 617 Lord Lyndhurst says: 'After the decree, and before execution, [ which is precisely the case before us now in this present appeal ] it was not pretended that Its pendens could any longer exist'. " The question, however, that Sir Charles Farran and Mr. Justice Candy had to consider was whether execution proceedings, which had been instituted, can be said to revive or give continuance to the Us which otherwise had terminated. In view of the numerous Calcutta decisions which had been approved in principle by the Judicial Committee, though they were hardly consistent with the observations of Sir Charles Sargent in Venkatesh Govind v. Maruti (1886) I.L.R. 12 Bom. 217, the learned Judges came to the conclusion that execution proceedings subsequently filed did operate to revive the Us pendens. That, however, as I have said, was a case where the purchase was made during the actual pendency of the execution proceedings and Makanji v. Babaji (1904) 6 Bom. L.R. 303 was another case of precisely the same character. There is no case which has gone the length to which respondents are forced to ask us to go here. The case which nearest approaches the needs of the respondents is that of Rachappa Nilkanthappa v. Mangesh Mahadaji (1898) P.J. 386. That, however, as I regard it and as I understand the judgment of Mr. Justice Ranade, was a case decided rather upon its own peculiar facts than upon any hard and fast point of principle. The peculiar facts were that although the sale had been rapidly interposed between the-decree and the execution proceedings, yet no appreciable delay had occurred on the part of the decree-holder, and while the sale took place only a few days before the execution, the darkhast had been given only a few days after the decree had been passed. The view of the Court, therefore, appeared to be that though the purchaser had been abnormally active, his opponent had been as active as the law required. Moreover, it is to be observed that in that case the Court was dealing with a mortgage decree and that in such a suit the Us would not terminate until there had been a final decree.
10. As to Dose Thimmanna Bhutta v. Krishna Tantri (1906) I.L.R. 29 Mad. 508, to which reference was also made, it appears that there was no question but that the alienation was effected during the pendency of the actual suit. On the whole, therefore, no case, as I have said, goes so far as to support the judgment now under appeal, and from the language used by Sir Charles Farran, I am led to suppose that the cases have already been taken as far as he would have approved.
11. For these reasons and because of the words of Section 52 of the Transfer of Property Act, I am of opinion that the doctrine of Its pendens cannot be made to apply to such facts as those in this case. I ground my decision on the opinion that this purchase was not made during the active prosecution of any contentious suit or proceeding.
12. Mr. Desai next contends that his client, respondent No. 2, is a Court purchaser and consequently his title relates back to the date of the mortgage and is unaffected by any incumbrances. He refers to the authorities of Sakharam v. Sadashiv (1878) P. J. 147, Kasan Laldas v. Pranjivan Asharam (1870) 7 B.H.C.R. (A. C. J.) 146 and Mohan Manor v. Togu Uka (1885) I. L. R. 10 Bom. 224. These decisions appear to me to establish the propositions for which Mr. Desai contends. I am also of opinion under the authority of Kuloda Prosad Chatterjee v. Jageshar Koer (1899) I. L. R. 27 Cal. 194 that the plaintiff's purchase was subject to the charge in favour of the first defendant irrespective of the question whether the plaintiff had or had not notice of that charge.
13. On these grounds I hold that the decree under appeal ought to be set aside and in its place there should be made a decree allowing the plaintiff to recover this property in suit from the third defendant on condition that the plaintiff pays to the third defendant the sum for which the property was put to sale. If there is any question as to this amount, or if, as we understand, this property in suit was sold together with another property as one single parcel, then the proportionate sum to be ascribed to this plot in suit must be ascertained by the lower Court in execution.
14. The appeal being thus allowed, the appellant must have his costs throughout.
Shah, J.
15. I concur. With reference to the question of lis pendens, I desire to add that having regard to the facts in this case, which have been stated by my learned colleague in his judgment, I am of opinion that there was no active prosecution of any contentious suit or proceeding from 1902 to 1907 (1. e., from the date of the decree to the date of the execution proceedings), within the meaning of Section 52 of the Transfer of Property Act. I think that the decree for maintenance, when it was passed, really put an end to the litigation. The case of Venkatesh Govind v. Maruti (1887) I. L. R. 12 Bom. 217 is clearly an authority for the view that the litigation was terminated by the decree, which only remained to be executed if necessary against the properties mentioned in the decree. Though it was not a case under the Transfer of Property Act, I think the ratio decidendi of that case applies to the present case. The decree creating a charge on property in the present case is substantially similar to the decree in Venkatesh's case, in which the decretal amount was ordered to be paid " on the liability of the land in the plaint mentioned". The observations of Sir Charles Farran C. J., in Shivjiram v. Waman (1897) I. L. R. 22 Bom. 939, as I read them, do not in any way conflict with the reasoning upon which the conclusion in Venkatesh's case is based. The point which arose for decision in Shivjiram's case really did not arise in the case in Venkatesh's case, as in the latter case no execution proceedings were taken. As regards the general statement about the doctrine of Us pendens, the observations in both the cases are in harmony, and, in my opinion, support the appellant's contention.
16. As regards the case of Rachappa Nilhanthappa, v. Mangesh Makadaji (1898) P.J. 386 which is relied upon on behalf of the respondents, having regard to the facts in that case as stated in the judgments, it is clear that there was no appreciable lapse of time after the decree and before the institution of execution proceedings, and the case clearly turns upon the special facts of that case. Mr. Justice Parsons observed that the decree itself operated as an attachment of the property and nothing remained but to ask the Court to sell it. Mr. Justice Ranade said as follows :-
"It is clear that if lis pendens was revived by reason of this prompt execution, the appellant's deed of purchase must be considered as though it had been passed after the suit was instituted and before it was decided."I am unable to treat this decision as an authority for the broad proposition, which the respondent has contended for in this case, that whatever may be the interval between the date of the decree and the institution of the execution proceedings, the moment the execution proceedings are taken, the lis must be deemed to be pending during that interval, and all dispositions made during the interval must be subjected to this doctrine of lis pendens.
17. As regards the second point I think that the plaintiff must be held to have purchased the property subject to the charge created by the decree in favour of defendant No. 1 : see Kuloda Prosad Chatterjee v. Jageshar Koer (1899) I.L.R. 27 Cal. 194. The defendant No. 3 has become entitled to that charge as an auction-purchaser, and before the plaintiff could recover possession of the property, he is bound to satisfy the charge thereon.
Transfer of Property Act,Alert