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Factual and Procedural Background

The original decree arose out of Suit No. 4696 of 1921 by which the plaintiff obtained a decree for over Rs. 4,000 against one Vali Bagas. The decree-holder assigned the decree on 6 January 1934 to Isap Bapuji Patel (the assignee). On 8 January 1934 the assignee applied to the High Court for recognition of his assignment and notices were issued to the decree-holder and to the four heirs/legal representatives of the original judgment-debtor (who had died).

On 19 January 1934 three of the four judgment-debtors sought an adjournment and the Court made the notice absolute as against the plaintiff (the assignor). On 26 January 1934 the Court ordered that the assignee should execute the decree against three of the four judgment-debtors (Nos. 1, 2 and 4). The assignee was permitted to amend his application and, on 29 January 1934, the Court vacated its 26 January order. On 5 February 1934 the High Court made the notice of 8 January 1934 absolute against all four heirs. That order was passed more than twelve years after the date of the decree.

The decree was transferred to the Court of the First Class Subordinate Judge, Broach, and on 4 April 1934 the assignee filed a darkhast for execution. That Court, following Palaniappa Chettiar v. Valliammai Achi, treated the High Court's recognition of the assignment as a revivor under art. 183 of the First Schedule to the Indian Limitation Act and held the darkhast to be in time.

All four judgment-debtors appealed to the District Court contending that execution was barred by limitation. The Assistant Judge held that the 5 February 1934 order did not constitute a valid revivor (because the question of limitation had not been decided by that order), and he held the 29 January 1934 order invalid and without jurisdiction; he therefore treated the 26 January 1934 order as operative and allowed execution to proceed only against judgment-debtors Nos. 1, 2 and 4.

Two second appeals followed: Second Appeal No. 301 of 1937 (by the judgment-debtors) contending execution was barred by limitation against all judgment-debtors, and Second Appeal No. 302 of 1937 (by the assignee) contending execution was not barred even against judgment-debtor No. 3.

Legal Issues Presented

  1. Whether the darkhast for execution filed more than twelve years after the decree was saved by the proviso to Article 183 of the First Schedule to the Indian Limitation Act by reason of any revivor.
  2. Whether the High Court's order of 5 February 1934 operated as a revivor (i.e., whether it constituted a determination that the decree remained capable of execution and that the decree-holder was entitled to enforce it).
  3. Whether earlier orders (notably those of 19 January 1934 and 26 January 1934) operated as a revivor or otherwise affected the running of limitation.
  4. Whether the Court had jurisdiction to vacate its own interlocutory order under Section 151, Civil Procedure Code, and the effect of such vacatur on the running of limitation.
  5. Whether the 5 February 1934 order, if not a revivor in itself, could be held to relate back to the date of the original application (and thereby save the darkhast).

Arguments of the Parties

Assignee's Arguments (Mr. Coyajee)

  • The High Court's final order of 5 February 1934 operates as a revivor within the meaning of Article 183 and thus the darkhast for execution was filed in time; reliance was placed on Raja of Ramnad v. Velusami Tevar and Palaniappa Chettiar v. Valliammai Achi.
  • If the 5 February order did not operate as a revivor, then the order of 19 January 1934 (which made the notice of 8 January absolute against the assignor) must be treated as operating as a revivor.
  • The 5 February 1934 order should be held to relate back to the date of the original application (supporting the assignee by reference to Venkapaiya v. Nazerally Tyabally).
  • Even if the 26 January 1934 order was vacated later, the running of limitation (which began upon that order) could not be stopped by the subsequent vacatur; therefore a revivor created on 26 January remained operative.

Judgment-Debtors' Arguments (Mr. O'Gorman and others)

  • The High Court was competent to vacate its own interlocutory order under Section 151 of the Civil Procedure Code; reliance was placed on Yusuf v. Abdullabhoy Lalji.
  • The 5 February 1934 order is qualified by an express reservation that it was “without prejudice to the contentions … that the execution of the decree is barred by the law of limitation”; therefore that order could not operate as a revivor (relying on Chutterput Singh v. Sait Sumari Mull and the test laid down in Kamini Debi v. Aghore Nath Mukherji).
  • Where an order is so qualified and does not determine that the decree is capable of execution, it cannot be a revivor within the meaning of Article 183.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Raja of Ramnad v. Velusami Tevar Recognising an assignment and treating an order that allowed the assignee to execute as a positive order amounting to revivor; absence of any reference to limitation in that order was taken to indicate revivor. The Court noted the Privy Council's observation that an unequivocal order allowing execution without reference to limitation was treated as a revivor. The Court held this case was not analogous because the present 5 February order contained an express qualification about limitation.
Palaniappa Chettiar v. Valliammai Achi Followed Raja of Ramnad; recognition of assignment by the High Court was treated as a revivor in that earlier decision. The lower Court had followed Palaniappa Chettiar in treating recognition as a revivor. The present Court observed that Palaniappa follows Raja of Ramnad but did not carry the matter further to assist the assignee here because of the qualification as to limitation in the 5 February order.
Yusuf v. Abdullabhoy Lalji Interlocutory orders made in chambers can be reviewed by the Court under Section 151, Civil Procedure Code, if the ends of justice require it. The judgment-debtors relied upon this case to support the competence of the High Court to vacate its own earlier order. The Court accepted that the High Court had power under s.151 and that it appeared to have vacated the order in the interests of justice.
Chutterput Singh v. Sait Sumari Mull Support for the proposition that a qualified order (one that does not determine executability because of reservation as to limitation) cannot operate as a revivor. The Court accepted the reasoning of Chutterput Singh as supporting the conclusion that the qualification in the 5 February order prevented it from operating as a revivor.
Kamini Debi v. Aghore Nath Mukherji Test for revivor stated by Mookerjee, J.: “to constitute a revivor of the decree, there must be, expressly or by implication, a determination that the decree is still capable of execution, and the decree-holder is entitled to enforce it.” The Court adopted this test as the correct standard for identifying a revivor and applied it to hold that the 5 February 1934 order did not meet the test because it did not determine that the decree remained capable of execution.
Venkapaiya v. Nazerally Tyabally Authority relied upon for the proposition that an amended or later order might relate back to the date of the application (as argued by the assignee). The Court stated that Venkapaiya was not applicable to the facts of the present case and therefore did not allow the relation-back argument to succeed.

Court's Reasoning and Analysis

The Court began from the undisputed premise that Article 183 of the First Schedule to the Indian Limitation Act governs the matter and that the darkhast for execution was filed after the twelve-year period had expired. The decisive question was whether any subsequent step constituted a revivor within the proviso to Article 183 so as to save the darkhast.

The Court examined the sequence of orders. It accepted that the High Court, after hearing advocates on both sides, allowed the assignee to amend and vacated its 26 January order in order to obtain an order against all four judgment-debtors. The Court observed: (a) there had been no appeal against either the 29 January or the 5 February orders; (b) the 5 February order was passed at the instance of the assignee himself; and (c) on these facts the Assistant Judge was wrong to regard the 29 January vacating order as invalid or without jurisdiction.

Turning to the revivor issue, the Court analysed the exact language of the 5 February 1934 order. It emphasised that the High Court, having made the notice absolute against all four judgment-debtors, expressly added the qualification: “I do further order that this order is without prejudice to the contentions of respondents Nos. 2, 3, 4 and 5 … that the execution of the decree is barred by the law of limitation.” Because of that express reservation, the Court concluded that the High Court did not decide the question whether execution was barred by limitation and therefore did not make a positive determination that the decree remained capable of execution.

The Court applied the test articulated in Kamini Debi (and relied upon in Chutterput Singh): to constitute a revivor there must be, expressly or by implication, a determination that the decree is capable of execution and that the decree-holder is entitled to enforce it. On that authoritative test the Court held that the 5 February order could not operate as a revivor because it left the limitation issue open.

The Court rejected the assignee's alternate contentions in turn: (i) the 19 January 1934 order (which only made the 8 January notice absolute as against the assignor) could not be interpreted as a determination that the decree remained executable against the judgment-debtors; it only meant the original decree-holder would no longer execute; and the question of limitation could not be determined without further inquiry after the twelve-year point; (ii) the argument that the 5 February order related back to the date of the application was not material once the Court concluded the 5 February order did not constitute a revivor, and Venkapaiya was found not applicable on the facts; and (iii) the submission that the running of limitation once commenced upon the 26 January order could not be stopped by subsequent vacatur was rejected — the Court held that vacating the 26 January order put an end to the running of limitation which had owed its commencement to that order; to hold otherwise would produce anomalous results.

On these grounds the Court agreed with the Assistant Judge in the central legal outcome (that no valid revivor was created which would save the darkhast) but disagreed with the Assistant Judge's reliance on the 26 January order as operative: the Court held the 29 January vacatur and the 5 February order were not improper and therefore could not be ignored. Applying legal principle to fact, the Court concluded that none of the contested orders operated to revive the decree for limitation purposes.

Holding and Implications

Core Ruling: Second Appeal No. 301 of 1937 is allowed and Second Appeal No. 302 of 1937 is dismissed.

Direct consequences on the parties:

  • The appellants in Second Appeal No. 301 (the three judgment-debtors who had originally been proceeded against and, by extension, all four judgment-debtors) succeed; the orders of the Courts below are set aside and execution of the decree is barred against all the judgment-debtors.
  • Second Appeal No. 302 (by the assignee) is dismissed with costs.
  • First Appeal No. 245 of 1935 (a contingent appeal) is dismissed without any orders as to costs.
  • The Court awarded costs in favour of the appellants in Second Appeal No. 301 “throughout” and against the assignee in Second Appeal No. 302.

Implications beyond the parties: The opinion applies and clarifies existing authorities on what constitutes a revivor under Article 183 — specifically, that an order which expressly reserves the question of limitation and does not determine that a decree is capable of execution cannot be treated as a revivor. The opinion does not purport to establish a broader novel principle beyond applying the established test for revivor; no new broader precedent is explicitly claimed in the text.

Second Appeal 301 allowed;
Second Appeal 302 dismissed.

Judgment delivered by Sen, J. (as reported in the provided opinion).

    Hasan Vali Bagas v. Isap Bapuji Patel

    Sen, J.:—

    These appeals arise out of proceedings in the execution of a decree in suit No. 4696 of 1921 in the High Court in its original jurisdiction, the plaintiff having obtained a decree for over Rs. 4,000 against one Vali Bagas. The decree-holder assigned this decree on January 6, 1934, to one Isap Bapuji Patel, the respondent in Second Appeal No. 301 of 1937 and the appellant in the other second appeal. On January 8, 1934, the assignee applied to the High Court for recognition of his assignment. Notices were issued to the decree-holder as well as to the four heirs and legal representatives of the original judgment-debtor, who had died in the meanwhile. On January 19, 1934, three out of the four judgment-debtors asked for an adjournment of the proceedings and the order of the Court was that the notice was made absolute as against the plaintiff (the assignor). On January 26, 1934, the Court passed an order that the assignee should execute the decree against three out of the four judgment-debtors, (Nos. 1, 2 and 4), these three being the appellants in Second Appeal No. 301. Thereafter, apparently on an application by the assignee, he was allowed to amend his application and on January 29, 1934, the Court passed an order vacating its own order dated January 26, 1934. On February 5, 1934, the Court made its notice of January 8, 1934, absolute against all the four heirs of the original judgment-debtor. The date of this order was more than twelve years after the date of the decree. The decree was then transferred to the Court of the First Class Subordinate Judge, Broach, and on April 4, 1934, a darkhast was filed by the assignee of the decree for execution. The Court, following Palaniappa Chettiar v. Valliammai Achi, treated the recognition by the High Court of the assignment as a revivor within the meaning of art. 183 of the first schedule to the Indian Limitation Act and held that the darkhast was in time. All the four judgment-debtors appealed against this order to the District Court and contended that the execution was barred by limitation. The Assistant Judge who heard the appeal held that the order of February 5, 1934, did not constitute a valid revivor as the question of limitation had not been decided by that order. He further held that the order of January 29, 1934, was invalid and without jurisdiction, as the Court, in his opinion, had no right to vacate its own order, there having been no fraud or misrepresentation or any other such ground affecting the order of January 26. He, therefore, treated the order of January 26, 1934, as operative and allowed the darkhast to proceed against only judgment-debtors Nos. 1, 2 and 4. Against this order Second Appeal No. 301 of 1937 has been filed on the plea that execution is barred by limitation against all the judgment-debtors and Second Appeal No. 302 has been filed on the plea that execution is not barred even against judgment-debtor No. 3.

    There is no dispute that the case is governed by art. 183 of the first schedule to the Indian Limitation Act. The darkhast was admittedly filed more than twelve years after the date of the decree, and therefore the main question that arises is whether it was saved by the proviso to the said article as to revivor. In the order of February 5, 1934, which gives the history of the proceedings, we find that after January 25, 1934, the assignee wanted to amend his application and that the Court, after hearing the advocates on both sides, allowed the amendment and vacated its own order of January 26. Its object, apparently, was that there should be an order against all the four judgment-debtors. On behalf of the judgment-debtors it has been argued that it was perfectly competent for the Court to vacate its own order as the provisions of s. 151 of the Civil Procedure Code are wide enough to allow this being done, and reliance has also been placed on Yusuf v. Abdullabhoy Lalji. In that case it was held that an interlocutory order which was made in chambers could be reviewed by the Court, under s. 151 of the Civil Procedure Code, if the ends of justice required it, even though, the application for such a purpose did not expressly fall within the language of O. XLVII of the Code. It seems to us that the Court felt that it was necessary in the interest of justice to vacate the older it had passed on January 26, 1934, in view of the fact that its previous order did not enable the assignee of the decree to proceed against all the judgment-debtors. The final order passed on February 5, 1934, now stands, there having been no appeal against either the order of January 29, 1934, or that of February 5, 1934, and the further fact to be noticed is that this order was passed at the instance of the assignee himself. We are, therefore, not satisfied that the order of February 5 was an improper order and, in our opinion, the learned Assistant Judge was wrong in regarding the order of January 29 as “redundant, invalid and without jurisdiction” and in holding that the assignee could rely on the order of January 26.

    Mr. Coyajee on behalf of the assignee has contended that in any case the order of February 5, 1934, operates as a revivor and that the assignee is entitled to execute the said order. He relies on Raja of Ramnad v. Velusami Tevar and Palaniappa Chettiar v. Valliammai Achi. In the first of these cases the Court recognised an assignment of a decree and allowed the assignee to execute it. Their Lordships of the Privy Council observed in that case that order was a positive order that the assignee should be allowed to execute the decree and that as no reference to limitation was made therein there was a revivor, irrespective of whether a plea of limitation would have succeeded in that case. On this latter point, however, the present case cannot be said to be analogous to that case, as the Court, after it had decided that the notice of January 8 should be made absolute against all the four judgment-debtors, added further, “I do further order that this order is without prejudice to the contentions of respondents Nos. 2, 3, 4 and 5 (i.e, the four judgment-debtors), that the execution of the decree is barred by the law of limitation.” The Court, therefore, did not determine the question whether execution was barred by limitation, and its order cannot be said to be a positive order that the assignee should be allowed to execute the decree. The case of Palaniappa Chettiar v. Valliammai Achi follows Raja of Ramnad v. Velusami Tevar and carries the matter no further.

    Mr. O'Gorman on behalf of the judgment-debtors has relied on Chutterput Singh v. Sait Sumari Mull(3) for the view taken by the learned Assistant Judge that the order of the Court being qualified in the manner described above it could not operate as a revivor. At p. 920 of this case Sanderson, C.J referred to an earlier case, Kamini Debi v. Aghore Nath Mukherji,(4) in which the test of what constitutes a revivor within the meaning of art. 183 had been laid down by Mookerjee, J. in the following words (p. 93):—

    “The essence of the matter is that to constitute a revivor of the decree, there must be, expressly or by implication, a determination that the decree is still capable of execution, and the decree-holder is entitled to enforce it.”

    We think that this view must be accepted and that in view of the qualification as to limitation of the order of February 5, 1934, the learned Assistant Judge was right in holding that the order of February 5, 1934, could not operate as a revivor.

    It is further contended by Mr. Coyajee that if not the order of February 5, 1934, the order passed on January 19, 1934 must be taken to operate as a revivor. That order merely made the notice of January 8 absolute against the assignor. We do not think that this can be interpreted as meaning that the decree was determined to be capable of execution against the judgment-debtors. All that this order means is that the original decree-holder was no longer entitled to execute the decree. The question of limitation certainly became important after January 31, 1934, i.e, twelve years after the date of the decree, and it cannot be said that it was possible after that date to determine that the decree still remained executable without going into the question of limitation.

    The third point sought to be made by Mr. Coyajee was that the order of February 5, 1934, must be held to relate back to the date of the application. We do not think that this question is now of any consequence in view of our conclusion that the final order of February 5, 1934, does not operate as a revivor. In support of the proposition in question, besides, Mr. Coyajee can only rely upon Venkapaiya v. Nazerally Tyabally, which, in our opinion, is not applicable to the facts of this case.

    Finally, it has been urged on behalf of the assignee that on the Court's making its notice absolute against three of the judgment-debtors on January 26, 1934, limitation must beheld to have commenced to run immediately, and that even if that order was vacated later on, the running of limitation could not be stopped; and that it can thus be held that the revivor created on January 26 remained operative at the date of the Darkhast. We do not, however, think that there is any substance in this line of argument, as we must hold that the vacating of the order of January 26 put an end to the running of limitation which owed its commencement to such order. To hold otherwise would obviously lead to anomalous results.

    In the result, therefore, the appellants in Second Appeal No. 301 of 1937 and the respondent in Second Appeal No. 302 of 1937 must succeed. The first of these appeals will, therefore, be allowed with costs throughout, orders of both the Courts below being set aside. Second Appeal No. 302 of 1937 will be dismissed with costs. The execution of the decree will, therefore, be barred against all the judgment-debtors. First Appeal No. 245 of 1935, which was filed to meet the contingency that might arise in case Appeal No. 32 of 1935 filed in the District Court was thrown out on the ground of pecuniary jurisdiction, must be dismissed without any orders as to costs.

    Second Appeal 301 allowed;
    Second Appeal 302 dismissed.
    Y.V.D
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    Comments

    Hasan Vali Bagas v. Isap Bapuji Patel
    (Jun 20, 1938)