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Madhu Sudan Chowdhri And Others v. Mst. Chandrabati Chowdhri And Others

Privy Council
Mar 20, 1917
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Judgment Summary — Lord Buckmaster (Privy Council)

Factual and Procedural Background

This litigation is long-running, originating from proceedings said to have been commenced on 20 April 1859 and resulting in a Privy Council decree on 22 May 1872 in favour of two ladies (the first two respondents) against Fateh Narayan Choudhri for a large sum. Fateh Narayan was entitled to an undivided one-fifth share in 71 properties across 45 villages.

Subsequent to the earlier decrees, the third respondent (Maharaja Rameshwar Singh Bahadur) obtained decrees in 1887 and 1888 against the respondents for sums said to be 21,855 rupees, and later attached the first two respondents' rights against Fateh Narayan. On 1 May 1900 an application was made for sale of Fateh Narayan's one-fifth share; the sale was fixed for 15 September 1900 but execution was stayed by the first two respondents on a limitation plea (ultimately rejected), requiring fresh proclamations under s.291 of the Civil Procedure Code.

A sale of one-fifth of a portion of the properties was effected on 17 June 1901. The appellants purchased nearly the whole of the property at an aggregate price of 12,115 rupees. On 17 July 1901 the first two respondents petitioned to set aside the sale alleging, among other things, that (1) sale proclamations were not served on all mouzahs, (2) the return of service filed in Court was made in collusion with the purchasers (the appellants), and (3) the sale was therefore concluded at an undervalue produced by collusion.

The Subordinate Judge dismissed the petition on 11 March 1904. Soon after the sale, a fire destroyed most court records of the service of sale proclamations; only in nine instances were proclamations preserved and subsequently produced. On appeal to the High Court, the two judges critically examined those nine documents and concluded they bore no sign of exposure to sun or rain and therefore could not have been affixed and exhibited as sworn. The High Court treated that finding as demonstrating fraudulent suppression of proclamations and proceeded to findings overturning the Subordinate Judge's decision.

The present appeal to the Privy Council followed. Lord Buckmaster reviewed the record, the destroyed materials, the oral evidence, the documentary exhibits (which the Board had not itself seen), and the conduct of counsel at the High Court hearing, and expressed the Privy Council's conclusion accepting the High Court's finding of fraudulent presentation of the nine proclamations.

Legal Issues Presented

  1. Whether the sale of the one-fifth share in the properties should be set aside because the sale proclamations were not properly served and the return of service was produced in collusion with the purchasers, rendering the sale fraudulent.
  2. Whether the High Court's factual findings — in particular, that the nine produced sale proclamations were fabricated or had never been affixed — should be accepted by the Privy Council in face of conflicting oral testimony and the destruction of other court records by fire.
  3. Whether the appellants should be associated with the scheme of deceit implied by the fabricated proclamations and whether that association is material to judging the honesty of their defence.

Arguments of the Parties

Appellants' Arguments

  • The appellants placed before the Subordinate Judge substantial oral and documentary evidence to establish regularity of proceedings and proper service of the sale proclamations: the peon responsible for proclamations swore they were duly affixed; a servant of the Maharaja identified properties; and various chowkidars (village watchmen) corroborated the proceedings and produced nine proclamations they vouched as the documents affixed in accordance with Ss. 274, 287 and 289 of the Civil Procedure Code.
  • Implicitly, appellants relied on the Subordinate Judge's findings in their favour and on the presumption of regularity attaching to official acts and court records.

Respondents' Arguments

  • The first two respondents alleged non-service of proclamations in all mouzahs, collusion between the process-server (and the return filed) and the purchasers (the appellants), and that the sale was at an undervalue caused by that collusion.
  • They produced limited, negative-character evidence aimed at disproving the presumption that official acts had been rightly carried out; however, the Subordinate Judge found much of that evidence untrustworthy.
  • On appeal to the High Court, the respondents relied significantly upon the physical condition of the nine produced proclamations to support the charge that the documents were fabricated and never exhibited, thereby justifying setting aside the sale.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Moriarty v. London, Chatham, and Dover Railway Co. [1870] 5 Q. B. 314 = 22 L. T. 163 = 39 L. J. Q. B. 199 = 18 W. R. 625 Authority for associating parties with a scheme of deceit where documentary or other evidence appears to have been prepared to mislead the Court; bearing on whether a party should be regarded as implicated in fraudulent evidence. The Privy Council invoked this authority to justify regarding the appellants as associated with the prepared falsehoods (the nine proclamations) and to treat that association as an important element when assessing whether the appellants' defence was honest and just.

Court's Reasoning and Analysis

Lord Buckmaster's analysis proceeds from the recognition that the case turns on disputed questions of fact rather than on points of law or on conflicts within the recorded oral testimony. The core factual issue was whether the sale proclamations had been lawfully affixed and served in accordance with the Civil Procedure Code.

The Subordinate Judge, who heard witnesses, accepted the appellants' broad body of evidence: testimony from the peon responsible for proclamations, corroboration from a servant of the Maharaja identifying properties, and evidence from chowkidars, together with nine proclamations produced in nine villages. The Subordinate Judge therefore held the sale to have proceeded with necessary formalities.

On appeal, the High Court subjected the nine produced proclamations to close physical examination and concluded that their condition (no signs of exposure to sun or rain) was inconsistent with the appellants' evidence that they had been affixed and exhibited on houses, trees and other places. The High Court concluded that those documents had never been exhibited and that they were fraudulently presented to mislead the Court.

Lord Buckmaster addresses the evidentiary complication caused by a post-sale fire which destroyed most of the official records of service, leaving only the nine proclamations at issue. He recognises that ordinarily the presumption of regularity of official acts would favor the appellants and that the burden to disprove such regularity lay on the first two respondents; however, in this particular instance the High Court's detailed and critical inspection of the physical documents led it to reject the appellants' account.

The Privy Council places significant weight on three factors:

  • The High Court judges' impressions and critical examination of the documents, which convinced them the documents had never been exhibited.
  • The conduct of the appellants' pleader at the High Court hearing, who, when confronted with those documents and the Court's criticisms, admitted he could not oppose "the very reasonable plea" to set aside the sale (a concession that the Privy Council treats as materially corroborating the High Court's conclusion).
  • The inability of the appellants to rectify or counter that apparent concession while the matter was still fresh in the High Court (no affidavits, immediate correction or evidential challenge were presented in time to the High Court), and the long delay (ten years) between the High Court decree and the present appeal, which makes post hoc affidavits as to what occurred at the hearing of limited value.

Given that the Privy Council had not itself seen the physical documents and that a decade had elapsed since the High Court judgment, Lord Buckmaster concluded that the Board was bound to accept the High Court's clear conclusion that the nine documents were fraudulently put forward and that no such proclamations had been affixed. He further held that the fraudulent nature of those documents undermined the entire evidential fabric put forward by the appellants and justified associating them with the scheme of deceit in assessing the honesty of their defence (citing Moriarty as supporting authority).

Holding and Implications

Holding: Appeal dismissed.

The Privy Council accepted the High Court's factual finding that the nine sale proclamations were fraudulently presented and that, in consequence, the High Court's judgment (which reversed the decision of the Subordinate Judge) is supported. The Board therefore dismissed the appellants' appeal.

Implications:

  • The direct effect is that the Privy Council affirms the High Court's conclusion based on fraudulent documentary evidence; the appeal is dismissed and the High Court judgment is supported by the Board.
  • The Privy Council associated the appellants with the prepared falsehoods, treating that association as relevant to judging the honesty and justice of their defence, relying on the principle illustrated in Moriarty.
  • On costs, the Privy Council declined to make any order as to costs against the third respondent (the Maharaja), observing that he had not actively supported the appeal once the peon (his servant) was found to have acted dishonestly.
  • The opinion records regret at the prolonged duration of the litigation (spanning nearly sixty years), and notes that delay in bringing the case (including a ten-year delay from the High Court decree to the present appeal) complicates appellate review; beyond this observation the opinion does not assert or establish any novel legal precedent—rather it applies established evidentiary principles to the facts before the Court.

Final disposition: Appeal dismissed. The Privy Council will advise His Majesty accordingly.

Show all summary ...

Lord Buckmaster:-

The difficulties with which their Lordships are confronted in this case are not connected with any question of law, nor do they arise from the recorded evidence of the witnesses. They are associated with inferences drawn from documents which are not before the Board and from circumstances attending the hearing before the High Court which it is now impossible to reproduce. Their dispute entirely depends upon certain questions of fact. These questions were all answered by the District Judge, who heard the case in the first instance, in favour of the appellants; and, but for the circumstances to which allusion has been made, it would have been difficult for the respondents to convince their Lordships that they should support the reasoning of the High Court by whom this judgment was overruled.

The history of this litigation extends for more than half a century. It appears that on the 22nd May 1872, two ladies, whose names appear as the first two respondents to this appeal, though one has recently died, obtained a decree in the Privy Council against one Fateh Narayan Choudhri for a sum which now exceeds 90,000 rupees. The proceedings, which were temporarily concluded by this judgment, are said to have been commenced on the 20th April, 1859. On the 18th March 1887, and the 24th August 1888, the third respondent to this appeal who is the Maharaja Rameshwar Singh Bahadur, obtained two decrees from the Court of the District Judge of Mozufferpore and from the High Court of Calcutta respectively against the respondents. The amounts due under such judgments are said to he 21,855 rupees. The said Fateh Narayan was entitled to an undivided one-fifth share in seventy-one properties in forty-five villages, and the first two respondents endeavoured to execute their decree by attachment and sale of the said share. Fateh Narayan, however, denied that be possessed any such interest and it became necessary to institute proceedings to establish that this right existed. These proceedings were ultimately decided by the High Court of Calcutta on the 30th August 1898 in favour of the first two respondents. But the difficulties of these two ladies were not thereby ended, for the third respondent the Maharaja attached under his decrees their rights against the said, Fateh Narayan and, on the 1st May 1909,applied that the said one-fifth share of the judgment-debtor Fateh Narayan in the said properties should be sold.

It is alleged that in these proceedings the usual notices were issued and the sale proclamations were served, the date of the sale being fixed for the 15th September 1900. This execution was, however, stayed on the application of the two first respondents, who claimed that these decrees of the Maharaja were barred by the Statute of Limitations. This claim was ultimately rejected, but fresh proclamations became necessary under S. 291 of the Civil Procedure Code, and it is these proceedings that have given rise to the dispute out of which the present appeal proceeds.

The sale of one-fifth of a considerable portion of the properties was in fact effected on the 17th June 1901, and nearly the whole of the property was purchased by the appellants, no other intending purchasers being present at the sale the aggregate price for the whole being 12,115 rupees. On the 17th July 1901, a petition was presented by the first two respondents seeking to set the sale aside, based upon many allegations the most material for the purpose of the present appeal being that the sale proclamation was not served on all the Mouzahs, that the return of service filed in the Court was filed in collusion with the purchasers, the present appellants, and that the sale was accordingly concluded at a price far below the real value a result induced by the collusion of the processerver with the present appellants, who were co-sharers of the judgment-debtor in the property sold. This petition was dismissed by the Subordinate Judge on the 11th March 1904. In the ordinary course the record of the service of the sale proclamations would have been returned to the Court and there preserved as an official document. But, owing to a fire shortly after the sale, the official documents of the Court were destroyed, and in only one instance was such a record preserved. In the special circumstances of this case it may be doubted if this unfortunate accident has greatly embarassed the litigation; it would, in any circumstances, be open to persons challenging the sale to show that these records were inaccurate and, when they were destroyed, the burden of disproving the prima facie presumption that official acts were rightly carried out would rest with the two respondents. They called some evidence for the purpose: necessarily evidence of a negative character. It was limited in its extent; it affected only a very small number of the villages where the property was situated; and it appears to have been regarded as untrustworthy by the Subordinate Judge who saw the witnesses. The appellants, on the other hand called a large body of evidence to establish the strict regularity of all the proceedings. They brought before the Court the peon, whose duty it was to make proclamations and affix the official notices on the properties that were to be sold. He swore they were all duly affixed, and his evidence was corroborated by a servant of the Maharaja, who identified the several properties; in addition, a number of chowkidars, resident in the villages, gave definite evidence of the proceedings, and in nine cases produced proclamations of the sale, which they undoubtedly vouched as being the actual documents that had been fixed upon the properties in accordance with the procedure laid down by virtue of Ss. 274, 287 and 289 of the Code.

The evidence convinced the learned Subordinate Judge that the sale had proceeded with due regard to all necessary formalities, and the judgment that he delivered does not appear to have omitted from consideration any matter excepting one, which their Lordships cannot help regarding (in the course that the case took in the High Court) as a circumstance most critical in determining the truth of the evidence. For when the case came before the High Court on appeal, these nine sale proclamations were again produced, and then indeed, as it appears for the first time these documents were submitted to close and critical examination, with the result that the two learned Judges who heard the appeal were convinced that the story as to their having been fixed upon the various properties in the manner specified by the witnesses was of necessity wholly false. They pointed out that the documents bore no sign whatever of exposure either to sun or rain, and they showed how impossible it was to reconcile the condition in which the documents then were with the statement that they had been affixed to a house, fastened to various trees, and exhibited in the manner sworn to by the witnesses. Their judgment has satisfied their Lordships that they intended to find, and did in fact find, not that these documents had been put up and afterwards taken down, but that they had never been exhibited at all. It further appears from their judgment that in the course of the hearing the pleader on behalf of the present appellants could not answer these criticisms, and admitted that he could not oppose "the very reasonable plea" to set aside the sale. Upon this statement the learned Judges proceeded to certain findings, with some of which at least, in the absence of argument on behalf of the respondents, their Lordships would find it difficult to agree. But these subsequent findings do not affect the result of the incidents to which their Lordships have referred. If these documents never had been affixed then the wholy story of the service of these proclamations completely broke down. It was not merely inaccurate evidence where the inaccuracy might be regarded as due to mistake or forgetfulness it becomes a series of connected falsehoods, carefully prepared and put together for the deliberate purpose of misleading the Court. It is true that the actual documents themselves only affected nine villages, but the complete destruction of the evidence in these particulars did not leave the other cases unaffected, but destroyed the whole fabric of the story put forward by the appellants in support of their case. In these circumstances it is, in their Lordships' opinion, only right that the appellants on whose behalf this evidence had been prepared should be associated with the scheme of deceit which it was designed to carry out, and that such association should be regarded as an important element in determining whether their defence was honest and just (see Moriarty v. London, Chatham, and Dover Railway Co. [1870] 5 Q. B. 314=22 L. T. 163 = 39 L. J. Q. B. 199 = 18 W. R. 625. The documents themselves have not been seen by their Lordships, and it is now ten years since the decree of the High Court was given. Their Lordships therefore feel bound to accept the finding of the High Court, who were obviously impressed in an unusual degree by the character of these documents, which they regarded as establishing the fraudulent suppression of the proclamations. There is, indeed, additional weight given to this conclusion by the action of the pleader, to which reference has been made. He did not give a formal consent to the dismissal of the appeal, but he obviously made a statement which showed that on being confronted with these documents and the criticisms made upon them by the Court he was unable further to contend for the trustworthiness of his client's case.

It was pointed out to their Lordships that the actual judgment was given some 14 days after the hearing of the appeal, and it is suggested that the learned Judges might have misunderstood the action of the pleader in the conduct of the case. Their Lordships are quite unable, to accept this contention had there been any mistake in this respect it would have been incumbent upon the appellants while the matter was still fresh in the minds of the Judges, to have caused their pleader to call the attention of the Court to the fact that the statement made with regard to his conduct was a statement that had been made in error, no such step was taken and, apart from the argument of counsel, there is nothing before their Lordships to make them think that any such mistake occurred; an affidavit has indeed been filed by a person who said he was present at the trial, that he would certainly have noticed any such admission, that such admission was not made, and that the learned pleader is now unable to recall whether in fact it did of did not occur. After such a lapse of time this is wholly insufficient, and their Lordships therefore, do not feel at liberty to express their views upon the case as it stood when it left the District Court, but consider that they are bound to accept the clear conclusion of the High Court, that the documents in question were fraudulently put forward as the actual sale proclamations affixed to the properties in pursuance of the Code, and that in fact no such proclamations were affixed at all; and this conclusion is sufficient to support the judgment which is the subject of this appeal.

Their Lordships realise with regret that the result of the view that they take will be to keep open the struggle in which the first two respondents have now been engaged for nearly sixty years in trying to obtain payment of a just debt. Comment upon the length of these proceedings cannot be fairly made without fuller knowledge of all the attendant circumstances than their Lordships possess. In part, at least, the two first respondents seem to have contributed to the prolongation of the struggle. The delay in bringing this case before their Lordships a delay of ten years from the date of the decree of the High Court is due to circumstances partly beyond the control of either party, but partly also is one for which both sides are to blame. That such delay should be possible justifies the reproach to which the administration of the law is so often and so justly made subject, a reproach which their Lordships are most anxious to remove.

The third respondent, the Maharaja, has taken no active part in this appeal. Reappears in the course of these proceedings to have acted as their Lordships would have expected a person in his position to act. When once the peon, who was technically his servant, was found guilty of dishonesty, he no longer desired to support the judgment to which that dishonesty had contributed. In the result, therefore, although this appeal will be dismissed with casts, their Lordships do not think that any order ought to be made as to the costs of the Maharaja. And they will humbly advise His Majesty accordingly.

Appeal dismissed.