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  • TRANSFER OF PROPERTY ACT 1882
  • section 230 of the Code of Civil Procedure, 1882,
  • section 287 of the Code of Civil Procedure, 1882.
  • section 244 of the Code of Civil Procedure, 1882,
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Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
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Acts
  • TRANSFER OF PROPERTY ACT 1882
  • section 230 of the Code of Civil Procedure, 1882,
  • section 287 of the Code of Civil Procedure, 1882.
  • section 244 of the Code of Civil Procedure, 1882,
Smart Summary

Factual and Procedural Background

This appeal arises from a decree of the High Court at Madras dated 17 February 1914 affirming a decree of the District Judge of North Arcot dated 9 February 1910 which dismissed the plaintiff's suit. The plaintiff (appellant) had instituted a suit in the District Court of North Arcot on 16 November 1907 to redeem three mortgages dated 12 December 1876, 7 January 1879 and 10 May 1881, charged on ancestral property and created by his father before the plaintiff and his brother were born. The mortgage of 7 January 1879 was originally in favour of N. Vijayaragavachariar (referred to in the opinion as "the vakil"); the other two mortgages vested by assignment in the vakil.

On 19 March 1886 the vakil sued for sale in respect of the mortgage dated 10 May 1881 against the father and the two minor sons (the plaintiff aged about 4 and his brother aged about 3). The District Judge overruled the father's objection to acting as guardian and on 15 April 1886 made a decree ordering recovery of Rs. 10,891 and sale of the mortgaged property. That decree was stated to be non-compliant with provisions of the Transfer of Property Act, 1882.

An execution petition under section 230 of the Code of Civil Procedure, 1882 was filed on 16 August 1886 (Execution Petition No. 57 of 1886 in O.S. No. 5 of 1886). Attachment issued on 18 August 1886 and notice of sale on 13 September 1886. On 28 September 1886 the minors' maternal uncle, Govindaraju Mudali, applied to be appointed guardian and to have the decree of 15 April 1886 set aside; on 10 November 1886 the District Judge held the father's appointment as guardian illegal, appointed Govindaraju as guardian, and set aside the 15 April 1886 decree as against the minors.

Because Govindaraju did not file a written statement on behalf of the minors when ordered, the District Judge on 15 November 1886 made a fresh decree in substantially the same terms. That later decree likewise did not comply with the Transfer of Property Act but was not appealed and became final; it therefore superseded the earlier decree.

A proclamation of intended sale under section 287 CPC was made on 24 January 1887, describing the sale as of the right, title and interest of the defendants alone and fixing a sale date of 19 September 1887. The High Court dismissed an application to stay the sale on 1 August 1887. The vakil was permitted to bid (order of 28 February 1887), became the purchaser at the auction held on 19 September 1887, the sale was confirmed on 13 December 1887 and a sale certificate issued on 1 February 1888. The vakil died before the present suit; the first respondent is his son and other respondents are purchasers from the vakil. The father and one brother of the appellant later died; the family had been a Hindu joint family.

Legal Issues Presented

  1. Whether the sale effected by the auction was executed under the decree of 15 April 1886 (the earlier decree) or under the decree of 15 November 1886 (the later decree that had superseded the earlier one).
  2. Whether non-compliance with the provisions of the Transfer of Property Act, 1882 (in particular, no day fixed for payment within six months as required) deprived the defendants of their right to redeem the mortgaged property.
  3. Whether questions as to the validity or extent of rights sold at the execution sale, including disputes involving the auction purchaser who is also a party to the suit, must be determined by the court executing the decree under section 244 of the Code of Civil Procedure, 1882 (rather than by a separate suit).

Arguments of the Parties

Appellant's Arguments

  • The appellant contended that the auction sale was conducted in execution of the decree dated 15 April 1886 and not of the decree dated 15 November 1886; on that basis, only the father's right and interest (and not the minors') would have been sold.
  • The appellant further argued that because the proceeding for sale under the 19 March 1886 suit did not comply with the provisions of the Transfer of Property Act, 1882 (specifically that no payment day was fixed within six months from the date of declaring the amount due), the defendants to that suit were not debarred from their right to redeem.

The opinion does not contain a detailed, separate account of the respondents' legal arguments; the Court's reply to the appellant's points appears in the reasoning section below.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Prosunno Kumar Sunyal v. Kali Das Sanyal, [1892] 19 Cal. 633 (P. C.) = 19 I. A. 166 = 6 Sar. 209 Authority that section 244 of the Code of Civil Procedure, 1882 applies to questions arising in execution proceedings where the question concerns an auction-purchaser as well as the parties to the suit. The Court relied on this authority to hold that the question in the present case (involving the vakil who was both auction purchaser and party) could and should have been raised before the court executing the decree and determined under section 244; accordingly, the appeal on those grounds could not prevail.

Court's Reasoning and Analysis

The Court proceeded by addressing the appellant's two principal contentions and considering the procedural posture of the execution and sale:

  1. Concerning whether the sale was under the earlier (15 April 1886) or the later (15 November 1886) decree, the Court emphasized the factual sequence: the 15 November 1886 decree replaced the earlier decree as against the minors, the proclamation of sale was made after that later decree, the sale itself occurred after relevant orders permitting bidding, and the sale was confirmed and certified. The Court concluded that, in fact, the property and "all right, title and interest" of those defendants in the property were sold to the vakil in execution of a decree of a court which had jurisdiction and that the decree was not appealed.
  2. On the objection that the Transfer of Property Act provisions had not been complied with (and thus that the defendants retained the right to redeem), the Court's analysis was cautious and narrowly framed: it stated that whether or not the statutory provisions were complied with, the operative fact was that the property and the defendants' rights were in fact sold in execution of a decree of a court of competent jurisdiction and that the decree had not been appealed. That factual and procedural conclusion was decisive.
  3. The Court then addressed the procedural vehicle by which such disputes should be resolved. It cited section 244(c) of the Code of Civil Procedure, 1882, which directs that certain questions "relating to the execution, discharge or satisfaction of the decree, or to the stay of execution thereof" shall be determined by the court executing the decree and not by a separate suit. The Court relied on the Privy Council decision in Prosunno Kumar Sunyal v. Kali Das Sanyal to support the proposition that section 244 applies where the question concerns the auction-purchaser as well as the parties.
  4. Applying that principle, the Court observed that the vakil was both auction purchaser and a party to the suit; therefore the question raised in the present suit could have been raised before and decided by the court executing the decree of 15 November 1886. The Court treated this as a bar to the appellant's challenge in the present appeal.

In sum, the Court combined factual findings about which decree had operative force and procedural law under section 244 CPC (as explained by the cited precedent) to reject the appellant's contentions.

Holding and Implications

Holding: The appeal is dismissed.

Consequences and implications:

  • The direct operative consequence is that the appellant's suit for redemption failed and the appellate challenge likewise failed; the appellant was ordered to pay the costs of the appeal.
  • The Court treated the sale as having been made under the decree that was final and unappealed, and held that procedural avenues under section 244 CPC meant the execution court was the appropriate forum to raise and decide the relevant questions. The opinion does not purport to establish a new general principle beyond applying the existing authority (Prosunno Kumar Sunyal) and does not record any broader change in precedent; it confines itself to the direct effect on the parties.

    Ganapathy Mudaliar v. Krishnamachariar And Others

    Sir John Edge :

    This is an appeal from a decree of the High Court at Madras, dated the 17th February 1914 which affirmed a decree, dated the 9th February 1910, of the District Judge of North Arcot, by which the suit was dismissed. The plaintiff is the appellant.

    The suit was brought in the Court of the District Judge of North Arcot on the 16th November 1907 to redeem three mortgages, dated respectively the 12th December 1876, the 7th January 1879 and the 10th May 1881. The mortgages were of ancestral property, and were made by the father of the plaintiff before the plaintiff or his brother, since deceased were born. The mortgage of the 7th January 1879 was in favour of N. Vijayaraga-vachariar, a vakil, to whom their Lordships will refer as the vakil. The mortgages of the 12th December 1876 and the 10th May 1881 vested by assignment in the vakil. The plaintiff in this suit was born in September 1881; his brother was born in May 1882.

    On the 19th March 1886, the vakil brought in the District Court of North Arcot a suit for sale on the mortgage of the 10th May 1881, against the plaintiffs father, the plaintiff, aged 4 years, and his brother, aged 3 years, the brothers being described as 'maintained by the first defendant,' who was their father. The suit was entered on the files of the Court as Original suit No. 5 of 1886. Their father, who had not been appointed as their guardian for the suit, objected that he was not their guardian, but the District Judge overruled the objection, and, on the 15th April 1886, made a decree in the following terms :-

    "It is ordered that plaintiff do recover Rs. 10,891 together with further interest at 6 per cent per annum from date of plaint to date of payment and costs, to be recovered from the first defendant personally, and by sale of the mortgaged property."

    That decree was doubtless intended to be in compliance with the provisions of 'The Transfer of Property Act, 1882' but it did not comply with those provisions.

    On the 16th August 1886, the vakil presented to the District Court his petition, under section 230 of the Code of Civil Procedure, 1882, for execution of the decree of the 15th April 1886. The petition was entered on the files of the Court as 'Execution Petition No. 57 of 1886 in O.S. (Original Suit) No. 5 of 1886,' and by it the petitioner prayed 'that the amount may be recovered with further costs, together with further interest, by the attachment and sale of immovable property set out in the schedule herewith filed. In that petition the present plaintiff and his brother were described as minors, defendants 'by their guardian, the first defendant'. In the schedule the vakil disclosed the fact that there existed the mortgages of the 12th December 1876 and the 7th January 1879. On the 18th August 1886, the warrant of attachment was issued, and on the 13th September 1886 a notice of sale was issued.

    On the 28th September 1886, one Govindaraju Mudali, who was a maternal uncle of the present plaintiff and his brother, applied to the District Court to be appointed their guardian and to have the decree of the 15th April 1886 set aside, on the ground that their father was not their proper guardian. Govindaraju Mudali apparently contended in support of his application that the debt, in respect of which the mortgage of the 10th May 1881 had been given, was not one which the minors or the properties were liable to discharge. On the 10th November 1886 the District Judge held that the appointment of the father as guardian had been illegal, and in his place appointed Govindaraju Mudali as guardian of the minors, and set aside the decree of the 15th April 1886 as against them. Govindaraju was ordered to put in a written statement on the 15th November 1886 on behalf of the minors, but he failed to do so and did not appear. On the 15th November 1886, the District Judge made a decree that the plaintiff (the vakil) 'do recover Rs. 10,891 together with further interest at 6 per cent per annum from date of plaint to date of payment, and costs to be recovered from the first defendant personally and by sale of the mortgaged property.' That decree did not comply with the provisions of 'The Transfer of Property Act, 1882,' but it was not appealed and it became final. It was obviously intended to be in supersession of the decree of the 15th April 1886, and must be regarded as having superseded that decree.

    On the 24th January, 1887, the Court of the District Judge caused a proclamation of the intended sale to be made under section 287 of the Code of Civil Procedure, 1882. The proclamation is described on the face of it as in Original Suit No. 5 of 1886, application 57 of 1886, and proclaimed that-

    "Whereas the immovable property mentioned in the list attached hereto and belonging to the said defendants (the father and his two sons) has been attached upon a petition being presented for execution of the decree passed in the above suit, take notice that if the amounts specified below be not paid into this Court, or if no other steps be taken to satisfy the decree, the said property shall be sold in public auction in this Court on the 19th September, 1887, and that in that sale the right, title and interest possessed by the above defendants alone in respect of that property shall be sold."

    So far as appears from the documents in the record, the only attachment which had issued was that of the 18th August 1886.

    It appears that Govindaraju Mudali, as the guardian of the minors, had appealed to the High Court at Madras from some order which the District Judge had made on the 20th December, 1886, in Original Suit No. 5 of 1886. What the order appealed from was, does not appear, nor is there anything in the record which suggests what the nature of the order was. However, that appeal not having been disposed of, Govindaraju Mudali, at sometime between the 24th January, 1887, and the 2nd March, 1887, applied to the High Court for an order to stay the sale of the property attached in execution of the decree of the District Court of North Arcot in Original Suit No. 5 of 1886. That application was dismissed by the High Court on the 1st August 1887.

    On the 28th February, 1887, the District Court made an order permitting the vakil to bid at the sale. On the 19th September, 1887, the immoveable properties in question, were sold, subject to incumbrances, by public auction, and the vakil became the purchaser.

    The sale was confirmed by the District Judge on the 13th December, 1887, and he, on the 1st February, 1888 gave the sale certificate under his hand and the seal of the Court. The vakil died before, this present suit; the first respondent is his son. The other respondents are purchasers from the vakil. The father of the present plaintiff died in May 1894. The plaintiff's brother died in September 1904. The present plaintiff, his brother and their father had constituted a Hindu joint family.

    On behalf of the appellant here it was contended that the sale took place in execution of the decree of the 15th April, 1886, and not in execution of the decree of the 15th November, 1886 and that under such circumstances only the right, title and interests of the father were sold. That contention is based on the fact that the attachment of the 16th August, 1886, was made under the decree of the 15th April, 1896. The sale must have been under the decree of the 15th November 1886. No one was or could have been misled as to the decree under which the sale was taking place. The proclamation of sale of the 24th January, 1887, was made subsequent to the decree for sale of the 15th November, 1886, and must have been made consequent on that decree, with the knowledge of all parties and without challenge, and that proclamation shows that what was to be sold by auction was the right, title and interest in the property of the defendants to the suit of the 19th March 1886, and the certificate of sale shows that the right, title and interest in the property of the defendants to that suit were sold to the vakil. The present Plaintiff and his brother were defendants to that suit, under the guardianship of Govindaraju Mudali, at the time when the decree of the 15th November, 1886 was made and at the time when the sale took place, and thence until the sale was confirmed and the certificate of sale was made.

    It has also been contended on behalf of the appellant here that as the provisions of 'The Transfer of Property Act 1882,' were not complied with in the suit for sale of the 19th March, 1886, and as no day was fixed by the Court on which payment might be made within six months from the date of declaring in Court the amount due, the defendants to the suit of the 19th March, 1888, were not debarred from a right to redeem. It appears to their Lordships that the answer to that contention is that whether or not the provisions of 'The Transfer of Property Act, 1882,' were complied with, the property and all right, title and interest of those defendants in it were in fact sold to the vakil in execution of a decree of a Court which had jurisdiction to entertain the suit in which the decree was made, and that decree was not appealed.

    By section 244 of the Code of Civil Procedure, 1882, it was enacted that :-

    "244. The following questions shall be determined by order of the Court executing a decree and not by a separate suit (namely) :-

    "(c) Any other question arising between the parties to the suit in which the decree was passed, or their representatives, and relating to the execution, discharge or satisfaction of the decree, or to the stay of execution thereof."

    This Board decided in Prosunno Kumar Sunyal v. Kali Das Sanyal [1892] 19 Cal. 633 = 19 I. A. 166 = 6 Sar. 209 (P. C.), that section 244 had been rightly held in India to apply in a case in which the question raised concerned the auction-purchaser at an auction sale as well as the parties to the suit. In this case the vakil was the auction purchaser and was also a party to the suit. The question raised in the present suit could have been raised before the sale was confirmed, and, if so raised, would have been determined by the court which was executing the decree of the 15th November, 1886.

    Their Lordships will humbly advise His Majesty that this appeal fails, and should be dismissed.

    The appellant must pay the costs of this appeal.

    Appeal dismissed.

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    Comments

    Ganapathy Mudaliar v. Krishnamachariar And Others
    (Dec 14, 1917)