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Khalil-Ur-Raftman Khan v. Collector Of Etah
Structured Summary of the Opinion delivered by Sir Lancelot Sanderson
Factual and Procedural Background
This appeal arises from the High Court of Judicature at Allahabad's order and judgment dated 24 June 1930, which confirmed an order of the Subordinate Judge of Etah dated 22 April 1929. The underlying matter concerned execution of a final decree for sale dated 29 July 1922 in a mortgage suit.
Material factual chronology contained in the opinion:
- In 1909 or 1910 Abdul Jalil Khan borrowed money and several simple money decrees were entered against him.
- The judgment-debtor's ancestral property was attached in execution and execution proceedings were transferred to the Collector under S.68, Civil Procedure Code.
- On 29 August 1911 the Collector granted a lease of the property to Habib-ur-Rahman Khan for 17 years (lease expired 1 July 1928).
- On 25 September 1914 Abdul Jalil Khan executed a mortgage of the property for Rs. 15,000 in favour of Rao Maharaj Singh (the respondent's interest is represented by the Collector of Etah, in charge of Rao Maharaj Singh's estate).
- On 25 October 1920 the Collector filed a suit based on that mortgage; a preliminary decree was made 9 March 1921 and a final decree on 29 July 1922 (both ex parte after due notice).
- Abdul Jalil Khan died on 4 October 1923; the appellant is his successor.
- Execution-related steps taken by the decree-holder (Collector of Etah):
- 2 June 1925 — first application for execution (prayed for sale); notices issued to proposed legal representatives; execution struck off 14 August 1925 because notices unserved and no further step taken.
- 8 July 1926 — second application for sale against legal representatives; required copies not filed; notices reissued; one notice returned unserved on 4 August 1926; notices served by 10 September 1926 and legal representatives were brought on record; application struck off 16 September 1926 as decree-holder took no further steps.
- 30 August 1928 — a third application for execution was made; the appellant (Mohammad Khalil-ur-Rahman Khan) filed objections under S.47, Civil P.C.
- The Subordinate Judge dismissed the objections by order dated 22 April 1929; the High Court affirmed on 24 June 1930. This appeal to Their Lordships was dismissed.
Legal Issues Presented
- Whether the earlier applications for execution dated 2 June 1925 and 8 July 1926 constituted applications "in accordance with law to the proper Court for execution, or to take some step-in-aid of execution" within the meaning of Art. 182(5), Limitation Act, and thus operated to save the decree from being barred by limitation.
- Whether, for the purpose of Art. 182(5) (unamended form applicable to the first two applications), it is necessary that the decree-holder must have acted bona fide with a genuine intention of executing the decree (i.e., whether intention/bona fides is a condition precedent to such earlier applications saving limitation).
- The opinion also notes that, in Courts in India, the appellant argued (though not relied upon before the Board) that the underlying mortgage and the decree were illegal and unenforceable, including an alleged contravention of para.11(1), Sch.3, Civil P.C.; however this argument was not pursued before Their Lordships.
Arguments of the Parties
Appellant's Arguments
- The mortgage was illegal and the decree founded upon it was not enforceable at law; it was argued to contravene para.11(1), Sch.3, Civil P.C. (these points were raised in Indian Courts but not pressed before the Board).
- On the point pursued before Their Lordships: the application for execution (leading to the order of 22 April 1929) was barred by limitation because the earlier applications of 2 June 1925 and 8 July 1926 were not valid "steps-in-aid of execution" that would save limitation.
- The appellant further argued that the earlier applications were not bona fide steps to execute the decree but were colourable applications taken merely to gain time; consequently they should not be treated as stopping the running of limitation.
Respondent's Position (Collector of Etah, representing Rao Maharaj Singh)
- The respondent relied on the fact that the earlier applications (2 June 1925 and 8 July 1926) were made in accordance with the Code of Civil Procedure to the proper Court and were steps-in-aid of execution; therefore, under Art. 182(5) (as it stood prior to the 1927 amendment), those applications were sufficient to start the period of limitation from the dates of those applications and saved the decree from being time-barred.
- The Subordinate Judge specifically found no reason to question the bona fides of the decree-holder, and that the earlier applications were not merely to save limitation but were steps-in-aid of execution; the respondent relied on that finding, as affirmed by the High Court.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Kayastha Coy. Ltd. v. Sita Ram Dube, AIR 1929 All 625 = 118 I C 17 = 52 All 11 (Full Bench) | Whether under Art.182(5), Limitation Act, an application or step specified in Art.182(5) suffices to save limitation merely by being made in accordance with law to the proper Court, or whether it is additionally necessary to show that the application was made with a bona fide intention to obtain execution (i.e., an intention requirement). | The Court followed the Full Bench decision which answered the question in the negative — it is not necessary to prove bona fide intention; showing that the application was made in accordance with law to the proper Court for execution or a step-in-aid is sufficient. The judgment of the High Court relying on this Full Bench ruling was held correct. |
| Sheo Prasad v. Naraini Bai, AIR 1926 All 95 = 90 IC 938 = 48 All 468 | Held that in considering whether an earlier application is effective to save limitation the Court may and should take into account whether the circumstances show the application was made in good faith to secure execution and not merely colourable to obtain a fresh starting point for limitation. | The opinion notes that Sheo Prasad may be supported on its special facts but that some general observations in it were not necessary for decision and could not be supported generally. Sheo Prasad prompted the Full Bench reference (Kayastha). The Board accepted the Full Bench's narrower approach, limiting Sheo Prasad's general observations. |
Court's Reasoning and Analysis
The Board's analysis proceeds stepwise and adheres closely to the statutory text and the relevant precedents cited in the opinion:
- Scope of the appeal and issues actually argued before Their Lordships: Though several objections to the decree's enforceability (e.g., illegality of the mortgage and contravention of para.11(1), Sch.3, Civil P.C.) had been raised in the Indian Courts, counsel for the appellant did not rely on them before the Board. The only point argued to Their Lordships related to the Limitation Act — whether earlier applications of 1925 and 1926 saved the execution application from limitation.
- Factual determination about earlier applications: The opinion recounts the precise procedural history of the two earlier applications (2 June 1925 and 8 July 1926), including notices issued, unserved returns, subsequent service, and eventual striking off for want of prosecution. The Subordinate Judge found no reason to question the bona fides of the decree-holder and held those earlier steps to be steps-in-aid of execution; the High Court affirmed and placed reliance upon the Full Bench decision in Kayastha.
- Statutory framework (Art. 182(5), Limitation Act): The Board noted that Art.182(5) (in its unamended form — the amendment in 1927 not having come into force until 1 January 1928) prescribed three years from the date of "applying in accordance with law to the proper Court for execution or to take some step-in-aid of execution" as the relevant period. Thus, under the unamended article, it was the date of the application that was material.
- Precedential context and Full Bench guidance: The Board examined Sheo Prasad v. Naraini Bai (which allowed consideration of bona fides on its facts) and the subsequent Full Bench decision in Kayastha which directly addressed whether bona fides was a required element under Art.182(5). The Full Bench answered the question in the negative.
- Application of principle to facts: Their Lordships held that in the present case it sufficed that the earlier applications were made in accordance with the Code of Civil Procedure to the proper Court and that they were steps-in-aid of execution made within time. Requiring the Court to be satisfied about the decree-holder's subjective bona fides or intention would import additional words into the statute and force courts into an often impossible inquiry into motive.
- Role of the 1927 Amendment: The Board noted the 1927 amendment changed the relevant moment from the date of application to the final order passed on the application, but that amendment came into force only on 1 January 1928 and so did not affect the first two applications under consideration.
- Conclusion on findings of fact on bona fides: The Board observed it was unnecessary to determine whether the Subordinate Judge's factual finding on bona fides was right, but nonetheless stated that they were not satisfied that that factual decision was wrong.
- Result: Because the earlier applications were properly made and were steps-in-aid of execution within Art.182(5)'s meaning (as held by the Full Bench), the application in 1928 was not barred by limitation and the High Court's affirmation of the Subordinate Judge was correct.
Holding and Implications
Holding: Their Lordships dismissed the appeal and awarded costs to the respondent. The Board concluded that the High Court was correct in holding that the earlier applications (2 June 1925 and 8 July 1926) were applications made in accordance with law to the proper Court for execution or for steps-in-aid of execution and therefore saved the decree from being barred by limitation under Art.182(5) as it then stood.
Implications:
- The direct effect on the parties is that the execution application in question was not time-barred and the decree-holder's earlier procedural steps were treated as sufficient to preserve the decree for execution; the appeal was dismissed with costs.
- The Board applied and followed the Allahabad High Court Full Bench decision in Kayastha Coy. Ltd. v. Sita Ram Dube, agreeing that Art.182(5) (unamended) requires only that an application/step be made in accordance with law to the proper Court to save limitation, not proof of subjective bona fides or intention to execute.
- Because the Board expressly adopted the Full Bench approach and relied on the statutory wording, the decision reinforces the limited scope of Sheo Prasad where its broader observations were held not to be generally supportable; the opinion does not purport to lay down a broader new principle beyond applying the existing Full Bench authority to the facts before the Court.
Disposition: Appeal dismissed.
Sir Lancelot Sanderson:-
This is an appeal from an order and judgment of the High Court of Judicature at Allahabad, dated 24th June 1930, confirming the order of the Subordinate Judge of Etah, dated 22nd April 1929, in the matter of the execution of a final decree for sale dated 29th July 1922 in a mortgage suit. The appellant is the successor of Abdul Jalil Khan, a Zamindar of Aligarh, who died on 4th October 1923. The material facts are as follows: Abdul Jalil Khan in 1909 or 1910 borrowed money from various people, and several decrees were made against him. The decrees were simple money decrees, and the property, which was attached in execution of the decrees, being ancestral property, the execution proceedings were transferred to the Collector in accordance with the provisions of S.68, Civil PC On 29th August 1911, the Collector, as he was entitled to do, granted a lease to Habib-ur-Rahman Khan of the property belonging to the judgment-debtor, Abdul Jalil Khan, for a term of seventeen years.
During the pendency of the said lease, which expired on 1st July 1928, Abdul Jalil Khan on 25th September 1914 executed a mortgage of the said property for Rs. 15,000 in favour of Rao Maharaj Singh. In this appeal Rao Maharaj Singh is represented by the respondent, the Collector of Etah, who is in charge of his estate. On 25th October 1920 the Collector of Etah filed a suit, based on the above-mentioned mortgage, against Abdul Jalil Khan, and obtained a preliminary decree on 9th March 1921, which was made final on 29th July 1922. Both the decrees were made ex parte after due notice had been served upon Abdul Jalil Khan. In the Courts in India it was argued on behalf of the appellant that the mortgage was illegal, that the decree obtained on the basis thereof was not enforceable at law, that the decree was obtained in contravention of the provisions of para.11 (1), Sch.3, Civil P.C., and that it was incapable of execution.
Though these points were taken in the appellant's case, they were not relied on before the Board by the learned counsel for the appellant, and the only arguments presented to the Board were in relation to the other point, which was based upon the Limitation Act. The appellant alleged that the application for execution, in respect of which the above-mentioned order of the Subordinate Judge, dated 22nd April 1929, was made, was barred by the law of limitation inasmuch as certain previous applications dated 2nd June 1925, and 8th July 1926, were not steps in aid of execution so as to save limitation. It was further argued on behalf of the appellant that the said previous applications were not bona fide and were not taken with the intention of executing the said decree, but were merely for the purpose of gaining time, and that consequently the application in question was barred by the law of limitation.
The material facts in relation to this point are as follows: On 2nd June 1925, the Collector of Etah applied for execution of the decree and prayed for sale of the property. The Court ordered necessary copies to be filed. Then the vakil for the decree-holder, as the order-sheet shows, stated on 14th July 1925 that he simply wanted the legal representatives of the deceased judgment-debtor to be brought on the record. Accordingly notices were issued to the proposed representatives, one of whom was Mohammad Khalil-ur-Rahman Khan. On 14th August 1925, it was found that the notices were unserved, and as no further step was taken by the decree-holder, the execution suit was struck off on that date. Then another application was made on 8th July 1926, for sale of the property. The execution was sought against the representatives of the deceased judgment-debtor. This time again there was a report that necessary copies were not filed and it was ordered that notices of the legal representatives being brought on the record be issued and that copies be filed on the next date. On the next date, i.e., 4th August 1926, the notice to Mohammad Khalil-ur-Rahman Khan was returned unserved. The decree-holder took further time and again notice was issued. On 10th September 1926, the notices being served, legal representatives were brought on the record. As the decree-holder took no further steps in the prosecution of the execution suit, the application was struck off on 16th September 1926.
On 30th August 1928, the Collector of Etah made a third application for execution in the Court of the Subordinate Judge; and the appellant, Khalil-ur-Rahman Khan, filed objections under S. 47, Civil P. C. The learned Judge dismissed the objections by the above-mentioned order of 22nd April 1929. The learned Judge in the course of his judgment said that he found no reason to question the bona fides of the decree-holder in the said applications for execution and hold that the object of the decree-holder in this case was not simply to save limitation, but that it was to take steps-in-aid of execution. He decided that the previous applications were steps-in-aid of execution and therefore that they saved limitation. The High Court affirmed this decision, holding that the finding of the learned Subordinate Judge was correct. The learned Judges however further held that in view of the ruling of the Full Bench of that Court in the case of Kayastha Coy. Ltd. v. Sita Ram Dube, AIR 1929 All 625=118 I C 17=52 All 11 (FB), the objections raised by the judgment-debtor could not now be maintained. In the case cited the question, stated briefly, was whether under Art. 182 (5), Lim. Act (9 of 1908) it is sufficient to show that an application was made in accordance with law to the proper Court for execution or to take some steps-in-aid of execution or whether it is further necessary to show that such application had been made with a bona fide intention to execute the decree or to take such step and not merely to keep the decree alive. The actual question submitted to the Full Bench was as follows:
"if a decree-holder makes any application or takes any step mentioned in Col. 3 of Art. 182, Lim. Act, will such step be ineffectual to keep his decree alive and to save limitation, unless he can satisfy the Court that he took such step or instituted such proceedings with a genuine intention of obtaining execution of the decree, if reasonably possible, and that he did not abandon such proceedings except upon a genuine belief that it would not be reasonably possible to obtain execution?"
The Full Bench decided that the answer to the question referred was in the negative. It is not clear, therefore whether the High Court in this case intended to confirm the Subordinate Judge's finding of fact that the decree-holder, in making the previous applications, was acting with bona fides, and was intending to take steps in-aid of execution. It is therefore necessary to consider the point raised by the learned counsel for the appellant, viz., that it is material to consider whether the first two applications were in accordance with law on the assumption that they were not bona fide applications for the purpose of obtaining execution of the decree, but were merely for the purpose of gaining time. Art. 182 (5) prescribes the time for the execution of a decree or order of any civil Court not provided for by Art. 183 or by S. 48, Civil P. C., 1908, viz., three years (where the application next hereinafter mentioned has been made) from the date of applying in accordance with law to the proper Court for execution or to take some step-in-aid of execution of the decree or order. This is the article which was applicable to the first and second applications for execution made on 2nd June 1925, and 8th July 1926, respectively. It should be noted that the terms of this article have been amended by act 9 of 1927, by the provision that in Cl. 5 of the entry in Col. 3, for the word "applying" the words "the final order passed on an application made" shall be substituted. But the, Act did not come into force until 1st January 1928, and therefore the unamended form of Art. 182 (5) is applicable, as already stated, to the first two applications.
In the case of Sheo Prasad v. Naraini Bai, AIR 1926 All 95=90 IC 938=48 All 468, Boys and Banerji, JJ., held that in considering whether an earlier application is effective to save limitation the Court may and should take into consideration whether the whole circumstances show that the application was made in good faith to secure execution or to take a step in aid of execution and was not merely colourable with a view to give a fresh starting point for the period of limitation. It was the decision in that case which gave rise to the reference to the Full Bench in Kayastha Coy., Ltd. v. Sita Ram Dube, AIR 1929 All 625=118 I C 17=52 All 11 (FB) and it was stated in the judgment of the Full Bench that the decision in Sheo Prasad v. Narain Bai, AIR 1926 All 95=90 IC 938=48 All 468 might be supported on the special facts of that case, but that some of the general observations, which were not necessary for the decision, could not be supported. It may be noted that Banerji, J. was a party to the Full Bench decision. The point raised on this appeal is clearly covered by the above-mentioned Full Bench decision in the Allahabad High Court, and the question is whether any ground has been shown for disagreeing with that decision.
In their Lordships' opinion no such ground has been shown, and they agree with the decision arrived at by the Full Bench. In this case all that was necessary for the respondent to show was that the applications of the 2nd June 1925, and the 8th July 1926, were made in accordance with law to the proper Court for execution, or to take some step-in-aid of execution of the decree. The applications were made in accordance with the provisions of the Code of Civil Procedure, and therefore in accordance with the law applicable thereto, they were made to the proper Court; they were obviously steps-in-aid of execution, and they were made within time.
To hold that it was necessary for the Court to be satisfied that the said applications were made bona fide and that the decree-holder had the intention of proceeding to execution in pursuance of each of the said applications would be to import words into the terms of the article which are not to be found therein, and would necessitate the Court embarking upon the difficult and in some cases impossible task of finding the motive of the decree-holder in making the applications. It is to be noted that by the said article, before amendment, the date of the application for execution was the time from which the period of limitation was to run, and it was not until the Amending Act, 1927, was passed that the result of the application, viz., the final order passed on the application, became the material time. It was therefore the application and not the result of the application which was contemplated as being sufficient to save limitation. For these reasons their Lordships are of opinion that the decision of the High Court was correct. In view of the above opinion it is not really necessary, for their
Lordships to embark upon the inquiry as to whether the finding of the Subordinate Judge, that in fact the aforesaid applications were made bona fide by the decree-holder was correct.
As however certain arguments were presented to their Lordships in respect of this point, it is sufficient to say that their Lordships are not satisfied that the decision of the Subordinate Judge in this respect was wrong. For these reasons their Lordships are of opinion that the appeal should be dismissed with costs, and they will humbly advise His Majesty accordingly.
Appeal dismissed.
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