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  • S. 61, Court of Wards Act,
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  • S. 61, Court of Wards Act,
Smart Summary

Structured Summary of the Legal Opinion

Factual and Procedural Background

The appellant is the proprietor of the Beswan estate at Aligarh. In 1923 respondent no. 3, Mahabir Singh (the "plaintiff"), sued in forma pauperis claiming the estate and seeking to eject the appellant's elder brother, who was then in possession. The elder brother died while the suit was pending and the appellant, then a minor, was substituted as defendant with the Court of Wards acting on his behalf.

The trial Court decreed for the plaintiff on 2 June 1925. While the case proceeded on appeal, on 16 February 1926 the High Court ordered that the plaintiff be put in possession of the estate in execution of the trial Court's decree on his depositing security of Rs. 42,000 in the trial Court. On 1 April 1926 Jiwan Singh (father of respondent 1, Har Prasad Singh) executed a security bond hypothecating zemindari property; the bond did not name a specific beneficiary and provided that, if the decree were amended or set aside, the plaintiff should reconvey the property and pay such mesne profits as might be ordered by the appellate Court, with recovery by sale of the hypothecated property if necessary, and a personal liability of the executant only for any deficiency up to the security sum.

The plaintiff was put in possession of the Beswan estate in July 1926 (as stated in the opinion), and after the trial Court's decision was reversed, possession was returned in 1939 to the Collector and to the Court of Wards for the appellant. Jiwan Singh died in 1928. In April 1930 the Collector settled with respondent 2 (Mt. Maharani Kuer, the plaintiff's guardian) the sum due for mesne profits while the plaintiff had been in possession; it was fixed at Rs. 24,722 and paid, with a receipt dated 23 April 1930 which was registered.

In 1933 the Court of Wards released the estate to the appellant (who had attained majority) and obtained from him a safinama dated 10 March 1933 discharging them from obligations. In April 1933 the appellant filed an application in the trial Court (Subordinate Judge at Aligarh) under Orders and Rules and headed "Application under Ss. 145, 151, Civil PC" with a 21‑paragraph statement of facts. The application primarily sought restitution (mesne profits and damages) for the plaintiff's possession of the estate during the period 1926–1929, relying on the bond of 1 April 1926, and sought enforcement against respondent 1 as heir and representative of Jiwan Singh. The application also contained an alleged claim of mismanagement against Jiwan Singh and Har Prasad Singh, but that head was later accepted as misconceived and was not pursued before the Board.

The learned Subordinate Judge dismissed the application as incompetent on 28 February 1936. The High Court upheld that dismissal by its decree of 2 December 1936. The Board (Privy Council) heard the appeal from that decision.

Legal Issues Presented

  1. Whether the appellant's claim for mesne profits and damages founded on the security bond of 1 April 1926 was maintainable under Section 145 of the Civil Procedure Code (i.e., whether S.145 applies to the circumstances of this bond and the liability claimed).
  2. Whether the relief sought (restitution/assessment of mesne profits and enforcement of the security) was properly the subject of an application to the trial Court under Section 144 of the Code (and the Court's inherent powers) rather than a separate suit.
  3. Whether an instrument (bond) that does not bind the surety to any specified individual can be enforced by the method described in the Privy Council decision in Bafthubar Singh v. Jai Indra Bahadur Singh.
  4. Whether the settlement with the Collector (payment of Rs. 24,722) affects the appellant's right to restitution and must be taken into account in assessing any sum due.
  5. Whether Section 61 of the Court of Wards Act has any bearing on the dispute between the appellant and respondent 1.

Arguments of the Parties

Appellant's Arguments

  • The appellant framed the relief as an application under Ss. 145 and 151, Civil PC, seeking assessment of mesne profits and damages for the plaintiff's possession during 1926–1929 and enforcement of the security bond against the surety (respondent 1 as heir of Jiwan Singh).
  • The appellant alleged that the Collector's settlement of April 1930 (Rs. 24,722) was obtained by fraud and therefore should not be treated as binding against his claim for restitution.
  • The appellant originally included a distinct claim of damages for alleged mismanagement by Jiwan Singh and Har Prasad Singh between 1926 and 1929, though that head of claim was ultimately not persisted in before the Board as part of these proceedings.
  • The appellant restricted himself in his application (as later emphasized by the Board) so as not to seek enforcement against the plaintiff Mahabir Singh or his guardian Mt. Maharani Kuer, even though they are necessary parties to any assessment of mesne profits and damages.

Respondents' Arguments

  • Respondent 1 (Har Prasad Singh) raised the Collector's April 1930 settlement (and other matters) by way of objection to the application, contending that the settlement discharged or affected the sums claimed.
  • The respondents and the courts below maintained that the appellant's case was not within Section 145 of the Code and that the matter could only properly be pursued by way of a suit.
  • Counsel for the respondents properly admitted that Section 61 of the Court of Wards Act had no bearing on the question between the appellant and respondent 1.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Bafthubar Singh v. Jai Indra Bahadur Singh; cited as ('19) 6 AIR 1919 PC 55 : 55 IC 550 : 42 All 168 : 46 IA 228 : 22 OC 212 (PC) The principle that an instrument which does not bind the surety to any individual can be enforced only by the Court making an order in the suit — on an application to which the sureties are parties — that the property charged be sold unless the sureties find the money by a named day. (i.e., enforcement of a charge created by a bond not expressed in favour of a specific individual must be effected by the Court in the suit itself.) The Board applied the procedure and principle of this decision: it held that the appellant's claim should be pursued in the trial Court (in the ejectment suit) so that the sum due by way of restitution could be ascertained under S.144 and, if necessary, the charge created by the bond of 1 April 1926 enforced in the manner described in this Privy Council judgment.

Court's Reasoning and Analysis

The Board conducted a stepwise legal analysis, grounded in the language of the Code and the terms of the security bond:

  1. Nature of S.145: The Board accepted the view of the courts below that Section 145 applies only to the personal liability of a surety. Because the appellant's primary claim was essentially for restitution (assessment of mesne profits and damages arising from the plaintiff's possession) rather than enforcing a personal liability beyond the bond's specific terms, the matter did not properly fall within S.145.
  2. Appropriate Procedural Vehicle — S.144 and Inherent Powers: The Board held that the appellant's claim could not be maintained by a separate suit; instead, the correct course was an application to the trial Court under Section 144 of the Code to assess the sum due by way of restitution (mesne profits and damages) and to enforce the security, exercising the Court's inherent powers if necessary (S.151 supports inherent powers, but the claim substantively arose under S.144).
  3. Relevance of the Privy Council Precedent (Bafthubar Singh): The Board observed that the earlier Privy Council decision had not been cited in the courts below but was directly applicable. That decision establishes the method for enforcing a bond which does not bind the surety to any specified individual — enforcement must be ordered by the Court in the suit on application in which the sureties are parties.
  4. Necessity and Proper Parties: While respondent 1 (the surety's heir) may not be strictly necessary to the mere assessment of mesne profits, he is a proper party to proceedings to enforce the bond. The plaintiff and his guardian (who are impecunious and against whom the appellant disavowed enforcement) are necessary for an assessment of mesne profits and damages. Under sub‑section (2) of S.144 the assessment must be made in the suit and not by a separate action.
  5. Accounting for Prior Payments and Limits on Liability: The Board emphasized that the bond imposes a maximum recoverable amount of Rs. 42,000 and that any sum already paid (the Rs. 24,722 paid pursuant to the Collector's settlement of April 1930) must be taken into account in determining any deficiency. It was open for respondent 1 to claim credit for that payment if he proved it was paid by him or his father's estate.
  6. Scope of Inquiry and Exclusion of Separate Tort Claims: The Board made clear that proceedings remitted to the Subordinate Judge are confined strictly to the assessment of sums due by way of restitution and to enforcement of the charge under the bond; the separate claim for damages for mismanagement was misconceived in this procedural context and is not to be entertained here except insofar as it falls within the restitution inquiry.
  7. Procedure on Remittal: The Board directed that the case be remitted to the Subordinate Judge to assess mesne profits and damages for the period 1926–1929, to determine whether the Collector's settlement binds the appellant (the opinion uses the phrase "settlement made with the Collector in April 1980" in one passage and elsewhere refers to April 1930; in any event the sum of Rs. 24,722 is to be taken into account), and thereafter, if a deficiency remains, to commence enforcement proceedings in the manner described in the cited Privy Council decision.

Holding and Implications

Final Disposition: The Board allowed the appeal.

The Board advised His Majesty to set aside the decrees of the courts in India (the Subordinate Judge's dismissal and the High Court's affirmance) and remitted the case to the Court of the Subordinate Judge of Aligarh for disposal in accordance with its directions.

Practical consequences and limitations imposed by the Court's decision:

  • The Subordinate Judge is to assess the mesne profits and damages due from the plaintiff Mahabir Singh for the period 1926–1929 and to determine whether the Collector's settlement (the opinion records a payment of Rs. 24,722) binds the appellant; that prior payment will be taken into account in the assessment.
  • If, after assessment, a sum remains owing by way of restitution, the learned Subordinate Judge may, if necessary, initiate proceedings to enforce the charge created by the bond of 1 April 1926 in the manner described in the Privy Council decision in Bafthubar Singh v. Jai Indra Bahadur Singh.
  • The enforcement proceedings are confined strictly to sums due by way of restitution; claims for damages arising from alleged wrongful acts of Jiwan Singh or Har Prasad Singh are not to be entertained in these proceedings except insofar as they fall within the restitution inquiry.
  • The liability of respondent 1 is limited to that created by the bond and cannot exceed Rs. 42,000. Any credit for the Rs. 24,722 already paid may be claimed by respondent 1 if he proves that that amount was paid by him or by his father's estate.
  • The appellant is bound by his own application insofar as he stated he would not seek to enforce his claim against the plaintiff Mahabir Singh or his aunt Mt. Maharani Kuer; nevertheless those persons remain necessary parties for the assessment of mesne profits and damages and must be involved in the remitted proceedings.
  • Costs: Each party is to pay its own costs of the appeal and of the proceedings which have so far taken place in the Indian courts. Any costs already paid under orders of the Indian courts are to be repaid.

The opinion directs a specific procedural course based on existing statutory provisions and the cited Privy Council precedent; it does not purport to lay down a new general legal doctrine beyond applying those authorities to the facts before the Court.

    Kunwar Rohani Ramandhwaj Prasad Singh v. Thakur Har Prasad Singh And Others

    Sir George Rankin.:-

    The appellant is the proprietor of an estate called the Beswan estate at Aligarh. In 1923 respondent 3 Mahabir Singh, herein called "the plaintiff" brought a suit in forma pauperis claiming the estate and seeking to eject the appellant's elder brother who was then in possession. The elder brother died while the suit was pending and the appellant who was a minor at the time was substituted in his stead as the defendant and the Court of Wards acted on his behalf. The trial Court gave decree for the plaintiff on 2nd June 1925, but on 12th February 1929, the High Court at Allahabad reversed this decision and dismissed the suit. Their decree was confirmed upon appeal to His Majesty in Council. On 16th February 1926, while the case was pending before it the High Court ordered that the plaintiff should be put in possession of the estate in execution of the trial Court's decree on his depositing in the trial Court security in the sum of Rs. 42,000. On 1st April 1926, one Jiwan Singh, father of respondent 1, Har Prasad Singh, executed a security bond which is the foundation of the present proceedings. This bond was not expressed to be in favour of any specified individual nor was any person other than Jiwan Singh mentioned as a party thereto, but by it Jiwan Singh hypothecated a number of items of zemindari property and the terms of the security were as follows :

    If the decree passed by the Court of first instance is amended or set aside by the appellate Court, the plaintiff-respondent shall re-convey the property, whereof he shall obtain possession under the security bond in the same condition as it is at present and shall pay, according to the orders of the appellate Court, such amount of mesne profits in respect of the property in dispute as may be found due by the plaintiff decree-holder when the possession of the property is delivered. If the plaintiff fails to comply with the orders of the appellate Court, the amount may be recovered by auction sale of the property hypothecated under this deed which is specified below. If the sale proceeds be inadequate, my person and other property shall remain liable to the extent of the amount of security and I, the executant, in person and my heirs and representatives shall remain liable for payment of the same.

    On these clauses it may be convenient to observe that the only personal liability assumed by Jiwan Singh arises in the event of the charge failing to yield a sum of Rs. 42,000 and is in respect of any such deficiency. Also that while the mesne profits for which the security is given must be payable in respect of the appellate Court's decree, their Lordships do not construe the bond as meaning that they must be assessed by the appellate Court itself - a procedure which would be contrary to the usual practice and to the course laid down by the Code. When a decree is varied or reversed in circumstances giving rise to a right by way of restitution, the right arises automatically and is claimable under S. 144 of the Code before the trial Court. In accordance with the usual practice the appellate Court's decree made no mention of mesne profits by way of restitution though it is the origin and source of the right.

    The plaintiff was pat in possession of the Beswan estate in July 1936, and after the trial Court's decision had been reversed possession was in 1939 returned to the Collector and to the Court of Wards for the appellant. Meantime Jiwan Singh had died in 1928. In April 1930, the Collector settled with respondent 2 Mt. Maharani Kuer, the plaintiff's aunt, as the plaintiff's guardian, the sum due for mesne profits while the plaintiff had been in possession. It was fixed at Rs. 24,722 and paid without any order having to be obtained from the Court. A receipt therefor dated 23rd April 1930, was granted by the Collector and was registered in due course. In 1933, the Court of Wards released the estate to the appellant who had attained majority and obtained from him a safinama dated 10th March 1933, discharging them from all obligations to or claims by him. In April 1933, the appellant filed in the trial Court-the Court of the Subordinate Judge at Aligarh-the application which is now before their Lordships. It is "in a tabular form" under O. 31, R. 11, with the addition of a statement of facts in 21 paragraphs. It is headed "Application under Ss. 145, 151, Civil PC," which are as follows :

    145. Where any person has become liable as surety-

    (a) for the performance of any decree or any part thereof, or

    (b) for the restitution of any property taken in execution of a decree, or

    (c) for the payment of any money, or for the fulfilment of any condition imposed on any parson, under an order of the Court in any suit or in any proceeding consequent thereon, the decree or order may be executed against him, to the extent to which he has rendered himself personally liable in the manner herein provided for the execution of decrees and such person shall, for the purposes of appeal, be deemed a party within the meaning of S. 47 :

    Provided that such notice as the Court in each case thinks sufficient has been given to the surety.

    151. Nothing in this Code shall be deemed to limit or otherwise affect the inherent power of the Court to make such orders as may be necessary for the ends of justice or to prevent abuse of the process of the Court.

    The application asked relief against respondent 1 Har Prasad Singh only, stating that the other two respondents, Mt. Maharani Kuer and Mahabir Singh had been formally impleaded. The main claim is made against respondent 1 as heir and sole legal representative of his father Jiwan Singh. It is a claim, based upon the security bond of 1st April 1926, for mesne profits and damages due from the plaintiff in respect of the period of the plaintiff's possession of the estate from 1926 1929. This in the mouth of the successful defendant was a claim for restitution as against the plaintiff and for enforcement as against the surety of the security given therefor. No mention was made in the application of the settlement of April 1930, or the sum of Rs. 24,722 paid thereunder. To this claim was, however, added another claim of a wholly different character arising out of an allegation that Jiwan Singh and Har Prasad Singh had themselves committed acts of mismanagement of the property between 1926 and 1929. For this an action for damages might lie, but such a claim had no place in an application for restitution or for execution. It was wholly misconceived and was not persisted in before the Board as a claim which could be enforced in these proceedings. When this head of claim is eliminated and the claim upon the security bond is considered by itself, the figure of Rs. 72,240 at which the mesne profits and damages were at first put in the application-it was later increased to Rs. 1,23,448-can be seen at once to be excessive. No more than Rs. 42,000 could be recovered upon the bond whether out of the property charged or otherwise-apart altogether from 'the fact that a sum of Rs. 24,722 was paid in 1930. Respondent 1 having set up the settlement of 1930 and various other matters by way of objection to the application, it was stated in reply by the present appellant that the settlement had been obtained from the Collector by fraud. Shortly put, what has happened is that the learned Subordinate Judge on 28th February 1936, dismissed the application as incompetent, and has in this been upheld by the High Court whose decree of 2nd December 1936, is now before their Lordships on appeal. The reasons given by both Courts are to the effect that the case made by the appellant is not within S.145 of the Code and can only be made in a suit. Upon examination of the matter it appears to their Lordships that the Courts in India were right in holding that the case is not within S.145 if only because the section applies only to the personal liability of the surety. But the appellant's claim is nevertheless one which cannot be made by a suit but can only be made by application to the trial Court under S. 144 of the Code, and under its inherent powers to enforce the security. The decision of the Board in 1. ('19) 6 AIR 1919 PC 55 : 55 IC 550 : 42 All 168 : 46 IA 228 : 22 OC 212 (PC), Bafthubar Singh v. Jai Indra Bahadur Singh was not cited in either of the Courts in India. It was there held that an instrument which does not bind the surety to any individual can only be enforced by the Court making an order in the suit upon an application to which the sureties are parties, that the property charged be gold unless before a day named the sureties find the money.

    The application now before the Board though it was headed by a reference to Ss. 145 and 151 really invoked the powers of the learned Subordinate Judge to assess the sum due by way of restitution under S. 144 and to enforce the security by the method laid down in ('19) 6 AIR 1919 PC 55 : 55 IC 550 : 42 All 168 : 46 IA 228 : 22 OC 212 (PC), Bafthubar Singh v. Jai Indra Bahadur Singh.1It may be that respondent 1 was not a necessary party to the assessment of mesne profits and damages under S. 144 but he was a very proper party-all the more bo as the plaintiff and his guardian were impecunious persons from whom the appellant did not attempt to extract anything. But this aspect of the appellant's claim was necessarily a matter for the trial Court and under sub-s. (2) of S. 144 could not be made by separate suit, just as the application to enforce the security could not be made by another suit but had to be made in the plaintiff's ejectment suit. It was suggested that the appellant would have to show that the settlement of 1980 did not bind him and therefore he was obliged to proceed by suit; but there is no substance in that contention. Again S. 61, Court of Wards Act, has no bearing upon the question between the appellant and respondent 1 as is very properly admitted by learned counsel for the respondents. There is no reason why the appellant's case, brought before the only tribunal competent to deal with either part of it, should not be tried.

    For this purpose the case must go back to the Court of the Subordinate Judge in order that he may in the presence of respondent 1 assess the amount of mesne profits and damages due from the plaintiff Mahabir Singh in respect of the period of his possession of the estate (1926-1929). For this purpose it will be necessary to decide whether the settlement made with the Collector in April 1980 is binding upon the appellant and in any event the sum paid thereunder, Rs. 24,722, will be taken into account. When it has been ascertained whether the plaintiff still owes any and what sum for mesne profits and damages by way of restitution under S. 144, the learned Subordinate Judge will be in a position to begin proceedings, if necessary, to enforce the charge created by the bond of 1st April 1926 in the manner described by the Board's judgment in ('19) 6 AIR 1919 PC 55 : 55 IC 550 : 42 All 168 : 46 IA 228 : 22 OC 212 (PC), Bafthubar Singh v. Jai Indra Bahadur Singh. But these proceedings are to be confined strictly to the assessment of the sum for which the plaintiff is liable by way of restitution, and no claims against respondent 1 or the estate of Jiwan Singh for damages for wrongful acts done by them or either of them are to be entertained except in so far as they come within the scope of that inquiry. The liability of respondent 1 is solely that created by the bond of 1st April 1926 and can in no event exceed Rs. 42,000. Even if the sum due from but not paid by the plaintiff amounts to or exceeds Rs. 42,000 it may be that respondent 1 can claim credit for the sum already paid, Rs. 24,722, by proving that it was paid by him or by his father's estate. The appellant will be held to the statement in his application which prevents him from seeking to enforce his claim against the plaintiff Mahabir Singh or his aunt Mt. Maharani Kuer, though these persons are necessary parties to the assessment of meane profits and damages. The learned Subordinate Judge will have full power to require the appellant to amend his application so as to accord with what their Lordships have now indicated as the proper procedure. Their Lordships will humbly advise His Majesty that this appeal should be allowed, the decrees of the Courts in India set aside and the case remitted to the Court of the Subordinate Judge of Aligarh for disposal in accordance with the judgment. Each party will pay its own costs of this appeal, and of the proceedings which have hitherto taken place in the Courts in India. If any costs have been already paid under orders of the Courts in India they are to be repaid.

    Appeal allowed.

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    Kunwar Rohani Ramandhwaj Prasad Singh v. Thakur Har Prasad Singh And Others
    (Jun 24, 1943)