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  • Section 174 of the Bengal Tenancy Act and Order 21, Rule 89 of the new Code
  • Order 21, Rule 89 of the Code of Civil Procedure
  • Section 174 of the Bihar Tenancy Act.
  • Order 21, Rule 89,
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Cites
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Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
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Acts
  • Section 174 of the Bengal Tenancy Act and Order 21, Rule 89 of the new Code
  • Order 21, Rule 89 of the Code of Civil Procedure
  • Section 174 of the Bihar Tenancy Act.
  • Order 21, Rule 89,
Smart Summary

Opinion Summary — Imam, J.

Factual and Procedural Background

The matter concerns an application by the auction-purchaser (the petitioner in revision) challenging an order of the Munsiff, 2nd Court, Monghyr, which had set aside a sale held in execution of a decree for rent. The sale took place on 29 April 1947; the petitioner was an auction-purchaser who was not the decree-holder. On 30 May 1947 the judgment-debtors (opposite parties) filed a petition to be allowed to make the necessary deposits; the deposit was recorded as made on 31 May 1947. The judgment-debtors supported their petition with an affidavit explaining that, because of procedural steps and the Registrar's absence, the deposit could not be completed earlier on 30 May. The Munsiff accepted the petition and treated the deposit as having been made on 30 May 1947.

The petitioner objected in the Munsiff's Court that no formal application to set aside the sale had been made and therefore the sale could not validly be set aside. The Munsiff distinguished an earlier decision cited by the petitioner (Dhari Jena v. Gaurang Charan) on the ground that that decision concerned a deposit made under Order 21, Rule 89 of the Code of Civil Procedure whereas the present application was under Section 174 of the Bihar Tenancy Act. The Munsiff held that the deposit plus compensation money itself served as an application to set aside the sale, and he set aside the sale accordingly.

The present civil revision challenges the Munsiff's order setting aside the sale. The Court below (Munsiff) treated the deposit as timely (on 30 May) despite the chalan actually bearing the date 31 May, and accepted that the judgment-debtors had applied to deposit the money on 30 May. In revision, additional points were raised about whether the deposit was within the 30-day period and whether the requisite 5% compensation was properly deposited and recorded.

Legal Issues Presented

  1. Whether a mere deposit of the decretal dues and compensation (or filing of a chalan) suffices to set aside a sale, or whether an application specifically to set aside the sale must accompany the deposit.
  2. Whether the deposit by the judgment-debtors was made within the statutory 30-day period from the date of sale (i.e., whether the deposit should be treated as made on 30 May 1947 rather than 31 May 1947).
  3. Whether the deposit required under the relevant provision must include, and must be formally recorded for, a sum equal to 5% of the purchase money (compensation), and whether a separate chalan lacking the Munsiff's signature/seal affects the sufficiency of the deposit.
  4. Whether Section 174 of the Bihar Tenancy Act differs in substance from Order 21, Rule 89 of the Code of Civil Procedure for the purpose of setting aside a sale on deposit.

Arguments of the Parties

Petitioner (Auction-purchaser) — Arguments

  • Objected before the learned Munsiff that no formal application to set aside the sale had been made, and therefore the sale could not be set aside.
  • Relied on this Court's decision in Dhari Jena v. Gaurang Charan to support the submission that a mere deposit (or a chalan) without an application is insufficient.
  • Submitted (in this Court, through Mr. C. P. Sinha) that the deposit was made after the 30-day period and therefore time-barred — the last permissible day being 29 May 1947 (which raised the question whether the deposit should be treated as made on 30 May because 29 May was a holiday).
  • Also argued that the deposit must include, and be properly recorded for, a further sum equal to 5% of the purchase money (compensation), and that the chalan for the compensation lacked the Munsiff's signature/seal.

Judgment-debtors / Opposite Parties — Arguments

  • Filed a petition on 30 May 1947 to be allowed to make the necessary deposits and supported it by affidavit explaining why the deposit could not be completed earlier that day (Registrar had left Court after procedure was complete).
  • Actually deposited the decretal amount (chalan) on 31 May 1947 but the Munsiff ordered that the money be accepted and the deposit be regarded as having been made on 30 May 1947.
  • The petition filed with the deposit explained that the decree-holder obtained the decree surreptitiously, requested acceptance of the chalan "so that justice may be done," and the petition (taken as a whole) was treated as seeking that the sale be set aside.

Pleader for the Decree-holder (as noted in the opinion)

  • Conceded before the Munsiff that the deposit would be good if it was found to have been made on 30 May 1947 (because the last day, 29 May 1947, was a holiday and the 30th day was treated as the effective day).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Dhari Jena v. Gaurang Charan Holds that a deposit under Order 21, Rule 89 (by chalan) without any application to set aside a sale is insufficient to set aside the sale. The Court accepted the decision as in point but held that Section 174 of the Bihar Tenancy Act corresponds to Order 21, Rule 89 and that on the facts (where a petition accompanied the deposit, even if not in express words) the Munsiff did not act without jurisdiction in setting aside the sale.
Sarjoo Prasad v. Nannoo Rai (1 Pat L J 459 at p.462) Observation that Section 174 of the Bengal Tenancy Act and Order 21, Rule 89 of the Code impose substantially similar obligations and are not meaningfully different. Used to support the view that Section 174 of the Bihar Tenancy Act corresponds to Order 21, Rule 89 and therefore the same requirement (application to set aside sale accompanying deposit) should apply.
Jyotish Chandra v. Surendra Nath (43 Cal W N 252) Authority where the chalan itself declared the purpose of the deposit and the Court held it had jurisdiction to set aside the sale though no separate application was filed. Relied on to show that a deposit accompanied by an indication of its purpose can suffice as an application to set aside the sale; supported the Munsiff's exercise of jurisdiction here where the petition and chalan indicated the intended relief.
Veettil Seethi v. Ambalath Veettil Kolathur Ahmad (AIR 1917 Mad 225) Cited as authority for the proposition that the absence of an express prayer to set aside the sale need not necessarily invalidate an application. Referenced to support a reasonable interpretation of the petition filed here (that it amounted to a prayer to set aside the sale) and to avoid a technical nullification of the application.
Ranya v. Baliram Cited alongside other cases as authority for not treating the absence of an express prayer to set aside sale as fatal. Used in the same cluster of authorities to support a non-technical construction of the petition in this case.
Benarasi Das v. Ram Chander (AIR 1933 Lah 210) Authority cited in the context of accepting that the absence of an express prayer to set aside a sale need not invalidate the application. Relied upon to justify treating the petition and chalan together as sufficient to constitute an application to set aside the sale.
Ramshivendra Narayan v. Awadh Bihary Referred to in the opinion as not indicating that a restricted or technical view of the rule (requiring a particular form or express words) must be taken. Cited to show that precedent does not compel a narrow construction that would nullify the petition for want of explicit words; court declined to adopt an overly technical approach.

Court's Reasoning and Analysis

The Court proceeded step-by-step through the contested factual and legal points and applied relevant authorities as follows:

  1. Timeliness of deposit: The Court agreed with the Munsiff that, taking account of the procedural events and the fact that 29 May 1947 was a holiday, the deposit ought to be treated as having been made on 30 May 1947 rather than 31 May 1947. The Munsiff had ordered the money to be accepted and the chalan bore evidence that the deposit process had been initiated on 30 May; the pleader for the decree-holder had conceded that the deposit would be good if so treated. The Court therefore held the deposit to be within time.
  2. Requirement of an application to set aside sale: The Court reviewed the law under Order 21, Rule 89 of the Code of Civil Procedure and Section 174 of the Bihar Tenancy Act. It found that the words "may apply to have the sale set aside" in Section 174 correspond to the language of Order 21, Rule 89, and adopted the reasoning of Sarjoo Prasad that there is no essential difference between the two provisions. Accordingly, the settled principle is that a mere deposit without an accompanying application will not suffice to set aside a sale.
  3. Nature and sufficiency of the application filed: The Court examined the petition actually filed by the judgment-debtors (official translation quoted in the opinion). Although the application did not in express words say "set aside the sale," the petition as a whole sought that "justice may be done" and expressly referred to bringing the decretal amount to Court and filing the chalan. The Court reasoned that a reasonable interpretation of the petition must be that it sought setting aside the sale; otherwise the application would have no reasonable meaning. The Court relied on authorities (e.g., Jyotish Chandra) where a chalan stating purpose sufficed and other cases where absence of express prayer did not invalidate the application.
  4. The 5% compensation recording/signature issue: The petitioner raised in revision that the chalan for the compensation (5% of purchase money) lacked the Munsiff's signature and seal. The Court noted that this point had not been raised in the Court below and that the pleader for the decree-holder had conceded the deposit was good if treated as made on 30 May. The Court observed that the signed chalan (which bore the Munsiff's signature and the Court seal) originally indicated the deposit included compensation; subsequently a separate chalan for compensation was filled in, possibly omitted from signing through oversight. On those facts the Court declined to entertain the late submission in revision, and accepted that the entries indicated the intention to deposit compensation.
  5. Jurisdictional conclusion and exercise of discretion: Weighing the petition, the chalan(s), the concession in the lower Court, and the relevant authorities, the Court concluded that the Munsiff did not act without jurisdiction nor commit material irregularity in setting aside the sale. The Court emphasized giving a reasonable and practical construction to the petition and avoiding an overly technical approach where the rule or section does not prescribe a particular form of application.

Holding and Implications

APPLICATION DISMISSED. The Court dismissed the petition in civil revision (i.e., the auction-purchaser's application) with costs. The costs awarded included the hearing fee of one gold mohur.

Implications:

  • Direct effect on the parties: The Munsiff's order setting aside the sale is upheld — the attack on that order by the auction-purchaser is dismissed, with costs awarded against the petitioner.
  • Legal principle reinforced: The Court reiterated that, in accordance with Order 21, Rule 89 and Section 174 of the Tenancy Act, an application to set aside a sale must accompany the deposit; however, the Court also held that a reasonable interpretation of the petition and the circumstances may suffice where an express prayer to set aside is absent and where the chalan or petition demonstrates the intended purpose.
  • No technical/formalistic requirement imposed: The Court refused to adopt a narrowly technical approach requiring a specific form or express words when the section or rule does not prescribe such formality, relying on authority to construe applications reasonably.

Note: This summary is limited strictly to matters recorded in the provided opinion and does not add or infer facts or holdings beyond the text.

    Dr. Parmanand Verma v. Satnarain Prasad And Anr.

    Imam, J.

    1. This is an application by the auction purchaser against the order of the Munsiff, 2nd Court, Monghyr, who set aside a sale as the full decretal dues with compensation had been deposited. The sale was held on the 29th April 1947 in execution of a decree for rent and at that sale the petitioner was an auction-purchaser not being the decree-holder. On the 30th May 1947 the opposite party judgment-debtors filed a petition to be allowed to make the necessary deposits. The deposit was actually made on the 31st May 1947. The judgment-debtors had filed a petition supported by an affidavit that the deposit could not be made on the 30th May 1947, as it had already become late after undergoing the procedure of deposit and by the time it was complete, the Registrar had already left the Court. The Munsiff having believed the petition of the judgment-debtors was of the opinion that the deposit made would be considered to have been made on the 30th May 1947, as he had ordered that the money sought to be deposited be accepted.

    2. The petitioner, however, had taken an objection before the learned Munsiff to the effect that no formal application for setting aside the sale had been made and hence the sale could not be set aside. Reliance was placed on a decision of this Court in 'Dhari Jena v. Gaurang Charan', The learned Munsiff was of the opinion that the case cited was not applicable as the deposit in that case was one under Order 21, Rule 89, whereas the present application had been made under Section 174 of the Bihar Tenancy Act. He, therefore, thought that no formal application to set aside the sale was

    "necessary and the deposit of the purchase money with compensation itself for an application for setting aside the sale."

    3. Mr. C. P. Sinha had urged that the deposit was made beyond 30 days of the sale, therefore, the application was time-barred. The last day for deposit was the 29th May 1947. 29th of May 1947, however, was a holiday and it was conceded by the pleader for the decree-holder in the Court below that the deposit was good if it be found that it was made on the 30th May 1947, because the 30th day after the sale was a holiday. It appears that on the 30th May 1947, the judgment-debtors had applied to the executing Court to deposit the money and the Munsiff had ordered that it be accepted as would be evident from the chalan. In the circumstances as I have already stated he thought that the deposit must be regarded as having been made on the 30th May 1947, and not the 31st May 1947. I am in agreement with the Munsiff that so far as the deposit is concerned, having regard to the facts, that it must be treated as having been made on the 30th May 1947 and therefore within time. Mr. Sinha, however, had raised a further question in this Court, which apparently had not been raised in the Court below, to the effect that the deposit to be made must not only be the amount recoverable under the decree with costs, but there should be a further deposit of a sum equal to 5 per cent of the purchase money. While the chalan showing the deposit of the amount recovarable under the decree bears the signature of the Munsiff as well as the seal of the Court, there appears to be no signature of the Munsiff or the seal of the Court on the chalan with reference to the compensation money, that is to say, 5 per centum of the purchase money. I am not too sure whether in Civil Revision, for the first time, this submission on behalf of the petitioner can be entertained as the point ought to have been raised before the Munsiff where the facts could have been ascertained. It is, however, significant that in the chalan which bears the signature of the Munsiff and the seal of the Court, in one of the columns, it was originally stated that the chalan was for the amount recoverable under the decree as well as compensation. The word "compensation' then appears to have been cut out and another chalan for the compensation money was filled in. It is just possible that when the signature of the Munsiff was being obtained on the first chalan, the other chalan, through oversight, was not singed by the Munsiff. The entry in the first chalan, which was signed by the Munsiff, that the money to be deposited included compensation is a sufficient indication to mean that the judgment-debtors had at first thought that the amount recoverable under the decree as well as the comsation money could be deposited by means of a single chalan. As the question was not raised in the Court below and it had been conceded by the pleader for the decree-holder that the deposit was good, if it was to be treated as having been made on the 30th May 1947, the submission of Mr. Sinha now made ought not to be entertained.

    4. I think it may now be regarded as well settled, under Order 21, Rule 89, that a mere deposit of the decretal dues and compensation money would not be sufficient to set aside the sale unless it was accompanied by an application to set aside the sale. The decision of this Court in Dhari Jena… v. Gauranga Charan Sahu…Opposite Party.', , is in point. The learned Munsiff, however, thought that there was a distinction to be made as the application of the judgment-debtors was under Section 174 of the Bihar Tenancy Act. This section states:

    "Where a tenure or holding or portion of a holding is sold for an arrear of rent due in respect of the tenure or holding then, at any time within thirty days from the date of sale, the judgment-debtor or any person whose interests are affected by the sale, other than a transferee of a holding from whom the landlord is entitled to receive the landlord's registration fee and who has neither paid the landlord's registration fee to the landlord nor deposited the same with the Collector, 'may apply to have the sale set aside', on his depositing in Court for payment to the decree-holder, the amount recoverable under the decree with costs, and, for payment to the purchaser, a sum equal to five per centum of the purchase money."

    The words "may apply to have the sale set aside" in this section correspond to the words used in Order 21, Rule 89 of the Code of Civil Procedure and I think that no real distinction can be made as was held by the Munsiff. In this connection I would refer to the following observations of Atkin-son and Jwala Prasad, JJ., in the case of 'Sarjoo Prasad v. Nannoo Rai', 1 Pat L J 459 at p. 462.

    "But when we compare the two sections, Section 174 of the Bengal Tenancy Act and Order 21, Rule 89 of the new Code it requires a very subtle mind to distinguish any essential difference between the obligations imposed by both these sections. To my mind it is merely trifling with words to suggest as has been suggested, that there is any material difference between the two sections."

    In the case before me when the deposit was made 3t was accompanied by an application and the following is the official translation of that petition:

    "It is submitted that the decree-holder has obtained the decree surreptitiously. This petitioner has no knowledge whatever about it. All of a sudden yesterday the petitioner has learnt that the sale was to be confirmed today. Therefore this petition is filed and it is prayed that the entire decretal amount has been brought to Court. I herewith file the chalan along with this petition. The chalan may be passed in the name of Maulvi Mohammad Yusuf Vakil II and order may be passed to accept this amount today so that justice may be done."
    It is true that the application does not state in so many words that the sale be set aside. The petition as a whole has to be considered ana the prayer that justice may be done on the deposit being made amounts, in my opinion, to a prayer that the sale be set aside; otherwise there would be no reasonable meaning to such an application. While the Courts must insist, having regard to the authorities, that an application to set aside the sale must accompany the deposit and that a mere deposit without such an application would not entitle a Court to set aside the sale, I think that a reasonable interpretation must be given to such an application as was filed in this case. In this connection I would refer to the decision of Nasim Ali, J., in the case of 'Jyotish Chandra v. Surendra Nath', 43 Cal W N 252, where in the chalan itself the purpose of the deposit had been stated but no application for setting aside the sale had been filed. It was held by him that the Court had jurisdiction to set aside the sale. In my opinion, it cannot be said that the learned Munsiff acted with-out jurisdiction or with material irregularity in the exercise of his jurisdiction in setting aside the sale.

    5. The application must accordingly be dismissed with costs. Hearing fee one gold mohur.

    6. I agree, and would like to add that in some decisions it has been observed that the application may be oral or written. There are decisions which have even gone to the extent of saying that the filing of a chalan with permission to deposit in Court the decree amount and a sum equal to 5 per cent, of the purchase money should by itself be treated as an application to set aside the sale, it is, however, not necessary to go to that extent in the present case, as it may be argued that the decision of this Court in 'Dhari Jena v. Gouranga Charan', , is against that view; in that case the deposit was made by a chalan and was not accompanied by any application whatever. As my learned brother has point ed out, on a proper construction of the application. filed in this case, it must be held that the applicant wanted the Court to set aside the sale, though no express prayer to set aside the sale was made. I do not think the absence of an express prayer to set aside the sale need necessarily invalidate the application (See 'Veettil Seethi v. Ambalath Veettil Kolathur Ahmad', AIR 1917 Mad 225; 'Ranya v. Baliram', , and 'Benarasi Das v. Ram Chander', AIR 1933 Lah 210). Unless I am forced to take such a technical view by the terms of the rule or section, I shall be most re luctant to do so, and the rule or section does not say that the application must be in a particular form or contain a prayer in express words to set aside the sale. The decision in 'Ramshivendra Narayan v. Awadh Bihary', does not indicate that such a restricted view of the rule must be taken.

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    Comments

    Dr. Parmanand Verma v. Satnarain Prasad And Anr.
    (May 3, 1948)