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Sadhu Prasad Sah v. Satnarain Sah

Patna High Court
Oct 26, 1938
Smart Summary (Beta)

Structured Summary of the Opinion (Rowland, J.; concurrence by Chatterji, J.)

Factual and Procedural Background

The plaintiff (appellant) in a suit under Order 21, Rule 63 brought this appeal after the Subordinate Judge allowed a claim by defendant 1 (Sitaram Sahu) against the plaintiff's attempt to execute a decree against defendant 2 (Mr. H.L. Russel). The plaintiff sought to execute a decree by selling a sixteen- annas proprietary interest in Mauza Hasanpur (Mahal Hasanpur, tauzi No. 2130), alleging that the property belonged to his judgment-debtor (Mr. Russel). Defendant 1 presented a claim asserting that he purchased the property from defendant 2 by a sale deed dated 6 September 1926. The plaintiff contended the sale deed was a farzi (sham/fraudulent) transaction and that the beneficial ownership remained with Mr. Russel, and further contended that the property had been attached before judgment in the earlier mortgage suit (1924) in which the decree had been obtained. The Subordinate Judge decided two substantial issues against the plaintiff: (1) whether there had been an attachment before judgment of Mauza Hasanpur in the 1924 mortgage suit, and (2) whether the sale deed to defendant 1 was fraudulent and without consideration. Dissatisfied, the plaintiff appealed.

Legal Issues Presented

  1. Whether there was any valid attachment before judgment of Mauza Hasanpur (the sixteen annas proprietary interest) in the plaintiff's 1924 mortgage suit.
  2. Whether the sale deed executed by Mr. Russel in favour of defendant 1 (Sitaram Sahu) was fraudulent, colourable and without consideration (i.e., whether title passed or the deed was a sham).

Arguments of the Parties

Plaintiff / Appellant (and counsel Mr. De)

  • The plaintiff asserted that the application for attachment before judgment (Ex. 2) annexed a list of properties including item No. 25: Mauza Hasanpur, and that the court order directed attachment of the properties specified in that application.
  • Mr. De for the appellant argued that the general court order was to attach the properties in the application and that writs of attachment were issued pursuant to that order; any omission of Hasanpur from the printed list annexed to the writ(s) could be an oversight and should not negate attachment.
  • The plaintiff maintained that the sale deed was a farzi transaction and no title passed, and that beneficial ownership remained with Mr. Russel.

Defendants / Respondents

  • Defendant 1 (Sitaram Sahu) claimed to have bought the property from Mr. Russel by deed of sale dated 6 September 1926 (the claim allowed by the Subordinate Judge).
  • Evidence supporting defendant 1 included: parts of the consideration paid to satisfy an execution creditor (recitals and Exs. A, B and C showing receipt of decretal moneys), oral evidence of cash payment for the balance of the consideration, rent receipts and counterfoils showing possession, mutation of name in Register D, and certified copies of books in rent suits.
  • The respondents relied on the absence of the specific mention of Mauza Hasanpur in the writs served (Exs. 1 and 3) to show that attachment of Hasanpur was not effected.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
55 Cal 5451 Support for the proposition that an attachment before judgment of immovable property issued in the form prescribed in Appendix F, Form 5 (which primarily contemplates movable property), does not constitute an effective attachment within the meaning of Order 21, Rule 54 of the CPC. The court relied on this decision to justify that an attachment before judgment, even if issued in Appendix F Form 5, is ineffective as to immovable property unless the procedure of Order 21, Rule 54 is complied with; this supported dismissal of the appellant's contention regarding attachment.

Court's Reasoning and Analysis

The court's analysis proceeded in two main strands corresponding to the two substantial issues.

  1. Attachment before judgment (whether Mauza Hasanpur was attached):
    • The court examined the actual writs of attachment (Exs. 1 and 3) and the returns of service rather than the application for attachment. Although Mauza Hasanpur was listed in the application (Ex. 2) as item No. 25, neither writ specifically mentioned Mauza Hasanpur.
    • Ex. 3 (served through the Civil Court nazarat by a civil court peon) did not include Hasanpur in the list of properties annexed to that particular writ; the return of service described villages where service occurred and made no reference to Hasanpur. The court concluded that, insofar as Ex. 3 is concerned, attachment of Hasanpur was not effected.
    • Ex. 1 (sent to the Sub-divisional Officer, Gopalganj) described the property as the entire sixteen annas proprietary interest in "Mauza Sadhaua, Mahal Hasanpur, Kothia Rampur" and contained descriptive phrases. The court analysed the description: the mahal comprised four villages (Sadhaua, Hasanpur, Bampur and Kutlupur), with Kutlupur already out of Mr. Russel's ownership. The phrasing indicated that the words "Mahal Hasanpur" followed "Sadhaua" as descriptive, not as a separate reference to Mauza Hasanpur, and thus Mauza Hasanpur was not mentioned in the writs.
    • The court emphasised it could not look behind the writs to ascertain the plaintiff's intention; attachment must be determined from the writs themselves. On that basis the Subordinate Judge was right to conclude that Mauza Hasanpur was not attached by the writs, and therefore the writs imposed nothing prohibiting Mr. Russel from transferring Hasanpur.
    • Chatterji, J. added that even if Ex. 1 were read to include Hasanpur, the mode of attachment required by Order 21, Rule 54 (prohibitory order, proclamation by beat of drum and affixture on the property and courthouse, and filing at Collector's office where appropriate) had not been complied with. He quoted Order 38, Rule 7 and Order 21, Rule 54 and concluded that there was no valid attachment absent compliance with Order 21, Rule 54.
    • The court addressed the form issue: Appendix F Form 5 (used for conditional attachment under Order 38, Rule 5) is the form in which the order under that rule is to be served, but where immovable property is concerned the actual attachment must be effected in the manner prescribed by Order 21, Rule 54 and the proper form is Appendix E, Form 24. The court cited the decision in 55 Cal 5451 to support that an attachment issued in Appendix F Form 5 is not effective as an attachment under Order 21, Rule 54 for immovable property.
  2. Alleged sham/fraudulent sale deed (whether title passed to defendant 1):
    • The court recognised that Mr. Russel had pressing creditors and a possible motive to transfer property out of their reach, but reiterated that the burden of proof remained on the plaintiff to show the transaction was not a real transfer.
    • The sale deed recited that part of the consideration (Rupees 4242-7-6) was required to satisfy an execution creditor's decree (obtained by one Ramgolam Singh), and Exs. A, B and C were petitions in the execution case acknowledging receipt of decretal moneys. The evidence indicated the execution creditor's decree was satisfied out of the sale proceeds.
    • There was oral evidence of cash payment of the balance of the consideration. Defendant 1 supported possession by rent receipts, counterfoils, mutation of name in Register D, and certified copies of books in rent suits. The plaintiff's case rested mainly on suggestions and some oral evidence the court described as "not very satisfactory." The plaintiff did not call Sitaram Sahu himself nor produce his books of account; the court observed this but held such omission did not shift the burden of proof.
    • On balance the court found the burden of proof on the plaintiff had not been discharged. Prima facie possession had passed to Sitaram Sahu and the evidence on record did not displace the presumption of a genuine transfer. Consequently the court concluded the sale was not shown to be sham or colourable.

Holding and Implications

APPEAL DISMISSED (with costs)

The court dismissed the appeal and ordered costs. The direct effects on the parties are:

  • The plaintiff's contention that Mauza Hasanpur had been validly attached before judgment failed because the writs did not identify Mauza Hasanpur and the formal requirements of Order 21, Rule 54 (as applied to attachments of immovable property) were not satisfied.
  • The plaintiff's allegation that the sale deed in favour of defendant 1 was fraudulent and colourable was not proved; the evidence indicated payment of consideration (including satisfaction of an execution creditor) and possession and documentary indicia in favour of defendant 1, so title was not set aside.

The opinion does not discuss broader legal consequences beyond the direct effect on these parties; it does not purport to establish a novel precedent beyond applying existing provisions of the Code of Civil Procedure and the cited decision (55 Cal 5451) to the facts.

Show all summary ...

Rowland, J.:— This is an appeal by the plaintiff in a suit under O. 21, R. 63. The plaintiff had a decree against Mr. H.L Russel, defendant 2, in execution of which he sought to sell sixteen annas proprietary interest in village Hasanpur, Mahal Hasanpur, tauzi No. 2130 as being the property of his judgment-debtor. A claim was presented by defendant 1, Sitaram Sahu, alleging that he had bought the property from defendant 2 on 6th September 1926 by & deed of sale. The plaintiff's case was that the said deed of sale was a farzi transaction and no title passed under it, the beneficiary ownership of the property still remaining with Mr. Russel. The plaintiff further contended that the property had been attached before judgment on an application by the plaintiff in the suit in which he obtained the decree which he is now seeking to execute. The claim was allowed by the Subordinate Judge and the present suit has been instituted because the plaintiff is not satisfied with that position. The substantial issues were whether there was any attachment before judgment of this property in the plaintiff's mortgage suit of 1924 and whether the sale deed executed by Mr. Russel in favour of defendant 1 is fraudulent and colourable and without consideration. Both these issues were decided against the plaintiff by the Subordinate Judge. Hence this appeal in which the same points are raised.

2. Mr. De for the appellant has pointed out that in his application for attachment before judgment (Ex. 2) a list of properties to be attached is annexed and No. 25 of the properties in that list is Mauza Hasanpur. The order sheet shows that the Court in general terms directed attachment of the properties specified in the application. The plaintiff was further ordered to file the talbana and notices, etc. duly filled in. In pursuance of this order writs of attachment were issued and they with the reports of service are Exs. 1 and 3. Ex. 3 is the service of a writ issued through the Civil Court nazarat and served by a Civil Court peon. The list of properties annexed to this service return has not been printed but at the hearing we were referred to it and have found that property No. 25 of the list annexed to the petition for attachment finds no place in the list of properties annexed to the writ. This may have been as Mr. De contends an oversight; but the writ can only operate to effect attachment over properties mentioned in it. The return of service shows that it was served in villages Sonbarsa, Sandali, Fatehpur, Rampur and Sadhaua; but there is no reference to Hasanpur at all. It is clear that so far as this writ is concerned, attachment of Hasanpur was not effected and there is nothing here either to prohibit or to invalidate any subsequent dealing with the property by the defendant, Mr. Russel. The other writ is Ex. 1 which was sent to the Sub-divisional Officer, Gopalganj, for service.

3. The properties specified in this writ are the entire sixteen annas of proprietary interest in Mauza Sadhaua, Mahal Hasanpur, Kothia Rampur, pargana Dangsi, district Saran, tauzi No. 2130, sadarjama of the entire mahal being Rs. 251-4-3. It was forwarded for service and return. The report of service by the peon, Ramnagina Rai, is that he went to the mahal and after getting proclamation by beat of drum he caused a copy of the writ to be hung up in a tree and got a report written by the chaukidar. The chaukidar's report is that a writ in respect of mahal Hasanpur having been brought by Ramnagina Rai he made a proclamation by beat of drum and hung up a copy of the writ in respect of the said mahal on a banyan tree. Prom the reports it might appear that the peon and chaukidar read the order as being an order of attachment of the entire mahal. But this it certainly was not. The mahal consists of four villages, Sadhaua, Hasanpur, Bampur and Kutlupur, and of these Kutlupur had previously passed out of the ownership of Mr. Bussel. There remained only three villages which could possibly be attached. In the description of the property Sadhaua, one of these villages is mentioned by name-and after its name the words “Mahal Hasanpur” following are to be taken as descriptive and not as meaning another mauza nor yet as meaning the entire mahal including property never intended to be attached. The Subordinate Judge is right in saying that Mauza Hasanpur is not mentioned in either of the writs and so it fol lows that attachment of this mauza was not effected at all. We cannot look behind the writs to see what it was the intention of the plaintiff to attach, but we must see from the writs themselves what was the property that was attached. On this issue therefore the plaintiff fails. There was nothing in the writs by which attachment of other properties was effected to prohibit Mr. Bussel from transferring this property Hasanpur or to invalidate any such transfer.

4. It remains to consider the second issue and our attention has been drawn to the fact that Mr. Russel was seriously embarrassed at that time by pressing creditors and had motive for disposing of the property to persons out of their reach. That does not of course prevent the burden of proof from still lying on the plaintiff to show that in this case the transaction was not a real transfer. There was at the time a decree in course of execution against Mr. Bussel. It was obtained at the instance of one Ramgolam Singh and the sale deed itself recites that a portion of the consideration money, namely Rupees 4242-7-6 is required for satisfying this execution creditor. The evidence is that his decree was satisfied out of the sale proceeds of this property. Exs. A, B and C are petitions in the execution case acknowledging receipt of the decretal moneys. Then there is oral evidence of the passing of balance of the consideration in cash. In addition defendant 1, supports his possession by rent receipts and counterfoils such as, by proof of mutation of his name in Register D and by certified copies of books in rent suits. Against this the plaintiff has nothing but suggestion and some not very satisfactory oral evidence. It can be said for the plaintiff that Sitaram Sahu has not gone into witness-box himself and has not produced his books of account. But this is not enough to shift the burden of the proof on to the other side and in my opinion the burden of proof is not discharged. Prima facie, possessions has passed to and is with Sitaram Sahu, the transferee, and the evidence does not displace the presumption arising. In my view the plaintiff fails on both the issues and the appeal must be dismissed with costs.

Chatterji, J.:— I agree, But I wish to add a few words. The question whether a particular property has been attached has to be determined with reference to the writ of attachment. In the present case no doubt the property in question, Mauza Hasanpur, was mentioned in the application for attachment before judgment and the order for attachment was made in terms of that application; but the writ (Ex. 3) served by the Civil Court peon obviously does not mention this mauza at all. As regards the writ (Ex. 1) which was served through the collectorate, the description of the property may perhaps be said to be rather ambiguous but it is difficult to hold that Mauza Hasanpur was included. Even assuming that the writ Ex. 1 was in respect of Mauza Hasanpur and the attachment was effected as reported by the chaukidar who served it, still the question remains whether the attachment was valid. O. 38, R. 7 of the CPC, lays down:

Save as otherwise expressly provided, the attachment shall be made in the manner provided for the attachment of property in execution of a decree.

5. Now the mode of effecting attachment of immovable property in execution of a decree is prescribed in O. 21, R. 54 of the CPC, which is as follows:

(1) Where the property is immovable, the attachment shall be made by an order prohibiting the judgment-debtor from transferring or charging the property in any way, and all persons from taking any benefit from such transfer or charge.

(2) The order shall be proclaimed at some place on or adjacent to such property by beat of drum or other customary mode, and a copy of the order shall be affixed on a conspicuous part of the property and then upon a conspicuous part of the courthouse, and also, where the property is land paying revenue to the Government, in the office of the Collector of the district in which the land is situate.

6. This rule will apply to attachment before judgment of immovable property as there is no other express provision as to how such attachments are to be effected. There cannot be valid or effective attachment of immovable property unless the requirements of Order 21, Rule 54 of the CPC, are satisfied. Admittedly in the present case there was no prohibitory order as contemplated by that Rule. Consequently there was no valid attachment. Mr. B.C De, the learned advocate for the appellant, contends that where, as in the present, case, there is an order of conditional attachment before judgment the appropriate form of the attachment process to be issued is that prescribed in Form 5, Appx. F of the CPC, and this is the form which was employed in the present case. But this form must be read with O. 38, R. 5 which speaks of an order for conditional attachment but does not provide how the attachment is to be effected where the property is immovable. Looking to the form itself, it seems to suggest that it primarily contemplates the attachment of moveable property because it directs the serving officer to keep the property under safe and secure custody.

7. However it is the form in which the order under O. 38, R. 5 is to be served, but the actual attachment where the property is immovable, is to be effected in the manner provided in Order 21, R. 54 for which the proper form is prescribed in Appendix E, Form 24. I am supported in this view by the decision in 55 Cal 5451 where under similar circumstances it was held that an attachment before judgment of immovable property, although issued in the form prescribed in Appx. F, Form 5, was not an effective attachment within the meaning of O. 21, R. 54.

D.S/R.K

8. Appeal dismissed.