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  • Art. 181 of the Limitation Act
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  • Art. 181 of the Limitation Act
Smart Summary

Concise Analytical Summary of the Opinion

Factual and Procedural Background

This is an appeal by the decree-holder (Appellant) against an order of the learned District Judge of Khulna dismissing an application for execution and reversing the order of the Munsif of Bagerhat.

Key facts (as stated in the opinion):

  • A consent decree was obtained by the Appellant against the Respondent on 8th March 1925 (as stated in the opinion).
  • The decretal amount was payable in 12 instalments with the usual provision that default of one instalment would render the whole amount due.
  • The judgment-debtor made payments until 1920, the last payment being on 7th May 1920 (as stated in the opinion).
  • An application for execution was made by the Appellant on 9th December 1921.
  • Properties of the judgment-debtor were sold on 23rd February 1922; a third person became the auction-purchaser.
  • The judgment-debtor applied to set aside that sale; the sale was set aside on 5th July 1923.
  • The auction-purchaser appealed against that order; the Appellate Court confirmed the order on 29th March 1924 (as stated in the opinion).
  • The application that gave rise to the present appeal was made for execution by the Appellant on 15th December 1928 (the opinion later refers to the application having been made on 15th December 1926 when computing limitation; both dates appear in the text).
  • The learned District Judge held that the application was barred by limitation and also unsustainable on other points (the opinion states the appeal can be disposed of on the limitation point alone).

Legal Issues Presented

  1. Whether the decree-holder's fresh application for execution, made after a prior sale had been set aside, was barred by limitation.
  2. Whether an appeal by an auction-purchaser against an order setting aside a sale operates so as to prevent or suspend the decree-holder from making a fresh application for execution.
  3. Whether the principles of suspension of limitation (including those applied in prior authorities) applied to the facts of this case such that the period of limitation should be treated as interrupted or extended.

Arguments of the Parties

Appellant's Arguments

  • The learned counsel for the Appellant (Mr. Roy Chowdhury) argued that the District Judge erred in holding the application was barred by limitation.
  • The Appellant relied principally on two authorities: Shaikh Kamar-ud-din Ahmad v. Jawahir Lal and Jira Bibi v. Majiruddin, contending those cases supported his right to proceed.
  • The Appellant suggested that because the auction-purchaser had appealed against the order setting aside the sale, the execution proceedings were effectively continuing and the decree-holder was thereby prevented from making a fresh application.
  • The Appellant contended that, as a matter of convenience and to avoid complications, the decree-holder should not be prevented from presenting a fresh application while the auction-purchaser's appeal remained pending (argument about potential inconvenience and risk of competing sales).

Respondent's Arguments

The opinion does not contain a detailed account of the Respondent's legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Shaikh Kamar-ud-din Ahmad v. Jawahir Lal Held that where execution proceedings were interrupted by appeals (including appeals to the High Court and to Her Majesty in Council), an application to revive suspended execution proceedings was not barred by limitation because the appeals had intervened to interrupt the course of execution. The Court distinguished that authority: in the present case there was no interruption of execution after the sale was set aside on 5th July 1923. The Court concluded the Shaikh case did not apply here because the interruption in that case resulted from appellate orders which prevented execution; no such interruption existed in the present facts.
Jira Bibi v. Majiruddin Established that while a sale is in operation in execution, the decree-holder cannot prefer a fresh application for execution; after a sale is set aside and there is nothing to prevent execution, the decree-holder may take fresh proceedings. The Court accepted the principle and applied it to note that once the sale was set aside the right to apply for execution accrued; but the Court treated the right as accruing on the date the sale was set aside and then proceeded to compute limitation from that date.
Ranee Surnomoyee v. Shooshee Mokhee Burmonia Principal case concerning suspension of limitation or suspension of the cause of action after prior proceedings terminated. The Court cited the authority as illustrative of suspension principles but held those principles could not, in the particular facts of this case, be applied so as to extend the period of limitation for the decree-holder's fresh application.
Maharaja of Darbhanga v. Homeshvar Singh A case dealing with the right of a decree-holder to apply for execution accruing several years after the decree was made (reference to principles on such delay). The Court referred to the case as an example of relevant authority but concluded its principles were not applicable to the present facts for the purpose of suspending or extending limitation.
Madho Ram v. Nihal Singh An illustration of Art. 181 of the Limitation Act application: time for applying to revive execution (or to make a final decree) is computed from the time when the right to apply first accrued; an application filed after that period was held to be barred. The Court relied on this illustration to support the position that limitation under Art. 181 runs from the date the right to apply first accrued (here the date the sale was set aside), and therefore the present application was barred as having been made after the period allowed.

Court's Reasoning and Analysis

The Court decided the appeal could be disposed of on the single ground of limitation. The analysis proceeded as follows:

  1. Identification of the operative chronology: the sale in execution took place on 23rd February 1922; the sale was set aside on 5th July 1923; an application for execution was later made by the decree-holder (the opinion contains references to the application being made on 15th December 1928 and elsewhere to 15th December 1926 when computing limitation).
  2. Distinguishing precedent (Shaikh Kamar-ud-din Ahmad): in that authority execution was interrupted by appellate intervention (High Court and Privy Council) which prevented further execution until those appeals concluded; therefore revival was not treated as a fresh application barred by limitation. The Court found that no similar interruption of execution occurred in the present case after 5th July 1923.
  3. Treatment of appeals by third parties: the Court observed R.5 of Order XLI of the Code of Civil Procedure provides that an appeal does not operate as a stay of proceedings. On that basis the Court held that an appeal by a third-party auction-purchaser cannot, in principle, prevent the decree-holder from making a fresh application for execution.
  4. Application of Jira Bibi: the Court accepted that while a sale is in operation the decree-holder cannot make a fresh application, and only after the sale is set aside and nothing prevents execution may he do so. The Court therefore treated the right to make a fresh application as accruing on the date the sale was set aside.
  5. Consideration of suspension of limitation: the Court addressed the general idea that limitation may be suspended where a plaintiff or decree-holder is prevented from acting. It cited Ranee Surnomoyee and Maharaja of Darbhanga as authorities on suspension principles but concluded those principles did not apply to the present facts.
  6. Reliance on Art. 181 of the Limitation Act and Madho Ram: the Court stated that applications for reviving execution proceedings are governed by Art. 181, and the time for limitation runs from the date when the right to apply first accrues. Using this approach, the Court concluded the right to apply accrued on 5th July 1923 (the date the sale was set aside).
  7. Computation of time and conclusion on limitation: as the present application was made more than three years after the right to apply accrued, the Court held it was barred by limitation. The Court expressly rejected the submission that the decree-holder could rely on the pendency of the auction-purchaser's appeal to extend or suspend the limitation period.
  8. On the argument of convenience (risk of competing sales): the Court acknowledged the potential complications that might follow if the decree-holder were allowed to sell the property again while an appeal by the auction-purchaser was pending, but held that such inconvenience did not justify extending suspension of limitation. The Court noted that, had the decree-holder filed within limitation, the Court could stay proceedings on application of an interested party to avoid complications.

Holding and Implications

Holding: Appeal dismissed with costs. The Court held that the decree-holder's application for execution was barred by limitation because the right to apply accrued on the date the sale was set aside (5th July 1923) and the application was made after the statutory period applicable under Art. 181 of the Limitation Act.

Implications:

  • Direct effect on the parties: the Appellant's appeal fails and stands dismissed with costs; the decree-holder cannot rely on the auction-purchaser's appeal to treat the limitation period as suspended or extended.
  • Costs and fees: the Court ordered costs and fixed the hearing-fee at three gold mohurs.
  • Scope as precedent: the opinion applies established principles (including Art. 181 and prior case law) to the facts and distinguishes authorities relied on by the Appellant. The opinion does not purport to set a new, broader rule beyond applying existing limitation and execution principles to these facts.

Other Notes from the Opinion

The Bench consisted of B.B. Ghose, J. (delivering the judgment) and S.K. Ghose, J., who agreed. The judgment emphasizes that the appeal could be decided on the single point of limitation and that other points on which the District Judge had relied were unnecessary to determine in disposing of this appeal.

Appeal dismissed with costs. Hearing-fee, three gold mohurs.

    Akshoy Kumar Roy Choudhury v. Abdul Kader Khan

    The Judgment of the Court was as follows:—

    B.B Ghose, J.:— This is an appeal by the decree-holder against an order of the learned District Judge of Khulna dismissing an application for execution preferred by him and reversing the order of the Munsif of Bagerhat. The facts of the case are rather complicated and they have been stated elaborately in the judgment of the learned Judge. There were various proceedings between the decree-holder and the judgment-debtor which I do not think it necessary to relate for the purpose of this appeal, as in my judgment this appeal may be disposed of on one of the grounds dealt with by the learned District Judge. The facts relevant for unterstanding that point will only be stated by me. A consent decree was obtained by the Appellant as against the Respondent on the 8th March 1925. The decretal amount was payable in 12 instalments and there was the usual provision that in default of payment of one instalment the whole amount would be due. The judgment-debtor made payments till 1920, the last payment being on the 7th May 1920. It is not necessary to relate for the purposes of this judgment the intermediate proceedings which took place between the parties as regards the decree being made final as the original decree was a decree on a mortgage. On the 9th December 1921, an application for execution was made by the Appellant. The properties belonging to the judgment-debtor were sold on the 23rd February 1922, and a third person became the auction-purchaser at the sale. The judgment-debtor applied for setting aside the sale and it was set aside on the 5th July 1923. The auction-purchaser preferred an appeal against that order which was confirmed by the Appellate Court on the 29th March 1924. The present application out of which this appeal arises was made for execution by the Appellant on the 15th December 1928. The learned Judge has held that this application was barred on these facts. It is only necessary to state that the learned District Judge held that the application was unsustainable on other points but it is not necessary for me to state them now as, in my view, the case can be disposed of on this short point.

    On behalf of the Appellant Mr. Roy Chowdhury has argued that the learned Judge was in error in holding that the application was barred by limitation and in support of his contention he relies mainly upon two cases which are relevant to the point, the first of them being the case of Shaikh Kamar-ud-din Ahmad v. Jawahir Lal . I do not think that upon the facts of that case the principle laid down there can be said to apply to the present case. What happened in that case was this: The decree-holder applied for execution of his decree and notwithstanding the objections by the judgment-debtor, an order was made on the 18th December 1888, that the execution should proceed. Certain orders were made as regards the execution which according to the procedure in the North Western Province could be carried on only by the Collector. While those execution proceedings were pending, and at an early stage of their progress, on the 15th February 1889, an appeal was brought in the High Court against the original order of the 18th December 1888, under which the execution proceeded. The High Court on 7th January 1890, allowed that appeal on grounds which are unnecessary to relate. On a further appeal to her late Majesty in Council that decision of the High Court was reversed, the judgment of the Board being delivered on 24th November 1894, and embodied in an Order in Council of 12th December 1894. Then an application was made by the decree-holder to proceed with the execution of his decree on 23rd November 1897, and the application asked by its terms that the execution case instituted in August 1888, which was sent to the Collector's Court on the 23rd December 1888, may be revived. The objection of the judgment-debtor was that the application was barred by limitation. The High Court held that it was not a fresh application but one praying the Court to revive the suspended order and permit it to be pushed through to completion. The judgment-debtor appealed to the Privy Council and their Lordships held that the application was not barred. Their Lordships observed as follows: “If the appeal to the High Court against those proceedings and the judgment of that Court, the appeal to Her Majesty in Council rendered necessary by that judgment, had not intervened to interrupt the course of the execution, there was nothing in the terms of the order to preclude the decree-holder from coming again to the Court, satisfying the conditions indicated in the order, and obtaining the transmission of the case to the Collector's Court.” What their Lordships said referred to the fact that on appeal by the judgment-debtor the High Court held that the decree could not be executed. When that order stood, the decree-holder could take no steps in execution and it was only by an appeal to the Privy Council which reversed the decision of the High Court that the decree-holder was able to proceed with the execution and, therefore, under these circumstances, their Lordships observed that these orders had intervened to interrupt the course of the execution. In the present case, there is nothing to interrupt the course of the execution after the sale was set aside on the 5th July 1923. It is argued by the learned Advocate that because the auction-purchaser appealed against the order of the 5th July the whole thing was let loose and the execution proceedings were continuing and, therefore, the decree-holder was prevented from making the application. I do not think that argument is sound. R. 5 of Or. XLI of the Code of Civil Procedure provides that an appeal shall not operate as a stay of proceedings and an appeal by a third party cannot, in my opinion, prevent the decree-holder from making a fresh application for execution of his decree. The learned Advocate next referred to the case of Jira Bibi v. Majiruddin . There, a sale was held on the application of the decree-holder on the 3rd May 1909 when the decree-holder himself became the purchaser. The usual application by the judgment-debtor for setting aside the sale was made and the sale was set aside on the 14th February 1911. The learned Judges said that the position then was that no proceedings in execution could be taken so long as the sale was in operation from the 3rd May 1909 to the 14th February 1911. There cannot be any question that when the sale was in operation in execution of the decree of the decree-holder, he cannot prefer a fresh application for execution of his decree. It is only when the sale is set aside and there is nothing to prevent the execution of the decree that the decree-holder can take fresh proceedings. In that case the learned Judges cited a large number of cases in support of the proposition they laid down and there cannot be any question with regard to the correctness of the proposition. The whole difficulty is with regard to the contention that when there is an appeal against an order setting aside the sale by an auction-purchaser, the decree-holder should be considered to be prevented from making a fresh application for execution of his decree. There is no provision in the Limitation Act which would extend the period of limitation in such a case. The general principles of suspension of limitation might be applied in cases where a Plaintiff or a decree-holder is prevented under the circumstances from taking action in pursuance of his rights. The principal case as regards suspension of limitation or rather of the cause of action arising after certain previous proceedings had terminated, is that of Ranee Surnomoyee v. Shooshee Mokhee Burmonia . A case with regard to the right of a decree-holder to apply for execution of the decree accruing several years after the decree was made will be found in [Maharaja of Darbhanga v. Homeshvar Singh ]. But those principles cannot, in my opinion, be applied in the present case. It is well known and it is conceded that an application for reviving execution proceedings is governed by Art. 181 of the Limitation Act and the time from which the period begins to run is when the right to apply accrues and it is settled that the time runs from the date the right to apply first accrues. As an illustration the case of Madho Ram v. Nihal Singh (5) may be referred to. That was a case in which a mortgagee applied for making a final decree more than three years after the preliminary decree was passed and more than three years after the period allowed to the judgment-debtor to pay the amount of the decree. The right to apply first accrued after the expiry of what is called the “period of grace.” But the mortgagor preferred an appeal against the preliminary decree and on appeal and a second appeal the preliminary decree was sustained by both the Courts. After the decision of the second appeal the mortgagee applied for making a final decree. The learned Judges held that the application which was governed by Art. 181 of the Limitation Act was barred by limitation. They observed that limitation should be computed from the time when the right to apply first accrued. It should be noted that the time for payment of the money by the judgment-debtor was not extended by the Appellate Court. Under these circumstances, it seems to me that the learned Judge was quite right in holding that the time for reviving the execution proceedings which terminated by the sale being set aside on the 5th July 1923, accrued on that date and as the present application was made on the 15th December 1926, it was barred being made more than three years after the right to apply accrued. The decree-holder cannot take advantage of the appeal by the auction-purchaser and count the period from the date of the order of the Appellate Court affirming the order of the trial Court on the 29th March 1923.

    It is, however, contended on behalf of the Appellant that it would be extremely inconvenient to allow the decree-holder to present a fresh application for selling the very mortgaged property which had been sold in the previous execution proceedings during the pendency of the appeal by the auction-purchaser. He argues that if on appeal by the auction-purchaser the order of the trial Court had been set aside, various complications would arise if the decree-holder in the meantime was allowed to sell the property over again and it was purchased by another auction-purchaser. It is true that complications would arise in such a case, because if the order of the trial Court was set aside on appeal, the first auction-purchaser would get the property from the date of his purchase and the second auction-purchaser would get nothing. But that is a matter, which, I think we need not take into consideration in deciding the question whether the application of the decree-holder was barred by limitation or not.

    We cannot extend the rule of suspension of limitation by referring to inconveniences which might occur if the decree-holder was permitted to present a fresh application. If the decree-holder had presented an application within the period of limitation from the 5th July 1923, the Court might on the application of any interested party stay proceedings. That might have saved any camplications, which might possibly arise by there being two concurrent proceedings. In this case I do not propose to say anything with regard to the question as to what would have happened if the decree-holder had appealed against the order setting aside the sale on the 5th July 1923. In my opinion, there is no reasonable doubt that the decree-holder cannot take advantage of an appeal preferred by the auction-purchaser against that order. The appeal, therefore, fails and must stand dismissed with costs. Hearing-fee, three gold mohurs.

    S.K Ghose, J.:— I agree.

    H.C.S
    Appeal dismissed with costs.

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    Comments

    Akshoy Kumar Roy Choudhury v. Abdul Kader Khan
    (Aug 6, 1929)