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  • provisions of section 29 and section 147A of the Bengal Tenancy Act.
  • provisions of section 147A of the Bengal Tenancy Act
  • provisions of Section 157 of the Bengal Tenancy Act.
  • provision of section 147A of the Bengal Tenancy Act
  • section 157 of the Bengal Tenancy Act
  • section 29 of the Bengal Tenancy
  • provisions of Order XXIII, rule 3,
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Citation Codes
Equivalent Citations
citation codes
Case Number
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  • provisions of section 29 and section 147A of the Bengal Tenancy Act.
  • provisions of section 147A of the Bengal Tenancy Act
  • provisions of Section 157 of the Bengal Tenancy Act.
  • provision of section 147A of the Bengal Tenancy Act
  • section 157 of the Bengal Tenancy Act
  • section 29 of the Bengal Tenancy
  • provisions of Order XXIII, rule 3,
Smart Summary

Factual and Procedural Background

(Rendered strictly from the text of the opinion)

The plaintiff-appellant, Askaran Baid, instituted a mortgage suit (suit no. 506 of 1914) against Janki Lal Singh concerning a share in village Tilauti. Askaran obtained a mortgage decree and, pursuant to execution of that decree, purchased the mortgaged properties at sale. Before the final decree in the mortgage action was obtained, a cadastral survey recorded certain lands within the mortgaged properties as the raiyati holding of Deo Lal Singh (the mortgagor's nephew) and Gouri Lal Singh (the mortgagor's servant), at a rent of Rs. 29-8-3 per year.

Because Askaran could not obtain possession of the disputed lands, he instituted a separate suit (referred to initially as suit no. 298 of 1928; later in the opinion the same suit is also referenced as suit no. 298 of 1920) against Deo Lal and Gouri Lal for recovery of possession. Janki Lal was also made a defendant. The plaint in that litigation, as considered by this Court, shows the suit was brought on trespass (ejectment) grounds; the plaintiff also sought alternatively assessment of a fair rent (claiming Rs. 15 per bigha as fair).

That suit did not go to contested hearing: a consent decree was entered in 1922 declaring Gouri Lal had no interest in the disputed lands and that Deo Lal should hold the lands on payment of a rent of Rs. 67-0-6 including cess. The present suit before the Court was instituted by Askaran to recover rent on the footing of that consent decree. The defendant resisted, arguing that the consent decree contravened the provisions of section 29 and section 147A of the Bengal Tenancy Act and was therefore wholly inoperative; the defendant asserted the plaintiff was only entitled to rent at the rate recorded in the record-of-rights (Rs. 29-8-3).

The learned District Judge in the lower appellate court held the compromise (consent decree) to be a nullity, professedly guided by this Court's decision in Chand Gorain v. Khub Lal Mahto. On appeal to this Court under Clause 10 of the Letters Patent, the learned Judge (Das, J., delivering the leading judgment) considered whether that conclusion was correct.

Legal Issues Presented

  1. Whether a consent decree passed under section 147A of the Bengal Tenancy Act can be regarded as a nullity and thus impeached in a collateral proceeding.
  2. Whether a decree under section 147A (or a consent decree in a landlord-tenant context) can be challenged collaterally on the ground that the procedural formalities required by section 147A were not observed.
  3. Whether the particular suit (suit no. 298) was a suit between landlord and tenant such that section 147A of the Bengal Tenancy Act applied, or whether it was an ejectment/trespass suit to which section 147A did not apply.
  4. Whether the compromise/decree in the facts of this case fell within the mischief of section 29 of the Bengal Tenancy Act (i.e., whether it unfairly or inequitably affected the rights of third parties or was collusive and therefore invalid).

Arguments of the Parties

Appellant's Arguments (As presented in the opinion)

  • The consent decree, even if passed under section 147A, cannot be impeached in a collateral proceeding; the question is whether such a decree can be regarded as a nullity.
  • The suit in which the consent decree was obtained was, in form and substance, a suit in ejectment (trespass), and therefore section 147A of the Bengal Tenancy Act did not apply.
  • The compromise entered into in the prior litigation was a bona fide settlement to end the litigation between the parties and did not come within the mischief of section 29 of the Bengal Tenancy Act.

Respondent's / Defendant's Arguments (As presented in the opinion)

  • The consent decree contravened the provisions of section 29 and section 147A of the Bengal Tenancy Act and was therefore wholly inoperative; the plaintiff was only entitled to rent at the rate recorded in the record-of-rights (Rs. 29-8-3).
  • A consent decree can be set aside in an action commenced for that purpose on any ground that would invalidate an agreement; reliance was placed on Huddersfield Banking Co. v. Lister and on numerous decisions of other courts to support the proposition that such decrees stand on the footing of contracts and can be impeached on ordinary contractual grounds.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Chand Gorain v. Khub Lal Mahto Held that a compromise decree passed in contravention of the provisions of section 147A of the Bengal Tenancy Act is a nullity. The Court noted that earlier this Court had taken that view, but rejected its application to the present case, holding that the decree in question could not be treated as a nullity.
Sarjugsharan Lal v. Dukhit Mahto Calcutta High Court decision followed in Chand Gorain; treated decrees under s.147A as nullities if formalities were not observed. The Court observed this decision was later doubted by one of the judges who decided it and overruled in later Calcutta High Court decisions; used to show the existence of conflicting authorities.
Ishan Chandra Banikya v. Moomraj Khan Division Bench of Calcutta High Court held a decree under section 147A cannot in a subsequent suit for rent be treated as without jurisdiction merely because the recording-of-reasons procedure was not followed; such a decree may be assailed in proper proceedings between the parties as erroneous. The Court relied on this authority to support the proposition that failure to follow formalities does not render a decree void for want of jurisdiction and therefore not susceptible to collateral impeachment.
Kunj Behary (Behari) Chowdhury v. Charon (Charan) Singh A single Judge of this Court followed the Calcutta High Court decision in Sarjugsharan Lal v. Dukhit Mahto (treating s.147A non-compliance as rendering a decree a nullity). The Court noted that this single-judge decision did not take account of contrary Division Bench authority (Deolagan(g) Singh) and thus was not decisive of the present appeal.
Deolagan(g) Singh v. Mussamat Gulbansi Kuer Division Bench (of this Court) held that a consent decree under section 147A could not be regarded as a nullity on the ground that formalities were not complied with. The Court relied on this earlier Division Bench view to support its conclusion that the decree could not be treated as void or a nullity.
Loki Gape v. Ram Nandan Prosad Singh Later single-judge decision in which the judge stated his earlier decision (Kunj Behari Chowdhury) would have been different had Deolagan Singh been brought to his notice. Used by the Court to show the evolving view within the Court and to demonstrate that Deolagan(g) Singh represents the correct approach.
Huddersfield Banking Co. v. Lister Authority cited for the general proposition that a consent decree can be set aside in an action commenced for that purpose on any ground that would invalidate an agreement (i.e., consent decrees often stand on contract-like footing). The Court distinguished this authority, holding that a decree under section 147A is not a mere consent decree and does not have all the elements of a consent decree in the general common-law sense; therefore Huddersfield Banking Co. v. Lister does not attract the present case.

Court's Reasoning and Analysis

The Court's analysis proceeded in a series of discrete steps, each grounded in the facts of the case and the legislative scheme of the Bengal Tenancy Act as explained in the opinion.

  1. Assessment of earlier decisions:

    The Court acknowledged that this Court and the Calcutta High Court had earlier taken the view (notably in Chand Gorain v. Khub Lal Mahto, following Sarjugsharan Lal v. Dukhit Mahto) that a compromise decree passed in contravention of section 147A is a nullity. However, the opinion observed that the Calcutta High Court decision had been doubted by one of the judges who decided it and subsequently overruled in later decisions. The Division Bench decision in Ishan Chandra Banikya v. Moomraj Khan was cited as directly contrary to the nullity view.

  2. Meaning of "jurisdiction" and collateral impeachment:

    The Court relied on later Full Bench clarifications (as noted in the Calcutta High Court decisions) that 'jurisdiction' means the authority of the court to render judgment in a cause and is distinct from the exercise of that jurisdiction. From this premise the Court concluded that even if the court's exercise of jurisdiction was erroneous (for example, in failing to record reasons), the decree would not be void for want of jurisdiction and therefore could not be challenged in a collateral proceeding if the court had authority over the subject-matter and the parties.

    Applying that principle, the Court found that the court which recorded the compromise was the only court that could try the case; the parties and issues were properly before it; and the court had pecuniary and territorial jurisdiction and jurisdiction over the parties. Therefore the decree could not be described as a nullity.

  3. Construction of section 147A (statutory scheme):

    The Court examined the text of section 147A and related provisions (including reference to Order XXIII, rule 3) and emphasised the legislative safeguards that section 147A expressly provides: the legislature anticipated the problem of agreements/compromises between landlord and tenant and imposed conditions and procedural safeguards (recording evidence as to legally payable rent, recording of reasons, and protection of third parties' rights) before a court may pass a decree in accordance with an agreement. Because the legislature created this special statutory procedure and safeguards, a decree passed under section 147A is not equivalent to a mere consent decree based only on parties' agreement plus court 'sanction'.

    From this construction the Court concluded that Huddersfield Banking Co. v. Lister (and the general rule that consent decrees stand on contract-like footing and therefore can be set aside like contracts) was not directly applicable: a decree under section 147A is different in kind and must be governed by the decisions directly interpreting section 147A rather than the general consent-decree rule.

  4. Character of the prior suit (ejectment vs landlord-and-tenant):

    The Court focussed on the plaint in suit no. 298 and concluded that the suit was one in ejectment (trespass) — both in form and substance — even though the plaintiff sought an alternative relief (assessment of rent) which is allowable under section 157 of the Bengal Tenancy Act. The presence of an alternative statutory remedy available to an ejectment plaintiff (section 157) does not transform a trespass/ejectment suit into a suit between landlord and tenant for the purposes of section 147A. Therefore, on the facts of this case, section 147A did not apply to the prior suit.

  5. Good faith of the settlement and section 29:

    The Court considered the possibility of collusion. The lower appellate judge had observed it was not improbable, given the relationships between the parties (nephew and servant of the mortgagor) and circumstances, that a collusive settlement might have been arranged. The Court stated it was not open to it to conclude the record-of-rights entry itself was collusive. The factual matrix, however, showed the plaintiff had contended the record-of-rights entries were collusive; parties disagreed and a compromise resulted which gave the defendant a favourable position subject to rent. The Court found it impossible to hold that the settlement was not a bona fide settlement to end litigation; on these facts the agreement did not fall within the mischief of section 29 of the Bengal Tenancy Act.

  6. Net legal conclusion:

    Because the court which recorded the compromise had jurisdiction over the cause and the parties, because section 147A contains specific safeguards and does not make every non-compliant decree a nullity, because the particular suit was an ejectment (not a landlord-and-tenant suit within the mischief of s.147A), and because the settlement appeared bona fide on the facts, the Court concluded the consent decree could not be treated as a nullity and the lower courts were wrong to hold otherwise.

Holding and Implications

Core Ruling: Appeal allowed.

The Court held that the decisions reached in the lower appellate court and by the single Judge of this Court (in so far as they proceeded on the hypothesis that the decree in the earlier suit was a nullity) were erroneous in law. The appellant's suit was to be decreed with costs throughout.

Direct consequences for the parties (as stated in the opinion):

  • The consent decree relied upon by the plaintiff is not treated as a nullity on the grounds advanced by the respondent in this collateral proceeding.
  • The plaintiff's suit (the present suit to recover rent on the footing of the consent decree) is decreed and the plaintiff is entitled to costs throughout.

The opinion analyses and distinguishes prior authorities and interprets section 147A and section 29 of the Bengal Tenancy Act in the facts before the Court. The opinion does not expressly state that it purports to lay down a binding new precedent beyond the decision in this appeal; it expressly reverses the conclusions reached in the earlier proceedings in this case and rejects the view that the decree was a nullity.

Appeal allowed.

    Askaran Baid v. Deolal Singh

    Das, J.:— This is an appeal from the judgment of a single Judge of this Court under Clause 10 of the Letters Patent. The material facts are these: Askaran Baid, the plaintiff-appellant, instituted a mortgage suit, being suit no. 506 of 1914 against one Janki Lal Singh. The property mortgaged was a share in village Tilauti. In due course Askaran obtained his mortgage decree; but before the final decree was obtained the cadastral survey had taken place in which certain lands within the ambit of the mortgaged properties were recorded as the raiyati holding of Deo Lal Singh and Gouri Lal Singh at a rent of Rs. 29-8-3 per year. Deo Lal is the nephew of Janki Lal and Gouri Lal is his servant. In these circumstances, Askaran was unable to obtain possession of the disputed lands, though he purchased the mortgaged properties at the sale held in execution of the mortgage decree. He therefore instituted a suit, being suit no. 298 of 1928, against Deo Lal and Gouri Lal for recovery of possession of the disputed lands. He also cited Janki Lal as a party defendant in that suit, and the case made on his behalf was that neither Deo Lal nor Gouri Lal had any interest in the disputed lands, the entry in the record-of-rights having been made deliberately to defeat his interest under the mortgage and in fraud of his right. We have considered the plaint which was filed by the present plaintiff in that litigation; and there is no doubt whatever that the suit was brought on trespass and trespass alone. The plaintiff, however, claimed a relief in the alternative for assessment of a fair and equitable rent payable by the defendant to him; and he maintained that Rs. 15 per bigha would be a fair rent in respect of the disputed lands. That suit did not proceed to a hearing; but a consent decree was passed by which it was declared that Gouri Lal had no interest whatever in the disputed lands and that Deo Lal should hold the disputed lands on payment of a rent of Rs. 67-0-6 including cess. This consent decree was passed in 1922. The present suit was instituted by the plaintiff for recovery of rent on the foot of the consent decree. The suit was resisted by the defendant on the ground that the consent decree contravened the provisions of section 29 and section 147A of the Bengal Tenancy Act. He contended that in the circumstances the consent decree was wholly inoperative and that the plaintiff was only entitled to rent at the rate of Rs. 29-8-3 as recorded in the record-of-rights. The learned District Judge in the lower appellate Court came to the conclusion that the compromise was a nullity and in so holding he professed to be guided by a decision of this Court in Chand Gorain v. Khub Lal Mahto. On appeal the learned Judge has upheld the view of the lower appellate court.

    It was contended on behalf of the plaintiff-appellant that assuming that the consent decree was passed under section 147A of the Bengal Tenancy Act, it cannot be impeached in a collateral proceeding. The question involves a discussion as to whether such a decree can be regarded as a nullity. As I have said the learned District Judge in the lower appellate court and a Judge of this Court have taken the view that the consent decree in this case was a nullity. It is quite true that it was decided in this Court in Chand Gorain v. Khub Lal Mahto that a compromise decree passed in contravention of the provisions of section 147A of the Bengal Tenancy Act is a nullity. This Court in so deciding followed a decision of the Calcutta High Court in Sarjugsharan Lal v. Dukhit Mahto. It is, however, worthy of note that the decision of the Calcutta High Court has been doubted by one of the learned Judges who decided that case and has been overruled in the later decisions of that Court. I may usefully refer to two of the decisions of the Calcutta High Court: In Ishan Chandra Banikya v. Moomraj Khan it was held by a Division Bench of the Calcutta High Court that a decree under the provision of section 147A of the Bengal Tenancy Act cannot in a subsequent suit for rent between the parties be treated as without jurisdiction and a nullity on the ground that the procedure laid down in that section as to the recording of reasons by the court for being satisfied that the terms of the compromise were such that of embodied in a contract, they could be enforced under the Act, was not followed; although such a decree may be assailed in proper proceedings between the parties as erroneous. I may mention that at the date when the case of Sarjugsharan Lal v. Dukhit Mahto was decided, there was considerable confusion as to the meaning of the term ‘Jurisdiction.’ Subsequently in two Full Bench decisions of the Calcutta High Court it has been made clear that the term ‘jurisdiction’ means the authority of a court to render judgment in a cause and that it has nothing to do whatever with the exercise of jurisdiction by the court. Now if this position be conceded, then it must follow that, however erroneous the decision of a court may be, it cannot be challenged collaterally if it be held that the court had complete jurisdiction to render judgment in the case. Now so far as this case is concerned, the court before which the cause was brought was the only court that could try the case: The parties were properly before him; the case was properly before him; and the court, being the only court that could, decide the case having pecuniary jurisdiction, territorial jurisdiction, jurisdiction over the parties to the suit, rendered judgment in the case. In my opinion it is impossible to say that the decision can possibly be regarded as a nullity.

    I may refer to certain decisions of this Court on this point. In Kunj Behary Chowdhury v. Charon Singh a single Judge of this Court followed the decision of the Calcutta High Court in Sarjugsharan Lal v. Dukhit Mahton; but before that case was decided a Division Bench of this Court had already taken the view that a consent decree under section 147A could not be regarded as a nullity on the ground that the formalities indicated in that section were not complied with [See Deolagan Singh v. Mussamat Gulbansi Kuer]. This judgment was not brought to the notice of the single Judge deciding the case of Kunj Behari Chowdhury v. Charan Singh and in the later case of Loki Gape v. Ram Nandan Prosad Singh the learned Judge who decided the case of Kunj Behary Chowdhury v. Charan Singh stated that his decision would have been different had the decision of the case in Deolangan Singh v. Mussammat Gulbansi Kuer been brought to his notice. In my opinion the problem for our consideration is a simple one. As I have said, the court in seisin of the case which resulted in a compromise decree was property in seisin of that case and it must follow that his decision cannot he described as a nullity.

    It was contended by Mr. S.N Roy, on behalf of the respondent that a consent decree can be set aside in an action commenced for the purpose on any ground that would invalidate an agreement; and reliance was placed on Hudders field Banking Co. v. Lister and on numerous decisions of this and other Courts. The proposition in the form in which it is stated by the learned Advocate for the respondent need not be disputed; but in my opinion a decree under section 147A of the Bengal Tenancy Act, though in one sense a consent decree, cannot possibly be said to have all the elements of a consent decree. A consent decree properly so called is a decree passed by the consent of the parties with the sanction of the Court superadded. The court cannot withhold the necessary sanction and it follows, therefore, that a consent decree properly so called stands on no higher footing than a contract between the parties; but a decree under section 147A of the Bengal Tenancy Act is altogether a different matter. It would appear on a reference to section 147A of the Bengal Tenancy Act that the legislature has anxiously considered the problem of a contract between landlord and tenant and has carefully guarded the interests of the tenant. It assumes as a general proposition that the provisions of Order XXIII, rule 3, shall not apply to any suit between landlord and tenant as such. It then proceeds to provide that if a suit between landlord and tenant as such is adjusted wholly or in part by any lawful agreement or compromise, or if the defendant satisfies the plaintiff in respect to the whole or any part of the subject-matter of the suit, the court shall pass a decree in accordance with, such agreement, compromise or satisfaction, so far as it relates to the suit; provided, and this is very important,

    “that no decree shall be passed in accordance with any agreement or compromise the terms of which, if they were embodied in a contract, could not be enforced under this Act.”

    Paragraph (3) provides that

    “where any agreement or compromise has been made for the purpose of settling a dispute as to the rent payable, the court shall, in order to ascertain whether the effect of such agreement or compromise would be to enhance the rent in a manner, or to an extent, not allowed by section 29 in the case of a contract, record evidence as to the rent which was legally payable immediately before the period in respect of which the dispute arose.”

    And paragraph (4) gives complete power to the Court not to pass a decree in accordance with the agreement or compromise where the terms of the agreement or compromise are such as may unfairly or inequitably affect the rights of third parties, unless and until it is satisfied by evidence that the statements made by the parties thereto are correct. As I have said, the legislation on this point is as anxious as can be imagined and it is, therefore, impossible to say that a decree under section 147A, though in one sense it is a consent decree, has all the elements of a consent decree. In my judgment, therefore, the case does not attract the rule of law as laid down in Huddersfield Banking Co. v. Lister and we must follow the decisions of our Courts directly under section 147A of the Bengal Tenancy Act so far as this matter is concerned. I must, therefore, hold that the decision of the learned Judge in this Court in so far as he has proceeded on the hypothesis that the decree in suit no. 298 of 1920, is a nullity is erroneous in point of law.

    There are two other questions which in my opinion ought also to be decided in favour of the appellant. It was contended that suit no. 298 of 1920 was not a suit between landlord, and tenant as such and that, therefore, the decree does not fall within the mischief of the rule as enunciated, in section 147A of the Bengal Tenancy Act. As I have already stated, the suit was both in form and in substance a suit in ejectment. It was based on the allegation of trespass and trespass alone. No doubt the plaintiff claimed an alternative relief but such a relief can be granted to a plaintiff suing in ejectment under the provisions of section 157 of the Bengal Tenancy Act. The fact that in a suit for trespass the plaintiff is claiming an alternative remedy such as section 157 of the Bengal Tenancy Act concedes to him does not make the suit any more a suit between landlord and tenant. In my judgment, therefore, section 147A of the Bengal Tenancy Act has no application to the facts of the present case. It is hardly necessary to mention that the first question dealt with by me was on the footing that the decree was a decree under section 147A of the Bengal Tenancy Act.

    The last point which, has been contended before us is equally destructive of the defendant's case. Now it must be remembered that the defendant is the nephew of the mortgagor against whom the mortgage action was brought by the present plaintiff. The learned. District Judge in his judgment concedes that it is not improbable in view of the relationship between the parties and other circumstances of the case that a collusive settlement was made at a low rate with the appellant in anticipation of the mortgage decree. It is not open to us to come to the conclusion that the entry in the record-of-rights was a collusive entry; but at any rate the facts which emerge from the judgment of the lower appellate court are that the plaintiff having succeeded in the mortgage action, having purchased the mortgaged properties at the sale held pursuant to the mortgage decree, found himself face to face with the entry in the record-of-rights describing a nephew and a servant of the mortgagor as occupancy tenants in respect of the disputed lands. Pie contested the entries in the record-of-rights. It was his case that the entries in the record-of-rights were collusive entries made with a view to defeat his interest. The position taken up by him was no doubt challenged by the defendant in the title suit. The plaintiff might have succeeded or might have failed. The defendant might have succeeded or might have failed. In this state of affairs they arrived at a compromise which conceded a favourable position to the defendant subject to his liability to pay rent at a certain rate to him. It is impossible to say that the settlement between the parties was not a bona fide settlement to end the litigation between them; and, in my opinion, such an agreement, in the particular facts of the case, does not come within the mischief of section 29 of the Bengal Tenancy Act.

    For these reasons I am of opinion that the decisions arrived in this case are erroneous and that this appeal should be allowed and the plaintiff's suit decreed with costs throughout.

    Kulwant Sahay, J.:— I agree.

    Dhavle, J.:— I agree.

    Appeal allowed.

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    Comments

    Askaran Baid v. Deolal Singh
    (Jul 19, 1929)