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Chengalraya Reddy v. Kollapuri Reddi
Structured Summary of the Opinion
Factual and Procedural Background
Certain immovable properties were owned by two brothers, Muruga (Murgapillai) and Adiyapada Pillai. On "30th February 1895" Muruga Pillai purportedly executed a mortgage in favour of the present defendant 1, who then instituted O.S. No. 755 of 1910 against both brothers. The decree in that suit exonerated the share of Adiyapada Pillai. Later, Adiyapada Pillai filed a partition suit (O.S. No. 421 of 1915) against Muruga Pillai and made defendant 1 a party; that partition suit was compromised and a definite half share in the properties was allotted to Adiyapada Pillai, with the suit dismissed as against defendant 1.
Despite the partition result, defendant 1 proceeded with execution of his decree in O.S. No. 755 of 1910 by moving to sell the entire lands. Adiyapada Pillai objected and claimed exoneration of his eastern half (S. No. 272). The Court ordered that only Muruga Pillai's western half should be sold and that defendant 1 was not entitled to sell Adiyapada Pillai's share; defendant 1's execution application was dismissed on 12th April 1917.
Defendant 1 subsequently initiated a fresh execution petition. The property was sold and defendant 1 became the purchaser under Exhibit 4 (dated 8th January 1918). He obtained delivery (Exhibit 5, dated 7th September 1918), which the opinion describes as symbolic delivery, not physical removal of the person in possession. Adiyapada Pillai sold his rights in the eastern portion to the plaintiff under Exhibit A (dated 26th June 1919). The plaintiff instituted the suit (the basis of this second appeal) alleging that the defendant obstructed him in July 1919 when he attempted to take possession of the purchased properties.
At trial the District Munsif overruled defendant 1's plea that a separate suit did not lie and proceeded on the merits, entering a decree for the plaintiff. Defendant 1 (and others) appealed to the lower appellate Court, which held that questions concerning the execution, discharge or satisfaction of a decree must be decided under Section 47 of the Code of Civil Procedure (CPC), treated the plaint as a Section 47 proceeding, and found the plaintiff's claim to be within the limitation period (Article 181 of the Limitation Act). The defendants then preferred this second appeal.
Legal Issues Presented
- Whether the claim challenging excess delivery/execution proceedings arising out of O.S. No. 755 of 1910 could be maintained as a separate suit or had to be pursued under Section 47 of the Code of Civil Procedure.
- If treated as a Section 47 proceeding, what is the correct starting point of limitation under the Limitation Act (specifically Article 181): the date of sale/delivery (Ex. 4, Ex. 5 in 1918) or the date when the plaintiff (or his vendor) was actually disturbed in possession (1919)?
- What is the legal effect of an excess sale or excess delivery (i.e., whether such sale/delivery is void and whether it must be set aside before relief is obtained)?
Arguments of the Parties
Appellant's Arguments (defendant 1)
- The principal contention was that a separate suit did not lie; all questions relating to excess delivery in execution of the decree in O.S. No. 755 of 1910 should have been settled by proceedings under Section 47 of the CPC, not by a fresh suit.
- On limitation, the appellant argued that the right to apply under the Limitation Act accrues the moment delivery was effected (Ex. 5 dated 7th September 1918) or, alternatively, from the date of the Court sale (Ex. 4 dated 8th January 1918). Therefore the plaint filed on 23rd November 1921 should be treated as time-barred.
- The appellant relied on precedent (Bihari Loll Mitter v. Tanuk Lal Mandar and Pallayya v. Bhimarazu) to support the contention that time should run from the sale/delivery event and that an application to set aside the sale/delivery must be made within the relevant shorter limitation period applicable to setting aside sales.
Respondent's Arguments (plaintiff / vendee of Adiyapada Pillai)
- The respondent (and his vendor) contended that questions of excess sale and excess delivery are void and that an aggrieved party's right to apply accrues only when his rights are actually disturbed in fact — here, when the defendant interfered with possession in 1919.
- Because excess sales and deliveries are void (not merely voidable), no immediate step to set them aside is required; consequently, limitation should run from the date of actual disturbance, not from the date of symbolic delivery or the sale certificate.
- The respondent relied on earlier decisions (including Rajagopala Ayyar v. Ramanuja Chariar and related authorities) holding that void sales need not be set aside and that the three-year period under Article 181 of the Limitation Act governs such cases.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Muttuvelu Pillai v. Vythilinga Pillai, 5 M.H.C. 185 | Questions relating to excess delivery/execution are matters of execution proceedings. | Used to support the proposition that excess-execution questions should be decided in execution (Section 47) and not by a fresh suit. |
| Kattamma Nachiar v. Bothgurusami Thevar, 6 M.H.C. 293 | Similar principle: excess execution matters pertain to execution proceedings. | Reinforces the Court's view that execution-related disputes should be addressed under Section 47, not a separate suit. |
| Rajagopala Ayyar v. Ramanuja Chariar, A.I.R. 1924 Mad. 431 (Full Bench) | Where required notice under O.21, R.22 CPC was not given and sale took place, the sale was void; such a sale need not be set aside and the limitation applicable is Article 181 (three years), not the shorter period for setting aside sales. | Relied on to hold that excess sales/deliveries are void and that limitation runs from actual infringement of rights (Article 181), supporting the view that time does not run merely from the date of sale or symbolic delivery. |
| Seshagiri Rao v. Srinivasa Rao, [1920] 43 Mad. 313 | Authority followed by the Full Bench in Rajagopala Ayyar; supports treatment of void sales and the limitation consequences. | Referenced as part of the chain of authority supporting the Court's conclusion on limitation and the void nature of excess sales/deliveries. |
| Bihari Loll Mitter v. Tanuk Lal Mandar, A.I.R. 1926 Pat. 397 | Where an application seeks to set aside a sale, the Court held that the application ought to have been made within the period prescribed for setting aside (Article 168 in that context). | The Court observed this decision but held it did not guide the specific question before it (the appropriate starting point of limitation in a case of excess sale/delivery where possession was undisturbed until a later date). |
| Pallayya v. Bhimarazu, A.I.R. 1924 Mad. 859 (Jackson, J.) | Dealt with Article 181 in the context of restitution and whether time could be extended/deducted under Section 18 of the Limitation Act where fraud was shown. | The Court noted that although Jackson, J. allowed deduction for fraud in that case, that decision did not decide the exact starting point issue now before the Court; it was consistent with the Court's view that fraud may affect computation of limitation. |
Court's Reasoning and Analysis
The Court proceeded in a stepwise manner.
- Section 47 CPC: The Court agreed with the lower appellate Court that the dispute fell within the ambit of Section 47 of the CPC. The Court emphasized that questions relating to execution, discharge or satisfaction of a decree should ordinarily be decided by proceedings under Section 47, rather than by a separate suit. The Code itself permits a Court to treat a suit as a proceeding under Section 47 or vice versa (Section 47, cl. 2), taking into account limitation or jurisdiction and allowing adjustment of court-fees if necessary.
-
Nature of excess sale/delivery: The Court examined the nature and effect of excess sales and excess deliveries. It quoted the statutory definition of "judgment-debtor":
"any person against whom a decree has been passed or an order capable of execution has been made."
Because the plaintiff's vendor (Adiyapada Pillai) was not a person against whom a decree had been passed, the Court held it had no jurisdiction to sell his property in execution of the decree. Therefore the sale was ultra vires and void. - Consequences: From the voidness of the sale the Court reasoned that a party who is not a judgment-debtor and who remains in possession need not immediately move to set aside the excess sale or delivery; the excess sale/delivery has no higher effect until the party's rights are actually infringed. The Court relied on Rajagopala Ayyar v. Ramanuja Chariar to the effect that void sales need not be set aside and that the three-year period under Article 181 would govern relief in such cases.
- Character of Exhibit 5: The Court treated Exhibit 5 (dated 7th September 1918) as symbolic delivery (an O.21, R.96 formality) rather than actual physical dispossession; the lower appellate Court described the delivery as "formal" or "symbolic."
- Starting point for limitation: Against the appellant's contention that limitation should run from the date of sale/delivery, the Court held that limitation under Article 181 starts when the right to apply accrues — which in the circumstances of this case was when the plaintiff or his vendor was actually disturbed in possession (found to be in 1919). The Court rejected the argument that the mere occurrence of an excess sale or symbolic delivery in 1918 automatically triggered the running of the limitation period.
- Consideration of authorities cited: The Court considered the authorities cited by the appellant (including Bihari Loll Mitter and Pallayya). It found Bihari Loll Mitter concerned an application that sought to set aside a sale (thus invoking a different limitation rule) and therefore not directly applicable. Pallayya concerned deduction of time under Section 18 Limitation Act for fraud; the Court observed that the principle of deduction for fraud did not conflict with its conclusion and in fact supported the proposition that time might be excluded when fraud prevented knowledge of rights.
- Fraud and knowledge: The Court accepted the concurrent findings of fact by the lower Courts that defendant 1 had, without notice to Adiyapada Pillai, caused the whole property to be sold, became purchaser, and obtained symbolic delivery behind Adiyapada Pillai's back; the plaintiff (and his vendor) only became aware of the interference with possession in 1919 when the defendant obstructed them. The Court concluded these facts could legitimately support the application of Section 18 of the Limitation Act (deduction for fraud), even though Section 18 had not been specifically pleaded.
- Conclusion of analysis: On the basis that (a) excess sale/delivery was void and need not be set aside by persons who were not judgment-debtors, (b) the delivery was symbolic and did not dispossess the vendor, and (c) the vendor and purchaser were not disturbed in possession until 1919, the Court held the plaint (treated as a Section 47 proceeding) was within the three-year period of Article 181 and was not barred by limitation.
Holding and Implications
Holding: The second appeal is dismissed.
Implications and direct effects:
- The Court affirmed the lower appellate Court's treatment of the plaint as proceedings under Section 47 CPC and agreed that execution-related disputes of this character should be addressed under Section 47 rather than by an independent fresh suit.
- The Court held that the excess sale and the symbolic delivery in this case were void (ultra vires because the vendor was not a judgment-debtor), and that an aggrieved person who remained in possession is not required immediately to set aside such a sale; limitation runs from the date the party's rights are actually disturbed (here, 1919), so the plaintiff's action filed on 23rd November 1921 was within the three-year period of Article 181 of the Limitation Act.
- The practical consequence for the parties is that the decree of the lower appellate Court (confirming the District Munsif's decree in favour of the plaintiff / vendee) stands, and the plaintiff's remedy was held to be timely.
- The Court's decision applied existing principles from earlier authorities (as cited) and did not purport to create a novel rule beyond applying those authorities to the facts: the opinion reasons from prior case law that excess sales/deliveries are void and that limitation runs from actual disturbance of rights rather than from symbolic or unnoticed steps in the execution process.
P.R.S/V.S
Order:
Appeal dismissed with costs.
1. Certain immovable properties belonged to two brothers, Murgapillai and Adiyapada Pillai. On 30th February 1895 Muruga Pillai executed a mortgage hypothecating the properties in favour of the present defendant 1. On the foot of that mortgage the present defendant 1 instituted O.S No. 755 of 1910 against both Muruga Pillai and Adiyapada Pillai. But the decree passed in that suit exonerated the share of Adiyapada Pillai. Subsequently Adiyapada Pillai filed a suit for partition against his brother Muruga Pillai to which suit he made the present defendant 1 also as party defendant. That suit was O.S No. 421 of 1915. The partition suit was compromised and a definite half share in the suit properties was allotted to Adiyapada Pillai, the suit being dismissed against the present defendant. The defendant 1, decree-holder in O.S No. 755 of 1910, proceeded to execute his decree by bringing to sale the entire lands. Adiyapada Pillai naturally intervened and objected and claimed exoneration of his share, namely, the eastern half of S. No. 272 allotted to him by the final decree in the partition suit. Though the partition decree was passed on a compromise between the brothers only and though as far as the present defendant 1 was concerned the order was that the suit be dismissed as against him, yet the Court ordered that Muruga Pillai's western half alone should be sold, and that defendant 1 was not entitled to sell the share of Adiyapada Pillai in execution of the decree in Suit No. 755 of 1910. When such an order was passed by the Court defendant 1 decree-holder in O.S No. 755 of 1910 dropped further proceedings in execution, and had his execution application dismissed on 12th April 1917. Subsequently it would seem that defendant 1 again applied by means of a fresh execution petition to have the entire lands sold in execution of his decree in O.S No. 755 of 1910. The property was sold and he himself became the purchaser under Ex. 4, dated 8th January 1918. In execution of the sale certificate he applied for and obtained delivery of the land including the eastern half of the land: vide delivery receipt Ex. 5, dated 7th September 1918. It is seen with reference to this Ex. 5 that it was only a symbolic delivery and not delivery of actual possession after removing the person in possession. Adiyapada Pillai sold his rights in the eastern portion of the suit lands to the present plaintiff under Ex. A dated 26th June 1919. The suit which gave rise to this second appeal was instituted by the plaintiff as the vendee from Adiyapda Pillai under Ex. A alleging that the defendant obstructed him in July 1919 when he went to take possession of the properties purchased by him.
2. The main plea raised by defendant 1 was that a separate suit does not lie and that all questions relating to excess delivery in execution of the decree in O.S No. 755 of 1910 to which Adiyapada Pillai was a party should have been settled by proceedings taken under Section 47 of the CPC. The learned District Munsif overruled that contention and went into the merits of the plaint allegations, holding that a separate suit lay in the circumstances of this case. On the merits he passed a decree in favour of the plaintiff. Defendant 1 preferred an appeal to the lower appellate Court along with his sons, the other defendants in the case. In the lower appellate Court the question was again raised that the present suit is not maintainable having regard to the provisions of Section 47 of the CPC. The lower appellate Court upheld that contention of the defendant, and I think it was right on that point. Section 47 of the CPC, is clear that all questions relating to execution discharge or satisfaction of a decree should be decided by proceedings under Section 47 of the CPC, and not by a separate suit.
3. The question of excess delivery relates to execution. That has been held by this High Court even in a very early case reported in Muttuvelu Pillai v. Vythilinga Pillai . 5 M.H.C 185.: see also in Kattamma Nachiar v. Bothgurusami Thevar . 6 M.H.C 293. so that it is clear that questions relating to excess execution, if raised by a person who was a party to the suit, should not be raised by a fresh suit but should be decided in execution proceedings only. The lower appellate Court being clearly right in that view, the question arose before, it whether the present suit should be treated under the circumstances as an application filed under S. 47. There were difficulties according to some of the decisions passed prior to the present Code, in so treating the same. To remove such difficulties, specific provision has been made in the present Code by S. 47, Cl. 2, where it is specifically enacted that the Court may subject to any objection as to limitation or jurisdiction, treat a proceeding under this section as a suit or a suit as a proceeding and may, if necessary, order payment of any additional court-fee. The circumstance that a plaint is filed after paying a higher amount of court-fee cannot according to the present Code be a ground for not treating the proceeding as an application under S. 47.
4. The only further question would be whether there is any question ‘of limitation bar applicable to the plaintiff's case. The lower appellate Court held that the application was not barred by limitation, observing that Article 181, Lim. Act, applied to the case and that the starting point of limitation should be taken to be, when the plaintiff was obstructed or disturbed in his possession. It went into the evidence and came to the finding that it was only in 1919 that the plaintiff or Adiyapada Pillai was disturbed in his possession and that the defendant had not been put in physical possession in execution of his sale certificate. The suit having been filed on 23rd November 1921 that is within the period of three years provided by Article 181, Lim. Act, the lower appellate Court decided the question of limitation against the defendants, and thus in the end confirmed the decree of the first Court.
5. Against the decision of the lower appellate Court the defendants have preferred this second appeal.
6. Both the learned advocates who appear in the case are agreed that the question in dispute is one covered by Section 47 of the CPC. I think that the lower appellate Court was right in having treated the plaint as a proceeding under S. 47 in the circumstances of this case. The only remaining question then is that of limitation. It was strenuously argued by the learned advocate for the appellant that the lower appellate Court was wrong in fixing the starting point of limitation in this case. He contended that the words of Article 181, viz., “when the right to apply accrues” should be read without introducing into the article any further words or phrases. According to the learned advocate the right to apply accrued the moment the delivery was effected and delivery was effected under Ex. 5 in favour of his client the auction-purchaser, on 7th September 1918. The article does not say that the starting point is only from the date when the applicant had knowledge of his rights or when he was dispossessed. That being so, the learned advocate argued that this application because the plaint filed in this case should be taken to be application for the present purpose was barred by limitation. He drew my attention to the case reported in Bihari Loll Mitter v. Tanuk Lal Mandar, A.I.R 1926 Pat. 397, and also to the decision of Jackson, J., in Pallayya v. Bhimarazu . A.I.R 1924 Mad. 859.. On behalf of the respondent it was argued by his learned advocate that this question must be decided having regard to the accepted view viz., that excess sale in execution is void. If excess sale is void, he contended that excess delivery also is void as such; and that as it has been held that no suit need be filed to set aside excess sales, it follows that no application need be filed to set aside excess delivery and, it is only when the rights of Adiyapada Pillai or the plaintiff are in any way actually disturbed that their right to take any steps arises and that in this particular case having regard to the concurrent findings of both the lower Courts that the plaintiff's vendor was in possession till 1919 and that the defendant got physical possession only in 1919, the (plaint) application filed in 1921 could not be held to be barred.
7. It seems to me that in such cases we have to keep in mind what exactly is the nature and effect of such excess sales and such excess deliveries.
8. In the first place, the definition of the word ‘judgment-debtor’ according to Code of Civil Procedure is:
“any parson against whom a decree has been passed or an order capable of execution has been made.”
9. Now in this case the plaintiff's vendor was not a person against whom any decree had been passed or order capable of execution had been made. Therefore the Court had no jurisdiction to sell his property in execution of the decree. The sale was thus ultra vires and void, being in excess of the Court's jurisdiction, the jurisdiction of the Court being limited to execute the decree against Muruga Pillai, against whom only the decree had been passed. It does not follow from what I have said that if in execution proceedings in connexion with a suit to which a person was a party anything happened which affected his rights, that he need not proceed under S. 47. The words of S. 47 are wider and under that section even persons against whom no decrees have been passed but who are parties to the suit, have to come under S. 47, if any of their rights be infringed in execution proceedings by the decree-holder. The procedure ordinarily available by way of suits is substituted by one of applying to the executing Court by means of a petition. This is the only effect of S. 47 of the Code. The legal rights of the parties have to be considered and adjusted upon.
10. But it does not also follow that such persons are judgment-debtors within the definition of the Code of Civil Procedure.
11. Now Rajagopala Ayyar v. Ramanuja Chariar . A.I.R 1924 Mad. 431, is a decision of a Full Bench of this Court which held that when notice required by O. 21, R. 22 of the CPC, was not given, but the sale took place, that such a sale was void. Being void the sale need not be set aside, and as such sale need not be set aside, the period of limitation (comparatively shorter), prescribed by Article 166 would not apply, so that in cases where sales are held to be void, appropriate relief could be obtained by parties to the suit by proceeding under S. 47, the period of limitation being not the period prescribed for the setting aside of sales but general period of three years prescribed by Article 181. If excess sale is void and no notice need be taken of the same by any parties to the suit, until their rights are actually infringed, I fail to see how excess execution could have any higher effect. In this particular case it is found that there was no notice to the plaintiff's vendor either in connexion with the second application for execution which resulted in the excess sale, or in connexion with the delivery evidenced by Ex. 5. Exhibit 5, I think evidences only is symbolic delivery, under O. 21, R. 96. The lower appellate Court says with reference to this that.
“the delivery which defendant 1 obtained under Ex. 5 was a was formal one evidently.”
12. If I am right in my view about the effect of this excess delivery, the plaintiff's vendor need not have taken any steps simply because there was this excess delivery in execution. He was not bound to apply to have the order relating to excess delivery set aside. If he could ignore that order as he could have ignored the excess sale itself, what then is the real act by which he is aggrieved; in other words, when does the right to apply accrue to him within the meaning of Article 181, Lim. Act. So long as he was in possession it did not matter to him what orders of excess sales or excess deliveries were passed behind his back. I think the lower appellate Court was right in its finding that Article 181 applied and that the application was not barred.
13. I wish to notice the two cases that were cited to me by the learned advocate for the appellants. The first case reported in A.I.R 1926 Pat. 397 was a case where an application was made professedly to set aside excess sale. The Court, as I understand the judgment, held that as the prayer was to set aside the sale, the application ought to have been made within the period prescribed Article 168. I do not understand the learned Judges to lay down anything more than that. I do not think that the case affords any guidance to me with reference to the question that I have now to decide. The decision of Jackson, J., reported in Pallayya v. Bhimarazu, deals with Article 181, Lim. Act. His Lordship came to the conclusion in that case that the application was not barred by Article 181. His Lordship had before him an application for restitution made after the expiration of three years from the date, as I take it, of the sale. It was argued that the applicant was entitled to deduct the time prescribed by Section 18 of the Lim. Act, if a case of fraud was made out. His Lordship found on the facts that a case of fraud had been made out and that the applicant was entitled to deduct that period. Deducting that period it was found that the application before the Court was within three years, even if the starting point was taken to be the date of sale; and accordingly the application was not barred.
14. His Lordship had not to decide the exact point that I have to decide in this case viz., what the starting point of limitation in such a case would be. What the starting point in that case was having regard to the circumstances was evidently assumed and not disputed by the parties; and the only question that required the decision of the Court was whether the period covered by Section 18 of the Lim. Act, could be deducted; and his Lordship held—and if I may say so respectfully—very properly that the petitioner was entitled to such a deduction. I do not see how this decision is against the view, that I am now inclined to adopt as regards the starting point of limitation in the present case. Being thus of opinion that the starting point of limitation in the case before me was only when the plaintiff's vendor or the plaintiff was disturbed in his possession, I think the lower appellate Court was right in the view it took on the question of limitation. This view received support from the observations of the Full Bench of this Court in the case reported in Rajagopala Ayyar v. Ramanuja Chariar, where the decision in Seshagiri Rao v. Srinivasa Rao . [1920] 43 Mad. 313, by Seshagiri Iyer and Moore, JJ., was followed. The learned advocate for the appellant at one stage of his argument seemed to contend that in this case limitation began even from the date of the Court sale (Ex. 4 dated 8th January 1918) and not merely from the date of the delivery proceedings evidenced by Ex. 5. But as I have held that the sale in question is excess sale not authorized by the decree and is consequently void and that it need not be set aside, time will not begin to run from that event. For the reasons I have given, if I am right in my view that excess sales are void and need not be set aside by persons who are not judgment-debtors, the circumstance that the sale took place in 1918 would not in any way prejudice the plaintiff-respondent in this particular case. Finally there is also the finding that in spite of the order passed in his first execution application that he was not entitled to proceed against the shares of the property allotted to Adiyapada Pillai, the decree-holder, the present appellant, again applied by a fresh execution application some time later for the same relief and for the sale of the whole of the property and that, without giving any notice to Adiyappa Pillai had the whole property sold and himself became the purchaser; and again without any notice to Adiyapada Pillai he managed to get symbolical delivery behind the back of the latter. Adiyapada Pillai and his vendee the present plaintiff (respondent) came to know about the fraudulent acts of the appellant only in 1919, when the appellant interfered with their possession; till then they were in possession and were paying revenue on the property. In the circumstances though Section 18 of the Lim. Act, has not been specifically referred to in the plaint, the case would really seem to come under that section and the period before 1919 could not be counted against the respondent. From the facts found in this case, such an inference could legitimately be drawn in the particular circumstances of this case and though ordinarily facts bringing a case under S. 18 have to be specifically pleaded. On all these grounds I dismiss the second appeal with costs.
P.R.S/V.S
15. Appeal dismissed.
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