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  • sec. 10C of the Bengal Court of Wards Act, 1897,
  • Bengal Court of Wards (Amendment) Act, 1935,
  • sec. 167 of the Bengal Tenancy Act
  • COURT OF WARDS ACT
  • Act by Bengal Act VI of 1936
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
Acts
  • sec. 10C of the Bengal Court of Wards Act, 1897,
  • Bengal Court of Wards (Amendment) Act, 1935,
  • sec. 167 of the Bengal Tenancy Act
  • COURT OF WARDS ACT
  • Act by Bengal Act VI of 1936
Smart Summary

Structured Summary of the Court's Opinion

Factual and Procedural Background

These appeals arise from two suits: Appeal No. 974 out of Suit No. 29 of 1938 and Appeal No. 975 out of Suit No. 33 of 1938. The Appellant (who was the Plaintiff in both suits) brought Suit No. 29 (a suit for declaration of title and recovery of possession) and Suit No. 33 (a suit for rent).

The Plaintiff's factual case was that she held a patni under the permanently settled estate called Char Balammara and that there was an under-tenure under that patni. On 29 November 1934 she obtained a decree for rent against the holders of the under-tenure. One-half (8 annas) of the under-tenure belonged to a ward whose property was in the charge of the Court of Wards; the other half (8 annas) belonged to other persons. On 6 July 1936 the Plaintiff purchased the under-tenure in execution of the rent decree; the sale was confirmed on 7 July 1937. She then annulled the under-tenure by notice under section 167 of the Bengal Tenancy Act and instituted the present suits: one to recover possession of the khas lands and the other to recover rent from the tenants of the holders of the under-tenure.

The defence advanced was twofold: (1) that Char Balammara was temporarily (not permanently) settled so that the under-tenures were "protected interests" that could not be annulled; and (2) that because one-half of the under-tenure was in the charge of the Court of Wards at the time of the auction-sale, the sale contravened section 10C of the Bengal Court of Wards Act, 1897 (as amended in 1936), and was therefore a nullity.

The trial Court accepted both points of defence and dismissed both suits. The lower Appellate Court agreed with the trial Court that the sale was a nullity but did not decide the first point about protected interests. The appeals to the Court giving this opinion (second appeals) raised, as principal questions of first impression, whether (1) the breach of section 10C rendered the sale void or merely voidable, and (2) whether the manager of the Court of Wards had waived his right to avoid the sale.

Legal Issues Presented

  1. Whether, on a proper construction of section 10C of the Court of Wards Act (as amended), a sale made in breach of that section is void or merely voidable.
  2. Whether the manager of the Court of Wards (or the Court of Wards) waived the right to avoid the sale so that the breach of section 10C would not render the sale invalid.

Arguments of the Parties

Appellant's Arguments

  • The Appellant contended that section 10C, properly construed, did not render a sale in breach of the section void but only voidable.
  • The Appellant also contended that the manager of the Court of Wards had waived his right to avoid the sale (i.e., that the right to object to the sale could be waived).

Respondent / Defence Arguments

  • The defence maintained that Char Balammara was temporarily settled and therefore the under-tenures were "protected interests" not capable of annulment (this was accepted by the trial Court but not decided by the lower Appellate Court).
  • The defence further argued that because one-half of the under-tenure was in the charge of the Court of Wards at the time of the auction-sale, the sale contravened section 10C of the Court of Wards Act as amended in 1936 and was therefore a nullity; both the trial Court and the lower Appellate Court accepted the sale was null for this reason.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Habiba Bibi v. Ramranjan Mallick Holds that section 10C (as amended) is retrospective in operation and applies to decrees obtained before its commencement and to execution proceedings pending at the date of commencement. The Court relied on this decision to conclude that the new section 10C applied to the present case even though the rent decree was obtained before the section's commencement; therefore the confirmation of the sale was in breach of the new section.
Ashutosh Sikdar v. Behari Lal Kirtania Identifies a practical test for distinguishing mandatory from directory provisions: whether the right to object to a breach can be waived by the party concerned. The Court invoked this test to examine whether the protection in section 10C could be waived by the Court of Wards (concluding that waiver was not open).
Bhagchand Dagadusa v. Secretary of State for India in Council Example where a procedural provision (then sec. 80 CPC) was held express, explicit and mandatory and not subject to waiver or implications to avoid injustice. Used as authority to show that provisions in a procedure code can be imperative and that the presumption that procedural directions are merely directory is not absolute.
Gaekwar Baroda State Railway v. Hafiz Habib-Ul-Haq Held certain Code provisions (secs. 86 and 87 CPC) were imperative because they related to important matters of public policy and could not be waived. Used to illustrate that statutory procedural safeguards serving public purposes are to be treated as mandatory.
Raghunath Das v. Sundar Das Khetri Held that where a statutory notice (corresponding to sec. 248 CPC / Or. 21 r.22) was not served, the sale was without jurisdiction and inoperative. Applied as an example where failure to comply with mandatory procedural requirement made the sale null and void.
Malkarjan Bin Shidramappa Pasare v. Narhari Bin Shivappa Distinguished case: where notice was served on the person whom the Court believed to be the legal representative, the execution had jurisdiction and sale was good until set aside. Referred to by the Court to show circumstances in which execution may be upheld despite a subsequent defect in representation; used for contrast with Raghunath Das.

Court's Reasoning and Analysis

The Court proceeded in a stepwise manner:

  1. The Court first determined the applicability of the amended section 10C. Relying on the decision in Habiba Bibi v. Ramranjan Mallick, the Court held that the new section is retrospective and applies to decrees obtained before its commencement and to execution proceedings pending at that date. Hence the new section applied to the present facts and the confirmation of the sale contravened the new section because part of the under-tenure was in the charge of the Court of Wards.
  2. The Court noted that the statute (section 10C) is silent as to the consequence of its breach and invoked the general principle discussed in Maxwell's Interpretation of Statutes: there is a presumption in favour of nullity when a statutory command is disobeyed, but that presumption may be rebutted where nullification would cause general inconvenience or injustice or defeat the statute's object. The Court emphasized that whether a statutory provision is mandatory or directory depends on the scope and object of the enactment.
  3. The Court applied the test highlighted in Ashutosh Sikdar — whether the right to object to the breach can be waived. If the right could be waived by the party concerned, the provision is likely not mandatory; if it cannot be waived, the provision is mandatory.
  4. The Court surveyed authorities (Privy Council decisions) showing that procedural provisions may be mandatory when they serve important public purposes, and that the mere fact that a provision relates to procedure does not automatically render it directory.
  5. The Court examined the legislative change between the old and new section 10C. The earlier provision allowed the Court of Wards to apply to the Civil Court for a stay of proceedings and left discretion to the Civil Court. By contrast, the amended provision (inserted by Bengal Act VI of 1936) removed the need for application by the Court of Wards and flatly prohibited execution against property in the charge of the Court of Wards for specified periods, irrespective of the wishes of the Court of Wards.
  6. From this difference the Court inferred legislative intention: the power to consent to execution (or to refrain from applying for stay) was deliberately taken away from the Court of Wards. This indicated that the Legislature intended that the protection could not be waived by the Court of Wards and that the provision was mandatory on pain of nullity.
  7. The Court further reasoned that the provision protects the interests of all creditors of the estate in the hands of the Court of Wards, preventing a single creditor from enforcing a claim to the prejudice of others. Treating the provision as directory (and therefore waivable) might work injustice to the general body of creditors and defeat the statute's object. The provision also embodies public policy considerations.
  8. Based on these considerations the Court concluded that breach of the amended section 10C rendered the sale void (i.e., it was a nullity) and that the Courts below were correct in so holding. The Court rejected the contentions that the sale was merely voidable or that the manager of the Court of Wards had waived the right to avoid the sale.

Holding and Implications

APPEALS DISMISSED.

Core holding:

  • The Court held that the amended section 10C of the Court of Wards Act applied to the facts of this case (it operates retrospectively for the purposes indicated in Habiba Bibi v. Ramranjan Mallick).
  • The Court held that the statute must be read as mandatory: a sale in breach of the amended section 10C is a nullity (void), not merely voidable.
  • The Court held that the manager of the Court of Wards could not waive the protection conferred by the amended section 10C; the power of the Court of Wards to consent to execution had been deliberately removed by the amendment, indicating non-waivability.

Direct consequences on the parties:

  • The Courts below were correct in treating the sale as a nullity; accordingly the appeals are dismissed.
  • Because the questions raised were of first impression, the Court ordered that the parties will bear their own costs in this Court.
  • The Court granted leave to appeal under clause 15 of the Letters Patent (as prayed for).

The opinion emphasises that the conclusion rests on statutory construction and public policy considerations; it does not purport to lay down any broader rule beyond the application and interpretation of the amended section 10C and the consequences of its breach in the present factual context.

C.C

    Manomohini Choudhurani v. Nityananda Saha Choudhury

    1. These appeals arise out of two suits, Appeal No. 974 out of Suit No. 29 of 1938 and Appeal No. 975 out of Suit No. 33 of 1938. The Appellant was the Plaintiff in both. Suit No. 29 of 1938 was a suit for declaration of title and recovery of possession, and Suit No. 33 of 1938 was a suit for rent. The Plaintiff's case was that she had a patni under a permanently settled estate, Char Balammara, and that under the patni there was an under-tenure. On November 29th, 1934, she obtained a decree for rent against the holders of the under-tenure, 8 annas of the under-tenure belonged to a ward whose property had been taken charge of by the Court of Wards, and the other 8 annas to other persons. On July 6th, 1936, she purchased the under-tenure in execution of the rent decree. On July 7th, 1937, the sale was confirmed. She then annulled the under-tenure by notice under sec. 167 of the Bengal Tenancy Act and brought the present suits, one to recover possession of the khas lands and the other to recover rent from the tenants of the holders of the under-tenure.

    2. The defence was (1) that Char Balammara was not permanently settled but temporarily settled and accordingly the under-tenures were “protected interests” which could not be annulled; (2) that as one-half of the under-tenure was under the Court of Wards at the time of the auction-sale the sale was in contravention of sec. 10C of the Bengal Court of Wards Act, 1897, as amended in 1936, and was therefore a nullity. The trial Court gave effect to both these contentions and dismissed both suits. The lower Appellate Court agreed with the trial Court as to the sale being a nullity but did not go into the first point. Both the appeals were accordingly dismissed; hence these second appeals. The points urged before me, which raise questions of first impression, are (1) that on a proper construction of sec. 10C of the Court of Wards Act, the sale, though in breach of the section , was not void but merely voidable; (2) that the manager of the Court of Wards waived his right to avoid the sale. The relevant portion of sec. 10C (1) is in the following terms:

    “Where any property is in change of the Court of Wards no Civil Court shall execute any decree or order against the person or property of the ward within four years from the date of the commencement of the Bengal Court of Wards (Amendment) Act, 1935, or from the date of the assumption of charge of the property by the Court of Wards, whichever is later, and for seven years thereafter if the interest due under such decree or, order be paid in full every year during the said seven years.”

    3. The rest of the section is not material for our present purposes and need not be reproduced here. This section was inserted in the Act by Bengal Act VI of 1936 in place of the previous sec. 10C which ran:

    “If a Civil Court has directed any process of execution to issue against any immovable property of a ward or rents thereof, or any crops standing thereon, the Court of Wards may at any time within one year after it assumed charge of such property apply to the Civil Court to stay proceedings in the matter of such process; and the Civil Court may, on such terms regarding interest or compensation for delay as may appear to it to be just and reasonable, stay such proceedings for such period as it may deem fit.”

    4. The new section was in force when the sale in the present case was confirmed though not when the rent decree was obtained; but nothing turns on the latter circumstance because it has been held in Habiba Bibi v. Ramranjan Mallick(1) that the section is retrospective in operation and applies not only to decrees obtained before its commencement (March, 1936), but also to execution proceedings pending at that date. The new section therefore applies to the present case and as the under-tenure was in part property in the charge of the Court of Wards, the confirmation of the sale was in clear breach of the section. The question is, what was the effect of this breach? Did it render the sale void or merely voidable? This is the first point taken before me. The statute itself is silent as to the effect of the breach and the question really is what intention is to be attributed by inference to the Legislature. There is no hard and fast rule on this subject. In Maxwell's “Interpretation of Statutes” the position is put thus:

    “It has been said that no rule can be laid down for determining whether the command is to foe considered as a mere direction or instruction involving no invalidating consequence in its disregard, or as imperative, with an implied nullification for disobedience, beyond the fundamental one that it depends on the scope and object of the enactment. It may, perhaps, be found generally correct to say that nullification is the natural and usual consequence of disobedience, but the question is in the main governed by considerations of convenience and justice, and, when that result would involve general inconvenience or injustice to innocent persons, or advantage to those guilty of the neglect, without promoting the real aim and object of the enactment, such an intention is not to be attributed to the Legislature. The whole scope and purpose of the statute under consideration must be regarded”. (Maxwell, Eighth Edition, page 321).

    5. In other words, the presumption is in favour of nullity but it can be rebutted by showing that it would result in general inconvenience or injustice. The author goes on to say that enactments regulating the procedure in Courts seem usually to be imperative and not merely directory. (op. cit. page 324). In Ashutosh Sikdar v. Behari Lal Kirtania(2), Mookerjee, J., has pointed out that a well-established test to distinguish between these two classes of cases is to see whether the provision is such that the right to object to its breach can be waived by the party concerned; if it can, the provision is not mandatory and its breach does not nullify the proceeding.

    6. There are at least three cases in which the Judicial Committee of the Privy Council have held that the provisions relating to procedure prescribed in the Code of Civil Procedure are mandatory. (1) Bhagchand Dagadusa v. Secretary of State for India in Council(3). This case dealt with sec. 80 of the Code of Civil Procedure which, as it then stood, provided that no suit shall be instituted against the Secretary of State for India in Council or against a public officer in respect of any act purporting to be done by such public officer in his official capacity until the expiration of two months next after notice in writing. It was contended before their Lordships that the section is merely part of a Procedure Code, passed to provide the machinery by means of which the Courts may do justice, that a construction which might lead to injustice ought not to be adopted, and that the implication of a suitable exception or qualification was, therefore, justifiable. Their Lordships, however, preferred to take the view that the section was express, explicit and mandatory, admitting of no implications or exceptions and that if it led to injustice it should be rectified by legislation. It must, however, be stated that the question which arose in that case related not to the jurisdiction of the Court to entertain a suit brought without the statutory notice but to the applicability of the statute to a suit brought for the purpose of obtaining an injunction. (2) Gaekwar Baroda State Railway v. Hafiz Habib-Ul-Haq(4). This case related to secs. 86 and 87 of the Code of Civil Procedure which provided, inter alia, that a sovereign Prince or ruling chief might with the consent of the Governor-General in Council but not without such consent be sued in any competent Court. Their Lord-ships held that the sections related to an important matter of public policy in India and that the express provisions contained therein were imperative and must be observed. They added that in view of the public purposes which the provisions served they could not be waived. (3) Raghunath Das v. Sundar Das Khetri(5). This case related to sec. 248 of the Code of Civil Procedure of 1882 corresponding to Or. 21, r. 22 of the present Code, which required that when an application for execution was made against the legal representative of a party to the decree the Court executing the decree must issue a notice to the person against whom execution was applied for, requiring him to show cause why the decree should not be executed against him. Their Lordships held that where no such notice was served, the sale was without jurisdiction and inoperative. They distinguished it from the earlier decision in Malkarjan Bin Shidramappa Pasare v. Narhari Bin Shivappa(6), where a notice was served on the person whom the Court considered to be the legal representative, although it transpired afterwards that he was not the legal representative. In such a case, they pointed out, there was jurisdiction to execute the decree and the resulting sale held good unless or until set aside by appropriate proceedings.

    7. It is thus clear that a statutory provision cannot be said to be directory as distinct from mandatory merely because it may relate to procedure. This suffices to dispose of the argument advanced before me that sec. 10C of the Court of Wards Act merely deals with procedure in execution and that disregard of its provisions, while it may be a material irregularity justifying an application for the setting aside of the resulting sale, does not make the sale void. We have to look for other indications of the intention of the Legislature and it so happens that all these other indications in the present case point to the view that the Legislature intended the section to be mandatory on pain of nullity. In the first place it may be noticed that the previous sec. 10C empowered the Court of Wards to apply for stay of execution and gave the executing Court discretion either to grant or to refuse stay.

    8. The new section makes any application by the Court of Wards unnecessary and leaves no discretion to the Civil Court to refuse stay of execution the Civil Court is flatly prohibited for a certain period from executing a decree against any property in the charge of the Court of Wards irrespective of the wishes of the Court of Wards in the matter. The power to refrain from applying for stay of execution, or what comes to the same thing, the power to consent to execution, has been deliberately taken away from the Court of Wards. This is a clear indication that it is no longer open to the Court of Wards to waive the benefit of the section. In the second place it is obvious that the provision is intended, inter alia, for the benefit of all the creditors of the estate in the hands of the Court of Wards. It ensures that a single creditor shall not be in a position to enforce his claim until the Court of Wards has had time to consider the claims of other creditors also. To treat such a provision as merely directory and its benefits as waivable by the manager of the Court of Wards, possibly under pressure from a single importunate creditor, might work injustice to the general body of creditors and thereby defeat the object of the provision. Finally, the provision embodies a matter of public policy and must be held to be imperative.

    9. Both the Courts below have thus taken a correct view of the section and these appeals must, therefore, be dismissed. As the questions raised are of first impression the parties will bear their own costs in this Court.

    10. Leave to appeal under clause 15 of the Letters Patent is prayed for and is granted.

    C.C

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    Manomohini Choudhurani v. Nityananda Saha Choudhury
    (Apr 20, 1943)