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Dhirendra Nath Sarkar And Ors. Judgment-Debtors, v. Nischintapore Company Decree-Holders,
Structured Summary of the Opinion: Execution of Decree for Arrears of Rent
Factual and Procedural Background
This appeal was brought by judgment-debtors against an order for execution of a decree for arrears of rent. On 25 February 1911 the respondents (landlords) instituted one suit for rent against the appellants (tenants), who held three distinct tenancies under three separate contracts. The plaintiffs chose to unite the causes of action in one suit under Order 2, rule 3 of the Code of Civil Procedure rather than bring three separate suits.
The plaintiffs asked that the decree specify sums due in respect of each tenancy and that realization be ordered from the respective tenancies. On 5 June 1911 a decree was drawn up specifying sums A and B to be realized by sale of tenures X and Y respectively, and a sum C to be payable by the judgment-debtors, with a direction that any balance might be recovered from the person and property of the judgment-debtors.
On 27 August 1913 the decree-holders applied for execution and, in that application, sought relief only in respect of the sum decreed in relation to the third tenancy. Later, on 16 September 1914, they made a further application for execution stating that decrees had been passed in respect of each of the three tenures and praying that the first two sums be realized by sale of the first two tenancies respectively and that, if insufficient, processes might issue against persons and other properties of the judgment-debtors.
The judgment-debtors contended that the 16 September 1914 application was barred by limitation insofar as it sought realization by sale of the first two tenancies. The Subordinate Judge overruled that contention. The single legal question for the Court was whether the application for execution was barred by limitation on the ground assigned by the judgment-debtors.
Legal Issues Presented
- Whether the application for execution made on 16 September 1914 was barred by limitation in respect of the sums directed by the decree to be levied from the first and second tenancies.
- What is the proper construction of Article 182 of the Second Schedule to the Indian Limitation Act, 1908 (in particular clauses 1, 5 and 6), as applied to a single decree that in form is one document but in substance contains distinct decrees for separate tenancies or liabilities?
Arguments of the Parties
Appellants' (Judgment-Debtors') Arguments
- The 16 September 1914 application for execution is barred by limitation insofar as it seeks to realize by sale the sums directed to be levied from the first and second tenancies.
- The steps previously taken by the decree-holders (on 27 August 1913 and earlier) related only to the decree for rent of the third tenancy and not to the first and second tenancies; thus clauses (5) and (6) of Article 182 cannot avail the decree-holders for the first two tenancies.
- The term “decree” in clauses (5) and (6) must be read in the same sense as in clause (1) — i.e., a decree to which the three-year limit applies — and separate substantive decrees (even if on one sheet) must be considered as distinct for limitation purposes.
Respondents' (Decree-Holders') Arguments
- Reliance on Article 182, clauses (5) and (6): they contended that on 27 August 1913 an application was made in accordance with law for execution of the decree (entitling them to the benefit of clause (5)).
- They also contended that notices required by the Code were issued to the judgment-debtors on 24 September 1913 and that clause (6) thus applied.
- Implicitly, they argued that because the relief was granted in one decree-document, steps taken to execute portions of that decree should keep the entire decree alive for limitation purposes.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Mulluk Chand v. Satis Chander | Authority for the proposition that a decree obtained for the entire sum due cannot be executed as a decree for rent against any one tenure. | Used as part of background illustrating why plaintiffs sought a decree specifying sums for each tenancy rather than a single undifferentiated decree. |
| Rashmoni Dasi v. Debendra Nath Sinha | Same line of authority as Mulluk Chand regarding executability of a single decree as a decree for rent against individual tenures. | Also cited as supporting the plaintiffs' precaution to obtain tenancy-specific decrees. |
| Wise v. Raj Narain Chakrabarty (Full Bench) | Held that where a decree, although made in one suit, is in substance a separate decree against each defendant for their respective portions, proceedings to enforce the decree against one do not keep it alive against others for limitation purposes. | Adopted as a controlling principle; the Court relied on the Full Bench decision to hold that separate substantive decrees on one document are to be treated separately for limitation. |
| Stephenson v. Unnoda Dos | Recognized that a nominal single decree may in reality be composite and contain a number of separate decrees against separate individuals. | Invoked to show historical recognition of the principle that ostensibly one decree can comprise separate decrees and be treated as such for execution and limitation. |
| Mohesh Chandra v. Mohun Lal | Ruled contrary to the Stephenson principle by holding that execution against one judgment-debtor keeps the decree in force against all simultaneously. | Cited as a decision that was later distinguished and then the Court reverted to the earlier position; used to explain the development of authority culminating in the Full Bench decision. |
| Khema Deby v. Komala | Reverted to the view that separate substantive liabilities in one decree should be considered separate for execution/limitation purposes. | Presented as the decision that re-affirmed the principle rejected by Mohesh Chandra and which influenced the Full Bench in Wise. |
| Chowdhury Hureehur v. Hriday Narain | Also cited in support of the Full Bench principle that separate liabilities in one decree are separate for limitation. | Used as an additional authority aligning with Wise and the view taken by the Court. |
Court's Reasoning and Analysis
The Court framed the dispute as one of construction of Article 182 of the Second Schedule to the Indian Limitation Act, 1908, focusing on clauses 1, 5 and 6 in the third column of that Article.
Clause (1) provides a three-year limitation for an application for execution of a decree not otherwise provided for by Article 183 or section 48 of the Code of Civil Procedure; because the application under review was made after three years from the decree, clause (1) alone did not assist the decree-holders.
The decree-holders relied on clauses (5) and (6). Clause (5) applies where an application has already been made in accordance with law to the proper Court for execution of the decree. Clause (6) applies where notice (required by the Code) to show cause why the decree should not be executed has been issued to the person against whom execution is applied for (a situation triggered where an application is made after one year from the decree or against legal representatives).
The Court addressed the decretal form-versus-substance issue: whether steps taken to execute part of a single formal decree keep the whole document alive against limitation. The Court reviewed the authorities showing an oscillation of views: Stephenson recognized that one document may comprise distinct decrees; Mohesh Chandra took an opposite view; Khema Deby returned to the Stephenson approach; Wise v. Raj Narain Chakrabarty (Full Bench) decisively held that where reliefs were separate for each defendant, proceedings to enforce the decree against one did not keep the decree alive against others.
The Court observed that the principle of the Full Bench has legislative approval in Explanation (1) to Article 182 of the Limitation Act, 1908 (identical to the earlier Explanation to Article 179 of the 1877 Act). The Court rejected the decree-holders' attempted distinction between separate decrees against different defendants and separate decrees against the same defendants in respect of different properties; in principle the Court found no difference.
Applying these principles to the facts, the Court reasoned that although there was one suit and one formal decree-document, the decree in substance comprised three distinct decrees directed at realization from three separate tenancies (arising under separate contracts). The plaintiffs had sought and obtained the benefit of having separate tenancy-specific reliefs (to enable sale of tenures free of encumbrances under the Bengal Tenancy Act). Because the decree-holders had previously taken executional steps only with regard to the third tenancy, those steps did not preserve the right to execute the parts of the decree relating to the first and second tenancies beyond the applicable limitation period.
The Court therefore concluded that the application for execution dated 16 September 1914 was barred by limitation in respect of the sums attributable to the first two tenancies, but that execution could validly proceed in respect of the sum decreed with regard to the third tenancy because earlier steps had been taken in time as to that tenancy.
Holding and Implications
APPEAL ALLOWED IN PART
Direct holding and immediate consequences:
- The application for execution is dismissed in respect of the sums due from the first two tenancies as stated in the seventh column of the execution application (those parts are barred by limitation).
- Execution will proceed in respect of the sum decreed with regard to the third tenancy, together with interest thereon, because the application as to that tenancy was made within the allowable period.
- The appellants are entitled to their costs in this Court; the hearing fee is assessed at two gold mohurs.
Broader implication indicated by the Court: the decision applies established principle (as affirmed by the Full Bench in Wise and reflected in Explanation (1) to Article 182) that where a decree-document contains separate substantive liabilities (here, tenancy-specific decrees), each such substantive decree is to be treated separately for limitation and execution purposes. The Court applied existing authority and legislative explanation rather than announcing a novel rule.
S.C.M
Appeal allowed in part.
This is an appeal by the judgment-debtors against an order for execution of a decree for arrears of rent. On the 25th February 1911, the Respondents as Plaintiffs instituted a suit for rent against the Appellants as Defendants, who held under them three distinct tenancies under three separate contracts. In ordinary course the landlords would have instituted three different suits for rent in respect of the arrears due. But they preferred to institute one suit for the recovery of the arrears as they were entitled to unite in one suit different causes of action against the same set of Defendants under r. 3, Or. 2 of the Code of Civil Procedure. They realised, however, that if a decree was obtained for the entire sum due, such decree could not, as held in a long line of authorities in this Court, be executed as a decree for rent against any of the tenures. [Mulluk Chand v. Satis Chander(1) and Rashmoni Dasi v. Debendra Nath Sinha(2)]. They accordingly prayed that the decree might specify the sums due in respect of each of the tenancies and that an order might be made for the realization of the sums in arrear from the respective tenancies. This was carried out and the result was that on the 5th June 1911 a decree was drawn up which specified that a certain sum, which, for the sake of brevity, may be called A, was to be realised by sale of tenure X, that a similar sum B was to be realised by sale of tenure Y, and that a third sum C was to be payable by the judgment-debtors. There was also a direction that in the event of non-satisfaction of the sums due in respect of X and Y, the balance might be recovered from the person and property of the judgment-debtors. On the 27th August 1913, the decree-holders applied for execution of the decree. They stated specifically that in respect of the third tenancy a separate decree had been passed and prayed, first, that the sum due therefrom might be realised by attachment and sale of the moveable properties of the judgment-debtors; and, secondly, that if the whole amount due was not realised, the balance might be recovered by attachment of their persons. It is remarkable that in the seventh column of the application for execution, the sum shown as due was the sum realizable in respect of the third tenancy alone; in other words the application for execution sought relief only in respect of the sum decreed with regard to the third tenancy. It is not necessary for our present purpose to narrate what took place on the basis of this application, as we are now concerned with an application for execution made on the 16th September 1914. The decree-holders stated therein that “a decree had been passed in respect of the first tenure for a certain sum, that a decree had been passed in respect of the second tenure for another sum and that a decree had been passed in respect of a third tenure for a different sum.” They prayed that the first two sums due might be realised by sale of the first two tenancies respectively and that if the whole amount was not thereby obtained, processes might issue against the persons and other properties of the judgment-debtors. The judgment-debtors contended that the application was barred by limitation in so far as the decree-holder sought to realise by sale of the first two tenures the sum directed by the decree to be levied therefrom. The Subordinate Judge has overruled this contention. The question for determination, consequently, is whether the application for execution is barred by limitation on the ground assigned by the judgment-debtors.
The answer to the question in controversy depends upon the true construction of Article 182 of the Second Schedule to the Indian Limitation Act, 1908. The clauses relevant for this purpose are those numbered 1, 5 and 6 in the third column. The first clause provides that an application for execution of a decree of any Civil Court not provided for by Article 183 or by sec. 48, C.P.C of 1908 must be made within three years from the date of the decree. As the application for execution now under consideration was made after three years from the date of the decree, the first clause by itself is of no assistance to the decree-holders. Reliance is consequently placed on their behalf on cls. 5 and 6. Cl. 5 refers to a case where an application has been made in accordance with law to the proper Court for execution of the decree. cl. 6 applies to a case where notice has been issued to the person, against whom execution is applied for, to show cause why the decree should not be executed against him when the issue of such notice is required by the Code of 1908; that is, in cases where the application for execution is made after the lapse of a year from the date of the decree or is made against the legal representatives of a deceased judgment-debtor. The decree-holders contend that on the 27th August 1913 an application was made in accordance with law to the proper Court for execution of the decree and that they are accordingly entitled to the benefit of cl. (5). They further contend that on such application for execution, notices were issued to the judgment-debtors on the 24th September 1913, and that they are thus entitled to the benefit of cl. (6). The Appellants contend that neither cl. (5) nor cl. (6) is of real assistance to the decree-holders, because they took steps in respect of the decree for rent of the third tenancy and not with regard to the decree for rent of the first and the second tenancies. The contention in substance is that although there is nominally one decree in this litigation, there are in substance three decrees on one sheet of paper. The judgment-debtors argue that the term “decree” as used in cls. 5 and 6 must be read along with the term “decree” in column 1 of the article and that the decree-holders are not entitled to the benefit either of cl. (5) or of cl. (6) on proof that they have taken action with regard to what is in essence a distinct decree from the two decrees they now seek to enforce. We have not been able to trace any authority directly in point; but we are of opinion that the contention of the Appellants is supported by a principle which underlies the decision of the Full Bench in Wise v. Raj Narain Chakrabarty. It may be observed that so far back as 1866 it was recognised by this Court in the case of Stephenson v. Unnoda Dos(4) that there might be normally one decree passed in a suit, which is essentially of a composite character, and contains a number of decrees: “It may be hat some decrees, though based nominally a one document, are in reality separate decrees against separate individuals. In such cases, the Court might and properly could consider them to be separate, and in execution put the law of limitation in force against different Defendants as if they were separate.” This doctrine was ignored in the case of Mohesh Chandra v. Mohun Lal(5) which ruled that when a decree has been passed against-several Defendants, each of whom is declared to have a separate liability in respect of a definite amount, execution against one or more of such judgment-debtors keeps the decree in force against all simultaneously. The Court, however, reverted to the view indicated in the earlier case in Khema Deby v. Komala(6). The result was that when the question arose again in the case of Wise v. Raj Narain Chakrabarty the matter was referred for decision to a Full Bench. The question turned upon the true construction of sec. 20 of the Act XIV of 1859 which was then in force, and was in these terms: “No process of execution shall issue from any Court not established by Royal Charter to enforce any judgment, decree or order of such Court, unless some proceeding shall have been taken to enforce such judgment, decree or order, or to keep the same in force, within three years next preceding the application for such execution.” With reference to this provision, it was argued that when the decree granted to the Plaintiff separate reliefs against separate Defendants, if proceedings had been taken to enforce the decree against one judgment-debtor, the requirements of sec. 20 were sufficiently fulfilled and that the effect was to keep alive the decree as against the other judgment-debtors. The substance of the contention was that the term decree should be liberally construed, and, as there could be only one decree in a suit, sec. 20 should be so interpreted as to cover cases as well of joint decrees as of several decrees disguised under one decree. This contention was overruled by the Full Bench. Couch, C.J, observed with reference to the decree before him that although the decree was made in one suit, it was in reality and substance a separate decree against each for the portion for which each was declared to be liable. [See also Chowdhury Hureehur v. Hriday Narain(7)]. The principle which underlies the decision of the Full Bench has now met with legislative approval and is embodied in Explanation (1) to Article 182 of the Indian Limitation Act, 1908, which is in terms identical with Explanation (1) to Article 179 of the Indian Limitation Act, 1877. On behalf of the decree-holders, however, endeavour has been made to draw a distinction between decrees made against different Defendants and decrees made against the same Defendants in respect of different properties. In our opinion, there is in principle no distinction between the two classes of cases. In the case before us, the Defendants held, from the Plaintiffs as their landlords, distinct tenancies under separate contracts. The obligations for enforcement whereof the suit was brought were distinct and arose from different contracts. The decree recognised this and entitles the Plaintiffs to bring to sale distinct tenancies for the realisation of the arrears leviable respectively therefrom. The position is precisely the same as if the Plaintiffs had brought three distinct suits for rent against the Defendants, one in respect of each tenancy. If they had instituted such suits, there would have been, on three different sheets of paper, the very decrees which we now find set out in one sheet of paper. If three suits were so brought, it is plain that the rule of limitation would have been applicable to each decree separately, and it could not have been urged for a moment that because the Plaintiffs had taken out execution in respect of one decree for rent against the Defendants, they were protected from the bar of limitation in respect of the other decrees. We are of opinion that although there was in the present case only one suit, yet, at the instance of the Plaintiffs, three distinct decrees have been made for their benefit, to enable them to proceed with execution under the provisions of the Bengal Tenancy Act with all the consequences which result therefrom, namely, to sell the tenures free of encumbrances imposed thereupon by the tenants. The Plaintiffs sought this advantage and were awarded relief accordingly. If they now find, themselves at a disadvantage from a different point of view which they had not possibly realised at the time, the difficulty is entirely of their own creation. There is, in our opinion, no escape from the position that the present application for execution is barred by limitation with regard to the sums claimed from the first two tenancies; but in respect of the sum due from the third tenancy, the application is in time, because made within three years from the date of the first application.
The result is that this appeal is allowed in part. The application for execution will stand dismissed in respect of the sums due from the first two tenancies stated in the seventh column. The execution, however, will proceed in respect of the sum decreed with regard to the third tenure with interest thereon. The Appellants are entitled to their costs in this Court. We assess the hearing fee at two gold mohurs.
S.C.M
Appeal allowed in part.
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