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Sarat Chandra Ghatak... v. Joy Sankar Roy Choud...

Calcutta High Court
Nov 14, 1930
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Concise Summary of the Opinion

Factual and Procedural Background

The decree-holders instituted a suit to recover approximately Rs. 27,000 under a mortgage bond dated 1323. Twenty defendants were impleaded: defendants 1–5 were the original mortgagors and defendants 6–20 were persons who had acquired interests in the equity of redemption. While the suit was pending, the plaintiffs entered into a compromise (solenama) with defendants 1–5 under terms that included an instalment mortgage decree for Rs. 24,000, a provision that default of two successive instalments would render all remaining instalments payable and permit immediate realization of the entire amount with interest, and an express stipulation that the decree to be passed on the compromise would be treated as a final decree not requiring a separate final decree for execution.

A decree dated 7 July 1924 was passed by the Subordinate Judge as against defendants 1–5 (and the suit was dismissed as against the other remaining defendants at that stage). The plaintiffs appealed to the High Court, which on 10 May 1926 varied the decree: it passed an instalment mortgage decree for Rs. 24,000 against defendants 1–5 in respect of properties then in their possession, and made other directions as to defendants 6–15 and 16–20. Subsequent proceedings led to a preliminary decree (6 Aug 1927) and final decree for sale (15 Nov 1927) as to some defendants other than 1–5.

The decree-holders applied for execution of the decree against defendants 1–5 on 3 Feb 1928. An execution sale took place on 15 Aug 1908 (as recorded in the opinion), at which the properties fetched a sum of about Rs. 7,000. Judgment-debtors 3 and 4 (the present appellants) applied on 14 Sept 1928 to set aside the sale under O. 21, R. 90 of the Code and also invoked S. 47; their application was dismissed by the Subordinate Judge, and they appealed to the High Court (the present appeal).

Legal Issues Presented

  1. Whether the execution proceedings were barred by limitation, in particular whether the execution application was time-barred having regard to the dates of the Subordinate Judge's decree (7 July 1924) and the High Court's decree (10 May 1926), and whether the decree to be executed was the Subordinate Judge's consent decree or the High Court's decree.
  2. Whether a final decree needed to be separately prepared under the solenama before execution could be sought (i.e., whether the decree passed on the compromise was to be treated as a final decree for execution purposes).
  3. Whether the execution sale should be set aside for material irregularity in publication and conduct of the sale, including adequacy of price fetched at the sale.
  4. Whether service of the O. 21, R. 22 notice on defendant 4 (a pleader residing and practising at Pingna) by delivery to his brother (defendant 3) and by affixing on the outer door of the joint family dwelling was sufficient.

Arguments of the Parties

Appellants' Arguments

  • The execution application was time-barred because it was filed more than three years after the Subordinate Judge's decree dated 7 July 1924 (even though it was within three years of the High Court's decree dated 10 May 1926).
  • The Subordinate Judge's decree of 7 July 1924 was a consent decree and therefore not appealable; consequently the subsequent execution should be measured from that date or the appellate decree's validity should be questioned.
  • No separate final decree had been prepared in the mortgage suit as against defendants 1–5, despite the solenama's provisions; thus execution was premature or barred.
  • The solenama provided that default of the first two specified instalments (Falgoon 1330 and Aswin 1331) would make the entire sum due; those instalments were defaulted and therefore time for execution should run from that earlier default date.
  • There were material irregularities in the publication and conduct of the execution sale and the price fetched (about Rs. 7,000) was manifestly inadequate (appellants contended the true value was substantially higher, and the Court below found value would not be less than Rs. 18,000).
  • Service of the notice under O. 21, R. 22 on defendant 4 was allegedly insufficient because it was effected on his brother at the joint family dwelling and by affixation to the outer door rather than personal service on defendant 4.

The opinion does not set out a detailed list of the respondents' separate legal arguments in the same structured manner.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Decision of a Full Bench of this Court (unnamed in the opinion) The execution Court can go into the validity of the decree sought to be executed only on questions of jurisdiction (pecuniary, territorial or personal jurisdiction). The Court relied on this settled principle to reject the appellants' attempt to challenge the competence of the High Court's appellate decree in execution proceedings; the Court held the competence/validity of the appellate decree could not be gone into in execution except on jurisdictional grounds.

Court's Reasoning and Analysis

On limitation and which decree governed execution:

  1. The Court examined whether the execution application was time-barred if measured from the Subordinate Judge's decree (7 July 1924). It held that the application in point of fact was an application to execute the High Court's decree dated 10 May 1926 (the appellate decree) as against defendants 1–5, and therefore limitation must be computed from the High Court decree.
  2. The appellants argued that the Subordinate Judge's decree was a consent decree which was not appealable. The Court rejected this contention for two reasons: (a) an appeal was in fact preferred from that decree and dealt with by the High Court, and (b) even if the High Court had erroneously entertained an appeal which the law did not allow, the validity of the appellate decree could not be challenged in execution proceedings except on jurisdictional grounds.
  3. The Court applied the Full Bench ruling of this Court (unnamed) that an execution Court's inquiry into validity of the decree is limited to jurisdictional questions (pecuniary, territorial, personal). The question whether the appeal to the High Court was competent could not be gone into in execution; accordingly the High Court's decree of 10 May 1926 was held to be the decree to be executed and the execution application was within time.
  4. Regarding the requirement of a "final decree": the solenama stated that a decree passed on its terms would be regarded as a final decree and it would not be necessary to prepare another final decree before execution. The High Court's instalment mortgage decree was expressly passed "in accordance with the terms of the solenama" and the Court held that there was no necessity to have another decree prepared; the High Court decree of 10 May 1926 was capable of execution.
  5. As to the contention that default of the first two instalments (as per the solenama) triggered the whole debt earlier: the Court observed that although the solenama did provide that default of those instalments would render the entire amount due, the right to realize the instalments accrued to the plaintiffs only after a decree was passed on that basis. That right therefore accrued on 10 May 1926 when the High Court made its decree, and the execution application made within three years of that date was maintainable.

On the merits of alleged irregularity in the sale:

  1. The appellants bore the burden of proving material irregularity in publication and conduct of the sale. The evidence produced by appellants to show irregularity was described by the Court as largely negative and vague.
  2. The Subordinate Judge had examined the evidence thoroughly; his findings indicated absence of material irregularity and the High Court found no material irregularity that would vitiate the sale. On that basis the Court declined to set aside the sale for irregularity.

On service of the execution notice under O. 21, R. 22:

  • Defendant 4 was a practicing pleader residing at Pingna but who visited his joint family home from time to time. The peon's return recorded that a copy of the notice was tendered to defendant 3 (brother and adult member of the joint family); when refusal occurred, the notice was affixed on the outer door of the Cutchery ghar in the outer apartment. The Court held that, in the circumstances (pleader residing at Pingna but periodically visiting the family house, and service by tender to a brother and affixation on the outer door), service was sufficient.

Holding and Implications

Holding: The appeal was dismissed. The Court concluded that the execution application was not barred by limitation, that the High Court decree dated 10 May 1926 was the decree to be executed, that no separate final decree needed to be prepared under the solenama, that the appellants had not established material irregularity in the execution sale, and that service of the notice under O. 21, R. 22 on defendant 4 was sufficient in the circumstances.

DISMISSED. The appeal was dismissed with costs, including a hearing-fee of two gold mohurs.

Implications: The direct effect is that the execution sale stands and the appellants' application to set aside the sale fails. The opinion does not indicate that it is laying down any new principle of general applicability beyond applying the Full Bench precedent (as discussed) and resolving the contested facts; no new precedent was expressly stated to have been created by this decision in the text of the opinion.

Show all summary ...

1. This is an appeal from an order passed by the Subordinate Judge, third Court, Mymensingh, refusing to set aside an execution sale. The appeal has been preferred by two of the judgment-debtors, namely, judgment-debtors 3 and 4. For a proper appreciation of the contentions that have been urged in connexion with this appeal, it is necessary to follow the facts a little closely. The decree-holders opposite parties instituted a suit for recovery of Rs. 27,000 odd on account of a mortgage bond dated 1323. They impleaded in the suit twenty persons as defendants of whom the first five were the original mortgagors and the rest were persons who had acquired interest in the equity of redemption. When the suit was pending in the trial Court a compromise was entered into between the plaintiffs on the one hand and defendants 1 to 5 on the other. The other defendants in the suit were not parties to this compromise. The terms of this compromise that are relevant at the present stage were that the plaintiffs would get a mortgage decree for Rs. 24,000, that in default of payment of any two successive kists (there having been certain instalments provided for in the compromise for payment of Rupees 24,000) all the remaining kists should be deemed to be in default and the plaintiffs should at once be entitled to realize the entire amount with interest and that the decree that was to be passed in the compromise was to be regarded as the final decree in the case so that before executing the decree it would not be necessary for the plaintiffs to obtain another decree in the nature of a final decree. A decree was passed on the basis of this compromise but not exactly in accordance therewith.

2. The suit as against the remaining defendants was dismissed and a money decree only as against defendants 1 to 5 was passed by the Subordinate Judge. This decree is dated 7th July 1924. From this decree an appeal was taken by the plaintiffs to this Court. This Court varied the decree appealed from and so far as defendants 1 to 5 were concerned it passed an instalment mortgage decree against those defendants for Rs. 24,000 in accordance with the solenama but only in respect of the properties which were in the possession of those defendants and not in respect of the properties which had passed into the hands of the other defendants. This Court also ordered that the suit as against dafendants 16 to 20 would stand dismissed but as against defendants 6 to 15 it held that certain inquiries were to be made by the Court below and thereafter a mortgage decree would be passed on the footing that so far as they were concerned the value of the suit was Rs. 3,000.

3. We are not really concerned with what was done by this Court as regards the appeal in so far as it was against the defendants other than defendants 1 to 5 and it would be sufficient to say that after the decree of this Court, there was a further investigation by the Court below and a preliminary decree as against defendants 6 to 15 was passed on 6th August 1927 and thereafter a final decree for sale was also passed on 15th November 1927. In the meantime, on 3rd February 1928, the decree-holders applied for execution of the decree that they had obtained as against defendants 1 to 5. In the execution proceedings that were started as aforesaid, the sale of the properties concerned took place on 15th August 1908. At the sale the properties fetched a sum of Rs. 7,000 odd and the appellants' case is that they were valued considerably over that amount and upon the finding of the Court below it appears that in any event their value would not be anything less than Rupees 18,000. In these circumstances, on 14th September 1928, the appellants before us, namely judgment-debtors 3 and 4 applied for setting aside the sale. Their application read as a whole was framed not merely as one under O. 21, R. 90 of the Code but also as one falling within the purview of S. 47. As already stated it was dismissed by the Court below.

4. In the appeal before us one of the contentions that has been urged with very great ability and ingenuity relates to the question of limitation. The argument is of a threefold character. In the first place it has been contended that the application for execution was barred by limitation inasmuch as it was filed more than three years beyond the date of the decree passed by the Subordinate Judge, that is to say, 7th July 1924, though undoubtedly it was made within three years of the High Court's decree dated 10th May 1926. The obvious answer to this contention is that, in point of fact it, was an application for execution of the decree passed by this Court as against defendants 1 to 5. To get over the decree of this Court however two contentions have been put forward. It has been urged that the decree of the Subordinate Judge dated 7th July 1924 was a consent decree and from that consent decree no appeal lay under the law. The contention in our opinion is not well-founded firslty, for the reason that in point of fact an appeal was preferred from this decree and was dealt with by this Court and even if this Court erronously dealt with the appeal supposing that the appeal lay where the law did not allow an appeal, the validity of the appellate decree passed by this Court in our opinion, could not be challenged in execution proceedings.

5. It has now been settled by a Full Bench of this Court that an execution Court can only go into the question of the validity of the decree which is before it for execution upon questions of jurisdiction, meaning thereby pecuniary, territorial or personal jurisdiction, and in our opinion the question as to whether the appeal before this Court is competent or not upon the grounds upon which the validity of the decree of this Court has been challenged is not a question which could be gone into in the execution proceedings. The other answer to this contention is that the decree of the Subordinate Judge although purporting to be one based upon the compromise was not exactly in accordance with the compromise and in those circumstances an appeal undoubtedly would lie from the decree so passed. Bor these reasons, we hold that it is the decree of this Court dated 10th May 1926 which was the decree to be executed in the present case and inasmuch as the application for execution was made within time calculated from the date of that decree this contention on the question of limitation should be overruled.

6. The other branch of the contention relating to the question of limitation is based upon the fact that there was no final decree prepared in the mortgage suit in so far as it was as against defendants 1 to 5. When reciting the terms of the solenama we have already stated that one of those terms was that if a decree was to be passed upon the solenama, it should be regarded as the final decree and it would not be necessary for the plaintiffs to obtain another final decree prepared before they were to apply for its execution. The decree of this Court specifically stated that the instalment mortgage decree was passed against defendants 1 to 5 for Rs. 24,000 in accordance with the terms of the solenama. There was no necessity therefore in the: present case to have another decree prepared. In fact the decree which this Court passed on 10th May 1926 was one perfectly capable of execution.

7. The question of limitation has also been pressed upon the ground that according to the instalments provided for in the solenama the first instalment of Rs. 550 was to be paid in Falgoon 1330 and the second instalment of Rs. 1,200 was to be paid in Aswin 1331 but that there was default in the payment of both these instalments and it was only in Falgoon that the sum of Rs. 500 was paid, and upon these facts the contention that has been urged is that according to the terms of the solenama on default of the aforesaid two instalments the entire amount became due and therefore time should run from that date. That undoubtedly was the provision made in the solenama but then it was not until a decree was passed on the basis of the solenama that the right to realize the instalments accrued to the plaintiffs and it was on 10th May 1926 when this Court made a decree that right accrued. The application for execution of the entire decree made within three years from the date of the High Court decree therefore, is in our opinion perfectly maintainable.

8. On the merits it has been urged that there was material irregularity in publishing and conducting the sale and inasmuch as the Subordinate Judge has found that the price fetched was inadequate, we should set it aside. The evidence bearing upon this question has been placed before us and it appears that the appellants on whom undoubtedly the burden lies of establishing material irregularity have been able to give only evidence of a negative character and of the vaguest possible description. The learned Subordinate Judge in his judgment has gone very fully into evidence and his discussion of it amply shows that there was no irregularity far less any material irregularity which can be taken to have vitiated the sale.

9. A special point was made as regards the service of the notice under O. 21, R. 22 of the Code upon defendant 4. Defendant 4 appears to be a pleader who practises at Pingna and resides there for the purpose of practice. The service was effected as appears from the peon's return, by tendering a copy of the notice to a brother of his, defendant 3, who is an adult and was living in the joint family dwelling house and when he refused to accept the copy of the notice so tendered it was served by affixing it on the outer door of the Cutchery ghar in the outer apartment. There is evidence that although the pleader, defendant 4, remains at Pingna for the purpose of practice, he goes home from time to time. In those circumstances, the service of notice at the joint family dwelling house by putting it up on the outer door of the house was in our opinion sufficient. On the whole we are of opinion that the contention urged in this appeal cannot be allowed to succeed. The appeal fails and must be dismissed with costs, hearing-fee two gold mohurs.

R.M/R.K

10. Appeal dismissed.