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  • Article 166, Limitation Act.
  • 1, Limitation Act.
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Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
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  • Article 166, Limitation Act.
  • 1, Limitation Act.
Smart Summary

Factual and Procedural Background

This opinion arises from an appeal concerning an order of the Additional District Judge of Alipur which reversed an order of the Subordinate Judge of Alipur. The contested orders related to (a) setting aside a sale under Order XXI, Rule 92 of the Code of Civil Procedure (CPC), and (b) a determination that an application for execution was barred under Section 47 of the CPC.

The applicant before the Court was the widow of the judgment-debtor. The subordinate forum had found deliberate and fraudulent suppression of notices by the decree-holder and that the applicant had sustained substantial injury; on these findings the sale had been set aside under O.21, R.92. The appellant (decree-holder) challenged those findings and other rulings.

Relevant procedural dates recorded in the opinion:

  • Decree passed: 25 February 1916.
  • An application for leave to issue execution was dismissed for default: 26 November 1923 (order: "Notice returned after service. Decree-holder takes no further steps. So the case is dismissed.").
  • Application for leave to issue execution now impugned: filed 10 November 1924.
  • Sale (conducted pursuant to the impugned execution process): 13 July 1925.
  • Petition forming the basis of the order under review filed: 4 December 1925.

Legal Issues Presented

  1. Whether the applicant's application under Order XXI, Rule 90/92 was barred by limitation because it was not made within thirty days of the sale.
  2. Whether the application for leave to issue execution (filed 10 November 1924) was barred by limitation under Section 47 of the CPC, specifically whether it was made within one year as required by Order XXI, Rule 22.
  3. Whether failure to serve notice under Order XXI, Rule 22 (sub-rule (1)) renders the execution proceedings void, and what effect the proviso in sub-rule (2) (added in 1908) has on the mandatory nature of sub-rule (1).
  4. Which article of the Limitation Act governs an application under Section 47 of the CPC to set aside or declare a sale void — Article 166 (thirty days) or the residuary Article 181.

Arguments of the Parties

Appellant's Arguments (as presented by Mr. Roy Chowdhury)

  • In respect of the order under R.92: the application to set aside the sale was not made within thirty days of the sale and therefore was barred by limitation; in particular, the application under O.21, R.90 was time-barred because it was not made within 30 days and there was no express finding that the applicant was prevented from making the application in time by the decree-holder's fraud.
  • In respect of non-compliance with O.21, R.22: the addition of sub-rule (2) in 1908 gave the Court discretion to issue execution without notice; therefore non-compliance with the machinery of sub-rule (2) is at most an irregularity and does not render the execution proceedings void.
  • Regarding the petition filed after the sale: the petition under Section 47 must be brought within thirty days of the sale under Article 166 of the Limitation Act; hence the petition was out of time.

Applicant's Arguments

  • The applicant alleged deliberate suppression of all necessary processes by the decree-holder and stated she was an illiterate pardanashin lady who knew nothing of the proceedings until informed by her father, and that she only learned after the period within which an application under O.21, R.90 should have been made.
  • The applicant contended that the decree-holder's application for leave to issue execution was made long after the decree had become obsolete by lapse of time; more specifically, the application for execution was not made within one year from the date of the decree nor within one year from the date of the last order against the party against whom execution was applied for (as required by O.21, R.22), and no notice was served upon the applicant as required by O.21, R.22, rendering the application for execution void and of no effect.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Rahimbhoy Habibhoy v. Turner Authority cited in relation to the timeliness of an application under Order XXI rules and the circumstances in which delay may be excused. The Court referred to this ruling (together with Ram Kinkar Tewari v. Sthiti Ram Panja) to reject the appellant's contention that the applicant's O.21, R.90 application was barred by limitation.
Ram Kinkar Tewari v. Sthiti Ram Panja Authority relevant to limitation questions and to characterize the applicable article of the Limitation Act in relation to petitions under Section 47 CPC. Referred to both for the rule on limitation and for supporting the Court's conclusion that the petition to declare the sale void falls under the residuary Article 181 of the Limitation Act (and was therefore within time).
Raghunath Das v. Sunder Das Khetri Privy Council authority that issuing execution processes without complying with O.21, R.22 (notice) renders the execution proceedings void. The Court accepted and applied this principle, treating the issuing of execution without the required notice as grounds for declaring the subsequent execution proceedings void.
Syam Mandal v. Sati Nath Banerjee Interpretation by the Calcutta High Court of the amended R.22 (post-1908), addressing the relationship between sub-rule (1) and sub-rule (2). The Court cited this decision as consonant with its view that sub-rule (2) is an exception and does not abrogate the mandatory nature of the notice requirement in sub-rule (1).
Rajagopala Aiyar v. Ramanujachariar Full Bench of the Madras High Court interpretation of R.22 as amended, supporting the construction that notice under sub-rule (1) remains mandatory except in exceptional cases justified under sub-rule (2). The Court relied on this Full Bench authority to support its construction of R.22 and also cited it in relation to the limitation point (application of residuary Article 181 to the petition).

Court's Reasoning and Analysis

The Court's analysis proceeded in discrete steps addressing each contested point:

  1. Order XXI, Rules 90 & 92 — setting aside the sale:
    • The subordinate findings were that the decree-holder deliberately and fraudulently suppressed notices required by law and that the applicant (widow of the judgment-debtor) suffered substantial injury. The applicant also claimed illiteracy and social seclusion (pardanashin) and that she only discovered the proceedings after the statutory time for making an application under O.21, R.90 had expired.
    • The Court considered the appellant's contention that the R.90 application was barred by limitation because it was not made within thirty days, but, having regard to the rulings cited (Rahimbhoy Habibhoy and Ram Kinkar Tewari), rejected that contention and confirmed the order so far as founded upon O.21, R.92.
  2. Limitation and O.21, R.22 — application for leave to issue execution:
    • The applicant alleged that the application for leave to execute the decree was made long after the decree had become obsolete by lapse of time. The Subordinate Judge had mistaken this for an allegation that the substantive claim was barred by limitation; the Court corrected that characterisation and focused on the procedural timeliness required by Order XXI, Rule 22.
    • On the facts, the decree dated 25 February 1916; an earlier application was dismissed for default on 26 November 1923; the present application was filed on 10 November 1924. Unless the decree-holder could show that within one year prior to 10 November 1924 an order had been made against the party (the judgment-debtor) within the meaning of O.21, R.22, the later application was barred by limitation.
    • The Court examined the orders placed before it (including the 26 November 1923 order) and held that the text "Notice returned after service. Decree-holder takes no further steps. So the case is dismissed." cannot reasonably be construed as an order directed against the judgment-debtor within the meaning of O.21, R.22. Two subsequent orders relating to a review of the dismissal likewise did not purport to be orders against the judgment-debtor.
  3. Effect of issuing execution without the notice required by O.21, R.22 and construction of sub-rule (2):
    • The Court reviewed the pre-1908 Privy Council authority (Raghunath Das v. Sunder Das Khetri) that issuing execution process without complying with R.22 renders the execution proceedings void, and endorsed the reasoning: after a year from the decree a debtor should be given notice so that he may have an opportunity to show cause.
    • Addressing the amendment in 1908 (addition of sub-rule (2)), the Court rejected the appellant's submission that sub-rule (2) fundamentally altered the mandatory nature of sub-rule (1). Instead, the Court read sub-rule (2) as creating a narrow exception for rare cases where immediate execution is imperative to do justice, and only in such exceptional circumstances (with reasons recorded) could execution be issued without notice.
    • The Court found this construction to be consistent with the Calcutta High Court decision in Syam Mandal v. Sati Nath Banerjee and the Madras Full Bench decision in Rajagopala Aiyar v. Ramanujachariar.
    • Consequently, the execution proceedings founded on the application of 10 November 1924 were held to be void for want of compliance with O.21, R.22.
  4. Limitation applicable to the petition under Section 47 (to set aside or declare sale void):
    • The appellant argued that the petition under Section 47 was an application to set aside a sale and therefore had to be brought within thirty days of the sale under Article 166 of the Limitation Act.
    • The Court distinguished the present petition: because the sale was void for want of proper execution procedure, it need not be "set aside" in the conventional sense; the order passed was in substance a declaration that the sale was null and of no effect. For that kind of application there is no specific article in Schedule I; the petition therefore falls under the residuary Article 181.
    • Applying Article 181, the Court concluded the petition was within time. This conclusion was supported by authority (Ram Kinkar Tewari and Rajagopala Aiyar).

Holding and Implications

Core Ruling: The Court varied the order appealed from by striking out the words "on the above consideration." In other respects the appeal was dismissed with costs; the hearing fee was assessed at two gold mohurs.

Additional holdings and immediate consequences:

  • The Court confirmed the setting aside of the sale under Order XXI, Rule 92 insofar as that order was founded upon the findings of deliberate suppression of process and resultant prejudice to the widow-applicant.
  • The execution proceedings founded upon the application of 10 November 1924 were declared void for failure to comply with Order XXI, Rule 22 (notice requirement), the Court holding that sub-rule (2) creates only a narrow exception and does not abrogate the mandatory notice requirement of sub-rule (1).
  • The petition under Section 47 seeking a declaration that the sale was null and void fell under the residuary Article 181 of the Limitation Act and was therefore within time; it was not governed by Article 166 (thirty days).
  • Costs were awarded against the appellant; hearing fee fixed at two gold mohurs.
  • The order was made without prejudice to any rights the parties may have inter se in respect of the premises which were the subject-matter of the proceedings.

Note: This summary is drawn exclusively from the text of the provided opinion and does not add or infer information beyond that opinion.

    Monmatha Nath Ghose Auction-Purchaser v. Mt. Luchmi Debi And Others Judgment-Debtor And Decree-Holders

    Page, J.:— This is an appeal from an order of the learned Additional District Judge of Alipur, reversing an order of the Subordinate Judge of Alipur whereby the learned Additional District Judge set aside a sale under O. 21, R. 92, and also held that the application for execution was barred under Section 47 of the CPC. As regards the application under O. 21, R. 90 it appears that the applicant was the widow of the judgment-debtor, and the learned Judge held that there was a deliberate and fraudulent suppression of the notices required by law on the part of the decree holder, and that by reason of such suppression the applicant had sustained substantial injury. Upon these findings the learned Judge set aside the sale under O. 21, R. 92. The case for the appellant has been presented to us in an exhaustive manner by Mr. Roy Chowdhury, and in respect of the order passed under R. 92 the learned advocate has contended that inasmuch as the application was not made within 30 days of the sale it was barred by limitation and that as there was no express finding that the applicant was prevented from making her application in time by reason of the fraud of the decree-holder the application under O. 21, R. 90 was barred. Now, in her application the applicant not only set out that there had been deliberate suppression of all necessary processes but added that she was an illiterate pardanashin lady, and that she knew nothing about the proceedings until she was informed by her father at a date after the time had expired within which her application under O. 21, R. 90 should have been made. In my opinion, having regard to the ruling in Rahimbhoy Habibhoy v. Turner (1) and Ram Kinkar Tewari v. Sthiti Ram Panja (2) this contention raised on behalf of the appellant must fail. In those circumstances the order in so far as it was based upon O. 21, R. 92, is confirmed.

    2. In her petition the applicant also claimed that the judgment creditor's application for leave to issue execution was barred by limitation.

    3. It was alleged by the applicant that the application for leave to issue execution was made long after the decree in the suit had become obsolete by the lapse of time. The learned Subordinate Judge appears to have thought that this allegation on the part of the petitioner amounted to an allegation that the claim upon which the decree was passed was barred by limitation, and he stated that in execution proceedings he could not go into that matter. Of course in so holding he was taking the right view. But that was not the allegation that was made; which was that the application for leave to execute the decree was made so long after the decree had been passed that it was barred by limitation. In the memorandum of appeal to the learned District Judge the applicant based her second contention both upon the general ground that the application for leave to issue execution had been made long after the execution had become barred, and also upon the more narrow ground that the application for execution was not made within a year from the date of the decree nor within a year from the date of the last order against the party (that is the applicant) against whom execution was applied for, and inasmuch as no notice was served upon the applicant as required by O. 21, R. 22, the application for execution was void and of no effect. The learned District Judge without coming to a definite conclusion upon the wider ground upon which it was contended that the application for execution was barred, held that the execution was illegal upon the narrower ground upon which the applicant relied. In my opinion, in so holding the learned Additional District Judge rightly appraised the legal position of the parties. The decree was passed on the 25th February 1916 and an application for leave to issue execution was dismissed for default on the 26th November 1923. The application for leave to issue execution upon which the present proceedings are founded was filed on the 10th November 1924. Therefore unless the decree-holder could satisfy the Court that within a year prior to 10th November 1924 an order had been made against the party against whom erection was applied for under O. 21, R. 22 the application for execution was barred by limitation. Mr. Roy Chowdhury referred to three orders one of which was made on the 26th November 1923, and was to the following effect:

    Notice returned after service. Decree-holder takes no further steps. So the case is dismissed.

    4. The learned advocate contended that order was an order against the applicant under O. 21, R. 22. All I need say in order to refute that contention is to set out the order itself. It cannot reasonably be suggested that the statement Notice returned after service is an order against anybody. It is even more unreasonable to suggest that the words decree-holder takes no further steps. So the case is dismissed are an order against the judgment-debtor within the meaning of O. 21, R. 22.

    5. Two later orders were referred to. But these orders which relate solely to an application for review of an order dismissing the execution case did not purport in any sense to be orders directed against the judgment-debtor or the applicant. What is the effect of process in execution being issued without the notice which must be served under O. 21, R. 22? Before the passing of the Code of Civil Procedure in 1908, it had been held by the Privy Council that the effect of issuing processes without complying with the provisions of O. 21, R. 22 was that the execution proceedings were void. The decision in Raghunath Das v. Sunder Das Khetri (3) was according to reason and good sense, if I may be permitted to say so, and that decision was that after a year had elapsed from the date when the decree had been passed it was only fair to the judgment-debtor chat he should be given notice of the application for leave to execute a decree in order that he might have an opportunity of showing cause why the process should not be issued against him; otherwise it might happen that a dishonest decree-holder would be able to snap an order granting leave to execute the decree from the Court and attach the debtor's property without the debtor having an opportunity of questioning the regularity or the fairness of the execution. In 1908, sub-R. (2), R. 22 was added, and it was strenuously contended by Mr. Roy Chowdhury that the effect of that proviso was fundamentally to after the whole complexion of O. 21, R. 22, because as he urged, if once discretion is given to the Court to issue or not to issue execution the failure to comply with the machinery of sub-R. (2) is a mere irregularity. Is that a sound argument? In my opinion, a perusal of sub-R. (2) shows that the intention of the legislature was to maintain the necessity of a notice under sub-R. (1) and that the legal position of the parties concerned should remain unchanged except in cases where the terms of sub-R. (2) are complied with. The object of passing sub-R. (2) apparently was that there might be rare eases where insistence upon a strict compliance with sub-R. (1) might work hardship. It might be imperative in order that justice should be done that execution should be levied forthwith. It would not be difficult to enumerate instances in which the necessity for immediate execution would arise in order that justice should be done. It was to meet such exceptional cases that the legislature passed sub-R. (2). But, in my opinion, it was not intended by enacting sub-R. (2) that the mandatory nature of the provisions of sub-R. (1) should be abrogated, and as we read the amended rule the legislature intended that the status quo ante of sub-R. (1) should be maintained except under special circumstances in which for reasons to be recorded the Court should think in order that justice should be done that it ought to issue execution without notice under sub-R. (2). That, in my opinion, is the true construction of R. 22 apart from authority. But this construction is in consonance with the interpretation of R. 22 as amended by the Calcutta High Court in Syam Mandal v. Sati Nath Banerjee (4) and a Full Bench of the Madras High Court in Rajagopala Aiyar v. Ramanujachariar (5).

    6. The result is that the execution proceedings founded upon the application of the 10th November 1924, are void. The sale took place on the 13th July 1925, and the petition upon which the order under review was found was filed on the 4th December 1925. The learned advocate for the appellant strenuously urged that the petition was out of time because it was an application to set aside a sale under S. 47 of the Code, and, therefore, must be brought within thirty days of the sale under Article 166, Limitation Act. The fallacy underlying that contention, I think, is that although it is an application under S. 47 and, therefore, under the Code it is not an application to set aside a sale as is the other branch of the application under O. 21, R. 90. For the sale being void need not have been set aside at all, and the order as passed was in substance merely a declaration that the sale was null and of no effect. For an application of that nature there is no special provision among the articles in Sch. 1, Limitation Act. It needs must come under the residuary Article 181, and if Article 181 is applicable the present application was within time. That appears to me to be clear on principle and it is also concluded by authority. See Ram Kinkar Tewari v. Sthiti Ram Panja and Rajagopala Aiyar v. Ramanujachariar .

    7. The result is that the order appealed from is varied by striking out the words “on the above consideration.” In other respects the appeal is dismissed with costs the hearing fee being assessed at two gold mohurs.

    8. This order is passed without prejudice to any right which the parties may possess inter se in respect of the premises that are the subject-matter of the present proceedings.

    Graham, J.:— I agree.

    9. Order accordingly.

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    Monmatha Nath Ghose ... v. Mt. Luchmi Debi And ...
    (Jun 14, 1927)