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Dildar Ali Khan v. Bhawani Sahai Singh
Structured Summary of the Opinion (Partition — Costs)
Factual and Procedural Background
This appeal is brought by the plaintiff in a suit for partition of joint property. The only part of the decree challenged on appeal concerns the allocation of costs. The plaintiff and the defendants are joint owners of the zemindari that was partitioned. Defendants 1 to 9 hold a proprietary share in the estate and have also taken mokarari (a tenancy/lease) of a fraction of the plaintiff's proprietary share; thus they occupy a two-fold relationship to the property (proprietors of one share and lessees of another).
The Court below effected a partition by allotting to defendants 1 to 9 two distinct parcels (one representing their proprietary share and another representing the share they hold under the mokarari), and allotted to the plaintiff a parcel representing his proprietary share reduced by the portion granted in mokarari. The Subordinate Judge ordered that each party pay his own costs up to the preliminary decree and that the costs of the partition be borne by the parties in proportion to their respective shares. The plaintiff appeals only against the costs portion of that decree.
A preliminary objection by the respondents — that the appeal should not be entertained because costs were in the lower Court's discretion — was argued and overruled by the appellate Court on the ground that the case raised an important question of principle.
Legal Issues Presented
- Whether the preliminary objection that the question of costs was purely discretionary and therefore not appealable is maintainable.
- Whether the costs of partition attributable to the share held in mokarari (lessee's share) should be borne by the lessees (defendants 1–9) alone, by the lessor (plaintiff), or by both in proportion to their respective interests.
- Whether the costs of the suit up to the stage of the preliminary decree should be borne individually by each party (as ordered by the Subordinate Judge) or should be rateably distributed among parties.
Arguments of the Parties
Respondents' Arguments
- The respondents raised a preliminary objection that the appeal should not be entertained because allocation of costs was a matter within the discretion of the lower Court.
Appellant's Arguments
- The appellant (plaintiff) contended that the costs of the partition in respect of the share held in mokarari by defendants 1–9 should be paid by those defendants (the lessees).
- Second, the appellant contended that the costs of the suit (presumably generally) ought not to be borne by the parties themselves up to the preliminary decree but should be rateably distributed.
- In support of the first contention the appellant relied on the case of Khetterpal Sritirutno v. Khelal Kristo Bhuttacharjee (1894) I.L.R. 21 Calc. 904, which was cited as authority that where a mortgagee of a share takes the benefit of a partition and accepts it as part of his title, he is liable for a proportionate share of partition costs even if not formally a party.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court in this Opinion |
|---|---|---|
| Bunwari Ball v. Chowdhry Drup Nath Singh (1886) I.L.R. 12 Calc. 179 | Authority that an appeal lies on a question of costs when a matter of principle is involved. | Used to overrule the respondents' preliminary objection and to hold that the appeal is maintainable because an important question of principle was raised. |
| Mothingan v. Mozari Sajad (1885) I.L.R. 12 Calc. 271 | Same proposition: appeals on questions of costs are permissible where a matter of principle is involved. | Also cited to support the conclusion that the preliminary objection should be overruled and the appeal entertained. |
| Khetterpal Sritirutno v. Khelal Kristo Bhuttacharjee (1894) I.L.R. 21 Calc. 904 | Holds that a mortgagee who takes the benefit of a partition and accepts it as part of his title is liable for a proportionate share of partition costs even if not formally a party. | The Court considered this authority but distinguished mortgagee cases from lessee cases; the analogy was not accepted as directly applicable, although the appellant's contention was held partially well-founded on other general principles. |
| Agar v. Fairfax (1811) 17 Ves. 533; Elton v. Elton (1860) 27 Beav. 632; M'Bride v. Malcomson (1840) 2 Dr. & Wal. 700; Balfe v. Redington (1852) 2 Ir. Ch. Rep. 324; Leslie v. Dunganon (1860) 12 Ir. Ch. Rep. 205 | Chancery authorities establishing that (under the pre-Partition Act practice) parties bear their own costs up to issuing of commission, and subsequent costs of issuing/executing/confirming commissions are borne proportionately to value of interests. | These cases were cited as background to show the historical Chancery rule that influenced partition cost principles adopted by the Court. |
| Darnell's Chancery Practice vol. II; Seton on Judgments vol. II | Textual/treatise support for the Chancery rules on partition costs. | Referenced as additional authority substantiating the pre-Partition Act practice regarding cost allocation in partitions. |
| Shama Soonduree v. Jardine Skinner & Co. (1869) 12 W.R. 160 | Stated rule that plaintiff commences partition for his own advantage; parties bear their own costs up to preliminary decree; costs of partition divided in proportion to shares. | The Court relied on this decision to support the proposition that costs up to the preliminary decree are ordinarily borne by the parties themselves (thus rejecting the appellant's second contention). |
| Cornish v. Gest (1788) 2 Cox 27 | Was earlier authority for proposition that when a joint owner leases his undivided share, the lessee is a necessary party to partition and his costs must be borne by his lessor. | The Court reviewed this authority but noted it had been questioned and dissented from in later decisions; the reasoning in Cornish was treated as doubtful and not followed as an absolute rule. |
| Herbert v. Eyre (1838) 2 Jones (Ir.) 803 | Expressed skepticism about Cornish v. Gest and suggested that a lessee accepts a lease with knowledge of partition risk; thus the lessee's presence in a partition suit is due to his voluntary acceptance. | Referenced to support the view that a lessee is not merely dragged into litigation by the lessor and that the lessee's own act (acceptance of lease) matters in deciding liabilities for costs. |
| Herbert v. Hedges (1844) 10 Ir. Eq. Rep. 479 | Analyzed liability of lessees in partition suits; held that (a) parties bear their own costs up to the first hearing; (b) partition costs are borne proportionately by parties according to interests; (c) lessees who take no part and obtain no separate allotment need not contribute; (d) lessees who are substantial parties and obtain allotments must contribute rateably. | The Court relied on this case as the principal authority for distinguishing when lessees should contribute to partition costs and adopted its reasoning as applicable to the present facts. |
| Porter v. Lopes (1877) 7 Ch. D. 358, 367 | Principle that a party who causes frivolous opposition and thereby generates unnecessary costs may be made liable for those costs. | Cited by the Court to note an exception to the ordinary rule that parties bear their own costs up to the preliminary decree (but the Court found no suggestion of frivolous contest in the present case). |
Court's Reasoning and Analysis
The Court's analysis proceeded in stages:
- Preliminary objection: The respondents argued that costs were discretionary in the lower Court and thus not appealable. The Court rejected that objection, relying on authorities that an appeal lies on a question of costs when an important question of principle is involved (citing Bunwari Ball and Mothingan). Because a principle was raised, the appeal was maintainable.
- Distinguishing authorities and setting the legal framework: The Court surveyed historical Chancery practice (pre-Partition Act of 1868) and authorities that generally established two propositions: (a) parties bear their own costs up to the preliminary hearing/first hearing (preliminary decree), and (b) costs of partition proper are borne proportionately according to the value of parties' interests. The Court also relied on Shama Soonduree as a local precedent adopting these principles.
- Analogy to mortgagee cases: The appellant relied upon Khetterpal (a mortgagee case) to argue lessees should be liable as mortgagees are. The Court concluded that the analogy from mortgagee to lessee is not necessarily apt and thus did not adopt the mortgagee rule mechanically for lessees.
- Examination of lessee liability: The Court carefully reviewed Cornish v. Gest (which held lessee's costs should be borne by lessor) and later authorities (including Herbert v. Eyre and the detailed consideration in Herbert v. Hedges). The Court accepted the principle distilled from Herbert v. Hedges: the liability of lessees to contribute to partition costs turns on whether they were substantial parties to the suit and whether they claimed or obtained benefit from a separate allotment. A lessee who took no part in proceedings and received no separate allotment cannot be called upon to contribute; a lessee who participates and receives an allotment must contribute rateably according to interest.
- Application to present facts: In the present case defendants 1–9 were made parties both as proprietors and as lessees, and the allotments in the partition gave them separate possession of parcels representing both their proprietary and tenancy interests. Consequently, they had taken a benefit under the decree as lessees and could not shift the burden of partition costs proportionate to the mokarari share onto their landlord (the plaintiff).
- Apportionment between lessor and lessees: The Court rejected the proposition that the lessees alone should bear the entire costs attributable to the mokarari share. Instead, the Court held that those partition costs should be borne by the lessor and lessees in proportion to their respective interests in the share covered by the mokarari. The Court used figures from the plaint (uncontroverted in the lower Court) to compute the proportion: the mokarari-covered share valued at approximately Rs. 10,000; annual rent Rs. 101; the landlord's interest approximated as Rs. 2,000 (about 20 years' purchase), yielding a landlord interest equal to one-fourth of the tenant's interest. Accordingly, costs in respect of that share should be distributed in that ratio.
- Specific costs computation and decree variation: The decree showed that the costs proportionate to the mokarari share amounted to Rs. 501-9-9. The Court indicated the decree must be varied in the manner described (i.e., to reflect the apportionment determined). The opinion also states that these costs "must be paid by defendants 1 to 9" in the concluding application of the figures, and directs variation of the Subordinate Judge's decree accordingly.
- On the appellant's second contention (that costs up to the preliminary decree should be rateably distributed): the Court found no substance in the contention. It reiterated the ordinary rule (cited in Shama Soonduree) that parties bear their own costs up to the preliminary decree, subject to the exception where a frivolous contest causes unnecessary costs (citing Porter v. Lopes), a circumstance not alleged here.
Holding and Implications
Holding: The appeal is ALLOWED and the decree of the Subordinate Judge is varied as indicated in the opinion.
More specifically, the Court held:
- The preliminary objection was overruled and the appeal was maintainable because an important question of principle was raised.
- Defendants 1–9, who were parties both as proprietors and as lessees and who obtained separate allotments corresponding to their tenancy interests, cannot throw upon their landlord the burden of partition costs proportionate to the mokarari share.
- The partition costs attributable to the mokarari share should be borne by the lessor and the lessees in proportion to their respective interests in that mokarari-covered share. Using the plaint valuation (uncontested below), the landlord's interest was roughly one-fourth of the tenant's interest; costs are to be distributed in that proportion. The decree showed the costs proportionate to this share as Rs. 501-9-9 and the decree is to be varied accordingly.
- The appellant is entitled to his costs in this Court.
Practical consequences for the parties:
- The Subordinate Judge's order that each party bear their own costs up to the preliminary decree remains substantially undisturbed (the Court rejected the appellant's contention to alter that rule).
- The allocation of partition costs relating to the mokarari share must be recalculated and distributed between the lessor and lessees in the proportions determined by their respective interests (as calculated by the Court from the plaint numbers), and the decree must be varied to reflect that apportionment.
- The appellant (plaintiff) is to receive his costs of this appeal in the appellate Court.
No broader new legal precedent was announced beyond the application and reaffirmation of existing principles: (a) appeals on costs are maintainable when principle is involved, (b) ordinary rule that parties bear their own costs up to the preliminary decree remains, and (c) lessees who participate and receive allotments must contribute rateably — with apportionment between lessor and lessee based on their respective interests where appropriate.
1. This is an appeal on behalf of the plaintiff in an action for partition of joint property, and the only portion of the decree which is challenged is that which relates to costs. A preliminary objection is taken on behalf of the respondents that the appeal ought not to be entertained, as the question of costs was purely in the discretion of the lower Court. It is well settled, however, that an appeal will lie upon a question of costs when a matter of principle is involved: Bunwari Ball v. Chowdhry Drup Nath Singh (1886) I.L.R. 12 Calc. 179, Mothingan v. Mozari Sajad (1885) I.L.R. 12 Calc. 271; and as an important question of principle is raised before us, the appeal is maintainable. The preliminary objection, therefore, is overruled.
2. The facts, so far as it is necessary to state them, to elucidate the question of principle raised on behalf of the appellant, may be briefly outlined. The plaintiff and the defendants are joint owners of the zemindari which is the subject-matter of partition. Defendants 1 to 9 have a share in the estate as proprietors and they have also taken mokarari of a fraction of the share owned by the plaintiff; these defendants stand, consequently, in a two-fold relation to the property, namely, they are proprietors of a share and are lessees of another share under one of the proprietors. The partition which has been effected by the Court below allots to these defendants two parcels, one corresponding to their share in the proprietary interest, and the other corresponding to their share comprised in their mokarari. The plaintiff, On the Other hand, has been allotted a parcel which represents his share in the proprietary interest reduced by the share of which he has granted a mokarari to defendants 1 to 9. In substance, therefore, the lands which correspond to the entire proprietary share owned by the plaintiff have been sub-divided into two, inasmuch as the lands which represent the share granted in mokarari to defendants 1 to 9 have been carved out and separated. Under these circumstances, the Subordinate Judge directed that each party should pay his own costs up to the stage of the preliminary decree and that the costs of partition should be paid by the parties in proportion to their respective shares in the estate. This order has been assailed on behalf of the plaintiff on two grounds, namely, first, that the costs of the partition in respect of the share held in mokarari by the defendants 1 to 9 should be paid by them, and secondly, that the costs of the suit should not be home by the parties themselves but ought to be rateably distributed.
3. In support of his first contention, reliance was placed by the learned vakil for the appellant upon the case of Khetterpal Sritirutno v. Khelal Kristo Bhuttacharjee (1894) I.L.R. 21 Calc. 904 which is an authority for the proposition that where a mortgagee of a share of joint property takes the benefit of a partition of that property and accepts and approves of it as part of his title, he is liable in respect of a proportionate share of the charge for costs of the partition, even, though, he is not formally a party to the partition suit. In our opinion, the analogy deducible from the case of a mortgagee does not necessarily apply to the case of a lessee; but upon general principles which we shall presently explain, the contention of the appellant appears to us to be partially well founded and must prevail.
4. It is well settled that the ordinary rule of the Court of Chancery before the Partition Act of 1868 was that no costs would be given up to the issuing of the commission, but that the subsequent costs of issuing, executing, and confirming the commission should be borne by the parties in proportion to the value of their interests: Agar v. Fairfax (1811) 17 Ves. 533, Elton v. Elton (1860) 27 Beav. 632, M' Bride v. Malcomson (1840) 2 Dr. & Wal. 700, Balfe v. Redington (1852) 2 Ir. Ch. Rep. 324, Leslie v. Dunganon (1860) 12 Ir. Ch. Rep. 205, Darnell's Chancery Practice vol. II, p. 1119; Seton on Judgments, vol. II, p. 1881. Substantially the same rule was adopted by this Court in Shama Soonduree v. Jardine Skinner & Co. (1869) 12 W.R. 160 in which Mr. Justice Norman stated that as the plaintiff in a partition suit commences it for his own advantage, convenience, and security, and as the defendant as joint owner holds his undivided share always subject to the right of the plaintiff to demand partition, the parties must each bear their own costs of the suit up to the stage of the preliminary decree, and the costs of the partition should be divided between he parties in proportion to their respective shares in the estate. The question now arises whether, when a share is in possession of a lessee from the proprietor, the costs proportionate to that share should be borne by the lessor as the respondents suggest or by the lessee as the appellant contends.
5. The case of Cornish v. Gest (1788) 2 Cox 27 appears to bo an authority for the proposition that when one of several joint owners has made a lease of his undivided share, the lessee is a necessary party to a suit for partition and his costs must be borne by his lessor. The reason, however, which was assigned by Mr. Justice Buller in this case in support of his conclusion, namely, that the lessor is the means of bringing the lessee on the record, has been questioned, and the case itself was dissented from by Baron Pennefather in Herbert v. Eyre (1838) 2 Jones (Ir.) 803, where that learned. Judge pointed out that a lessee who accepts a lease of a share in joint property, does so with full knowledge that the subject-matter is liable to partition, and if he finds himself a defendant in a partition suit, it is by reason of his own voluntary act. The principle applicable to cases of this description,was elaborately-examined in the case of Herbert v. Hedges (1844) 10 Ir. Eq. Rep. 479 which was heard by the Court of Exchequer in Ireland in 1844. In that case, a suit was brought for partition of joint property, and the parties defendants included not only the co-owners in the property, but also lessees under one of the joint owners, one of whom had granted a lease of undivided portions of his undivided share. It was accepted as the settled rule, well-founded in principle and amply supported by authority, that each party must bear his own costs up to the first hearing (which corresponds to the preliminary decree in our system), and that the cost of the partition should be borne by the parties in the proportion of their interests. It was argued on behalf of the lessees upon the authority of Cornish v. Gestt (1788) 2 Cox 27 that they were not only not liable to bear any portion of the cost of the partition, but were actually entitled to get their costs of the suit from their lessor. This extreme contention was overruled and doubts were expressed as to whether Cornish v. Gest (1788) 2 Cox 27 could be defended on principle.
6. As to the liability of the lessees to bear the costs of the partition, it was ruled that if the lessees took no part in the partition proceedings, and neither claimed nor obtained the benefit of a separate allotment, they could not be called upon to contribute to the costs of the partition. Lord Chief Baron Brady pointed out that whether the tenants should be called upon to contribute to the costs of the partition which are to be borne rateably, depends not merely upon the circumstance that they have an interest in the share in the lands, but also upon the consideration whether they are substantial parties to the suit and have taken a benefit under the decree. If they have taken part in the partition, if an allotment of specific shares of the lands has been made to them, they stand in the same position as any other class of persons, interested in the subject-matter of the suit and bound to contribute rateably to the costs, of the partition according to their shares.
7. In the case then before the Court, the tenants took no part in the proceedings and no special allotment was made to suit their convenience, and it was accordingly held that they could not be called upon to bear any proportion of the costs. Baron Pennefather pointed out that a contrary view might result in great hardship to the lessor: for instance, if the lessee has paid a premium and holds under a permanent lease which entitles the lessor to nothing more than a fixed rent, the value of the interest of the lessee may be considerably in excess of that of the landlord, and it is difficult to see why in a case of this description, if the lessee obtains an allotment suited to his convenience, the whole costs should be thrown upon the landlord. The learned Judges further pointed out that a permanent lessee might be regarded as a purchaser and would be entitled to similar privileges and subject to similar liabilities. It cannot be suggested, as appears to have been suggested by Mr. Justice Buller, in Cornish v. Gest (1788) 2 Cox 27, that the lessee has been dragged into the litigation by his lessor. The landlord is seised of an undivided portion, makes a lease and thereby grants to his tenant undivided shares in his undivided portion; the tenant is a party to the instrument, he accepts it and executes a counterpart of it; he is as much a party to the lease as his landlord. The tenant is not brought into the situation of a necessary party by the act of his landlord alone: he has accepted the instrument and his own act concurs with the act of his landlord. He takes the lands and knows what he gets is a portion of an undivided share with all its rights and liabilities and subject to the right of the co-owners of his lessor to institute a suit for partition. If such a suit is instituted, if he is made a defendant as a necessary party, if he takes a part in the proceedings, if an allotment is made for his benefit, the costs must be borne by him rateably with the other parties according to his interest in the premises. These principles appear to us to be consistent with the rule of justice, equity and good conscience and completely cover the present case. Here defendants 1 to 9 have been made parties not only in their character as proprietors but also as lessees, and as we have already explained, the allotments have been so made as to give them separate possession of different parcels representing their proprietary and tenancy interests respectively. Under these circumstances, they cannot justly throw upon their landlord the burden of the costs of the partition proportionate to the share which they hold in mokarari. The question, however, remains whether the whole of the costs proportionate to this share, should be borne by the lessees alone. In our opinion, it ought to be borne by the lessor and the lessees in proportion to their respective interests in the share covered by the mokarari. This proportion is readily determined from the materials on the record. Accepting the valuation made in the plaint, which does not appear to have been challenged in the Court below, the value of the share covered by the mokarari is approximately Rs. 10,000. As Rs.101 is the annual rent payable on the mokarari, the value of the landlords interest may be roughly taken to be Rs. 2,000 which would represent about 20 years purchase. The value of the interest of the landlord therefore is one-fourth of that of the tenant; the costs in respect of the share covered by the mokarari ought to be ratably distributed in this proportion. The decree shows that the costs proportionate to this share amount to Rs. 501-9-9; must be paid by defendants 1 to 9. The decree must be varied according.
8. As regards the second contention of the learned vakil for the appellant, there is no sub stance in it. As we have already indicated, the case of Shama Soonduree v. Jardine, Skinner & Co. (1869) 12 W.R. 160 show that the costs of the suit up to the stage of the preliminary decree should ordinarily be borne by the parties themselves and this is what has been done substantially by the Subordinate Judge; of course, if there had been a frivolous contest, the party, by reason of whose opposition unnecessary costs were incurred, might, as pointed out in Porter v. Lopes (1877) 7 Ch. D. 358, 367, be made liable; it is not suggested, however, that any such thing took place in this case.
9. The result, therefore, is that this appeal must be allowed, and the decree of the Subordinate Judge varied in the manner indicated.
10. The appellant is entitled to his costs in this Court.
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