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  • section 167 of the Bengal Tenancy Act
  • section 167 Bengal Tenancy Act
  • Order XXI, rule 90,
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  • section 167 of the Bengal Tenancy Act
  • section 167 Bengal Tenancy Act
  • Order XXI, rule 90,
Smart Summary

Structured Summary of the Opinion

Factual and Procedural Background

This matter arises from a suit instituted on 14 November 1927 to enforce a simple mortgage executed on 17 June 1921 by defendant no. 1 in favour of the plaintiffs for Rs. 1,000 (due Kartick 1329, corresponding to 15 November 1921). The mortgaged land comprised 59 bighas and 5 cottahs from the occupancy holding of defendant no. 1. On 17 April 1923 the occupancy holding was sold in execution of a rent decree and purchased by the appellant (defendant no. 3). After the present suit was begun, defendant no. 3 proceeded under section 167 of the Bengal Tenancy Act to annul the plaintiffs' encumbrances and contested the suit insofar as obtaining a mortgage decree was concerned. The mortgagor (principal defendant) did not appear in the suit or in this appeal.

The lower Court had to decide two questions: (1) whether defendant no. 3's application to the Collector under section 167 was made within one year of his coming to know of the encumbrances, and (2) whether the notices issued under section 167 were properly served on the plaintiffs. The lower Court answered both questions against defendant no. 3 and entered a decree for sale of the mortgaged property. Defendant no. 3 appealed.

Legal Issues Presented

  1. Whether defendant no. 3 had acquired knowledge of the mortgage (encumbrance) at the time of the execution sale or within one year thereafter for the purposes of invoking section 167 Bengal Tenancy Act.
  2. Whether notices issued under section 167 of the Bengal Tenancy Act were properly served upon the plaintiffs (i.e., whether the Collector's certification of service in the order-sheet afforded prima facie evidence of proper service, and who bears the onus to prove non-service).
  3. Procedural consequence: whether, in view of the above findings, the decree for sale should stand or be set aside and what relief remains against other defendants (nos. 1 and 2).

Arguments of the Parties

Appellant (Defendant no. 3) — as advanced by Mr. Manuk

  • The notices issued under section 167 were properly served on the plaintiffs.
  • The lower Court applied an incorrect view of the onus of proof regarding service, and erred in its assessment of the legal effect of the Collector's order-sheet certificate as well as the sufficiency of substituted service.
  • It was not proved that defendant no. 3 came to know of the encumbrances prior to the date of knowledge alleged by him (i.e., he did not have earlier knowledge that would make his section 167 application time-barred).

Plaintiffs (respondents)

  • One plaintiff witness (Puran Lal Dutt) asserted that defendant no. 3 informed bidders at the sale that the property was encumbered and that this affected bids — implying defendant no. 3 knew of the mortgage at the time of sale.
  • It was contended that defendant no. 3 must have learned of the mortgage soon after the sale because the mortgagor applied under Order XXI, rule 90 to set aside the sale and issued a summons referring to a "rehan bond executed by Biseswar Chaudhury and others", which the plaintiffs say would have put defendant no. 3 on notice.
  • Regarding service, plaintiffs relied on a decision (Hitnarayan Singh v. Rambarai Rai) interpreted to mean that an entry in the Collector's order-sheet stating that notice has been served is only the Collector's opinion and is not conclusive proof of service for the Civil Court.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Hitnarayan Singh v. Rambarai Rai Holds that an order-sheet entry of the Collector recording that notice has been served is merely the Collector's opinion and not binding on the Civil Court. Cited by respondents to challenge the evidentiary weight of the Collector's certificate. The Court observed that this view is stated on wide terms in that case but is contrary to the weight of other decisions of the Court and thus did not adopt Hitnarayan Singh as controlling.
Kuldip Narain Tewari v. Ram Lal Mandal Holds that once notice under section 167 has been issued and the Collector certifies service, the onus is upon the person questioning validity to establish that the notice was not served in accordance with law. Relied upon by the Court as part of a line of decisions establishing that the Collector's certificate is prima facie evidence of service and that the challenger bears the burden to prove non-service.
Nandkishore Chowdhury v. Sir Rameshwar Singh Bahadur Establishes that the onus is upon the person questioning the validity of a notice under section 167 to show it was not served in accordance with law. Relied upon as foundational authority supporting the proposition that the Collector's certificate is prima facie evidence and that challengers must prove non-service.
Ram Protap Marwari v. Jhoomak Jha Decision cited as supporting authority for the weight given to Collector's certification of service in section 167 proceedings. Used by the Court to show consistent judicial support (by Roe and Jwala Prasad, JJ) for treating the Collector's certificate as prima facie evidence.
Dhunmun Singh v. Lachmilal One of the previous decisions of the Court forming part of the line of authorities on onus of proof regarding service after Collector's certification. Referred to by Scroope, J. to illustrate that earlier decisions support placing the onus on the party alleging non-service.

Court's Reasoning and Analysis

The Court proceeded in two main analytical strands: (A) whether defendant no. 3 had knowledge of the mortgage within the time that would defeat his section 167 application, and (B) whether notices under section 167 were properly served.

(A) Knowledge of the mortgage

  • The plaintiffs' primary assertion that defendant no. 3 knew of the mortgage at the sale relied on the testimony of Puran Lal Dutt (a bidder) who claimed defendant no. 3 told bidders the property was encumbered and that this affected bidding. The Court rejected this testimony as unreliable and "got up" because the bid-sheet (Exhibit 2) showed that Puran Lal Dutt in fact bid up to Rs. 1,025 and the property was knocked down at Rs. 1,041 to defendant no. 3 — undermining the claim that Puran refrained from bidding for that reason.
  • The plaintiffs' alternate contention was that defendant no. 3 learned of the mortgage soon after the sale because the mortgagor filed an application under Order XXI, rule 90 to set aside the sale and had issued a summons referring to a "rehan bond executed by Biseswar Chaudhury and others." The Court examined the execution case record (Exhibit 4) and found that the application was dismissed for non-prosecution, no rehan deed was produced, the plaintiff did not appear in response to the summons, and there was no evidence that defendant no. 3 actually learned the contents of the summons. Further, the description in the summons did not identify the mortgaged property or the mortgagee, so it would not have put a reader on notice that it related to the bond in suit.
  • Conclusion on knowledge: The Court held it was not proved that defendant no. 3 came to know of the mortgage prior to the date of knowledge alleged by him; therefore the timing objection to his section 167 application failed.

(B) Service of notices under section 167

  • The Court reviewed the facts: notices were taken to the plaintiffs twice (3 January 1928 and 24 January 1928) but plaintiffs were not found and substituted services were recorded; a subsequent registered post notice was returned unserved but the postal peon (Prayagdat Missir, witness no. 2) testified that he took the notice to the plaintiffs and they refused to accept it.
  • The Court accepted the peon's evidence as credible and although a registered-post letter is not itself the legally prescribed notice, the postal delivery and refusal tended to show that the plaintiffs were avoiding service.
  • Plaintiffs claimed that one plaintiff (Nandkishore Lal) was ill at Bhagalpur and that no attempt was made to serve him there. The Court observed contradictory testimony from plaintiffs' own witnesses regarding whether Nandkishore was ill at home or at Bhagalpur and found the contradictions made the plaintiffs' account implausible.
  • Procedurally, the Collector had directed re-issue of notices after substituted service, and there was an entry in the Collector's order-sheet indicating satisfaction as to proper service. The Court considered the authorities on the weight to be attached to such an entry: while Hitnarayan Singh v. Rambarai Rai suggests the Collector's order-sheet is only the Collector's opinion and not binding, other decisions of the Court (including Kuldip Narain Tewari and Nandkishore Chowdhury) support treating the Collector's certification as prima facie evidence, placing the onus on the person alleging non-service to prove it.
  • The Court concluded that the weight of the Division Bench decisions of the Court favours treating the Collector's certificate as prima facie evidence of service (not conclusive), and that here there was no sufficient evidence to rebut that presumption. On the facts, the Court was satisfied that the notices were properly served (and that the plaintiffs had been avoiding service).

Application of legal principles to relief: Because defendant no. 3's section 167 application was not time-barred by prior knowledge and the notices were properly served, defendant no. 3 was entitled to the relief of annulling the plaintiffs' encumbrance insofar as it affected his title acquired in execution. The Court therefore allowed the appeal from the decree for sale entered by the lower Court, set that decree aside and dismissed the suit as against defendant no. 3.

Holding and Implications

Core Ruling: APPEAL ALLOWED; the decree of the lower Court for the sale of the mortgaged properties is set aside and the plaintiffs' suit as against defendant no. 3 is dismissed.

Direct consequences and consequential orders given in the opinion:

  • The suit as against defendant no. 3 is dismissed (without costs as to defendant no. 3, but defendant no. 3 will bear his own costs throughout).
  • The plaintiffs are entitled to a simple money decree against defendants nos. 1 and 2. The Court found the mortgage bond to contain a clear promise of payment, the bond was registered, and the suit was filed within six years of the due date; accordingly there will be a simple money decree with costs against defendants 1 and 2.
  • Interest: the decree against defendants 1 and 2 will carry interest at the rate ordered by the lower Court until the institution of the suit, and thereafter at 6% per annum.
  • The plaintiffs' cross-objection as to the amount of interest was dismissed (the Court saw no reason to interfere with the lower Court's discretion on that point).
  • The plaintiffs will bear their own costs of this appeal; the suit against defendant no. 3 is dismissed but without costs.

Broader implications: The Court applied existing authorities on the evidentiary weight of a Collector's certificate in section 167 proceedings and emphasized that such a certificate is prima facie (but not conclusive) evidence of service; challengers bear the onus to prove non-service. The opinion does not purport to create a new precedent beyond applying and preferring the line of decisions cited.

Disposition

Appeal allowed; cross-objection dismissed. (As recorded in the Court's concluding lines: "Appeal allowed." and "Cross-objection dismissed.")

    Parmeshwar Sahu v. Nandkishore Lal

    Khwaja Muhammad Noor, J.:— This appeal arises out of a suit instituted on 14th November, 1927, to enforce a simple mortgage executed on 17th June, 1921, by defendant no. 1 in favour of the plaintiff respondents for a sum of Rs. 1,000, the due date being Kartick, 1329, corresponding to 15th November, 1921. The mortgaged property is 59 bighas asid 5 cottahs of land forming part of the occupancy holding of defendant first party. It appears that on 17th April, 1923, subsequent to this mortgage, the occupancy holding was sold in execution of a rent decree of the landlord and purchased by the appellant, the defendant no. 3. After the institution of the present suit that defendant (defendant 2nd party) proceeded under section 167 of the Bengal Tenancy Act to annul the encumbrances of the plaintiffs and contested the suit so far as the passing of the mortgage decree was concerned. The mortgagor-defendant did not enter appearance either in the suit or in the appeal before us. The question to be decided by the Court below was (1) whether the application before the Collector filed by defendant no. 3 for the issue of notices under section 167 was within one year of his having come to know of the encumbrances and (2) whether the said notices were properly served upon the plaintiffs. The lower Court has decided both these points against the defendant no. 3 and has passed a decree for sale in the usual terms. He has held that the defendant no. 3 came to know of the mortgage at the time of the sale or soon after it and that the notices were not properly served: The defendant no. 3 has appealed.

    On his behalf it has been contended by Mr. Manuk that the notices were properly served and the view of the law taken by the Court below about the onus of proof, effect of the order of Collector and the sufficiency of service is wrong and that it has not been proved that defendant no. 3 came to know of the encumbrances prior to the date of knowledge alleged by him. In my opinion these contentions are well founded and must prevail.

    I take up the question of knowledge. The plaintiffs' first contention is that defendant no. 3 came to know of the mortgage at the time of the sale itself. The only evidence on this point is that of Puran Lal Dutt, witness no. 3 for the plaintiffs. This witness says that he was one of the bidders at the sale and having been informed by defendant, no. 3 that the property was encumbered he did not bid high. This story is obviously unreliable. In a sale held in execution of a rent decree the question of encumbrances is not a factor which a bidder takes into, his consideration. A holding is sold with a right to the purchaser to annul the encumbrances by taking steps under section 167 of the Bengal Tenancy Act. Then looking at the bid-sheet (Exhibit 2) it appears that this witness did bid up to Rs. 1,025. The bids were as follows:—

    Rs. Puran Lal Dutt … … … 700 Decree-holder … … … … 800 Defendant no. 3 … … … 1,000 Decree-holder … … … … 1,020 Puran Lal Dutt … … … 1,025 Defendant no. 3 … … … 1,041

    From this it is clear that Puran Lal Dutt did bid up to Rs. 1,025 and the property was knocked down to the defendant no. 3 at Rs. 1,041. Therefore, the story that he refrained from bidding; high on the ground of there being an encumbrance on the property cannot be believed. His bid was almost as high as that of the defendant no. 3. Then again it is strange that having seen the defendant no. 3 outbidding him he still acted upon his information. The story is obviously a got up one and I do not believe it.

    The next contention of the plaintiffs is that at any rate the defendant no. 3 came to know of the mortgage soon after the sale. It appears that the principal defendant, the mortgagor, applied to set aside the sale under Order XXI, rule 90, and in that proceeding summoned the plaintiff as a witness to appear and produce “a rehan bond executed; by Biseswar Chaudhury and others”. It is urged that the summons gave the defendant no. 3 information of the mortgage. I am unable to uphold this contention. It appears from the order-sheet of the execution case (Exhibit 4) that the application for setting aside the sale was dismissed for non-prosecution. There is nothing to show that any rehan deed was produced before the Court or that the plaintiff appeared in response to the summons. Rather, it is clear that on the date fixed the objector's (principal defendant in this case) witnesses were not present. There is no evidence that defendant no. 3 came to know of the contents of the summons. Apart from this the words “rehan bond executed by Biseswar Chaudhury and others” in the summons were not enough to give any one any idea that it referred to the mortgage bond in suit. There is no mention of the property mortgaged nor of the person in whose favour the mortgage was executed. I, therefore, hold that it has not been proved that the defendant no. 3 came to know of the mortgage prior to the date of knowledge alleged by him.

    Coming to the question of the service of notices upon the plaintiffs, it appears that the notices were taken to them on two occasions, once on the 3rd January, 1928, and then again on the 24th January, 1928. On both the occasions the plaintiffs were not found and there were, what is called, substituted services. Afterwards defendant no. 3 sent a notice by registered post which was returned unserved and the postal peon, Prayagdat Missir (witness no. 2) swears that he took the notice to the plaintiffs and they refused to take it. I see no reason to disbelieve this witness. Though this postal notice is not a legal notice, it proves that the plaintiffs were avoiding the services of the notices on them. The story put forward by the plaintiff is that Nandkishore Lal, one of the plaintiffs, had been during this period ill at Bhagalpur and it is argued that no step was taken to have the notice served upon him there; but on this point the evidence of the witnesses is contradictory. Plaintiffs' witness no. 2 (Sundar Lal) deposed that Nandkishore the plaintiff was ill at home while the plaintiffs' witness no. 4 (Mukti Narain Prasad) deposed as follows:

    “My uncle Nandkishore is ill at Bhagalpur. He is there from December last.”

    It is impossible to believe these contradictory statements of the plaintiffs' witnesses. It is clear from the record that defendant no. 3 was anxious to have the notice served upon the plaintiffs he took all possible steps which he could. When on the first, occasion the notice was returned after a substituted service the Collector directed their re-issue and to have them served again. Defendant no. 3 took steps to do so and to be on the safe side sent a notice by post and this also the plaintiffs refused to accept. The peon who went to serve the first notice has been examined but the one who took out the notices on the second occasion was not available. The Collector was, however, satisfied as to the proper serving of this notice and there is a note to this effect in his order-sheet.

    The learned Advocate for the respondents has, however, relied upon the case of Hitnarayan Singh v. Rambarai Rai and argued that an entry in an order sheet of the Collector in a proceeding under section 167 of the Bengal Tenancy Act to the effect that notice has been served is no proof of the service of the notice. In this case referring to the order, sheet of the Collector, Das, J. observed as follows:— “The order-sheet in this case merely records an opinion of the Collector that the notices were served but the opinion of the Collector is in no way binding upon the Civil Court and the Civil Court has a right to determine for itself the question whether the notices were in fact served or not.” No doubt the observation is on somewhat wide terms; but this view of the law is contrary to what has been laid down in various decisions of the Division Bench of this Court. In Kuldip Narain Tewari v. Ram Lal Mandal, Das, J. himself, relying upon the decision of Nandkishore Chowdhury v. Sir Rameshwar Singh Bahadur, held that once the notice was issued, the onus is upon the person questioning the validity of the notice to establish that the notice under section 167 was not served in accordance with law, and held that it was for the plaintiff to establish that notice was not served upon him within the period of limitation. It will thus appear that one of the learned Judges who was a party to the decision of Hitnarayan Singh v. Rambarai Rai held otherwise in an earlier case and Kulwant Sahay, J. agreed with this view which is supported by the decision of Sir Dawson Miller, C.J and Mullick, J. in the case of Nandkishore Chowdhury v. Sir Rameshwar Singh Bahadur referred to above and the case of Ram Protap Marwari v. Jhoomak Jha decided by Roe and Jwala Prasad, JJ. Mr. Shambhu Saran has relied upon some Calcutta cases they have been referred to in Hitnarayan Singh's case. I do not, however, propose to discuss them in detail. In my opinion the weight of the judicial decisions of this Court is in favour of the view that a certificate in the order-sheet of the Collector that the notice has properly been served is prima facie evidence that such a notice has been served but it is not conclusive. It is open to the other party to challenge it and show that the notices were not served in time; but, in the absence of any evidence to the contrary, such a service must be presumed. As I have said, the case of Hitnarayan Singh v. Rambarai Rai seems to lay down otherwise but the weight of authority is against this view.

    I am satisfied on the evidence adduced that the notices were properly served. Under the rules of the Government of Bengal the notice under section 167 Bengal Tenancy Act is to be served in a manner provided for the service of summons under the Civil Procedure Code. Mr. Sambhu Saran has relied upon a number of decisions as to the sufficiency or otherwise of a substituted service. I do not propose to deal with them. I am satisfied that the plaintiffs were avoiding the service of notices upon them.

    The result is that the appeal must be allowed; the decree of the lower Court for the sale of the mortgaged properties should be set aside and the plaintiffs' suit as against defendant no. 3 must be dismissed; but under the circumstances the said defendant should bear his own cost throughout. Plaintiffs are, however, entitled to a simple money decree against defendants nos. 1 and 2. Simple mortgage prima facie carries with it a stipulation to pay the debt. In the bond in suit there is a clear promise of payment. The bond is a registered one and the suit is within six years of the due date. There is a cross-objection on behalf of the plaintiffs as to the amount of interest. I see no reason to interfere with the discretion exercised by the lower Court and would dismiss it. There will, therefore, be a simple money decree in favour of the plaintiffs against defendants 1 and 2 with costs and interest at the rate ordered by the Court below till the institution of the suit and thereafter at 6 per cent, per annum. The plaintiffs will bear their own costs of this appeal. The suit as against defendant no. 3 is dismissed but without costs.

    Scroope, J.:— I agree. The weight of judicial decisions in this Court is in favour of the view that once there has been a proceeding before a Collector under section 167 of the Bengal Tenancy Act with a view to annulling an encumbrance and the Collector had certified the due services of notice in such a proceeding, the onus of establishing non-service is on the person who alleges it: I refer to the decision in Kuldip Narain Tewari v. Ram Lal Mandal which followed two previous decisions of this Court, Dhunmun Singh v. Lachmilal and Nandkishore Chowdhury v. Sir Rameshwar Singh Bahadur. It is difficult to reconcile the decision in Hitnarayan Singh v. Rambarai Rai relied on for the respondents in which it was held in effect that the Collector's certificate in such a proceeding was merely a record of his opinion and left the matter completely open for the Civil Court, with the decision in Kuldip Narain Tewari v. Ram Lal Mandal to which one of the learned Judges who decided Hitnarayan Singh v. Rambarai Rai was a party. In Kuldip Narayan Singh v. Ram Lal Mandal that learned Judge in dealing with this question observed, “The decisions of this Court are perfectly clear. It was held by this Court in Nandkishore Chowdhury v. Sir Rameshwar Singh Bahadur that the onus is upon the person questioning the validity of notice to establish that the notice under section 167 was not served in accordance with law. The only dissenting decision of this Court is the subsequent decision of the same learned Judge in the later Patna case.

    Appeal allowed.
    Cross-objection dismissed.

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    Comments

    Parmeshwar Sahu v. Nandkishore Lal
    (May 4, 1931)