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Structured Summary of Opinion

Factual and Procedural Background

The plaintiff sued for enforcement of a mortgage bond in his favour. The consideration for the bond comprised the plaintiff's dues on seven promissory notes, about Rs. 8,000 in cash, and four subsequent mortgages effected by deposit of title deeds. The mortgagor was Taraknath Banerji (defendant 1), who held the mortgaged properties under a dar mourasi mokarrari lease in favour of defendants 2 to 6.

Defendants 3 to 6 purchased the properties at a sale held in execution of a decree for arrears of rent against defendant 1. The plaintiff alleged that the purchasers had knowledge and notice of his encumbrances and therefore were bound in law and equity to satisfy his dues; he sought a preliminary decree for sale, reserving liberty to apply for a personal decree for any balance.

Defendant 2 disclaimed interest in the properties. Defendants 3 to 6 pleaded they had no knowledge or notice of the encumbrances prior to the sale, that the sale was an execution of a decree for rent under the Bengal Tenancy Act with power to the purchasers to avoid encumbrances, and that upon receiving notice through the Court in the present suit they proceeded under Section 167 of the Act to annul the encumbrances.

The Subordinate Judge entered a money decree in the plaintiff's favour against defendant 1 and dismissed the suit as against defendants 2 to 6. The plaintiff appealed from that judgment.

Legal Issues Presented

  1. Whether the decree in execution (which led to the sale by defendants 3 to 6) was a "decree for rent" within the meaning of the Bengal Tenancy Act and whether the execution sale had the legal effect of a rent sale under the Act.
  2. Whether the composition of the plaintiffs in the rent suit (including executors and persons acting in personal capacities) affected the rights of the decree-holders as landlords, in light of the grant of probate and principles of executor representation.
  3. Whether, as a matter of law, the decree-holders had ceased to be landlords (or had assigned their interest) so as to prevent the transfer of tenure on execution (relying on authorities such as Forbes v. Maharaj Bahadur Singh).
  4. Whether the sale was subject to the plaintiff's encumbrances (including issues raised by variations in the sale proclamation and apparent inadequacy of price), and whether such irregularities affected the statutory consequences of the sale.
  5. Whether the Collector had jurisdiction to issue notices under Section 167 of the Bengal Tenancy Act (including the validity of a revival after an initial dismissal for delay beyond one year).
  6. Whether knowledge alleged to have been possessed by certain family members of the landlords could be imputed to co-decree-holders or other members of the joint family for the purposes of Section 167 (i.e., whether "notice" for the section could be imputed from another's knowledge or informal intimation).

Arguments of the Parties

Appellant's (Plaintiff's) Arguments

  • The decree in execution was not a decree for rent as contemplated by the Bengal Tenancy Act and the execution sale therefore did not have the effect of a rent sale under the Act.
  • The composition of the plaintiffs in the rent suit (some suing in personal capacities while executors existed or probate issued) meant there was a lack of proper representation for certain shares; reliance was placed on Meyappa Chetty v. Supramanian Chetty.
  • On the grant of probate, the share (ten annas) of the testator vested in the executors, and therefore the decree-holders were not landlords at the relevant time, invoking authority such as Forbes v. Maharaj Bahadur Singh to argue tenure could not pass under execution.
  • The sale should be regarded as held subject to encumbrances (arguing from the low sale price and inconsistencies in proclamations), and thus purchasers were not entitled to annul encumbrances.
  • Defendants 3 to 6 had earlier notice or knowledge of the encumbrance on multiple occasions prior to the Court notices; thus they could not rely on the post-sale notices alone.

Respondents' (Defendants 2–6 and others) Arguments

  • They contended they had no notice or knowledge of the plaintiff's encumbrances prior to the sale.
  • The sale was made in execution of a decree for rent under the Bengal Tenancy Act, and purchasers had the statutory power to avoid encumbrances (including annulling them under S.167).
  • They asserted that they first received notice of the encumbrances only when served through the Court in the present suit (dates given in their affidavits), and they acted under Section 167 upon receiving such notice.
  • Several defendants also denied any interest (defendant 2 disclaimed interest) or participation that would make them liable for the plaintiff's mortgage dues.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Meyappa Chetty v. Supramanian Chetty, AIR 1916 PC 202 Executor derives title from the will and may institute action before proving the will; decree prior to probate is restricted by court rules requiring probate as proof of title. The Court cited the decision as the English view relied on by the appellant but contrasted it with this Court's post-1870 view and declined to accept the appellant's contention based solely on that decision.
Thompson v. Reynolds; Woolley v. Clark (English cases, cited in Meyappa Chetty) Authorities supporting the position on executor's rights under English law. Referenced as supporting authorities in the Judicial Committee's view; used to explain origins of the appellant's argument but not adopted as overriding domestic authority.
Administrator-General of Bengal v. Premlal Mullick, 1895 22 Cal 788; Sarat Chandra Banerjee v. Bhupendra Nath, 1898 25 Cal 103; Kurrutulain Bahadur v. Nuzbat-ud-dowla Abbas Hossein Khan, 1905 33 Cal 116 Post-1870 view of this Court: on obtaining probate, executors become vested by statute with the whole estate belonging to the testator as of his death; vesting relates back to the testator's death. The Court adopted this line of authority to reject the appellant's contention that probate deprived the decree-holders of landlord status at the relevant times.
K. Ramiah v. K. Venkatasubbamma, AIR 1926 Mad 434 Represents a different view taken by some other courts on executor/probate issues. Mentioned as an alternative view in other courts; the Court declined to follow that differing view and preferred the line of Calcutta cases cited above.
Chandra Kishore Roy v. Prasanna Kumari Dasi, 1911 38 Cal 327; Succession Act, s.187 (mentioned) If an executor institutes suit in anticipation of probate and later obtains probate, the requirements of Section 187 are satisfied for the purposes of obtaining a decree. The Court observed this principle to show that suits instituted by executors before probate can be validated on subsequent probate, supporting the view that the appellant's representation argument did not succeed.
Basanta Kumar v. Gopal Chunder, AIR 1915 Cal 207 A legal heir in possession of the general estate can maintain a suit for the benefit of the estate so long as no other claimant establishes a right under the will. Cited to support the conclusion that the appellant's representation-based objections to the rent suit were insufficient to upset the status of the decree-holders as landlords.
Forbes v. Maharaj Bahadur Singh, AIR 1914 PC 111 Authority relied upon to argue that execution was not one in which tenure could pass if decree-holders were not landlords. The Court considered the decision but concluded the decree-holders had not parted with or assigned their interests; thus the appellant's reliance upon this case did not help its contentions.
Chhatrapat Singh v. Gopi Chand Bothra, 1899 26 Cal 750 Observation that a trustee, though technically an assignee, is not to be treated as an assignee with independent interest for certain legislative purposes. The Court expressed agreement with this view to reject the argument that vesting in executors made them assignees who would defeat the passing of tenure on execution.
Nritya Gopal Hazra v. Golam Rasool, 1900 28 Cal 180 Holds that the Collector's function in this matter is ministerial (in relation to issuing notices under the tenancy provisions). The Court noted the decision and held that it does not prevent the Collector from subsequently doing what he had declined to do earlier (i.e., reviving the application and ordering notices), rejecting the argument that revival was ultra vires.
Yusuf Gazi v. Asmat Mollah, 1913 15 IC 430 Knowledge or intimation can sometimes be sufficient to impute notice if the circumstances reasonably require inquiry into particulars of the encumbrance. The Court cited the principle but found no circumstances in the present case that would cast on Praphulla or Saroje a duty to inquire; therefore the Court declined to impute notice to others on that basis.

Court's Reasoning and Analysis

The Court proceeded by addressing the appellant's central contentions in sequence and applying statutory language and precedent cited in the record.

  1. On the representation/probate point the Court examined the appellant's reliance on Meyappa Chetty and English authorities. It contrasted that view with the line of decisions from this Court (post-1870) holding that on obtaining probate executors become vested by statute with the estate and that such vesting relates back to the testator's death. The Court concluded that the appellant's contention based on lack of proper representation could not be upheld.
  2. Concerning the submission that, because of probate, the decree-holders were no longer landlords (and thus tenure could not pass on execution), the Court reviewed Forbes v. Maharaj Bahadur Singh and decided it did not support displacing the statutory consequences of execution here: the decree-holders had not assigned away their interests in any way to make them ex-landlords. The Court cited Chhatrapat Singh v. Gopi Chand Bothra to support the proposition that persons in whom legal estate is vested (e.g., executors/trustees) are not to be equated with assignees who have an independent interest that would defeat the passing of tenure.
  3. On whether the sale was held subject to encumbrances, the Court considered evidence of low sale price and irregularities in printed proclamations. It found that inadequacy of price did not determine legal consequences of the sale, and although some proclamations variably stated "sale will be free from incumbrance" or "sale will be subject to the encumbrance" and wrong forms had been used, these irregularities did not alter the statutory consequences: the proclamations (including Ex. 14 and Ex. H) distinctly stated at several places that the sale was to be held with power to annul encumbrances. Thus the statutory position prevailed over the procedural errors in proclamations.
  4. On the Collector's jurisdiction under Section 167 and the timing issue, the Court reviewed chronology: sale on 19 November 1923; application for notices under S.167 on 11 June 1926 initially dismissed as beyond one year; application to revive supported by an affidavit that defendants 2–6 had notice only in May (or late April) 1926; the Collector later revived the case and ordered notices. The Court rejected the argument that the Collector's revival was beyond his power, observing that the cited case (Nritya Gopal Hazra v. Golam Rasool) only established the ministerial character of the Collector's functions and did not preclude him later changing his mind or acting after an initial refusal.
  5. On the factual question whether the defendants had earlier notice, the Court carefully examined the plaintiff's oral and circumstantial evidence and found it lacking: the Court described the plaintiff's evidence as untrue in every material respect and in conflict with documentary evidence. The Court therefore concluded the defendants were entitled to treat the notices they received through the Court in the present suit as giving them first notice of the encumbrance.
  6. The Court dealt with the contention that knowledge of two landlords (Saroje and Praphulla) could be imputed to co-decree-holders or other members of the joint family. It found that (a) the asserted earlier knowledge by those two was at best a possibility not proved, and (b) Section 167 speaks of "notice" (an intimation of a definite character) not mere "knowledge." The Court saw no materials to justify treating any alleged knowledge as imputable to other family members or as equivalent to the statutory notice required.
  7. On the totality of findings — legal and factual — the Court concluded there was no ground to disturb the Subordinate Judge's dismissal of the suit against defendants 2–6 and therefore found the appeal should not succeed.

Holding and Implications

HOLDING: The appeal is dismissed. The Subordinate Judge's decree granting a money decree against defendant 1 and dismissing the suit as against defendants 2 to 6 is upheld. The dismissal is with costs to the appearing respondents.

Implications:

  • The direct effect is that the plaintiff's suit was only partly successful (monetary decree against the mortgagor) and failed against the purchasers/other defendants; purchasers who bought in execution under the rent decree and who followed the statutory procedures were not held liable to satisfy the plaintiff's encumbrances on the facts found.
  • The Court applied and reaffirmed existing lines of authority on the effect of probate and executor vesting, the interpretation of Section 167 (requiring notice of a definite character rather than mere knowledge), and the ministerial character of Collector functions in issuing notices; the opinion does not purport to create new precedent beyond these applications of existing law.

Disposition recorded in the opinion: "Appeal dismissed."

    Gopal Lal Chandra v. Amulyakumar Sur .

    1. The plaintiff instituted this suit for enforcement of a mortgage bond in his favour, of which the consideration was made up of his dues upon seven promissory notes and a cash amount of Rs. 8,000 odd, and upon four subsequent mortgages in his favour on deposit of title deeds. The moneys were taken and the bonds were executed by one Taraknath Banerji, defendant 1 in the suit, who held the mortgaged properties under defendants to 6 under a dar mourasi mokarrari lease. The latter purchased the properties in execution of a decree for arrears of rent against defendant 1. The plaintiff's case was that the said purchase was made with knowledge and notice of the encumbrances in plaintiff's favour and that in law and equity the purchasers were bound to pay up the plaintiff's dues. He prayed for a preliminary decree for sale with liberty reserved to apply for a personal decree for the balance. Defendant 2 disclaimed all interest in the mortgaged properties. He, as well as the other defendants, namely, Nos. 3 to 6, alleged that they had no knowledge or notice of the encumbrances prior to the sale, that the sale was held in execution of a decree for rent in accordance with the provisions of the Bengal Tenancy Act with power to the purchasers to avoid all encumbrances, that they got notice of the encumbrances, when they received the notices through Court in connexion with the present suit and they, thereupon annulled the encumbrances by proceeding under S. 167 of the Act. The Subordinate Judge has made a decree for money in plaintiff's favour against defendant 1 and has dismissed the suit against defendants 2 to 6. The plaintiff has appealed.

    2. The first contention of the appellant is that the decree, in execution of which defendants 3 to 6 made the purchase, was not a decree for rent contemplated by the Bengal Tenancy Act and the sale in execution also had not the effect of a rent sale thereunder. This contention is pressed on several grounds, which will be noticed presently. But before doing so it will be convenient to state a few facts.

    3. The suit for rent was instituted by five persons, namely: (1) Praphullakumar, (2) Amulyakumar, a minor son of one Shashibhooshan represented by his mother Manmohini, (3) Anathnath, (4) Sarojekumar and (5) Prasannakumar. It was stated in the plaint that the share of Nos. 1 and 2 was 10 as., of No. 3-2 as, 13 gds. 1 k. 1 kr., of No. 4-13 gds. 1 k. 1 k. 1 kr., and of No. 5-2 as 13 gds. 1 kr. The prayer was for recovery of rents and cases for the years 1324 to 1327 B.S with damages and interest. It was instituted on 14th April 1921. Shashibhooshan had left a will, dated 10th October, 1918, which was pending probate at the date of the suit. By the will, Praphullakumar, Manmohini and Shashibhooshan's son-in-law, Satish were appointed executors: the first two being also appointed guardians of the person of the minor, Amulyakumar. Several bequests were made in favour of different persons, the properties, with which this suit is concerned, being bequeathed to Amulyakumar and it being provided that the executors should deliver them to him on his completing the age of 21 years. Probate was issued in favour of the two executors, Praphullakumar and Manmohini on 28th April 1921. On 7th September, 1921, the decree was passed in the suit for rent. The plaintiffs in the suit named above, as decree-holders, applied for execution. The sale was held on 19th November, 1923, they themselves being purchasers. They obtained a sale-certificate in their own names on 21st December 1923, and they obtained delivery of possession of the purchased properties on 10th January 1924.

    4. It has been argued that, as the properties had vested in the executors under the will, there was no representation in respect of the 10 annas share of Shashibhooshan in the properties, since not the executors but the plaintiffs 1 and 2, that is to say, Praphulla in his personal capacity and Amulyakumar as represented by his guardian Manmohini, and not Manmohini as executrix, had sued so far as that share is concerned. This contention is pressed on the strength of the decisions of the Judicial Committee in the case of Meyappa Chetty v. Supramanian Chetty . AIR 1916 PC 202. In that case their Lordships observed:

    “It is quite clear that an executor derives his title and authority from the will of his testator and not from any grant of probate. The personal property of the testator, including all rights of action, vests in him upon the testator's death, and the consequence is that he can institute an action in the character of executor before he proves the will. He cannot, it is true, obtain a decree before probate, but this is not because his title depends on probate, but because the production of the probate is the only way in which, by the rules of the Court, he is allowed to prove his title.”

    5. Their Lordships were there relying on the English law on the point and referred to the cases of Thompson v. Reynolds . 1827 3 C & P 123. and Woolley v. Clark . 1822 5 B & Ald 744. The view adopted by this Court in respect of wills after 1870 is that, on the executors obtaining probate, they immediately become vested by force of statute with the whole of the estate, which belonged to the testator at the time of his death: or in other words, that the vesting takes place on the taking of probate, but relates back to the time of the testator's death and to the estate which then belonged to him: see Administrator-General of Bengal v. Premlal Mullick . 1895 22 Cal 788, Sarat Chandra Banerjee v. Bhupendra Nath . 1898 25 Cal 103. and Kurrutulain Bahadur v. Nuzbat-ud-dowla Abbas Hossein Khan . 1905 33 Cal 116. It has been pointed out to us that a different view has been taken in other Courts [e.g, in the case in K. Ramiah v. K. Venkatasubbamma . AIR 1926 Mad 434], but we should be content to adopt the view which this Court has taken. It is true that, if an executor institutes a suit in anticipation of probate and subsequently obtains probate, the requirements of Section 187 of the Succession Act, are satisfied for the purposes of a decree to be obtained [Chandra Kishore Roy v. Prasanna Kumari Dasi . 1911 38 Cal 327]. But at the same time, it is well settled that the legal heir of a testator in possession of his general estate can maintain a suit for the benefit of the estate so long as any other claimant does not establish his right to the same under the will: see the cases referred to in Basanta Kumar v. Gopal Chunder . AIR 1915 Cal 207. The contention of the appellant therefore cannot be upheld.

    6. It has next been contended that, even if the suit was properly constituted at the date it was laid, by the grant of the probate, which Praphulla and Manmohini obtained, Shashibhooshan's ten annas share vested in them as executors, and neither at the date of the decree nor at the date of the application for execution the decree-holders had any rights as landlords, and so, on the authority of Forbes v. Maharaj Bahadur Singh . AIR 1914 PC 111, the execution was not one in which the tenure could pass. We have carefully perused this decision and we have come to the conclusion that it is not possible to regard the decree-holders as having parted with or assigned over their interests as landlords in any way, so as to be ex-landlords and not existing landlords within the meaning of the decision. Ameer Ali, J., in the case of Chhatrapat Singh v. Gopi Chand Bothra . 1899 26 Cal 750 observed thus:

    “From one point of view the trustee is an assignee, inasmuch as the property is conveyed to him as has been done in this case. But to my mind the legislature never intended to include in the word ‘assignee’ used in Cl. (h) (meaning that clause of S. 148 of the Act) persons in whom a legal estate was vested by an act of the owner but had no independent interest in the property.”

    7. We entirely agree in this view. This contention also must be overruled. It has been argued that the sale was held subject to encumbrances and this should be inferred from the fact that the price which the properties fetched was only Rs. 5,000, whereas after purchase it was let out by the purchasers in 1926 for a selami of Rs. 3,000 and at an annual rent of Rs. 3,000. The price, for which the properties were purchased, seems to have been very low. But inadequacy of the price is hardly a consideration, which comes in when the question is what is the legal consequence that should have followed from the sale. In one copy of the proclamation (Ex. H) filed on behalf of the defendants the words “sale will be free from incumbrance” appears, while in another copy (Ex. 14), which is said to be the original, the words “sale will be subject to the encumbrance” appears, and the forms of these proclamations, that were used, were inapposite, inasmuch as, instead of forms under S. 162, Cl. (a), those under Cl. (b) were used. These irregularities and errors cannot, in our opinion, affect the statutory consequences of the sale that was held. Both in Ex. 14 and in Ex. H it was distinctly stated at more places than one that the sale was to be held with power to annul encumbrances.

    8. The next question raised is whether the Collector had jurisdiction to issue the notices under Section 167 of the Ben. Ten. Act. The sale, as already stated, took place on 19th November 1923. The application for serving the notices under S. 167 of the Act was made on 11th June 1926. This application was dismissed by the Collector on 15th June 1926, on the ground that it had been made beyond one year from the date of the sale. There was then an application for revival of the case on allegation, supported by an affidavit of the naib of defendants 2 to 6 that they had notice of the encumbrance only on 11th May 1926. On this application the case was revived and notices were ordered to issue. It has been argued that the Collector's order of revival was without jurisdiction, because what he had to do in this connexion was nothing judicial, and reliance for this proposition has been placed on the decision in the case of Nritya Gopal Hazra v. Golam Rasool . 1900 28 Cal 180.. The decision only lays down that the Collector's function in this matter is that of a ministerial officer. There is nothing in the decision suggesting that the Collector may not change his mind or that he may not subsequently do what he had declined to do before. The word “revival” may not have been a happy word to use in this connexion. Our attention has been drawn to the allegation in the petition and the affidavit aforesaid that defendants 2 to 6 received notice of the encumbrance on 11th May 1926 and that the correct date should be 29th April 1926. The error is unfortunate, but we cannot regard it as intentionally made. Then it has been argued that defendants 2 to 6 had notice of the encumbrance far beyond one year from the date of the application made for issuing the notices under S. 167 of the Act. Their case was that it was on 11th May 1926 (or rather 29th April 1926 to be correct), that they got notice of the encumbrance when they received the registered postcards issued by the Court informing them of the present suit. The plaintiff's case on the other hand was that on at least four previous occasions they had such notice or knowledge of the encumbrance. The plaintiff has adduced some oral evidence and has also relied upon some circumstances to establish this position. We have examined this evidence with care and we are quite unable to believe it: we are decidedly of opinion that it was untrue in every material respect, and it is in conflict with what some documentary evidence, that there is on the record, unmistakably proves. The circumstances on which the appellant relies are at best dubious and lead to no definite conclusion. It is possible that the wholesale ignorance pleaded on behalf of the defendants is not true, but the possibility is more or less a mere supposition and is not based on any tangible proof. In the circumstances we think it is reasonable to hold that the defendants are entitled to rely on the notices that they received through the Court in respect of the suit as giving them first notice of the encumbrance. An argument has been addressed to us based on the supposition that two of the defendants had much earlier notice of the encumbrance. It was based upon a passage in the judgment of the Court below, which is worded thus:

    “It is also very likely that, during the years 1920 to 1924, the plaintiff would tell two out of the five landlords about his mortgage lien, but this will not help the plaintiff's cause in the present case, when it is admitted that no other landlord, except Saroje Sur and Praphulla Sur, was apprised of the mortgage lien. The Bengal Tenancy Act does not encourage this vague talk about a mortgage lien and it has been provided that, in case of registered and notified encumbrances, a copy of the instrument must be served on the entire body of landlords. A purchaser in a rent sale has got the right of annulling all encumbrances excepting the notified and registered encumbrances and the plaintiff cannot claim any benefit for himself unless he brings himself within the class of registered and notified encumbrances.”

    9. It has been argued that if Saroje and Praphulla had notice of the encumbrance, the other decree-holders defendants, who were members of the same joint family as they and to whom they or one of them stood in the position of karta, were affected by that notice. The answer to this contention is that the fact that Saroje and Praphulla had knowledge is only a possibility, as we have already stated, and is not a fact proved in the case. Nextly, the answer is that S. 167 speaks of “notice” and not “knowledge”, and so requires some intimation of a definite character as regards the nature and the particulars of the encumbrance to serve as a basis on which the starting point of the period contemplated by the section may rest. It is true that there is no form of notice prescribed by the statute. It is also true that it has been held that knowledge or intimation may sometimes be sufficient to impute notice if the circumstances are such as may reasonably require the person, who has such knowledge or intimation to inquire about the particulars: Yusuf Gazi…Plaintiff, v. Asmat Mollah…Defendant, . . 1913 15 IC 430.. But we can find nothing on which it may be held that there was such a duty cast on Praphulla or Saroje in the present case. Nor do we see how knowledge, if any, on their part may be regarded as knowledge of the others on the footing of their being members of one family. There are no materials on which we can hold that Praphulla and Saroje or either of them acted as kartas, while on the other hand the plaintiff's own evidence is that on one occasion, when he and the mortgagor saw Praphulla and Saroje make entreaties of them for returning the properties to the mortgagor on taking some money, Praphulla and Saroje replied that:

    “they would consult their cosharers if it was possible to give back the properties after taking some money.”

    10. On the findings we have arrived at no other question need be considered. The appeal, in our opinion, ought not to succeed. It is accordingly dismissed with costs to the appearing respondents.

    K.S

    11. Appeal dismissed.

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    Comments

    Gopal Lal Chandra v. Amulyakumar Sur .
    (Aug 26, 1931)