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Manmotha Nath Mitter And Others v. Rakhal Chandra Tewary And Others
Concise Analytical Summary of the Opinion (Appeal No. 118 and related appeals)
Factual and Procedural Background
The dispute arises from successive interests in a putni (a permanent tenure) and an associated dur-putni. Nabin Chandra Ghosh held a putni under Jagat Tarini Dasi (created 3 May 1874). On 28 May 1895 Nabin Chandra created a dur-putni in favour of Kishori Lal Ghosh. Kishori Lal obtained a decree for rent against the respondents on 26 January 1903 and applied for execution of that decree on 26 January 1906.
Meanwhile, the putnidar defaulted on rent to the zemindar, who sued and in execution proceedings purchased the putni on 15 August 1906. On 23 December 1906 the zemindar, Jagat Tarini Dasi (the auction purchaser), served notice under sec. 167 of the Bengal Tenancy Act and annulled the dur-putni encumbrance. Kishori Lal executed a conveyance in favour of Jagat Tarini on 23 January 1907 transferring arrears of rent and decrees and authorizing the purchaser to carry on pending execution proceedings; the conveyance also contemplated Kishori Lal joining in applications or consenting to be made a defendant if necessary.
On 4 February 1907 Jagat Tarini applied to the Court of first instance (where Kishori Lal’s execution proceedings were pending) for leave to proceed with execution. The trial court dismissed the application following objections from the judgment-debtors; the District Judge affirmed dismissal. Jagat Tarini appealed to this Court; she died during pendency and her legal representatives were brought on record as appellants.
Legal Issues Presented
- Whether it is competent to the appellants (legal representatives of an assignee of a decree for rent) to carry on execution proceedings which were initiated by the original decree-holder.
- Whether the death of an execution applicant bars prosecution of execution proceedings by their legal representatives, with particular reference to Order 22, Rule 12 of the Code of 1908 and its interaction with Rules 3, 4 and 5 of Order 22.
- Whether an assignee of a decree must present a fresh application for execution under section 232 of the Code of 1882, or may seek leave to continue execution already initiated by the assignor.
- Whether an application by an assignee to continue execution is barred by limitation under section 22 of the Limitation Act.
- How section 148(h) of the Bengal Tenancy Act ought to be construed: whether it bars an assignee from executing a decree for arrears of rent unless the landlord's interest has become and is vested in the assignee, and relatedly, whether section 167 (service and "annulment" of encumbrances) operates to extinguish subordinate interests or to vest them in the purchaser.
- Whether, once vested, the assignee may execute the decree as a decree for rent (under the Bengal Tenancy Act) or only as a decree for money (under the Code of Civil Procedure).
- In a separate appeal (No. 273), whether the recorded decree-holder may be allowed to continue execution when assignment has occurred but the assignee has not applied for leave to carry on execution.
Arguments of the Parties
Appellants' Arguments
- The appellants (as legal representatives of the assignee) were competent to carry on the execution proceedings initiated by the original decree-holder; the order allowing them to prosecute the appeal was rightly made.
- The assignee was not required to present a fresh execution application under section 232; rather, the assignee need only apply for leave to execute or to carry on the execution already pending in the name of the assignor.
- The application presented on 4 February 1907 was not barred by limitation under section 22 of the Limitation Act because section 22 applies only to suits and not to execution proceedings; further, the application was not under section 372 of the Code (which does not apply to execution).
- By purchase at the sale in execution and by service under section 167 of the Bengal Tenancy Act, the appellants became vested with the landlord's interest; therefore section 148(h) does not bar them from executing the decree for rent, and they are entitled to carry on execution as a decree for rent.
Respondents' Arguments
- Preliminary objection: upon the death of the applicant in execution proceedings, the applicant's legal representatives are not entitled to prosecute an appeal in respect of an order made in execution proceedings, relying on Order 22, Rule 12 of the Code of 1908 (i.e., the procedure for substitution in suits does not apply to execution, and therefore the proceedings lapse).
- Substantively, the respondents contended that the appellants could not execute the decree because the landlord's interest had not become and was not vested in them — in support they relied on the effect of service under section 167 (the word "annulled" was stressed), arguing that the dur-putnidar’s interest was extinguished rather than vested in the purchaser.
- It was also contended (and treated by the lower courts) that the assignee’s application was barred by limitation under section 22 of the Limitation Act, relying upon the Full Bench decision in Abdul Rahaman v. Amir Ali.
- Some reliance was placed on authorities (e.g., Dinonath v. Golap Mohini) suggesting that even where landlord's interest is assigned, execution may only proceed as a decree for money and not under rent-enforcement provisions.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For (as stated in the opinion) | Application by the Court (how the opinion used the precedent) |
|---|---|---|
| Gulab Das v. Lakshman Nurhur | Judicial rule that certain provisions (sec.102 of Act VIII of 1859 / sec.365 of Act XIX of 1882) were not applicable to proceedings in execution of decrees. | Used as one of several authorities to show that substitution provisions under the old Codes did not apply to execution proceedings. |
| Hira Chand v. Kasturs Chand | Same principle as above: substitution provisions were not applicable to execution proceedings. | Grouped with other cases to support the proposition that execution proceedings did not abate on death under the old Code provisions. |
| Stowell v. Ajudhia | Illustrative ruling that substitution provisions did not apply to execution. | Relied upon as part of precedent showing non-application of substitution rules to execution proceedings. |
| Abidunnissa v. Amirunnissa | Ruled substitution/limitation provisions governing suits did not govern representatives continuing execution proceedings. | Cited to support the historical position that representatives of a deceased judgment-creditor could continue execution proceedings. |
| Dullari v. Mohan Singh | There was some difference of judicial opinion on the point of substitution in execution proceedings. | The Court noted the divergence and observed that the legislature (Order 22, Rule 12 of the new Code) settled the controversy. |
| Jogendra Chandra Roy v. Shyam Das | Held there is no provision requiring actual substitution of the assignee's name for validity of execution proceedings; section 232 requires only that assignee apply for execution and be brought on record. | Adopted as direct authority to support the view that an assignee need not make a fresh application but may seek leave to continue existing execution proceedings. |
| Syud Nadir v. Pearoo | Support for the position that actual substitution of name is not necessary; assignee must apply and be put on record. | Included among authorities reinforcing the principle that assignee can apply for leave to proceed with pending execution. |
| Balkishoon v. Tazum Ali | Same supporting proposition regarding assignee and execution procedure. | Used as corroborative authority for the assignee's right to apply to carry on pending execution. |
| Shamapado v. Nobin Chunder | Another authority cited for the position that substitution is not a condition precedent to continuing execution. | Relied upon in the cluster of cases supporting the assignee's procedural rights. |
| Javermal v. Umaji | Supportive authority that assignee need not be substituted before proceeding with execution. | Used to buttress the conclusion that the assignee may apply for leave to continue execution already pending. |
| Abdul Rahaman v. Amir Ali (Full Bench) | Held that the application (in that case) was barred by limitation under section 22 of the Limitation Act. | The Court rejected the Full Bench's applicability in the present context because section 22 governs suits and not execution proceedings; thus the lower court's reliance on that decision was not accepted for the present case. |
| Dwarka Nath Sen v. Peari Mohan Sen | Authority cited for the proposition that where an ijara had expired, assignment of a decree for rent to superior landlords did not vest the ijaradar's interest in the landlords. | The Court distinguished this case on its facts (expiry of ijara) and held it was not applicable to the present facts involving permanent tenure (putni) and annulment of subordinate dur-putni. |
| Dinonath v. Golap Mohini | Addressed whether an assignee who obtained assignment of landlord's interest could execute a decree for arrears of rent under Chapter XIV or only as a decree for money. | The Court noted the decision but declined to adopt it categorically here, finding the present facts distinguishable and deciding the present case on its special facts. |
| Manuratan Nath v. Hart Nath | Identified as indicating conflict of judicial opinion on the true effect of section 148(h) of the Bengal Tenancy Act. | Cited to show that the question is contentious and that a Full Bench reference might be warranted in a different factual context; not followed as decisive here. |
| Manuratan Nath v. Hari Nath | Referenced for the policy underlying section 148(h). | The Court used the policy discussion in that case to interpret section 148(h) in the present factual context. |
| Sashi Kumar Mirbahar v. Shita Nath Banerji | Principle supporting the Court's interpretation of section 148(h) in favour of allowing execution as for rent where landlord's interest has vested in the assignee. | Relied upon to support the Court's conclusion that section 148(h) did not bar execution as a decree for rent in the present circumstances. |
| Khettra Pal Singh v. Kritartha Moyi Dasi | Another authority cited to support the Court's construction of section 148(h) in favour of the assignee carrying on rent-execution. | Employed as supporting precedent for permitting execution as a decree for rent where the landlord's interest is vested in the assignee. |
| Khettermohan v. Ishur Chnnder | Principle that the Court is bound to allow execution at the instance of the recorded decree-holder unless proper intimation has been given admitting another person to carry on execution. | Applied (with Jasada Deye) to uphold the District Judge's direction in Appeal No. 273 allowing execution at the instance of the recorded decree-holder while protecting assignee's financial interest by appropriate directions on proceeds. |
| Jasada Deye v. Kirtibash Das | Same principle as Khettermohan v. Ishur Chnnder regarding allowing execution at instance of recorded decree-holder absent lawful intimation of assignment. | Applied together with Khettermohan to support the affirmation of the District Judge in Appeal No. 273. |
Court's Reasoning and Analysis
The Court proceeded in a structured sequence addressing first procedural objections and then substantive points raised by the appellants.
1. Preliminary objection under Order 22, Rule 12 (substitution on death):
- The respondents argued that because Order 22, Rule 12 provides that certain substitution rules (Rules 3, 4 and 8 of Order 22) do not apply to execution proceedings, legal representatives of a deceased applicant cannot continue execution proceedings. The Court rejected this reading.
- Reasoning: Rules 3, 4 and 5 of Order 22 govern substitution in suits; Rule 12 merely confirms that those substitution procedures do not apply to execution proceedings. The Court found no legitimate inference that Rule 12 means proceedings lapse on the death of an execution creditor. Instead, Rule 12 restates the settled doctrine under the old Code that substitution provisions for suits do not regulate execution proceedings.
- The Court relied on prior authorities (Gulab Das, Hira Chand, Stowell, Abidunnissa) showing substitution provisions did not apply to execution. The divergence in Dullari v. Mohan Singh was noted, and the Court observed that the legislature's Order 22, Rule 12 settled the matter under the new Code.
- Conclusion: legal representatives of the deceased appellant could apply for leave to prosecute the appeal; the order permitting them to do so was rightly made and the preliminary objection was overruled.
2. Requirement of a fresh application under section 232 of the Code (first substantive ground):
- The District Judge had held that an assignee must present a fresh application under section 232 and could not seek leave to carry on the original execution. The Court rejected this view.
- Reasoning: Section 232 requires the assignee to apply for execution and to have his name brought on record, but it does not mandate actual substitution of names as a prerequisite to validity of execution proceedings. The Court cited Jogendra Chandra Roy and several supporting authorities to hold that the assignee may apply for leave to carry on execution already pending.
- The Court also noted the analogous English practice (Order 42, Rule 23 of the Rules of the Supreme Court) where the assignee may continue execution.
- Conclusion: Jagat Tarini was competent to apply (on 4 February 1907) for leave to carry on Kishori Lal’s execution; the first ground in favour of the appellants succeeded.
3. Limitation under section 22 of the Limitation Act (second substantive ground):
- The District Judge — relying on Full Bench authority (Abdul Rahaman v. Amir Ali) — held the 4 February 1907 application was barred by section 22. The Court found that reasoning unsound.
- Reasoning: Section 22 applies to suits, not to execution proceedings. Moreover, the application in this case was not under section 372 of the Code (a section inapplicable to execution). Therefore the limitation argument based on section 22 was incorrect in the context of execution proceedings.
- Conclusion: the application was not barred by section 22; the second ground urged by appellants therefore succeeded.
4. Construction of section 148(h) of the Bengal Tenancy Act and the legal effect of section 167 notices (third substantive ground):
- Section 148(h) provides that an assignee cannot apply for execution of a decree for arrears of rent obtained by a landlord unless the landlord's interest in the land has become and is vested in him. The main controversy was whether the appellants were thereby barred from executing the decree and whether, by service under section 167, the dur-putnidar's interest was "annulled" in a manner that prevented vesting.
- The Court analysed the legal effect of sale under the execution provisions: section 159 states that at sale the whole tenure passes to the purchaser subject to protected interests but with a reserved power to annul encumbrances. The purchaser's exercise of the option "to annul" means the purchaser takes the entire tenure; to interpret "annul" as destroying the subordinate interest without vesting it in the purchaser would produce incoherence (a broken chain of rights).
- Using an illustrative hypothetical chain (A zemindar, B putnidar, C dur-putnidar, D raiyat), the Court showed that if the subordinate dur-putni were merely extinguished, neither A nor D would have legal assurance to collect rent directly; a more coherent interpretation is that the purchaser steps into the shoes of both superior and intermediate rights and the rent-collection liability of the raiyat vests in the purchaser.
- The Court therefore held that by the sale in execution and by service under section 167, the appellants superseded the rights of the putnidar and the dur-putnidar and became entitled to realize rent directly from the defendants — i.e., the landlord's interest had become and was vested in them.
- Dwarka Nath Sen v. Peari Mohan Sen (where an ijara had expired) was distinguished on its facts: expiry of a lease has different consequences from the purchase of a permanent tenure (putni) and annulment of a subordinate dur-putni.
- Conclusion: appellants were assignees of the decree for rent and the landlord's interest had become and was vested in them; section 148(h) did not bar their execution in the present facts.
5. Whether execution must be as a decree for money rather than for rent (related to Dinonath v. Golap Mohini):
- The respondents relied on Dinonath v. Golap Mohini, where the court held an assignee might be able to execute only as a decree for money. The Court in the present case declined to treat that authority as decisive here.
- Reasoning: The present facts are materially different. Here Kishori Lal was the landlord both when he obtained the decree and when he applied for execution; during the pendency the landlord's interest vested in the superior landlord, who then obtained an assignment and was authorized to carry on execution already initiated. Under these facts, there is no reason why the superior landlord should not enforce rent as directly collectible from the raiyats, in the same manner as if the putni had never intervened.
- The Court relied on the policy underlying section 148(h) (as discussed in Manuratan Nath) and precedents (Sashi Kumar Mirbahar, Khettra Pal Singh) to conclude that when the landlord's interest vests in the assignee under facts like these, the assignee is not debarred from executing the assigned decree as a decree for rent.
- Conclusion: on the facts of the present case, the appellants could execute the decree as a decree for rent; third ground in favour of appellants allowed.
6. Result of the analysis:
- Appeal No. 118: The Court allowed the appeal, discharged the orders of the lower courts, and directed execution to proceed at the instance of the appellants on the basis of the application presented by Kishori Lal Ghosh on 26 January 1906. Costs awarded to appellants; hearing fee assessed at three gold mohurs.
- Appeals Nos. 146 and 174: These were held to be governed by the same reasoning and were allowed with costs; execution to proceed.
- Appeal No. 273: This appeal (by a judgment-debtor against the District Judge's order allowing execution) was dismissed. The Court affirmed that execution may be allowed at the instance of the recorded decree-holder unless regular intimation admitting the assignee has been given; the District Judge's directions to retain proceeds for benefit of the assignee were regarded as appropriate.
Holding and Implications
Holding:
For Appeal No. 118 and the related appeals, the Court held in favour of the appellants on all three principal grounds advanced:
- DISPOSITION: The appeal (No. 118) is allowed; the orders of the Courts below are discharged; execution is directed to proceed at the instance of the appellants on the basis of Kishori Lal Ghosh's application of 26 January 1906.
- Appeals Nos. 146 and 174 are allowed with costs and execution will proceed.
- Appeal No. 273 is dismissed and the District Judge's order is affirmed.
Consequences for the Parties:
- The appellants (legal representatives of the purchaser/assignee) are entitled to prosecute execution proceedings initiated by the original decree-holder and to realize rent directly from the tenants because the landlord's interest was held to have become and is vested in them by purchase and statutory procedure.
- The respondents (judgment-debtors) cannot rely on the preliminary contention that proceedings lapse on the death of the execution applicant, nor on a general application of section 22 of the Limitation Act to bar the assignee's execution application in the execution context.
- Where the recorded decree-holder appears to proceed with execution and assignment has been alleged but not formally intimated, the Court will allow execution at the instance of the recorded decree-holder but may protect the assignee's monetary interest by directing retention of proceeds for the benefit of the assignee.
- The appellants were awarded costs throughout and a hearing fee in this Court of three gold mohurs.
Broader implications / precedent: The opinion interprets section 148(h) of the Bengal Tenancy Act and affirms the procedural position that assignees may seek leave to continue existing execution proceedings rather than being required to make a fresh execution application; it also clarifies that section 22 of the Limitation Act does not apply to execution proceedings. The opinion does not purport to lay down a generalized rule for every possible factual permutation and distinguishes earlier authorities where the facts differ; it does not assert that it creates a new broad precedent beyond its reasoning on the facts before the Court.
Appeal No. 118.— The substantial question of law raised in this appeal is, whether it is competent to the Appellants, who are representatives of an assignee of a decree for rent, to carry on proceedings in execution of the decree initiated by the original decree-holder. It appears that one Nabin Chandra Ghosh held under Jagat Tarini Dasi a putni which had been created on the 3rd May 1874. On the 28th May 1895, Nabin Chandra created a dur-putni in favour of Kishori Lal Ghosh. The latter obtained a decree for rent against the Respondents on the 26th January 1903 and applied for execution thereof on the 26th January 1906. Meanwhile the putnidar had defaulted to pay rent to the zemindar who sued him, obtained a decree and in proceedings in execution thereof purchased the putni on the 15th August 1906. Subsequently on the 23rd December 1906 the zemindar, Jagat Tarini Dasi, the auction-purchaser of the putni, served a notice upon the dur-putnidar under sec. 167 of the Bengal Tenancy Act and annulled his encumbrance. On the 23rd January 1907, Kishori Lal executed a conveyance in favour of Jagat Tarini in respect of all arrears of rent realizable from the tenants as also of all decrees for rent obtained against them. The conveyance further authorized the purchaser to carry on all execution proceedings pending at the time and the transferor also covenanted that he would join in all applications for execution and, if necessary, consent to be made a party Defendant. On the 4th February 1907, Jagat Tarini applied to the Court of first instance, where the execution proceedings instituted by Kishori Lal were still pending, for leave to proceed with execution. The judgment-debtors raised various objections to which effect was given by the Court. An appeal was then preferred to the District Judge who affirmed the order of dismissal of the application for execution. Jagat Tarini thereupon preferred the present appeal, and upon her death during the pendency of the appeal, her legal representatives, now; Appellants before this Court, were brought on the record.
On behalf of the Respondents, a preliminary objection has been taken to the hearing of the appeal on the ground that as the appeal is directed against an order made in the course of execution proceedings, upon the death of the applicant, her legal representatives are not entitled to prosecute the appeal, and in support of this proposition, reliance has been placed upon Order 22, Rule 12 of the Code of 1908. This preliminary objection is of a somewhat novel character and would not be worthy of serious consideration but for the insistence with which it has been pressed. The rule to which reference is made provides that nothing in Rules 3, 4 and 8 of Order 22 shall apply to proceedings in execution of a decree or order. It has been seriously contended that this indicates that upon the death of an applicant for execution of decree, his legal representatives are not entitled to carry on the proceedings, and that their only remedy is to initiate a fresh proceeding, though in the latter event they may be successfully met by a plea of limitation on the part of the judgment-debtors. In our opinion, the rule does not lend the remotest support to the contention of the Respondent. Rules 3, 4 and 5 of Order 22 provide for the procedure to be followed in case of death of one of several Plaintiffs or of the sole Plaintiff or of one of several Defendants or of the sole Defendant during the pendency of a suit. Rule 12 then provides that this procedure shall not apply to proceedings in execution of a decree or order. It is difficult to appreciate how from this the inference can be legitimately drawn that Rule 12 indicates that upon the death of an execution creditor or of a judgment-debtor the proceedings lapse. Rule 12 in substance gives legislative sanction to the fairly well-settled doctrine under the old Code that the provisions of the chapter relating to substitution upon the death, marriage or insolvency of parties, do not apply to proceedings in execution between the decree-holder and the judgment-debtor. To take one illustration under the Code of 1882, it had been ruled in the cases of Gulab Das v. Lakshman Nurhur(1), Hira Chand v. Kasturs Chand(2), Stowell v. Ajudhia(3), and Abidunnissa v. Amirunnissa(4), that neither sec. 102 of Act VIII of 1859 nor sec. 365 of Act XIY of 1882 was applicable to proceedings in execution of decrees. In the first of these cases, it was expressly ruled that the provision of the Limitation Act which governs an application by a person claiming to be the legal representative of a deceased Plaintiff in a suit, does not apply to the representatives of a deceased judgment-creditor claiming permission to continue execution proceedings commenced by him, because the Code does not provide that an application for execution shall like suits abate by the death of the judgment-creditor. There was some difference of judicial opinion, however, on the subject in the case of Dullari v. Mohan Singh(5), and this controversy has now been set at rest by the Legislature by Order 22, Rule 12 of the new Code. We must consequently hold that upon the death of the Appellant during the pendency of the appeal, it was open to her legal representatives, to apply for leave to prosecute the appeal, and that the order in their favour in this behalf was rightly made. The preliminary objection must therefore be overruled.
In support of the appeal, three grounds have been urged against the decision of the learned District Judge, namely, first, that it was not necessary for the assignee to make a fresh application for execution under sec. 232 of the Code of 1882; secondly, that the application which was actually made by the assignee was not barred by limitation under sec. 22 of the Limitation Act; and, thirdly, that notwithstanding the provisions the sec. 148(h) of the Bengal Tenancy Act, the assignee is entitled to execute the decree for rent under that Act.
With reference to the first point taken on behalf of the Appellant, it is necessary to mention that the learned District Judge has held that when a decree has been transferred by assignment in writing or by operation of law, from the decree-holder to another person, the transferee is bound under sec. 232 to present a fresh application for execution and that it is not competent to him to ask for leave to proceed with the execution previously initiated by the transferor and actually pending at the time. In our opinion, this view cannot be supported. As pointed out by this Court in the case of Jogendra Chandra Roy v. Shyam Das(6), there is no provision in the Code which renders necessary the actual substitution of the name of an assignee or legal representative for the validity of the proceedings in execution; all that sec. 232 provides is that the assignee should apply for execution of the decree and that his name should be brought on the record. This position is amply supported by the cases of Syud Nadir v. Pearoo(7), Balkishoon v. Tazum Ali(8), Shamapado v. Nobin Chunder(9), and Javermal v. Umaji(10). What, therefore, the assignee of the decree has to do is to apply for leave to the Court to execute the decree or to carry on the execution then pending at the instance of the assignor. This is also the practice which is followed in England under Order 42, Rule 23 of the Rules of the Supreme Court. We must consequently hold that it was competent to Jagat Tarini to apply to the execution Court, as she did, on the 4th February 1907, for leave to carry on the execution proceeding which had been commenced by Kishori Lal on the 26th January 1906. The first ground taken on behalf of the Appellant must therefore prevail.
As regards the second point urged on behalf of the Appellant, we find that the learned District Judge has held upon the authority of the decision of the Full Bench in Abdul Rahaman v. Amir Ali(11), that the application of the 4th February 1907 is barred by limitation under sec. 22 of the Limitation Act. It is manifest, however, that sec. 22 applies only to suits and does not govern execution proceedings. This by itself would be a sufficient answer to the contention of the Respondent which found favour with the learned District Judge. But it may be further observed that the application was not, as in the case before the Full Bench, made under sec. 372 of the Code of 1882, for, as we have already pointed out, that section has no application to proceedings in execution. It is manifest therefore that the view taken by the Courts below cannot be supported. The second ground also urged on behalf of the Appellant must consequently prevail.
The third ground taken on behalf of the Appellant raises a question of considerable importance, the solution of which depends upon the construction of sec. 148(h) of the Bengal Tenancy Act. That section provides that notwithstanding anything contained in sec. 232 of the Code of Civil Procedure, an application for execution of a decree for arrears of rent obtained by a landlord shall not be made by an assignee of the decree, unless the landlord's interest in the land has become and is vested in him. The substantial question in controversy between the parties is, whether this provision of the law debars the Appellant from proceeding with execution of the decree either as a decree for money or as a decree for rent. It has also been strenuously contended, however, on behalf of the Respondent that the Appellants are not entitled to execute the decree at all, because the landlord's interest in the land has not become and is not vested in them. This view has been sought to be supported by a reference to sec. 167, sub-secs. 1 and 3 of the Bengal Tenancy Act. That section provides the procedure to be followed by a purchaser at a sale for arrears of rent if he desires to annul an encumbrance, and it is laid down that upon service of the notice mentioned in the section, the encumbrance shall be deemed to be annulled. Stress has been laid upon the word “annulled” and it has been argued that the effect of the service of the notice under sec. 167 on the 23rd December 1906 was to annul, that is, to extinguish the interest of the dur-putnidar, so that it cannot be contended that the interest of the dur-putnidar as landlord has vested in the superior landlord. In our opinion, this contention, though apparently supported by a literal construction of the section, is fallacious. Let us examine, for a moment, the effect of the sale of a tenure in execution of a decree for arrears of rent which, under sec. 65, is a first charge thereon. Sec. 159 provides that what passes at the sale to the Purchaser is the whole tenure, subject to protected interests, but with power reserved to the purchaser to annul encumbrances. In other words, liberty is reserved to the purchaser to allow the encumbrances to continue or not as he chooses. When, therefore, he exercises his option against the encumbrancer, it must be taken that the entire tenure vests in him. If this view is not taken we shall be driven to the position that one of the links in the chain of rights vanishes and yet the chain remains continuous. To take one illustration: Suppose the entire aggregate of rights in a certain parcel of land is vested in A as zemindar, B, as putnidar under him, C, as a dur-putnidar under B, and D, as a raiyat under C.A in execution of a decree for rent against B purchases the putni and takes it with liberty to annul the dur-putni of C. He follows the statutory procedure and by service of notice “annuls” the encumbrance of C. If we hold that the legal effect of this transaction is to destroy the right of C, what is the position? After his purchase, according to this view, A retains his original rights and acquires that of B; the interest of C vanishes so as not to enlarge the interest of either A or D, a position obviously inconsistent with first principles. It is more in harmony with them to hold that the effect is to vest the rights of both B and C in A. So that A is brought into direct contact with D who thereupon becomes liable to pay to A the same rent as he had previously paid to C: in other words, as was suggested by the learned Vakil for the Appellant the grant by B in favour of C in derogation of the interest of A no longer continues in operation. The right of C to intercept a portion of the rent payable by D vanishes while the right to collect rent from D directly vests in A. The distinction though somewhat refined is perfectly intelligible. The contrary view would logically lead to the position that A could not get any rent at all—not from C, because his tenancy had been brought to an end, nor from D because the latter was bound to pay rent to C alone or his representative in interest. Let us now turn for a moment to sec. 148(h), and examine whether the landlord's interest in the land has become and is vested in the assignee. It may be observed that the section does not speak of the assignor's interest but of the landlord's interest. There can be no room for controversy that in the events which have happened in the case before us, the landlord's interest has become and is vested in the Appellant. By their purchase at the sale in execution of the decree for rent due on the putni and by the subsequent service of notice under sec. 167 of the Bengal Tenancy Act, they have superseded the rights of both the Putnidar and dur-putnidat and have become entitled to realize rent directly from the Defendants. If therefore they are now the landlords of the Defendants, it cannot be seriously maintained that the landlord's interest has not become vested in them. Reference was however made to the case of Dwarka Nath Sen v. Peari Mohan Sen(12), as an authority in support of the contrary view; but that case is clearly distinguishable. There, after an ijara had expired, the ijaradar sold to the superior landlords a decree for rent. It was ruled under these circumstances that as the ijara had expired, the interest of the ijaradar did not vest in the landlords. It is not necessary for us to express any opinion as to the correctness of this decision because the determination of a lease for a term is obviously different in its legal consequences from a purchase of a permanent tenure like a putni and the annulment of a subordinate dur-putni created by the putnidar in derogation of the, rights of the zemindar. We must consequently hold that the Appellants are the assignees of the decree for rent and that the landlord's interest in the land has also become and is vested in them.
The next question which requires consideration is, whether under these circumstances the Appellants, are entitled to carry on the execution of the decree as a decree for rent or only as a decree for money. Reliance has been placed by the Respondents upon the case of Dinonath v. Golap Mohini(13) in support of the proposition that the Appellants are entitled to execute the decree only as a decree for money. In that case the question raised was, whether or not a claim by an assignee of a judgment-debtor could be entertained under sec. 278 of the Civil Procedure Code when it was preferred in proceedings in execution of a decree for arrears of rent carried on at the instance of an assignee of the decree who had also obtained an assignment of the landlord's interest in the land. The learned Judges appear to have held that the assignee could not at all execute the decree till he had obtained an assignment of the landlord's interest in the land and that when he had obtained such an assignment, he would be entitled to execute the decree, not as a decree for rent under Chapter XIV of the Bengal Tenancy Act, but as a mere decree for money under the provisions of the Code of Civil Procedure. It is not necessary for us to express an opinion as to the correctness of that decision, and if the question arose in a case precisely similar to the one then before the Court, we should probably feel ourselves called upon to refer the matter for decision to a Full Bench, for as was pointed out in the case of Manuratan Nath v. Hart Nath(14), there is a conflict of judicial opinion upon the question of the true effect of sec. 148(h). Such a reference however is rendered unnecessary in the present case which on its own special facts is distinguishable from all the other cases reviewed in the judgment of this Court in the case last mentioned. In the case now before us Kishori Lal Ghosh was the landlord when he obtained the decree for rent, and also when he applied for execution of that decree. During the pendency of the execution proceeding, the interest of the landlord, by operation of law, vested in the superior landlord who thereby became the direct landlord of the tenants Defendants. Under these circumstances Kishori Lal transferred his interest in the decree for rent to the superior landlord and authorized him to carry on the execution already initiated in the name of either the assignor or the assignee. The zemindar, but for the intervention of the putni interest created by himself, would be primâ facie entitled to collect rent directly from the raiyat; when the putni interest as also the subordinate dur-putni carved thereout, revest in him, there is no conceivable reason why he should not realize rent, whether current or in arrears, in the same manner as if the putni had never intervened. Under such circumstances, sec. 148, cl.(h) does not, in our opinion, debar the superior landlord from executing the decree for rent in the same manner as Kishori Lal might have done. The policy of the Legislature which underlies sec. 148, cl.(h) was indicated in the case of Manuratan Nath v. Hari Nath, and if we bear that in mind, it becomes fairly obvious that sec. 148(h) does not, in a case like the present, debar the landlord from executing the assigned decree as a degree for rent. Undoubtedly, the section does not explicitly state that when the landlord's interest has vested in the assignee of the decree, the decree can be executed only as a decree for money. The view we take is supported by the principle on which rests the decision of this Court in the cases of Sashi Kumar Mirbahar v. Shita Nath Banerji(15) and Khettra Pal Singh v. Kritartha Moyi Dasi(16). The third ground taken on behalf of the Appellants must consequently be decided in their favour.
The result, therefore, is that this appeal must be allowed, the orders made by the Courts below discharged and execution directed to proceed at the instance of the Appellants on the basis of the application presented by Kishori Lal Ghosh on the 26th January 1906.
The Appellants are entitled to their costs throughout these proceedings. We assess the hearing fee in this Court at three gold mohurs.
Appeals Nos. 146 and 174.— These appeals, it is conceded, will be governed by the above judgment. They will therefore be allowed with costs throughout and execution will proceed.
Appeal No. 273.— This appeal has been preferred on behalf of the judgment-debtor and is directed against an order of the District Judge by which he has allowed execution to proceed. In this case, the assignee, Jagat Tarini, did not apply for leave to carry on the execution proceeding initiated by Kishori Lal Ghosh. Thereupon objection was taken by the judgment-debtor that as Kishori Lal had transferred his interest in the decree, execution ought not to be allowed to proceed at his instance. The Court of first instance gave effect to this contention. Upon appeal the learned District Judge has reversed that order and has held that the mere fact that a decree-holder has assigned his rights is no reason why execution should not proceed at his instance. In our opinion, the view taken by the District Judge is manifestly sound. It was pointed out by this Court in the cases of Khettermohan v. Ishur Chnnder(17) and Jasada Deye v. Kirtibash Das(18), that the Court is bound to allow execution at the instance of the recorded decree-holder unless intimation has been given in the regular way prescribed by law for the admission of another person who obtains leave to carry on execution as an assignee. It is of no consequence to the judgment-debtor whether execution is carried on at the instance of the recorded decree-holder or of the alleged assignee. The Court may, however, if satisfied that the decree has really been assigned, direct that the proceeds realized are not to be taken out by the recorded decree-holder but retained for the benefit of the assignee. The District Judge has, in the present case, given directions to this effect.
The result, therefore, is that the order of the District Judge must be affirmed and this appeal dismissed.
S.C.S
Appeal dismissed.
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