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  • sec. 153 of the Bengal Tenancy Act, by Act
  • sec. 153 of the Bengal Tenancy Act,
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  • sec. 153 of the Bengal Tenancy Act, by Act
  • sec. 153 of the Bengal Tenancy Act,
Smart Summary

Factual and Procedural Background

This rule challenges an order of the Subordinate Judge that reversed an order of the Original Court and confirmed an execution sale. The sequence in the opinion is as follows:

  • In August 1905 the landlord (Opposite Party) obtained an ex parte decree for rent against the petitioner (tenant/judgment-debtor) and took out execution, bringing the holding to sale.
  • On 13 May 1908 the tenant applied; the ex parte decree and the sale were set aside, and under section 153A of the Bengal Tenancy Act the tenant deposited Rs. 46-10-6 to the credit of the landlord-decree-holder.
  • The suit was reheard and on 14 September 1908 the landlord obtained a decree substantially affirming the previous decree but with higher costs, increasing the landlord's entitlement (the opinion records an aggregate figure used for execution).
  • The landlord then took out execution for the whole sum of the revised decree (apparently ignoring the earlier deposit to his credit). The sale occurred on 3 March 1909; the landlord was the sole bidder and purchased the property for the judgment amount (recorded as Rs. 68-13-6). The sale was confirmed on 14 April 1909.
  • No application for delivery of possession was made for several months; a writ was issued on 18 November (following the sale), initially returned unserved, reissued and served on 18 December. Two days after service, the judgment-debtor applied to set aside the sale, alleging fraud and material irregularity, and saying he had only recently become aware of the execution proceedings.
  • The Court of first instance found for the judgment-debtor and set aside the sale. The Subordinate Judge, on appeal, reversed that decision and directed confirmation of the sale. The present rule seeks to set aside the Subordinate Judge's order and restore the first-instance decision.

Legal Issues Presented

  1. Whether the appeal to the Subordinate Judge was competent under section 153 of the Bengal Tenancy Act (i.e., whether an appeal lies from an order reversing a sale when the decree in the suit was made by an officer specially empowered to exercise final jurisdiction).
  2. Whether the Subordinate Judge properly tried the appeal on its merits — specifically, whether the sale should be set aside on grounds of fraud or material irregularity in the conduct of the execution and sale (including incorrect application of a deposit under sec. 153A, misstatement of property value in the sale proclamation, absence of competing bidders, and delay in seeking possession).

Arguments of the Parties

Petitioner's (Judgment-Debtor's) Arguments

  • The appeal to the Subordinate Judge was incompetent under section 153 of the Bengal Tenancy Act because the original decree (under which execution was conducted) was made by an officer specially empowered by the Local Government to exercise final jurisdiction; reliance placed on Shyama Charan Milter v. Debendra Nath Mukerjee.
  • The decision of the Full Bench in Kali Mandal v. Ramsarbaswa Chuckerbutty has been qualified (or its effect reduced) by an explanation added to section 153 by Act I of 1907 (B.C.), supporting the contention that no appeal lay.
  • The Subordinate Judge did not properly try the appeal on the merits and overlooked important considerations, leading to an erroneous and unjust decision (this encompasses allegations of fraud, misstatement of value, improper execution for a larger sum, and delay in taking possession).

Landlord's (Opposite Party's) Arguments

  • The order reversing the sale was made by an officer who was not specially empowered to exercise final jurisdiction; therefore an appeal was competent and the appeal to the Subordinate Judge was properly entertained.
  • It was immaterial that the decree had been made by an officer specially empowered; appealability must be judged by the qualification of the officer passing the order appealed from.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Shyama Charan Milter v. Debendra Nath Mukerjee (also cited as Shyatna Charan Mittet v. Debendra Nath Mukerjee) Interpreted to mean that the term "suit" in section 153 includes execution proceedings (i.e., the section's provisions apply to orders made in execution as well as to orders in the suit itself). The court accepted that this case supports the proposition that "suit" includes execution proceedings, but it rejected the petitioner's broader argument that appealability should be determined by the qualification of the officer who passed the decree rather than by the officer who passed the order appealed from.
Kali Mandal v. Ramsarbaswa Chuckerbutty (Full Bench decision) Considered for its effect on appealability under section 153; the opinion notes that its effect has been "considerably restricted" by an explanation added to section 153 by Act I of 1907 (B.C). The court conceded that the Full Bench decision's effect was restricted by the later explanation, but proceeded to resolve the controlling question by reference to the language and test of section 153: appealability depends on the qualification of the officer passing the order appealed from.

Court's Reasoning and Analysis

The court's reasoning proceeds in two main stages corresponding to the petitioner's two grounds.

1. Appealability under section 153 — legal interpretation:

  • The court examined section 153 and accepted that (a) the case of Shyama Charan Milter establishes that the word "suit" in the section includes execution proceedings, and (b) the Full Bench decision in Kali Mandal has had its effect narrowed by an explanatory provision added to section 153 by Act I of 1907 (B.C.).
  • The court addressed the decisive interpretive question: whether appealability under clause (b) of section 153 is to be determined by the qualification of the officer who passed the order appealed from or by the qualification of the officer who passed the original decree in the suit.
  • Relying on the language of section 153, the court concluded that appealability must be determined with reference to the qualification of the officer who passes the order against which the appeal is preferred. The court rejected the petitioner's argument that the decree‑making officer's qualification makes every subsequent execution order final irrespective of who passes it.
  • Result: the first ground (incompetence of the appeal under section 153) fails because the order appealed from was passed by an officer who was not specially empowered to exercise final jurisdiction.

2. Merits and adequacy of the Subordinate Judge's trial:

  • The court found substantial force in the petitioner's contention that the Subordinate Judge had not properly tried the matter on its merits and had overlooked critical considerations.
  • Application of section 153A deposit: the tenant made a deposit of Rs. 46-10-6 to the credit of the landlord when the ex parte decree and sale were set aside. The Subordinate Judge held the landlord was not bound to give credit for this deposit. The appellate court disagreed: although section 153A does not specify the mode of applying such a deposit, the legislative intention was reasonably clear that, if on retrial the decree is ultimately made in favour of the landlord, the deposited sum should, in the first instance, be applied towards satisfaction of the decree. Because the deposit was made to the landlord's credit, the landlord was bound to apply it and could only execute for the balance.
  • Delay in seeking possession and concealment of knowledge: the Subordinate Judge overlooked that no application for delivery of possession was made for months after the confirmed sale. The writ for possession was only issued on 18 November, initially failed for want of an identifier, and possession was delivered only on 18 December. Two days later the tenant applied to set aside the sale alleging he had been kept by the landlord's fraud from knowing his right earlier. The Subordinate Judge did not test the truth of these allegations; instead he assumed the tenant must have been apprised because the sale was mentioned in a plaint filed in a subsequent suit — but there was no evidence that the plaint had been brought to the tenant's notice. The appellate court held that this purported finding of fact was based upon no evidence.
  • Misstatement of value and lack of competitive bidding: the landlord had valued the property in the sale proclamation at Rs. 30 while subsequently offering to buy it for the whole judgment-debt (Rs. 68-13-6); there were no other bidders. The court noted the original court found the holding (9 bighas and 10 cottahs) had been purchased for Rs. 68 while ordinary rate in that area was Rs. 50 per bigha. The Subordinate Judge asserted a value of at least Rs. 150 without explaining the materials supporting that finding. The appellate court concluded that the discrepancy showed a deliberate misstatement of value designed to procure a purchase at less than half the property's real value.
  • Combined effect: on review the court concluded the landlord had taken execution for a larger sum than he was properly entitled to, deliberately understated the value in the sale proclamation, purchased the property without competition for a small fraction of its value, and delayed seeking possession. These circumstances, collectively, indicated fraud or material irregularity and did not withstand careful scrutiny. The Subordinate Judge was in serious error and the appeal had not been properly tried on the merits.

Holding and Implications

Core Ruling: Rule made absolute; the order of the Court of first instance setting aside the sale is restored.

Implications and immediate consequences:

  • The decision of the Subordinate Judge confirming the sale is set aside; the first-instance order (which had set aside the sale) is restored.
  • The petitioner (judgment-debtor) is entitled to costs in all the Courts. The hearing fee in this Court is assessed at three gold mohurs.
  • The opinion does not announce or purport to establish a novel legal principle beyond its application of section 153 (appealability governed by the qualification of the officer passing the order appealed from) and its application of equitable considerations surrounding a deposit under section 153A. No broader precedent other than the court's application of the statutory text and the cited cases is indicated in the opinion.

Disposition recorded in the opinion: "Rule made absolute."

    Sheo Parsan Ray, Judgment-Debtor, v. Bishen Pargash Narain Singh Decree-Holder, Opposite Party.

    We are invited in this rule to set aside an order by which the Court below, in reversal of an order of the Original Court, has directed an execution sale to be confirmed. It appears that on the nth August 1905 the landlord Opposite Party obtained an ex parte decree for rent against the Petitioner. He took out execution of this decree and brought the holding to sale. On the 13th May 1908, upon the application of the tenant the decree and the sale were set aside. At the same time, under sec. 153A of the Bengal Tenancy Act, the tenant deposited a sum of Rs. 46-10-6 to the credit of the landlord decree-holder. This sum represented the amount for which execution had been taken out at that stage. The suit was reheard and on the 14th September 1908 the landlord obtained a decree. This decree substantially affirmed the previous decree but as costs were awarded on a higher scale, the landlord became entitled to recover Rs. 6313 as. The landlord then took out execution for the whole of this sum; in other words, he ignored the amount which at his instance the tenant had been compelled to deposit in his favour on the 13th May 1908. The sale took place on the 3rd March 1909. The landlord was the sole bidder on the occasion, and he purchased the property for the amount due under his decree, namely, Rs. 68-13-6. It is worthy of note that in the sale proclamation, the properly had been valued at Rs. 30 only, although subsequently he offered a bid in respect thereof for the whole of the judgment-debt. The sale was confirmed on the 14th April 1909. No application was made for delivery of possession till some months afterwards, and on the 18th November following the writ for delivery of possession was issued. On the nth December, the writ was returned unserved for want of an identifier and an order was made for a fresh issue of the writ. It appears from the return of the serving officer that the writ was served on the 18th December. Two days later, the judgment-debtor made the present application to set aside the sale. He stated that he had been apprised of the execution proceedings and of the sale only a week before, when he had been arrested in execution of a subsequent decree for arrears of rent obtained by the landlord, and he impugned the validity of the sale on the ground of fraud and material irregularity in its conduct. The Court of first instance found in his favour and directed the sale to be set aside. Upon appeal the learned Subordinate Judge has reversed that decision and directed the confirmation of the sale.

    On behalf of the judgment-debtor, we have been invited to set aside the order of the Subordinate Judge on two grounds, namely, first, that the appeal preferred to him was incompetent under sec. 153 of the Bengal Tenancy Act, and, secondly, that there has been no proper trial of the appeal on the merits.

    In support of the first ground, it has been urged that as the decree of which execution was taken out was made by an officer specially empowered by the Local Government to exercise final jurisdiction, no appeal lay against the order for reversal of the sale held in execution of that decree. In support of this proposition, reliance has been placed upon the case of Shyama Charan Milter v. Debendra Nath Mukerjee(1). It has further been contended that the effect of the decision of a Full Bench of this Court in Kali Mandal v. Ramsarbaswa Chucketbutty(2) has been considerably qualified, if not completely destroyed, by the explanation added to sec. 153 of the Bengal Tenancy Act, by Act I of 1907 (B.C). In answer to this contention, it has been argued by the learned Vakil for the landlord Opposite Party that as the order for reversal of the sale was made by an officer not specially empowered to exercise final jurisdiction, the order was open to appeal, and that it was immaterial that the decree had been made by an officer specially empowered. In our opinion, the contention advanced by the learned Vakil for the Petitioner is unsustainable.

    Sec. 153 provides—we quote only no much of the section as is applicable to the present case—that an appeal shall not lie from any order passed in the first instance in any suit instituted by a landlord for the recovery of rent, where the order is passed by any judicial officer-specially empowered by the Local Government to exercise final jurisdiction under the section, and the amount claimed in the suit does not exceed fifty rupees. It may be conceded that according to the case of Shyatna Charan Mittet v. Debendra Nath Muketjee, the term ‘suit’ in sec. 153 includes execution proceedings and that consequently the provisions of the section apply not merely to orders made in the course of a suit strictly so-called but also to orders made in the course of execution proceedings. It may also be conceded that the effect of the decision of the Full Bench in the case of Kali Mandal v. Ramsarbaswa Chuckerbutty has been considerably restricted by virtue of the explanation subsequently added to sec. 153. But still the question arises whether the test to be applied to determine whether an order is appealable under cl. (b) of sec. 153 is the qualification of the officer who passes that order or the qualification of the officer who passes the decree in the suit. In our opinion, there is no room for controversy that whether an appeal lies or not must be determined with reference to the qualification of the officer who passes the order against which the appeal is preferred. The language of sec. 153 cannot possibly admit of the interpretations suggested by the learned Vakil for the Petitioner, namely, that if the decree in the suit has been passed by an officer empowered to exercise final jurisdiction every order made in execution of the decree is final, irrespective of the qualification of the officer by whom such order may subsequently be passed. We must hold consequently that the first ground upon which the decision of the Subordinate Judge is assailed cannot be sustained.

    In so far as the second ground urged by the learned Vakil for the Petitioner is concerned, it is argued that the case has not been properly tried by the Subordinate Judge and that he has overlooked many important considerations, with the result that he has arrived at an erroneous and unjust decision. In our opinion, there is considerable force in this contention. The Subordinate Judge, in the first place, has taken an erroneous view of the fundamental point in the case. As we have already stated, the tenant judgment-debtor, on the 13th May 1908, made a deposit of Rs. 46-10-6 to the credit of the landlord when an order for reversal of the ex parte decree and the sale held on the basis thereof was made in his favour. The Subordinate Judge has held that the landlord was not bound to allow credit to the tenant for the deposit so made. No doubt sec. 153A does not specifically prescribe the mode of application of the money deposited by the person at whose instance the ex parte decree has been set aside. But it is reasonably clear that the intention of the Legislature was that if at the retrial the decree is ultimately made in favour of the landlord, he should, in the first instance, apply the sum deposited towards satisfaction of his decree. In the case before us, an examination of the record shows that the deposit was made to the credit of the landlord. Consequently it was not open to the judgment-debtor, at any stage subsequent to the deposit, to apply the money for his own be fit. As the money was deposited to the credit of the landlord, he was, in our opinion, bound to apply it in part satisfaction of the decree ultimately made in his favour, and was entitled to take out execution for the balance only of the judgment-debt. In the second place, it is clear that the Subordinate Judge has completely overlooked the bearing of the important circumstance that no application was made for delivery of possession by the landlord till some months after the decree had been made and the sale had taken place. As we have already stated, the writ for delivery of possession was not issued till the 18th November 1909. The first attempt was infructuous by reason of the default of the decree-holder him self and possession was not delivered till the 18th December. Two days later, the judgment-debtor made an application for reversal of the sale, and he contended that he had been kept by the fraud of the decree-holder from the knowledge of his right to have the sale set aside. The Subordinate Judge has not considered the truth of these allegations, but has examined the case from the opposite point of view. He has stated that the decree was made after contest, and that, upon the evidence, it was clear to him that the execution proceedings had taken place regularly. He has also relied upon the circumstance that mention was made of this sale in the plaint in a subsequent suit instituted by the landlord against the tenant and held that the inference was irresistible that the tenant must have read the plaint and have been thus apprised of the sale earlier than the 18th December 1909. But there is no evidence to show that the allegations in the plaint were ever brought to the notice of the tenant. What thus appear at first sight to be a finding of fact by the learned Judge turns out upon examination to be based upon no evidence at all. It cannot also be overlooked that the landlord valued the property at Rs. 30 for the purpose of an entry in the sale proclamation, although he was himself prepared at a subsequent stage to offer a bid of Rs. 68. The Subordinate Judge has overlooked the bearing of this circumstance and has also failed to consider that there was no bidder present at the sale except the landlord himself. As regards the value of the property, the Court of first instance found that the holding which comprises 9 bighas and 10 cottahs had been purchased by the landlord for Rs. 68. The Court also found that the ordinary rate at which lands of this description are sold in that part of the country is Rs. 50 a bigha. The Subordinate Judge has not examined the part of the case, but, upon what materials we are not aware, has stated that the value of the property must be at least Rs. 150. But if the value be taken to be Rs. 150 and not Rs. 500 as found by the original Court, it is clear that there was a deliberate misstatement of the value by the landlord for the purpose of the sale proclamation, and that he has purchased the property at less than half its value.

    Upon a review then of the whole case, it appears that the landlord took out execution for a larger sum than he was entitled to do; be deliberately misstated its value in the sale proclamation and in the absence of all competitors purchased it for a small fraction of its real value; and finally he designedly refrained from taking out writ for delivery of possession for several months after the sale had taken place. The circumstances under which the property has been sold, therefore, do not bear careful scrutiny. The Subordinate Judge when he reversed the decision of the Court of first instance was, in our opinion, seriously in error and there was no proper trial of the appeal by him.

    The result is that this rule is made-absolute and the order of the Court of the first instance restored. The Petitioner is emitted to costs in all the Courts. We assess the heating fee in this Court at three gold mohurs.

    Rule made absolute.

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    Comments

    Sheo Parsan Ray, Judgment-Debtor, v. Bishen Pargash Narain Singh Decree-Holder, Opposite Party.
    (Mar 30, 1911)