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citation codes
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  • Order XXI, Rule 91 and Article 166, Schedule I of the Limitation Act
  • Order XXI, Rule 93 of the Code of Civil Procedure,
  • Section 6(c) and (e) Act X of 1897,
  • Section 6(c), Act X of 1897.
  • Rule 93 and Article 181
  • Order XXI, Rule 93,
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
Acts
  • Order XXI, Rule 91 and Article 166, Schedule I of the Limitation Act
  • Order XXI, Rule 93 of the Code of Civil Procedure,
  • Section 6(c) and (e) Act X of 1897,
  • Section 6(c), Act X of 1897.
  • Rule 93 and Article 181
  • Order XXI, Rule 93,
Smart Summary

Structured Summary of the Opinion

Factual and Procedural Background

The dispute concerns a purchaser at a Court sale (the plaintiff) who purchased property sold under decree and subsequently sued for possession of the property. The plaintiff's suit for possession failed. The principal procedural question was whether the plaintiff could recover the purchase-money by a regular suit or was limited to seeking relief by petition under Order XXI, Rule 93 of the Code of Civil Procedure (the present Code).

Historically the plaintiff had made the purchase and instituted his suit for delivery of the land and profits at a time when Sections 313 and 315 of the then-applicable Code were in force. The substantive determination against the plaintiff occurred in 1909, after the present Code (including Order XXI, Rule 93) had come into force. The Sub-Judge initially gave a decree in the plaintiff's favour; on appeal questions arose about the proper remedy and the effect of the change in law. The appellate court had taken the view that the purchaser could only proceed under Order XXI, Rule 93; the present opinion restores the Sub-Judge's decree subject to modification of interest.

Legal Issues Presented

  1. Whether a Court-sale purchaser whose suit for possession has failed may recover the purchase-money by a regular suit, or whether recovery is available only by petition under Order XXI, Rule 93 of the Code of Civil Procedure.
  2. Whether a change in the law (replacement of Sections 312/313/315 by Order XXI, Rule 93 and related provisions) deprived the plaintiff of a right to sue that had accrued before the repeal, and how Section 6(c) and (e) of Act X of 1897 applies to such a contingency.
  3. If the accrual of the plaintiff's right is dependent on a subsequent determination (i.e., failure of his possession suit), at what point did the right accrue for the purpose of preservation by the repealing statute?

Arguments of the Parties

Plaintiff's Arguments

  • The plaintiff relied on the special circumstances that he made the purchase and brought his suit for possession while Sections 313 and 315 of the then-applicable Code governed his rights; under that law he would have been entitled to repayment if the sale was set aside or if it was found the judgment-debtor had no saleable interest and the purchaser was deprived of it.
  • The plaintiff argued that because he was originally entitled to sue, the subsequent change in law (Order XXI, Rule 93) should not deprive him of the right to prosecute his suit for repayment.

Defendant's Arguments

  • The defendant contended that the plaintiff's right of action accrued only when the plaintiff's suit for possession was determined against him (i.e., on the decision in 1909), so that the right had not accrued before the present Code came into force. To support this, the defendant relied on Nilakanta v. Imam Sahib and Mohideen Imbrahim v. Mahomed Mura Levai, and related authorities.
  • In his written statement, the defendant also contended that the judgment-debtor should be made a party; the court observed this point could not be considered because it was not pressed at trial.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Mohideen Imbrahim v. Mahomed Mura Levai (1912) 23 M.L.J. 487 Held that under the present Code the purchaser's right of suit was dismissed and recovery was limited to special statutory procedure; one judge was unwilling to negative the right but expressed no decided opinion; the other negatived it. The court treated this decision as one of the authorities taking the view that a statutory remedy (application) replaces a substantive right to sue; cited as a view the court did not follow generally in the reasoning about accrual but referenced the authority's stance.
Parvathi Ammal v. Govindasami Pillai (1916) I.L.R. 39 Mad. 803 Confirmed Mohideen Imbrahim obiter. The court noted it confirmed the negative view obiter, as part of the body of older authority limiting a purchaser to statutory procedure.
Rustomji Ardeshir Irani v. Vinayak Gangadhar Bhat (1911) I.L.R. 35 Bom. 29 Held purchaser's right of suit based on existence of contractual relation/warranty implied from the Code. The court referred to this as the contrary view (supporting a right of suit) but stated it could not follow the reasoning that implies a warranty of title in Court sales.
Dorab Ally Khan v. Abdool Azeez (1878) 5 I.A. 116 Referenced in relation to warranty doctrines applicable to sales. The court noted it could not follow the reasoning and used it to illustrate limits of applying warranty-of-title doctrines to Court sales.
Sundara Gopalan v. Venkata Varada Ayyangar (1894) I.L.R. 17 Mad. 228 Referenced in relation to warranty doctrines and Court sales. The court cited it to support the proposition that, absent fraud, warranty of title cannot be applied to Court sales beyond the processual remedies the law permits.
Nilakanta v. Imam Sahib (1893) I.L.R. 16 Mad. 361 Cited for the proposition that a plaintiff's cause of action accrues when suit against the person in possession is determined against him. The defendant relied on this decision; the court considered it but analyzed whether 'cause of action' accrual is the same as the 'right' accruing for purposes of the saving clause in Act X of 1897.
Sidheswari Prasad Narain Singh v. Goshain Mayanand (1913) I.L.R. 35 All. 419 Approved Mohideen Imbrahim; cited regarding accrual of cause of action. The court acknowledged this approval as part of the line of authority for the defendant's position but examined distinctions between 'cause of action' and 'right' under the saving provision.
Read v. Brown (1888) 22 Q.B.D. 128 Definition of "cause of action" as every fact necessary for plaintiff to prove to support his right. The court used the definition to distinguish between the accrual of a cause of action and the accrual of a "right" for the purposes of the repealing statute.
Colonial Sugar Refining Company v. Irving (1905) A.C. 369 Held that a suspended and contingent right of appeal vested in the suitor and was preserved despite an intervening change in law. The court relied on this decision to support the proposition that a contingent right can be regarded as vested before a change in law and thus saved by Section 6(c) of Act X of 1897.
Kalinga Hebbra v. Narasimha Hebbra (1911) 21 M.L.J. 631 Followed Colonial Sugar as to preservation of right of appeal. The court cited it as follow-up authority for preserving contingent legal remedies.
Salimamma v. Valli Husanabba Beari (1911) 21 M.L.J. 764 Followed Colonial Sugar as to preservation of contingent right of appeal. Used as supporting authority for the same principle.
Madurai Pillai v. Muthu Chetty (1915) I.L.R. 38 Mad. 823 (F.B.) Applied the preservation principle to another consequential and contingent remedy. The court cited it for the proposition that contingent remedial rights may be preserved by construction under the saving provision.
Rajah of Pittapur v. Venkata Subba Row (1916) I.L.R. 39 Mad. 645 Applied the preservation principle even more generally; Full Bench held new limitation rule must be read subject to implied exception where it would destroy an existing right of suit. The court relied on this Full Bench holding in support of reading a new limiting rule subject to an implied exception to avoid absolute destruction of an existing right.
Abbott v. Minister for Lands (1895) A.C. 425 Held that a mere community right to avail oneself of an enactment, without any act by the individual, is not a "right accrued" under the saving clause. The court distinguished this case on the grounds that the plaintiff had acted (sued) to avail himself of his right, and that the plaintiff's right was definite and enforceable from its origin; thus Abbott did not control the result.
Gopeshwar Pal v. Jiban Chandra Chandra (1914) I.L.R. 41 Calc. 1125 Stated that a repealing enactment cannot impose an impossible condition on pain of forfeiture of a vested right. The court cited it to support the rule that repealing statutes should not be construed to destroy existing rights by imposing impossible compliance conditions.
Rodger v. The Comptoir D'Escompte De'Paris (1871) L.R. 3 P.C. 465 Authority cited in relation to entitlement to interest at the usual Court rate. The court relied on this authority (along with two Indian decisions) to hold that the plaintiff was entitled only to interest at the usual Court rate, not the 12% rate awarded by the Sub-Judge.
Ayyavayyar v. Shastram Ayyar (1886) I.L.R. 9 Mad. 506 Authority on the appropriate rate of interest to be awarded by Court. Used by the court to support reducing the interest awarded to the usual Court rate.
Arunachellam v. Arunachellam (1892) I.L.R. 15 Mad. 203 Authority on interest; cited with the other authorities for limiting interest to usual Court rate. Applied to justify awarding interest at the usual Court rate rather than the rate claimed in the plaint.

Court's Reasoning and Analysis

The court's reasoning proceeded in multiple steps, each grounded on textual statutory analysis, established precedent, and principles of statutory construction:

  1. The court framed the overarching question: whether a purchaser at Court sale, whose suit for possession has failed, may recover purchase-money by ordinary suit or is limited to the special remedy provided by Order XXI, Rule 93 of the present Code.
  2. It reviewed pre-existing authorities. Some decisions (e.g., Mohideen Imbrahim and Parvathi Ammal) were taken to deny a substantive right to sue, confining the purchaser to statutory procedure; other decisions (e.g., Rustomji Irani) recognized a right of suit founded on an implied contractual warranty. The court rejected the warranty-based reasoning for Court sales, reasoning that:
    • In Court sales "nothing passes beyond the right, title, and interest of the debtor."
    • There is no guarantee as to the existence or extent of that interest.
    • Therefore, absent express fraud or a statutory warranty, a purchaser has no substantive cause of action against the decree-holder apart from the statutory remedy.
    On this basis, the court stated it could not follow the reasoning that implies a warranty of title in Court sales.
  3. The court then addressed the plaintiff's particular circumstance: the purchase and the initiation of a suit under the old Code when Sections 313 and 315 were in force. The key issue was whether the plaintiff's right to repayment "accrued" before the repeal so as to be preserved by Section 6(c) and (e) of Act X of 1897 (the saving provision).
  4. The court analyzed the meaning of "accrued" or "right" for the saving clause as distinct from the notion of "cause of action" (as used in Read v. Brown). While certain authorities treated accrual in terms of the facts necessary to establish the cause of action (i.e., after determination against the person in possession), the court reasoned that:
    • The plaintiff's primary right arose at the date of purchase (the right primarily to the property), with a secondary, contingent branch (the right to repayment) which would become enforceable if and when the primary right failed.
    • If 'accrual' were read to mean only the point when the contingent branch became enforceable (i.e., after determination against the plaintiff), the consequence would be anomalous because the adverse title existed at the date of purchase and subsequent proceedings could not change that fact.
    • Therefore the better construction is that the purchaser's right (including the contingent branch to repayment) had 'accrued' before repeal for the purposes of the saving clause.
  5. The court supported this construction with authority: Colonial Sugar (and cases following it) showed that contingent or suspended rights (e.g., an appeal contingent on an adverse decision) may be regarded as vested and preserved by a saving provision. The court distinguished Abbott v. Minister for Lands on the ground that Abbott concerned a mere option exercisable only by a further act, whereas the plaintiff here had already taken action (brought a suit) and had a definite enforceable right from its origin.
  6. The court invoked rules of statutory construction: a repealing statute should not be construed to deprive an existing right of its substance by imposing compliance conditions that would be impossible to perform after repeal. It cited Gopeshwar Pal and Rajah of Pittapur to support the proposition that limitation rules or new procedural conditions must be read with an implied exception where their strict operation would destroy rights that existed when they came into force.
  7. Applying these principles, the court concluded that the plaintiff's right to repayment had accrued before the repeal of the former Code provisions and was therefore preserved; the plaintiff could proceed to enforce that right notwithstanding the change to Order XXI, Rule 93.
  8. On secondary points, the court declined to entertain the defendant's contention (in written statement) that the judgment-debtor should be made a party because it was not pressed at trial; and it held that the plaintiff was entitled only to interest at the usual Court rate (6%), rather than the 12% rate awarded by the Sub-Judge, relying on established authorities for the appropriate rate of interest.

Holding and Implications

Holding: The court restored the Sub-Judge's decree in favour of the plaintiff, subject to modification of the interest awarded. Specifically, the plaintiff is entitled to interest at the usual Court rate of 6% instead of the 12% awarded by the Sub-Judge, with subsequent interest at 6% on the amount so decreed. The parties will give and receive proportionate costs.

Implications:

  • The direct consequence of the decision is the restoration of the Sub-Judge's decree with the adjusted interest rate (6%).
  • The court concluded that where a purchaser at a Court sale has a primary right to the property and a contingent right to repayment (becoming enforceable on failure of the primary remedy), that right may be regarded as having accrued before repeal of earlier statutory provisions and preserved by the saving provision (Section 6(c) and (e) of Act X of 1897). However, the opinion does not state that it establishes a broader rule beyond the facts and authorities discussed.
  • No new procedural mechanism was created; the judgment applies the saving construction and existing precedent to the parties' dispute; the decision's practical effect is limited to the parties and the legal positions addressed in the opinion.

Judge: Phillips, J. (with concurrence noted).

    Tirumalaisami Naidu v. Subramaniam Chettiar

    1. The question before us is in its most general form whether the plaintiff, a Court-sale purchaser, whose suit for possession of the property put up for sale has failed, is entitled to recover the purchase money by suit or whether, as the lower Appellate Court held, he can do so only by petition under Order XXI, Rule 93 of the Code of Civil Procedure, Such a right of suit in cases, to which the present Code can be applied without reservation, was dismissed in Mohideen Imbrahim v. Mahomed Mura Levai (1912) 23 M.L.J. 487, one learned Judge being unwilling to negative it, though expressing no decided opinion, and the other negativing it directly, because the purchaser had no longer a substantive right to recover, but only a statutory right to do so by application in special, circumstances; and the latter opinion was confirmed obiter in Parvathi Ammal v. Govindasami Pillai (1916) I.L.R. 39 Mad. 803. The contrary view however has been taken in Rustomji Ardeshir Irani v. Vinayak Gangadhar Bhat (1911) I.L.R. 35 Bom. 29 at p. 31, the purchaser's right of suit being based on the existence of a contractual relation between him and the decree-holder and of a Warranty by the latter of some saleable interest to be implied from the provisions of the Code. With all respect I cannot follow the reasoning Dorab Ally Khan v. Abdool Azeez (1878) 5 I.A. 116 and Sundara Gopalan v. Venkata Varada Ayyangar (1894) I.L.R. 17 Mad. 228 are referred to in the judgment. But they show that in the absence of fraud (and none was referred to there or has been in the present case) the doctrine of warranty of title cannot be applied to Court sales or be the basis of proceedings, except those, which the processual law permits; and, if there is no warranty between the decree-holder and purchaser, there was no other basis for a contractual relation between them, since the former had no ownership of the property sold. In a Court-sale nothing passes beyond the right, title, and interest of the debtor; and, as there is no guarantee that it exists or is of any particular extent, the purchaser would have no cause of action apart from the Statute. The former code accordingly conferred on him a special right, which the present Code has restricted and for the enforcement of which it provides special procedure. Taking this view I am against the plaintiff's general contention.

    2. The plaintiff however has relied mainly on the special circumstances of his case, that he made his purchase and brought his suit for possession, impleading the defendant, when his right was regulated by sections 313 and 315 of the code then in force. In that suit he asked for delivery of the suit land and profits. It was decided against him in 1909, after the provisions referred to had been superseded by Order XXI, Rule 93, under which, as I have held, his right is only to apply to the Court for a refund. It is not disputed that he was originally entitled to sue. The argument for consideration is only that the change in the law did not deprive him of his right to do so.

    3. The effect of a change in the law is to be ascertained in the absence of special provision in the new enactment (and section 154 of the present code preserves only existing rights of appeal, not other remedies), by reference to Section 6(c) and (e) Act X of 1897, its material portion being that a repeal:

    shall not (c) affect any right or privilege acquired or accrued under the enactment repealed or (e) affect any legal proceeding or remedy in respect of such right or privilege; and any such legal proceeding or remedy may be instituted, continued or enforced as if the repealing Act had not been passed.

    4. The first question then is whether the plaintiffs right to repayment of his purchase money had accrued to him before the change in the law. Under the former law, Section 315 of the former Code, he would have been entitled to receive back the money, when the sale was set aside under Section 312 or 313 or, the contingency we are concerned with:

    When it was found that the judgment-debtor had no saleable interest in the property and the purchaser (plaintiff) was for that reason deprived of it.

    5. Was it so found and was the plaintiff deprived, as the defendant contends, only when the former's suit failed in 1909, after the present code came into force? In that event his right had not accrued and his remedy was affected, or did the right accrue earlier before his suit was filed in 1907?

    6. To support the former view the defendant has relied on the decisions in Nilakanta v. Imam Sahib (1893) I.L.R. 16 Mad. 361 and Mohideen Imbrahim v. Mahomed Mura Levai (1912) 23 M.L.J. 487 the latter approved in Sidheswari Prasad Narain Singh v. Goshain Mayanand (1913) I.L.R. 35 All. 419, in which it was held that the plaintiff's cause of action for a claim such as that before us, accrues, when there has been a suit against the person in possession on its determination against him. But though such determination may be part of plaintiff's cause of action in he sense in which the term is used in Read v. Brown (1888) 22 Q.B.D. 128 and subsequent Indian cases, as including:

    Every fact, which it would be necessary for the plaintiff to prove, if traversed to support his right to the judgment of the Court.

    it does not follow that it is necessary to the accrual of his "right" the term used in the enactment under consideration. If it did, it would follow further that his right was dependent on and arose only on his becoming conscious of it in consequence of his discovery that the debtor had no saleable interest and of his deprivation of the property by reason thereof, although the title opposed to his own must have existed at the date of his purchase and could not have been affected by any proceedings subsequent to it. It is possible to avoid this anomaly only by holding that his "right" dates from his purchase and is primarily to the property and secondarily in the alternative and contingently to repayment, the latter branch of it becoming enforceable only on failure in respect of the former. If this view is correct, the plaintiff's right had accrued before the repeal of Section 315 of the former Code. I refer next to authority for the position that such an alternative and contingent right will be preserved under Section 6(c), Act X of 1897.

    7. In Colonial Sugar Refining Company v. Irving (1905) A.C. 369 the question was as to the effect on a right of appeal direct to the Privy Council of a change in the law pending the trial of an action, which would have interposed an appeal to the Local High Court. That right of appeal existed at the date of the change in the law in the sense that it had been conferred by law on every suitor; it was suspended and contingent in the sense that it would be exercisable, only when and if the decision were given against him. It was held not only that the right was not one merely of procedure, but also that it had vested in the suitor, before the change took place. This case was followed in Kalinga Hebbra v. Narasimha Hebbra (1911) 21 M.L.J. 631 and Salimamma v. Valli Husanabba Beari (1911) 21 M.L.J. 764 with reference to the right of appeal; and in Madurai Pillai v. Muthu Chetty (1915) I.L.R. 38 : Mad. 823 (F.B.) with reference to another consequential and contingent remedy. In Rajah of Pittapur v. Venkata Subba Row (1916) I L.R. 39 Mad. 645 it was applied even more generally in a manner, to which I return. On the other hand, Abbott v. Minister for Lands (1895) A.C. 425 was cited for the defendant, as deciding that a mere right to take advantage of the provisions of a repealed statute is not a "right accrued." But the judgment runs:

    The mere right (assuming it to be properly sO called) existing in the members of the community or any class of them to take advantage of an enactment without any act done by an individual towards availing himself of that right, cannot properly be deemed a 'right accrued' within the meaning of the enactment.

    and the case can accordingly be distinguished on two grounds. Firstly, if the doing of an act is necessary, the plaintiff before us had done one towards availing himself of his right, when he sued the person in possession. Secondly, the plaintiff's right differed essentially from the right (if it was properly so called), which the Judicial Committee was considering; for the latter was a mere option to take up land, enforceable against the Minister for Lands only after it had been exercised by the making of an application with the necessary formalities and a specification of the land claimed, whilst the former was definite and enforceable from its origin. This case therefore is in no way opposed to the conclusion, which is otherwise adequately supported that plaintiff's right, including the branch of it, which he is now enforcing, had accrued, "before the former Code was repealed.

    8. That conclusion has been reached on direct consideration of the law. But it can be supported also by reference to a rule of construction. Although the plaintiff was proceeding in a legal way towards recognition of his right to repayment and could have been met by no objection, if the law had not changed, in terms the change made his further progress impossible; and in the absence of any specific provision or necessary implication the repealing statute will therefore not be construed against him. His only course under the present Code would have been to more for the setting aside of the sale under Order XXI, Rule 91 and Article 166, Schedule I of the Limitation Act within thirty days of its confirmation, and to apply for repayment under Rule 93 and Article 181 within three years from its being set aside. This course he could not take since his first application would have been out of time at the date of the repeal. A repealing enactment cannot impose an impossible condition on pain of forfeiture of a vested right or be applied to cases, in which its provisions cannot be obeyed, Gopeshwar Pal v. Jiban Chandra Chandra (1914) I.L.R. 41 Calc. 1125; and similarly it was held by a Full Bench of this Court in Rajah of Pittapur v. Venkata Subba Row (1916) I.L.R. 39 Mad. 645 that a new rule of limitation must be read subject to an implied exception in cases where its provisions would absolutely destroy the right of suit, which was in existence when that rule came into force. On this ground also the plaintiff is entitled to succeed.

    9. Two other points have been referred to in argument. Firstly the defendant contended in his written statement that the judgment-debtor should be made a party. This cannot be considered since it was not pressed at the trial. Secondly the Sub-Judge awarded interest up to date of suit at 12 per cent, the rate claimed in the plaint. The interest at the usual Court rate is however all that plaintiff is entitled to in accordance with the authorities. Rodger v. The Comptoir D'Escompte De'Paris (1871) L.R. 3 P.C. 465, Ayyavayyar v. Shastram Ayyar (1886) I.L.R. 9 Mad. 506 and Arunachellam v. Arunachellam (1892) I.L.R. 15 Mad. 203.

    10. The result is that the Sub-Judge's decree is restored subject to the modification that the plaintiff will be entitled to interest at 6 per cent instead of 12 per cent to date of that decree and subsequent interest at 6 per cent on the amount so decreed. The parties will give and receive proportionate costs.

    Phillips, J.

    11. I agree.

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    Comments

    Tirumalaisami Naidu v. Subramaniam Chettiar
    (Dec 15, 1916)