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Jago Mahton Judgment-Debtor v. Khirodhar Ram Decree-Holder .

Patna High Court
May 3, 1923
Smart Summary (Beta)

Structured Summary of the Opinion (Dawson Miller, C.J.)

Factual and Procedural Background

An instalment order dated 10 November 1910 required the appellant to pay a sum in 14 instalments. Several instalments were paid and thereafter there was default.

In 1921 the decree-holder applied for execution of the decree. The judgment-debtor (appellant) filed an objection to execution, asserting that execution was barred by limitation. Whether execution was barred depended on the factual question whether the 7th instalment had been paid.

The objection in the execution case was fixed for hearing on 8 April 1921. The judgment-debtor did not appear to support his objection; the Court dismissed the objection for default and, on the same day, ordered that the decree-holder should take further steps and directed the case to be put up again on the 11th of the month for orders. On the 12th of the month, no steps having been taken by the decree-holder, that execution was dismissed for default of prosecution.

A subsequent execution case was filed in September following (noted as being well within three years of the last execution case). The appellant (judgment-debtor) objected to the subsequent execution on the ground that the previous execution case (in which his objection had been dismissed) was itself barred by limitation.

Legal Issues Presented

  1. Whether a judgment-debtor may, in a later execution application, raise a plea of limitation in respect of an earlier execution application when the earlier application was dealt with by the Court (the objection was dismissed for default and the Court ordered the decree-holder to proceed), i.e., whether the earlier proceedings must be treated as a valid and subsisting execution case that precludes raising limitation thereafter.
  2. Whether an order for execution made by a competent court, though perhaps erroneous, must be treated as valid if not reversed, thereby precluding the judgment-debtor from later raising limitation as a bar.

Arguments of the Parties

Judgment-Debtor (Appellant)

  • Contended that execution was barred by limitation because, on the facts, the 7th instalment under the instalment order had not been paid.
  • Argued that the previous execution case itself was barred by limitation and therefore the subsequent execution was also barred.
  • Relied on decisions of the Calcutta High Court (Bholanath Dass v. Prafulla Nath Kundu and Khosal Chandra Roy v. Ukiladdi) to support the contention that he was not precluded from raising limitation where no adjudication on limitation was made in the previous proceedings.

Decree-Holder

  • Maintained that the 7th instalment had been paid (i.e., that execution was not barred by limitation).
  • Relied on the fact that, in the earlier execution proceedings, the Court had dismissed the appellant's objection for default and had ordered the decree-holder to proceed — a state of proceedings which, the decree-holder would contend, effectively treated the earlier execution case as valid and subsisting.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Mungul Pershad Dichit v. Girja Kant Lahiri The principle that if a competent Court treats an execution petition as a valid and subsisting execution case and makes orders in it (e.g., for attachment), then, unless reversed, that treatment precludes a judgment-debtor from later asserting in a fresh execution that the earlier petition was barred by limitation; a judge who decrees (or makes orders) must be taken to have determined the cause of action was not barred. The Court relied on and applied this authority to hold that the dismissal of the appellant's objection for default together with an order that the decree-holder should take steps amounted to a determination that the execution case was not barred by limitation; therefore the appellant could not later contest validity on limitation grounds.
Sheoraj Singh v. Kameshar Nath The headnote principle: "Although the execution of a decree may have been actually barred by time at the date of an application made for its execution, yet if an order for execution is made by a competent Court, having jurisdiction to try, whether such execution is barred by time or not, such order although erroneous must, if unreversed, be treated as valid." The Court accepted this principle as supporting the conclusion that an order made by a competent court, unreversed, must be treated as valid and thus precludes raising limitation in subsequent proceedings where the previous order showed the Court treated the execution as proceedings that could go forward.
Bholanath Dass v. Prafulla Nath Kundu Holds that where the earlier execution proceedings resulted in the Court refusing an application for execution and disallowing an objection but, on the facts, the Court had come to no decision on whether the proceedings were barred by limitation (i.e., the Court effectively took no decision on the limitation point), the judgment-debtor is not precluded from later raising the limitation point. The Court distinguished this authority, observing that in that case there had been no decision by the Court on the question of limitation and therefore the judgment-debtor was not precluded — unlike the present case where the Court had, by its orders, treated the execution case as valid and subsisting.
Khosal Chandra Roy v. Ukiladdi Where, in the earlier execution proceedings, nothing was done beyond issuing notice under Section 248 CPC and the execution was dismissed for default of the decree-holder, there was no adjudication (direct or indirect) that the decree-holder was entitled to proceed; therefore it remained open to the judgment-debtor in later proceedings to raise limitation. The Court distinguished this case on the ground that the earlier proceedings there showed no order for execution and no adjudication, whereas in the present case the earlier dismissal for default together with an order to proceed amounted to a decision that the execution was not barred.

Court's Reasoning and Analysis

The Court's reasoning proceeds in the following steps, grounded in the facts and the cited authorities:

  1. Identification of the central factual issue: whether the 7th instalment had been paid — this was characterised as "purely and simply a question of fact." The determination of limitation depended on that factual finding.
  2. Procedural posture in the earlier execution: the judgment-debtor was present in the earlier execution proceedings and had the opportunity to place evidence before the Court in support of his objection. He failed to appear on the hearing date (8 April 1921) and thus did not avail himself of the opportunity to prove his factual contention.
  3. Effect of the Court's orders in the earlier execution: the learned Judge dismissed the objection for default and contemporaneously passed an order directing the decree-holder to take necessary steps to proceed with execution (so that the case should be put up again). The Chief Justice treated that order as tantamount to a determination by the Court that the execution case was not barred by limitation.
  4. Reliance on authority: the Court applied the Judicial Committee decision in Mungul Pershad Dichit v. Girja Kant Lahiri and the Allahabad decision in Sheoraj Singh v. Kameshar Nath to support the legal proposition that an order made by a competent Court treating an execution petition as valid, if unreversed, must be treated as a valid determination and cannot later be impeached by the judgment-debtor on the ground of limitation.
  5. Distinction from Calcutta precedents: the Court examined Bholanath Dass and Khosal Chandra Roy and found them materially different. In those cases the earlier execution proceedings either resulted in no decision on limitation or no order for execution was made; therefore, in those circumstances, it was open to a judgment-debtor to raise limitation later. By contrast, in the present case the Court concluded there had been a decision (even if made on the basis of the object's default) that the execution was a fit one to try and not barred.
  6. Conclusion: because the earlier proceedings were treated by the Court as valid and subsisting and because the judgment-debtor had an opportunity to present evidence but defaulted, the judgment-debtor was precluded from raising the limitation plea in the subsequent execution application.

Holding and Implications

Holding: The appeal is DISMISSED (with costs).

Immediate effect on the parties: The appellant's contention that the subsequent execution was barred by limitation was rejected; the dismissal of the prior objection for default and the order that the decree-holder should proceed were treated as a determination that the execution case was not barred, and the appellant could not thereafter raise limitation in the fresh execution proceedings.

Broader implications: The Court applied existing authorities (Mungul Pershad Dichit and Sheoraj Singh) and distinguished contrary authorities from the Calcutta High Court. The opinion does not purport to establish a novel legal principle; it applies and reaffirms the existing rule that an order of a competent court treating an execution petition as valid, if unreversed, precludes a later limitation plea where the earlier proceedings involved decision (direct or indirect) on the question.

Additional procedural note from the opinion: Kulwant Sahay, J. agreed with the Chief Justice's opinion.

Show all summary ...

Dawson Miller, C.J:— This is an appeal on behalf of the judgment-debtor from an order of the Judicial Commissioner of Chota Nagpur passed in appeal ordering an execution case to proceed. The facts in so far as it is necessary to state them for the purpose of this appeal are these:—

2. On the 10th November 1910 an instalment order was passed against the appellant whereby he had to pay a certain sum in 14 instalments.

3. A number of these instalments were paid and then there was default. In 1921 the decree-holder applied for execution of the decree. In that execution case the judment-debtor filed an objection contending that the execution was barred by limitation. Whether or not the execution was barred by limitation was purely and simply a question of fact depending upon whether the 7th instalment under the instalment order had been paid or not. It was contended by him that it had not been paid. It was contended by the decree-holder that it had. The hearing of this objection in the execution case was fixed for the 8th April 1921. Upon that occasion the judgment-debtor did not appear in support of his objection and as there was nothing before the Court to shew that the execution case was barred by limitation the Court dismissed the objection for default and on the same day passed an order that the decree-holder should take further steps and directed the case to be put up again on the 11th of the month for orders. On the 12th of the month no steps having; been taken by the decree-holder his execution was dismissed for default of prosecution. The next execution case was filed in September following, that is to say well within three years of the last execution case. The appellant now objects that the case is barred by limitation on the ground that the previous execution case in which his objection was dismissed, was itself barred by limitation. It seems to me that the case is governed by the decision of the Judicial Committee in the case of Mungul Pershad Dichit v. Girja Kant Lahiri (1) where a very similar question arose although in that case there had been no direct adjudication in the previous, execution case upon the question of limitation. In that case a sixth petition for execution was filed on the 5th September 1874 the previous one having been filed on the 26th July 1871. The 6th execution case came to nothing and on the 22nd September 1877 a 7th application was presented. It was contended there that the last application was barred by limitation because upon the actual facts then disclosed it would appear that the previous petition had been barred by limitation although that question had never been directly decided. Their Lordships in that case refused to give effect to the contention of the judgment-debtor and it seems to me that the ground upon which they refused to allow the question to be raised was that the 6th petition for execution even though it may have been out of time had been treated by the Court as a valid and subsisting execution case. No objection had been taken by anybody and certain orders had been passed in that case and it did not in the circumstances he in the mouth of the Judgment-debtor to contend afterwards that case was barred by limitation. Their Lordships pointed out that the Subordinate Judge had jurisdiction upon an application of the 8th October 1874, which was an application in the 6th execution petition, to attach certain properties and to determine whether the decree was barred or not at that date and an order was made that the attachment should issue. I may point out that no point had been taken in that case by anybody as to whether or not the case was barred by limitation but their Lordships decided that, the question not having been raised, the order made, that the attachment must issue, must be taken as having concluded the matter and that the orders so made were proper and valid orders and could not after wards in another execution case be questioned on the ground of limitation. Their Lordships further pointed out that whether the Judge was right or wrong he must be taken to have determined that the application for attachment was not barred. The judgment proceeds thus:—“A Judge in a suit upon a cause of action is bound to dismiss the suit or to decree for the defendant, if it appears that the cause of action is barred by limitation. But if, instead of dismissing the suit, he decrees for the plaintiff, his decree is valid, unless reversed upon appeal; and the defendant cannot, upon an application to execute the decree, set up as an answer that the cause of action was barred by limitation.” It seems to me that what happened in the present case was this. When the judgment-debtor filed an objection to the execution that was a matter which the learned Judge had to decide and that was a matter which was to be determined upon questions of fact. The Judgment-debtor had appeared in that execution case and had every opportunity of placing evidence in support of his objection before the Court. When the time came, however, he failed to take advantage of that opportunity. Nothing was done and therefore the learned Judge dismissed his application and at the same time passed an order which was tantamount to this that the execution case should proceed. What he did really was to order that the decree-holder should take necessary steps to proceed with his execution case. That was according to the view I take of the ruling in the case of Mungul Pershad Dichit v. Girja Kant Lahiri a determination by the Court that the execution case was not in fact barred by limitation and whether that decision was right or wrong it cannot afterwards, I think, be questioned in a subsequent proceeding and therefore it is no longer open to the judgment-debtor to contend that execution case was not valid.

4. The same point arose for determination in the Allahabad High Court in the year 1902 and the facts of that case were very similar to those of the present case. In the case of Sheoraj Singh v. Kameshar Nath (2) the head note is as follows:—“Although the execution of a decree may have been actually barred by time at the date of an application made for its execution, yet if an order for execution is made by a competent Court, having jurisdiction to try, whether such execution is barred by time or not, such order although erroneous must, if unreversed, be treated as valid.” The facts of that case as I have said were very similar to the present. There an application for execution of a decree was struck off on the 15th January 1894. The next application was not made until May 1907 more than three years later. Notice of this application was served on the judgment-debtors and they filed objections but on the day fixed for hearing failed to support them and their objections were dismissed. The application for execution was, however, ultimately struck off by reason of the non-payment of process fees by the decree-holder in that case. It was held that it was not open to the judgment-bettors, on a subsequent application for execution being made, to plead limitation in respect of the previous application as a bar to the execution of the decree. Almost precisely the same facts arose in that case as arose in the present and I confess I can see no reason for differing from the view taken by the Allahabad High Court in that case.

5. Two other cases were however referred to which were decided in the Calcutta High Court and were relied upon by the appellant. The first was that of Bholanath Dass v. Prafulla Nath Kundu (3). In that case after several adjournments granted at the instance of the decree-holder, neither party having appeared at the date of the hearing, the Court by its order refused an application for execution and at the same time disallowed the objection of the judgment debtor. On a subsequent application by the decree-holder the judgment-debtor again objected to the execution alleging that inasmuch as the previous application was barred by limitation the subsequent application was also barred. It was held in such circumstances that the judgment debtor was not precluded from raising the objection that the previous application was barred by limitation. It appears to me that was an entirely different case from the present and one in which entirely different considerations arose because no decision of any sort was come to in that case by the Court in the previous execution case. An execution case was started no doubt and certain objections were taken by the judgment-debtor but nobody after that appeared and the Court came to no decision upon any question. All that the Court did was to dismiss the execution case and at the same time dismissed the objections. In fact having dismissed the execution case it was not necessary for the Court any longer to consider the objections. It cannot be said in such a case that the Court had determined whether the question of limitation was or was not a bar to the execution case proceeding. In the present case it must be taken that the Court had decided that there was no such bar because the very point was taken and decided. Although it was decided merely upon the default of appearance of the objector still at the same time the Court did make an order which showed that it considered that the execution case was a valid and subsisting execution case, and not barred.

6. The other case referred to of the Calcutta High Court was that of Khosal Chandra Roy v. Ukiladdi (4). Again the facts of that case were very different from the present. In that case it appears that in the previous execution case nothing was done, that is to say that no order for execution was made. Nor was any order made from which it could be judged that the Court had considered one way or the other that the execution case could proceed, and the learned Judges there considered that it was clear that no order for execution was made in the course of the proceedings taken on the basis of the previous application for execution. Nothing was done beyond the issue of notice under Section 248 of the CPC requiring the judgment-debtors to shew cause why the decree should not be executed against them. After service of notice the execution proceedings were dismissed for default of the decree-holder. There was no adjudication by the Court directly or indirectly that the decree-holder was entitled to proceed with the execution and on that ground the Court held that as there had been nothing in the previous execution case from which it could be said that the Court had decided one way or the other as to whether the proceedings were barred by limitation it was still open to the judgment-debtor in subsequent proceedings to take the point. Both those cases appear to me to be materially different from the facts of the present case. Once one arrives at the conclusion that the Court had decided either directly or indirectly that the previous execution case was a fit one to try and therefore not barred by limitation there is an end to the matter and it is not open to either of the parties thereafter to raise the same question in a fresh execution. For these reasons it seems to me that the present appeal must fail and is accordingly dismissed with costs.

7. Kulwant Sahay, J.:— I agree.

8. Appeal dismissed.