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  • S. 11 of the Court Fees Act
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  • S. 11 of the Court Fees Act
Smart Summary

Factual and Procedural Background

The appellant was the decree-holder in O.S. No. 309 of 1930 on the file of the District Munsif's Court of Valangiman at Kumbakonam and had obtained a decree for past and future profits dated 7 December 1933. The appellant first filed an execution petition on 24 February 1934 claiming enforcement of that decree but did not pay the court-fee asserted to be payable in respect of the future profits; the petition nevertheless included a claim for past profits. That petition was returned on 28 February 1934 for correction of defects and for payment of the court-fee; defects other than the fee were complied with but the court-fee was not paid. The petition was posted for hearing on 16 April 1934, and because the appellant's vakil was absent, it was dismissed for default on 27 April 1934.

A second execution petition, seeking the same reliefs, was filed on 26 April 1937 again without payment of court-fees for the claim to future profits. That application was returned as defective; the defects were later complied with and the petition was posted for hearing on 23 June 1937 on the question whether court-fee was payable for mesne profits. On 9 July 1937 the Court held that court-fee was payable and allowed time until 20 July 1937 for payment; the court-fee was not paid and the petition was dismissed on 20 July 1937.

The execution petition which gave rise to the present appeal was filed on 20 July 1940. The judgment-debtors contended that this petition was barred by limitation and that the orders on the two prior applications could not give any fresh starting point for limitation. The first Court held the earlier applications were made in accordance with law and that the orders dismissing them afforded a fresh starting point of limitation, so the 1940 petition was in time. On appeal by the judgment-debtors the lower appellate Court (the learned Subordinate Judge) held that the two prior petitions were not in accordance with law because the requisite court-fee had not been paid and therefore those orders could not furnish a fresh starting point; the lower appellate Court dismissed the petition. The appellant then brought the present appeal to the Court whose opinion is summarized here.

Legal Issues Presented

  1. Whether an execution petition filed without payment of the court-fee claimed to be payable in respect of future (mesne) profits is a petition "in accordance with law" so that the filing and any subsequent dismissal of that petition can furnish a fresh starting point for limitation.
  2. Whether non-payment of a court-fee that is a condition precedent to execution (but arguably not to filing) renders an execution petition invalid or merely affects the grant of relief.
  3. Whether the fact that prior execution petitions were unnumbered or returned/dismissed (for defects or default) means they were not admitted and therefore cannot operate as petitions in accordance with law to stop limitation.

Arguments of the Parties

Appellant's Arguments

  • The appellant (decree-holder) contended that no court-fee was payable in respect of the future (mesne) profits, and therefore the earlier execution petitions were proper and in accordance with law.
  • By implication, the appellant argued that the earlier petitions and the orders dismissing them could furnish a fresh starting point of limitation for the later (1940) execution petition, making it timely.

Respondents' (Judgment-debtors') Arguments

  • The respondents contended that the 1940 petition was barred by limitation and that the earlier applications could not furnish any fresh starting point because they were not "in accordance with law" — specifically because the requisite court-fee for the claim to future (mesne) profits had not been paid.
  • The respondents also argued that the two prior petitions were unnumbered and therefore not admitted; relying on authority, they submitted that such unnumbered or unregistered applications cannot be treated as applications in accordance with law.
  • The respondents' counsel referred to an unreported judgment in C.M.A. No. 90 of 1941 in support of the view that an unregistered or improperly re-presented application does not furnish a fresh starting point of limitation.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Lakhmichand v. Gokaldas (Decision of the Judicial Commissioner of Sind) Held (as relied on by the Subordinate Judge) that petitions lacking proper court-fee were not in accordance with law. The Court said the Subordinate Judge relied on this decision but held he was not justified in following it in view of contrary decisions of this Court and the Bombay High Court.
Alagirisami Naidu v. Venkatachalapathi Iyer Established that a provision requiring payment before execution is a condition precedent to execution, not to the filing of an execution petition; such a petition may be "in accordance with law" even if the condition is not then fulfilled. The Court relied on this decision to support the proposition that non-payment of a condition precedent to execution does not make the filing of the execution petition unlawful.
Syed Hussain Saib Rowthen v. Rajagopala Mudaliar Held that if a decree can only be executed upon fulfilment of a condition, the absence of fulfilment when the execution petition is filed does not make the petition not in accordance with law. The Court invoked this authority as precedent for treating non-fulfilment of a condition precedent to execution as not invalidating the filing of an execution petition.
Ramasami Ayyan v. Seshayyangar Held that an insufficiently stamped execution application (one anna instead of eight annas) was nevertheless "in accordance with law" and could save limitation. The Court considered this a strong authority supporting the view that procedural defects in stamping/fees do not render a petition not in accordance with law for limitation purposes.
Nathubai Kasandas v. Pranjivan Lalchand (Bombay High Court) The Bombay High Court decision that payment demanded as a condition precedent to execution is a condition precedent to granting relief, not to the making (filing) of the application. The Court cited this as further support from a High Court for the proposition that non-payment of the fee does not render the petition not in accordance with law.
Sathappa Chettiar v. Chockalingam Chettiar Discussed in relation to petitions being unnumbered/unregistered; in that case defects connected with Order 21, Rules 10–14 meant the petition was not in accordance with law and dismissal was treated accordingly. The Court distinguished this decision on its facts, noting the reference to unnumbered status was incidental and that the defects there were specific failures under Order 21, Rules 10–14; thus it was not authority for a broad rule that any unnumbered petition is not in accordance with law.
C.M.A. No. 90 of 1941 (unreported) Considered whether an order on a petition returned for amendments (and not re-presented in time) furnishes a fresh starting point of limitation; held it did not. The Court observed that this unreported decision turned on the absence of any final order on the prior application (it was returned and not properly re-presented in time) and therefore it did not apply to the facts of the present case.

Court's Reasoning and Analysis

The Court proceeded by examining the legal effect of non-payment of court-fee purportedly payable in respect of future (mesne) profits and whether that non-payment rendered the earlier execution petitions not "in accordance with law" for the purpose of computing limitation.

The Court noted the wording of S. 11 of the Court Fees Act (quoted in the opinion): "The decree shall not be executed until the difference between the fee actually paid and the fee which would have been payable had the suit comprised the whole of the profits or amount so decreed shall have been paid to the proper officer." The Court treated that provision as specifying a condition to the execution of the decree (payment before execution), not a precondition to the filing of an execution petition.

The Court relied on prior authorities: Alagirisami Naidu v. Venkatachalapathi Iyer and Syed Hussain Saib Rowthen v. Rajagopala Mudaliar, which held that such conditions are conditions precedent to execution and not to the filing of the petition; accordingly, an execution petition filed before the condition is fulfilled may nonetheless be "in accordance with law." The Court also relied on Ramasami Ayyan v. Seshayyangar, in which an insufficiently stamped application was held to be in accordance with law and to preserve limitation.

The learned Subordinate Judge had relied on Lakhmichand v. Gokaldas (Judicial Commissioner of Sind) to hold the prior petitions invalid for want of the requisite court-fee. The Court disagreed with the Subordinate Judge's choice to follow that decision in preference to the cited decisions of this Court and the Bombay High Court, observing that those higher authorities supported the opposite view.

With respect to the respondents' secondary contention that the earlier petitions were unnumbered and therefore not admitted, the Court examined Sathappa Chettiar v. Chockalingam Chettiar and concluded that the reference to a petition being unnumbered there was incidental: in that case the petitioner had failed to comply with specific requirements under Order 21, Rules 10–14, and the dismissal was rightly treated as being for non-compliance with procedural requisites. The Court held that Sathappa Chettiar could not be read as establishing a general rule that an execution petition dismissed without numbering is necessarily not in accordance with law.

The Court also considered an unreported appellate decision (C.M.A. No. 90 of 1941) relied on by the respondents and explained that that case turned on the absence of any final order on the prior petition (it had been returned and not re-presented in time); the Court found those facts distinguishable and inapplicable to the present matter, where the earlier petitions were heard on the question of court-fee and orders were made.

On this combined analysis the Court concluded that, in the circumstances of this case, the earlier execution petitions were "in accordance with law" despite the non-payment of the court-fee related to future profits and therefore their dismissal could afford a fresh starting point of limitation for the later petition.

Holding and Implications

Holding: The Court set aside the order of the lower Court and remanded the petition to the first Court to be proceeded with in accordance with law, holding that the 1940 execution petition was in time and not barred by limitation.

Implications and immediate consequences:

  • The petition filed on 20 July 1940 is held to be timely because the prior execution petitions were treated as petitions in accordance with law and their dismissals supply a fresh starting point of limitation.
  • The matter is remanded to the first Court for further proceedings consistent with this judgment.
  • The respondents were ordered to pay the appellant's costs both in the present Court and in the lower appellate Court. The Court also recorded "Leave refused."
  • The opinion confines itself to the direct effect on the parties (remand, costs, and declaration that the petition is not barred by limitation) and does not purport to lay down any novel, binding principle of law beyond applying and following the existing authorities it cites.
N.R.R

    Marimuthu Pillai v. Abdul Ganni Rowther And Another

    JUDGMENT

    The appellant was the decree-holder in O.S No. 309 of 1930 on the file of the District Munsif's Court of Valangiman at Kumbakonam. He had obtained a decree for past and future profits on the 7th December 1933. He filed a petition to execute the decree on the 24th February 1934 without paying the court-fee payable on the relief claimed in respect of the future profits, but he had included in it the claim in respect of the past profits also. It was returned on the 28th February 1934 for complying with certain defects and also for payment of the court-fee. The defects were complied with but the court-fee was not paid. The appellant's contention was that no court-fee was payable. The petition was therefore posted to be heard in Court on 16th April 1934. The Vakil happened to be absent and the petition was dismissed for default on the 27th April 1934. Another execution petition was filed on the 26th April 1937 for the very same reliefs which were prayed for in the previous application but without payment of court-fees in respect of the claim for future profits. That application also was defective and was returned. The defects were complied with and the petition was posted to the 23rd June 1937 for being heard on the question whether any court-fee was payable in respect of the claim for mesne profits or not. The Court pronounced an order on the 9th July 1937 that court-fee was payable and gave the appellant time till the 20th July 1937 for payment of the same. The court-fee was not paid and the petition was dismissed on 20th July 1937. The execution petition out of which the present appeal arises was filed on the 20th July 1940. The judgment-debtors contended that the petition was barred by limitation and that the orders on the two prior applications would not furnish any starting point of limitation.

    The first Court held that they were applications made in accordance with law and the orders dismissing those applications would afford a fresh starting point of limitation and that the petition was in time. The lower appellate Court on an appeal filed by the judgment-debtors found that the two prior petitions were not in accordance with law as the requisite court-fee was not paid and therefore the orders passed on them cannot furnish any fresh starting point of limitation to the decree-holder. He accordingly dismissed the petition. Hence this appeal.

    The learned Subordinate Judge relies upon a decision of the Judicial Commissioner of Sind reported in Lakhmichand v. Gokaldas (1). It is no doubt a case directly in point, but I do not think he was justified in following that decision when decisions of this Court and of the Bombay High Court have held to the contrary. It is not the respondents' contention that the petitions were not in accordance with law on any other ground than that court-fee payable in respect of the portion of the claim for future mesne profits had not been paid. All that S. 11 of the Court Fees Act states is,

    “The decree shall not be executed until the difference between the fee actually paid and the fee which would have been payable had the suit comprised the whole of the profits or amount so decreed shall have been paid to the proper officer.”

    Alagirisami Naidu v. Venkatachalapathi Iyer (2), held that a similar provision in a decree as regards the payment of a sum of money before execution could be allowed, cannot be said to be a condition precedent to the filing of the application and that an execution petition filed for a relief which could not be granted till the money was paid was a proper application in accordance with law even though the condition had not been fulfilled. The decree in that suit ordered, “that the plaintiff do recover the sum of……………against the defendants 1, 2, and 3, and the hypothecated property” and it further ordered, “that the plaintiff is not entitled to execute the decree till the fifth defendant's hypothecation is discharged by him.” A petition to execute the decree passed against the defendants 1, 2 and 3 was filed before the fifth defendant's hypothecation was discharged by him. It was dismissed. A subsequent petition was filed and it was urged that petition was not barred by limitation by reason of the filing of the prior petition. It was contended that the prior application was not one in accordance with law because the fifth defendant's hypothecation deed had not been discharged and the decree against defendant, 1, 2 and 3 could not be executed till payment of the same as per the terms of the decree. Their Lordships following the decision in Syed Hussain Saib Rowthen v. Rajagopala Mudaliar (3), held that it was only a condition precedent to the execution of the decree and not for the filing of a petition to execute the decree and it was therefore one in accordance with law. In Syed Hussain Saib Rowthen v. Rajagopala Mudaliar , also it was observed that if a decree could be executed only on the fulfilment of a condition and that was not fulfilled at the time when the execution petition was filed, it did not mean that the petition filed without fulfilment of the condition was not one in accordance with law.

    The case reported in Ramasami Ayyan v. Seshayyangar (4), is a stronger case. There the execution petition was stamped with an one anna stamp instead of with an eight annas stamp. Their Lordships held that the insufficiently stamped application was one in accordance with law and saved limitation. Here the complaint is that in the two prior applications the court-fee should have been paid in respect of the claim for mesne profits and that if it should be considered to be a court-fee payable on the petition the non-payment of it will not make it one not in accordance with law as per the decision in Ramasami Ayyan v. Seshayyangar . The learned Subordinate Judge before whom this was quoted distinguished it on the ground that the facts of the case were not fully reported and that it was not known whether the decree-holder did not pay the deficient court-fee after filing the execution petition. The facts of the case are stated in the report and I am not able to see why the learned Judge should have thought that the deficient court-fee might have been paid subsequent to the filing of the execution petition. If it had been paid no such question could have arisen, for it is open to the party to pay the court-fee later on a date to be fixed by the Court. As a matter of fact these two petitions were posted before the Court for hearing arguments on the question whether court-fee was payable or not.

    The Bombay High Court also held with regard to a similar condition precedent to the execution of the decree that payment was a condition precedent to the granting of the relief but not to the making of the application. Vide Nathubai Kasandas v. Pranjivan Lalchand .

    I do not think in the face of these decisions the learned Subordinate Judge was justified in relying upon the decision of the Assistant Judicial Commissioner in Lakhmichand v. Gokaldas and finding that the petitions were not in accordance with law.

    It is urged for the respondent that these two petitions were unnumbered and therefore not admitted and consequently must be considered by reason of the rejection of those applications to be petitions not in accordance with law. For this reliance is placed on the observations in Sathappa Chettiar v. Chockalingam Chettiar . It is true his Lordship Justice Varadachariar refers to the fact that the petition was unnumbered, but that is only an incidental reference. The finding in that case was that in the execution petition in question some of the requirements of O. 21, Rr. 10 to 14 had not been complied with and therefore the petition was not one in accordance with law. The order of rejection was construed as being an order passed under O. 21, R. 17(2), on the ground that the petition was not one in accordance with law as the requirements of O. 21, Rr. 10 to 14 were not complied with. It is significant that his Lordship Justice Varadachariar pointed out in that case that the endorsement that sale papers had not been filed was incorrect as the records indicated that they had been filed. He also indicated that the other defects which resulted in the dismissal of the petition were defects connected with the requirements of O. 21, Rr. 10 to 14. This decision has to be considered with reference to the facts of that case and cannot be taken to mean that in all cases where an execution petition is dismissed without being numbered it should be taken to be a decision that the petition was not one in accordance with law. There his Lordship had to construe the effect of an order of dismissal of an execution petition on an attachment before judgment and the Court had to find whether the petition was one in accordance with law as it is only a dismissal for default of a petition which is in accordance with law that would have the effect of terminating the attachment.

    The learned Counsel for the respondents refers to an unreported judgment in C.M.A No. 90 of 1941 in support of the position that an unregistered application cannot be said to be an application in accordance with law. There their Lordships had to consider whether an order on a petition which was returned for carrying out certain amendments but which was not represented in time and was re-presented long after with a petition for excusing the delay would be a final order on a petition filed in accordance with law which would furnish a fresh starting point of limitation for a petition which was filed along with the original petition when it was re-presented, and they held that it did not furnish a fresh starting point of limitation. There it was not the non-numbering nor the non-admission that was the ground for holding that it was not one in accordance with law. It is the final order on the petition that will give the starting point of limitation. There was no final order on the previous application because there was only an order returning the petition for carrying out certain amendments. The petition was not re-presented in time. It is true it was re-presented later with a petition to excuse the delay. But that petition was dismissed. Therefore the petition was not one that could be considered to be before the Court. It is true that there was an order rejecting the petition on the ground that the petition to excuse the delay was disallowed. But then that order meant that the Court refused to look into the matter or act on it because it was not properly before the Court. The order rejecting the petition was not an order on the petition but was an order refusing to look into the petition. I therefore do not think that the decision in that case has any application to the facts of this case.

    In the result the order of the lower Court is set aside and the petition is remanded to the first Court for being proceeded with in accordance with law as it is in time and is not barred by limitation. The respondents will pay the appellant's costs both here and in the lower appellate Court. Leave refused.

    N.R.R

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    Comments

    Marimuthu Pillai v. Abdul Ganni Rowther And Another
    (Sep 17, 1942)