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Structured Summary of the Opinion

Factual and Procedural Background

This appeal arises from proceedings connected to the judgment in C.R.P. No. 1399 of 1925. On 19 July 1925, newly appointed trustees (the petitioners) filed Execution Petition No. 51 of 1925 seeking to execute a decree of the Subordinate Judge referred to in C.R.P. No. 1399 of 1925. The respondents opposed the execution petition and raised multiple objections before the Subordinate Judge at Vellore.

The Subordinate Judge dismissed the petition on several grounds: (a) the newly appointed trustees were not parties to the decree and had not been added as parties under Order 1, Rule 10, Civil Procedure Code; (b) the right to execute the decree was not given to them and they had not come under Order 22, Rule 10, Civil Procedure Code, nor were they transferees of the decree; (c) the Court's order approving appointment of the newly elected trustees was ultra vires; and (d) the order directing payment to the trustees was a variation of the consent decree. The Subordinate Judge observed that the trustees should seek recognition of their claims by separate suit.

The respondents pointed out that the plaintiffs had initially sought execution but, on questions about their right to execute, withdrew that petition and the present petitioners were substituted for the plaintiffs. The respondents contended that the petitioners should have applied to be placed on the record as parties, and, having not done so, could not execute the decree or be treated as assignees; they relied on procedural provisions including Order 22, Rule 10. The respondents cited Ratnam Pillai v. Annamalai Desikar (1923) 46 M.L.J. 341 in support of their objections.

Legal Issues Presented

  1. Whether newly elected trustees who were not parties to the original suit and not added under Order 1, Rule 10, or brought in under Order 22, Rule 10, can execute the decree or be treated as transferees/assignees of the decree.
  2. Whether a provision in a scheme or decree making the election of new trustees "subject to the confirmation of the Court" is ultra vires Section 92 of the Civil Procedure Code.
  3. Whether an order (in C.M.P. No. 107 of 1924) directing sums found due to be paid to newly elected trustees constitutes an impermissible variation of the consent decree, given the rule that a consent decree cannot be varied except by consent.
  4. Whether the executing Court is entitled to question the validity of a decree on grounds other than an apparent want of jurisdiction on the face of the decree.

Arguments of the Parties

Respondents' Arguments

  • The newly appointed trustees were not parties to the decree and had not been added under Order 1, Rule 10, Civil Procedure Code; hence they could not execute the decree.
  • The petitioners had not followed proper practice; they should have applied to be brought on the record as parties instead of substituting themselves for the plaintiffs, and therefore could not be treated as assignees or transferees entitled to execute the decree.
  • The provision in the scheme making the appointment of new trustees subject to the Court's confirmation was ultra vires Section 92, Civil Procedure Code (relying significantly on Veeraraghavachariar v. The Advocate-General of Madras (Full Bench)).
  • The order in C.M.P. No. 107 of 1924, which directed sums to be paid to the trustees, was a variation of the consent decree and impermissible; respondents relied on Kinch v. Walcott (Privy Council) to support the proposition that a consent decree cannot be varied except by consent.
  • Reference to Ratnam Pillai v. Annamalai Desikar (1923) 46 M.L.J. 341 to support objections to the substitution and execution practice adopted by the petitioners.

Petitioners'/Appellants' Position

  • The petitioners sought to execute the decree in their capacity as the newly appointed trustees and had applied to the Court for approval of the appointment; the Court's approval was given.
  • Implicitly, the petitioners' position (as reflected in the petition and the order appealed from) was that the decree contemplated the trustees executing the decree on behalf of the temple and that the mode of carrying out that decree (including payment directions and possession) was permissible and executable.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Ratnam Pillai v. Annamalai Desikar (1923) 46 M.L.J. 341 Cited by respondents to support objection to substitution and execution practice. The opinion records the respondents' reliance on this authority but does not base the decision on it; the court proceeded to consider whether the trustees could execute the decree notwithstanding respondents' objections.
Veeraraghavachariar v. The Advocate-General of Madras (1927) I.L.R. 51 M. 31 : 53 M.L.J. 792 (F.B.) Principle about reservation of "liberty to apply" in a scheme under Section 92 CPC: reservation for directions to carry out an already settled scheme may be intra vires; reservation to apply for alteration/modification is ultra vires. The court applied the Full Bench's distinction to hold that the provision making the trustees' election subject to Court confirmation was a reservation to permit carrying out the scheme (not to permit modification) and therefore was not ultra vires Section 92.
Kinch v. Walcott (1929) 57 M.L.J. 429 (P.C.) Cited for the general proposition that a consent decree cannot be varied except by consent. The court considered this authority but concluded the facts showed no variation of the consent decree; thus Kinch did not assist the respondents' objection.
Lachiram v. Jana Yesu Mang (1914) 27 I.C. 830 Authorities cited in relation to when an executing Court may question a decree. The court held these authorities were inapplicable because, on the face of the decree before it, there was no want of jurisdiction; hence the executing Court could not question the decree on those grounds.
Gora Chand Haldar v. Prafulla Kumar Roy (1925) I.L.R. 53 C. 166 (F.B.) Permits executing Court to refuse execution where decree was apparently made without jurisdiction. The court noted this case applies only within narrow limits (want of jurisdiction apparent on the face); since no such want appeared here, the case did not assist the respondents.
Zamindar of Ettiyapuram v. Chidambaram Chetty (1920) I.L.R. 43 M. 675 : 39 M.L.J. 203 (F.B.) Supports the position that an executing Court cannot question a decree when there is no apparent want of jurisdiction. Used by the court to reinforce that the executing Court cannot re-open a decree that appears valid on its face; here the decree clearly directed trustees to execute it.
Hari Gopind v. Narsingrao Konherrao (1913) I.L.R. 38 B. 194 Authority on limits of executing Court in questioning decrees. Referred to as consistent authority that the executing Court's power to question a decree is limited; applied to support refusal of respondents' objections.
Kalipada Sarkar v. Hari Mohan Dalal (1916) I.L.R. 44 C. 627 Authority on execution and limits of inquiry into decrees. Cited alongside other authorities to show executing Court cannot impugn a decree valid on its face; supports the court's conclusion.
Lakshmibai v. Ravji (1928) 31 Bom. L.R. 400 Decision dissenting from Gora Chand Haldar regarding the executing Court's power to question the passing of a decree. The opinion notes this dissent but does not adopt it; the court held the present decree was clear and executable, so the dissenting authority did not change the result.
Jai Narain v. Bankey Lal (1919) 17 A.L.J. 957 Authority stating that a decree directing delivery of trust property to new trustees is correct. Cited to support that a decree vesting trust property in new trustees is proper and executable; applied to validate the Order in C.M.P. No. 107 of 1924 as a reasonable way to carry out the consent decree.
Ghazaffar Husain Khan v. Yawar Husain (1905) I.L.R. 28 A. 112 Authority on vesting trust property in new trustees and transfer of possession. Quoted to show that courts may direct removal of trustees and vest property in new trustees; applied in conclusion that decree directing trustees to execute was proper.
Baiakrishna Chettiar v. Krishnamurthi Aiyar (1926) 52 M.L.J. 182 Authority for the proposition that such a decree is executable and not merely declaratory. Relied upon to affirm that the decree directing trustees to take action was an executable decree.
Miyaji alias Mahomed Ghouse Sahib v. Sheikh Ahmed Sahib (1908) I.L.R. 31 M. 212 : 18 M.L.J. 205 Held that under Section 14 of the Religious Endowments Act a court can direct removal of a trustee and order appointment of a new trustee and surrender of possession. Applied as supporting authority that the Court has power to direct removal and replacement of trustees and to order delivery of property and payment of damages to new trustees.
Gnana Sambandha Pandara Sannadhi v. Kandaswami Thambiran (1887) I.L.R. 10 M. 375 Held that where the power of appointment of a trustee is vested in a person, that person may be directed to make the appointment and possession delivered to the appointee. Quoted in support of the proposition that the Court may direct the making of appointments and the delivery of possession to persons so appointed.

Court's Reasoning and Analysis

The court examined the respondents' contentions and the authorities relied upon and analyzed the legal issues as follows.

First, relying on the Full Bench decision in Veeraraghavachariar, the court emphasized the distinction between a reservation of liberty to apply "for directions as to carrying out the scheme already settled" (which may be intra vires Section 92) and a reservation permitting applications for alteration or modification of the scheme (which would be ultra vires). The court found that in the present case the reservation was to permit carrying out what had already been ordered (the appointment of new trustees), not to permit alteration or modification of the scheme. Therefore the provision that the election was "subject to the confirmation of the Court" did not contravene Section 92.

Second, on the question whether the order in C.M.P. No. 107 of 1924 varied the consent decree by directing payments to the newly elected trustees, the court read Clause (2) and Clause (3) of the consent decree together. Clause (2) spoke of amounts owing by or to the temple and contemplated payment to and by the competent persons to deal with temple funds, namely the trustees. Clause (3) conditioned the trustees' taking possession on payment (by specified defendants) to the trustees. Reading the clauses together, the court concluded the Order in C.M.P. No. 107 of 1924 provided for payments to the temple trustees in their capacity as trustees and that there was no impermissible variation of the consent decree.

Third, the court addressed whether the executing Court could re-open or question the decree. Citing authorities, the court reiterated the narrow limits in which an executing Court may refuse execution — principally where the decree was made without jurisdiction apparent on its face. Since the decree in the present case was clear and did not disclose want of jurisdiction, and it expressly directed the trustees to execute the decree on behalf of the temple, the executing Court could not allow respondents to raise objections that should have been raised earlier when the final decree was passed.

Finally, the court concluded that the Order in C.M.P. No. 107 of 1924 was the reasonable and proper mechanism to carry out the consent decree, that a decree vesting trust property in newly appointed trustees is permissible and executable, and that the Subordinate Judge's refusal to entertain execution by the newly appointed trustees was erroneous.

Holding and Implications

Core Ruling: The court held that the order of the learned Subordinate Judge was erroneous and therefore the appeal is allowed and the Subordinate Judge's order is reversed. The court ordered that the Lower Court restore the petition to the file and dispose of it according to law, and awarded costs.

Direct consequences for the parties:

  • The execution petition (E.P. No. 51 of 1925) should be restored to the file in the Subordinate Court and dealt with in accordance with law.
  • The newly appointed trustees may proceed to execute the decree in the manner contemplated by the consent decree and the subsequent order (C.M.P. No. 107 of 1924), as the Court found no impermissible variation and the decree is executable.

Broader implications: The opinion confines itself to applying existing principles (including the Full Bench decision in Veeraraghavachariar) and to reading the consent decree in context; it does not purport to lay down a new general rule beyond those applications. The opinion emphasizes the limited circumstances in which an executing Court may question a decree (i.e., where want of jurisdiction is apparent on the face of the decree).

Pakenham Walsh, J. delivered the principal judgment. A concurring sentence states: "I agree and have nothing to add."

    M. Varadaiah Chetti v. K. Narasimhulu Chetti

    1. The facts out of which this appeal arises have already been set out in the judgment in C.R.P. No. 1399 of 1925. On the 19th July, 1925, the newly appointed trustees as petitioners sought to execute the decree of the Subordinate Judge referred to in C.R.P. No. 1399 of 1925 and they filed E.P. No. 51 of 1925. The respondents opposed that petition and raised a number of objections before the then Subordinate Judge of Vellore who dismissed the petition on the grounds that the newly appointed trustees the petitioners were not parties to the decree and had not been added as parties under Order 1, Rule 10, Civil Procedure Code, that the right to execute the decree was not given to them, that they had not come under Order 22, Rule 10, Civil Procedure Code and were not transferees of the decree and further that the order that the Court was to approve of the appointment of the newly elected trustees was ultra vires and also that the decree is a variation of the provisions of the consent decree. The learned Subordinate Judge further said that the trustees must come by a separate suit and have their claims as trustees recognised by the Court--this notwithstanding the fact that an application was made to the Court for the approval of the appointment of the newly elected trustees and the Court's approval was given. On behalf of the respondents it is pointed out that the plaintiffs in the suit first sought to execute: the decree by an execution petition but that owing to the right of the plaintiffs to execute the decree being questioned in the office the petition was withdrawn and the present petitioners, the appellants here, substituted for the plaintiffs in this suit. This, it is argued on behalf of the respondents, is contrary to all practice and that the petitioners should have applied to have themselves brought on the record as parties to the suit and that not having done so they cannot execute the decree nor can they be treated as assignees of the decree and continue the proceedings because the procedure provided for by Order 22, Rule 10 has not been followed. (Ratnam Pillai v. Annamalai Desikar (1923) 46 M.L.J. 341.)

    2. Much reliance was placed upon the Full Bench decision in Veeraraghavachariar v. The Advocate-General of Madras (1927) I.L.R. 51 M. 31 : 53 M.L.J. 792 (F.B.) because it was argued that the provision in the scheme that after the new trustees had been elected their appointment was subject to the confirmation of the Court was ultra vires. The Full Bench, of which I was a member,, held that if in a decree for a scheme framed under Section 92, Civil Procedure Code, liberty is given to persons to apply to the Court for directions merely to carry out the scheme already settled such reservation of liberty in the decree will be intra vires if the assistance of the Court can be given without offending against Section 92 of the Civil Procedure Code, but where liberty is given to apply to the Court for alteration or modification of the scheme such reservation is ultra lines as offending against that section. It is very strange to find that the respondents who were parties to the suit and the compromise decree and agreed to the scheme are now here contending that the provision is ultra vires and in my opinion they have not only shown themselves obstructive; but have misapplied the Full Bench division. Dealing with this question Phillips, J., on page 44 says:

    This principle, therefore, of reserving liberty to apply in temple suits appears to me to be. based on wrong premises. It should only be done when the Court is unable, or for good reasons, thinks it advisable not to finally determine any question arising for its decision but to leave such decisions for a future date. Unless there is some ground of this sort, the decision must necessarily be final and therefore an order that such final decision can be altered by a mere application would seem to be ultra vires. I may observe here that the question put to us is a double question and the answer to the two parts of the question must be different. The first is 'Where liberty to apply is reserved...to ask for directions as to carrying out the scheme. So far as' this is concerned this may well be intra vires unless it contravenes the provisions of Section 92, Civil Procedure Code, for the assistance of the Court is asked merely to carry out what it has already ordered, and if such assistance can be given without contravening the provisions of section 92, there can be no objection to such a rule being framed.

    3. In the present case there was no alteration or modification of the scheme provided for. What was provided for was the carrying out of what had already been ordered, namely, the appointment of now trustees. For greater caution it was provided that the election held was to be subject to the confirmation of the Court and there is no substance in the argument that such an order contravenes the provisions of Section 92, Civil Procedure Code.

    4. It is further argued that paragraph 2 of the consent decree directs that the amounts found to be owing by the defendants are to be payable to the plaintiffs and not to the newly elected trustees but that the order made in C.M.P. No. 107 of 1924 directs such sums to be paid to the trustees; and it is contended that this is a variation of the consent decree and that a consent decree cannot be varied except by consent. In support of this argument the Privy/Council decision in Kinch v. Walcott (1929) 57 M.L.J. 429 (P.C.) is referred to. Here again this argument has no substance. Clause (2) of the decree speaks of what is due to the defendants from out of the temple funds and directs that what is due to or by any of the parties to the other the same is to be paid by whomsoever it is found payable to the other. This clearly means that the money found to be due by either the plaintiffs or the defendants is due from or to the temple and it certainly does not mean that the plaintiffs are themselves to pay moneys due by the temple to the defendants out of their own pockets, nor does it mean that the sums found due from the defendants are to go into the pockets of the plaintiffs. The decree clearly contemplates payment to and by the only persons competent to deal with the temple funds, namely, its trustees. Further, Clause (3) provides that it is only on payment to the 1st defendant of whatever sum that may be found due by the Commissioner that the newly elected trustees can take possession of the temple and its properties. Clauses (2) and (3) clearly have to be read together; and when Clause (3) of the Order in C.M. P. No, 107 of 1924 is referred, to, it is seem that the defendants are to pay sums of money to the temple trustees on behalf; of the temple and that the trustees of the temple can execute the decree on behalf of the temple only on payment of the Court-fees on the amounts ordered to be paid by the 1st and the 3rd defendants to the said temple trustees. Obviously there has been no variation of the consent decree. As there has been in my view no variation of the consent decree (Lachiram v. Jana Yesu Mang (1914) 27 I.C. 830 and Gora Chand Haldar v. Prafulla Kumar Roy (1925) I.L.R. 53 C. 166 (F.B.)) have no application. Even the latter case does not assist the respondents' argument, because there it was held that where a decree presented for execution was made by a Court which apparently had no jurisdiction, whether pecuniary or territorial or in respect of the judgment-debtor's person, to make the decree, the executing Court is entitled to refuse to execute it on the ground that it was made without jurisdiction and that within these narrow limits the executing Court is authorised to question the validity of a decree. But if, on the face of the decree, there is no want of jurisdiction, the executing Court cannot question the decree. Here the decree directs the trustees to execute the decree, and if no objection was raised when the final decree was passed that objection cannot be raised in execution. (Zamindar of Ettiyapuram v. Chidambaram Chetty (1920) I.L.R. 43 M. 675 : 39 M.L.J. 203 (F.B.), Hari Gopind v. Narsingrao Konherrao (1913) I.L.R. 38 B. 194 and Kalipada Sarkar v. Hari Mohan Dalal (1916) I.L.R. 44 C. 627.) In Lakshmibai v. Ravji (1928) 31 Bom. L.R. 400 the case in Gora Chand Haldar v. Prafulla Kumar Roy (1925) I.L.R. 53 C. 166 (F.B.) was dissented from. It was there held that the executing Court has no jurisdiction to go into the question whether the Court which passed the decree committed any error in the exercise of its discretion. The decree in this case is perfectly clear. It directs the trustees to execute the decree on behalf of the temple and they are the persons in whose favour the decree has been passed; and the Order in C.M.P. No. 107 of 1924 was the only reasonable way of carrying out the consent decree. A decree which directs the delivery of trust property to new trustees is perfectly correct (Jai Narain v. Bankey Lal (1919) 17 A.L.J. 957 and Ghazaffar Husain Khan v. Yawar Husain (1905) I.L.R. 28 A. 112.) In the latter case at page 117. it is stated as follows:

    A suit instituted under Section 539 is not a suit in which plaintiffs claim or can claim for themselves possession of the trust property. They merely ask the Court to vest the trust property in trustees duly appointed to manage the trust and to take it out of the hands of trustees who have been guilty of mismanagement. No change in the beneficial ownership is sought. The Court has undoubtedly power under the section to vest the trust property in the new trustees, 'and it seems to me reasonably clear that the Court may direct a trustee who is being removed from the trusteeship to make over the trust property to the new trustee or trustees.

    5. It is clear that such a decree is an executable one and not merely declaratory. (Baiakrishna Chettiar v. Krishnamurthi Aiyar (1926) 52 M.L.J. 182.) In Miyaji alias Mahomed Ghouse Sahib v. Sheikh Ahmed Sahib (1908) I.L.R. 31 M. 212 : 18 M.L.J. 205 it was held that it is competent to the Court in a suit under Section 14 of the Religious Endowments Act to direct the removal of a trustee and to order a person competent to appoint a new trustee to make such appointment and to direct the trustee removed to surrender possession of property and pay any damages decreed to the new trustee to be appointed. In Gnana Sambandha Pandara Sannadhi v. Kandaswami Thambiran (1887) I.L.R. 10 M. 375 it was held that if the power of appointment of a trustee is vested in any person, such person may be directed to make the appointment and possession may be delivered to him.

    6. In my view, the order of the learned Subordinate Judge was clearly wrong and must be reversed and this appeal allowed with costs. The Lower Court will restore the petition to the file and dispose of it according to law.

    Pakenham Walsh, J.

    7. I agree and have nothing to add.

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    M. Varadaiah Chetti v. K. Narasimhulu Chetti
    (Nov 19, 1930)