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  • Sect. 52 of the Transfer of Property Act
  • 253, cl. 10 of the Indian Contract Act
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • Sect. 52 of the Transfer of Property Act
  • 253, cl. 10 of the Indian Contract Act
Smart Summary

Summary of the Opinion

Factual and Procedural Background

This opinion arises from an appeal against the District Judge's decision. The principal issues concern (a) whether an assignment pendente lite of a decree from an Original Court carries with it the right to execute whatever decree may be passed in appeal, and (b) whether a power of attorney given by two members of a Hindu trading family is terminated by the death of one of those members. The deed of assignment is referred to as Exhibit A; a power of attorney is referred to as Exhibit B. The assignees (respondents 2 to 23) were brought on record as parties to the appeal. The District Judge had decided in favour of the assignees and in relation to validity of the power of attorney; this appeal challenges that decision.

Legal Issues Presented

  1. Whether an assignment pendente lite of a decree of an Original Court carries with it the right to execute whatever decree may be passed in appeal under the present Code of Civil Procedure.
  2. Whether a power of attorney given by two members of a Hindu trading family is terminated by the death of one of the members.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Muthunarayana Reddi v. Balakrishna Reddi Explaining the significance of the change of language in O. 21, R. 16 compared with Section 232 of the old Code. Used to show that the change in language informed the interpretation that what is transferred by assignment is the decree-holder's interest (as finally determined), not the decree itself.
Chunni Lal v. Abdul Ali Khan Support for the proposition that assignees brought on record succeed to the rights and liabilities of their assignor. Relied upon to conclude that the assignees brought on record (respondents 2–23) succeeded to all rights and liabilities of the assignor, making further reliance on lis pendens unnecessary.
Re Sital Prasad Authority for the proposition that the authority of an agent under a power of attorney may remain unaffected by the death of one principal in certain family contexts. Applied to hold that where a joint interest devolved on the surviving joint member, the surviving principal's authority to the agent under Exhibit B remained unaffected by the co-principal's death.

Court's Reasoning and Analysis

On the first question (assignment pendente lite): the Court observed that under the present Code of Civil Procedure the wording of O. 21, R. 16 (as changed from Section 232 of the old Code) is significant and reflects the influence of the decision in Muthunarayana Reddi v. Balakrishna Reddi. The Court interpreted the assignment as transferring not the decree as such but the "interest" of the decree-holder, and that "interest" must be understood as the interest as finally determined. The Court referred to O. 22, R. 10(1) (and sub-clause 2 and R. 11) as contemplating assignment of interest during the pendency of a suit (including appeal) and continuance of the suit or appeal by the assignee. The deed of assignment (Exhibit A) expressly noted that the decree was under appeal, indicating the parties intended that all rights under the decree should pass. Because the assignees were brought on record as parties to the appeal, they were deemed to have succeeded to all rights and liabilities of their assignor (relying on Chunni Lal v. Abdul Ali Khan). The Court further explained that it was unnecessary to invoke the doctrine of lis pendens under Section 52 of the Transfer of Property Act, since a simple money decree is not to be treated as immovable property.

On the second question (effect of death of one principal on a power of attorney given by two members of a Hindu trading family): the Court noted Section 253, clause 10 of the Indian Contract Act, which declares that a partnership is dissolved by the death of a partner. It then distinguished that from Hindu joint family law: there is no principle that a joint family is extinguished by the death of one member; instead, if one member dies without effecting a partition his undivided share passes by survivorship to surviving members. Applying the facts recited in the opinion, the uncle Venkatachalam Chetty died leaving only his nephew Chidambaram Chetty as survivor; the whole interest devolved upon the survivor. Consequently, the surviving principal's authority to the agent under the power of attorney (Exhibit B) remained unaffected by the death of the co-principal (citing Re Sital Prasad). The opinion notes there was no suggestion that the surviving principal revoked the authority; the Court characterized the objection to the power of attorney as a technical one raised by the judgment-debtors, and observed that the first respondent (the surviving principal) did not support that objection after being made a party.

On both questions the Court concluded that the District Judge's decision was correct.

Holding and Implications

APPEAL DISMISSED WITH COSTS

Direct effect: the District Judge's decision is affirmed and the appeal is dismissed with an order for costs against the appellants. The assignees who were brought on record succeeded to all rights and liabilities of their assignor, and the surviving principal's power of attorney remained effective despite the death of the co-principal under the facts of this case.

Broader implications: the opinion bases its conclusions on interpretation of procedural provisions (O.21 R.16; O.22 R.10(1)) and principles of succession in a Hindu joint family; the opinion does not purport to lay down a new general precedent beyond the reasoning applied to the facts before the Court.


Disposition in the opinion: S. S. Appeal dismissed.

    M. Ponnuswami Pillai v. Chidambaram Chettiar

    The first question to be decided in this appeal is whether the assignment pendente lite of the decree of an Original Court carried with it the right to execute whatever decree may be passed in appeal. We hold that it did in this case, under the present Code of Civil Procedure at any rate.

    The change of language in O. 21, R. 16 compared with Sect. 232 in the old code is significant. It evidently arose out of the decision in Muthunarayana Reddi v. Balakrishna Reddi.

    It shows that what is really transferred when a decree is assigned is not the decree itself but the interest of the decree holder in the decree. The word ‘interest’ must mean the interest as finally determined. O. 22, R. 10 (1) contemplates such an assignment of interest being made during the pendency of a suit (suit including appeal, Vide sub-cl. 2 and R. 11) and the continuance of the suit or appeal by the assignee. The mention in Exhibit A, the deed of assignment, of the fact that the decree was under appeal clearly indicates the intentions of the parties that all rights under the decree should pass. The assignees (respondents 2 to 23 in this Court) in this case having in fact been brought on record as parties to the appeal must be deemed to have succeeded to all the rights and liabilities of their assignor (see Chunni Lal v. Abdul Ali Khan). In this view it is unnecessary to invoke the doctrine of lis pendens which applies under Sect. 52 of the Transfer of Property Act to immoveable property, a class of property into which a simple money decree cannot be treated as falling.

    The next question whether a power of attorney given by two members of a Hindu trading family must be deemed to be terminated by the death of one of the members.

    Sect. 253, cl. 10 of the Indian Contract Act declares that a partnership is dissolved by the death of a partner. There is no principle of Hindu Law that a joint family is extinguished by the death of one member but if one member dies without effecting a partition, his undivided share passes by survivorship to the surviving members of the family. In the present case the uncle Venkatachalam Chetty died without other heirs than his nephew Chidambaram Chetty with whom he was joint till the day of his death. The whole of his interest therefore devolved on the survivor whose authority to the agent contained in the power of attorney remained unaffected by the death of one of the principals, see Re Sital Prasad. It is not suggested that the surviving principal (first respondent) has revoked or attempted to revoke his authority under Exhibit B. The objection is a technical one coming only from the judgment-debtors. The first respondent after being made a party to these proceedings has taken no part in supporting this objection. On both points the District Judge's decision was right. We must therefore dismiss the appeal with costs.

    S. S.Appeal dismissed.

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    M. Ponnuswami Pillai v. Chidambaram Chettiar
    (Dec 19, 1917)