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Bijai Saran Sahi v. Raghunath Prasad Sahi

Allahabad High Court
May 28, 1926
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Structured Summary of the Provided Legal Opinion

Factual and Procedural Background

The dispute concerns title to two villages, Kanchanpur and Patkoli, and associated malikana rights. Mahant Karya Bharthi borrowed money to litigate his title: Rs. 8,000 on 12 September 1899 (simple bond) and another similar bond on 27 March 1901. He initially succeeded in the trial court but lost on appeal. While seeking leave to appeal to the Privy Council, he executed a mortgage by conditional sale dated 15 March 1904 in favour of Sant Baksh Sahi for Rs. 20,000, which represented settlement in respect of half shares of earlier bonds. He executed another simple mortgage on 22 March 1904 for Rs. 6,000 hypothecating Kanchanpur, and on 26 April 1904 executed a third mortgage for Rs. 1,999 on his malikana rights in Kanchanpur and Patkoli.

In 1907, Kamta Prasad Sahi sued for recovery of a half share of the 1899 and 1901 bonds and obtained simple money decrees on 30 June 1908. Execution of those decrees resulted in attachments of each village with malikana rights (attachments made 14 September 1908). While the attachments subsisted, Mahant Karya Bharthi sold his equity of redemption in the villages (sale-deed dated 19 November 1908) to Sant Baksh for Rs. 58,220, credited in satisfaction of prior mortgages. The plaintiffs later purchased the villages and malikana rights at auction in execution of the decrees on 20 August 1909 and obtained formal possession, but could not obtain actual possession, prompting the present suit for recovery of possession with mesne profits.

The defendants-appellants contended that the earlier attachments had been removed by orders striking off the execution proceedings dated 9 February 1909, and that they were entitled to set up their 1904 mortgages as a shield against the plaintiffs' claim. The trial court rejected these defences. The appeal and a cross-objection were heard by the court giving the present opinion.

Legal Issues Presented

  1. Whether an order striking off an execution proceeding (9 February 1909) operated to remove or terminate the attachments made in that execution where the decree-holder had not been in default.
  2. Whether a subsequent application by the decree-holder to revive or continue the execution (23 February 1909) could relate back so as to make earlier attachments operative against a sale by the judgment-debtor (sale of 19 November 1908) made during the period between attachment and the striking off of the execution proceeding.
  3. Whether the defendants-appellants' mortgages of 1904 (non-usufructuary mortgages) entitled them to possession of the properties against the plaintiffs who purchased the equity of redemption in execution of prior decrees.

Arguments of the Parties

Defendants-Appellants' Arguments

  • The attachments made in execution were rendered inoperative because the executing Court struck off the execution proceedings on 9 February 1909, thereby removing the attachments.
  • The defendants-appellants, as mortgagees under the mortgages executed in 1904, were entitled to set up those mortgages as a defence (a shield) to the plaintiffs' claim for possession.

Plaintiffs-Respondents' Position

  • The attachments dated 14 September 1908 remained valid and operative; the sale by the judgment-debtor to Sant Baksh (19 November 1908) is unenforceable as against the claims arising out of those attachments and the subsequent execution and auction by the decree-holder.
  • After purchasing the equity of redemption in execution of the decrees, the plaintiffs are entitled to possession; the defendants' mortgages (being non-usufructuary) do not give mortgagees the right to possession against a purchaser of the equity of redemption.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Kamar-ud-din Ahmad v. Jawahir (1908) 27 All 334 Principle that an application to revive a suspended execution proceeding which was suspended for no act or default of the decree-holder is not a fresh execution; if granted, the proceeding is continued from the stage at which it was left and sales effected in pursuance of the earlier attachment are effective as if held during that prior pendency. Applied to hold that the decree-holder's 23 February 1909 application to revive/continue the execution continued the original proceeding and thereby rendered the sale by the judgment-debtor unenforceable against the prior attachment and subsequent execution sale.
Aziz Bux v. Kaniz Fatima Bibi (1912) 34 All 490 Where a court mistakenly dismissed an execution application without removing the attachment and the decree-holder subsequently obtained review directing the court to proceed, the attachment still subsists and is valid against a sale made by the judgment-debtor before the review. Relied upon to support the conclusion that an attachment subsists despite a mistaken dismissal and can be valid as against an intermediate sale by the judgment-debtor.
Dildar Husain v. Sheo Narain AIR 1919 All 194 Decision concerns dismissal at the request of the decree-holder who did not wish to proceed; such a circumstance distinguishes the case from one where dismissal occurs without decree-holder default. Distinguished by the court: held not to bear on the present case because in Dildar Husain the dismissal was at the decree-holder's request, unlike the present facts.
Gopal Prasad v. Kashinath AIR 1920 All 356 Order restoring an attachment relates back to the date when the attachment was first made and its effect is to invalidate a sale made during the subsistence of that attachment. Applied to conclude that the order granting the decree-holder's application continued the execution from the prior stage and thus invalidated the judgment-debtor's sale insofar as it conflicted with the attachment and the plaintiffs' subsequent purchase in execution.

Court's Reasoning and Analysis

The court proceeded in two principal strands of analysis: (1) the legal effect of the orders striking off the execution proceedings on the attachments, and (2) the effect of the mortgages of 1904 vis-à-vis a purchaser of the equity of redemption.

On the first strand, the court examined Order 21, Rule 57 of the Civil P.C. and the pre-existing controversy about whether striking off or dismissing an execution proceeding terminates an attachment. The rule was described as providing that when a decree-holder defaults and the court dismisses an execution application, the attachment ceases. The court emphasised the distinction between a dismissal for default by the decree-holder and an administrative striking off or consigning of a record for court convenience.

Applying that distinction to the facts, the court found no default by the decree-holder: he had taken all steps available to procure the sale of the attached properties (initially proceeded with sale of standing crops) and there was no deposit requirement or other failure by him that justified treating the striking off as a dismissal under Order 21, Rule 57. The striking off occurred after sale of crops and without asking the decree-holder to take further steps or stating whether the attachment should stand or be raised; in at least one order the file was simply struck off as pending. Therefore, the order of 9 February 1909 did not operate as a dismissal that would terminate the attachment.

Even assuming arguendo that the striking off had the effect of suspending or terminating the execution, the court held that the decree-holder's subsequent application on 23 February 1909 to revive or continue the execution was sufficient to make the earlier attachment operative against the sale by the judgment-debtor. The court relied on Kamar-ud-din Ahmad v. Jawahir and Aziz Bux v. Kaniz Fatima Bibi to support the proposition that a revival or restoration operates by relation back and renders a sale effected during the subsistence of the earlier attachment ineffective as against the claims arising from that attachment.

On the second strand, the court considered the nature of the 1904 mortgages. The mortgages were not usufructuary mortgages; accordingly, the mortgagees did not acquire the right to possession merely by virtue of those mortgages. The plaintiffs, having purchased the equity of redemption in execution of the decrees, acquired the right to possession. The defendants-appellants' possession derived from the sale of 19 November 1908, which the court found unenforceable as against the claims from the prior attachment (Section 61 Civil P.C. was cited in relation to the invalidity of that sale). Therefore, the defendants could not resist the plaintiffs' claim to possession by relying on their 1904 mortgages; they might have a right to sue for sums due under the mortgages, but not to retain possession.

The court noted that other pleas in the memorandum of appeal and a cross-objection by the plaintiffs-respondents were not pressed. The reasoning is limited to the matters argued and decided above.

Holding and Implications

Holding: The court's final decision was that both the appeal and the cross-objection fail. The court DISMISSED the appeal and the cross-objection with costs, including fees in this Court on the higher scale.

Immediate implications for the parties:

  • The sale by the judgment-debtor dated 19 November 1908 (by which the defendants claimed title) is unenforceable as against the claims arising from the attachment of 14 September 1908 and the subsequent execution sale by the decree-holder; consequently, the defendants-appellants must surrender possession obtained under that sale.
  • The plaintiffs-respondents, having purchased the equity of redemption in execution of the decree, are entitled to possession; the defendants' mortgages of 1904 (being non-usufructuary) do not entitle the mortgagees to possession against such a purchaser.
  • The defendants may have contractual remedies against the judgment-debtor or other avenues to enforce their mortgage claims, but such remedies do not entitle them to retain possession in the face of the plaintiffs' successful execution purchase and claim to possession.

Broader implications: The opinion applies and interprets Order 21, Rule 57 (Civil P.C.) and existing authorities on the effect of striking off and restoration of execution proceedings and attachments. The opinion does not articulate the creation of any novel precedent beyond the application of the principles and cases cited.

End of summary (based exclusively on the provided opinion text).

Show all summary ...

1. Mahant Karya Bharthi was seeking to establish his title to Math Kanchanpur as against another claimant, and for the purpose of the litigation arising out of that claim, he borrowed money from Kamta Prasad Sahi, the predecessor of the plaintiffs and Sant Baksh Sahi, the predecessor of the defendants. On the 12th September 1899, he borrowed Rs. 8,000 by a simple bond for that amount from these two persons, and later on he executed another simple bond on the 27th March 1901, for a similar amount. Mahant Karya Bharthi succeeded in the trial Court in establishing his title to the math property against Raj Bans, the other claimant, but on appeal to this Court he was unsuccessful and his claim was dismissed. He applied for leave to appeal to the Privy Council and during the pendency of that proceeding he executed a mortgage of the disputed property, including the two villages of Kanchanpur and Patkoli now in dispute, by conditional sale for Rs. 20,000 in favour of Sant Baksh Sahi, the contesting defendant-appellant, on the 15th March l904. This mortgage was executed in lieu of the half share of the simple bonds of the 12th September 1899, and the 27th March 1901, which had previously been executed by Mahant Karya Bharthi in favour of Kamta Prasad Sahi and Sant Baksh Sahi for Rs. 6,000, whereof the latter was entitled to a half share. On the 22nd March 1904 Mahant Karya Bharthi executed another simple mortgage in favour of Sant Baksh Sahi for Rs. 6,000, hypothecating the village Kanchanpur as security for the repayment of the same.

2. On the 25th April 1904, there was a compromise between Mahant Karya Bharthi and Raj Bans by virtue of which the two villages now in dispute, namely, the villages of Kanchanpur and Patkoli, along with their malikana rights were awarded to Mahant Karya Bharthi in consideration of his giving up his claim to the rest of the property then in dispute. On the 26th April 1904, Mahant Karya Bharthi executed a third mortgage in favour of Sant Baksh Sahi for Rs. 1,999 and the properties hypothecated therein comprised the malikana rights held by him in the villages of Kanchanpur and Patkoli.

3. In 1907 Kamta Prasad Sahi filed two suits for the recovery of a half share of the bonds of the 12th September 1899, and the 27th March 1901, against Mahant Karya Bharthi, stating that the rest of the money due on those bonds had been satisfied by the execution of a certain mortgage by conditional sale by Mahant Karya Bharthi in favour of the other creditor in respect of his half share. He obtained a simple decree for money in each of these suits on the 30th June 1908, and in execution of one of those decrees he attached the village Kanchanpur with its malikana rights and the crops standing therein which had been cultivated by the judgment-debtor. In the other he attached the other village with its malikana rights end the crops belonging to the judgment-debtor therein. There is no dispute here that the attachments had been properly concluded and that the formalities required by law to complete those attachments had been duly carried out.

4. While these attachments were subsisting, Mahant Karya Bharthi sold his equity of redemption in the villages in question including the malikana rights to Sant Baksh for Rs. 58,220, the whole of which was credited in full satisfaction of the moneys due on the prior mortgage by conditional sale of the 15th March 1904, and the simple mortgages of the 22nd March 1904, and the 25th April 1904. The validity of this sale is questioned by the plaintiffs who have since purchased the said villages with the malikana rights attaching to them in execution of the decrees aforesaid on the 20th August 1909. The sale-deed was executed on the 19th November 1908. No attempt was made at any time prior to the auction sale by the purchaser or his successors, the present defendant-appellants, to protect the properties comprised in the sale, or for the notification of their liens under the prior mortgages of 1904. The plaintiffs obtained formal possession over the properties purchased by them, but as they were unable to get actual possession the present suit was filed by them for the recovery of possession of the said properties with mesne profits.

5. The defence, so far as it is material for the purpose of this appeal, was that the attachments were inoperative against the sale-deed of the 19th November 1908, because they had been removed by a subsequent order passed by the Court which made those attachments, striking off the execution proceeding on the 9th February 1909, and that the defendants-appellants were in any case entitled to set up their mortgages of 1904 as shields against the claim of the plaintiffs for the possession of the mortgaged properties.

6. Both these contentions were repelled by the Court below and we do not consider that it is possible to take a different view on either of those matters. It appears that the attachments of the villages in question and of the malikana rights appertaining to the same were made on the 14th September 1908. As certain standing crops had also been attached along with those properties which were described as ancestral, the Court proceeded at first with the sale of the standing crops, and on receiving a report that they had been sold and the sale-proceeds had been realized, it struck off the execution proceeding in each case on the 9th February 1909, without taking any steps to proceed with the sale of the remaining properties which had been attached in the same proceeding

7. It does not appear from the order-sheet filed whether those orders were passed in the presence of the decree-holder or his counsel. There was no order made requiring the deposit of the sale-fees by the decree-holder in connexion with the sale of the remaining properties. The execution proceeding was struck off in each case without regard to the impending attachments of the other properties and it is noticeable that in one of those orders the Court significantly observes that the case was to be struck off from the pending file.

8. Before the present Code was enacted there used to be some controversy as to the exact effect of an order striking off or dismissing an execution proceeding and the question which that controversy raised affected the necessity or otherwise of a fresh attachment of the same property in a subsequent proceeding. That controversy was set at rest when Order 21, Rule 57 of the present Code was enacted, which lays down that where any property has been attached in execution of a decree but by reason of the default of the decree-holder the Court is unable to proceed further with the application for execution, it shall either dismiss the application, or for any sufficient reason adjourn the proceeding to a future date, and upon the dismissal of such application the attachment shall cease. The rule incorporated in the Code practically embodied the results of the decisions which had been arrived at by different Courts as regards the effect of an order striking off an execution proceeding on an attachment made in that proceeding, and in substance what it lays down is that if the decree-holder has been in default in not taking the necessary steps to proceed further with the application for execution, and the Court has to dismiss the proceeding; the legal result of such dismissal shall be that the attachment shall cease. That rule does not however apply to a case where a Court strikes off an execution proceeding or consigns the record to the record room to suit its own convenience, or to reduce its pending file without any default having been committed by the decree holder, or without his having been asked to take any further steps necessary for proceeding with it. In the present case there was no default by the attaching decree holder. He had done all he could to get the attachments made to enable him to proceed with the sale of the properties in question. The Court proceeded with the sale of the standing crops because the sale of the other properties, which were ancestral, could not have been effected except through the Collector, to whom the amount due under each of the decrees would have to be certified and no such certificate could have been granted until the amount actually realized from the sale of the standing crops attached was ascertained. After the standing crops were sold, it was the duty of the Court to ask the decree holder to take further steps to proceed with the execution of the decree against the remaining properties which were then under attachment before striking off the execution proceeding. It did not do so nor did it declare, while passing the order striking off the proceeding, whether the attachment was to be maintained or raised. As there was no default it cannot be said that the order aforesaid was an order dismissing the application under Order 21, Rule 57 of the Civil P.C.

9. Even if that were not so the subsequent proceeding taken by the decree-holder on the 23rd February 1909, to revive or continue the present execution proceeding from the stage at which it was left is sufficient to make the attachment made in the previous execution proceeding operative against the sale which was effected by the judgment-debtor in favour of Sant Baksh Sahi during the pendency of that attachment. As pointed out by their Lordships of the Privy Council in Kamar-ud-din Ahmad v. Jawahir (1908) 27 All 334 an application, which is in substance as well as in form an application to revive a pending execution of a decree which had been suspended for no act or default of the decree-holder, is not an application to initiate a fresh execution, and the effect of such an application, if granted, is that the proceeding is continued from the stage at which it was left and any sale effected in pursuance of the attachment made in the previous proceeding is as effective against the judgment-debtor as if it had been held during the pendency of that proceeding itself.

10. In Aziz Bux v. Kaniz Fatima Bibi (1912) 34 All 490 where by a mistake of the Court an application for execution against property which was under attachment was dismissed but no order was made removing the attachment and the decree-holder subsequently obtained a review of that order and the executing Court was directed to proceed, it was held on an application made by the decree-holder to sell the attached property that the attachment still subsisted, and was valid as against a sale made by the judgment-debtor previous to the review.

11. The learned Counsel for the defendants-appellants has referred to the decision in Dildar Husain v. Sheo Narain AIR 1919 All 194. But in that case the application was dismissed at the request of the decree-holder who for some reason or another did not want to proceed with it and that case has therefore no bearing on the present case. As pointed out in Gopal Prasad v. Kashinath AIR 1920 All 356 an order restoring an attachment relates back to the date when the attachment was first made and its effect is to invalidate the sale made during the subsistence of that attachment. The effect of the order granting the application of the decree-holder of the 23rd February 1909, was that the execution proceeding was continued from the stage at which it had been suspended for no act or default of the decree-holder and the sale of the 9th February 1909, through which the defendants-appellants claimed to derive their title cannot be deemed to be enforceable as against the claim arising from the attachment of the 14th September 1908, in pursuance of which the property in dispute was sold and purchased by the plaintiffs-respondents.

12. The defendants-appellants claim the protection of their mortgagee rights under the mortgages of 1904 as against the plaintiffs-respondents, but as those mortgages were not usufructuary mortgages and the plaintiffs have purchased the equity of redemption, it is not open to them to resist the claim of the plaintiffs to possession. The right to possession goes with the purchase of the equity of redemption. The defendants-appellants were not entitled to possession by virtue of their mortgages of 1904. They got possession by virtue of the sale of the 19th November 1909, which is unenforceable as against the claims arising out of the attachment under Section 61 of the Civil P.C. It the sale is invalid, they must surrender possession of the same, because their mortgages did not give any right to possession. They may have a right to sue on their mortgages but the decree for possession cannot be made conditional on the payment of the moneys due on those mortgages, because the right of the plaintiffs to claim possession arises out of the auction sale of the equity of redemption and is independent of the right of the defendants-appellants to enforce their mortgages which gave them no right to the possession of the disputed properties. The other pleas taken in the memorandum of appeal have not been pressed.

13. A cross-objection was filed on behalf of the plaintiffs-respondents but it has also not been pressed. Both the appeal and the cross-objection fail and are dismissed with costs including fees in this Court on the higher scale.