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  • Order XVII, Rules 1 and 3 under the Judicature Act, Rules
  • Section 588 (21) of the Code.
  • Procedure Code, Section 591,
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Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Case Number
Judges
Acts
  • Order XVII, Rules 1 and 3 under the Judicature Act, Rules
  • Section 588 (21) of the Code.
  • Procedure Code, Section 591,
Smart Summary

Factual and Procedural Background

This appeal arises from an order passed by the Subordinate Judge of Dehra Dun dated 28 February 1887, which purported to be passed in execution of a Privy Council decree dated 21 March 1882. Prior to August 1878, Raynor brought a suit against the Mussoorie Bank concerning an attachment of twenty-four shares in the London and Delhi Bank. The Subordinate Judge originally dismissed Raynor's suit. On appeal to the High Court, the decree of the Subordinate Judge was reversed and the plaintiff's suit was decreed on 22 August 1878. The Mussoorie Bank sought leave to appeal to the Privy Council; the High Court refused leave on 13 January 1879, but the Bank obtained special leave from the Privy Council on 14 August 1879. Between those two dates, twelve of the twenty-four shares were transferred by Raynor to Mr. Goodall (the appellant), a transfer that occurred after the High Court's decree. The Privy Council dismissed the appeal (decreed the appeal) on 21 March 1882.

Execution proceedings followed. On 24 July 1882 an application for execution was made; the Subordinate Judge ordered Raynor to produce the shares and, on his failure, ordered his arrest. On 3 March 1884 the Mussoorie Bank petitioned the Subordinate Judge that Goodall be brought on as the representative of Raynor. On 1 April 1884 the Subordinate Judge issued a notice to Goodall to show cause why he should not be called upon to restore the shares. On 25 November 1884 the Subordinate Judge made Goodall a party to the decree in the character of a judgment-debtor. Subsequently, on 28 February 1887 the Subordinate Judge directed Goodall either to hand over the shares or to pay their equivalent and ordered, under section 259, that certain property belonging to him would be sold in default.

The present appeal confines itself to the question of whether the Subordinate Judge had jurisdiction to make the 25 November 1884 order that made Goodall a party to the decree and a judgment-debtor. The appeal was argued before Straight, J., who limited the decision to that jurisdictional question. The appeal succeeded: the High Court held that the Subordinate Judge had no jurisdiction, set aside the order, decreed the appeal with costs quoad the Mussoorie Bank, and dismissed the respondent Raynor by consent with costs.

Legal Issues Presented

  1. Whether the Subordinate Judge had jurisdiction to make the order of 25 November 1884 making Goodall a party to the suit after the decree (i.e., to make him a judgment-debtor for the purposes of execution).
  2. Whether Section 647 of the Code, read with Section 372, permits a Court executing a decree to bring in as a party a person who acquired an interest in the subject-matter after the decree (whether the phrase "pending the suit" in Section 372 includes transfers after decree).
  3. Whether an objection going to the jurisdiction of the Subordinate Judge may be raised in the present appeal even though the earlier order of 25 November 1884 had not been separately appealed.

Arguments of the Parties

Respondent's Arguments (Mr. J. E. Howard for the Mussoorie Bank)

  • The objection to the order of 25 November 1884 is too late: that order might have been appealed under Section 588(21) of the Code and, having not been appealed, it became final and cannot now be questioned.

Appellant's Arguments (Mr. A. Strachey for Goodall)

  • The order of 25 November 1884 was interlocutory in character, while the order now under appeal is in the nature of a final decree (Section 2 of the Code). In an appeal from such a final decree, all interlocutory orders, appealable or not, may be objected to under Procedure Code, Section 591.
  • The objection goes to the jurisdiction of the Subordinate Judge to make the order in question and, being jurisdictional, may be raised at any time.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Attorney-General v. Corporation of Birmingham, L. R., 15 Ch. D. 423 Principle that a statement of claim or bill cannot be amended after final judgment; persons acquiring title after judgment cannot be brought in by amendment but must be sued afresh. Used as an analogous authority to support the proposition that a court cannot, after final judgment, amend the record to bring in persons who acquired title afterwards; supports the conclusion that Section 372 cannot be applied to execution proceedings to bring in persons who acquired interest after decree.
Gocool Chunder Gossamee v. The Administrator-General of Bengal, I.L.R. 5 Cal., 726 (per Pontifex, J.) Interpretation that the words "pending the suit" mean during the progress of the suit and before the passing of the decree. Cited to support the view that Section 372's phrase "pending the suit" excludes transfers that occurred after the decree and therefore Section 372 could not be applied in execution proceedings in the present case.
Amir Hasan v. Ahmad Ali, I.L.R. 9 All., 36 Authority indicating Section 647 was intended to provide procedure for miscellaneous matters (e.g., probate) similar to that of suits. Relied on to show Section 647 was not intended to make the procedure in suits before decree applicable indiscriminately after decree; supports limited application of Section 647.
Naigappa v. Gangawa, I.L.R. 10 Bom., 433 Authority cited in relation to the scope of Section 647 and analogous procedural rules. Used with other authorities to demonstrate that Section 647 provides procedure for miscellaneous matters and does not authorize bringing in parties after decree as if in a suit.
In the matter of the petition of Jodoo Monee Dossee, 11 W. R. 494 Authority cited on the limited purpose of procedural provisions analogous to Section 647. Relied on to show Section 647's limited ambit and that it was not intended to permit post-decree joinder of parties in execution proceedings.
Har Narain Singh v. Kharag Singh, I.L.R. 9 All. at p. 451 Authority cited in the context of appealing from final decrees and raising objections to interlocutory orders under Section 591 of the Procedure Code. Cited by the appellant (and referenced by the Court) to support the submission that interlocutory orders may be objected to in an appeal from a final decree.
Googlee Sahoo v. Premlall Sahoo, I.L.R. 7 Cal., 148 Authority cited alongside Har Narain Singh concerning appeals and objections to interlocutory orders. Used in support of the appellant's contention that jurisdictional objections to interlocutory orders can be raised in an appeal from a final decree.
Raynor v. The Mussoorie Bank, I.L.R. 7 All., 681 Factual/case reference establishing that Goodall acquired interest subsequent to the decree. Referred to by the Court to show that Goodall's acquisition of shares occurred after the decree, and therefore Sections 372 and 647 were inapplicable.

Court's Reasoning and Analysis

The Court (Straight, J.) confined the decision to the single point of whether the Subordinate Judge had jurisdiction to make the 25 November 1884 order bringing Goodall on the record as a judgment-debtor after final decree. The Court set out the relevant facts and chronology (initial suit, High Court decree of 22 August 1878, Privy Council decree of 21 March 1882, transfer of shares to Goodall after the High Court decree, execution proceedings and the orders of 25 November 1884 and 28 February 1887).

The Judge then addressed the respondent's contention that the 25 November 1884 order had become final because it had not been separately appealed. The Court rejected that contention in circumstances where the objection goes to the very authority of the Court to make the order (i.e., the Court's lack of jurisdiction). The Court held that a jurisdictional objection of that character may be entertained in the present appeal.

Turning to statutory interpretation, the Court analyzed Section 647 of the Code and Section 372. Section 647 provides that the procedure prescribed for suits "shall be followed as far as it can be made applicable" in other proceedings, but the Court found it impossible to make Section 372 applicable to execution proceedings. The Court emphasized the meaning of the words "pending the suit" in Section 372 as signifying the period during the progress of the suit and before the passing of the decree. The Court relied on Pontifex, J.'s observations in Gocool Chunder Gossamee and on the analogous decision of Jessel, M. R., in Attorney-General v. Corporation of Birmingham, that post-judgment amendments to bring in persons who acquired title after judgment are not permitted and that separate actions are required to enforce judgments against such persons.

Because Goodall's acquisition of the shares occurred after the decree, the Court concluded that Sections 372 and 647 were not applicable; Goodall was improperly made a judgment-debtor; and consequently the provisions of Section 259 (which the Subordinate Judge sought to enforce against Goodall) could not be applied to him. On that basis the Court allowed the appeal quoad the Mussoorie Bank and set aside the Subordinate Judge's order. By consent, the respondent Raynor was dismissed with costs.

Holding and Implications

Holding: The appeal was allowed quoad the Mussoorie Bank and the order of the Subordinate Judge (including the order of 25 November 1884 that made Goodall a judgment-debtor and the subsequent order of 28 February 1887 directing execution against him) was set aside. By consent, Raynor was dismissed with costs.

Implications:

  • The Subordinate Judge was held to have lacked jurisdiction to make Goodall a party as a judgment-debtor after the decree because the relevant statutory provisions (Sections 372 and 647) do not permit the joinder of persons who acquired an interest after the passing of a decree in execution proceedings.
  • As a direct result, the execution provisions relied upon (including Section 259) could not be validly enforced against Goodall in those proceedings.
  • No broader or novel legal principle beyond this application was discussed in the opinion; the decision addresses and resolves the direct dispute between the parties rather than announcing an expansive new precedent.

    Goodall (Judgment-Debtor) v. The Mussoorie Bank, Limited And Another (Decree-Holders).

    1. Confine yourself to your sixth ground of appeal. I do not see what jurisdiction the Subordinate Judge had to make the order of the 25th November 1884, making the appellant a party to the suit after decree.

    2. There was no jurisdiction to make such an order: Attorney-General v. Corporation of Birmingham, L. R., 15 Ch. D. 423; Gocool Chunder Gossamee v. The Administrator-General of Bengal I. L. R., 5 Cal., 726; 5 Cal., L. R. 108, per Pontifex, J. See Order XVII, Rules 1 and 3 under the Judicature Act, Rules of 1883. The appellant did not purchase

    "pending the suit"
    .

    3. The other side will rely on section 647 of the code, but that section does not mean that the procedure in suits before decree is to be applied indiscriminately after decree. It was intended to provide a procedure for miscellaneous matters, such as probate, similar to that of suits: Amir Hasan v. Ahmad Ali I. L. R., 9 All, 36; Naigappa v. Gangawa, I.L.R., 10 Bom., 433; In the matter of the petition of Jodoo Monee Dossee, 11 W. R. 494. The only way in which Section 647 could have been applied was to make the appellant a party while the appeal was pending before Her Majesty in Council by application to the Judicial Committee, or, if the appellant had purchased during the proceedings in, execution of the Privy Council decree, those proceedings might have been treated as analogous to a suit. Further, the proper person, if any, to be made a party under Section 372 was not Goodall, but his transferee. At the time when the order of the 25th November 1884 was passed, the appellant had parted with all his interest in the shares. [He was stopped.]

    4. Mr. J. E. Howard, for the Respondent (the Mussoorie Bank). This plea is too late. The order of the 25th November 1884, as pointed out by Tyrrell, J., might have been appealed under Section 588 (21) of the Code. No appeal having been preferred, the order has become final and cannot now be questioned.

    5. Mr. A. Strachey, for the Appellant, in reply. The order of the 25th November 1884 was of an interlocutory character, and the order now under appeal is in the nature of a final decree--Section 2 of the Code--in appeal from which all interlocutory orders, appealable or otherwise, may be objected to: Civil; Procedure Code, Section 591, Har Narain Singh v. Kharag Singh I. L. R., 9 All. at p. 451, Googlee Sahoo v. Premlall Sahoo I. L. R., 7 Cal., 148. The objection goes to the jurisdiction of the Subordinate Judge to make the order now under appeal, and it may be made at any time.

    Straight, J.

    6. This is an appeal from an order passed by the Subordinate-Judge of Dehra Dun on the 28th February 1887. That order professes to be passed in execution of a Privy Council decree dated the 21st March 1882, and I may, for the purpose of making it quite intelligible why I have adopted the view of this case that I have, state a few dates and facts. Some time prior to August 1878, a gentleman of the name of Raynor brought a suit against the Mussoorie Bank in respect of an attachment that had been made of twenty-four shares in the London and Delhi Bank. That suit was instituted in the Court of the Subordinate Judge of Dehra Dun, and it was ultimately dismissed by that Court. Then an appeal was preferred to this Court, and Sir Robert Stuart, Chief Justice, and Pearson, J., who heard that appeal, reversed the decision of the Subordinate Judge, and decreed the plaintiff's suit on the 22nd August 1878.

    7. The Bank then applied to the two learned Judges of this Court who had heard the appeal for leave to appeal from their decree to their Lordships of the Privy Council, and on the 13th January 1879 that application was refused. The Bench incidentally observed, I suppose for the purpose of affording information to the parties, that it was open to them to go direct to their Lordships of the Privy Council and obtain special leave. That course was adopted by the Mussoorie Bank, and on the 14th August 1879, they obtained such leave from their Lordships of the Privy Council, and their appeal was admitted. Between the date when this Court refused leave and the date when special leave was granted by the Privy Council, twelve out of the twenty-four shares in the London and Delhi Bank which were the subject-matter of the action were transferred by Raynor to Mr. Goodall, the appellant before us. Whether that was a transfer pendente lite is a matter about which I am not called upon to express any opinion, and I express none, though upon further consideration since yesterday, and in order to correct any erroneous impression that may have been gathered from some remarks made by me, I am by no means clear that the doctrine of lis pendens will apply to the circumstances of this case. The Privy Council order decreeing the appeal and dismissing the suit was made on the 21st March 1882, and in the ordinary course it was forwarded to this Court for transmission to the Court of the Subordinate Judge of Dehra Dun for execution. On the 24th July 1882 an application for execution was made, and among the matters asked by the decree-holder was that the Court would cause the shares unduly realized by Raynor in execution of the High Court's decree to be restored. Upon that application an order was made by the Subordinate Judge directing Raynor to produce the shares, and he failing to do so, an order was made for his arrest, and, as I understand it, he was arrested. From that time until the month of March 1884, no further steps seem to have been actively taken for the purpose of executing the decree; but on the 3rd March 1884 the Bank filed a petition in the Court of the Subordinate Judge, praying that Goodall, the appellant before us, might be brought on as the representative of Raynor. On the 1st April 1884, the Court issued a notice to Goodall, the terms of which are most significant, and they in substance were as follows, namely, that Goodall was to show cause why he should not be called upon to restore the shares. Now that was the notice to Goodall, and was the only intimation he ever received from the Court of the Subordinate Judge as to what was required from him, and yet upon a notice of that kind, and in reference to a certain affidavit which Goodall sent from England to the Court of the Subordinate Judge, that Court, on the 25th November 1884, made Goodall a party to the decree in the character of a judgment-debtor. Having put him on the record in that character and after certain proceedings had been held, the Subordinate Judge subsequently passed the order of which complaint is now made on the 28th February 1887, by which, treating Goodall as a judgment-debtor and as a person amenable to the execution of the decree, he directed him either to hand over the shares or to pay their equivalent, and went on to order that, in default of doing so, under the provisions of section 259, certain property belonging to him would be sold to satisfy the decree.

    8. At the commencement of the argument yesterday, which was so concisely put before us by Mr. Strachey for the appellant, I suggested to him the propriety of confining himself to the single question of the jurisdiction of the Subordinate. Judge to pass such an order by reason of his want of jurisdiction to have passed the order of the 25th November 1884, making Goodall a party to the decree. That is the only question that has been discussed, that is the only question which I propose to decide, and, as I am in favour of the appellant upon that point, his appeal will succeed and the order of the Judge will be set aside.

    9. Before, however, closing the remarks I have to make in regard to this case, I desire to point out why it is that I think the order of the Judge is without jurisdiction. Mr. Howard for the respondent yesterday suggested that as the order of the 25th November 1884, had not been appealed as it might have been, it had, by reason of the absence of any such appeal, become final, and it was not open to Mr. Strachey in the present proceeding to question the jurisdiction of the Subordinate Judge to make either that order or any other order passed in regard to Goodall, who by that order had been joined as a judgment-debtor.

    10. I dissent from that contention of Mr. Howard, and I have no hesitation in holding that in an appeal of the kind before me, where the objection goes to the very root of the matter and to the authority of the Court to make the order in the sense that it had no jurisdiction at all, I am entitled to entertain it, and if it has force, to give effect to it. In my opinion the Subordinate Judge had no power under the law to bring in a party after the decree and make him a judgment-debtor for the purpose of applying the provisions applicable to the execution of the decree. It is said that taking section 647 of the code and reading it in conjunction with Section 372, it is competent for a Court executing a decree to do on the execution side what a Court on the original side may do under the latter section; that is to say, it may, after decree, bring in any person who by assignment, creation, or devolution of any interest "pending the suit", has become interested in the subject-matter thereof. It is noticeable that Section 647 is specific in its terms. It says that the procedure herein prescribed shall be followed "as far as it can be made applicable" in all proceedings in any Court of civil jurisdiction other than suits and appeal. But it is impossible to my mind to make Section 372 applicable to execution proceedings, because by its own language it negatives any such applicability to execution proceedings. The words used there are "assignment, &c, "pending the suit"." What the meaning of the words ""pending the suit"" is to my mind perfectly clear, namely, during the progress of the suit and before the passing of the decree, and in that interpretation I am borne out by the observations of Pontifex, J., in Gocool Chander Gossamee v. The Administrator-General of Bengal I. L. R., 5 Cal., 726. Moreover, in reference to a somewhat analogous rule under the Judicature Act I find a decision of Jessel, M. R., concurred in by James and Brett, L., JJ., in Attorney-General v. Corporation of Birmingham, L. R., 15 Ch. D., 423, where Jessel, M. E., remarks: "A statement of claim or bill cannot be amended after final judgment. If it becomes necessary to enforce that judgment against persons who have acquired a title after it was made, an action must be brought for that purpose."

    11. Here it is to be observed that in the wording of Section 372 the language is almost identical with the rule cited by Jessel, M. R., and it shows what is t& be done in reference to the continuing of a suit, i. e., a trial of a case when the subject-matter with which the suit is concerned has passed away to another person. It is not pretended here that Goodall acquired any interest prior to the date of the decree; on the contrary, it was subsequent to the decree that he acquired such interest [see Raynor v. The Mussoorie Bank I. L. R., 7 All., 681. That being so, I am of opinion that Sections 372 and 647 had no application to the case; that Goodall was improperly made a judgment-debtor, and so improperly being made a judgment-debtor, the provisions of section 259, which are sought to be enforced against him, are in no way applicable. The result is that the appeal is decreed with costs, quoad the Mussoorie Bank, and the order of the Subordinate Judge set aside. As to the respondent Raynor it is by consent dismissed with costs. Raynor had been cited as a respondent through some mistake. He was represented by Mr. G. E. A. Ross.

    Brodhurst, J.

    12. I concur.

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    Comments

    Goodall (Judgment-Debtor) v. The Mussoorie Bank, Limited And Another (Decree-Holders).
    (Nov 11, 1887)