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Bank Of Upper India v. Sheo Prasad

Allahabad High Court
May 7, 1897
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Structured Summary of the Opinion (Burkitt, J.; Knox, J., concurring)

Factual and Procedural Background

One Sheo Bakhsh advanced money to Adhar Singh to enable Adhar to pay Government revenue. No security was taken. When the loan was not repaid, Sheo Bakhsh obtained a money decree dated 24 April 1886 for about Rs. 9,642. Execution was commenced in May 1887 by attaching two villages of the judgment-debtor: Atarra Mahal Ajit Singh and Bairipur, for sale to satisfy the decree.

Bijai Singh, son of the judgment-debtor, objected to the attachment, claiming title to the villages by a deed of gift dated 23 June 1886. The executing Court allowed the objection and ordered the attachment removed in May 1888. Sheo Bakhsh then sued Adhar and Bijai and, on 14 February 1889, obtained a declaratory decree that the two villages were liable to attachment and sale in execution of the 1886 decree. An appeal against that declaratory decree was dismissed by the High Court on 28 January 1891.

Acting on the declaratory decree, Sheo Bakhsh applied for execution on 19 February 1889 and an attachment was levied on the two villages on 22 June 1889. Because the villages were ancestral property, execution was transferred to the Collector on 12 September 1889 under rules framed to give effect to s. 320 of the Code of Civil Procedure.

On 31 January 1890 the Deputy Collector struck the execution case off his file for default and returned the papers to the Subordinate Judge, who also struck the case off his files. The decree-holder repeatedly sought restoration and on 19 November 1890 the Subordinate Judge directed the case to be sent again to the Collector, which the court treated as restoring the state of things as of 12 September 1889. The Subordinate Judge later, by an order dated 8 June 1891, disallowed an application for execution on the ground that it was barred under s. 158 of the Code of Civil Procedure, and execution proceedings before the Collector were terminated.

Sheo Bakhsh appealed the 8 June 1891 order to the High Court. The High Court allowed the appeal on 15 December 1892, set aside the Subordinate Judge's order and directed that "the proceedings in execution will proceed." The Subordinate Judge thereupon again sent the execution case to the Collector on 3 March 1894. Further objections and proceedings followed, including involvement by the Bank of Upper India.

On 4 January 1892 (i.e., in the period between 8 June 1891 and 15 December 1892), Adhar and Bijai Singh borrowed Rs. 30,000 from the Bank of Upper India and mortgaged six villages, including Atarra Mahal Ajit Singh and Bairipur. The Bank sued to enforce its mortgage by sale of the mortgaged villages. The lower Court decreed in favour of the Bank for recovery by sale except with respect to Atarra Mahal Ajit Singh and Bairipur, which it held were under attachment to satisfy Sheo Bakhsh's decree and could not be sold unless that decree were paid off. The Bank appealed, contending that it was entitled to sale of those two villages.

Legal Issues Presented

  1. Whether the appellant Bank's mortgage entitled it to a decree for sale of the two villages (Atarra Mahal Ajit Singh and Bairipur) despite the prior attachment and decree in favour of Sheo Bakhsh (and now his heirs).
  2. Whether the declaratory decree of 14 February 1889 (affirmed by the High Court on 28 January 1891) and the subsequent attachment (22 June 1889) bound a subsequent mortgagee (the Bank) claiming through Adhar and Bijai Singh.
  3. Whether the orders striking the execution case off the files (between 31 January 1890 and 19 November 1890), and later the Subordinate Judge's order of 8 June 1891 disallowing execution, dissolved the attachment, and if so, whether the High Court's appellate order of 15 December 1892 restored the prior attached status.
  4. Whether any asserted consent by Sheo Bakhsh to the 4 January 1892 mortgage could defeat the respondents' claim (i.e., whether Sheo Bakhsh had actually consented to that mortgage).

Arguments of the Parties

Appellant (Bank of Upper India) — Principal Contentions

  • The Bank contended it was entitled to a decree for sale of the two villages under its mortgage of 4 January 1892.
  • The Bank asserted (in its memorandum of appeal and lower court pleadings) that Sheo Bakhsh had been a consenting party to the mortgage of 4 January 1892 — an assertion relied on to defeat the respondents' priority claim.
  • The Bank also argued (as summarized by the opinion) that the effect of the High Court's order allowing the decree-holder's appeal was to leave the decree-holder only with a bare money decree and that he would have needed to reattach and begin execution de novo; implicitly, this contention tended to support the Bank's position that its mortgage should take priority over the earlier attachment.

Respondents (Heirs of Sheo Bakhsh) — Principal Contentions

  • The respondents maintained that the declaratory decree of 14 February 1889 (affirmed by the High Court) conclusively determined that the two villages were liable to attachment and sale in execution of Sheo Bakhsh's decree and therefore bound subsequent claimants, including the Bank.
  • They contended that the attachment levied on 22 June 1889 remained in force and that the Bank's mortgage, executed while the attachment remained valid, was void as against the claims enforceable under that attachment.
  • They disputed any assertion that Sheo Bakhsh had consented to the 1892 mortgage; they did not admit such a statement and the record contained no evidence proving any such consent.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Gunga Rai v. Mussumat Sakeena Begum Authority for the proposition that striking a case off the file does not necessarily dissolve an existing attachment. The Court relied on this authority (among others) to support the view that the orders striking the execution case off the files did not, by themselves, dissolve the attachment imposed in June 1889.
Nadir Hossein v. Pearoo Thovildarinee Same proposition: striking-off does not necessarily undo an attachment. Used to bolster the conclusion that the attachment remained effective despite administrative or procedural striking-off of files.
Golam Yaheya v. Sham Soonduree Kooeree Same or similar authority on the persistence of attachments despite striking of files. Cited in support of the court's view that no formal withdrawal of attachment occurred and that the attachment continued to bind the property.

Court's Reasoning and Analysis

The court proceeded by carefully tracing the procedural history and the legal status of the attachment on the two villages at each relevant point in time, and by applying settled principles about attachments, appellate effect, and priority.

Key steps in the court's analysis:

  1. The declaratory decree of 14 February 1889 (affirmed by the High Court on 28 January 1891) had finally decided that the two villages were liable to attachment and sale in execution of Sheo Bakhsh's decree. That declaratory decree bound not only the judgment-debtor(s) but also a mortgagee claiming through them.
  2. The two villages were attached on 22 June 1889. When the execution proceedings were later transferred to the Collector, the case was struck off the Collector's and the Subordinate Judge's files for default between 31 January and 19 November 1890. The court treated the 19 November 1890 order directing the case to be sent again to the Collector as restoring the state of things existing on 12 September 1889, and observed that the striking off did not, of itself, dissolve the attachment because no formal order withdrawing the attachment had been passed and the decree-holder had neither asked for nor consented to withdrawal.
  3. The Subordinate Judge's order of 8 June 1891 disallowed an application for execution on the ground of bar under s. 158 CPC and thereby brought the execution before the Collector to an abrupt termination. The court observed that the 8 June 1891 order did not formally withdraw the attachment and did not declare the decree incapable of execution; it merely disallowed that particular application.
  4. The court considered whether the 8 June 1891 order had the effect of dissolving the attachment and concluded it was "very doubtful" that it did. Even if that order had the effect of dissolving the attachment, the High Court's appellate order dated 15 December 1892, which set aside the Subordinate Judge's order and directed that "the proceedings in execution will proceed," must be read as setting aside the wrong order "to the fullest extent," and thus restoring the parties to the position as it existed before the erroneous order.
  5. The court rejected the Bank's contention (advanced at the hearing) that the High Court's order left the decree-holder with merely a bare money decree and required him to reattach and reinitiate execution de novo, a result the court found unacceptable because it would penalize the decree-holder for no fault of his own and enable the judgment-debtor to profit by a wrongful intermediate order.
  6. On the question of whether Sheo Bakhsh had consented to the mortgage of 4 January 1892, the court examined the record and found no evidence. The Bank's mortgage deed did not contain Sheo Bakhsh's assent; the only parties were the Bank, Bijai and Adhar. The court therefore refused to accept the Bank's asserted "finding" that Sheo Bakhsh had consented.
  7. Bringing these points together, the court concluded that the two villages were, at the date of the Bank's mortgage, subject to a duly perfected and existent attachment in execution of Sheo Bakhsh's decree (the court explicitly so held). Consequently, under s. 276 of the Code of Civil Procedure, the Bank's mortgage was void as against claims enforceable under that attachment and therefore void as against the decree held by the respondents.
  8. The court noted that the Bank also relied on s. 52 of the Transfer of Property Act (arguing the mortgage was entered into during active litigation and therefore inoperative), but the court considered it unnecessary to express any opinion on that question and did not decide it.

Holding and Implications

Holding: The appellant Bank's appeal is dismissed. The Court held that the two villages (Atarra Mahal Ajit Singh and Bairipur) were, at the date of the Bank's mortgage, under a duly perfected and existent attachment in execution of Sheo Bakhsh's decree, and that the Bank's mortgage is void against claims enforceable under that attachment by virtue of s. 276 of the Code of Civil Procedure.

Immediate implications for the parties:

  • The Bank is not entitled to a decree for sale of the two disputed villages under its 4 January 1892 mortgage as against the respondents' prior attachment and decree.
  • The respondents' prior lien arising from the execution attachment and decree is upheld; the Bank's mortgage is void as against that lien.
  • The appeal is dismissed and the Bank must bear the costs of the appeal.

Broader implications: The opinion applies and relies on earlier authorities about the persistence of an attachment despite procedural striking-off of a case from the files and treats an appellate order setting aside an erroneous subordinate order as restoring the parties to their pre-existing status. The Court did not articulate that it was laying down any novel legal principle beyond these applications of existing authority and statutory provisions; it did not express an opinion on the argument under s. 52 of the Transfer of Property Act.


This summary is limited to and strictly reflects only the information contained in the provided opinion.

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[483] Burkitt, J. (Knox, J., concurring):— This case is a very instructive illustration of the saying that a successful litigant's troubles commence when he tries to execute his decree, as we have here the case of a decree-holder who for more than eleven years has been unable to obtain the fruits of a decree in his favour.

The facts are as follows:—

One Sheo Bakhsh lent money to one Adhar Singh wherewith to pay the Government revenue due from him and to save his property from sale. No security was taken for the loan. The money not being repaid, Sheo Bakhsh sue Adhar Singh and obtained a money decree on the 24th April 1886 for some Rs. 9,642 odd. He took out execution in May 1887 by attaching two villages belonging to his judgment-debtor, namely, Atarra Mahal Ajit Singh and Bairipur, and asked that they should be sold and his decree paid off from the proceeds of the sale. His troubles then began. An objection to the attachment was made by Bijai Singh, son of the judgment-debtor. Bijai Singh claimed these villages as his property under a deed of gift, dated June 23rd, 1886, from his father, the judgment-debtor. The Court executing the decree allowed the objection and directed the attachment to be removed. That order was passed in May, 1888. The decree-holder thereupon instituted a suit against his judgment-debtor and against Bijai Singh, and on February 14th, 1889, he obtained a decree declaring that the two villages were liable to attachment and sale in execution of the decree of April 1886. An appeal was taken against the declaratory decree, but was dismissed by the High Court on January 28th, 1891. Meanwhile the decree-holder took prompt action on the decree of February 14th, 1889. He made an application on February 19th, 1889, to the execution Court, on the strength of that decree, asking, for attachment and sale of the two villages. That application was granted, an attachment being levied on the two villages, on the 22nd June 1889. As the villages attached were ancestral property, the further execution of the decree was, on September 12th, 1889, transferred to the Collector under the rules framed by Government to give [484] effect to s. 320 of the Code of Civil Procedure. The case, however, did not remain long in the Collector's Court. For on January 31st, 1890, as the decree-holder was unable to attend at his Court in came in the interior of the district, the Deputy Collector, on whose file the execution case was pending, struck it off for default and returned the papers to the Subordinate Judge, who at once followed suit by striking the case off his pending files. This proceeding was quite unnecessary, as he had struck the case off his files when he sent it to the Collector in September. The decree-holder then made several ineffectual attempts to induce the Subordinate Judge to send back the case for further execution to the Collector. At last, on an application made in September, 1890, the Subordinate Judge directed the case to be again sent to the Collector for further execution. This order was made on November 19th, 1890. The result of this last, order was in our opinion to restore the state of things which existed on September 12th, 1889, when the decree first was sent to the Collector for execution. There was no necessity for any further attachment. The orders of the Deputy Collector and of the Subordinate Judge striking the execution case off their files of pending cases did not dissolve the attachment which had been imposed in the previous June, 1889. No formal order was passed, by either tribunal, withdrawing the attachment, and the decree-holder certainly had neither asked for nor consented to such a withdrawal. In this opinion we are supported by the authority of many decided cases, e.g, Gunga Rai v. Mussumat Sakeena Begum, Nadir Hossein v. Pearoo Thovildarinee, Golam Yaheya v. Sham Soonduree Kooeree, &c. We may add also that as to this point no question was raised nor any argument addressed to us at the bearing of this appeal. With there transfer of the execution case to the Collector the decree-holder's troubles did not come to an end. The judgment-debtor early in January 1891, put in a petition before the Subordinate Judge in which, on various technical [485] grounds, be objected to the continuance of the execution proceedings before the Collector. That petition was rejected on technical grounds on April 17th, 1891. The judgment-debtor, however, preserved, and, on April 13th, 1891, he again put in a petition in which on technical grounds he contended that the decree was not capable of execution, and prayed that the decree-holder's application for execution might be disallowed. The Subordinate Judge thereupon went into the matter, and by order dated June 8th, 1891, held that the pending proceedings in execution could not be maintained and disallowed the application for execution. The Subordinate Judge held that the application was barred under s. 158 of the Code of Civil Procedure by reason of the infructuous proceedings, mentioned above, which took place between the orders of January 31st and November 19th 1890.

The result of the decision of June 8th, 1891, was that the decree-holder's execution proceedings before the Collector came to an abrupt termination, and the papers were returned to the Subordinate Judge. So after the expiration of more than five years from the date of his decree the decree holder, through no fault of his own, found himself do nearer getting the benefit of his decree than he had been in 1886. He, however, now appealed to the High Court against, the order of June 1891 and prayed that Court to order execution of his decree to be proceeded with. The appeal was allowed by the High Court on December 15th, 1892, the order of the Subordinate Judge was set aside, and it was ordered that “the proceedings in execution will proceed.”, Thereupon the decree-holder again applied to the Subordinate Judge on the strength of the order of the High Court and the case was on his application, by order of March 3rd, 1894, again sent to the Collector for further execution. Even then the judgment-debtor was not satisfied. He again, on April 21st, 1894, applied to the execution Court objecting to the order for execution, and to the transfer of the proceedings to the Collector. It is not necessary to notice the reasons be gays for his objection. Here the appellant [486] Bank for the first time came on the scene. It also, on May 4th, 1894, practically supported the objections made by the judgment-debtor and called on the Court to compel the decree-holder to attach a new and to notify the terms of a mortgage it held, from the judgment-debtor. Both objections were overruled by the Court, and an appeal to the High Court was dismissed in June 1896.

But meanwhile, i.e, between the orders of June 8th, 1891, and of December 15th, 1892, the case had entered into a new phase. On the 4th of January, 1892, the judgment-debtor, jointly with his son, Bijai Singh, borrowed Rs. 30,000 from the Bank of Upper India and as security for the repayment of the loan, mortgaged six villages, among which are the two villages Atarra Mahal Ajit Singh and Bairipur which the decree-holder Sheo Bakhsh had attached on June 22nd, 1889, in execution of his decree, and in respect of which the execution proceedings had been twice transferred to the Collector. Hence the present suit, in which the plaintiff Bank seeks to enforce its mortgage by sale of all the mortgaged villages. The persons impleaded as defendants are Adhar and his son (who have not appeared) and the five sons of Sheo Bakhsh, the decree-holder referred to above, now deceased. The lower Court gave the Bank a decree for recovery of the loan by the sale of the mortgaged property, with the exception of Atarra Mahal Ajit Singh and Bairipur. It held that, as these villages were under attachment to satisfy the decree held by Sheo Bakhsh's sons, the Bank could not bring them to sale unless it paid off that decree. The Bank appeals, contending that it is entitled to a decree for sale of the two villages just mentioned.

In the memorandum of appeal the Bank refers to what it calls a “finding” by the Subordinate Judge that Sheo Bakhsh was a consenting party to the mortgage of January, 1892. We are unable to discover any such “finding” on the record. The Subordinate Judge in that which he calls “a short account of the case,” but which clearly is no more than a historical resume of [487] the case of each party, does say that “Sheo Bakhsh having joined the executants expressed his consent to the contents of the document.” It is impossible to say where the Subordinate Judge got that statement. It is not mentioned in the plaint, nor referred to in the written statement, nor was it put in issue. Neither Adhar nor Bijai Singh put in an appearance, so the statement could not have been made by them, and the present respondents certainly did not make any such admission and do not admit it now. The Bank's mortgage deed also contains no assent whatever by Sheo Bakhsh nor any mention of his name; the only parties to it are the Bank, Bijai and Adhar. Probably the fact was asserted by the Bank's pleader when stating his case in the lower Court, and that would explain why—no evidence being produced to support it—the Subordinate Judge made no mention of it in his judgment. It is too large a draft on our credulity to ask us to believe that Sheo Bakhsh, who for years had been straining every nerve to obtain execution of his decree, and whose appeal was then pending in the High Court, could have taken such a fatal step as to assent to the mortgage of January 4th, 1892. We notice that in its judgment of January 28th, 1891, referred to above, the High Court treated with contempt a similar plea that Sheo Bakhsh had consented to the deed of gift.

Passing away from that matter, we have now to decide whether the appellant Bank is entitled to a decree for sale of the two villages under its mortgage, or whether the respondents have a prior lien. The Subordinate Judge has found in favour of the respondents. In our opinion his decision is right. The declaratory decree given by the Subordinate Judge on February 14th, 1889 (affirmed by the High Court on January 28th, 1891). decided finally that the two villages were liable to sale in execution of Sheo Bakhsh's decree, and that decree bound not merely Adhar and Bijai, but also their mortgagee the Bank, which claims title through them. It has been held by some authorities that the decree of February 14th, 1889, had the effect of restoring the attachment which had been removed on May 12th, 1888. It is [488] unnecessary to decide that point, as the two villages were again duly attached on June 22nd, 1889, and undoubtedly remained subject to that attachment at least up to Judo 8th, 1891, the date on which the Subordinate Judge disallowed the then pending application for execution, wrongly holding that application was barred under s. 158 of the Code of Civil Procedure. Now it is in our opinion very doubtful whether that order had the effect of dissolving the attachment. The order did not formally withdraw the attachment, nor did it declare (as was incorrectly stated at the bearing of this appeal) that the decree was incapable of execution. It did he more than lay down that execution should not be allowed on that particular application. But if it be the case that the effect of that order was to dissolve the attachment, we are of opinion that the effect of the order of the High Court in appeal (December 15th, 1892) was to wipe out the order of June 8th, 1891, and to re-establish the position of the parties as it stood before that order was made. The argument for the appellant Bank is that the effect of the order of the High Court was to send the decree-holder back to the Subordinate Judge with a bare money decree in his bands, deprived of the security he had obtained by the attachment in June, 1889, and of the benefit of the protection given by s. 276 of the Code of Civil Procedure. In short, it is contended that the only course open to this decree-holder, on succeeding in his appeal in the High Court, and on obtaining from that Court an order that the proceedings in execution should proceed, was to apply again for attachment and sale and to begin de novo, subject to any alienation which his judgment-debtor might have made in the interval between the two orders. Admittedly the decree-holder was in no way in fault. It was the Subordinate Judge who made a wrong order, and, if the contention for the appellant be correct, the effect of that wrong order is to damnify the unfortunate decree-holder most disastrously by enabling Adhar successfully to swindle his creditor. We are unable to believe that the law can be as contended for by the appellant Bank. We are of opinion that when the High Court [489] set aside the wrong order of the Subordinate Judge, it set it aside to the fullest extent, and that, if the effect of that order was to dissolve the attachment, the effect of the appellate order was to cancel that portion also of the Subordinate Judge's order. We fail to see why we should hold that portion of the order was not affected by the appellate decree. We bold, therefore, that the two villages in dispute in this appeal were at the date of the appellant Bank's mortgage lying under a duly perfected and existent attachment in execution of Sheo Bakhsh's decree, and that under the provision of s. 276 of the Code of Civil Procedure the Bank's mortgage is void against any claims enforceable under that attachment, and therefore void against the decree held by the respondents.

It also was contended that the Bank's mortgage would, under the provision of s. 52 of the Transfer of Property Act, be inoperative as against the respondent's decree on the ground that the mortgage was entered into during the active prosecution of a contentious proceeding in which the right to sell the dispute villages was directly and specifically in question. We, however, consider it to be unnecessary to express any opinion on that question.

For the reasons given above we are of opinion that this appeal fails. We therefore dismiss it with costs.

Appeal dismissed.