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Chhatraput Singh Judgment-Debtor, v. Gopi Chand Bothra And Others Decree-Holders,

Calcutta High Court
Mar 20, 1899
Smart Summary (Beta)

Structured Summary of the Opinion (per provided text)

Factual and Procedural Background

This appeal arises from an application for execution of two decrees obtained by Rai Dhunput Singh Bahadur against the present Appellant in respect of certain putni rents. Key events and procedural history set out in the opinion are:

  • 27 June 1893 — Dhunput Singh, owner of Pergunnah Haveli (within which the putni mehals are situated), sold his right and interest to Mussamut Bhagwanbati Chowdhrani.
  • 10 July 1896 — Dhunput obtained the two decrees in question for rents due from the Appellant for a period prior to the sale.
  • 19 July 1896 — Dhunput executed a trust deed in favour of Gopi Chand Bothra and others, conveying various moveable and immoveable properties (and including the two decrees) upon specified trusts for liquidation of debts.
  • September 1896 — Dhunput Singh died.
  • 3 December 1896 — The trustees applied for execution of the two decrees.
  • 3 March 1897 — The judgment-debtor (the Appellant) filed a petition of objection raising several points: that the trustees' power ended on Dhunput's death; that Dhunput's sons were his legal representatives; that the judgment-debtor's right had been sold to Bibi Jarao Kumari Saheba (or, as later referenced, Bibi Jarao Kanwari), precluding proceedings against the tenure; and that under cl. (h) of section 148 of the Bengal Tenancy Act the trustees' application for execution was not maintainable.
  • The Subordinate Judge formulated four points for determination (set out in the judgment) and on decision held that the trustees retained power after Dhunput's death, that the rents constituted a continuing lien, and that Maharaj Bahadur's subsequent joinder cured any technical non-joinder. The Subordinate Judge therefore overruled the objections, directed execution by the trustees and Maharaj Bahadur, and declared the putni tenures liable to be sold in execution.
  • The judgment-debtor appealed to the Court (this appeal), and the same objections were argued before the Court.

Legal Issues Presented

  1. Whether the application for execution of the decree on behalf of the trustees was maintainable (i.e., whether the trustees had authority to apply, given Dhunput Singh's death).
  2. If maintainable, whether the decree under execution can be treated as a first charge on the properties sought to be sold, and whether they should be considered rent decrees.
  3. Whether Maharaj Bahadur alone is the legal heir and representative of the deceased Rai Dhunput Singh, the original decree-holder.
  4. Whether a subsequent application by Maharaj Bahadur for being added as an applicant remedies any defect which the judgment-debtor seeks to press (for example, defects arising from non-joinder of personal representatives).

Arguments of the Parties

Appellant's (Judgment-debtor's) Arguments

  • The trustees' power terminated upon the death of Dhunput Singh because they were merely his agents, and agency ends with the principal's death; therefore they had no authority to apply for execution.
  • The decree-holder's adult sons (Gunpat Singh and Nurput Singh) and his minor son (Maharaj Bahadur Singh) were the legal representatives, implying that the trustees alone were not proper applicants.
  • The judgment-debtor's right in the properties had already been sold and purchased by a third party (referred to in the text as Bibi Jarao Kumari Saheba / Bibi Jarao Kanwari), so the respondents (trustees) were not entitled to proceed against the tenure.
  • Under clause (h) of section 148 of the Bengal Tenancy Act an application for execution of a landlord's arrears decree "shall not be made by an assignee of the decree unless the landlord's interest in the land has become and is vested in him"; therefore trustees (as assignees) could not maintain the execution application unless the landlord's interest had vested in them.

Applicants' / Trustees' (and Maharaj Bahadur's) Arguments

  • The trust deed was not merely a delegation of agency but indeed a conveyance creating a legal estate in the trustees (subject to trusts), operative during Dhunput's life and after his death until debts were satisfied; it was irrevocable by his heirs and representatives as expressed in the deed.
  • According to the terms of the trust deed the trustees were to hold possession as proprietors, register in the Collectorate, pay debts from property profits or by mortgage and sale, and after satisfying debts return any surplus to Dhunput or his heir Maharaj Bahadur — demonstrating the trustees' continuing power to act after death.
  • Maharaj Bahadur (the minor heir) joined the execution application subsequently, thus curing any technical defect arising from non-joinder of the personal representative.
  • The trustees (or the combined applicants including Maharaj Bahadur) were entitled to enforce the lien for rents that accrued while the landlord-tenant relationship existed; the sale of tenures in execution of a money decree or the judgment-debtor's loss of property did not extinguish the pre-existing lien for those rent decrees.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Lewin on Trust (textbook passages cited) Cited in discussion of agency versus trust/transfer — authority for principles on when a document creates an agency or a conveyance to trustees. The Court observed that passages from Lewin must be read with the facts and deeds of the authorities on which the text-book cases proceeded; the Court therefore examined the actual trust deed terms rather than applying the textbook passages mechanically, and concluded the deed effected a conveyance, not merely an agency that ended on the settlor's death.
Fink v. Maharaj Bahadur Considered the legal effect of a deed executed to create a trust for payment of debts; addressed whether creditors were beneficiaries able to take advantage of the deed. Macpherson, J. relied on the case to show that the deed in question appeared to be more than a mere deed of agency. The Court noted the earlier decision's limited context (creditor-beneficiary issue) but used it to support the conclusion that the trust deed purported to convey property in trust for debt payment and was not, for present execution purposes, a nullity on the death of the settlor.

Court's Reasoning and Analysis

(Combined summary of the reasoning of Ameer Ali, J. and Macpherson, J., as presented in the opinion)

  1. Analysis of the trust deed's terms:
    • The Court examined the trust deed (dated 19 July 1896) closely and recited its operative provisions: transfer of all immoveable and moveable properties to named trustees to hold possession as proprietors; trustees to register in the Collectorate; application of profits, mortgages and sales to pay debts; return of surplus to Dhunput or his heir (Maharaj Bahadur); the deed declared irrevocable and expressly stated it would remain in force after Dhunput's death until debts were satisfied; it described itself as a deed of conveyance of property.
    • On that textual basis the Court concluded the deed conveyed a legal estate to the trustees subject to trusts, rather than creating a mere agency which would terminate on the settlor's death.
  2. Consequence for trustees' authority to apply for execution:
    • Because the deed conveyed the properties to the trustees and provided that the trust continued after death, the Court held trustees retained authority to execute the decrees included in the conveyance; the trustees were not functus officio simply because Dhunput died.
    • The Court rejected the appellant's contention that the trustees were only agents and so lost authority on Dhunput's death, finding that the document's terms contradicted that characterization.
  3. Effect of joinder of Maharaj Bahadur:
    • The Court noted that Maharaj Bahadur (the minor heir and intended beneficiary under the trust) joined the application for execution. The Court held that Maharaj's joinder cured any technical defect as to non-joinder of personal representatives and removed any remaining practical objection to the application for execution.
  4. Interpretation and application of sec. 148, cl. (h) of the Bengal Tenancy Act:
    • The clause provides that an application for execution of a decree for arrears obtained by a landlord shall not be made by an assignee of the decree unless the landlord's interest in the land has become and is vested in him.
    • The Court reasoned that the Legislature did not intend the word "assignee" to include trustees who hold a legal estate by conveyance from the owner but who have no independent beneficial interest for their own sake; the provision was aimed at outside purchasers for consideration. Thus, on the facts — where the trustees held the legal estate in trust for the heir or for debt-payment — cl. (h) did not bar the application for execution by the trustees, particularly where the heir had joined the application.
  5. Whether the decrees were rent decrees and whether prior sale affected the lien:
    • The Court accepted the view that the rents for which the decrees were obtained accrued while the landlord-tenant relationship subsisted between Dhunput and the judgment-debtor and therefore constituted a charge or lien on the tenures.
    • The sale of the tenures in execution of a money decree (or any subsequent purchaser of the judgment-debtor's rights) could not release the tenures from a lien that had already attached for earlier rents; accordingly, the trustees (and Maharaj Bahadur) could proceed against the tenures to satisfy the rent decrees.

Holding and Implications

APPEAL DISMISSED.

Direct consequences (as expressed in the opinion):

  • The Court affirmed that the trustees (as constituted by the deed of 19 July 1896), and Maharaj Bahadur (who subsequently joined), were entitled to execute the two decrees for putni rents against the Appellant.
  • The Court declared that the putni tenures were liable to be sold in execution of those decrees; the existing lien for rents that had already attached was enforceable despite any intervening sale of the judgment-debtor's rights.
  • The appeal was dismissed with costs (Ameer Ali, J. ordered dismissal with costs; Macpherson, J. ordered dismissal with costs of 5 gold mohurs as recorded in the text).

Broader legal implications: The opinion does not state that it sets a novel precedent beyond the application of the facts and statutes to the trust deed before the Court. Therefore the immediate effect is confined to permitting execution by the trustees and/or the heir in the circumstances described; no wider new precedent is articulated in the opinion.


End of summary — all content based solely on the provided opinion text.

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Ameer Ali, J.:— This appeal arises out of an application for execution of two decrees obtained by one Rai Dhunput Singh Bahadur against the present Appellant in respect of certain putni rents. The application is dated the 3rd of December 1896.

It appears that on the 27th of June 1893, Rai Dhunput Singh who was the owner of Pergunnah Haveli within which the putni mehals are situated, sold his right and interest to one Mussamut Bhagwanbati Chowdhrani. On the 10th of July 1896 he obtained the decrees in question for the rents due from the Appellant for a period prior to the sale; and on the 19th of July 1896 he executed a trust deed in favour of one Gopi Chand Bothra and others by which he conveyed to them various properties, both moveable and immoveable, upon certain trusts. The two decrees against the Appellant were included in the said trust deed.

Dhunput Singh died in September 1896, and on the 3rd of December following, as already stated the trustees applied for execution.

On the 3rd of March 1897 a petition of objection was put in on behalf of the judgment-debtor in which he contended, first, that the trustee's power came to an end on the death of Dhunput Singh, and that therefore they had no authority to apply for execution; secondly, that the decree-holder's adult sons, Gunpat Singh and Nurput Singh, together with his minor son, Maharay Bahadur Singh, were his legal representatives; thirdly, that, inasmuch as the judgment-debtor's right in the properties had already been sold and purchased by one Bibi Jarao Kumari Saheba, the Respondents were not entitled to proceed against the tenure; and fourthly, that under sec. 148, cl. (h) of the Bengal Tenancy Act the application for execution of the decree on behalf of the trustees was not maintainable.

Upon these objections the Subordinate Judge laid down the following points as arising for determination:—

“1st—Is the application for execution of the decree on behalf of the trustees maintainable?

2nd—If maintainable, whether the decree under execution can be treated as first charge on the properties sought to be sold, and whether they should be considered rent decrees?

“3rd—Whether Maharaj Bahadur alone is legal heir and representative of the deceased Babu Rai Dhunput Singh, the original decree-holder?

“4th—Whether subsequent application by Maharaj Bahadur for being added as an applicant remedies the defect which the judgment-debtor seeks to press?”

It is to be noticed that on the 7th of August Maharaj Bahadur, the infant son of Dhunput, joined in the application for execution.

The Subordinate Judge holds that the power of the trustees did not expire with the death of Dhunput and that the trustees were entitled to execute the decrees; he holds further that inasmuch as the rents for which the decrees were obtained accrued while the relationship of landlord and tenant existed between Dhunput and the judgment-debtor, the lien still continues and that the trustees are entitled to enforce the same. He also holds that any technical defect in the application arising from the non-joinder of the personal representatives of Dhunput was cured by the facfr of Maharaj joining in the application. And the learned Judge accordingly overruled the judgment debtor's objections, directed executions of the decrees at the instance of the trustees and Maharaj Bahadur, and declared that the putni tenures were liable to be sold in execution of those decrees.

The judgment-debtor has appealed to this Court. His case has been argued with considerable ingenuity; and the same objections which were taken in the Court below have been pressed before us.

T think, however, that these objections are not tenable.

First, with regard to the authority of the trustees, the contention is that they were merely agents of Dhunput Singh, and that consequently upon the death of Dhunput the agency came to an end and the trustees became practically functus officio, all authority vesting in them by virtue of the trust deed falling to the ground. In my opinion this argument proceeds upon a somewhat fallacious reasoning. The passages cited from Lewin on Trust must be read with the documents on which the cases referred to in the text-book proceeded. Each case must, it seems to me, be dealt with upon its own special facts and we have accordingly to see what the document in the present case directs and provides. In other words we must see whether, as is contended by the Appellant's pleader, it only gives to the trustees an authority to do certain acts constituting them merely as his agents for certain purposes, or whether, as the learned Subordinate Judge finds, it conveys a legal estate to the trustees and virtually amounts to an actual transfer in their favour, subject to certain trusts. For this purpose it is necessary to refer to the terms of the trust deed. It begins by reciting that the executant, Dhunput, was largely involved in debt and that it was necessary for him to make a settlement for the purpose of liquidating the same and accordingly as he himself was “unable to do business any more in a satisfactory way,” and it was the wish of most of his creditors that he should make over all his properties, moveable and immoveable “that is to say, all kinds of properties of which he was then the owner” to certain trustees for the purpose of liquidating his debts, he accordingly made over all his immoveable and moveable properties to the persons therein named. The deed then goes on to provide that the trustees were to hold possession of all his properties as proprietors, to get their names registered in the Collectorate, and pay the debts from the profits of the properties or by mortgage and sale of all or some of them. After the debts were discharged they were to give back the surplus, or whatever remained, to Dhunput or his heir, Maharaj Bahadur. The deed then declares that neither he nor his representatives shall be able to revoke the said trust and that it shall operate in an irrevocable way. And it then goes on to state as follows:—

“This trust deed shall remain in force until my debts are satisfied, that is to say, not only during my lifetime (but) also after my death, and my heirs and representatives shall be bound by the terms of this trust deed. If all or any of the trustees be willing to give up the trust, they must appoint other trustee and he shall act according to the trust. But if any of the trustees should resign without appointing another trustee or if he should the before the appointment of another trustee, then any person whom I during my lifetime or after my death, my widow Rani Mina Kanwari or my youngest son Maharaj Bahadur, if he had (be?) of age, may appoint as trustee, shall be the trustee.” And it winds up by declaring:— “This trust deed shall be treated as a deed of conveyance of property. As to those landed properties, jotes and jummas which are made over to the hands of the trustees under this trust deed they shall be the persons fully entitled to realize the arrears and outstandings, etc., and all kinds of dues relating to them. To this effect I execute this trust deed in a sound state of mind.”

Upon the terms of the deed there can be no doubt that it purports to convey to the trustees, absolutely, the properties covered by it, subject to certain trusts. In my opinion there is no ground whatsoever for saying that it was merely an authority to the so-called trustees to do certain acts, which authority ceased with the death of the principal. The properties were conveyed to the trustees for the purpose of discharging his debts and then returning any residue left either to Dhunput or his heir. It was to be irrevocable on the part of his heirs and representatives, was to take affect as a conveyance, and was to continue in force not only in his lifetime but after his-death until the purpose for which it was executed had been fully dicharged. In my opinion there is no ground for contending that the trustees under such a conveyance had no power to execute the decrees. I hold therefore that the first objection is wholly untenable.

It is also clear from the recitals contained in the document, printed at p. 44 of the Paper-book, which bears date the 30th June 1893, and from the entire evidence on the record, that the two adult sons of Dhunput separated from him in 1887 and ceased to have any interest whatsoever in the properties covered by the deed of trust, and that Maharaj Bahadur, Dhunput's minor son alone is the person entitled to the benefit of the trust. No question of limitation is raised in this case. Maharaj has by a petition joined in the application for execution, and I think the learned Judge in the Court below was right in holding that Maharaj, in conjunction with or separately from the trustees, was entitled to execute the decrees obtained by his father.

It was contended that under cl. (h) of sec. 148 of the Bengal Tenancy Act the trustees were not entitled to execute the decrees. That clause runs as follows:—

“(h) Notwithstanding anything contained in sec. 232 of the Code of Civil Procedure, an application for the execution of a decree for arrears obtained by a landlord shall not be made by an assignee of the decree unless the landlord's interest in the land has become and is vested in him.”

In my opinion there is no force in this contention. From one point of view the trustee is an assignee, inasmuch as the property is conveyed to him as has been done in this case. But to my mind the Legislature never intended to include in the word “assignee” used in cl. (h) persons in whom a legal estate was vested by an act of the owner but who had no independent interest in the property. I think that the provision in question applies only to outside purchaser for consideration.

There remains then only one question to consider, namely, whether in view of the fact that the putni mehal had been sold in execution of a money-decree and purchased by one Bibi Jarao Kanwari, the applicants are entitled to proceed against the tenures for the satisfaction of their rent decrees. As the learned Judge points out certain rents had become due from the Appellant whilst he held the tenure. After Dhunput transferred the property to Mussamut Bhagwanbati Chowdhrani he obtained decrees for these rents. The sale of these tenures in execution of a money decree could not release the tenures from the lien which had already attached to them. Further it seems to me that as the Appellant contends he has lost the property he is not entitled to raise the question that the tenures are not liable to sale in execution of these decrees.

The applicants are clearly entitled to have execution of the decrees; and I would accordingly dismiss the appeal with costs.

Macpherson, J.:— I agree that the appeal must fail. We are asked to hold that the Court could not act upon the application for execution because the trustees had no authority to make them, and the want of authority was not cured by the subsequent joinder of Maharaj Bahadur. Also that the Court was wrong in declaring that the putni mehals could be sold under the provision of the tenancy Act, first, because the applications were in direct contravention of the provisions of cl. (h), sec. 148 of that Act, the original applicants being assignees of the decrees in whom the landlord's interest had not become vested; secondly because the decrees were not decrees for rent within the meaning of the Act as Dhunput was not at the time when he obtained them the landlord of the Appellant, the judgment-debtor.

By the deed of the 19th of July 1896, Dhunpvit made over the decrees in question and all his property to the applicants for execution, in trust avowedly for the payment of the debts, and the surplus was to be returned to him or to his heir Maharaj Bahadur when the debts were satisfied, but not before. The effect of this deed as a trust for the payment of debts was considered in the case of Fink v. Maharaj Bahadur(1). That was a suit brought by the Receiver of an estate to recover the money due on these hundis drawn by Dhunput. The claim on one of the hundis was barred by limitation, unless the creditor could, as he attempted to do, take advantage of the trust deed. It was not proved that the deed had been communicated to the creditors or assented to by them, and the Court held that the creditor was not a beneficiary under the deed and could not take advantage of it. We are now asked to go a step and to hold at the instance of a debtor to the estate that the deed was wholly inoperative or that it at all events became so on the death of Dhunput and this solely for the purpose of determining whether the Court could execute the decrees on the application of the trustees.

There is no doubt as to the execution of the deed which purports to convey the properties and to be very much more than a deed of agency. It has never been questioned by Maharaj Bahadur who, putting the creditors on one side, appears to be the only person who could question it, and there is no proof that it has not been acted on. The proof is indeed the other way. It seems to me unnecessary in this proceeding to consider what the legal effect of the deed may be as regards the properties affected by it. There was, I think, a perfectly good application for execution under sec. 232 of the Civil Procedure Code, and the Court might have acted upon it if it thought fit to do so. The judgment-debtor, it is true, objected and said there had been no valid assignment but the transferor, or rather his representative then joined in the application and by so doing and in the absence of any question of limitation put an end to the necessity of any further discussion as to the validity of the transfer. It is said that as Dhunput left two other sons Maharaj Bahadur is not his only representative. It appears that in 1887 there was a family settlement by which the two elder sons took a portion of the property and agreed not to claim any part of what was left in Dhunput's possession or was afterwards acquired. It is argued that this operated only as an agreement which must be enforced in the regular way. The sons are not before us and do not appear to have claimed any part of the property covered by the trust deed. They assert no interest in these decrees and their rights, if any, are not prejudiced by allowing the execution. So far as appears they have no rights and I see no reason why the decrees should not be executed on the applications before us. Can they then be executed as rent decrees? Sec. 148, cl. (h) of the Tenancy Act enacts that “notwithstanding anything contained in sec. 232 of the Code of Civil Procedure, an application for the execution of a decree for arrears obtained by a landlord shall not be made by an assignee of the decree unless the landlord's interest in the land has become and is vested in him.” The landlord's interest in the land is not vested in the trustees, and it is argued that their applications for execution were inadmissible by an express provision of law and that the subsequent joinder of Maharaj Bahadur could not make them good applications under the Tenancy Act. Dhunput, it may be observed, had parted with his interest in the land before the decrees were obtained, but it cannot on that ground be successfully contended that he could not have executed the decrees under the provisions of the Tenancy Act by the sale of the tenures in respect of which they were obtained. The relationship of landlord and tenant existed during the period for which the rent was claimed, the rent was due to him as landlord, was decreed to him as such and it was a charge on the tenures. The only question, therefore, is whether having regard to the provisions of sec. 148, cl. (h) of the Tenancy Act, the applications should have been rejected. I agree that the word “assignee” as used in that section does not include persons in the position of the applicants who are executing the decrees under an assignment which is not for their benefit but for the benefit of the heir of their assignor. If the deed does not, as the Appellant contends create a trust for creditors, Maharaj Bahadur is now the only beneficiary under it and the applicants are trustees for him. He could certainly have applied for execution without infringing the provision of sec. 148 and to hold that the trustees could not do so would be, I think, to give the section a wider scope than it was intended to have. He moreover has now joined in the application.

It is not alleged that the tenure has been sold for any arrears which have since become due, and the sale of the judgment-debtor's rights and interests, if there has really been any such sale, would not prevent the sale of the tenures in satisfaction of those decrees. For the above reasons I consider that the appeal fails and must be dismissed with costs 5 gold mohurs.

S.C.S
Appeal dismissed.