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  • sec. 32, sub-sec. (7) of the Evidence Act.
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  • sec. 32, sub-sec. (7) of the Evidence Act.
Smart Summary

Structured Summary of the Opinion — Application by Sm. Kiron Sashi Dassee

Factual and Procedural Background

This is an application by Sm. Kiron Sashi Dassee, the auction-purchaser at a Sheriff's sale held on 5th September 1945, seeking an order setting aside that sale and returning her deposit. The sale was effected in execution of a decree obtained by Baidyanath Mullick against Sm. Radharani Dassee in the Calcutta Small Causes Court; the decree had been transferred to the Court before which this application was heard. The property sold was premises No. 19, Sarkar Bye-Lane, Calcutta. The applicant's bid of Rs. 11,500 was the highest and the property was knocked down to her.

The applicant relied on two principal grounds to set aside the sale: (1) that the judgment-debtor (Sm. Radharani Dassee) had no saleable interest in the property at the time of sale — invoking Order 21, rule 91 of the Civil Procedure Code; and (2) that there was a material irregularity in publishing or conducting the sale (specifically omission to disclose a deed of dedication in searches and the sale proclamation), together with substantial injury to the applicant — invoking Order 21, rule 90.

Procedurally, the court records show that the contention that the property belonged to two family deities (Sri Sri Sridhar Jew and Sri Sri Iswar Gopal Jew) had been raised on earlier occasions (at the time of application for attachment and for order for sale) but was not upheld. After the sale one Ashalata Dassi, as next friend of the Idols, instituted Suit No. 1471 of 1945 in the same Court for declaration of title; that suit was pending at the time of this application.

Legal Issues Presented

  1. Whether the Sheriff's sale of 5th September 1945 should be set aside under Order 21, rule 91 on the ground that the judgment-debtor had no saleable interest in the property at the time of sale.
  2. Whether the sale should be set aside under Order 21, rule 90 on the ground of material irregularity or fraud in publishing or conducting the sale (specifically the omission of a deed of dedication from searches and the sale proclamation) and whether the applicant has sustained substantial injury by reason of such irregularity.
  3. Whether an auction-purchaser, who had no interest in the property prior to the sale, is entitled to apply under Order 21, rule 90 as a "person whose interests are affected by the sale."
  4. Whether the evidence before the Court establishes that the applicant only discovered the deed of dedication after making the bid (a factual element relevant to establishing substantial injury under Or. 21, r. 90).

Arguments of the Parties

Applicant's (Auction-purchaser) Arguments

  • The judgment-debtor had no saleable interest because, in 1908, Binode Behari Kundu executed and registered a deed of arpannama dedicating the property to two family deities; hence the property vested in the deities and the family members (including the judgment-debtor) had no saleable interest.
  • The deed of dedication was an encumbrance or other material fact which ought to have been disclosed in searches and the sale proclamation; its omission was a material irregularity under Order 21, rule 90 and the applicant suffered substantial injury as a result, warranting setting aside the sale and return of the deposit.

Respondent / Decree-holder / Judgment-debtor (as described in the opinion)

  • The decree-holder and the Court's review of records contended that the property had been treated as secular property by Binode Behari Kundu and his successors, including Sm. Radharani Dassee; the Assessment Registers showed the property always stood in Binode's name and there was no mutation in favour of the Thakurs (deities).
  • There was a 1919 deed-poll by Binode Behari Kundu purporting to revoke the earlier gift (arpannama), and that revocation was inconsistent with an effective, perfected transfer to the deities.
  • Post-1928 (on Binode's death), Radharani's conduct — applying for Letters of Administration, obtaining permission to raise a loan on mortgage, entering into an agreement for sale (declaring it free from encumbrances), and mortgaging the property again in 1930–31 — were all consistent with her having a personal/secular interest in the property rather than there being an effective dedication to the deities.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Watson & Co. v. Ramchund Dutt Establishes that mere execution and registration of a deed of dedication (arpannama) is not, by itself, sufficient to transfer immovable property; there must be additional facts evidencing divestment of ownership and intent to transfer. The Court relied on this principle to reject the applicant's contention that registration alone made the dedication effective; the Court required evidence beyond registration and found none.
Ram Dhan v. Prayag Narain Same general principle: registration alone is insufficient to effect a transfer to family deities; an effective transfer requires proof of divesting acts or intention. The Court cited the case in support of the proposition that the arpannama's registration was not conclusive and looked for corroborative factual acts of divestment (which were absent).
Dagai Dabee v. Mothura Nath Chattopadya What is required to perfect a dedication is the transfer of the apparent evidences of ownership (e.g., acts showing the transfer was acted upon). The Court invoked this authority to explain that the petitioner needed to show transfer of apparent evidences (rent receipts, mutation, use of rent for worship), none of which were shown.
Ravinandan Prasad v. Jagarnath Sahu One of the leading cases supporting the proposition that an auction-purchaser may apply under Order 21, rule 90 as a "person whose interests are affected by the sale." The Court acknowledged this case as a leading authority for the auction-purchaser's right to apply, but ultimately did not follow that line; it noted the existence of contrary authority and adopted a narrower view.
Bhavirisetti Gopalakrishnayya v. Pakanati Pedda Sanjeeva Reddi Also cited in support of the proposition that an auction-purchaser may apply under Or. 21, r. 90. The Court recognized this authority as part of the line of cases holding that an affected person may include an auction-purchaser, but did not accept that construction for the reasons discussed and adopted a different precedent.
Mahadeo Ram v. Raja Mohan Vikram Sah (dissent of Kulwant Sahay, J.) Referenced as illustrating the divergence of opinion among courts on whether an auction-purchaser may apply under Or. 21, r. 90. The Court cited the dissent to show the extent of judicial divergence but did not follow the dissenting view; it used the reference to justify discussing competing authorities.
Surendra Nath Das v. Allauddin Mistry Held that the phrase “a person whose interests are affected by the sale” in Or. 21, r. 90 should be confined to persons who had an interest in the property prior to the sale (i.e., pre-existing property interests), and does not extend to interests created by the sale. The Court expressly adopted Mitter, J.'s conclusion from this case and applied that narrower construction to hold that an auction-purchaser who had no interest in the property prior to the sale is not entitled to apply under Or. 21, r. 90.
Dhirendra Nath Roy v. Kamini Kumar Pal Holds that the phrase “a person whose interests are affected by the sale” is not limited to possessory or proprietary interests and may include pecuniary interests; in that case the applicant had an interest in the property by a prior attachment. The Court noted this decision but observed that it does not represent a decision of this Court supporting a broader construction; the Court therefore did not adopt this broader interpretation for the present matter.

Court's Reasoning and Analysis

The Court's analysis proceeded in two main parts corresponding to the two principal grounds raised by the applicant.

1. Whether the judgment-debtor had a saleable interest (Or. 21, r. 91)

  • The Court began by examining the effect of the 1908 deed of arpannama (dedication) executed and registered by Binode Behari Kundu. The Court applied established authorities holding that mere execution and registration of a deed of dedication do not, by themselves, operate to transfer immovable property; there must be additional facts showing the transfer was acted upon and that the transferor divested himself of ownership.
  • The Court looked for objective indicia of divestment (transfer of the apparent evidences of ownership) — examples being mutation of municipal assessment records, rent receipts issued in the name of the deities or shebait, or evidence that rent was applied to worship expenses. The record, the Court found, contained none of these corroborating facts.
  • Instead, the municipal Assessment Registers showed the property continuously in Binode's name from 1894 with no mutation in favour of the deities. The Court also noted recitals and facts indicating Binode (and later his wife Radharani) treated the property as secular property and exercised acts of ownership.
  • The Court gave weight to a 1919 deed-poll by Binode purporting to revoke the earlier dedication; the Court considered the revocation and its recital (that the arpannama had not been acted upon except for signing and registration) and held these recitals admissible under section 32(7) of the Evidence Act as statements in writing of deceased's acts and declarations.
  • Post-death actions by Sm. Radharani Dassee — applying for Letters of Administration including the property in the estate, obtaining permission to mortgage the property as a widow's interest, entering into an agreement for sale declaring the property free from encumbrances, and subsequent mortgages — were treated by the Court as inconsistent with the contention that she had no interest in the property and with the existence of an effective dedication to the deities.
  • Weighing these factors, the Court concluded that the applicant had not proved that the judgment-debtor lacked a saleable interest in the property at the time of the sale.

2. Whether there was a material irregularity and whether the auction-purchaser can apply (Or. 21, r. 90)

  • The Court accepted that omission of the 1908 deed of dedication from the affidavit of searches (which were stated to extend only to 1865) and from the sale proclamation constituted a material irregularity within the meaning of Order 21, rule 90.
  • However, the Court addressed two subsidiary questions: (a) whether the auction-purchaser was entitled to apply under Or. 21, r. 90 at all; and (b) if so, whether the applicant had proved substantial injury resulting from the irregularity.
  • On entitlement, the Court reviewed conflicting authorities. Some decisions (including Ravinandan Prasad and Bhavirisetti) supported a broad construction of “a person whose interests are affected by the sale” to include purchasers whose pecuniary interests are affected even if they had no prior interest in the property. Other decisions of this Court, notably Surendra Nath Das (Mitter, J.), confined “interest” to a pre-existing property interest. The Court expressly adopted Mitter, J.'s narrower construction: the phrase in Or. 21, r. 90 refers to persons who had an interest in the property prior to the sale and does not include an auction-purchaser whose interest was created by the sale itself.
  • Even if the applicant were considered entitled to apply, the Court found the evidentiary material insufficient to show substantial injury. The applicant's representative stated he was "deluded into bidding" because of the omission, and that searches had revealed the deed; but there was no affidavit evidence as to when those searches were made or whether the searches (and discovery of the deed) occurred only after the bid. The applicant bore the onus of proving that the discovery was post-bid and that substantial injury resulted; the Court found no adequate proof of these elements.
  • Because the Court concluded the auction-purchaser was not entitled to relief under Or. 21, r. 90 (both as a matter of locus and for failure to prove substantial injury), the second head of attack failed as well.

Holding and Implications

FINAL HOLDING: The application by Sm. Kiron Sashi Dassee is refused and the Sheriff's sale of 5th September 1945 is confirmed.

Direct consequences for the parties:

  • The applicant's prayer to set aside the sale and recover her deposit was denied.
  • The sale is confirmed and remains in force.
  • The auction-purchaser (the applicant) must pay the costs of this application.

Broader implications:

The Court adopted and applied the narrower construction of Order 21, rule 90 found in Surendra Nath Das v. Allauddin Mistry (that only persons with a pre-existing property interest may apply under that rule). The opinion therefore aligns with a line of authority confining the class of persons entitled to seek the relief under Or. 21, r. 90; the decision applies established authorities on dedication of property and evidentiary requirements (including admission of recitals under section 32(7) of the Evidence Act) but does not purport to establish any new legal principle beyond the application of those precedents to the facts of this case.

Order: Application refused; sale confirmed; applicant to pay costs.


Solicitors of record (as given in the opinion): Messrs. P.C. Ghose & Co. for the Applicant; P.C. Rudra and D. Shome for the Respondent.

    Baidyanath Mullick v. Sm. Radharani Dassee.

    1. This is an application by Sm. Kiron Sashi Dassee, the auction-purchaser at a Sheriff's sale held on the 5th September, 1945, for an order that the sale be set aside and that the money deposited by her be returned.

    2. This sale was held in execution of a decree obtained by Baidyanath Mullick against Sm. Radharani Dassee in the Calcutta Small Causes Court, the decree having been transferred to this Court for execution. In execution of that decree, premises No. 19, Sarkar Bye-Lane, Calcutta, was attached, and on the 5th September, 1945, the right, title and interest of the judgment-debtor in those premises was put up to sale; the bid of the applicant, which was Rs. 11,500, was the highest bid, and the property was knocked down to her. The grounds upon which I am asked to set aside this sale are two: First, that the judgment-debtor had no saleable interest in the property sold and that in the circumstances I ought to set aside the sale under Or. 21, r. 91: Second, that there was a material irregularity or fraud in publishing or conducting the sale together with substantial injury to the applicant by reason of the irregularity or fraud, and that I ought to set aside the sale under Or. 21, r. 90.

    3. On two previous occasions, namely, at the time of the application for execution by attachment of these premises and also at the time of the application for an order for sale of the premises attached, the point has been raised in this Court by the judgment-debtor that she has no right, title or interest in the property, and that it is debutter and belongs to two family deities, Sri Sri Sridhar Jew and Sri Sri Iswar Gopal Jew. That contention was not given effect to; but the auction-purchaser was of course not represented at the time that the orders of Court were made and is not at all affected by those orders. Since the sale one Ashalata Dassi, daughter of the judgment-debtor, has as next friend of the Idols instituted Suit No. 1471 of 1945 in this Court for declaration of their title in the premises, which suit is still pending.

    4. The facts which are now asserted on behalf of the auction-purchaser in support of her contention that the judgment-debtor had no saleable interest in the property at the time of the sale are shortly these:— that on the 30th Kartick, 1315 B.S (corresponding with 15th November, 1908) one Binode Behari Kundu who was the then owner of the premises, by a deed of arpannama, made a dedication of the property to the two deities which I have already mentioned. That deed of dedication was duly registered, and it is said that in the circumstances the property vested absolutely in the deities, and from that time onwards Binode Behari Kundu and his successors had no interest in the property. From the date of registration of the deed Binode Behari Kundu was only a shebait. It is, I think, well settled that the mere execution and registration of a deed of dedication is not by itself effective to transfer immovable properties to family deities there must be something more than that; the person in whom the property was vested, the transferor, must divest himself of the property, and to that end there must be some facts which will show that this has been done, for, otherwise there is no sufficient evidence of intention that the deed be acted on. Mere registration of the deed is not enough. [See Watson & Co. v. Ramchund Dutt(1) and Ram Dhan v. Prayag Narain(2)]. It has been held in Dagai Dabee v. Mothura Nath Chattopadya(3) that what is required is a transfer of the apparent evidences of ownership. Now in this case the property concerned was a house, part of which, at any rate, was let out at rent; but there has been no evidence of any single fact other than the execution and registration of the deed that the property was intended to be transferred or was in fact transferred. No evidence has been led, for example, to show that from and after the registration of the deed of dedication rent receipts were given by the founder as shebait or that the rent received from the property was employed in the expenses of worship. It seems to me that such facts as have been shown in this application all go the other way. The Assessment Registers of the Calcutta Corporation show that from the date when Binode Behari Kundu became owner of the property which was in March, 1894, the property has always stood in his name and there was never at any time mutation of names in favour of the Thakurs. In paragraph 4 of the affidavit in opposition in this case the decree-holder asserted that the property was not aebutter and had all along been treated by Binode Behari Kudu and after his death by his wife Sm. Radharani Dassi as secular property, and in para. 2(m) he quoted from an affidavit made by the judgment-debtor in 1930 in which while asserting her title she quoted from a deed of 1919 a recital that Benode Behari Kundu had in fact been treating the property as his own secular property by receiving rent in his own name. In the affidavit in reply no attempt has been made to answer the contention that the property was in fact treated by Binode Behari Kundu as his own secular property.” Further it appears that on the 27th Joista, 1326 B.S (equivalent to the 10th June, 1919) Binode Behari Kundu executed a deed-poll by which he purported to revoke the gift which according to its face had been made by him by the previous deed of 1908: that action, in my opinion, is inconsistent with there having been in fact a perfected transfer to the deities. To hold otherwise I would have to come to a conclusion that Binode Behari Kundu was violating the trust which he himself created; and in the absence of any evidence that the trust ever did become effective I am not prepared to find that he was guilty of a breach of trust simply because he revoked the previous deed. Further, the actions of Sm. Radharani Dassi who was the second wife of Binode Behari Kundu and the administratrix of his estate, are all consistent with the position that there was no effective trust created and inconsistent with the contrary position. The facts to which I refer in this connection are the following:—

    In 1928, Binode Behari Kundu died. Radharani who was his second wife applied for Letters of Administration to his estate which she stated included 19, Sarkar Bye-Lane. In 1929, she obtained permission to raise a loan on mortgage of No. 19, Sarkar Bye-Lane upon the allegation that she had a widow's interest and was the only person interested. In 1930, she as administratrix entered into an agreement for sale of this particular property and declared that it was free from encumbrances. In 1930, and again in 1931, she mortgaged the property. All these activities are quite incompatible with the situation that she had no interest in the property at all. For these reasons, quite apart from any recitals in the deed of revocation which I have mentioned, it seems to me that the Petitioner has not, succeeded in establishing that the property belongs to the two deities and that Radharani Dassee has no interest in the property which was sold at the Sheriff's sale.

    5. In addition to the matters which I have mentioned there is the fact that in the deed of revocation Benode Behari Kundu recites as a fact that the arpannama was not acted upon save and except that it was signed and registered by him. He says then that he could not give effect to the conditions and provisions contained in the arpannama and at present he had no intention to act accordingly; and it was in those circumstances and others which he mentioned in the deed that he executed the deed of revocation. In my view Binode Behari Kundu being dead the facts stated in the recitals are admissible under sec. 32, sub-sec. (7) of the Evidence Act. I hold that in the facts of this case the applicant has not made out that the judgment-debtor had no saleable interest in the property sold.

    6. The second point made by the judgment-debtor depends upon the circumstance that in the affidavit of searches, although the searches were conducted back to the year 1865, the deed of arpannama was not referred to, and it should have been referred to. The deed was, it is said, an encumbrance on the property, or was at any rate, within the meaning of Or. 21, r. 66(2e) of the Civil Procedure Code, a thing which was material for the purchaser to know in order to judge the nature and the value of the property. In the sale proclamation there was no reference to this deed of dedication. It seems to me that the omission to refer to the deed of dedication was a material irregularity within the meaning of Or. 21, r. 90. Two questions remain: (1) whether the auction-purchaser is entitled at all to apply under Or. 21, r. 90: and (2) whether assuming that he is entitled to apply it has been proved that the applicant has sustained substantial injury by reason of the irregularity. On the question whether he is entitled to apply at all I have come to the conclusion that he is not. The right of the auction-purchaser to apply has been the subject of considerable difference of opinion in the Courts in this country. The extent of the divergence is well set out in the dissenting judgment of Kulwant Sahay, J., in Mahadeo Ram v. Raja Mohan Vikram Sah*(4). I need not go into the details of it. The leading cases in support of the proposition that an auction-purchaser may apply are Ravinandan Prasad v. Jagarnath Sahu(5) which I have referred to, and Bhavirisetti Gopalakrishnayya v. Pakanati Pedda Sanjeeva Reddi(6). The contention in support of the proposition that an auction-purchaser can apply is founded upon the conclusion that the words in Or. 21, r. 90 “a person whose interests are affected by the sale” are so wide as to include any person whose interests are affected whether they are interests in the property or pecuniary interest apart from the property; such interest, it is said, need not have been in existence prior to the sale itself. In this Court, however, in Surendra Nath Das v. Allauddin Mistry(7), Mitter, J., sitting as a single Judge on the Appellate Side of this Court, came to the conclusion that the reference in Or. 21, r. 90 “to a person whose interests are affected by the sale” cannot be given so wide a construction. In his view they must be held to refer only to a person who has interest in the property and whose interest in the property existed prior to the sale itself and were not interests which were created by the sale. The reasons for his conclusion are based on historical grounds as well as on the words of the Rule. With great respect, I adopt the conclusion arrived at by Mitter, J., and the reasons he has advanced in support of it.

    7. It seems to me that the crucial question is whether the word “interest” means interest in the property or interest which may be altogether apart from the property sold. It has been held by Suhrawardy and Page, JJ., in Dhirendra Nath Roy v. Kamini Kumar Pal*(8) that the phrase “a person whose interests are affected by the sale” is not limited to persons who have possessory or proprietory interests in the property, and that a pecuniary interest is also within the contemplation of the section; in that, case the interest concerned was an interest in the property, the applicant being a person who had effected a prior attachment on the property. I have not been referred to any case of this Court which supports the suggestion that the word “interests” can refer to interests other; than interests in the property. If “interest” does mean interest in the property, then the important word is the word “affect.” Upon plain English, it seems to me difficult to find that a person's interest in property can be affected by a sale if, prior to that sale, he had no interest in it at all. It seems to me that Mitter, J., is right when he holds that an auction purchaser who had no interest in the property prior to sale, is not within the words of Or. 21, r. 90.

    8. There is a further question in this case, namely, whether the material on the record is sufficient to satisfy me that the applicant has sustained substantial injury by reason of irregularity. Now the representative of the purchaser who has verified, in the first place, the petition in this case and the affidavit in reply, has stated that he was deluded into bidding by the fact that there was no reference to the deed of dedication in the sale proclamation.

    9. He has said that it is as a result of searches of various records that he has come to know of the true facts and in particular of the deed of dedication. He has not, however, said, which I think he should have said if it was the fact, that those searches were not made until after he had made his bid. There is no evidence before me at all as to when those searches were made and when in consequence, he first came to know of the fact that a deed of dedication had been executed. In this state of the affidavits, I do not think there is enough material to satisfy me, as the Petitioner is bound to do, that it was not till after the sale that he discovered the fact that a deed of dedication had been executed and registered. For this reason also I am of opinion that the case is not within Or. 21, r. 90.

    10. This application must in my judgment be refused; in view of the fact that the application under Or. 21, rr. 90 and 91 has been refused, I must make the order which I do, confirming the sale.

    11. The auction-purchaser must pay the costs of this application.

    Solicitors: Messrs. P.C Ghose & Co. for the Applicant; P.C Rudra and D. Shome for the Respondent.

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    Comments

    Baidyanath Mullick v. Sm. Radharani Dassee.
    (Jan 24, 1946)