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Acts
  • Madras Agriculturists Relief Act, 1938,
  • Provinces Agriculturists Relief Act
  • provisions of Madras Act IV
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Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
Judges
Acts
  • Madras Agriculturists Relief Act, 1938,
  • Provinces Agriculturists Relief Act
  • provisions of Madras Act IV
Smart Summary

Factual and Procedural Background

The respondent sued the petitioner on a promissory note dated 29 October 1929 for recovery of principal and interest. The suit was filed on 3 January 1938, while the Madras Agriculturists Relief Act, 1938 was in force, but the petitioner did not claim scaling down in his written statement. A decree for the full amount was passed on 18 April 1938. The petitioner subsequently applied to scale down the debt, but the application was dismissed, leading to this Revision Petition. [1]

Legal Issues Presented

  1. Whether a debt incurred before 1 October 1932, for which a decree was passed after commencement of the Madras Agriculturists Relief Act, 1938, could nevertheless be scaled down under Section 8 of the Act. [1]
  2. Whether the references to decrees in Sections 7, 8 and 9 extended to decrees passed after the Act came into force. [2][3]

Arguments of the Parties

Petitioner's Arguments

  • The non obstante clause in Section 7 and the words “whether the debt or other obligation has ripened into a decree or not” in Section 8 indicated that all debts incurred before commencement of the Act should be scaled down, regardless of whether the relevant decree was passed before or after commencement of the Act. [2]
  • The petitioner relied on the decision in Kanakaraju v. Atchutharamaraju in support of this contention. [4]

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Mantena Kanakaraju v. Datla Atchutharamanaraju Earlier decision by Wadsworth, J. Wadsworth, J. stated that, after fuller argument and discussion, he considered his earlier decision erroneous. [5]
Kanakaraju v. Atchutharamaraju Relied upon by the petitioner in support of scaling down after decree. The Court distinguished its persuasive value because the judgment was brief and the issue had not apparently been fully argued or considered; Wadsworth, J. no longer adhered to that view. [4]
A.R.R.M. Somasundaram Chettiar v. P.P.A.R.R.M. Peria Karuppan Chettiar Scaling down was allowed where the application was made before the decree was drafted and issued. The Court held that the decision did not assist the petitioner because the broader issue in the present case had not been decided there. [4]
Abdul Noor v. Brijmohan Saran Interpretation of differently worded provisions of the United Provinces Agriculturists Relief Act. The Court held that the decision had no bearing on the interpretation of the Madras Act IV of 1938. [4]

Court's Reasoning and Analysis

The Court examined Sections 7 and 8 in the context of the Act as a whole. Although their wording could initially support the petitioner's interpretation, the statutory scheme indicated that references to decrees concerned debts that had become decrees before the Act commenced. [2]

Sections 19 and 20 expressly provided for amendment of pre-commencement decrees and for staying execution pending such amendment. Section 18 similarly addressed amendment of decrees passed before the Act in suits instituted after 1 October 1937. The absence of comparable provisions for post-commencement decrees indicated that scaling down had to be claimed before judgment where the decree was to be passed after the Act came into force. [2]

The Court relied on the general principle that available pleas should be raised and adjudicated before a decree is passed. It considered that allowing a party to seek scaling down after failing to claim it during the suit would improperly condone procedural laches. Because the provisions were expropriatory in character, the Court held that their scope should not be extended beyond what their terms expressly warranted. [3]

Accordingly, the word “decree” in Sections 7, 8 and 9 was construed as referring to decrees passed before commencement of the Act. The authorities relied upon by the petitioner did not require a different conclusion. [3][4]

Holding and Implications

REVISION PETITION DISMISSED. The petitioner was not entitled to scale down the debt because the decree had been passed after commencement of the Act and the scaling-down claim had not been made before the decree. The petition was dismissed with costs. [6][7]

The decision limits the statutory scaling-down mechanism, in this context, to decrees passed before the Act commenced, while requiring the benefit to be claimed before a post-commencement decree is passed. Wadsworth, J. also expressly disapproved his earlier contrary decision. [5][3]

    Motam Kotayya Alias Prakasam v. Singampalli Venkata Punnayya

    Wadsworth, J: I agree with the conclusion and reasoning of the judgment which my learned brother is about to deliver. I only wish to add that after hearing a fuller argument and having the benefit of discussion with my learned brother, I am of opinion that my decision in Mantena Kanakaraju v. Datla Atchutharamanaraju (1) is erroneous.

    Patanjali Sastri, J.:—The question that falls to be decided in this Revision Petition is whether a debt for the repayment of which a decree has been passed after the commencement of the Madras Agriculturists Relief Act, 1938, is liable to be scaled down in accordance with S. 8 of the Act when the debt is one incurred before the 1st of October 1932. The facts are simple and not in dispute. The respondent sued the petitioner in S.C.S No. 4 of 1938 on the file of the Court below for recovery of the principal and interest due on a promissory note executed on 29th October, 1929. The suit was brought on 3rd January, 1938 and the petitioner filed his written statement on 30th January, 1938. Though the Act came into force when the suit was pending, the petitioner failed to put forward a claim to have the debt scaled down in accordance with the Act, and the decree was passed on 18th April, 1938, for the full amount claimed by the respondent. Soon after the passing of the decree, however, the petitioner applied to the Court on 29th April, 1938 to scale down the debt and the application was dismissed on the ground that there is no provision in the Act for scaling down a debt in respect of which a decree has been passed after the Act came into force. The petitioner has preferred this Revision Petition and contests the correctness of that view.

    It is argued that the non obstante clause in S. 7 and the words “whether the debt or other obligation has ripened into a decree or not” in S. 8 indicate that all debts incurred before the commencement of the Act should be scaled down irrespective of any decrees passed in respect of them, whether such decrees were passed before or after the commencement of the Act. These provisions are not free from ambiguity and may, at first blush, appear to lend some countenance to the contention of the petitioner. But on a closer examination of these sections in the light of other provisions of the Act and the scheme revealed thereby, it is fairly clear that the reference to decrees is intended only to extend the benefit of scaling down to debts which had ripened into decrees before the Act came into force. The provisions appear to envisage the state of things on the 1st October, 1937 and the reference to contracts obviously relates to contracts made prior to that date. It is therefore reasonable to assume that the word ‘decree’ which occurs in the same context is also used subject to the same qualification. It is significant that the machinery provided in Ss. 19 and 20 for “amendment” of decrees by scaling them down in accordance with the Act, and for stay of execution pending proceedings for such amendment, are made applicable only to decrees passed before the commencement of the Act and there are no similar provisions in respect of decrees passed after the Act came into force. Similarly, S. 18 provides for “amendment” of decrees passed before the Act in suits instituted after 1st October, 1937 by a proportionate reduction of costs also. These provisions which, in the case of decrees passed before the Act, expressly supersede the finality which attaches to decrees under the general law seem to indicate that, in the contemplation of the Legislature, the relief which the Act provides for agriculturists should be claimed and obtained before decree, where such decree, happens to be passed after the commencement of the Act, and that the principle of finality should operate unimpaired in such cases. Indeed, if the Legislature intended to exclude the operation of this principle in the case of all decrees against agriculturists whether passed before or after the commencement of the Act, the provisions of S. 19 and the latter part of S. 18 Sub-S. (1) relating to “amendment” of decrees passed before the commencement of the Act would be meaningless and otiose.

    Nor is there any apparent reason to suppose that the Legislalature intended to introduce into the Act such a startling departure from the basic principle of all judicial proceedings, namely, that all available pleas in answer to a claim should be made the subject of enquiry before the Court passes the decree. It is one thing to provide relief to agriculturists by way of scaling down their debts even when such debts had already ripened into decrees before such relief was thought of, but it is a different thing to declare that even if they failed to claim when they could have claimed, such relief before a decree was passed, they should nevertheless be entitled to claim it at any time afterwards. It may be laudable to rehabilitate agriculturists by a compulsory scaling down of their debts but it could be no part of this object to condone, and thereby encourage, their laches in the conduct of legal proceedings. On the other hand, having regard to the expropriatory nature of the provisions, Courts should watch with a jealous eye attempts to have the scope of the Act extended, under colour of interpretation, beyond what its terms expressly warrant. I am therefore of opinion, reading the Act as a whole, that the word ‘decree’ in Ss. 7, 8 and 9 must be taken to refer to decrees passed before the commencement of the Act.

    The petitioner's learned Counsel placed reliance upon the decision of my learned brother Wadsworth, J. in Kanakaraju v. Atchutharamaraju as supporting his contention. The judgment is very brief and the question does not appear to have been fully argued and considered and my learned brother is now inclined, in the light of the fuller argument before us, to agree with the view expressed above. In A.R.R.M. Somasundaram Chettiar v. P.P.A.R.R.M. Peria Karuppan Chettiar (2) the suit was dismissed by the trial Court as barred by limitation but was decreed by this Court on appeal. An application for scaling down the debt was made to this Court before the decree was drafted and issued, along with another application to stop the drafting of the decree pending the disposal of the former application. This Court held that in those circumstances the judgment-debtor was entitled to have the debt scaled down. The broader question arising for decision in the present case was raised but the learned Judges observed that it was not necessary to deal with it on the facts before them. This decision therefore does not assist the petitioner. A decision of the Allahabad High Court in Abdul Noor v. Brijmohan Saran (3) was also brought to our notice but it relates to the construction of differently worded provisions in the United Provinces Agriculturists Relief Act and has no bearing on the interpretation of the provisions of Madras Act IV of 1938.

    This Revision Petition fails and is dismissed with costs.

    Petition dismissed.

    N.R.R

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    Comments

    Motam Kotayya Alias Prakasam v. Singampalli Venkata Punnayya
    (Apr 20, 1940)