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Lachmi Narain And Others v. Makund Singh And Others

Allahabad High Court
May 10, 1904
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Summary of Opinion (Burkitt, J.)

Factual and Procedural Background

In 1868 the Government of the North Western Provinces conferred proprietary rights in certain villages by a sanad dated 30 June 1868 on one Ganga Baksh (father of the plaintiff-respondent), described as a grant made in consideration of good service rendered to Government. The sanad expressly made the grant subject to payment of land revenue. On 29 December 1870 Ganga Baksh, jointly with his uncle, executed a mortgage of that and other property to the appellants to secure prior debts and an advance. A decree for sale was obtained in respect of that mortgage and some of the property covered by the 1868 grant had already been sold. The portion in dispute was advertised for sale on 25 October 1901.

Thereupon the present suit was instituted by the minor son of Ganga Baksh (through his next friend) seeking a declaration that the property advertised for sale was land granted as a pension for good service and therefore, under military law, the conditions of the grant, Hindu law and the Letters Patent, was not saleable in execution of the decree held by the defendants.

The Subordinate Judge accepted the plaintiff's contention and decreed accordingly. The appellants (mortgagees and decree-holders) appealed. This opinion addresses that appeal and whether the 1868 grant qualifies as a "pension" or a "political pension" exempt from attachment and sale under the statutes cited.

Legal Issues Presented

  1. Whether the grant made by the sanad of 30 June 1868 to Ganga Baksh can be considered a "pension" within the meaning of section II of the Pensions Act (No. XXIII of 1871), thereby exempting related sums or rights from seizure, attachment or requisition.
  2. Whether the grant can be considered a "political pension" within the meaning of section 266 (clause (g)) of the Code of Civil Procedure (as asserted by the Subordinate Judge), and thus be exempt from attachment and sale in execution of a decree.

Arguments of the Parties

Plaintiff-Respondent (minor son of Ganga Baksh) — as alleged in the plaint

  • The property sought to be sold is land granted as a pension for good services and, according to military law, the conditions of the grant and Hindu law, is not saleable in execution of the decree held by the defendants.
  • The grant's object was that the property should remain in Moti Singh's family generation after generation and heirs should enjoy it as a political pension; no heir had power to encumber or sell it nor could a creditor render it liable for demand or sale.
  • Such land, granted as pension, cannot in any way be sold in execution of a decree for satisfaction of any demand.
  • To pass a decree for sale in these circumstances is beyond the jurisdiction of the Court, irregular, null and void, and contrary to the Letters Patent.

Defendants-Appellants (mortgagees, decree-holders)

  • Contended that the property could be taken in execution of the hypothecation decree for sale.
  • Asserted that the plaintiff (the minor) had not been born at the date of the mortgage and of the decree (implying lack of a protectible interest at those times).
  • Argued that the 1868 sanad grant of proprietary rights subject to payment of revenue cannot be treated as a "political pension" under section 266, clause (g) of the Code of Civil Procedure, nor as a "pension" under section II of the Pensions Act.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Secretary of State v. Khem Chand Tara Chand Whether a "tora-garas" allowance was exempted from attachment under section II of the Pensions Act; Full Bench distinction between pensions and other grants; definition of "pension" as a periodical allowance or stipend granted on account of past services or merits. The Court relied on the Full Bench's observations and adopted the definition that "pension" in section II is used in its ordinary sense as a periodical allowance; this supported the conclusion that the 1868 grant (a one-time grant of land subject to revenue) was not a pension under the Act.
Rai Krishna Bhao v. Gobind Rai Approval of the definition of "pension" (as a periodical allowance) cited in the Secretary of State case. The Court noted that the definition quoted from the Secretary of State case was cited with approval by this Court in Rai Krishna Bhao v. Gobind Rai, reinforcing the interpretation that "pension" implies periodical payments.
Bishambar Nath v. Nawab Imdad Ali Khan Provided an illustration of what constitutes a "political pension." The Court observed that a "very good illustration of what is a political pension" is found in this case and used that observation to distinguish the present grant from a political pension exempt from attachment.

Court's Reasoning and Analysis

The Court analyzed whether the sanad grant of 30 June 1868 could reasonably be treated as a "pension" (for the purposes of the Pensions Act, No. XXIII of 1871) or a "political pension" under section 266 (clause (g)) of the Code of Civil Procedure, thereby exempting the property from attachment and sale in execution of the mortgage decree.

The Subordinate Judge had held the grant to be a political pension within the meaning of section 266 (citing the word "anything" in section 3 of the Pensions Act as significant) and therefore exempt under section 266 of the Code of Civil Procedure. The appellate Court examined that conclusion and the factual character of the 1868 grant.

The appellate Court reasoned as follows (faithfully reflecting the opinion's analysis):

  1. The grant made in June 1868 was a gift of proprietary rights in certain villages to Ganga Baksh; it was not a grant of land revenue and the sanad expressly required Ganga Baksh to pay the land revenue assessed on the villages. The grant was a one-time conveyance of property by Government as a reward for services, not a periodic payment from Government.
  2. The Court found it difficult to see how such a grant of land, subject to payment of revenue, could be treated as a "pension" in the sense used in the Pensions Act or as a "political pension" under section 266 of the Code of Civil Procedure. It compared the grant to other forms of one-time gifts (for example a "khillat" or dress of honour or jewellery) granted for services, which would not be treated as pensions for the purpose of compelling restoration or shielding from attachment.
  3. The defense argument that the yearly receipt of rents by the grantee from tenants equated to a pension was rejected: the Court concluded that receipt of rents from tenants is not a pension, nor would the rents be payable by Government as periodic allowances. The grant's object, the Court held, was a once-for-all reward, not an inalienable periodic pension.
  4. The Court examined statutory language and context: it interpreted "pension" in section II of the Pensions Act and in the cited provision of the Code of Civil Procedure as implying periodical payments of money by Government in the manner prescribed by section 8 of the Pensions Act. The Court also relied on section 12 of the Pensions Act (as discussed in the opinion) to show that the Act treats "pension," "pay" or "allowance" as referencing periodical money payments (the opinion quotes the Act's language about persons "entitled to any pension, pay or allowance mentioned in section II" and the words "in respect of any money").
  5. To support its interpretation the Court relied on precedent: Secretary of State v. Khem Chand Tara Chand (Full Bench) which distinguished pensions from other grants and defined "pension" as a periodical allowance or stipend; that definition had been cited with approval in Rai Krishna Bhao v. Gobind Rai. The Court also referred to Bishambar Nath v. Nawab Imdad Ali Khan as an illustration of a political pension.
  6. On the basis of these considerations—the character of the 1868 grant as a one-time conveyance of proprietary rights subject to revenue, the absence of Government-paid periodic money payments, the statutory language and scheme, and the cited authorities—the Court concluded that the Subordinate Judge erred in treating the property as protected from attachment and sale under either section 266, clause (g) of the Code of Civil Procedure or section II of the Pensions Act.

Holding and Implications

Holding: The Court ALLOWED THE APPEAL, set aside the decree of the Subordinate Judge and directed that the plaintiffs-respondents' suit be dismissed with costs in all Courts. The opinion concludes with the concise disposition: "Appeal decreed."

Implications:

  • The direct effect on the parties is that the decree of the lower Court declaring the property exempt from execution was reversed and the plaintiff's suit dismissed with costs.
  • The Court's decision rests upon its interpretation that the 1868 grant was a one-time proprietary gift subject to land revenue and not a "pension" or "political pension" (as those terms are used in the Pensions Act and the Code of Civil Procedure) which would attract statutory immunity from attachment and sale. The opinion applies existing authorities to support this interpretation.
  • The opinion does not state that it establishes a novel precedent beyond applying and endorsing existing definitions and distinctions from the cited authorities; its immediate consequence is the reversal of the lower Court's decree and dismissal of the suit with costs.
Show all summary ...

Burkitt, J.:— A question of a somewhat unusual nature arises in this case. The facts which give rise to it are as follows:— In the year 1868, the Government of the North Western Provinces had on its hand certain zamindari property, possibly property confiscated during the mutiny in the Aligarh district, as yet undisposed of. By a sanad bearing date, June 30th, 1868, the Government conferred on one Ganga Baksh, proprietary rights in certain villages, including that in dispute in the present suit, subject to the payment of land revenue. Ganga Baksh is father of the plaintiff-respondent here, the grant is expressed to have been made in consideration of good service rendered to Government by Ganga Baksh. On the 29th of December, 1870, Ganga Baksh, conjointly with his uncle, executed to the appellants mortgage of that with other property to secure previous debts and a further advance of money. A decree for sale was obtained on that mortgage, and it would appear that some of the property comprised in the grant had already been sold. That portion of it, which forms the subject of this suit, was advertised for sale on October 25th, 1901. Thereupon the present suit was instituted by the minor son of Ganga Baksh through his next friend. The object of the suit is to obtain a declaration that: ‘the property sought to be sold is the land granted as pension for good services, and that, according to the military law, and the conditions of the grant, as well as according to the Hindu law, it is not saleable as against the plaintiff in execution of the decree held by defendants, first party.” In an earlier part of the plaint it is alleged that Ganga Baksh was the adopted son of Moti Singh, and that, in lieu of the good services, military and civil, rendered by Moti Singh, the British Government granted to Ganga Baksh, heir of Moti Singh, some villages as grant land by way of pension for good service. The property in suit here is part of the land granted to Ganga Baksh. Now, as to this extract from paragraph 3 of the plaint, we think the Subordinate Judge was right. There is no reference anywhere in the sanad to any services rendered by Moti Singh,’ Next, in paragraph 5 of the plaint it is averred that “the object of the grant was that the granted property should always remain in the family of Moti Singh, generation after generation, and his heirs should remain in possession thereof and continue to enjoy the profits thereof as political pension,” and further that none of Moti Singh's heirs had any power to encumber or sell it, “nor is any creditor of any heir of Moti Singh authorised to render such a grant liable for any demand or to get it sold.” In paragraph 10 it is averred that “such a land, granted as pension, can never in any way be sold in execution of a decree for satisfaction of any demand.” Finally, in paragraph 12, it is alleged by the plaintiff that to pass such a decree as that impugned in this case is beyond the jurisdiction of the Court, is irregular and null and void, and it is contrary to the provisions of the Letters Patent.”

2. For the defence it was contended that the property in suit could be taken in execution of the hypothecation decree for sale, and that the plaintiff had not been born at the date of the mortgage and of the decree.

3. The Subordinate Judge, who heard the suit, accepted the plaintiffs contention and gave a decree for the relief prayed for. His words are: “The plaintiff's foremost contention is that the grant was one to which Act XXIII of 1871 applied. I think it is so. The revenue was not of course granted, but the proprietary interest that was granted, was owned before the grant by the Government, and this was bestowed on Ganga Baksh for services rendered to the country, and therefore for political reasons. It is, it seems to me, a political pension which under section 266, Code of Civil Procedure, is exempted from attachment and sale. The word “anything” in section 3 of the Act is significant. Had it been meant to confine the operation of the Act to the grant of “Land revenue, or grant of money,” different and more explicit expression would have been used.

4. By his decree the learned Subordinate Judge declares that “the property sought to be sold is the land granted as pension for good services, and that according to the military laws and conditions of the grant as well as according to the Hindu law, it is not saleable as against the plaintiff, in execution of the decree held by the defendants, first party.” What the learned Subordinate Judge means by the phrases, “military laws,” “conditions of the grant” and “according to Hindu Law,” we are at a loss to understand. He seems to have copied them slavishly from the plaint without attempting to apply the facts of the case to them. For the appellants, the mortgagees, decree-holders, it is contended that the grant under the sanad of 1868 of proprietary rights, subject to the payment of revenue, to Ganga Baksh, cannot be considered to be a “political pension” within the meaning of section 266, clause (g) of the Code of Civil Procedure, nor a pension within the meaning of section II of the Pensions Act, No. XXIII of 1871.

5. The former enactment provides that “political pensions” shall not be liable to attachment and sale in execution of a decree, while the latter is as follows:— ”No pension granted or continued by Government on political considerations, or on account of past services or present infirmities, or as a compassionate allowance and no money due or to become due on account of any such pension or allowance shall be liable to seizure, attachment or requestration by process of any Court in British India at the instance of a creditor for any demand against the pensioner or in satisfaction of a decree or order of any such Court.”

6. The question then for decision is, does either of these two provisions debar a creditor from seizing in execution of his decree and from selling the property, the subject of this suit, or in other words can the grant made under the sanad of June 30, 1868, be considered to be either a “pension” under section II of the Pensions Act or a “political pension” under section 266 of the Code of Civil Procedure. It is to our minds extremely difficult to understand by what process of reasoning this grant of land, subject to payment of revenue, can be held to be a “pension” in any sense of that word. That which was granted by Government in June, 1868, was a gift of certain villages in proprietary possession to Ganga Baksh just as Government had it so pleased, might have made to him a gift of a valuable “Khillat” (or dress of honour) or of jewellery. We presume that such articles even though granted for good services rendered by the grantee, could not be considered to be a pension which the Civil Courts would compel a vendee to restore if sold to him by the grantee or would direct to be released if attached in execution of a decree against him. It is difficult to see what difference there can be between the case of such a gift and a gift of land. It is most noticeable also that in this case there was no grant to Ganga Baksh of any land revenue. The sanad expressly provided that, he was to pay the land revenue assessed on the villages. The argument for the defendant-respondent is that the receipt, year by year, by the grantee of the rents of the land granted to him by Government amounts to a pension. We cannot assent to Such a proposition. Such a receipt of rents from tenants is not a pension nor would the rents be payable by Government. The object of the grant of June, 1868, was, no doubt, once for all to give Ganga Baksh a suitable reward for his good services and not to confer on him an inalienable pension. Had the grant been one of “land revenue” possibly other considerations might arise, but that is a matter which we need not discuss. We have no doubt that the word “pension” in section II of the Pensions Act, and in section 256 of the Civil Procedure Code imply periodical payments of money by Government to the pensioner in the manner prescribed by section 8 of the Act. We are strengthened in that opinion by the provisions of section 12 of the Act which, when declaring null and void, any encumbrances created by a pensioner describe them as persons “entitled to any pension, pay or allowance mentioned In section II “of the Act, evidently ‘pension,’ ‘pay’ or ‘allowance’ are treated as being all of them “ejustan queries” importing persons entitled to periodical money payments, as appears from the words “in respect of any money” which follow the words cited above. In the case of the Secretary of State v. Khem Chand Tara Chand(1), the question was whether a “tora-garas” allowance was exempted from attachment under section II of the Pensions Act. From the observations of the learned Judge who delivered the judgment of the Court, we gather that an allowance of that nature was in the nature of a grant “made to families of free-booters as compensation for the loss of their blackmail. “In that case a Full Bench of the Court, after pointing out the distinction made in the Pensions Act between pensions and all other grants, proceed as follows at page 436: “It follows that in our opinion the word ‘pension’ in section II is used in its ordinary and well known sense, namely, that of a periodical allowance or stipend granted not in respect of right, privilege, perquisite or office, but on account of past services or particular merits or as compensation to dethroned princes; their families and dependents.” In this definition we fully concur, and it was cited with approval by this Court in the case of Rai Krishna Bhao v. Gobind Rai. A very good illustration of what is a political pension will be found in the case of Bishambar Nath v. Nawab Imdad Ali Khan(2), For the above reasons we have no hesitation incoming to the conclusion that the Subordinate judge was wrong in holding that the property in suit was protected from attachment and sale either under section 266, clause (g) of the Civil Procedure Code, or under section II of the Pensions Act. We therefore allow this appeal, we set aside the decree of the lower Court, and we direct that the plaintiffs-respondents' suit do stand dismissed with costs in all Courts.

M.L.NAppeal decreed.