Mathurapore Zamindary Co. Ltd. Vs Bhasaram Mandal

Calcutta High Court 14 Feb 1924 (1924) ILR (Cal) 703
Bench: Division Bench
Acts Referenced

Judgement Snapshot

Hon'ble Bench

Walmsley, J; Mukerji, J

Acts Referred

Bengal Tenancy Act, 1885 — Section 148#Civil Procedure Code, 1908 (CPC) — Order 21 Rule 16

Judgement Text

Translate:

Mukerji, J.@mdashThe facts which have given rise to this appeal are quite simple.

2. On the 4th February, 1920, Mr. G. Hennessey and others obtained a decree for rent against the respondents. The appellants, the Mathurapore

Zamindary Co., Ld., on the 17th July, 1920, applied for execution of the said decree, after being substituted in the place of the decree-holders on

the basis of certain assignments in respect of the decree-holders'' properties alleged to have been made in the first instance in September, 1919

and, thereafter in January, 1920. The learned Munsif, in whose Court the said application was made, issued notice on the judgment-debtors to

show cause why the substitution should not be made. The judgment-debtors appeared, denied that there was any assignment of the decree in

question and challenged the locus standi of the appellants to get themselves substituted or proceed with the execution. The learned Munsif held that

the appellants were not transferees of the decree, either by assignment in writing or by operation of law and therefore they were not competent to

apply for execution and consequently dismissed the application for execution. On appeal being taken from the said order, the order was affirmed

and hence the present appeal to this Court.

3. It was contended on behalf of the appellants that, by reason of the provisions of Section 148 of the Bengal Tenancy Act, a mere assignment of

the decree would not have enabled them to execute the same as a rent decree and inasmuch as they are assignees of the decree-holders''

properties in respect of which the rent decree was passed, they were in a better position than mere assignees of the decree, that though there was

no assignment of the decree in writing, there was one by operation of law, inasmuch as the assignment of the properties had been made together

with all arrears of rent and on principles of equity it should have been held that they were transferees of the decree by assignment. Reliance was

placed on their behalf upon the case of Ananda Mohon Roy v. Promotha Nath Ganguli (1920) 26 C.W.N. 863. It is unnecessary to refer to the

other cases cited, as they do not appear to bear upon the aforesaid contention.

4. On the other hand, it was contended on behalf of the respondents that no consideration of equity could arise between an assignor and an

assignee, such as might arise between a mortgagor and a mortgagee, as was the case in Ananda Mohon Roy v. Promotha Nath Ganguli (1920) 26

C.W.N. 863. Reference was made on their behalf to the case of Thakuri Gope v. Malik Mokhtar Ahmad (1922) C.W.N. Pat. 256 in support of

the contention that the transferee under such circumstances could not come in to execute the decree.

5. At the outset, I may observe that the deeds of assignment upon which the appellants rely have not been placed before us, nor are they to be

found on the record, and the only indication of their contents that can be gathered is from the judgment of the Munsif, where he says that ""It is

contended that the property of the decree-holders with all balances and sums of money due and owing by the raiyats and uncollected and unpaid

on the day of assignment ""had been transferred."" The relevant provision of the Code is Order XXI, Rule 16. It is not pretended in the present case

that there was any assignment of the decree in writing and it is well settled that if it is to be a valid assignment within the meaning of this rule and one

not by operation of law it must be in writing and a transferee under an oral assignment has no locus standi: Parvata v. Digambar I.L.R (1890) . 15

Bom. 307. The Judicial Committee in the case of Jalindra Nath Basu v. Peyer Deye Debi ILR (1916) Cal 990; L.R. 43 IndAp 108 has observed

that ""such a transfer of the decree could by reason of Section 232 of the Code of Civil Procedure, 1882 (which, with certain modification which

need not be referred to for our present purposes, corresponds to Order XXI, Rule 16, of the present Code), be effected only by an assignment in

writing.

6. The contention that there was an assignment by operation of law is mainly based upon the observations of this Court in the case of Ananda

Mohon Roy v. Promotha Nath Ganguli (1920) 25 C.W.N. 863. Transferees by operation of law ordinarily would be legal representatives of the

deceased decree-holder, or the Official Assignee in the case of an insolvent-debtor, or the purchaser of a decree at a Court sale, or a minor

succeeding to the estate which was in the hands of an executor and other instances where there is a vesting of the interest by operation of statute. It

is necessary, therefore, to analyse the aforesaid decision very carefully in order to see whether it really professes to extend the meaning of that

expression. The facts in that case were as follows: Certain properties together with all rents, issues and profits arising therefrom or appertaining

thereto were mortgaged, the mortgagee obtained a decree on the mortgage on the Original Side of this Court, and in execution of the decree the

properties hypothecated, together with all arrears of rent, were sold and were conveyed by the Registrar to the appellants in the appeal on a

certain date. On that day, certain rent suits, which the mortgagors had instituted previously for back rents in respect of some jamas held under the

properties hypothecated, were decided and decrees for rent passed in favour of the mortgagors. The appellants in the appeal applied for execution

of the rent decrees and the question arose whether they could do so as there was no assignment of the decrees in writing or by operation of law.

The learned Judges in the course of their judgment commented on and distinguished the cases of Ram Sahai v. Gaya I.L.R (1884) All. 107 and

Dost Muhammad v. Altaf Husain Khan (1912) 17 Ind. Cas. 512 as being inapplicable, as the facts therein were different from those in the case

they were dealing with. No doubt in the judgment of this Court in that case the observations of Sargent C.J. in the case of Purmananddas Jiwandas

v. Vallabdas Wallji I.L.R.(1887) 11 Bom. 506 were quoted at length, but the decision of this Court, as I read it, did not turn upon the meaning of

the expression ""by operation of law"". This Court held that ""In the present case there was no assignment of the decree for arrears of rent in so many

words, but not only the properties under which the jamas in arrears were included, but also all arrears of rents which were the subject of the rent-

suits were assigned to the appellants. The arrears of rent were none the less arrears though suits had been brought for them, and decrees were

passed for them on the very day the conveyance was executed and we think that in these circumstances the appellants may be treated as the

Original Side of this Court, and in execution of the decree the properties hypothecated, together with all arrears of rent, were sold and were

conveyed by the Registrar to the appellants in the appeal on a certain date. On that day, certain rent suits, which the mortgagors had instituted

previously for back rents in respect of some jamas held under the properties hypothecated, were decided and decrees for rent passed in favour of

the mortgagors. The appellants in the appeal applied for execution of the rent decrees and the question arose whether they could do so as there

was no assignment of the decrees in writing or by operation of law. The learned Judges in the course of their judgment commented on and

distinguished the cases of Ram Sahai v. Gaya I.L.R (1884) All. 107 and Dost Muhammad v. Altaf Husain Khan (1912) 17 Ind. Cas. 512 as being

inapplicable, as the facts therein were different from those in the case they were dealing with. No doubt in the judgment of this Court in that case

the observations of Sargent C.J. in the case of Purmananddas Jiwandas v. Vallabdas Wallji (1887) ILR 11 Bom. 506 were quoted at length, but

the decision of this Court, as I read it, did not turn upon the meaning of the expression ""by operation of law"". This Court held that ""In the present

case there was no assignment of the decree for arrears of rent in so many words, but not only the properties under which the jamas in arrears were

included, but also all arrears of rents which were the subject of the rent-suits were assigned to the appellants. The arrears of rent were none the

less arrears though suits had been brought for them, and decrees were passed for them on the very day the conveyance was executed and we

think that in these circumstances the appellants may be treated as of law as administered in these Courts. We think under the circumstances we

must hold that this decree has been transferred to Purmananddas by operation of law. In the present case the decree has been transferred in

writing as construed in these Courts."" These last words are very important and they appear, in the judgment of Sargent C.J. himself. In my

judgment it is obviously right to invoke the aid of doctrines of equity in the matter of interpretation of a document of this nature executed by a

trustee under a will in favour of the cestui que trust, If however, the decision purports to lay down broadly that Courts of execution have to look to

equity in considering whether there has been an assignment by operation of law, I regret I am unable to assent to the proposition. The Madras High

Court in the case of Basroorvittil Bhandari v. Ramchandra Kamthi (1906) 17 Mad. L.J. 391 declined to apply the doctrine of equity in somewhat

similar proceedings, and observed as follows: ""We are asked to hold that in the event which happened in this case the appellant is entitled to be

treated as the transferee of a decree from the decree-holder for the purpose of Section 232, Civil Procedure Code, notwithstanding that at the

time of assignment there was no decree and no decree-holder. It seems to as that we should not be warranted in applying the doctrine of equity on

which the appellant relies, which is stated in Palaniappa v. Lakshmanan ILR (1893) Mad. 429 for the purpose of construing Section 232 of the

Code. We think the words ''decree-holder'' must be construed as meaning decree-holder in fact and not as including a party who in equity may

afterwards become entitled to the rights of the actual decree-holder, and that the words of the section relating to a transfer of a decree cannot be

construed so as to apply to a case where there was no decree in existence at the time of the agreement."" The Judicial Committee of the Privy

Council had occasion to deal with a somewhat similar provision contained in Section 208 of Act VIII of 1859 in the case of Abidunnissa Khatoon

v. Amirunnissa Khatoon ILR (1876) Cal 327; L.R. 4 IndAp 66 and their Lordships condemned the consideration of principles of equity in such

proceedings. Their Lordships observed as follows: ""Then we come to Section 208, which, undoubtedly, is a section relating to proceedings for

execution, and after judgment and decree. It is to this effect: ''If a decree shall be transferred by assignment or by operation of law from the original

decree-holder to any other person, application for the execution of the decree may be made by the person to whom it shall have been so

transferred, or his pleader, and if the Court shall think proper to grant such application, the decree may be executed in the same manner as if the

application were made by the original decree-holder.'' It appears to their Lordships, in the first place that, assuming Wajed to have the interest

asserted, the decree was not, in the terms of this section, transferred to him either by assignment, which is not pretended, or by operation of law,

from the original decree-holder. No incident had occurred on which the law could operate to transfer any estate from his mother to him. There had

been no death; there had been no devolution; there had been no succession. His mother retained what right she had; that right was not transferred

to him; if he had a right, it was derived from his father; it appears to their Lordships, therefore, that he is not a transferee of a decree within the

terms of this section. Their Lordships have further to observe, that they agree with the Chief Justice in the view which he expressed,--that this was

not a section intended to apply to cases where a serious contest arose with respect to the rights of persons to an equitable interest in a decree. It

was not intended to enable them to try an important question such as the legitimacy or illegitimacy of an heir. They are further fortified in this view

by the consideration that, u/s 364 of this Act, no appeal would lie from any judgment or decision given in a proceeding u/s 208; it appears difficult

to suppose that such an important question as this should be triable without appeal. Therefore, in their Lordships'' view, agreeing with that of the

Chief Justice, Section 208 does not apply. Even if it did apply, it would appear to their Lordships that, inasmuch as proceedings under it axe not

subject to appeal, probably a suit would lie for the purpose of reversing an order made in pursuance of it.

7. In my opinion the fact that, under the present law, there is an appeal does not take away from the weight that should attach to the above

observations. In the case before us the outstanding features are that there was no assignment of the decree in fact in writing, that no question of

equity arises inasmuch as it was a simple transaction between an assignor and an assignee and that the decree was not in fact in existence on the

date of the assignment but came into being long after that date. Under such circumstances can the assignee come in? There was no doubt an

assignment of the properties, and I may assume with all its back or future rents, but that is essentially different from the transfer of the decree itself.

See the observations of Mahmood J. in Ram Sahai v. Gaya ILR (1884) All. 107, and Hansraj Pal v. Nukhraji Kunwar (1907) All. W.N. 280. A

person to whom a party agrees to transfer a decree that may be passed in a suit is not a transferee within the meaning of the rule: Basroorvittil

Bhandari v. Ramchandra Kamthi (1906) 17 M.P. L.J. 391. A transfer of the property during the pendency of the suit does not entitle the

purchaser to apply for the execution of the decree, unless he has taken steps to have his name substituted in the suit in the place of his vendor, and

Order XXI, Rule 16, Civil Procedure Code, does not apply to such a case; Dost Muhammad v. Altaf Husain Khan (1912) 17 Ind. Cas 512, Peer

Mahomed Rowthen v. Raruthan Ambalam (1914) 30 Ind. Cas. 831, Thakuri Gope v. Malik Mokhtar Ahmad (1922) C.W.N. Pat. 256. There

having been no transfer by assignment in writing, the appellants could not by any application to the Court have kept the decree alive. See the

observations of the Judicial Committee in the case of Jatindra Nath Basu v. Peyer Deye Debi ILR (1916) Cal 990; L.R. 43 IndAp 108. The

appellants'' contention based on the provisions of Section 148 of the Bengal Tenancy Act does not really assist them for, if at all, those provisions

impose on the transferee of a rent decree a further disability, which must be removed before he can apply for executing the decree as a rent

decree.

8. The appellants'' contentions, therefore, fail, the orders passed by the Courts below are correct and the appeal must be dismissed with costs.

Walmsley, J.

9. I agree.

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