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1971 Supreme(SC) 156

SUPREME COURT OF INDIA
S.M. SIKRI, C.J.I., G.K. MITTER, K.S. HEGDE, P. JAGANMOHAN REDDY AND V. BHARGAVA, .JJ
Lalji Raja and Sons, Appellant
Versus
Firm Hansraj Nathuram, Respondent.
Civil Appeal No 2427 of l966, D/- 23-2-1971
M/s. S. C. Majumdar and R. K Jain, Advocates, for Appellant; Dr W S. Barlingay, Sr. Advocate, (M/s. Ramesh Malik and Ganpat Rai, Advocates, with him), for Respondent.

Advocates:
GANPAT RAI, R.K.JAIN, RAMESH MALIK, S.C.MAJUMDER, W.S.Barlingay

Headnote:

Civil Procedure Code,1908 - Sections 2 (5) , 38 , 39 and 48 - Limitation Act - Section 14 (2) - Execution appeal - Decree-holders - Decreed -Decree-holders filed another execution case before Bankura Court - Therein they prayed for transfer of decree again to the Morena Court for execution. As noticed earlier, by that time the Code had been extended to Madhya Bharat State which later became a part of the State of Madhya Pradesh - Bankura Court again ordered transfer of decree to Morena Court - Execution proceedings were started afresh in Morena Court (Execution Case No. 1 of 1963) - Judgment-debtors resisted execution on various grounds viz, (a) that it is barred by res judicata in view of decision of this Court referred to earlier - (b) that it is barred by Section 48 of Code ; (c) that it is barred by limitation and (d) that decree is not executable as it is a decree of a foreign Court - Judgment-debtor, appeals against that order to High Court - Whether decree under execution is not executable by Courts situate in area comprised in former State of Madhya Bharat - Whether decree is barred by Section 48 of Code – Held, It was decided in that case, that Morena Court not being a Court to which Code applied decree could not have been transferred and that Sections 38 and 39 of Code did not afford jurisdiction for such transfer as Morena Court at time of transfer was governed by Madhya Bharat Civil Procedure Code and not by Code - It was observed that Section 13 of Code creates substantive rights and not merely procedural and defences that were open to Respondents were not taken away by any Constitutional changes but ratio of decision was that Gwalior Court not being a Court that passed decree after coming into force of Act II of 1951 Allahabad Court could not execute it - That impediment does not exist now in that Bankura Court has transferred decree to a Court under Code - Plea that Section 48 Civil Procedure Code presents a bar of limitation is also not tenable - In result agree that Appeal should be allowed as directed by Court learned brother - Appeal allowed.

Judgment

HEGDE, J. (with Sikri, CJI., Mitter and Bhargava JJ.): - This is an execution appeal. The decreeholders are the appellants herein. This case has a long and chequered history. The decree-holders obtained a decree against the respondents in the Court of Sub-Judge, Bankura (West Bengal) for a sum of over Rs. 12,000/-, on December 3, 1949. On March 28, 1950 they applied to the Court which passed the decree to transfer the decree together with a certificate of non-satisfaction to the Court at Morena in the then State of Madhya Bharat for execution. It was ordered accordingly. The execution proceedings commenced in the Court of Additional District Judge at Morena on September 21, 1950 (Money Execution Case No. 8 of 1950). The judgment-debtors resisted the execution on the ground that the Court had no jurisdiction to execute the same as the decree was that of a foreign Court and that the same had been passed ex parte. The Court accepted that contention and dismissed the execution petition on December 29, 1950. On April 1, 1951 the Code of Civil Procedure (Amendment) Act, (Act II of 1951) came into force. As a result of that the Code of Civil Procedure (in short the Code ) was extended to the former State of Madhya Bharat as well as to various other places. Meanwhile the decree-holders appealed against the order of the learned Additional District Judge, Morena dismissing the execution petition, to the High Court of Madhya Pradesh. The Madhya Pradesh High Court allowed their appeal. As against that the judgment-debtors appealed to this Court. This Court allowed the appeal of the judgment debtors and restored the order of the learned Additional District Judge, Morena. The decision of this Court is reported in Hansraj Nathu Ram v. Lalji Raja and Sons of Bankura, (1963) 2 SCR 619. Therein this Court ruled that the transfer ordered by the Bankura Court was without jurisdiction as on that date the Code did not apply to the Morena Court. This Court held that Morena Court not being a Court to which the Code applied, the decree could not have been transferred to it. It further held that Sections 38 and 39 of the Code did not afford justification for such a transfer. It may be noted that at the time the Bankura Court ordered the transfer of the decree, the Morena Court was governed by the Indian Code of Civil Procedure as adapted by the Madhya Bharat Adaptation Order, 1948. In other words it was governed by a law passed by the then Madhya Bharat State. In the course of its judgment this Court observed that under the Code "a decree can be executed by a Court which passed the decree or to which it was transferred for execution and the decree which could be transferred has to be a decree passed under the Code and the Court to which it could be transferred has to be a Court which was governed by the Indian Code of Civil Procedure". The first stage of the execution proceedings came to an end by the decision of this Court rendered on April 30, 1962.

2. On February 15, l963, the decree-holders filed another execution case before the Bankura Court. Therein they prayed for the transfer of the decree again to the Morena Court for execution. As noticed earlier, by that time the Code had been extended to the Madhya Bharat State which later became a part of the State of Madhya Pradesh. The Bankura Court again ordered the transfer of the decree to the Morena Court. The execution proceedings were started afresh in the Morena Court on August 31, 1963 (Execution Case No. 1 of 1963). The judgment-debtors resisted the execution on various grounds viz, (a) that it is barred by res judicata in view of the decision of this Court referred to earlier. (b) that it is barred by Section 48 of the Code ; (c) that it is barred by limitation and (d) that the decree is not executable as it is a decree of a foreign Court.

3. The learned Additional District Judge rejected the objections raised by the judgment-debtors. The judgment-debtor, appeals against that






















































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