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1952 Supreme(SC) 89

SUPREME COURT OF INDIA
9th December 1952.
MAHAJAN, S.R. DAS, BOSE AND GHULAM HASAN, JJ.
Mohanlal Goenka, Appellant
VERSUS
Benoy Kishna Mukherjee and others, Respondents.
Appeal No. 139 of 1951.
Shri N. C. Chatterjee, Senior Advocate, (Shri B. C. Roy and Shri A. R. Mukherjea, Advocates with him), instructed by Shri P. K. Chatterjee, Agent, for Appellant; Shri Dr. N. C. Sen Gupta., Senior Advocate, (Shri B. L. Pal, Advocate, with him), instructed by Shri R. R. Biswas, Agent for Respondent No 1.

Headnote:

CIVIL PROCEDURE CODE - S. 41 - CERTIFICATE OF NON-SATISFACTION - JURISDICTION - EXECUTION COURT - RES JUDICATA - PRINCIPLE OF - APPLICABILITY TO EXECUTION PROCEEDINGS - WAIVER OF OBJECTION TO JURISDICTION - EFFECT OF.

Fact of the Case:

The decree-holder obtained a decree against the judgment-debtors in a suit on a compromise. The decree was sent for execution to the Asansol Court through the District Judge of Burdwan and the Asansol Court thereupon acquired jurisdiction to execute the decree against properties situated within its territorial limits. The application for execution made by the decree-holder which was numbered 296 of 1931 was, however, on 27-2-1932, dismissed for default and on 11-3-l932 the Asansol Court sent to the High Court what in form purported to be a certificate under Section 41 of the Code. The decree-holder on 24-11-1932, filed in the Asansol Court another petition for execution of the decree against the same judgment-debtors with the same prayer for the realisation of the decretal amount by sale of the same properties as mentioned in the previous execution case. The application was registered as Execution Case No. 224 of 1932. The judgment-debtors contention is that the certificate sent by the Asansol Court to the High Court on 11-3-1932, was and was intended to be in form as well as in substance a certificate under S. 41of the Code, and that thereafter the Asansol Court ceased to have jurisdiction as the executing Court and that as there was no fresh transmission of the decree by the High Court the Asansol Court could not entertain Execution Case No. 224 of 1932 and consequently all subsequent proceedings in the Asansol Court were void and inoperative for lack of inherent jurisdiction in that Court. This contention was rejected by the Subordinate Judge of the Asansol Court in his judgment delivered on 30-1-1945 in Misc. Case No. 70 of 1941 but found favour with the High Court in its judgment delivered on 10-2-1950, which is now under appeal before us.

Finding of the Court:

The High Court held that the Asansol court not only sent what purported to be a certificate under S. 41, Civil P. C. to the High Court, but intended such certificate to be a certificate of non-satisfaction. It did not agree with the Subordinate Judge that the document was not intended to be a certificate and was merely an intimation that the first attempt at execution had failed. In the view of the learned Chief Justice there was no need for the court at Asansol to send any intimation at all. The learned Chief Justice agreed that upon a true construction of S. 41, failure to execute the decree at the first attempt for non-appearance of the decree-holder was not the total failure to execute the decree as contemplated in that Section. He, however, held that the fact that the certificate was sent when it should not have been sent cannot affect the question if, as he held, the certificate was intended to be a certificate of non-satisfaction. The learned Chief Justice referred to a number of authorities in support of his conclusion. He accordingly held that the Asansol court had ceased to have jurisdiction to execute the decree and was not entitled to entertain the second application for execution.

Issues: 1. Whether the Asansol court had jurisdiction to entertain the second application for execution after sending the certificate under Section 41? 2. Whether the judgment-debtor is precluded by the principle of constructive res judicata from raising the question of jurisdiction?

Ratio Decidendi: 1. The execution court at Asansol never lost jurisdiction over the execution proceedings and that what purported to be a certificate under S. 41, Civil P. C. was no more than a mere intimation to the High Court that the execution case had been dismissed only for default, that it was no failure to execute the decree within the meaning of S. 41, Civil P. C., that in any case the subsequent orders of the High Court passed from time to time in the presence of the parties conferred jurisdiction upon the execution court to proceed with the execution and that in any event the question whether the execution court had or had not jurisdiction to execute the decree was barred by the principle of res judicata. 2. The principle of constructive res judicata is applicable to execution proceedings and the judgment-debtor is precluded by the principle of constructive res judicata from raising the question of jurisdiction.

Final Decision: Appeal Allowed.

Judgement Key Points

Key Points: - The execution court at Asansol retained jurisdiction and the certificate under Section 41 was treated as an intimation, not a fundamental loss of jurisdiction. (!) (!) - Constructive res judicata applies to execution proceedings; a judgment-debtor may be barred from raising jurisdiction objections if previously raised but not pressed, depending on the conduct and chronology of proceedings. (!) (!) (!) (!) - The High Court order directing transmission and authorization to proceed with sale affected the executing court’s jurisdiction, and subsequent challenges to jurisdiction were examined in light of whether proper transmission and certificate requirements were met. (!) (!) (!) (!) - The final decision allowed the appeal, restoring the Subordinate Judge’s dismissal of the judgment-debtor’s application, on grounds including res judicata and jurisdictional questions in execution. (!) (!) - The judgment discusses the interplay between transmission of a decree under S. 39, C.P.C., and the need (or lack thereof) for retransmission when an execution has already begun. (!) (!)

How to determine whether an execution court retains jurisdiction after sending a certificate under Section 41, Civil Procedure Code?

What is the applicability of the principle of constructive res judicata to execution proceedings in challenging the court’s jurisdiction?

What is the proper basis for challenging a decree’s transmission for execution and the effect of subsequent High Court orders on the executing court’s jurisdiction?


Judgement

MAHAJAN J.: (Bose J. agreeing) in our opinion, the decision can be rested on either of the grounds which have been raised by our brothers Das and Ghulam Hasan respectively. We would therefore allow the appeal on both the grounds.

2. Das J.: I have had the privilege of perusing the judgment delivered by my learned Brother Hasan and I agree with his conclusion that this appeal should be allowed. I would, however, prefer to rest my decision on a ground different from that which has commended itself to my learned Brother and as to which I do not wish to express any opinion on this occasion.

3. The relevant facts material for the purpose of disposing of this appeal have been very clearly and fully set forth in the judgment of Hasan J. and I need not set them out in detail here. Suffice it to say that on 12-6-1931 the High Court, Original Side, which is the Court which had passed the decree, transmitted the same for execution to the Asansol Court through the District Judge of Burdwan and that the Asansol Court thereupon acquired jurisdiction to execute the decree against properties situated within its territorial limits. The application for execution made by the decree-holder which was numbered 296 of 1931 was, however, on 27-2-1932, dismissed for default and on 11-3-l932 the Asansol Court sent to the High Court what in form purported to be a certificate under Section 41 of the Code. There is no dispute, however, that the Asansol Court did not return to the High. Court the certified copy of the decree and other documents which had been previously transmitted by the High Court. The decree-holder on 24-11-1932, filed in the Asansol Court another petition for execution of the decree against the same judgment-debtors with the same prayer for the realisation of the decretal amount by sale of the same properties as mentioned in the previous execution case. The application was registered as Execution Case No. 224 of 1932. The judgment-debtors contention is that the certificate sent by the Asansol Court to the High Court on 11-3-1932, was and was intended to be in form as well as in substance a certificate under S. 41of the Code, and that thereafter the Asansol Court ceased to have jurisdiction as the executing Court and that as there was no fresh transmission of the decree by the High Court the Asansol Court could not entertain Execution Case No. 224 of 1932 and consequently all subsequent proceedings in the Asansol Court were void and inoperative for lack of inherent jurisdiction in that Court. This contention was rejected by the Subordinate Judge of the Asansol Court in his judgment delivered on 30-1-1945 in Misc. Case No. 70 of 1941 but found favour with the High Court in its judgment delivered on 10-2-1950, which is now under appeal before us. 67

4. It appears that on 17-3-1933, the decree-holder took out a Masters summons in the Original Side of the High Court being the Court which passed the decree in Suit No. 1518 of 1923 praying, inter alia, that the Official Receiver be discharged from further acting as Receiver in execution, that leave be given to the Asansol Court to sell the Colliery in execution of the decree dated 25-6-1923, and the order dated 7-2-1924 and that leave be given to the plaintiff to bid for and purchase the Sripur Colliery. This summons was supported by an affidavit affirmed by one Pramatha Nath Roy Chowdhury, an assistant in the employ of the plaintiff. This affidavit refers to the consent decree of 25-1-1923, passed in the said suit and the additional terms of settlement embodied in the order of 7-2-1924, the payments made by the judgment-debtors from time to time amounting to Rs. 30,437/ 7 /8 besides a sum of Rs. 3,500 which had been paid on account of settled costs and states that the balance of the decretal amount was still due and that there had been no other adjustment of the decree. It refers to a previous application by tabular statement for execution of the decree by the appointment of a Receiv















































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