1934 Supreme(SC) 60
Privy Council At Peshawar
Sir Shadi Lal, Alness , Justice Lords Atkin, JJ.
L. Guran Ditta -Appellant
Versus
T.R. Ditta -Resopndent
Appeals Nos.16 and 17 of 1933
Decided On : 06-12-1934
T.L. Wilson, Nehra , J.M. Parikh, L. DeGruyther, K.V.L. Narasimham, W.H. Upjohn
Restitution under Section 144 of the Code of Civil Procedure is an imperative duty to restore a party to their original position, which typically includes awarding interest. Furthermore, a partition decree is preliminary if it requires subsequent orders to effect the actual division of property.
Headnote:(A) Code of Civil Procedure, 1908 - Section 144 - Restitution - Interest - The duty of the Court when awarding restitution is imperative to place the applicant in the position in which he would have been if the order had not been made - For this purpose, the Court is empowered to award mesne profits, interest, and other reliefs - Interest is part of the normal relief given in restitution.
(B) Partition - Preliminary and Final Decrees - A decree for possession by partition that leaves the actual partition to be effected by a subsequent order of the Court is a preliminary decree - Such a decree cannot be made effective without a further order and allows for the inclusion of further property for partition through proper procedure.
Facts of the case:
A dispute arose among family members regarding a bank deposit and the partition of joint family properties. A money decree was initially passed against one party for a share of the deposit, which was paid via attachment. Subsequently, a higher court set aside the money decree, ruling that partial partition is generally contrary to practice and all questions should be determined in a final partition. The party who paid the money sought restitution. A dispute arose as to whether interest should be awarded on the restored amount and whether a separate decree for partition of other immovable properties was a final or preliminary decree.
Findings of Court:
The court held that the award of interest is a standard component of restitution to ensure the applicant is restored to their original position. Regarding the partition decree, the court found it was preliminary in nature because it did not finalize the division and required a subsequent order to be made effective.
Issues: Whether interest is an essential part of restitution under Section 144 of the Code of Civil Procedure and whether a decree for partition that does not finalize the division of assets is a final or preliminary decree.
Ratio Decidendi: Restitution is an imperative legal duty to restore a party to the position they would have occupied had the set-aside order not been made; this ordinarily involves the payment of interest. A partition decree is preliminary if it leaves the actual division of property to be effected by a subsequent order.
Result: Appeal No. 16 allowed; Appeal No. 17 dismissed.
Legal Category Hierarchy
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practice and procedure
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civil procedure
- restitution
- partition suits
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civil procedure
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family law
- joint family property
Lord Atkin:-
These are two appeals from orders of the Court of the Judicial Commissioner, North-West Frontier Province, made in what may be hoped to be the final stages of a protracted litigation in the course of a family dispute. T.R. Ditta, now deceased and represented by the respondents, was the son of one Teku Ram, by a wife who predeceased him. His two brothers, Guran Ditta and Hari Chand, are the sons by another wife, Mt. Gujri, who Survived him and was a party to the litigation. Teku Ram, amongst other property, was entitled to a deposit of Rs.1,00,000 in the Alliance Bank of Simla, in the names of his wife, Mt. Gujri, and himself or either or the survivor. After his death the widow instructed the bank to pay to the appellant, Guran Ditta, which they did on 14th May 1921 the amount with interest, amounting to Rs.1,05,000. In August 1921, T.R. Ditta commenced a suit against the two brothers and Mt. Gujri claiming that the Rs.1,00,000 was part of the estate of Teku Ram, and claiming his share, one-third, as part of the joint property. The widow set up an absolute gift to her, which was negatived by both the Courts in India, and a money decree was made against the widow and Guran Ditta jointly and severally for payment of the sum with interest, this amounting to Rs. 37,368. This amount was levied from Guran Ditta personally by attachment of a deposit of his with the Treasury, and was paid on 10th January 1925. Guran Ditta appealed to the Privy Council and the appeal was heard on 1st March 1928. Meantime T.R. Ditta had, on 10th November 1926, instituted another suit for the partition of the rest of the joint family properties consisting of immovables and the proceeds of Rs. 20,000 War Bonds. He, of course, excluded the lac of rupees which had been the subject of the first suit, in respect of which he had a decree. But, subject to this, it is quite clear that the suit was one for final partition of the whole of the joint family property.
On 22nd December 1927, the District Judge made a decree in favour of the plaintiff for "possession by partition" of the immovable property. On 24th April 1928 the Judicial Committee gave judgment on the first appeal. They affirmed the finding that there had been no gift of the lac of rupees to his wife, but held that it was contrary to practice unless in very exceptional cases to grant partial partition, and they set aside the money decree. They had been told that T.R. Ditta had commenced a suit for final partition of the whole property; and they thought that all further questions should be determined in the final partition. Unfortunately, the legal advisers of the parties in this country had not been informed when the case was argued on 1st March 1928, that the District Judge had made a decree in the partition suit on 22nd December 1927; and it is obvious that their Lordships were in fact unaware of this decree when they gave judgment. On the other hand, if they had known that it had been given, there is no reason to suppose that the decision would have been different. They would have known that the first decision would be of the nature of a preliminary decree, and that it would always be open to the parties before a final decree upon proper procedure to bring in further property for partition. At any rate, in fact as between the parties it was finally adjudged that T.R. Ditta was not entitled to his decree for Rs. 37,368. Thereupon Guran Ditta applied in the first action for restitution of the amount which he had paid on the money decree now set aside, and on 23rd December 1929, the District Judge made an order accordingly. He did not direct payment to Guran Ditta, but ordered that the sum of Rs. 37,368 be paid into Court with interest at 5 per cent from the date when it was paid in execution proceedings. The dispute in the first appeal is as to the order for payment of interest. On appeal to the Judicial Commissioner he set aside so much of the order as directed payment of interest, being o