1939 Supreme(SC) 8
Privy Council At Calcutta
Sir George Rankin, Lord Porter , Justice Lord Romer, JJ.
Anath Nath Biswas and others -Appellant
Versus
Dwarka Nath Chakravarti and others -Resopndent
Privy Council Appeals Nos. 73 and 74 of 1936, Bengal Appeals Nos.12, 21 and 22 of 1933
Decided On : 16-02-1939
Nevill, Barrow Rogers , Hy.S.L. Polak and Co., W.W. Box and Co., S. Hyam, L.P.E. Pugh, W. Wallach, J.M. Pringle, Sir T.J. Strangman
A co-owner may purchase property at a revenue sale without notifying other co-owners. Relief against a third-party purchaser requires proof of the purchaser's notice of fraud. Additionally, challenges to a sale's jurisdiction in appeal are barred unless cross-objections are filed under Order 41, Rule 22 of the CPC.
Headnote:(A) Code of Civil Procedure - Order 41, Rule 22 and Rule 33 - Appeal - Cross-objections - Grounds for challenging revenue sale - Jurisdiction and irregularity - Limitation on raising new grounds in appeal without filing cross-objections.
(B) Revenue Sale - Fraud and improper conduct by co-owner - A co-owner is entitled to make arrangements to purchase the property at a revenue sale; co-owners are not entitled to object nor must they be informed in advance - To claim relief against a third-party purchaser, it must be proved that the purchaser had notice of the wrongful acts complained of.
(C) Order 41, Rule 22 of the Code of Civil Procedure - A party cannot maintain that a trial court was wrong in refusing to set aside a sale on grounds of want of jurisdiction or irregularity if no cross-objections were filed in the Appellate Court - Rule 33 cannot be used to abrogate the condition of filing objections to prevent an independent appeal without notice to the successful party.
Facts of the case:
An estate was sold at a revenue sale due to defaults by some co-owners. The property was purchased by a manager acting for minors, who had a prior arrangement to convey parts of the estate to one of the co-owners. Other co-owners challenged the sale, alleging that the co-owner and his son had committed fraud by suppressing court orders and dissuading other potential bidders to keep the purchase price low. The trial court found fraud and ordered reconveyance, but the High Court reversed this. The appellants further sought to challenge the sale's jurisdiction and regularity.
Findings of Court:
The court found no evidence of fraud or trickery by the co-owner to surprise other bidders. The allegations of dissuading bidders were based on unreliable evidence. Furthermore, there was no proof that the third-party purchaser had notice of any alleged misstatements. Procedurally, the challenge to the sale's jurisdiction was barred as no cross-objections were filed under Order 41, Rule 22.
Issues: 1. Whether the co-owner and his son acted fraudulently to interfere with the auction sale to the prejudice of other co-owners. 2. Whether the third-party purchaser had notice of any alleged wrongful acts. 3. Whether the appellants could challenge the revenue sale for want of jurisdiction or irregularity in appeal without having filed cross-objections.
Ratio Decidendi: A co-owner's right to purchase property at a revenue sale is not subject to a duty to inform other co-owners. Relief against a subsequent purchaser requires proof that the purchaser had notice of the fraud. Under Order 41, Rule 22 of the Code of Civil Procedure, grounds for setting aside a sale based on jurisdiction or irregularity cannot be raised in appeal unless cross-objections are filed; Rule 33 does not override this requirement.
Result: Appeals dismissed.
Legal Category Hierarchy
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property law
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land revenue
- revenue sales
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co-ownership
- fraud and reconveyance
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land revenue
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practice and procedure
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civil procedure
- appeals
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civil procedure
Sir George Rankin:-
In the books of the Collectorate of the 24-Parganas touzi No. 151 was an estate bearing a land revenue of Rs.39,786 and divided into two blocks. The larger block or Burra Hudda consisted of 104 villages scattered throughout the district and to it was allocated over Rupees 37,000 of the annual revenue. The smaller block or Chota Hudda consisted of seven villages: about Rs. 2000 of the revenue was allocated to it, and its lands lay on the outskirts of Calcutta. In each block the zamindary right was vested in a number of persons and in each a number of separate accounts had been opened under the Bengal Land Revenue Sales Act (11 of 1859). The three sets of plaintiffs-appellants now before the Board were all interested in Burra Hudda Rai Dwarka Nath Chakravarti Bahadur (respondent 1) was interested in both and had a separate account or accounts in each. In Burra Hudda he had an interest in some 30 villages : in Chota Hudda he had a one-half interest in respect of which ho had been allotted in severally by a final decree for partition about 100 bighas.
By the end of 1927 the owners of two separate accounts in Burra Hudda-numbered 7 and 8-had defaulted in payment of their share of the revenue and their separate interest had been put up for sale without result. On 5th and 6th January 1928, the Collector directed that the whole estate be put up for sale on 23rd February 1928. On that date the entire estate was sold by auction to one Suresh Sanyal for Rs. 85,000. In the events which have since happened the persons entitled in right of this purchase are (1) respondent 3A, Bahadur Singh Singhee, the only contesting defendant, in respect of Burra Hudda, (2) respondent 1 in respect of Chota Hudda which he purchased from Singhee for Rs.12,000, (3) certain persons formerly interested in Chota Hudda who have been allowed by respondent 1 to buy back from him their former interest.
The three suits which have given rise to the present consolidated appeal were filed in 1928 and 1929. By their plaints the appellants challenged the revenue sale of 23rd February 1928, as wholly void for want of jurisdiction and bad for irregularities, but the learned Subordinate Judge found against these contentions. They also alleged however that in respect to the revenue sale respondent 1 in concert with his son Gopal, and with Suresh Sanyal (the nominal bidder) had been guilty of fraud or improper conduct to the prejudice of his co-owners in the estate, and contended that, by reason thereof, the purchase was one in which they could claim to share by recovering their former interest in Burra Hudda upon payment of a proper proportion of the purchase money. In each case the learned trial Judge accepted this contention and gave the plaintiffs a decree (5th January 1931), directing Bahadur Singh Singhee to convey to them their former share on receipt of a proportionate part of Rs. 85,000. Relief was granted in this form as being in accordance with the decision of this Board in Deonandan Prashad v. Janki Singh , (1916) 3 AIR PC 227=39 IC 346=44 Cal 573=44 IA 30 (PC), where a co-owner's mortgagee by making default in the payment of revenue had intentionally brought about a revenue sale in order to purchase himself.
The learned Judges of the High Court (C.C. Ghose and S.K. Ghose JJ.) on appeal dismissed the three suits with costs (11th April 1933), holding that no fraud or improper conduct towards his co-owners in respect of the revenue sale had been proved against respondent 1, and that it was no longer open to the plaintiffs, who had carried in no cross-objections to the decree of the trial Court, to maintain that the revenue sale should be set aside for want of jurisdiction or irregularity.
Suresh Sanyal was the manager employed by a widow lady Srimati Sailasnta Debi who was guardian of her two minor sons. She had been minded for some time before 1928 to buy touzi No. 151 on behalf of her sons if it was brought to sale and was prepared to bid up to fou