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1976 Supreme(AP) 25

Andhra Pradesh High Court
Judges : V.MADHAVA RAO
Andhra Bank Limited, rep.by its Manager, Madras branch - Appellant
Versus
Trans-World Traders, a proprietor/concern, owned by P.N.Bala Subrahmanyam - Respondent
Decided On : 02-12-76

The High Court has the power to interfere with the order of the Agent to the Government under Article 227 of the Constitution of India if the order is erroneous or illegal.

Headnote:

AGENCY COURT - JURISDICTION - EXECUTION OF DECREE - APPEAL PENDING AGAINST DECREE - WHETHER EXECUTION CAN BE STAYED - POWER OF AGENT TO GOVERNMENT UNDER RULE 35 OF THE ANDHRA PRADESH AGENCY RULES - SCOPE AND EXTENT - POWER OF HIGH COURT UNDER ARTICLE 227 OF THE CONSTITUTION OF INDIA - SCOPE AND EXTENT.

Fact of the Case:

The Andhra Bank Limited had instituted a suit against four defendants and obtained a decree against the 1st defendant for a sum of Rs 1,30,356-72 with subsequent interest at 6%. The suit in respect of 2nd defendant, the surety and defendants 3 and 4 was dismissed. The plaintiff had preferred an appeal, O. S. A. No. 50/1970 on the file of the High court cf Judicature at Madras praying for a decree against the 2nd defendant, the surety. No appeal has been preferred by the 1st defendant, the principal judgment-debtor against whom the decree has been passed in the suit. The decree-holder, in the meanwhile, sought for transfer of the decree to the court of the Agent to Government of Andhra pradesh at Khammam for execution against the judgment -debtor, who was said to be residing at Ramavaram situate in the agency area over which the Agent to Government has jurisdiction. After the transfer of the Decree, E. P. No, 1 of 1971 was filed before the court of the agent to Government of Andhra Pradesh, khammam for attachment and sale of the shares held by the judgment-debtor in barium Chemicals Limited and for attachment and recovery of the judgment debtor s salary in that company. A counter was filed to the effect that the execution petition was premature as the appeal preferred by the decree-holder in the Madras High Court was still pending and in any event the execution must be stayed till the disposal of the appeal in the Madras High Court.

Finding of the Court:

The Court held that the Agent to the Government has no power to stay the execution of the decree merely because an appeal is pending against the decree. The Court further held that the High Court has the power to interfere with the order of the Agent to the Government under Article 227 of the Constitution of India if the order is erroneous or illegal.

Issues: 1. Whether the C. M. A. preferred under Sec, 47 and 96 C. P. C against the order of the Agent to Government is or is not mamtainable ? 2. Whethere the impugned Order can be revised by the High Court by virtue of its power of control or superintendence vesred in it under Art. 227 of the Constitution of India? 3. Whether on the facts and in the circumstances, the impugned order is or is not liable to be set aside?

Ratio Decidendi: 1. The Court held that the Civil Miscellaneous Appeal under Sections 47 and 96 of the Code of Civil Procedure is not maintainable against an order passed by the agent to Government under Rule 35 of the A P Agency Rules refusing to execute the decree or staying execution proceedings for the reasons recorded by him. 2. The Court held that the High Court has the power to interfere with the order of the Agent to the Government under Article 227 of the Constitution of India if the order is erroneous or illegal. 3. The Court held that the impugned order of the Agent to the Government staying the execution of the decree was erroneous and illegal and hence it was set aside.

Final Decision: The Civil Revision Petition is allowed and the Civil miscellaneous Appeal is dismissed. There will be no order as to costs.

KONDAIAH, J.

( 1 ) THE Civil Miscellaneous Appeal as well as the Civil Revision Petition have been preferred by the Andhra Bank limited against the order of the court of the Agent to Government at Khammam dismissing E. P. No 1 of 1971 on the ground that the petition was not fit, at that juncture to be considered.

( 2 ) THE material facts leading to the appeal and the revision petition may be briefly stated. The Andhra Bank limited had instituted a suit (O. S. 244 of 1965 ) on the Original side of the Madras high Court against four defendants, the respondents herein and obtained a decree on May 2 1969 against the 1st defendint for a sum of Rs 1,30,356-72 with subsequent interest a: 6%. The suit in respect of 2nd defendant, the surety and defendants 3 and 4 was dismissed. The plaintiff had preferred an appeal, O. S. A. No. 50/1970 on the file of the High court cf Judicature at Madras praying for a decree against the 2nd defendant, the surety. No appeal has been preferred by the 1st defendant, the principal judgment-debtor against whom the decree has been passed in the suit. The decree-holder, in the meanwhile, sought for transfer of the decree to the court of the Agent to Government of Andhra pradesh at Khammam for execution against the judgment -debtor, who was said to be residing at Ramavaram situate in the agency area over which the Agent to Government has jurisdiction. After the transfer of the Decree, E. P. No, 1 of 1971 was filed before the court of the agent to Government of Andhra Pradesh, khammam for attachment and sale of the shares held by the judgment-debtor in barium Chemicals Limited and for attachment and recovery of the judgment debtor s salary in that company. A counter was filed to the effect that the execution petition was premature as the appeal preferred by the decree-holder in the Madras High Court was still pending and in any event the execution must be stayed till the disposal of the appeal in the Madras High Court originally, the judgment-debtor requested to stay further proceedings in the execution petition only for a month from october 23, 1971. The Judgment Debtor also approached the High Court of andhra Pradesh for transfer of the case from the Agent s court to the Court of the District and Sessions judge, Khammam but was not successful. His attempt to obtain stay of execution of the decree from the Madras High Court was also without success. The Madras High court has directed the judgment-debtor to pay the decretal amount within a particular period. But however, the judgment-debtor did not comply with the conditional order passed by the madras High Court. Although the court of the Agent agreed with the decree holder that the executing court could neither question the validity of the decree nor go behind the decree, it did not chink it just and proper to consider the execution petition till the appeal In the Madras High Court preferred by the share-holder is decided or withdrawn. The operative portion of the order now sought to be reversed or revised, at the instance of the decree-holder reads as follows. "but the point to be considered is that the appeal that is said to be pending is against the decree that is before us for execution, and the learned advocate has not been able to cite any "case law in support of this argument that he can seek execution as well as challenge the decree that is under execution i cannot agree with the learned advocate that even if the decree if amended he can request execution of decree against any one of the judgment-debtors. An amendment of a decree may result in one of the two ways. All the four judgment-debtors may be made responsible jointly or severally or the amendment may result in in apportionment of liability. In the latter case execution against a single person for the entire amount before a decision is given on appeal will not be proper Under there circumstances, 1 order that the execution of the decree can only be considered after the appeal is decided or w
















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