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In the High Court of Judicature, Andhra Pradesh at Hyderabad
S.V. MARUTHI, J.
D.S.R. Prasad - Petitioner
Versus
M. Ramarao and another - Respondent
Civil Revision Petition No. 4205 of 1992
Decided on : 25-06-1994

A final decree cannot be passed against a legal representative of a deceased debtor in his personal capacity, but only against the estate of the deceased debtor in the hands of the legal representative.

Headnote:

DECREE - EXECUTION - NULLITY - FINAL DECREE PASSED AGAINST LEGAL REPRESENTATIVE IN PERSONAL CAPACITY - VALIDITY - SECTION 52 OF THE CIVIL PROCEDURE CODE - INTERPRETATION - COURT'S JURISDICTION TO PASS DECREE AGAINST ESTATE OF DECEASED DEBTOR IN HANDS OF LEGAL REPRESENTATIVE - SCOPE.

Fact of the Case:

The petitioner, the second plaintiff in a suit for dissolution of partnership and accounting, challenged the final decree passed against him in his personal capacity, contending that the decree was contrary to the terms of the preliminary decree, which directed the first plaintiff, his father, to render accounts and pay the amount due. The petitioner argued that the final decree was a nullity and could not be executed against him personally, as it violated Section 52 of the Civil Procedure Code (CPC).

Finding of the Court:

The court held that the final decree was not a nullity and that the executing court could not go behind the decree. However, the court also held that the decree could not be executed against the petitioner in his personal capacity, as the preliminary decree did not provide for the realization of the decree debt from him personally. The court further held that the respondents, the decree holders, were entitled to proceed with the execution of the decree only against the estate of the deceased first plaintiff in the hands of the petitioner.

Issues: 1. Whether the final decree passed against the petitioner in his personal capacity was valid and executable? 2. Whether the executing court could go behind the decree to determine its validity? 3. Whether the respondents were entitled to proceed with the execution of the decree against the petitioner in his personal capacity?

Ratio Decidendi: 1. The court held that the final decree was not a nullity, as it was passed by a court with jurisdiction and did not suffer from any inherent lack of jurisdiction. 2. The court held that the executing court could not go behind the decree to determine its validity, as the issue of the validity of the decree could only be raised in an appeal or a review petition. 3. The court held that the respondents were not entitled to proceed with the execution of the decree against the petitioner in his personal capacity, as the preliminary decree did not provide for the realization of the decree debt from him personally.

Final Decision: The court set aside the impugned order of the lower court and remanded the matter to the lower court to determine whether the E.P. schedule properties to the extent of half share belonged to the deceased 1st plaintiff, and whether the petitioner succeeded to the same. If so, the lower court was directed to proceed with the execution against the property of the deceased 1st plaintiff in the hands of the petitioner.

JUDGMENT :

1. This revision arises out of an order passed by the learned Subordinate Judge, Madanapalle in E.A. No. 286 of 1992 in E.P. No. 16 of 1991 in I.A. No. 1079 of 1983 in O.S. No. 74 of 1976.

2. The second plaintiff is the petitioner herein. Petitioner is the son of the first plaintiff. The first plaintiff died during the pendency of the final decree proceedings. The plaintiffs filed the suit seeking dissolution of the partnership firm carried on by the plaintiffs and the defendants in the name of Sunanda Silk Industries and for a direction to the defendants to account for the profits and losses. The trial Court passed a preliminary decree on 23-4-1980 holding that the firm is dissoved from 24-11-1976 and the first plaintiff Sri D. Gurumurthi has to render accounts from 20-8-1972 till 24-11-1976 and the first defendant shall account for the balance of sale consideration left over with him. Thereafter, plaintiffs filed I.A. No. 433 of 1980 for passing a final decree, pursuant to which, the Court appointed a Commissioner to work out and settle the accounts in terms of the preliminary decree. The Commissioner filed a report holding that the plaintiffs have to pay Rs. 1,42,918-00 and Rs. 9,000/- towards the share of the defendants. Since the said application was not pressed, the same was dismissed. Later on, the defendants filed I.A. No. 1079 of 1983 for passing a final decree in accordance with the report filed by the Commissioner. During the pendency of the petition one Sri Nagraj was appointed as Commissioner who examined the witnesses and marked documents. On the basis of the report submitted by the Commissioner, the learned Subordinate Judge passed a final decree holding that the total amount payable by the plaintiffs to the defendants is Rs. 1,79,704/-. The plaintiffs were also directed to pay interest at 12% per annum on the above total amount from the date of the suit i.e., 1-12-1976 till the date of realisation. Pursuant to the above order, a final decree was passed in the following terms:

“That the 2nd respondent/2nd plaintiff do pay petitioners/defendants a sum of Rs. 1,78,704/- with interest thereon at 12% p.a. from 1-12-76 (date of suit) to the date of realisation.”

3. The 2nd plaintiff filed E.A. No. 286 of 1992 in E.P. 16 of 1991 in I.A. No. 1079 of 1983 contending that the final decree passed is contrary to the terms of the preliminary decree as the preliminary decree was passed again???t the 1st plaintiff whereas in the final decree the 2nd plaintiff was made liable to discharge the decree amount in his personal capacity. He also raised various other objections. The trial Court dismissed the E.A. on the ground ???t the petitioner filed an appeal against the preliminary decree in A.S. No. 1767 of 1991 on the file of the High Court and sought for stay of execution of thedecree. While granting stay of execution of the decree, the High Court directed him to deposit the decretal amount against which he filed a Letters P???ent Appeal in L.P.A. No. 282 of 1992. This Court while disposing of the Letters Patent Appeal directed the petitioner to deposit the amount of Rs. 1,79,000/- within six weeks from the date of the order and with the said direction the order in the stay petition was modified. However, the petitioner has not deposited the amount which according to the learned Subordinate Judge establishes that the petitioner wants to prolong the matter for some reason or the other and that in view of the orders of the High Court in the L.P.A. no indulgence can be shown to the petitioner. Holding as above, the Subordinate Judge dismissed the E.A., against which, the present revision is filed.

4. The main contention of the learned Counsel for the petitioner is that the final decree is contrary to the terms of the preliminary decree as the preliminary decree was passed against the first plaintiff wherein it was categorically stated that the first plaintiff shall render accounts for the profits and losses of the busin

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