IN THE HIGH COURT OF BOMBAY
Shah J.C. , J.
Appellants: Laxminarayan Devastan and Ors.
Vs.
Respondent: Khanderao Yeshwantrao and Ors.
First Appeal No. 56 of 1952
Decided On: 20.10.1953
Counsels:
For Appellant/Petitioner/Plaintiff: D.V. Patel, Adv.
For Respondents/Defendant: V.M. Tarkunde, Adv.
CIVIL PROCEDURE CODE - SECTION 73 - RATABLE DISTRIBUTION - SAME JUDGMENT-DEBTOR - LEGAL CHARACTER - IDENTITY OF INDIVIDUALITY - IDENTITY OF ESTATE - INTERPRETATION AND APPLICATION.
Fact of the Case:
Two rival decree-holders, one seeking to enforce a decree against Khanderao personally and the other seeking to enforce a decree against Khanderao as the legal representative of his father and uncle, disputed the rateable distribution of assets held by the court.
Finding of the Court:
The court held that the two decrees were not passed against the same judgment-debtor as there was no identity of legal character or legal capacity between the judgment-debtors in the two decrees.
Issues: Whether the two decrees were passed against the same judgment-debtor for the purpose of rateable distribution under Section 73 of the Civil Procedure Code.
Ratio Decidendi: The court interpreted Section 73 of the Civil Procedure Code and held that for rateable distribution to be ordered, the decrees must be passed against the same judgment-debtor, which requires identity of individuality and identity of character or legal capacity between the judgment-debtors.
Final Decision: The court set aside the order of the executing court directing rateable distribution and held that the decree-holders seeking to enforce the decree against Khanderao as the legal representative of his father and uncle were not entitled to rateable distribution.
In the meanwhile one Gokuldas Umedram who had filed Special Suit No. 1502 of 1933 in the Court of the Subordinate Judge at Poona against Sada-shivrao and Yeshwantrao, uncle and father respectively of Khanderao, and had obtained a money decree against them, applied to execute that decree by Darkhast No. 70 of 1945 in the Court of the Civil Judge (Senior Division), Ahmednagar, against Khanderao, as the heir and legal representative of the judgment-debtors. By Ex. 29 the heirs of Gokuldas applied for rateable distribution of the amount received in Darkhast No. 43 of 1947.
2. The learned Civil Judge (Senior Division) by his order dated 16-2-1950, ordered that the proceedings in the darkhast be stayed till the decision of the Debt Adjustment Application filed in the Debt Adjustment Court at Newasa by Khanderao. He observed that if the Debt Adjustment Application was disposed of by the Debt Adjustment Court" and the darkhast was not re-transferred, the amount held- by the executing Court would be paid to the decree-holder in Darkhast No. 43 of 1947, but if the darkhast was re-transferred to the executing Court, rateable distribution would be ordered. The learned Judge accordingly ordered that "the amount held by this Court is ordered to be retained by the Court until further orders".
3. Thereafter on 17-2-1950, Ha:i:nantram (one-of the managers of Shri Laxminarayan Devasthan) applied to the executing Court stating that the-amount realised by the sale of the judgment-debtors property was lying uninvested in Court and that it may be paid to him on an undertaking that the same would be returned when ordered. The advocate for the decree-holder in Darkhast No. 70 of 1945 (filed by the legal representatives of Gokuldas) agreed that the amount may be paid as prayed, provided security was furnished by Hanmantram. The learned Civil Judge passed an order directing that the amount lying in Court be paid over to Hanmantram. Ultimately the Debt Adjustment Court held that Khanderao was not a debtor within the meaning of the Bombay Agricultural Debtors Relief Act, and returned the papers to the executing Court.
An application was then submitted by the decree-holders in Darkhast No. 70 of 1945 on 4-10-1949, for calling upon the heirs of Hanmantram (Hanmantram having since died) to deposit the-amount in Court as undertaken by Hanmantram. On 21-7-1951, the Court passed an order directing. Hanmantrams heirs and the surety to deposit the amount withdrawn by Hanmantram. The amount was accordingly deposited as ordered by the Court. Thereafter on 3-10-1951, the learned Judge ordered that the amount lying in Court be rateably distributed between the decree-holders in the two darkhasts. It appears that the order dated 3-10-1951, was passed without hearing the parties. The darkhastdars in Darkhast No. 43 of 1947 applied for vacating the order and for hearing arguments on the claim made by the darkhastdars in Darkhast No. 70 of 1945. The application was, however, rejected. Against that order the present appeal has been preferred by the managers of Shri Laxminarayan Devasthan.
4. The dispute in this appeal arises between the decree-hol
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.