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1951 Supreme(Pat) 63

PATNA HIGH COURT
Reuben, Imam and V.Ramaswami JJ.
Liakat Mian
Versus
Padampat Singhania
Appeal From Appellate Decree No. 537 of 1950 ;
Decided On : APRIL 18, 1951

A stay order passed by an appellate court operates from the moment it is passed and deprives the executing court of jurisdiction to execute the decree.

Headnote:

O. 41, R. 5, CIVIL P. C. - STAY OF EXECUTION - EFFECT - JURISDICTION OF EXECUTING COURT - SUPERSEDED FROM MOMENT OF PASSING STAY ORDER BY APPELLATE COURT.

Fact of the Case:

Appellant filed an appeal against a decree for recovery of possession of certain property. On the same day, an order for ad interim stay of delivery of possession was passed by the appellate court. The order was communicated to the wrong court, leading to the delivery of possession to the decree holder in June 1950. The appellant challenged the delivery of possession, arguing that the stay order operated from the moment it was passed and deprived the executing court of jurisdiction.

Finding of the Court:

The court held that the stay order passed by the appellate court operated from the moment it was passed and deprived the executing court of jurisdiction to execute the decree. The court reasoned that the rule O. 41, R. 5 of the Civil Procedure Code is absolute in its terms and does not provide for any communication of the order to the executing court. The court further held that the operation of the stay order is not dependent on its communication to the executing court or the party intended to be affected by it.

Issues: 1. Whether the stay order passed by the appellate court operated from the moment it was passed or only after communication to the executing court? 2. Whether the executing court had jurisdiction to deliver possession to the decree holder after the passing of the stay order?

Ratio Decidendi: 1. The court interpreted O. 41, R. 5 of the Civil Procedure Code and held that the rule is absolute in its terms and does not provide for any communication of the stay order to the executing court. The court reasoned that the operation of the stay order is not dependent on its communication to the executing court or the party intended to be affected by it. 2. The court held that the executing court had no jurisdiction to deliver possession to the decree holder after the passing of the stay order. The court reasoned that the stay order deprived the executing court of jurisdiction to execute the decree from the moment it was passed.

Final Decision: The court set aside the delivery of possession made to the decree holder and directed the appellant to remain in possession of the property subject to making a deposit of Rs. 400 as security for costs and compensation recoverable by the respondent in case of his success in the appeal.

Judgment

ReuBen, J.

1. The case has been refd. to a Special Bench for a decision as to when an order under O. 41, E. 5, Civil P. 0. passed by an appellate Ct. becomes operative, whether it operates from the moment when it is passed or only after communication to the Subordinate Ct.

2. This appeal, which is directed against a decree for the recovery of possession of certain property, was filed on 13-4 1950. On the 14th of April by an order under 0. 41, B. 5, an order for ad interim stay of delivery of possession was passed. The necessary requisites were filed on the 17th of April & the order was issued for communication to the subordinate Ct. By some mischance the appllt. made an error in naming the subordinate Ct. & the communication was addressed to the Permanent Munsif of Araria instead of the Addl. Munsif of Araria. It reached the Permanent Munsif on the 25th of April & was given effect to in execution case No. 8 of 1949 of his Ct. instead of being given effect to in the execution case of the same number in the Ct. of the Addl. Munsif in which the decree under appeal was being executed. In consequence, the Addl. Munsif delivered possession of the property in suit to the D. H. in June 1950.

3. The question at issue has come under the consideration of the Cts. in several reported decisions. The earliest of these is Bessesswari v. Horro Sundar, 1 c. W. N. 226, in which property was sold in execution of a decree & purchased by a third party subsequent to a stay order u/s- 545, Civil P. C. of 1882. Their Lordships held that the stay order was in the nature of a prohibition to the executing Ct. & would, therefore, take effect only when communicated. The executing Ct. therefore, had jurisdiction to sell the property & the sale was a valid one. Exactly the opposite- view was taken by Woodroffe & Mookerjee JJ. in Hukum Chand V/s. Kamalanand, 33 cal. 927: (3 C. L. J. 67), in which the decree, as here, was for recovery of possession. While distinguishing the case of Bessesswari, (1 c. w. N. 226), on that ground that the question arose between the J. D. & a third party purchaser, their Lordships went on expressly to dissent from the decision in that case. They agreed that a prohibitory order, for instance an injunction, will operate as a prohibition only from the moment of communication but took the view that an order of stay is not such an order &, from the moment when it is made, suspends the power of the subordinate Ct. to carry on further execution proceedings. In Muthukumarasami V/s. Kuppusami, 33 Mad. 74: (3 I. c. S2), a case of an execution sale, their Lordships folld. the case of Bessesswari, (1.C.W.N. 226), in preference to that of Hukum Chand Kamalanand, (33 cal. 927 : 3 C. L. J. 67), but without any discussion. In Bamanathan V. Arunachellam, 38 Mad. 766 : (A. I. E. (1) 1914 Mad. 26l), another case of execution sale, Sadasiva. Ayyar J. expressly differed from the decision in Muthukumarsami Bowthers case, (33 Mad. 74 :. 3 I. C. 82), and expressed the view that unless otherwise provided in the order itself the order operates immediately& suspends from that moment the jurisdiction of the Subordinate Ct. to proceed with the execution of the decree under appeal. The facts of the case were that a telegram was sent to the Vakil at Madura informing him of the order of stay & the Subordinate Ct. of Ramnad was moved by a petn. accompanied by an affidavit to stay the sale but it refused to act on the telegram in the absence of an official communication,. Spencer J. made this a ground for distinguishing the case of Muthukumarsami Bowther, (33 Mad. 74 : 3 I. c 82). In his opinion, the Subordinate. Ct. acted injudiciously in not postponing the sale in order to ascertain the truth of the information received & he treated this as a reason for setting aside the sale. At the same time he observed that there was much force in the observation of Woodroffe J. in Hukum Chand V/s. Kamalanand, (33 cal. 927 : 3 c. L. J. 67) :

"That there is no reason




























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