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1938 Supreme(Cal) 66

CALCUTTA HIGH COURT
Ameer Ali, J.
Baijnath Tamakuwalla - Appellant
Versus
Tormull - Respondent
Decided On : 02-02-1938

The main legal point established in the judgment is the applicability of Act 7 of 1936 to High Court decrees, the jurisdiction of the Debt Conciliation Board, and the automatic stay of proceedings in other courts upon filing a petition under section 8.

Headnote:

Stay - Jurisdiction of Debt Conciliation Board - Act 7 of 1936 - Sections 8, 17, 20, 34, 35 - The court discussed the application for stay under Act 7 of 1936, the jurisdiction of the Debt Conciliation Board, and the interpretation of various sections including the power of the Board to decide its own jurisdiction, the effect of filing a petition under section 8, and the automatic stay of proceedings in other courts.

Fact of the Case:

The defendant was held liable for a sum of Rs. 7000 to the plaintiff as a result of certain transactions. The defendant sought a stay of execution in the Dumka Court under Act 7 of 1936.

Finding of the Court:

The court held that the Act applied to High Court decrees and that the execution in the Dumka Court should be stayed as per the provisions of the Act. The court also discussed the jurisdiction of the Debt Conciliation Board and the effect of filing a petition under section 8.

Issues: The issues included the applicability of the Act to High Court decrees, the jurisdiction of the Debt Conciliation Board, and the interpretation of sections 8, 17, 20, 34, and 35 of Act 7 of 1936.

Ratio Decidendi: The court ruled that the Act applied to High Court decrees, and the Board had the power to decide its own jurisdiction. It also held that the filing of a petition under section 8 automatically stayed proceedings in other courts.

Final Decision: The court ordered a note on the proceedings by the Registrar that a notice had been received under section 34, staying the execution proceedings, and that a copy of this note should be sent to the executing Court. The costs were to be added to the claim of the decree-holder.

JUDGMENT

Ameer Ali, J. - The applicant before me, Tormull Marwari, the defendant in suit No. 722 of 1936, was liable for the sum of some Rs. 7000 to the plaintiff in that suit, Baijnath Tamakuwalla, as a result of certain transactions in piece goods. The plaintiff obtained a decree in the High Court, a portion was paid and there remained a balance of Rs. 1,742-3.0. Execution was taken out in this Court and the decree was sent for execution to Dumka in Bihar where the defendant has real property. Thereupon, after attachment but before sale, a notice was received by this Court u/s 34 of Act 7 of 1936 and the effect of this notice was communicated to the Dumka Court. This notice of motion was taken out by the defendant and judgment-debtor, Tormull, for an order that the Sub-divisional Officer, Rajwabal, that is Dumka, be directed to stay further proceedings in Money Execution Case No. 11 of 1937, that an order be issued to the Registrar "to recall the copies of the decree" etc., and for further relief in the shape of an injunction and so forth. Substantially, it is an application for stay. Now the respondent to this application, the decree-holder represented by Mr. K. P. Khaitan, argued the following points. No objection was made on the technical question of procedure. The first point argued was that the Act did not apply to the High Court decrees. There is no definition of Court" in the Act, and Mr. Khaitan relied, although this is not his principal point, on a decision of this Court on the appellate side, to the effect that decrees of the High Court of Calcutta are not affected by the Act. Mr. Panckridge J. took the view that they were, and I am of the same opinion. I cannot find in this Act anything which would legitimately exclude decrees of the High Court or other Courts not within the scheduled districts, from the effect of the Act. Mr. Khaitan's second point is a technical one, namely, that the execution having now gone to the Dumka Court which is outside Bengal, the Act cannot affect it. I agree that the Act cannot affect anything outside the province. Mr. Khaitan then argued, on various cases, that this Court having parted with the decree, the proceedings in the Dumka Court must be regarded as independent, that this Court has parted with control over them and should not interfere.

2. My own view is this that if under this Act, execution of the decree is either automatically stayed or to be stayed by an order, this Court should take such steps as are necessary to make that order or result effective. I do not think it is even necessary to recall the order but in the absence of any machinery or indication as to what should be done, it would probably be sufficient to record here that the execution has been stayed and inform the Dumka Court to that effect. The real question is one of jurisdiction. Has this Court jurisdiction to question the jurisdiction of the Board at Malda to deal with this particular case. There is, again, a minor question of procedure. If there is such a right or power in the High Court, when should it be invoked? Should it be invoked by way of mandamus by way of a declaratory suit, or, as here, by way of an application for stay? Should it be invoked after a decision by the Board as to its jurisdiction, or irrespective of such decision? Those points-have not been discussed and no technical objection has been taken to the matter being gone into by me in this application. I go therefore to the question of law. There have been decisions in this Court, both on the appellate side and on the Original Side, namely that of Panckridge J., to the effect that the Debt Conciliation Boards are vested with final and exclusive jurisdiction to decide their own jurisdiction, to decide in other words whether a particular person, either applying under the Act or being applied against under the Act, is what is called in the Act a "debtor", but should much more properly be called an agriculturist. It is quite true however that

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