1958 Supreme(Ker) 13
Judges : VARADARAJA IYENGAR
Meera Sahib Labba Mohamed Ali - Appellant
Versus
Meeravu Hajee - Respondent
Case No : A. No. 5 of 1956 (K)
Decided On : 01/28/1958
Advocates Appeared :
N. Viswanatha Iyer; For Appellant M. Krishnan Nair; For Respondent
The main legal point established in the judgment is the retrospective effect of procedural rules and the exercise of inherent jurisdiction by the court in restoring petitions for disposal on the merits.
Headnote:
Decree-holder-auction-purchaser - Execution of Decree - Order XXI, R.87, Travancore Civil Procedure Code - Order XXI, R.90 of the Indian Civil Procedure Code - Order IX, R.13 - Order XXI, R.104 and 105 - Restoration Application - Retrospective Effect of Rules - Inherent Jurisdiction
Fact of the Case:
The matter arises in execution of the decree, where the decree-holder-auction-purchaser, appellant, seeks to set aside the court sale on ground of fraud and material irregularity. The respondent, who had purchased the properties in execution of his own money decree, also filed a similar application. The executing court dismissed both the petitions, and the confirmation of the sale followed. The respondent applied for restoration of his petition, and the executing court found the circumstances suspicious and restored the petition for disposal on the merits.
Finding of the Court:
The court found that the application of R.104 and 105 of Order XXI by the court below was justified, and the appellant had no cause to complain. The court also held that the appellant's appeal before the lower court against the order of restoration was not sustainable.
Issues: The issues involved the retrospective effect of the rules, the finality of the order of dismissal, and the exercise of inherent jurisdiction by the executing court.
Ratio Decidendi: The court held that the rules could have retrospective effect and would govern all pending proceedings. It also emphasized the exercise of inherent jurisdiction by the court in restoring the petition for disposal on the merits.
Final Decision: The second appeal failed and was dismissed with costs.
1. The matter arises in execution of the decree and the decree-holder-auction-purchaser is the appellant.
2. The decree in the case was on foot of a hypothecation bond executed by the defendants 1 to 3. In execution thereof, items 1 and 3 which belonged to the 2nd defendant-judgment-debtor were sold in execution on 30-8-1950 when they were purchased by the plaintiff-decree-holder, in full satisfaction of the decree. Within 30 days of the sale, viz. on 28-9-1950 the 2nd defendant applied under Order XXI, R.87, Travancore Civil Procedure Code corresponding to Order XXI, R.90 of the Indian Civil Procedure Code, to set aside the court sale on ground of fraud and material irregularity. On the next day 29-9-1950, the respondent who had purchased the properties in execution of his own money decree filed similar application. These applications were however not proceeded with in view to a stay order obtained by the 2nd defendant in C. M. A. 84 of 1950, taken by him before the District Court against an order under Order IX, R.13, refusing to set aside the ex-parte decree as against him. The District Court, by order dated 5-2-1951, allowed the C.M. appeal on condition that a sum of Rs. 15 was deposited by the 2nd defendant towards the costs of the plaintiff. The 2nd defendant did not nuke the deposit as directed and so the C. M. Appeal was dismissed on 28-2-1951 This order was not communicated to the executing court. But about five months later, on 23-7-1951, the 2nd defendant filed a memo in that court stating that the C. M. Appeal stood dismissed. The executing court thereupon took up the petitions to set aside the sale filed by the 2nd defendant and the respondent and as the first step towards their trial called for payment of process fees for issue of notice to the 1st defendant. And because default was committed in spite of successive postings, the court dismissed both the petitions on 1-9-1951. The confirmation of the sale soon followed and the decree-holder took delivery from the 2nd defendant on 19-11-1951. The 2nd defendant acquiesced in these proceedings but the respondent on 6-12-1951 applied to the court for restoration back to the file, of his petition to set aside the sale, on the plea that he had no notice of the earlier postings and there was really no default on his part. The executing court found that the circumstances under which the respondent's petition had been dismissed were rather suspicious and so passed order restoring the petition on 11-10-1954. In appeal before the District Court, the decree-holder-auction-purchaser took the point that the petition for restoration filed by the respondent on 6-12-1951 was not maintainable in the absence of any provision therefor in the Indian Civil Procedure Code which had come into force by 1-4-1951 even before such petition was filed. The District Court however held that with the change in the procedure introduced before the petition was disposed of, viz., on 14-5-1952, by the local amendment under Order XXI, R.104 and 105 in the First schedule of the Indian Civil Procedure Code, the restoration application could well be entertained, the delay in the filing thereof being also condoned. The appeal was accordingly dismissed. Hence this second appeal by the decree-holder-auction-purchaser as abovesaid.
3. It will be convenient at this stage before dealing with the contentions on either side, to notice the changes in the law bearing on the matter, as and when they took place. In the Civil Procedure Code in force in the Travancore jurisdiction wherefrom the case arose, there was to begin with, no provision in Order XXI (dealing with execution of decrees and orders) empowering the court to apply the provisions of Order IX (dealing with appearance of parties and consequence of non-appearance). And the courts also held the view, along with most other High Courts that s.105 (corresponding to s.141, Indian Civil Procedure Code) could not enable such application. At the same t