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1942 Supreme(Mad) 303

IN THE HIGH COURT OF MADRAS
Happell, J.
Chittoori Venkataraju and Ors.
Versus
Chekka Suryanarayana Receiver to the estate of the late Rao Bahadur Pydah Venkatachalapathi Garu
Decided On : 27.08.1942

A suit under Order 21, rule 63 is in the nature of an appeal from the order passed on the claim petition, and the reversal of an order or decree automatically entitles the successful party to restitution of the costs paid to the unsuccessful party in the earlier proceeding.

Headnote:

Restitution - Civil Procedure Code - Section 144, Order 21 Rule 63 - Summary

Fact of the Case:

The respondent filed suits under Order 21, rule 63 of the Civil Procedure Code to set aside the orders on the claim petitions. The suits were decreed in his favor, and he filed a petition for restitution of costs paid to the appellants in obedience to the orders passed on the claim petitions.

Finding of the Court:

The court held that the respondent was entitled to restitution of the costs of the claim petition which he had paid to the appellants, as the orders passed on the claim petitions were reversed by the decrees in the suits.

Issues: The issues included the interpretation of Order 21, rule 63 and Section 144 of the Civil Procedure Code, and the applicability of limitation in the application for restitution.

Ratio Decidendi: The court interpreted that a suit under Order 21, rule 63 is in the nature of an appeal from the order passed on the claim petition, and the reversal of an order or decree automatically entitles the successful party to restitution of the costs paid to the unsuccessful party in the earlier proceeding. The starting point of limitation for the application for restitution is the date of the decree in the suit.

Final Decision: The appeal was dismissed, and the respondent was entitled to restitution of the costs of the claim petition paid to the appellants.

JUDGMENT

Happell, J.

1. The appellants in this Civil Miscellaneous Appeal obtained a decree in O.S. No. 58 of 1933 and in execution of that decree attached two items of movable properties. In respect of these properties, the receiver to the estate of Pydah Venkatachalapathi filed two claim petitions, E.A. Nos. 945 and 1152 of 1933. Both these petitions were dismissed with costs on the 5th March, 1934, and the receiver who is the respondent in this appeal paid their costs to the appellants. He, however, filed suits under Order 21, rule 63 of the Civil Procedure Code, O.S. Nos. 150 and 149 of 1934, to have the orders on the claim petitions set aside. These suits were decreed in his favour and appeals by the present appellants failed. The decrees in the suits which were confirmed by the appellate Court set aside the orders on the claim petitions and gave the respondent the declaration of title for which he prayed and the costs of the suits. No mention, however, was made in the decrees of the costs incurred in the claim petitions. The respondent, however, filed the petition, E.P. No. 386 of 1939, out of which this appeal arises for restitution of the costs paid by him to the appellants in obedience to the orders passed on the claim petitions. The learned Subordinate Judge of Coconada allowed this petition. He observed that Section 144 of the Civil Procedure Code, was not confined to cases, where the orders are reversed "only in further stages like appeal, etc., but that it applies to any reversal." He observed also that "the scheme of the provisions under Order 21, rule 58 and rule 63 is that when once a suit under Order 21, rule 63 succeeds, it must be taken automatically that the claim order is vacated. So viewed, the petitioner would be entitled to restitution the moment his suit succeeds".

2. It is argued for the appellants that the order of the learned Subordinate Judge is wrong since a suit under Order 21, rule 63 is a proceeding independent of the claim petitions and, if successful, does not in substance set aside the order on the claim petition concerned, although in form the decree may be expressed to be that the order on the claim petition is set aside. Order 21, rule 63 reads:

Where a claim or an objection is preferred, the party against whom an order is made may institute a suit to establish the right which he claims to the property in dispute, but, subject to the result of such suit, if any, the order shall be conclusive.

For the interpretation he puts on the order, learned Counsel for the appellant relies on a decision of Devadoss, J., sitting alone, reported in Raman Nair v. Raman Menon (1924) 20 L.W. 557. The suit with which the second appeal decided by Devadoss, J., was concerned had been brought under Order 21, rule 63 of the Civil Procedure Code and provided that the costs incurred by the plaintiff in the claim proceeding should be paid to him. Devadoss, J., allowed the appeal, holding that a decree in a suit under Order 21, rule 63 could not provide for costs incurred in the claim petition for the reason that the suit contemplated by rule 63 is a suit for a declaration of the claimants right and the rule does not say that the claim order will be vacated by reason of the judgment in the suit. It is true that Order 21, rule 63 does not provide expressly that the claim order shall be vacated by reason of the judgment in the suit but, with great respect that, in our opinion, is the effect of the order. A suit under Order 21, rule 63 is not brought without reference to the order on the claim petition, and although what the rule states is that "subject to the result of such suit, the order shall be conclusive", it is clear that, conversely, if the suit ends in favour of the party preferring it the order ceases to be conclusive. It is not therefore easy to see what is the difference between an order on a claim petition which ceases to be conclusive by virtue of the judgment in a suit brought under Order 21, rule 63 and an





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