IN THE HIGH COURT OF MADRAS
J.P. Rego
Versus
Ananthamathi and Ors.
Decided On : 09.01.1942
restitution - mortgage suit - Order 21, Rule 89 - Section 144 of the Code of Civil Procedure
Fact of the Case:
The appellant received a sum of Rs. 9,000 in execution of a decree, which was later found to be incorrect. The respondents sought restitution of the sum deposited by them under Order 21, Rule 89, with interest.
Finding of the Court:
The Court found that the appellant, although not a party to the decree, could be compelled to make restitution under Section 144 of the Code of Civil Procedure. The Court set aside the lower court's order and remanded the case for determination on merits.
Issues: The main issue was whether the appellant, not being a party to the decree, could be compelled to make restitution of the money paid to him.
Ratio Decidendi: The Court held that the inherent jurisdiction vested in the Court under Section 144 and Section 151 of the Code of Civil Procedure could be invoked to order restitution, even in cases not strictly falling within the scope of Section 144. The Court emphasized that the exercise of inherent powers should depend on the facts of each case.
Final Decision: The Court set aside the lower court's order and remanded the case for determination on merits in accordance with law.
1. The question in this appeal relates to the restitution by the appellant of a sum of Rs. 9,000 with interest to respondents 1 to 3. The sum in question was paid to him in these circumstances. O.S. No. 42 of 1931, on the file of the Subordinate Judge of South Kanara was a suit to enforce a mortgage executed by the first defendant in favour of the plaintiff. The second and third defendants in the suit belonged to the same joint family as the first defendant, but relief was sought by the plaintiff against the first defendant alone on the ground that the property mortgaged was the self-acquired property of the first defendant and that he had taken the amount advanced under the mortgage for his own purposes. The contention of the defendants, was that the property was family property and that there was no family necessity for the loan secured by the mortgage of it. The suit was decreed for the plaintiff on 10th August, 1932, and in execution of his decree he brought the property to sale and purchased it himself for Rs. 7,200. The defendants, however, deposited the requisite sum under the provisions of Order 21, Rule 89, a sum which, with incidental charges amounted to Rs. 11,470-10-5, and the sale was set aside. The appellant held a decree (in O.S. No. 71 of 1930), against the plaintiff in O.S. No. 42 of 1931 and in R.E.P. No. 126 of 1935, he applied for the attachment of Rs. 9,000 out of the sum of Rs. 11,470 in Court. Attachment was ordered. The appellant then applied for the transfer of the attached sum of Rs. 9,000 to his execution petition in O.S. No. 71 of 1930. The transfer was ordered on 7th August, 1935, and on the same date payment of this sum of Rs. 9,000 to him was made.
2. Meanwhile, an appeal (A.S. No. 21 of 1933), was pending in the High Court against the decree in O.S. No. 42 of 1931. Judgment in this appeal was delivered on 9th November, 1937. It was held that the mortgaged property was family property, and, as it had never been the plaintiffs case that the mortgage was for purposes binding on the family, the result was that the suit was dismissed. Relying, therefore, on the decree of the High Court appellants 1 to 3 in O.S. No. 42 of .1931, applied as petitioners in E.P. No. 170 of 1938, the petition out of which the present appeal arises, for restitution of the sum of Rs. 11,470 deposited by them under the provisions of Order 21, Rule 89, with interest. They prayed (i) for the recovery of the whole amount of Rs. 11,470 from the plaintiff in O.S. No. 42 of 1931, with interest at six per cent. from 5th April, 1935 till 5th September, 1938 and (ii) for the recovery of Rs. 9,000 from the present appellant with interest at six per cent. from 26th July, 1935 to 5th September, 1938. The learned Subordinate Judge directed that the plaintiff should refund a sum of Rs. 2,470-10-5 with interest at 5 per cent. from 5th April, 1935, until the date of payment, and that the present appellant should refund the sum of Rs. 9,000 with interest at 5 per cent. from 9th August, 1935 until the date of payment. The appeal now under consideration is by the decree-holder in O.S. No. 71 of 1930 to whom the sum of Its. 9,000 was paid. Defendants 1 to 3 in O.S. No. 42 of 1931, are respondents 1 to 3 in the appeal, and the plaintiff in that suit is the fourth respondent. They will hereinafter be referred to by the designation of respondents 1 to 4,, respectively.
3. We have not received in the determination of this appeal any assistance from the order of the learned Subordinate Judge for the reason that his consideration of the petition has proceeded on a mistake of fact which is fundamental in regard to the issue involved in the case. In paragraph 5 of his order he states that the appellant attached the decree in O.S. No. 42 of 1941. This is not correct. The appellant did not attach the decree. He attached part of the sum deposited under Order 21, Rule 89, which, if the attachment had not been made, would have been payable to the 4th
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