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1934 Supreme(Mad) 161

IN THE HIGH COURT OF MADRAS
Varadachariar, J.
Ayyappa Naicker
Versus
Thayammal and Ors.
Decided On : 02.05.1934

The court's decision was based on the interpretation of the language of the document in question in light of the circumstances, and the application of legal principles and precedents to support its interpretation.

Headnote:

charge - Property Dispute - Order 20, Rule 11(2) of the Civil Procedure Code - Ex. F, the document in question, provided for the continuation of the attachment and the sale of the property in the future without fresh attachment. The court interpreted the language of Ex. F in light of the circumstances and held that it did not indicate the creation of a security, but rather the continuation of the attachment already made. The court referred to various legal principles and precedents to support its interpretation.

Fact of the Case:

The plaintiff purchased the suit properties in execution of a decree. The principal question was whether a charge had been created for the amount due under the decree in order to postpone the title of another purchaser.

Finding of the Court:

The court found that the document in question did not indicate the creation of a security, but rather the continuation of the attachment already made.

Issues: The main issue was whether a charge had been created for the amount due under the decree to postpone the title of the purchaser in another case.

Ratio Decidendi: The court interpreted the language of the document in question in light of the circumstances and held that it did not indicate the creation of a security, but rather the continuation of the attachment already made.

Final Decision: The second appeal failed and was dismissed with costs.

JUDGMENT

Varadachariar, J.

1. The appellant-plaintiff purchased the suit properties in 1924 in execution of the decree in O.S. No. 48 of 1915 on the file of the Sub-Court of Tuticorin. The defendant was the decree-holder in O.S. No. 55 of 1922 on the file of the Additional Sub-Court of Tinnevelly, and himself became the purchaser of the properties in execution in March 1926. That suit (O.S. No. 55 of 1922) had been instituted on a mortgage (Ex. L) executed some time in 1917; but, prior to the date of Ex. L, the decree-holder in O.S. No. 48 of 1915 had entered into an arrangement with the mortgagor who was also the judgment-debtor in O.S. No. 48 of 1915 and that arrangement is embodied in Ex. F. The principal question for decision in this second appeal is whether, under Ex. F a charge had been created for the amount due under the decree in O.S. No. 48 of 1915 so as to postpone the title of the purchaser in O.S. No. 55 of 1922 to that of the purchaser in execution of the decree in O.S. No. 48 of 1915.

2. To understand the true effect of Ex. F it is necessary to state a few facts that led up to it. The decree in O.S. No. 48 of 1915 was for a considerable sum of money out of which some portion had been paid and for the balance execution proceedings were started by E.P. No. 102 of 1916 (Ex. E). In the course of that execution, several properties belonging to the judgment-debtor were attached and were about to be brought to sale. There was another decree in the discharge of which the decree-holder in O.S. No. 48 of 1915 as well as the judgment-debtor were interested and the decree-holder desired to. enable the judgment-debtor to discharge that decree also. It was therefore arranged that some of the properties which had been attached under Ex. E-1, in O.S. No. 48 of 1915, should be released from attachment and the judgment-debtor should also be given time to pay up the balance due in O.S. No. 48 of 1915 by four instalments. As is natural in the circumstances the decree-holder was anxious to safeguard his position by retaining a hold on the properties which were not to be released from attachment. The arrangement, so far as it related to O.S. No. 48 of 1915, is provided for in Clauses 4 and 5, Ex. P. To complete the narrative it is only necessary to add that Ex. E was presented to the Court as a razinama entered into by both parties during the execution proceedings and the Court granted permission to compromise the suit and stated that a decree will be passed in terms of this compromise. It is not possible to say from the record whether a revised decree in these terms was in fact drawn up or not, but some of the execution petitions filed in the case refer to some such decree. I presume that this order of Court must have been really made under Order 20, Rule 11, Sub-clause (2), Civil P.C. as otherwise the terms of the original decree cannot be varied by the substitution of the provision for instalments.

3. On the basis of the razinama decree, applications for execution were made from time to time. It is sufficient to mention Exs. I, II, K, K-I and K-2, K-2 being the last of the applications under which the properties were actually brought to sale and purchased by the plaintiff. Ex. 1 was only for one instalment, and as that amount was paid soon after the execution petition was filed it was found unnecessary to proceed further with that petition. But Exs. II, K and K-1, were filed in respect of the remaining two instalments and on both these occasions the proceedings were discontinued merely because the decree-holder did not want to pursue the matter and not because his claim was satisfied. This will have a material bearing upon one of the questions raised in the case, namely that covered by issue 2 as to the cessation of the attachment. Order 20, Rule 11(2) of the Code provides that when a judgment-debtor is given an indulgence by way of instalment payments, the Court may grant that indulgence on such terms as to attachment of property or






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