1922 Supreme(Mad) 136
IN THE HIGH COURT OF MARAS
C Trotter
A. Nataraja Mudaliar
Versus
D.P. Ramaswamy Mudaliar And Ors.
Decided On : 21 April, 1922
The central legal point established in the judgment is the interpretation of Section 66 of the Code of Civil Procedure, 1908, regarding the prohibition on maintaining suits against certified purchasers and the implications for purchases made on behalf of the plaintiff.
Headnote:
benami transaction - joint family property - Code of Civil Procedure, 1908, Section 66 - Civil Procedure Code of 1882, Section 317 - Madras view vs. Allahabad view - interpretation of Section 66 - prohibition on maintaining suit against certified purchaser - purchase made on behalf of plaintiff - proviso to Section 66 - interpretation of proviso - appeal dismissed with costs
Fact of the Case:
The first plaintiff's father bought a property in Madras in the name of the sixth defendant using joint family money without court permission. The plaintiffs brought a suit for partition, claiming the property in the name of the sixth defendant to be part of the joint family property. The sixth defendant resisted the claim, arguing that Section 66 of the Code of Civil Procedure, 1908, prevented the plaintiffs from recovering the property from him.
Finding of the Court:
The court found that the first plaintiff's father had indeed bought the property in the name of the sixth defendant to conceal the fraud on the court. The court also held that the interpretation of Section 66 was crucial to the case and ultimately dismissed the appeal with costs.
Issues: The main issues revolved around the interpretation of Section 66 of the Code of Civil Procedure, 1908, and whether the purchase made in the name of the sixth defendant could be recovered by the plaintiffs in the partition suit.
Ratio Decidendi: The court analyzed the historical context of Section 66, the conflicting views between the Madras and Allahabad courts, and the implications of the proviso to Section 66. The court ultimately interpreted that a managing member buying property using family funds cannot be said to buy on behalf of other family members within the meaning of Section 66.
Final Decision: The court dismissed the appeal, upholding the interpretation of Section 66 and ordering costs to be paid by the plaintiffs and defendants 7 to 9.
Walter Salis Schwabe Kt., K.C., C.J.
1. The first plaintiffs father having a decree against the owners of some house property in Madras, brought that property to sale in execution. Without obtaining the leave of the court to bid, he bought it himself using for that purpose the joint family money, and, in order to conceal this fraud on the court, he bought it in the name of the sixth defendant. This is the case of the plaintiffs, and of some of the defendants. That has been found by the learned judge, who saw the witnesses and examined the facts obviously with the greatest care, to be the truth, and I can find no ground for interfering with that finding of fact.
2. The first plaintiff with his sons, the second and the third plaintiffs, joining as defendants the other members of the joint family has brought this suit for partition and he claims that part of the joint family property to be brought in and divided in the partition consists of this house property standing in the name of the sixth defendant and he brings in the sixth defendant to have that case decided. The sixth defendant resists that claim setting up, firstly, as a fact that the plaintiffs case is not true at all, that he never was a benamidar or nominee of the first plaintiffs father which, as I have pointed out, has not been accepted as the fact, and, secondly he says, that in law although he is not entitled to this property, it is not open to the plaintiffs in this case to recover it from him by reason of Section 66 of the Code of Civil Procedure, 1908; and it is on the proper interpretation of that section, and that section only, that this case must turn.
3. Before the passing of that section there was in existence Section 317 of the Civil Procedure Code of 1882. The terms of that section were "No suit shall be maintained against the certified purchaser (which means the certified purchaser who has purchased the property at Court-auction) on the ground that the purchase was made on behalf of any other person or on behalf of some one through whom such other person claims." There was very soon a conflict of authorities as to the meaning of that section and I think it may be stated that the Madras view, established first of all in Natesa Aiyar v. Venkatramayya (1882) I.L.R. 6 Mad. 135, and followed in Krishna Aiyar v. Raghaviyan (1899) 9 M.L.J. 298 and Minakshi Ammal v. Kalianaraina Iyer (1897) I.L.R. 20 Mad. 349 : 7 M.L.J. 213 was that there was nothing in that section to prevent a member of a joint family from recovering the property which had been bought out of the joint family money in the name of some person benami at a court-auction by the managing member of the family he himself being the decree-holder. A different view was taken in Allahabad and the matter came before the Privy Council in Suraj Narain v. Ratan Lal (1917) I.L.R. 40 All. 159 : 33 M.L.J. 180 (P.C.) and, in that case there is no doubt that the Privy Council supported the view contrary to the view taken in Madras though it is worth observing that there seems to have been very little discussion on the matter and the Madras cases do not seem to have been cited. If, however, the matter stood there, I should find great difficulty in distinguishing that case as was done by the learned judge below but that case was tried when the Civil Procedure Code of 1882 was in operation and it is a decision under Section 317 of that Code. After that case, or rather after the first hearing of that case. Section 66 of the Civil Procedure Code of 1908 was introduced, and that altered the law very materially, because now the only prohibition is contained in these words: "No suit shall be maintained against any person claiming title under a purchase certified by the court in such manner as may be prescribed on the ground that the purchase was made on behalf of the plaintiff or on behalf of some one through whom the plaintiff claims." The obvious alteration is that now the penal provision is confined to purchases