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1918 Supreme(Mad) 273

IN THE HIGH COURT OF MARAS
S Aiyar, Napier
Patrachariar
Versus
T.R.M.S. Ramaswami Chettiar
Decided On : 25 September, 1918

Section 66 of the Code of Civil Procedure does not affect the title of persons otherwise beneficially interested in the purchase.

Headnote:

Section 66 - Code of Civil Procedure - 19 W.R. 356, 12 B.L.R. 317, Sar. P.C.J. 253, 30 Ind. Cas. 265, 37 A. 545, 13 A.L.J. 999, 29 M.L.J. 329, 18 M.L.T. 203, 9 C.W.N. 1175, 22 C.L.J. 508, 1915 M.W.N. 713, 2 L.W. 837, 17 Bom.L.R. 998, 42 I.A. 177 - The court discussed the interpretation of Section 66 of the Code of Civil Procedure and its application in cases of benami purchases at execution sales. The court referred to previous decisions and concluded that the section does not affect the title of persons otherwise beneficially interested in the purchase.

Fact of the Case:

The 1st defendant, who was the paid agent of the plaintiff, purchased a house in his own name with his master's money. The plaintiff later dismissed the 1st defendant and brought a suit to eject him from the house.

Finding of the Court:

The court found that the plaintiff could rely on certain legal relations between himself and the certified purchaser to establish legal claims in favor of the plaintiff over the property purchased.

Issues: The main issue was whether Section 66 of the Code of Civil Procedure was a bar to the suit brought by the plaintiff to eject the 1st defendant from the purchased house.

Ratio Decidendi: The court concluded that the section does not affect the title of persons otherwise beneficially interested in the purchase and that the plaintiff could rely on certain legal relations to establish legal claims over the property.

Final Decision: The court dismissed the second appeal with costs.

JUDGMENT

Sadasiva Aiyar, J.

1. The 1st defendant is the appellant. The facts found are that he was the paid agent of the plaintiff Ramaswami Chetti in the year 1911, that the plaintiff obtained a decree against the judgment-debtor to whom the plaint house belonged, and that in execution of that decree the plaint house was sold and purchased by the 1st defendant with his masters money in his hands and for the benefit of his master (the plaintiff) though without the knowledge of his master. The sale certificate was issued to the 1st defendant and he got delivery for his master in 1912. The plaintiff afterwards dismissed the 1st defendant from his service. Till such dismissal the 1st defendants intention was to hold possession of the house for his master and the master adopted and ratified the purchase. On his dismissal he refused to vacate for the first time and then this suit was brought to eject him. The legal defence set up by the 1st defendant (appellant before us) is that Section 66 (1) of the Code of Civil Procedure is a bar to the suit. That section no doubt is very widely worded. It says: ".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." If the section has to be construed in-an absolutely literal way, I think there is very great force in the contention of the appellant, because on such construction, the plaintiff cannot succeed in this suit except on the ground that the purchase by the 1st defendant was made by him on behalf of the plaintiff as plaintiffs agent.

2. The question, however, seems to be concluded by authority. In Bodh Singh Doodhoona v. Guneschunder Sen 19 W.R. 356 : 12 B.L.R. 317 : Sar. P.C.J. 253 (P.C.) their Lordships of the Privy Council had to consider the meaning of the corresponding Section 260 of Act VIII of 1859, which provided that any suit brought against the certified purchaser on the ground that the purchase was made on behalf of another person not the certified purchaser, though by agreement the name of the certified purchaser was used shall be dismissed with costs." It must be admitted that the section of Act III of 1859 just now quoted contains the words though by agreement the name of the certified purchaser was used," which do not appear in Section 317 of the Code of Civil Procedure of 1882 or in Section 66 of the present Code. In constructing the provisions of Section 260 of Act VIII of 1859, their Lordships say:

They were designed to check the practice of making what are known as benami purchases at execution sales, i.e., transactions in which A secretly purchases on his own account in the name of B. Their Lordships think that they cannot be taken to affect the rights of members of a joint Hindu family, who by the operation of law, and not by virtue of any private agreement or understanding, are entitled to treat as part of their common property an acquisition, howsoever, made, by a member of the family in his sole name, if made by the use of the family funds." Then we have a recent decision of the Privy Council reported as Ganga Sahai v. Kesri 30 Ind. Cas. 265 : 37 A. 545 : 13 A.L.J. 999 : 29 M.L.J. 329 : 18 M.L.T. 203 : 9 C.W.N. 1175 : 22 C.L.J. 508 : (1915) M.W.N. 713 : 2 L.W. 837 : 17 Bom.L.R. 998 : 42 I.A. 177 (P.C.) That was decided in a suit brought when Section 317 of Act of 1882 was in force, and in that case also their Lordships state at page 554: Page of 87 A.--Ed. "In their Lordships opinion the provisions of that section (Section 317) have no application to the present case. They were designed to create some check on the practice of making what are called benami purchases at execution sales for the benefit of judgment-debtors, and in no way affect the title of persons otherwise beneficially interested in the purchase." It is obvious, therefore, that their Lordships


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