SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1950 Supreme(Ori) 3

HIGH COURT OF ORISSA
Panigrahi And Narasimham, JJ.
MANI SAHOO AND AFTER HIM HADIBANDHU SAHOO - Appellant
Versus
LOKANATH MISRA AND ORS. - Respondent
F. A.  24  Of  1945
Decided On : JANUARY 05, 1950

Advocates Appeared:
H.SEN, L.K.DAS GUPTA, P.C.CHATTERJI, P.MISHRA, S.D.Das, S.K.RAY

A charge created by a compromise decree is not valid unless it is incorporated in the operative part of the decree and is created by a registered instrument.

Headnote:

CHARGE - CREATION - REGISTRATION - CHARGE CREATED BY COMPROMISE DECREE - NOT INCORPORATED IN OPERATIVE PART OF DECREE - NOT VALID - REGISTRATION COMPULSORY - B. AND O. PUBLIC DEMANDS RECOVERY ACT (B. AND O. ACT V OF 1939), SECS. 7, 8 (B).

Fact of the Case:

Plaintiff purchased a house in a court auction in execution of a compromise decree obtained against Gadadhar Sahu and his three brothers. Defendant 1 claimed to have purchased the entire house in a certificate sale dated 13th February 1935 in the certificate proceeding. The plaintiff relied on the fact that a charge in respect of the disputed house was created at the time of the passing of the compromise decree in M. S. NO. 127 of 34 on 30th July 1934.

Finding of the Court:

The court found that: (i) Gadadhar Sahu represented the joint family consisting of himself and his three brothers in the certificate proceeding and that consequently the entire interest of the family in the disputed house passed by the sale (ii) the charge created by the compromise between the plaintiff and Gadadhar Sahu and his brothers in M. S. no. 137 of 34 was not a valid charge because it was not created by a registered instrument nor was it incorporated in the operative part of the compromise decree; and (iii) in any case the suit was barred by limitation by virtue of Article 12, Limitation Act inasmuch as it was not brought within one year from the date on which the Collector on appeal maintained the order of the certificate officer rejecting the claim of Gadadhar's three brothers Satyabadi Sahu, Madan Sahu and Shyamsundar Sahu under Section 35, B. and O. Public demands Recovery Act.

Issues: 1. Whether a valid charge was created in favour of the plaintiff by virtue of the compromise between him and the Sahu brothers in M. S. No 127 of 1934? 2. Whether the suit was barred by limitation?

Ratio Decidendi: 1. A charge created by a compromise decree is not valid unless it is incorporated in the operative part of the decree and is created by a registered instrument. 2. The appropriate limitation period for a suit to establish the right to possession of property sold in a certificate sale under the B. and O. Public Demands Recovery Act is one year from the date of the appellate order of the Collector rejecting the appeal filed by the unsuccessful applicants under Section 35 of the Act.

Final Decision: The appeal was dismissed with costs.

NARASIMHAM, J.

( 1 ) THIS is a plaintiff's appeal against the judgment of the Additional Subordinate judge, Puri dismissing his suit for a declaration of his right in respect of twelve annas interest in a house standing on plot no. 1068 in the town of Puri and for other consequential reliefs.

( 2 ) THE said plot is within the town Khasmabal of Puri Collectorate and was settled by the Khasmahal with one Gadadhar Sahu who constructed and building thereon. One of the points agitated in the lower Court was that the house was the exclusive property of Gadadhar Sahu, But this was decided against the defendants (vide para. 7 of the lower Court's judgment) and this decision was not challenged in appeal. It may therefore be taken as well-established that the lease-hold property and the house standing on the said plot were the joint property of Gadadhar Sahu and his three brothers who admittedly were members of a Hindu joint family at all relevant times.

( 3 ) THE plaintiff is a businessman and moneylender of Cuttack town. He instituted a suit (M. S. no. 197 of 34) against Gadadhar Sahu and his three brothers for realisation of the price of the articles supplied on credit to them amounting to about Rs. 12,653-8-0. He also took out an order for attachment before judgment of some of the properties of the joint family including disputed house. But before the said order of attachment was actually served at the spot the parties came to a compromise in pursuance of which a compromise decree was passed on 30th July 1984. In the operative portion of the decree one of the terms which referred to a charge being created in favour of the plaintiff decreeholder in respect of the disputed house by way of security for payment of the compromise decretal amount was not embodied but it remained in the petition of compromise which was also attached to the decree, Subsequently, however, on 16th February 1939 the said petition appears to have been made part of the decree by an order of the Court and there is an endorsement at the end of Ex. 3 to that effect. But no evidence was led about the circumstances under which the Court passed the order on 16th February 1939 directing the compromise "petition to be part of the decree and the order itself was not proved, The learned lower Court rightly refused to take the endorsement to be sufficient to show that the compromise petition also became part of the decree. The judgment-debtors failed to implement some of the terms of the compromise and thereupon the appellant decree-holder filed an execution (Execution case no. 862 of 34 renumbered as 17 of 36 ). It is unnecessary to describe in detail the various stages in the execution petition and it is sufficient to note that in execution of the said compromise decree the appellant purchased the disputed house on 16th September 1937 and also obtained delivery of symbolical possession on 29th April 1938. His title to the house is based on the court sale dated 16th September 1937 in execution of the compromise decree obtained against Gadadhar Sahu and his three brothers.

( 4 ) RESPONDENT 1 is a prominent lawyer and money-lender of Puri town and he claims to have purchased the entire house in a certificate sale dated 13th february 1935 (certificate case No. 277 of 1933. 34 ). The certificate case arose in conaquence of a certificate filed by the Income-tax authorities on 10th March 1934 against Gadadhar Sahu for realisation of income-tax dues with penalty. After the certificate sale dated 13th February 1936 and delivery of possession, the three brothers of Gadadhar Sahu filed an objection under Section 85, B. and o. Public Demands Recovery Act. But their objection was rejected on 15th november 1935. Respondent 2 is a subsequent purchaser of the disputed property from respondent 1.

( 5 ) IT will be noticed that the plaintiff's purchase at court auction in execution of his compromise decree was on 16th September 1937 whereas the purchase by defendant 1 in the certifica









Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top