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1968 Supreme(Ori) 38

HIGH COURT OF ORISSA
G. K. Misra And B. K. Patra, JJ.
NIRANJAN DAS - Appellant
Versus
LIQUIDATOR PURI BANK LTD. - Respondent
A. H. O.  9  Of  1963
Decided On : MAY 03, 1968

Advocates Appeared:
A.MOHAPATRA, J.RATH, M.MOHANTY, U.N.RATH

The principle of constructive res judicata applies to execution proceedings and bars a party from raising objections to the executability of a decree at a later stage if they failed to raise those objections at the appropriate stages of the execution proceedings.

Headnote:

EXECUTION OF DECREE - ATTACHMENT AND SALE OF PROPERTIES - OBJECTION TO EXECUTABILITY OF DECREE - CONSTRUCTIVE RES JUDICATA - APPLICATION UNDER ORDER 21, RULE 58 C. P. C. - LIMITATION - RULES FRAMED BY HIGH COURT UNDER BANKING COMPANIES ACT, 1949 - RULE 13 - SECTION 45-A OF THE ACT.

Fact of the Case:

The petitioners, heirs of the judgment debtor, filed an application under Order 21, Rule 58 C. P. C. to set aside the sale of properties attached and sold in execution of a decree against the judgment debtor. The petitioners claimed that the properties were not liable for attachment and sale as they were not the properties of the judgment debtor but were either the stridhan property of one of the petitioners or were joint family properties in which the judgment debtor had no share.

Finding of the Court:

The court held that the application was barred by limitation as it was filed beyond the period of 15 days prescribed under Rule 13 of the Rules framed by the High Court under the Banking Companies Act, 1949. The court also held that the application was not maintainable as the petitioners had failed to raise their objections to the executability of the decree at the appropriate stages of the execution proceedings and were therefore barred by the principle of constructive res judicata.

Issues: 1. Whether the application was barred by limitation? 2. Whether the application was maintainable in view of the principle of constructive res judicata?

Ratio Decidendi: 1. The court held that the application was barred by limitation as it was filed beyond the period of 15 days prescribed under Rule 13 of the Rules framed by the High Court under the Banking Companies Act, 1949. The court held that Rule 13 prevailed over any corresponding provision in the Civil Procedure Code and that the court had no discretion to admit the application beyond the prescribed period. 2. The court held that the application was not maintainable as the petitioners had failed to raise their objections to the executability of the decree at the appropriate stages of the execution proceedings and were therefore barred by the principle of constructive res judicata. The court held that the petitioners should have raised their objections when the notice under Order 21, Rule 22 C. P. C. was issued to them, when the order for attachment was passed, and when the order for sale was passed.

Final Decision: The court dismissed the appeal and upheld the order of the trial court rejecting the application.

PATRA, J.

( 1 ) THIS is an appeal from an order of the Hon'ble Company Judge rejecting an application made by the petitioners praying that Ex Case No 1/65 should not proceed against them. The Official Liquids for Pun Bank Ltd which is under liquidation obtained a decree against one Krishna Chandra Das and started execution proceedings against him praying therein that the properties covered by items Nos. 1 to 13 of the schedule appended to the application be attached and sold for satisfaction of the decree. During the pendency of the proceeding Krishna died on 12-10-60, leaving behind him the petitioners as his heirs. The petitioners nos. 1 and 2 are his sons. Petitioner No. 3 Bimala Dei is his widow and petitioner no. 4 Mukta Dei is his mother. The four petitioners were substituted as legal representatives in the Execution Case and notices under Order 21, Rule 22 C. P. C. were served on them on 21-6-61. They, however did not appeal in Court to file any objection. On 28-8-61 order was passed for issue of a writ of attachment of the properties and attachment was actually effected on 10-9-61. On 19-1-62 an application was filed in Court purporting to be on behalf of the petitioners by an advocate who held no cower from the petitioners by praying that the execution proceeding against the latter be dropped. The Court rightly held that no action could be taken on such petition. On 22-1-62 sale proclamation was issued and on 3-4-62 the immovable properties covered by lots 1 to 13 were sold. The petitioners thereupon filed an application under Order 21, Rule 90 C. P. C. to set aside the sale and after enquiry the sale was set aside. Fresh poclamation was issued on 23-10-62 and a week later, on 29-10-62 the application giving rise to this appeal was filed by the petitioners. It is necessary to refer at length to the averments made and the prayer contained in the petition more so, because the particular provisions of the Code under which it has been filed have not been mentioned. It is allleged that the Judgment Debtor krishna Chandra Das never incurred these loans for his family necessities. Krishna chandra Das had kept a concubine and hence cut off all connections with the joint family consisting of himself, his father and brothers after receiving Rs. 400/-in lieu of his share in his joint family properties. He has also abandoned his wife and children, petitioners Nos. 1 to 3 who were thereafter being maintained by krishna's father Satrughna In the circumstances Krishna had no manner of right to any share in the joint family properties covered by items Nos. 2 to 13 of the schedule and consequently petitioners Nos. 1 to 3 also have no right or title to any share therein. So far as item No. 1 of the schedule is concerned, it is contended that it is the stridhan property of petitioner No. 3 the wife of Krishna and mother of petitioners Nos. 1 and 2. Krishna's father Satrughana died in 1961 and thereafter his widow petitioner No. 4 is living with her other three sons and is being maintained by them without herself having properties of her own. In view of the averments made above, the petitioners prayed that "the aforesaid execution proceeding against these petitioners may please be dropped. "

( 2 ) THE Puri Bank filed a counter stating that Krishna's alleged relinquishment of his share in the joint family properties after receiving Rs. 400/- from his father is not true, that he was doing contract business at Cuttack and was being financed by the joint family and that he had taken loan from the Puri Bank Ltd. for the joint family business. Hence the petitioners are liable to discharge the debt to the extent of Krishna's share in the joint family properties. It is not true as alleged in the petition that property covered by lot No. 1 is the stridhan property of petitioner no. 3, Bimala Dei the wife of Krishna, but it was acquired by Krishna Benami in the name of his wife

( 3 ) AS stated before, the particular provision of law under which t














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