HIGH COURT OF ALLAHBAD
AGARWALA, BEG, JJ.
Fateh Singh
Versus
Rameshwar Prasad Bagla
F.A.F.O. Nos. 16 and 17 of 1950 from order of II Civil Judge, Kanpur
Decided On : 04-01-1950
CIVIL PROCEDURE CODE, 1908 - O. 21, R. 89 - O. 32, RR. 6 AND 7 - ADJUSTMENT OF DECREE - SANCTION OF COURT - NECESSITY - MINOR DECREE-HOLDERS AND JUDGMENT-DEBTORS - INTEREST OF MINORS - DUTY OF COURT TO PROTECT.
Fact of the Case:
A decree was passed against the appellant and respondents Nos. 17, 18, and 19 in favor of several decree-holders, including minors, for a sum of Rs. 1,61,000. In execution of the decree, immovable property belonging to the judgment-debtors was sold to respondent No. 1 for Rs. 2,81,000. After the sale but before its confirmation, the judgment-debtors sold the mortgaged property to four of the decree-holders Nos. 2 to 5 for Rs. 3,20,000. Out of the sale consideration, Rs. 1,61,081-14-0 was set off towards the decretal amount, and Rs. 38,918-2-0 was paid to the judgment-debtor in cash. The balance of Rs. 1,20,000 was agreed to be paid in three equal yearly installments. The judgment-debtors applied to the Court under O. 21, R. 89 of the Code of Civil Procedure for setting aside the sale, depositing 5% of the purchase money and poundage fee. The application was dismissed as the adjustment of the decree was not sanctioned by the Court, and some of the judgment-debtors and decree-holders were minors.
Finding of the Court:
The Court held that the adjustment of the decree was not for the benefit of the minor decree-holders or judgment-debtors and that the Court had the jurisdiction to protect the interests of minors. The Court also found that the terms of O. 21, R. 89, C.P.C. were not complied with as the adjustment was not accepted by the Court.
Issues: Whether the Court below was right in refusing to give effect to the adjustment as alleged by the judgment-debtors.
Ratio Decidendi: The Court held that the adjustment of the decree was not for the benefit of the minor decree-holders or judgment-debtors and that the Court had the jurisdiction to protect the interests of minors. The Court also found that the terms of O. 21, R. 89, C.P.C. were not complied with as the adjustment was not accepted by the Court.
Final Decision: The appeal was dismissed with costs. The auction purchaser was allowed to re-deposit the money within a month to confirm the sale and get possession of the property.
AGARWALA, J. :- This is an appeal by a judgment-debtor against an order in execution proceedings refusing to set aside a sale under O. 21, R. 89 of the Code of Civil Procedure. The facts briefly stated are as follows.
2. There was a decree against the appellant as also respondents Nos. 17, 18 and 19 - respondents Nos. 18 and 19 being minors - in favour of several decree-holders, some of whom were minors for a sum of Rs. 1,61,000. In execution of the decree certain immovable property belonging to the judgment-debtors was put up for sale on the 19th October, 1949, and was sold to Rameshwar Prasad Bagla, respondent No. 1, for a sum of Rs. 2,81,000.
The execution application had been made by some of the decree-holders, viz., by plaintiffs Nos. 2 to 7 - plaintiffs Nos. 6 and 7 being minors. There were several other decree-holders including some minors who had not joined in the execution application, and therefore the application had been made for the benefit of all the decree-holders. After the sale, but before its confirmation, i.e., on the 17th November, 1949, the judgment-debtors sold the mortgaged property in favour of four of the decree-holders Nos. 2 to 5 only for a sum of Rs. 3,20,000.
Out of the sale-consideration Rs. 1,61,081-14-0 were set off towards the decretal amount and a sum of Rs. 38,918-2-0 was paid to the judgment-debtor in cash. The balance of Rs. 1,20,000 was agreed to be paid in three equal yearly instalments. A receipt was executed by decree-holder No. 3 and by one Har Prasad, special attorney on behalf of all the decree-holders, whereby the entire amount of the decree was admitted to have been received by the decree-holders. On the 18th November, 1949, the judgment-debtors applied to the Court under O. 21, R. 89 of the Code of Civil Procedure for setting aside the sale.
They filed the receipt though not the sale-deed and also deposited in Court a sum of Rs. 14,050, the 5 per cent. of the purchase money and also a sum of Rs. 17,562-8-0 as poundage fee. This application was objected to on behalf of the auction-purchaser on the ground that the judgment-debtors had not complied with the terms of O. 21, R. 89, which required them to deposit the whole of the decretal amount in Court. His case was that there was no real payment to the decree-holders and that in any case the adjustment of the decree which was evidenced by the receipt had not been sanctioned by the Court, as some of the judgment-debtors as well as the decree-holders were minors and that such an adjustment was consequently bad in law being contrary to the provisions of Rr. 6 and 7 of O. 32 of the Code of Civil Procedure.
The Court below gave effect to this contention and dismissed the judgment-debtors application for setting aside the sale. It held that the guardians of the minor judgment-debtors and the guardians of the manor decree-holders could not effect an adjustment of the decree or receive any payment towards it without the sanction of the Court and further that the adjustment was not for the benefit of either of the minor judgment-debtors or of the minor-decree-holders. Against this order the judgment-debtors have filed the above appeal and there is a connected appeal No. 17 of 1950, filed by the decree-holders Nos. 2 to 7.
3. The question in both the appeals is whether the Court below is right in refusing to give effect to the adjustment as alleged by the judgment-debtors.
4. O. 32, R. 6 of the Code of Civil Procedure provides :
"The next friend or guardian for the suit shall not, without the leave of the Court, receive any money or other immovable property on behalf of a minor either -
(a) by way of compromise before decree or order, or
(b) under a decree or order in favour of the minor," and R. 7 provides :
"No next friend or guardian for the suit shall, without the leave of the Court, expressly recorded in the proceedings, enter into any agreement or compromise on behalf of a minor with reference to the suit in which he acts as next friend or
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