SARASWATI DEVI GUPTAversusSUDHA RANI AND ORS.
- Citation
- 2005 INSC 616
- Decided
- 14 December 2005
- Disposal
- Appeal(s) allowed
- Bench
- B P SINGH
Holding
The Supreme Court held that the assignee’s right to enforce the decree is final and cannot be challenged again; the High Court erred in directing the executing court to revisit the validity of the assignment.
Summary
The suit for specific performance of a house sale was decided in favour of the plaintiff, Raghu Nath Prasad, who later died. His legal representatives and an assignee, Saraswati Devi Gupta, claimed the decree. The Supreme Court earlier upheld the assignee’s right to enforce the decree and to prefer appeal, rejecting a challenge to her locus standi. Subsequently, the Allahabad High Court directed the executing court to re‑examine whether a valid assignment existed, invoking Order 21 Rule 16 CPC. The Supreme Court held that once it had finally decided the assignee’s locus standi, no court could revisit the validity of the assignment, and the High Court’s direction was an error apparent on the face of the record. Accordingly, the appeal was allowed, the High Court order set aside, and the earlier orders of the executing and revisional courts restored.
Issues considered
- Whether the assignee (transferee) of a decree has locus standi to enforce the decree and to prefer an appeal.
- Whether Order 21 Rule 16 of the Code of Civil Procedure applies to an assignment made during the pendency of the suit.
- Whether a court can re‑examine the validity of an assignment of a decree after the Supreme Court has finally decided the assignee’s right.
- Whether the High Court erred in directing the executing court to determine the existence of a genuine assignment despite the Supreme Court’s earlier judgment.
Legislation cited
- Code of Civil Procedure, 1908s. Order 21 Rule 16, s. Section 146
Subjects
Judgment
A SARASWATIDEVIGUPTA
v.
SUDHA RANI AND ORS.
DECEMBER 14, 2005
B [B.P. SINGH AND AL TAMAS KABIR, JJ.]
Code of Civil Procedure, 1908:
Order 21 Rule 16-Application for execution by transferee of decree-
C Decree-holder transferred decree by assignment to the transferee-Supreme
Court upheld the assignment-when the decree was put in execution, the
judgment-debtor raised an objection that the transferee had no locus standi
to execute the decree-The said objection was rejected by the Executing
Court as well as the Revisional Court-But the High Court directing the
D Executing Court to decide the question as to whether there was a genuine
and valid assignment in favour of the transferee-Correctness of-Held: The
right of the transferee as an assignee was upheld by Supreme Court-
Therefore, the High Court was clearly in error in directing that the same
question, which was finally determined by Supreme Court, shall be gone into
once again by the Executing Court-this amounted to directing the Executing
E Court to go behind the decree which had attained finality-High Court
judgment set aside.
One 'R' filed a suit for specific performance of an agreement to sell a
house in question. The trial court dismissed the suit but the appellate court
allowed the appeal. On the death of 'R' the appellant was brought on record
F since she claimed that the late 'R' had assigned his interest in the decree in
her favour. The High Court allowed the second appeal preferred by the
defendant-respondent
The appellant filed an appeal before this Court which was allowed. At
that stage a contention was advanced before this Court that the appellant, who
G was the transferee from the decree-holder, had no locus standi to prefer the
appeal. This Court rejected the said contention on the ground that such a
contention was not raised before the High Court despite liberty given by the
High Court to raise the said contention.
The decree was then put in execution and the respondent filed an
II 746
SARAS WA Tl DEVI GUPTA v. SUDHA RANI [B.P. SINGH.J.] 747
objection under Order 21Rule16 of the Code of Civil Procedure, 1980 that A
the transferee had no locus standi to execute the decree. The Executing Court
as well the Revisional Court rejected the objection. However, the High Court
directed the Executing Court to decide the question as to whether there was
a genuine and valid assignment in favour of the appellant. Hence the appeal.
Allowing the appeal, the Court B
HELD: 1. The High Court by directing the Executing Court to examine
the question as to whether there was a valid assignment in favour of the
appellant committed an error apparent on the face of record, inasmuch as
failed to notice the finding recorded in the judgment of this Court which
conclusively decided the question of locus standi in favour of the appellant. In C
view of the judgment of this Court upholding the right of the appellant as an
assignee, no challenge to her locus standi as an assignee could be entertained
by any Court thereafter. The High Court was clearly in error in directing
that the same question, which was finally determined by this Court, shall be
gone into once again by the Executing Court. This amounted to directing the D
Executing Court to go behind the decree which had attained finality.
(750-D-E)
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 6708 of2001.
From the Judgment and Order dated 22.7.99 of the Allahabad High Court
in R.P. No. 64773/96 in C.M.W.P. No. 8532of1996. E
R.C. Verma, Ms. Jyoti Saxena, B.B. Sinha and M.P. Shorawala for the
Appellant.
Sarvesh Bisaria and Anil Nag (NP) for the Respondents.
The Judgment of the Court was delivered by F
8.P. SINGH, J. This Appeal by Special Leave is directed against the
Order of the High Court of Judicature at Allahabad in Review Petition No.64773
of 1996 dated 22.7.1999 whereby the High Court summarily dismissed the
Review Petition preferred by the appellant herein. By its Order dated August
30, 1996 the High Court had directed the Executing Court to entertain and G
decide the question as to whether a valid assignment of the decree had been
made in favour of the appellant/assignee.
The facts of the case may be briefly recapitulated:-
Suit No.23 of 1972 was filed by one Raghu Nath Prasad for specific H
748 SUPREME COURT REPORTS [2005) SUPP. 5 S.C.R.
A performance of an agreement to sell the house in question. Shamsher Bahadur
was the defendant in the said suit. The suit was dismissed by the Trial court,
but on appeal, by its judgment dated 7th April, 1975 the Appellate Court
allowed the appeal and ordered specific performance of the agreement. The
plaintiff Raghu Nath Prasad, the decree holder died on Ist September, 1979.
B Thereafter, by Order dated 20th November, 1980 the legal representatives of
the said Raghu Nath Prasad were brought on record as also the assignee, the
appellant herein, since she claimed that the late Raghu Nath Prasad had
assigned his interest in the decree in her favour. A Second Appeal was
preferred by the defendant against the judgment of the Appellate Court
decreeing the suit for specific performance and the said Second Appeal was
C allowed by judgment and order dated 5.7.1982. Thus the decree of specific
performance was set aside and the order of the Trial Court dismissing the suit
was restored. After the judgment and order of the High Court, the legal
representatives of Raghu Nath Prasad who had been brought on record, did
not take any further interest in the matter and did not even challenge the
D judgment and order of the High Court dismissing the suit filed by the plaintiff
Raghu Nath Prasad. Only the assignee namely, the appellant, came up by way
of appeal to this Court. By judgment and order dated I0th February, 1989 this
Court allowed the appeal. This Court held that the High Court was in error
iri dismissing the suit for specific performance. The appeal was allowed.
At that stage a contention was advanced before this Court· that the
E appellant, who was the transferee from the decree holder, had no locus standi
to prefer the appeal. This Court noticed that when the appellant (assignee)
had made an application before the High Court for being joined as a
respondent, the High Court had passed an order to the effect that the applicant
be brought on record as a respondent in the appeal, but it would be open
F to the appellant (before the High Court) to raise such objections as they
would like about the locus standi of the applicant qua the controversy which
had to be decided in the appeal, at the time of final hearing. This Court
noticed that despite the liberty given to raise objections as to the locus standi
of the assignee, no such objection was raised. This Court observed :-
G "The judgment of the High Court clearly indicate that the· respondent
did not raise any question in respect of that and in view of this matter the
contention raised here for the first time cannot be considered. The appeal is,
therefore, allowed.
The judgment and decree passed by the High Court is set aside and that
H of the Lower Appellate Court is restored. The appellant will be entitled to the
SARAS WA TI DEVI GUPTA v. SUD HA RANI [B.P. SINGH. J.] 749
cost of this appeal which we quantify Rs.2000/-." A
In the absence of any objection raised before the High Court, this Court
did not entertain the plea of the respondent raised for the first time in the said
Appeal challenging the locus standi of the appellant as an assignee.
After the judgment and order of this Court the decree was put in
execution and an objection was filed by the respondents herein under Order B
21 Rule 16 C.P.C. The said objection was rejected by the Executing Court as
well as by the Revisional Court. The Executing Court held, inter-alia, that
Order 21 Rule 16 C.P.C applied only if after passing of the final decree the
decree holder makes an assignment. However, if during the pendency of the
case there is an assignment of decree, and the rights and liabilities of the C
parties have been decided, thereafter no notice of proceeding is requited to
be given under Order 21 Rule 16 CPC. Applying these principles the Executing
Court held that under Section 146 CPC Saraswati Devi was fully entitled to
execute the decree. It noticed the judgment of this Court and concluded that
no rights were left for the applicant to challenge the title. It also noticed the
fact that after the judgment of the High Court dismissing the suit for specific D
performance the legal representatives of Raghu Nath Prasad did not take any
steps to file an appeal in the Supreme Court and it was only the assignee who
challenged the judgment of the High Court before the Supreme Court. The
Supreme Court while allowing the appeal rejected the argument advanced
before it that Saraswati Devi had no locus standi to file the appeal. E
The Revisional Court affirmed the order of the Executing Court where
after the matter was taken to the High Court by a Writ Petition being Civil
Miscellaneous Writ Petition No.8532 of 1996. The High Court took the view
that it is yet to be decided as to whether the benefit of the decree in the suit
filed by Raghu Nath Prasad will go to his legal representatives or the alleged F
assignee, and that in tum will depend on whether there was a genuine
assignment by Raghu Nath Prasad in favour of Saraswati Devi (appellant
herein). Accordingly, the High Court directed the Executing Court to decide
the question as to whether there was a genuine and valid assignment in
favour of Saraswati Devi (the appellant herein) by Raghu Nath Prasad, and
as to who will get the benefit of the decree of specific performance. G
In our view the High Court was completely in error iQ coming to the
conclusion that even after the judgment and order of the Supreme Court
allowing the appeal preferred by the appellant herein namely, the assignee, it
was still open to the Executing Court to consider the question as to whether
there was a valid assignment in favour of the appellant herein. In our view, H
750 SUPREME COURT REPORTS [2005) SUPP. S S.C.R.
A this Court, by its judgment and order dated 10th February, 1989 in the Appeal
preferred by the assignee allowed the appeal preferred by her. The question
of locus standi was raised before this Court but that question was not
entertained by this Court for the first time, since this Court held that such an
objection in the first instance ought to have been raised before the High
B Court pursuant to the liberty reserved, while adding the assignee as a party
respondent in the appeal. Since no objection whatsoever was raised before
the High Court challenging the locus standi of the appellant as the assignee
of the decree, the same could not be raised before this Court for the first time.
If, as held by this Court, that question could not be raised before this Court
for the first time since such an objection was not raised before the High Court,
C it must logically follow that such an objection cannot be raised in the Executing
Court as well. The effect of the judgment of this Court was that the assignment
in favour of the appellant was upheld and could not be challenged thereafter.
Indeed this Court proceeded to dispose of the appeal preferred by her as the
assignee of the decree. The High Court by directing the Executing Court to
examine that question committed an error apparent on the face of record,
D inasmuchas it failed to notice the finding recorded in the judgment of this
Court, particularly the finding recorded in the last paragraph of the judgment,
which conclusively decided the question of locus standi in favour of the
appellant. In view of the judgment of this Court upholding the right of the
appellant as assignee, no challenge to her locus standi as assignee could be
E entertained by any Court thereafter. The High Court was clearly in error in
directing that the same question, which was finally determined by this Court
by its judgment and decree of 10.2.1989, shall be gone into once again by the
Executing Court. This amounted to directing the Executing Court to go behind
the decree which had attained finality. We are, therefore, satisfied that the
High Court committed an error which is apparent on the face of the record.
F
Consequently we allow the appeal, set aside the judgment and order of
the High Court and dismiss the objections filed by the respondents before
the Executing Court challenging the locus standi of the appellant as assignee
of the decree. The Order of the High Court dated 30th August, 1996. directing
the Executing Court to go into that question is set aside, and the Order
G passed by the Executing Court and the Revisional Court. dated 8.8.1994 and
10.12.1996 are restored. O
No order as to costs.
v.s.s. Appeal allowed.
H
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