# [1965] 2 S.C.R. 436

- **Citation:** [1965] 2 S.C.R. 436
- **Court:** Supreme Court of India
- **Decided:** 1964-12-11
- **Bench:** A. K. SAU:All, K. Subba Rao, RAGHUBil DAYAL, N. Rajagopala Ayyangar, J. R. MUDHOLIWl
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/1965-2-s-c-r-436-3421
- **Pages:** 21

## Headnote

Code of Civil Procedure (Act 5 of 1908) •· 144-Applkatlon 111..UrIf execution application.
Limilalion Act (9 of 1908), Arts. 181 and l82:;;-Scop1 of,
The appellant filed a suit for recovery of certain properties from the
respondenta.
The suit was d<creed by the trial courL The niopondlW.1
appealed to the High Court, but pending the appeal, the appellant, in
execution of the decree of the trial court, obtained possession of tbe suit
properties and recovered the costa awarded.
Only July 13, 19'49, the·
High Court set aside the decree of the trial court, and on August 24,
1950, the appellate decree was amended by deleting the name of one of
the decree-holders from the decree. The respondents filed two applications
one ·on February 11, 1953 for costa and the other on February 13,
1~3
for restitution of the properties and =ta paid, under s. 144 of the Chi!
Procedure Code, 1908. The trial court ordered execution to proceed and
on appeal the .High Court confirmed the order.
In the appeal to the
Supreme Court, it was contended that : (i) the application for recovery
of costs was barred by limitation under art. 182 of the Limitation Act,
1908, as it was filed beyond 3 years from the date of the appellate decree
and (ii) the application for restitution was oot an application for execution
and was therefore governed by art. 181 of the Limitation Act; and as the
period of limitation of 3 years under that article, starta from the date when
the right to apply accrues the application tor restitution was al!O barred by
limitation.
HELD (by Full Court) : (i) The execution application tor the recovery of costs was within time. [439 E; 455 H]
By the amendment of August 24, 1950, the name of one of the
decree-holders was struck out from the decree- and the rmult wu, to that
exient, the rights of the parties were modified by the amended decree. It
was therefore, a case where the decree has been amended within the meaning of art. 182(4) of the Limitation Act, and the application for execution
could be filed within 3 years from the date of the amendment.
[45~ G]
(ii) (Per Subba Rao, Raghubar Dayal, RAjagopala Ayyangar and
Mudholkar JJ.) : On a fair construction ot the provisions ot s. 144 of the
Code, an application for restitution must be held to be one tor eucotion
of a decree, and having been filed within 3 yean from the daw of the
amended decree wu within time.
[4SS B, HJ
Having regard to the Imtory of the section, there ia no reMOn why
such an application should not be treated as one for execution of the f>pellate decree. The object of tbe section ia to make the scope of restitutlOn
clear and unambiguous. It does not say that an application for restitution,
which till the Code of 1908 was enacted was an application for execution,
should be treated as an original petition. Whether an application ·ja one
for execution of a decree or in an original apPlication depends upon
the nature of the application and the relief asked for. When a party, •rho
loot his property in execution of a decree, seeks to recover it back by
A
B
c
D
E
F
G
H
A
B
c
MAHJIBHAI )I, MANIBHAI (Sarkar, J.)
437
I
reason of the appellate decree in his favour, he is not initiatina any
original proceeding but is com:emed OD!y with the working out of the
appellate decree in his favour. [450 E-H; 451 Al
It would be inconsistent to hold that an application for restitution would
be an oriainal petition, if the appellate decree did not pve a direction for
restitution, and that it would be an execution application if it did. Such
an inconsisteocy could be a.-oided if a direction for restitution were
implied in every appellate decree setting aside or modjfying the decree of
the lower court. [451 C-E]
The existence of s. 47 in the Code would make •. 144 redundant.
The latter section was enacted to prescribe the J?rocedure, define the powers
of the court and expressly bar the maintainability of a suit in respect of a
relief obtainable under it. [451 E, G]
· The fact that the section has been

## Text

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MAHJIBHAI MOHANBHAI BAROT
,.
PATEL MANIBHAI GOKALBHAI A ORS.
December 11, 1964
[A. K. SAU:All, K. SUBBA RAO, RAGHUBil DAYAL,
N. RAJAGOPALA AYYANGAR AND J. R. MUDHOLIWl, JJ.]
Code of Civil Procedure (Act 5 of 1908) •· 144-Applkatlon 111..UrIf execution application.
Limilalion Act (9 of 1908), Arts. 181 and l82:;;-Scop1 of,
The appellant filed a suit for recovery of certain properties from the
respondenta.
The suit was d<creed by the trial courL The niopondlW.1
appealed to the High Court, but pending the appeal, the appellant, in
execution of the decree of the trial court, obtained possession of tbe suit
properties and recovered the costa awarded.
Only July 13, 19'49, the·
High Court set aside the decree of the trial court, and on August 24,
1950, the appellate decree was amended by deleting the name of one of
the decree-holders from the decree. The respondents filed two applications
one ·on February 11, 1953 for costa and the other on February 13,
1~3
for restitution of the properties and =ta paid, under s. 144 of the Chi!
Procedure Code, 1908. The trial court ordered execution to proceed and
on appeal the .High Court confirmed the order.
In the appeal to the
Supreme Court, it was contended that : (i) the application for recovery
of costs was barred by limitation under art. 182 of the Limitation Act,
1908, as it was filed beyond 3 years from the date of the appellate decree
and (ii) the application for restitution was oot an application for execution
and was therefore governed by art. 181 of the Limitation Act; and as the
period of limitation of 3 years under that article, starta from the date when
the right to apply accrues the application tor restitution was al!O barred by
limitation.
HELD (by Full Court) : (i) The execution application tor the recovery of costs was within time. [439 E; 455 H]
By the amendment of August 24, 1950, the name of one of the
decree-holders was struck out from the decree- and the rmult wu, to that
exient, the rights of the parties were modified by the amended decree. It
was therefore, a case where the decree has been amended within the meaning of art. 182(4) of the Limitation Act, and the application for execution
could be filed within 3 years from the date of the amendment.
[45~ G]
(ii) (Per Subba Rao, Raghubar Dayal, RAjagopala Ayyangar and
Mudholkar JJ.) : On a fair construction ot the provisions ot s. 144 of the
Code, an application for restitution must be held to be one tor eucotion
of a decree, and having been filed within 3 yean from the daw of the
amended decree wu within time.
[4SS B, HJ
Having regard to the Imtory of the section, there ia no reMOn why
such an application should not be treated as one for execution of the f>pellate decree. The object of tbe section ia to make the scope of restitutlOn
clear and unambiguous. It does not say that an application for restitution,
which till the Code of 1908 was enacted was an application for execution,
should be treated as an original petition. Whether an application ·ja one
for execution of a decree or in an original apPlication depends upon
the nature of the application and the relief asked for. When a party, •rho
loot his property in execution of a decree, seeks to recover it back by
A
B
c
D
E
F
G
H
A
B
c
MAHJIBHAI )I, MANIBHAI (Sarkar, J.)
437
I
reason of the appellate decree in his favour, he is not initiatina any
original proceeding but is com:emed OD!y with the working out of the
appellate decree in his favour. [450 E-H; 451 Al
It would be inconsistent to hold that an application for restitution would
be an oriainal petition, if the appellate decree did not pve a direction for
restitution, and that it would be an execution application if it did. Such
an inconsisteocy could be a.-oided if a direction for restitution were
implied in every appellate decree setting aside or modjfying the decree of
the lower court. [451 C-E]
The existence of s. 47 in the Code would make •. 144 redundant.
The latter section was enacted to prescribe the J?rocedure, define the powers
of the court and expressly bar the maintainability of a suit in respect of a
relief obtainable under it. [451 E, G]
· The fact that the section has been placed in the "Miscellaneous" Pan
of the Code lor conveniel)ce of arrangement, cannot affect the question
if in reality the application for restitution is one for execution : at the most
it is only one of the circumstances relevant to the enquiry and it is not
decisive. [452 D-E]
Merely because, under •· 144, the application has to be filed in "the
court of first instance" and under s. 38, a decree may be executed both
by "the court which passed it" or by "the court to which it is sent for
execution," an application under s. 144, does not ease to be one for
D
execution. For under s. 3 7, the expression "Court which passed a decree"
includes the "Court of first instance", when the decree to be executed has
been passed in the exercise of appellate jurisdiction. (452 E-0}
E
. F
.G
If an execution application to which s. 4 7 applies does not cease to be an
execution application by reason of the . section being included in the deftnition of a "decree" under•· 2(2), an execution application under 1. l«
cannot likewiae cease to be one for the reason that the said oection is includea in the .definition of decree. The two sections were included only for the
purpooe of giTing a right of appeal. [453 C-D]
To construe an application for restitutii>n as not one for execution
would lead to anomalies specially under ss. 6, 7 and 15 of the Limitation
Act.
The existence of anomalies may have no relevance when a provision of a otatute is clear and unambiguous, hut will certainly have a
bearing when the section is ambiguous.
Further, in a procedunl matter
pertaining to execution when a leClion yields tO' two conflicting constructions, the court should adopt a construction which maintains rather than
disturbo the equilibrium in the 11.eld of execution. [453 H; 454 A. P}
Per Sarkar J. (disoenting) : The application under s. 144 is not on•
in execution and therefore would not be governed by art. 182 of the Limitation At! but by art. 181.
Since, under arl. 181 time s!lrto to run
fmm the date the right to apply accrues and tho period prO'rided ta three
years, the application for reotitution would be barred. (442 D-P}
Apart from the fact that the application ii not described .u one in
execution, the provision ia the !eCtion for the making of an order for
the purpooe of effecting rmtitution would lead to the conclmion that
it is thia order that is to be executed for obtaining restitution; and therefore the earlier aP11lication resulting in ouch order, could not be one for
execution. [440 0:.E]
'
If the ~tioo: under 1. 144 is one for execution, then the pro'ri!ion
H. in the oectiOD that no suit aball be instituted for tho purpose of ob!lining restitution and the inclusion of the determination of a question under
s 144 within' the definition of decree in s. 2(2) would be unneceuarv.
bec&Ule of •. 47. The latter ectioo which relalal to questiono amintr m
-438
SUPUMJ! COUJ.T
RBPOl.TS
[1965] 2 S.C.R.
GIClllion bani a suit to obtain the same relief, and the determination of A
any question under th!it section is included within the definition of decree.
1440 F-H]
Further, under a. 144, the application has to be made to "the Court
of lint instance" and not to a transferee court, whereas, under u. 38
ud 39 and 0.xx:I, r. 10, the holder of a decree desiring to execute it
ahall apply to the court to which the decree has been sent for execution. [441 A-CJ
B
While the s. 583 of the Code of 1882, expreSsly provided that restitution would be by way of execution, s. 144 of the Code of 1908, deliberately omits reference to execution. This departure in the tertninology used,
would tend to the view that it was intended that the procedure under the
new section would not be by way of execution. [441 F-OJ ·
If the language of the section by itself clearly indicates that the procedure is not to be by way of execution, it would not be legitimate to
C
~rpret the section in a different way because of the deprivation of the
benefits under ss. 6, 7 and 15 of the Limitation Act. [442 BJ
·
It cannot be said that the right to apply for restitution accrued when
the lll'{'ellate decree was amended, for under s. 9 of the Limitation Act,
once time starts running, it does not stop to do so, and time in the
instant case began to run from the date of the appellate decree, when the
right to apply first accrued. [442 HJ
CML APPELLATE JURISDICTION : Civil Appeals Nos. 777 and D
'778 of 1964.
Appeals by special leave from the judgment and ordor dated
March s, 1964 of tho Gujarat High Coun in First appeals Nos. 111
and 112 of 1960.
W. S. Barlingay and A. G. Ratn'aparkhi, for the appellant (in ll
both the appeals).
I. N. Shroff, for the respondents 2 and 3.
Sarkar J. delivered a dissenting Opinion. The Judgment of
Subba Rao, Raghubar Dayal, Ayyangar and Mudholkar 11. was
delivered by Subba Rao J.
r
Sarkar J. These appeals arise from two miscellaneous applications made to the trial Coun which was the Coun of tho Civil
Judge, Nadiad in the State of Gujarat. One of these applications
was for execution of orders for costs awarded and the other was
under s. 144 of the Code of Civil Procedure for restitution of G
money and property taken in execution of a decree reversed in
appeal. The appellant is the successor-in-interest of the plaintiff
in the suit out of the proceedings of which these appeals arise and
the respondents were the defendants there.
The appellant's predecessor-in-interest had filed· the suit for
possession of land against the respondents and another person,
H
now deaii. The suit was decreed with costs by the trial Coun on
November 30, ·1945 but that decree was set aside on July 13, 1949
MAH.JIBHAI v. MANIBHAI (Sarkar, I.)
439
A on appeal by the defendants to the High Court of Bombay. While
the appeal was pending the appellant's predecessor-in-interest had
in execution of the decree of the trial Court obtained possession of
the land and realised the costs awarded.
Also pending the appeal
the appellant's predecessor-in-interest having died, the appellant
was substituted in his place. After the appellate decree had been
B drawn up, it was amended on August 24, 1950 by deleting the
name of one of the appellants mentioned therein, being one of the
defendants to the suit, on the ground of his death. The appellant
got leave from this Court under Art. 136 of the Constitution to
appeal from the appellate decree but such leave was revoked on
C November 24, 1952 as the appellant had failed to carry out the
condition on which it had been granted.
Thereafter on February
11, 1953, the respondents filed in the trial Court the application for
execution for recovering the costs awarded to them in the proceedings up to the date of the revocation of leave by this Court
and out of this application one of the appeals has arisen.
On
D February 13, 1953,-they filed the other application under s. 144 of
the Code for restitution of the land taken and the costs realised
from them in execution of the decree of the trial Court and out of
this the other appeal has arisen. The only question argued in each
appeal is whether it is barred by limitation.
E
As regards the application for execution, I agree with my
learned brother Subba Rao that it is not barred by time and the
appeal arising from it, that is, appeal No. 777 of 1964 should be
dismissed.
On this matter I have nothing to add to what my
learned brother has stated in his judgment.
F
On the other application, namely, the application for restitution
under s. 144 of the Code, I have come to a conclusion different
from that of my learned brother.
The question here also, as I
have already said, is whether the application had been made
beyond the time specified and was barred.
The appellant, who
was the defendant to that application, contended that an application
G under s. 144 was not in execution and would be governed by Art.
181 of the Limitation Act which covers applications not specially
provided for in the Schedule to that Act and not by Art. 182
relating to execution.
The respondents who wanted the restitution, contended on the other hand that the case came under Art.
182 as the application for it was really one in execution.
Subject
H to ce~tain questions which I will later discuss, it is not in dispute
that if Art. 181 applied, then the application would be barred
while it would not be so if the case was governed by Art. 182.
L3Sup./6S-!2
.uo
SUPllllMB
COUllT
REPORTS
(1965) 2 S.C.R.
The question, therefore, in this appeal is whether an application
A
under s. 144 is an application in execution. On that question there
has been a great divergence of opinion in the High Courts. It
would not be profitable to refer specifically'to the reasons given in
these judgments in support of the views respectively adopted, for
these reasons will, in substance, all be discussed later. In my
view, an application under s. 144 is not one for execution and I
proceed now to state my reasons for that view.
B
I suppose our first task in deciding what kind of application is
contemplated in s. 144 is to look at its terms.
On doing so, I find
that no reference to execution is made in it.
It is not contained in
any chapter dealing with execution.
It says that when a party
C
becomes entitled to restitution ·as a result of a decree being varied
or reversed, the Court of first instance shall, on his application,
cause restitution to be made and for this purpose the Court maythe word "may" here clearly means "shall"-make any orders that
may be necessary.
Apart from the fact that the application is not
described as one in execution, the provision for the making of an D
order' for the purpose of effecting restitution would lead to the
conclusion that it is this order which is to be executed for obtaining restitution. The section obviously could not contemplate two
applications for execution, and therefore, the earlier application
resulting in the order mentioned in the section could not be one
E
for execution. It seems to me impossible, looking at the terms of
th~ section alone-and without more, we have no right to look
at anything else>-to say that the application contemplated in it is
·One in execution.
There are other reasons indicating that the application contemplated by the section is not one for execution. Thus if the
F
application was in execution, then under s. 4 7 of the Code a suit
to obtain the same relief would be barred.
It would then have
been unnecessary to provide by sub-s. (2) of s. 144 that no suit
shall be instituted for the purpose of obtaining restitution. Again
turning to the definition of decree in s. 2, sub-sec. (2), I find that G
it includes the determination of a question within s. 144. This
provision would be wholly unnecessary if the, determination of that
question was in execution proceedings for then the matter would
be brought within the definition of decree by that part of it which
included in it the determination of any question within s. 4 7 which
·section relates to questions arising in execution.
H
Lastly, while s. 144 provides that the application. under it is
to be made to "the Court of first instance", s. 38 which occurs in
MAHJIBHAI v. MANIBHA! (Sarkar, /.)
Ul
A a part of the Code dealing with execution, states that a decree may
be e~ecnted either by "the Court which passed it or by the Court
to \vhich it is sent for execution". Section 39 provides for a transfer of a decree for execution to another Court and by virtue of
Or. 21, r, 10, the holder of a decree desiring to execute it shall,
if the decree has been sent to' another Court, apply to that Court.
B Under s. 144 however the application has to be made to "the
Court of lirst instance". The section does not permit an application to be made to a transferee Court. This again will indicate
that it was not intended that an application under s. 144 will be
an application for execution.
No doubt, the expression "Court of
C first instance" has to be interpreted in a general sense and would
include, where the· Court of first instance has ceased to exist, a
court which then has jurisdiction over the territory in which the
abolished Court functioned. Such a view was taken in Panchapakesa Aiyar v. Natesa Pathar('). This however is a different
matter.
D
It was said on behalf of the respondents that s. 144 of the
Code of 1908 was intended to replace the analogous provisions
contained ins. 583 of the preceding Code of 1882 and was in effect
a re-enactment of the earlier provision and, therefore, in construing s. 144 it has to be considered in what way the earlier proviE sion, namely, s. 583, was defective which defects the new provision
intended to rectify. It does not seem to me that even this approach
assists the contention that s. 144 contemplates an application in
execution.
Section 583 expressly said that the restitution was
to be obtained by way of an execution. While it is true that on
various questions arising under s. 583 difficulty ha_d been felt and
F divergent views expressed in the High Courts, there was however
no doubt ever felt that the earlier section had provided for a
procedure by way of execution to obtain restitution. The earlier
section cannot, therefore, lend any support to the view that the
application under the new section has to be in execution. Indeed
the old section leads to the contrary view for while it expressly
G provided that restitution would be. by way of execution, the present
section deliberately omits reference to execution. This departure
in the terminology used, would tend to the view that it was intended that the procedure under the new section would not be by way
of execution.
With the difficulties actually felt under s. 583, we
H
are not concerned in the discussion of the present case: they give
,no assistance in the solution of the question now before us.
-(I) SI M.L.J. 161.
'42
SUPREME
COURT
REPORTS
[1965) 2 S.C.ll.
It was then said that if the application for obtaining restitution
A.
under s. 144 was not in execution, then minors and others would
be deprived of the benefit of the provisions in ss. 6 and 7 of the
Limitation Act and the benefit of s. 15 of that Act would also not
be available in respect of such an application. If the language of
s. 144 by itself clearly indicates that the procedure is not to be by B
way of execution, as I think it does, it would not be legitimate to
interpret that section in a different way because of the. deprivation
of the benefits under the provisions of another Act. Furthermore,
there will be many applications coming unoer Art. 18 l of the
Limitation Act othe~ than one under s. 144 of the Code where the
benefits of these sections of the Limitation Act would not be avail- c
able.
The provisions in the Code of Civil Procedure which give
rise to the other kinds of applications covered by Art. 181 of the
Limitation Act cannot all be changed for conferring the benefits of
ss. 6, 7 and 15 of that Act.
Clearly the intention of ss. 6, 7 and
15 of the Limitation Act was that their benefit would be available
only in cases i;oming within their terms.
I am, therefore, unable D
to agree that a consideration of these sections of the Limitation
Act is relevant for the present enquiry.
For all these reasons I
am of opinion that the application contemplated in s. 144 of the
Code is not one in execution and, therefore, it is not governed by
Art. 182 of the Limitation Act dealing with execution but by
Art. 181. for it is not disputed that if Art. 182 did not apply, Art.
E
181 would.
Now under Art. 181 the time starts to run from the
date the right to apply accrues and the period provided is three
years.
In the present case if the right to apply accrued from the
date of the appellate decree which gave rise to the right of restitution, then the application for restitution would be barred for the I'
appellate decree was passed on July 13, 1949 and the application
had been filed on February 13, 1953.
But, as I have already said, after the appellate decree had been
drawn up it was amended on August 24, 1950 by deleting the
name of one of the appellants who had died.
It was said for the
respondents that the right to apply even if Art. 181 applied, must
be said to have accrued when the amendment was made, for before
then the present respondents could· not apply, and if time was
computed from that date the application was not barred.
This
contention however is without foundation for under s. 9 of the
Limitation Act once the time starts running, it does not stop to do
so and there is no dispute that the time began to run from the date
of the appellate decree when the right to apply first accrued.
G
H
·~ MAHJIBHAI v. MANIBHAI (Subba Rao, J.)
4'3
A
It was lastly contended for the respondents that time should
start running from the date when this Court revoked th<: leave to
appeal granted under Art. 136. There is no authority to support
this contention.
In the result I would allow appeal No. 778 of 1964. that has
B arisen from Miscellaneous application No. 16 of 1953 and dismiss
the other appeal.
Sobba Rao, J. These appeals by special leave raise,
inter
a/ia, the question whether Art. 181 of the Limitation Act or Art.
182 thereof applies to an application under s. 144 of the Code of
c Civil Procedure. 1908.
The facts may be briefly stated.
Mohanbhai filed
Special
Jurisdiction Suit No. 28 of 1943 in the Court of the Civil Judge,
Senior Division, N adiad, for possession of the properties described in the Schedule annexed to the plaint from respondents
Nos. 1 to 5 and others.
Respondents 1 to 5 claimed to be in
D possession of the said properties as trustees under a will executed
by Mohanbhai's brother Chhabaji; the other respondents are alleged
to be the sevaks appointed by the respondents to administer some
of the trust properties.
On November 30, 1945, the learned Civil
Judge decreed the suit. 3 of the trustees and the sevaks preferred
E an appeal, being Appeal No. 317 of 1946, to the High Court of
Bombay. On November 8, 1946, pending the appeal, Mohanbhai
obtained possession of the suit properties in execution of the decree
of the trial Court; he also recovered a sum of Rs. 1,290-3-0 from
the trustees being costs awarded to him by the Trial Court. Pending
the appeal, Mohanbhai died and his son, the present appellant,
F was brought on record in his place. On July 13, 1949, the High
Court set aside the decree of the Trial Court and dismissed the
suit with costs. After the appellate decree was drawn up,
an
application was filed by the decree-holders for deleting tlie name
of appellant No. 7 in the High Court on the ground of his death.
On August 24, 1950, the application was granted and the name
G of appellant No. 7 therein was deleted.
As the application filed
by the appellant in the High Court for a certificate to prefer an
aooeal to this Court was dismissed on January 9, 1951, he
filed an application in this Court for special leave to appeal. On
April 16, 1952, special leave to appeal was granted to the
appellant.
But as he did not comply with the conditions
H imposed on him while granting the special leave, this Court on
November 24, 1952, rescinded the special leave. Thereafter,
therespondents herein filed
2 applications in the Trial
SUPltBMB
COUllT
REPORTS
[1965] 2 S.C.R
Court, one was Special Darkhast No. 7 of 1953 filed on February
A
11, 19 5 3, for recovering costs of the suit, the appeal, and the miscellaneous applications, awarded to them against the appellant,
and the other was Miscellaneous Application No. 16 of 1953 filed
on February 13, 1953, .under s. 144 of the Code of Civil Procedure
for the restitution of the estate of Chhabaji which had come into
the possession of the appellant and also for the recovery of a sum
B
of Rs. 1,290-3-0 paid by the trustees to Mohanbhai in execution
of the decree of the Trial Court. The appellant contended that
both the applications were barred by limitation. The learned
Civil Judge held that cl. (2) of Art. 182 of the Limitation Act
applied to the facts of the case and the period of limitation would
C
run from November 24, 1952, when this Court revoked the order
granting special leave, and, therefore, both the applications having
been filed within 3 years from that date, they were in time.
Alternatively, he held that as the decree was amended on August 24,
1950, when the name of the deceased trustee was deleted,
the
period of limitation would run from that date under cl. ( 4) of D
Art. 182 of the Limitation Act and, therefore, the two applications
would be in time. In that view, .the Trial Court ordered execuliori
to proceed in the said two applications.
The appellant preferred
an appeal to the High Court against the said order of the Trial
Court.
Before the High Court learned counsel for the appellant
contended that in regard to the application for restitution Art. 181
E
of the Limitation Act would apply and, therefore the said application, not llaving been filed within 3 years of the date of the
decree, was barred thereunder.
Alternatively he contended faat
even if Art. 182 of the Limitation Act applied, both the applicat!ons would be barred by limitation under the said Article.
The
High Court held that both the applications were governed by Art.
F
182 of the Limitation Act and that the period of limitation would
commence to run from the date the said decree was amended on
August 24. 1950, when the name of the deceased trustee was
deleted and that, as the said applications were filed within 3 years
from the said date, they were within time.
In that view, it confirmed the order of the Trial Court. Hence the appeals.
G
Dr. Barlingay, learned counsel for the appellant, raised before
us the following two points : ( 1) An application for restitution
under s. 144 of the Code of Civil Procedure is not an application
for the execution of a decree and, therefore, the said application
is not governed by Art. 182 of the Limitation Act, which provides H
for a period of limitation in the case of execution of decrees, but
by Art. 181 thereof, which is a residuary article of limitation.
A
B
MAHJIBHAI v. MANIBHAI (Subba Rao, J.)
445
( 2) As under Art. 181 of the Limitation Act the period of !imitation of 3 years starts from the date the right to apply accrues, the
said application for restitution was barred by limitation as the respondents' right to apply for restitution accrued to them when the
appeal filed by them in the High Court was allowed on July 13,
1949. He further argued that the alleged amendment dated August
24, 1950, would not help the respondents, as the 7th respondent
(7th appellant in the High Court) died after the said appeal was
disposed of, that is afier the respondents' right to apply accrued;
and that the second application viz., Special Darkhast No. 7 of
1953, for recovery of costs was also barred by limitation under
Art. 182 of the limitation Act as it was filed beyond 3 years from
C the date of the appellate decree and that the amendment dated
August 24, 1950, on which the respondents relied to save the bar,
was only an amendment of a clerical mistake and, therefore, was
not an amendment within the meaning of Art. 182 ( 4) of the
Limitation Act.
J)
Mr. I. 1-{. Shroff, learned counsel for the respondents, on the
other hand, contended that both the applications are governed by
Art. 182 of the Limitation Act and that they are saved both under
cl. (2) and cl. ( 4) of Art. 182 of the Limitation Act. Alternatively
he argued that even if Art. 181 of the Limitation Act applied to
the application for restitution, it would be within time, as
th•
E respondents' right to apply accrued to them either on the date
when the Supreme Court revoked the special leave granted to the
appellant, viz., November 24, 1952, or at any rate on the date
when the decree was amended, i.e., August 24, 1950.
We shall first take up the question of limitation in regard to an
F application for restitution.
At the outset it would be convenient
to read the relevant _provisions of the Code of Civil Procedure and
of the Limitation Act.
G
H
Section 144 of the Code of Civil Procedure :
( 1) Where and in so far as a decree is varied or
reversed, the Court of first instance shall, on the application of any party entitled to any benefit by way of restitution or otherwise, cause such restitution to be made as
will, so far as may be, place the parties in the position
which they would have occupied but for such decree or
such part thereof as has been varied or reversed; and
for this purpose, the Court may make any orders, including orders for the refund of costs and for the payment
of interest, damages, compensation and mcsne profits,
'46
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REPORTS
[1965] 2 S.C.R.
which Jtre properly consequential on such variation or
A
reversal.
( 2) No suit shall be instituted for the purpose of
obtaining any restitution or other relief which could be
obtained by application .under sub-section ( 1).
T,he First Schedule to the Limitation Act
Period
Time from which
Descriptioo of applicatioo
of
period begins
Limitatioo
to run
Ari. 181. Applicatioos for which no
When tho right to
period of limitation is
apply accrues.
provided elsewhere
in
Three
this schedule or by section
48 of the Code of Civil
yeara
Procedure, 19 .... 8.
Ari. 182. For the executioo of a
Three years;
I. Th• date of the
decree or order of any
or where a
decree or order, or
Civil Court not provided
certified
for by article 183 or by
copy of the
2. Where there baa
section 48 of the Code of
decree or
been an al.peal, the
Civil Procedure, 1908.
orders has
date of the nal decree
been regis ..
or order of the Appotered, six
!late Court, or the
years.
withdrawal
of
tho
appeal, or
3. Where there has
been a review of J udg·
ment, the date of tho
decision passed on the
review, or
4. Where the decree
has been amended, tho
date of ameendmnt, or
Under the said provisions if ;an application js one for execution of
a decree, Art 182 of the Limitation Act applies; but if it is not an
application for execution of a decree, but an application for which
no period of limitation is prescribed elsewhere, Art. 181 of
B
c
D
E
r
the Limitation Act · ·applfos. The short but difficult quesG
tion is whether an application for restitution 'tinder s. 144 of
the Code of Civil Procedure is an applicatioh for execution of a
decree.
Section 144 of the Code of Civil Procedure does not say
in express terms that an application for restitution is not an appli·
cation for execution of a decree; nor does it say that it is one for
execution.
So its nature can be asi;ertained only by construing H
the said statutory provjsion.
To execute a decree is to carry into
effect the terms of the decree; and "to restitute" is to restore to a
MAHJJBHAI v; MANIBHAI (Subba Rao, /.)
447
A party the benefit which the other party has received under a decree
subsequently held to be wrong. There is' no dichotomy between
execution and restitution, for there can be an executable decree
for restitution.
There is a sharp cleavage of opinion among the
various High Courts on the question whether an application for
restitution is one for execution of a decree or not.
This shows
B that different views can be taken on a fair construction of s. 144 of
the Code of Civil Procedure.
In such a case the rule of construction of a statute applicable is stated by Lord Coke, which is adopted
by Maxwell, and it is found in Maxwell on Interpretation of
Statutes, 11th Edn .• at p. 18 :
c
"To arrive at the real meaning, it is l!lways necessary to
get an exact conception of the aim, scope and object of
the whole Act; to consider, according to Lord Coke :
1. What was the law before the Act was passed; 2. What
was the mischief cir defect for which the law had not
provided; 3. What remedy Parliament has appointed;
D
and 4. The reason of the remedy."
E
Let us therefore, approach the problem having regard to the
said rule of construction.
In Halsbury's Laws of England, 2nd Edn., Vol. 14, p. 38,
para. 69, the English law on the subject is stated thus :
"Where a wrongful or irregular execution has been set
aside, or where a judgment or order has been reversed
after execution thereon has taken place, restitution will
be made to the successful party.
The order setting_ aside
the execution or reversing the judgment or order should
provide for this; and if it does, execution may issue upon
it in the ordinary course. If the order does not so provide, another order may be made, or a Writ called a
writ of restitution be issued, commanding the judgment
creditor to restore the property or pay over the proceeds
of sale."
G The said passage indicates that under the English law the appellate
order reversing the original one may itself contain a direc"iion for
restitution or a court may issue a separate order or a writ of
restitution.
In the Code of Civil Procedure, 1859, there was no
express provision for restitution.
But the scope of the doctrine of
restitution was considered by the Judicial Committee in Sha ma
H
Purshad Roy Chowdery v. Hurro Purshad Roy Chowdery(1 )
wherein it stated the principle thus :
(I} [H6S] 10 M.I.A. 203, 211.
448
SUPREME
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REPORTS
[1965] 2 S.C.R.
". . . . . . this rule of law rests, as their Lordships apprehend, upon this ground, that the original decree or judgment must be taken to be subsisting and valid until it
has been reversed or superseded by some ulterior proceeding. If it has been so reversed or superseded, the
money recovered under it ought certainly to be
refunded, and, as their Lordships conceive, is recoverable either by summary process, or by a new suit or
action. The true question, therefore, in such cases is,
whether the decree or judgment under which the money
wa.s originally recovered has been reversed or superseded; and applying this test to the present case, their Lordships are of opinion, that the decrees obtained by Tara
Purshad against Doogra Purshad were superseded by
the Order of Her Majesty in Council pronounced in the
year 1849. It was plainly intended by that Order that
all the rights and liabilities of the parties should be dealt
with under it, and it would be in contravention of the
Order to permit the decrees obtained by Tara Purshad
pending the appeal on which it was made to interfere
with this purpose."
A
B
c
D
Though this passage relates to supersession of a decree not in an
appeal agamst that decree but by the Privy Council in a collateral E
proceeding, the Judicial Committee made it clear that the rights
and liab'lities of parties should be dealt with only under the decree
superseding the earlier decree: and it further restated the English
princip'e that restitution could be made either by a summary
process or by a new suit or action. The Code of Civil Procedure,
1882, for the first time, introduced s. 583 providing for restitutmn.
F
That section read :
"When a party entitled to any benefit, by way of restitution or otherwise, under a decree passed in an app.:~l
under this chapter desires to obtain execution of the
same, he shall apply to the Court which passed the .
decree against which the appeal was preferred; and such
Court shall proceed to execute the decree passed in
appeal, according to the rules hereinbefore prescribed
for the execution of decrees in suits."
G
Under this section any party entitled to any benefit under a decree
passed in an appeal could file an application in the Court which
H
passed the decree against which the appeal was preferred for the
purpose of executing the appellate decree.
The crucial words of
MAHJIBHAI v. MANIBHAI (Subba Rao, J.)
449
A the section were "benefit by way of restitution or otherwise under
a decree''.
Did those words mean that an appellate decree should
expressly contain a direction for restoration of any property taken
by the respondent in execution of the decree of the first Court, or
did they include any benefit to which the decree-holder would be
entitled as a consequence of that decree of reversal ? It was held
B
that under that section a party would be entitled to restitution,
though restitution was not expressly provided for by the decree :
see Balvanrrav v. Sadrudin (1); and Rohini Singh v. Hodding(').
A bare perusal of the section indicates that an application for
restitution under the said section was an application for el(eculion
C of an appellate decree.
The Privy Council in Prag Narain v.
Kamakhia Singh(') held that a separate suit would not lie and the
relief provided by the said section could be obtainr.d only under
s. 583 and s. 244 of the Code of Civil Procedure in execution
proceedings.
An application made to obtain restitution under
a decree in accordance withs. 583 of the Code of Civil Procedure,
0
1882, being a proceeding in execution of that decree, it was held
by all the High Courts, except one, that proceedings by w~y of
re-stitution were proceedings for execution within the meaning of
Art. 179 of the Limitation Act, 1877 : see Venkayya v. Raghavacharlu('), Nand Ram v. Sita Ram("), and Jeddi Subraya Venkatesh Shanbogh v. Ramrao Ramchandra Murdeshvar("). There
i: was also conflict on the question whether mesne profit~ for the
period of dispossession of the party could be recovered only under
the said section or by a regular suit.
The legal position under s. 583 of the Code of Civil Procedure,
1882, may be stated thus : Tho benefit accrued to a party under
F an appellate decree could be realized by him by executing the s:dd
decree through the Court which passed the decree against which
the appeal was preferred. The appellate Court which set aside
or modified the decree of the first Court could give a direction
providing for restitution.
Even if it did not expressly do so, it
should certainly be implied as the appellate Court could not
G have intended otherwise.
The setting aside of the decree itself
raised the necessary implication that the parties should be restored to their original position.
Be that as it may, Courts understood the provision in that light and held that such a decree was
executable as if it contained such a direction.
Such an applicaH
tion was governed by Art. 179 of the Limitation Act, 1887,
(I} [1889] I.L.R. 13 Bom. 485,
(3) (1909] I.L.R. 31 All. 551 <P.C).
(S) [1886] I.L.R. 8 All. stS.
(2) (\894] I.LR. 21 Cal. 34~.
(4) (1897] I.L.R. 20 Mad. 448.
(6) (1898] I.L.B.. 22 Bom. 998.
450
SUPREME
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REPORTS
(1965] 2 S.C.R..
corresponding to Art. 182 of the present Act. No suit lay for
A.
the relief of restitution in respect of such a benefit, the same being
held by the Privy Council to be barred by s. 244 of the Code
of Civil Procedure, corresponding to the present s. 47 of the
Code. But the terms of the section were only confined to a party
entitled to a benefit by way of restitution or otherwise under a
decree passed in an appeal and not under any other proceeding.
E
With this background· the Legislature in passing the Code of
Civil Procedure, 1908, introduced s. 144 therein. The said
'Section is more .comprehensive than s. 583 of the Code of 1882.
Section 144 of the present Code does not create any right of
restitution. As stated by the Judicial Committee in Jai Berham C
v. Kedar Nath Marwari('),
"It is the duty of the Court under s. 144 of the Civil.
Proeedure Code to place the parties in the position which
they would have occupied, but for such decree or such
part thereof as has been varied or reversed.
Nor inD
deed does this duty or jurisdiction arise merely under
the said section.
It is inherent in the general jurisdiction of the Court to act rightly and fairly according to
the circumstances towards all parties involved."
·
The section, to avoid the earlier conflict, prescribes the proeeIt
dure, defines the powers of the Court and expressly bars the
maintainability of a suit in respect of a relief obtainable under
this section.