# V. N. Vasudeva v. Kirorimal Luharlwala

- **Citation:** [1964] 6 S.C.R. 192
- **Court:** Supreme Court of India
- **Decided:** 1963-12-20
- **Case number:** Civil Appeal No. 330· of 1960
- **Bench:** B. P. Sinha, J. C. Shah, N. Rajagopala Ayyangar
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/v-n-vasudeva-v-kirorimal-luharlwala-3065
- **Pages:** 22

## Headnote

Code of Civil Procedure (Act V of 1908), O. IX, r. 9-Scope ofl·row11 Grants Act, s. 3-Lease by Government-Effect of-Applica ..
bility of s. 41 of Transfer of Property Act (IV of 1882).
The property covered by the Tea Estate was granted by the Govern·
ment by way of lease in 1898 for 30 years.
In 1913 it was purchased'
by Azam Ali. When he died in 1917, he left behind 8 sons, 9 daughters
and 3 widows. The name of Ismail, his el(iest son. was entered in the
official records as next in succession.
Ismail borrowed considerable
sums from National Agency Co. Ltd., and for securing the same, depo·-
sited the title deeds of the Tea Estate on the footing that he was its
full owner.
As the amonnt under the mortgage was not paid, a suitr
was filed for realisation of the amount by sale of mortgage property ..
o6 S.C.R.
SUPREME COURT REPORTS
193
·•rhe suit was decreed and in execution the property was auctioned and
-saJe was confirmed in 1931 in favour of the decree·holder who sold
the same to Azarnabad Tea Estate, the principal respondent in this case.
The heirs of Azam Ali brought suit No. 58 of 1931 to set aside
<the decree and sale in favour of the National
Agency Co. Ltd.1 on
-various grounds but ·that suit. was dismissed for default.
-
The suit out of which the present appeal has arisen was filed subse~
-quently.
The plaintiffs.appellants who claimed title under purchasers
for the heirs of Azam Ali .challenged the validity of the transactions by
which the National Agency Co. Ltd. claimed to have purchased the
·entire 16 annas inlerest in the property at the court sale in pursuance
.of a decree obtained by them against Ismail. The trial Court held 1hat
the purchase made by the National Agency Co. Ltd. was valid and extended to the entire interest in the property and hence the venders of
.the plaintiffs had no title -to convey to them any interests in the pro-
;perty.
The High Court in appeal disagreed with this finding but di"lmissed the appeal on other grounds except to the extent of an 8 pies
share in the property.
The appellants came to this Court on a ccrtifi-
·Cate of fitness granted by the High Court.
The points raised before this Court were whether the High Court
l\Vas right in holding that\ the present suit was barred by 0. IX, r. 9 on the
:ground that when suit No. 58 of 1931 was dismissed in
default, no
..action was taken to get it restored, this was raised by the respondent anJ
whether in any event their claims to the 2 .as 13 odd gundas share of
Ashfaq, son of Ismail, should not have been decreed.
HELD (i) that the suit was substantially barred by 0. IX, r. 9.
!he essential bundle of facts on which the plaintiffs based their title
;and their right to relief were identical in the two suits the property
sought to be recovered in the two suits was the same. The title of the
persons from whom the plaintiffs claimed title by purchase was based
-0n the same facts.
The additional allegation about possession in Octo-
·ber 1934 did not rea11y destroy the basic and substantial identity of the
<auses of action in the two suits.
The ban imposed by 0. IX, r. 9 does not create merely a personal
bar or estoppel against the particular plaintiff suing on the sa1ne cause
of action and does not ltave the matter at large for those claiming under
'.him.
The word "plaintiff" .in the .rule Jncludes his assigns and legal
representatives.
(ii)
that When the Government granted the lease in 1928, the
~lease was granted not only in favour of Ismail but also in favour of the
other co-sharers although the name of Ismail alone was mentioned in
. -the lease deed.
The provisjons of s. 3 of the Crown Grants Act did
·.not affect the beneficial interest in the lease.
Section 41 of the Transfer of Property Act did not belp the respon·
•dent as there was no evidence to show that Ismail .was put forward by
il.34-139 S.C.-U
1964'
Sura/
RatOll
Thiranl
v.
Azamabad
T•a Co.
19~
Sura/
Ratan
Thirani
v.
Azamabad
Tea Co.
194
SUPREME COURT REPORTS
the other cowsharers a

## Text

_Characters 0–39,970 of 50,463. This is a partial read: ask again with offset=39970 for what follows._

1964
V. N. Vasudeva
v.
Kirorimal
Luharlwala
Hldayatullah J.
1964
January, 13
192
SUPREME COURT REPORTS
truth of the plea that a large sum had been spent on repairs,
an order to deposit the entire arrears of rent ought not tohave been made. It is quite clear that the facts there were
entirely different. Payment by the landlord for repairs was
a part of the tenancy agreement and rent under that tenancy
could not be calculated without advertence to every term
of the agreement of tenancy.
Here the special agreement
which is pleaded is outside the tenancy agreement and the
allegation about the ·special agreement has been held to be
an after-thought and false.
It is therefore diffici1\t to apply
the ruling to the present circumstances.
The appeal is wholly devoid of merit and it is dismissed
with costs.
By the consent of parties,
a period of two
months from the date of hearing (20-12-1963) was granted
to the appellant to deposit the arrears
of r~nt from 1st
April, 1958, in the Court of the Rent Controller.
Appeal dismissed ..
SURAJ RATAN THIRANI & ORS.
v.
THE AZAMABAD TEA CO. & ORS.
(B. P. SINHA, C.J., J. C. SHAH AND N. RAJAGOPALA
AYYANGAR JJ.)
Code of Civil Procedure (Act V of 1908), O. IX, r. 9-Scope ofl·row11 Grants Act, s. 3-Lease by Government-Effect of-Applica ..
bility of s. 41 of Transfer of Property Act (IV of 1882).
The property covered by the Tea Estate was granted by the Govern·
ment by way of lease in 1898 for 30 years.
In 1913 it was purchased'
by Azam Ali. When he died in 1917, he left behind 8 sons, 9 daughters
and 3 widows. The name of Ismail, his el(iest son. was entered in the
official records as next in succession.
Ismail borrowed considerable
sums from National Agency Co. Ltd., and for securing the same, depo·-
sited the title deeds of the Tea Estate on the footing that he was its
full owner.
As the amonnt under the mortgage was not paid, a suitr
was filed for realisation of the amount by sale of mortgage property ..
o6 S.C.R.
SUPREME COURT REPORTS
193
·•rhe suit was decreed and in execution the property was auctioned and
-saJe was confirmed in 1931 in favour of the decree·holder who sold
the same to Azarnabad Tea Estate, the principal respondent in this case.
The heirs of Azam Ali brought suit No. 58 of 1931 to set aside
<the decree and sale in favour of the National
Agency Co. Ltd.1 on
-various grounds but ·that suit. was dismissed for default.
-
The suit out of which the present appeal has arisen was filed subse~
-quently.
The plaintiffs.appellants who claimed title under purchasers
for the heirs of Azam Ali .challenged the validity of the transactions by
which the National Agency Co. Ltd. claimed to have purchased the
·entire 16 annas inlerest in the property at the court sale in pursuance
.of a decree obtained by them against Ismail. The trial Court held 1hat
the purchase made by the National Agency Co. Ltd. was valid and extended to the entire interest in the property and hence the venders of
.the plaintiffs had no title -to convey to them any interests in the pro-
;perty.
The High Court in appeal disagreed with this finding but di"lmissed the appeal on other grounds except to the extent of an 8 pies
share in the property.
The appellants came to this Court on a ccrtifi-
·Cate of fitness granted by the High Court.
The points raised before this Court were whether the High Court
l\Vas right in holding that\ the present suit was barred by 0. IX, r. 9 on the
:ground that when suit No. 58 of 1931 was dismissed in
default, no
..action was taken to get it restored, this was raised by the respondent anJ
whether in any event their claims to the 2 .as 13 odd gundas share of
Ashfaq, son of Ismail, should not have been decreed.
HELD (i) that the suit was substantially barred by 0. IX, r. 9.
!he essential bundle of facts on which the plaintiffs based their title
;and their right to relief were identical in the two suits the property
sought to be recovered in the two suits was the same. The title of the
persons from whom the plaintiffs claimed title by purchase was based
-0n the same facts.
The additional allegation about possession in Octo-
·ber 1934 did not rea11y destroy the basic and substantial identity of the
<auses of action in the two suits.
The ban imposed by 0. IX, r. 9 does not create merely a personal
bar or estoppel against the particular plaintiff suing on the sa1ne cause
of action and does not ltave the matter at large for those claiming under
'.him.
The word "plaintiff" .in the .rule Jncludes his assigns and legal
representatives.
(ii)
that When the Government granted the lease in 1928, the
~lease was granted not only in favour of Ismail but also in favour of the
other co-sharers although the name of Ismail alone was mentioned in
. -the lease deed.
The provisjons of s. 3 of the Crown Grants Act did
·.not affect the beneficial interest in the lease.
Section 41 of the Transfer of Property Act did not belp the respon·
•dent as there was no evidence to show that Ismail .was put forward by
il.34-139 S.C.-U
1964'
Sura/
RatOll
Thiranl
v.
Azamabad
T•a Co.
19~
Sura/
Ratan
Thirani
v.
Azamabad
Tea Co.
194
SUPREME COURT REPORTS
the other cowsharers as the ostensible owner of the property.
Tue con--
duct of the cowsbarers in permitting Ismail to manage the common pro--
perty did not by itself raise any estoppel precluding them from asscr--
ting their rights.
Even a cursory enquiry by the mortgagee would have·
disclosed that Ismail was not the full owner.
As regards the contention of the appellants that they should have·
been granted a decree to the extent of 2 As. 13 odd gundas share of Ashfaq
in additio'n to the 8 pies share decreed to them by the High Court, the·
case was ordered to be remitted to the trial Court for giving its finding_regarding the reality of the sale by Asbfaq.
Gopi Ram v. Jagannath Singh, l.L.R. 9 Pat.
447,
Mohanunad·
Khalil Khan v. Muhbub Ali Mian, 15 I.A. 121 and Soorijomonee Dasee·
v. Suddanund, (1873) 12 Ben. L.R. 304, referred to.
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 330·
of 1960.
Appeal from the judgment and decree dated March 18,
1954, of the Calcutta High Court in Appeal from Original
Decree No. 80 of 1947.
S. T. Desai and B. P. Maheshwari, for the appellants.
B. Sen, N. R. Ghosh, Salil K. Datt and P. K. Ghosh, for·
the respondents Nos. 1 and 2.
January 13, 1964. The Judgment of ·the Court was delivered by
AyyangM J,
A YY ANGAR J .-This is an appeal .preferred, by virtue of
a certificate of fitness granted by the Calcutta High Court,
· ·against its judgment, by which the decne passed by the
Subordinate Judge of Darjeeling was substantially affirmed.
The plaintiffs are the appellants before this Court. The
suit out of which the appeal arises wa> brought by the appellants claiming title to and the recovery of possession of a
property known as the Azambad Tea Estate whieh comprised
about 378 acres of land in Touzi No. 911 of the Darjeeling
Collectorate.
This property was set out in Schedule A to·
the plaint and besides a claim was also made to certain other
items of the movables and certain other tenures. but this
appeal is not concerned with these others which were set out
in Schs. B and C to the plaint.
6 S.C.R.
SUPREME COURT REPORTS
195
One Kazi Azam Ali was admittedly a full owner of this
entire property and the proceedings· giving rise to the appeal
are concerned with the rights of his heirs to it.
The plaintiffs claim their title on the basis of various purchases from
the heirs of this Azam Ali.
The contesting defendants were
the Azamabad Tea Co. who also claim the entire property
as transferees from the National Agency Co. Ltd., who too
have been impleaded as defendants.
The. National Agency
Co. Ltd. claim to have purchased the entire 16 as. interest
in the property at a Court sale in pursuance of a decree
obtained by them against Kazi Mohammed Ismail, the eldest
son of Azam Ali.
Various contentions were raised by the
plaintiffs in challenge of the validity of the transactions by
which the defendants claimed their title.
But the learned
Subordinate Judge repelled the plaintiffs' claim and held that
the purchase by the National Agency Co. Ltd. was valid and
extended to the entire interest in the property and that in
consequence the plaintiffs' vendors had no title to convey to
them any interest in. the property. The plaintiffs' claim of
the property in respect of Sch. A was therefore dismissed.
The plaintiffs preferred an appeal to the High Court and
the learned Judges upheld the title of the plaintiffs to an 8
pies share in the property mentioned in Sch. A to the plaint
but confirmed the decree of the Subordinate Judge as regards
the rest.
The learned Judges however granted a certificate
Of fitness to the plaintiffs on the strength of which the present appeal has been filed.
The history of the transactions before the suit occupies a
period of over 20 years and the facts in relation thereto are
at once long, voluminous and complicated.
But. for the
disposal of the appeal and the points urged before us it is
wholly unnecessary to set these out and we shall therefore
confine ourselves to a narration of the bare outlines of the
case along with those facts which are necessary to appreciate
the contentions raised in support of the appeal.
The property covered by the Tea Estate was granted
by Government by way of lease to one Mudir and another
for 30 years, the term to start on the 1st of April 1898.
The grantees effected transfers of their lease-hold and after
several successive transfers the property was purchased in
1964
Sura/
Ratan
Thirani
v.
Azamabad
Tea Co.
Ayyangar
J.
1964
Sura;
Ratan
Thiram
v.
Azamabad
Tea Co.
Ayyangar
J.
196
SUPREME COURT REPORTS
1913 by one Kazi Azam Ali who got his name registered as
a proprietor. It was Azam Ali who started the tea garden,
constructed the requisite factories as accessories thereto and
named it the Azamabad Tea Estate·
Azam Ali had several
children and among them 8 daughters and in consideration
of gifts made to them. these daughters by a registered deed
executed in 1909 relinquished their rights of succession to
Azam Ali.
They thus faded away from the picture and no
more notice need be taken of them.
Besides these 8
daughters, Azam Ali had 8 sons who survived him and were
among his heirs, when he died on June 8, 1917. Mohammed
Ismail was the eldest of these sons.
Azam Ali also left
behind him a daughter who was born after the relinquishment of 1909 and three widows.
Admittedly the sons of
Azam Ali, his widows and his last daughters were all his
heirs entitled to his estate in the shares as
prescribed by Muslim Law.
On Azam Ali's death his eldest
son-I mail-had his name entered in the Government records a, the next in succession and at the time the thirty
years term of the lease expired, the lease continued to remain
in the name of Ismail alone.
We now proceed to the transactions as a result of which
the contesting defendants claim to have obtained the
full
title to the Tea Estate.
Ismail made large borrowings and
among them were some from the National Agency Co. Ltd.
and for securing the loan he deposited with them the title
-Oeeds of the Tea Estate.
It may be mentioned that the
deposit was on the footing that he was the full owner of the
16 as. share of the property mortgaged.
The amount due
under the mortgage was not paid in time and the mortgagee
filed a suit for the enforcement of its mortgage and pravrd
for the sale of the property for the realisation of the mortgage money.
The suit was decreed as prayed for and the
property was sold in execution of the final decree and was
purchased by the mortgage-decree holder on September
24, 1931. The sale was confirmed on November 13. 1931.
l'his decree-holder purchaser
sold
the
property to the
. Azamabad Tea Estate-the principal respondent hefNe •1s.
There was some little controversy as regards the re.ality and
effectiveness of the
transfer
of
the
property from the
National Agency Co. Ltd. to the Azamabad Tea Estate,
'
6 S.C.R.
SUPREME COURT REPORTS
197
but nothing turns on this, for even if that transfer was not
effective that would not help the plaintiffs so long as they
could not displace the iitle of the National Agency Co. Ltd.
under the latter's court auction purchase.
The case of the plaintiffs rested on the fact that Ismail
who got himself registered as if he were a fu]J proprietor of
the lease-hold interest in Touzi 911 was
merely one of
several co-sharers of Azam Ali's estate to whom it passed on
his death.
The lease-hold which was
his
property was
according to them inherited by all his heirs including Ismail,
the seven other sons, the three widows and the daughter born
after 1909.
The term of the lease granted by the Government expired
in 1928 and a renewed lease was granted in the name of
Ismail alone.
Rival contentions were urged as regards the
effect of this circumstance on the right of Ismail. It was the
case of the contesting respondents that the lease granted in
1923 in favour of Ismail was his sole and individual property and even if for any reason the other heirs of Azam Ali
had an interest in the previous lease-hold, they did not have
any such interest in the property covered by the fresh lease.
On the other hand, the· case of the plaintiffs was. that by -the
renewal of the lease, Ismail obtained qua his co-heirs the
same interest as he formerly had in the lease of.1828 .. The
renewal, they stated, was for the benefit not merely of Ismail
but for everyone of his co-heirs who still retained his or her
interest in Azam Ali's estate.
On this basis· the plaintiffs.
raised the contentions that when by the sale in execution of
the mortgage decree obtained by the National Agency Co.
they purchased the property mortgaged,
it was only the
interest of Ismail that passed to them and not those of his
co-sharers who were no parties to the mortgage.
There is one further
transaction to
which we . must·
advert before passing on to the next stage of the proceedings.
After the mortgage by deposit of title deeds in favour of the
National Agency Co., Ismail transferred his entire int~rest in
the mortgaged property, that is, in the equity of redemption,
to his wife Mst. Nazifannessa, by a deed dated May 6, 193.0.
Notwithstdnding this deed and this transfer of the equity of
redemption Mst. Nazifannessa was not made a ·party to the'
1964
Surai
Rata,.
Thirani
v.
Azamabad
Tea Co,
Ayyangar
}..
1964
Sura;
Ratan
Thirani
v.
Azamabad
Tea
Co.
Ayyangar
J.
198
SUPREME COURT REPORTS
mortgage suit by the Na ti on al Agency Co.
The plaintiffs
who claim to have acquired Mst. Nazifannessa's interest
contended that by reason
of the failure to implead
N azifannessa in the mortgage action, her right to redeem the
mortgage was still in tact in spite of the mortgage decree and
the sale in pursuance thereof, and on this footing made a
claim in the alternative to redeem the mortgage in favour of
the National Agency Co. and obtain possession after re·
demption.
To complete the narrative of the relevant facts, very soon
after the purchase in Court auction in execution of the
mortgage decree, the heirs of Azam Ali brought a suit ( 58
of 1931 ) to set aside the decree and the sale in favour of the
National Agency Co. Ltd. on various grounds--collusion,
fraud, the circumstance that Ismail was merely a co-sharer
entitled to about 2! as. share in the property and so could
not mortgage more than that share, and that the decree could
not bind a larger interest nor the sale convey anything more
, than that share, even if it conveyed any title to the property.
This suit however did not proceed to trial, but was dismissed
for default, in that the plaintiffs did not appear in Court on
the date fixed for trial.
The only other matter to be
mentioned is that the plaintiffs have, by their purchases,
acqufred from the several co-heirs, directly or mediately. the
entire 16 as. share in the property assuming that their vendors
had any such right.
Armed with these purchases the plaintiffs filed this suit for the reliefs already indicated.
The defences raised to the suit were three-fold:
(1) That Ismail was the sole proprietor of the Tea
Estate at the date of the mortgage and conse·
quently the entire interest was the subject of
mortgage and so passed at the court sale.
This
was based
on the
provisions of the Crown
Grants Act, now the Government Grants Act.
It would be recollected that the thirty years
lease of Touza 911 was renewed in 1928 and
this renewal was made in the name of Ismail
alone.
Based on this feature a contention was
raised that the grant of the lease created a new
title in the grantee since the original !case in
•
.fl S.C.R.
SUPREME COURT REPORTS
199
which alone the heirs of Azam Ali might have
had a share was extinguished by the termination
of that lease by efflux of time·
(2) The second line of defence was th.it Ismail, even
if in fact or law was not the full owner, was an
ostensible owner of the entire interest in the property and that the co-heirs were estopped from
questioning the validity of the mortgage of the
entire interest effected by him under s. 41 cf the
Transfer of Property Act and that in consequence the sale in execution passed the entire
16 as. share to the purchaser.
'
(3) Lastly, it was urged that the plaintiffs' suit was
liable to be dismissed by reason of the provisions
of 0. IX, r. 9 of the Civil Procedure Code as
the earlier Original Suit 58 of 1931 brought by
the co-heirs
to set
aside the sale under the
mortgage decree had been allowed to be dismissed for default.
The learned Judges of the High Court rejected the first
two of the defences but held that except to the extent of an
eight pies share which represented the interest of a co-heir
which was not affected by the proceeding in Suit 58 of 1931,
the plaintiffs were precluded by 0. IX. r. 9, Civil Procedurt'
Code from disputing the sale in execution of mortgage decree
by reason of the dismissal for default of Suit 58 of 1931.
Before proceeding to set out the arguments addressed to
us by Mr. Desai, learned counsel for the appellants, it might
~e convenient to dispose of the submissions made to us by
Mr. Sen, learned counsel for the respondents, seeking to
sustain the first two defences which were repelled by
the
High Court.
The first of them was that by reason of the renewal of
the lease in 1928 in the name of Ismail and the entry
of
his name as sole lessee in the revenue records, the leasehold became his sole property.
Apart from the arguments
about Ismail being the ostensible owner of the entire 16 as.
share in the lease-hold under the lease of 1898-v.nich we
shall consider a little later-Mr. Sen did not dispute that
1964
Sura;
Ratan
Thirani
v.
Azamabad
Tea Co.
Ayyangar J.
1964
Sura;
Rat1J11
Thir1J11i
v.
..4zamabad
Tea Co.
..4;yyangar /,
200
SUPREME COURT REPORTS
Ismail's co-heirs were entitled to their fractional shares
in.
the property under the original lease.
The acceptability of
this argument regarding the renewed lease has to be determined on the basis of two factors-first the intention of the·
parties, and here primarily of the grantor, as to the nature.
and quantum of the title intended to be conferred on or obtained by Ismail and, second, the provisions of the Crown.
Grants Act which governed the grant on which reliance was.
placed as leading to that result. First, as to the intention of
the parties. The original lease of 1898 was due to expire·
on March 31, 1928. On July 20, 1928 Mohd, Ismail made·
a petition to the Deputy Commissioner, Darjeeling by which
after drawing the latter's attention to the date· on which the
lease was to expire, he "respectfully solicited the favour of
kindly granting a further lease of the said Estate for a.
further period of 30 years." The Deputy Commissioner replied by letter dated August 10, 1928 sending Ismail
the
draft of the renewed lease for his approval and return adding:
"in'tl\e record of rights thy following names have been record,
ed: ·
1. Kazi Mohammed Ismail 2 as.;
2. Kazi Isahaque 2 as_.;
3. Kazi Yakub 2 as.;
4. Kazi Samoddoha 2 as.;
5. Kazi Nurul Ruda 2 as.;
6. Kazi Badarudduza 2 as.;
7. Kazi Insaf Ali 2 as.;
8. Kazi Asfaque 2 as.;
Please mention the name in whose favour the lease
wilt!
have to be issued."
Ismail returned the draft lease
with
his approval but desired that the lease should be issued'
according to the name in the land register.
We are unable
to read this request as meaning that Ismail; con tr a dieting
what the Government said, wanted that the leasehold interest
should be his sole property in which his co-heirs who had
interest in the earlier lease were to be denied all beneficial'
interest.
It was thereafter that the lease was executed on·
February 1, 1929 in the name of Ismail to be operative from.
April 1, 1928 and was in terms in renewal of the previous,:
'
I
6 S.C.R.
SUPREME COURT REPORTS
20!
lease.
In the circumstance, we are satisfied that the Government intended to grant a lease in favour of hi~ co-sharers
as well, though the ]ease deed was in the name of Ismail
alone. If Ismail intended to benefit himself at the expense
of his co-sharers and as we have said, we do not read his
reply to the Deputy Commissioner as disclosing such
an
intention, the same was not made known to the Government.
We are therefore unable to accept Mr. Sen's submission based
on the intention of the parties.
He, however, submitted
that whatever be the intention of the parties, by reason of
s. 3 of the Crown Grants Act Ismail's title to the full
16 as. share in the leasehold could no_t be disputed.
This
section reads:
"3. All provisions. restrictions, conditions and limitations over contained in any such grant or
transfer as
aforesaid shall be valid and take
effect according to itheir tenor, any rule of law,
statute or enactment of the Legislature to the
contrary notwithstanding."
If, as we have held. it was the intention of the Government
in granting the renewal that the co-heirs too should have the
benefit of the lease we do not see how these provisions affect
their beneficial interest in the lease.
Nor are there
any
clauses in the lease which preclude the existence of a beneficial interest in persons other than the lessee named.
This
point i~ tb.~.n~fore without substance and is rejected.
The next point urged was based on s. 41 of the Transfer
of Property Act
It was said that Ismail was by reason of
the entry in the revenue registers, which the co-heirs did
nothing to correct, ostensibly the full owner of the property
and hence the mortgage by him as full owner and the sale
in court auction in execution of the decree by the National
Agency Co. Ltd. passed the full title to the Tea Estate and
that the co-heirs were consequently estopped from disputing
the defendant's right to the full 16 as. share in the property.
In order that s. 41 of the Transfer of Property Act could
' · be attracted, the respondents should prove that Ismail was
the ostensible owner of the property with the consent of
his co-sharers and besides that they took reasonable care
1964"
Suraj
Ralan•
Thirani
v.
Azamabad
Tea Co.
Ayyn11ga1
} ..
1964
Suraj
Ratan
Thiranl
v.
Azamabad
Tea Co.
Ayyangur J.
202
SUPREME COURT REPORTS
to ascertain whether Ismail had the power to make a transfer
of the full 16 as. interest. Now, the facts however were that
except the property being entered in the revenue records in
Ismail's name, and that the management of the property was
left by the co-sharers with Ismail, there is not an iota of
evidence to establish that Ismail was put forward by them as
the ostensible owner of the property. It is manifest that the
conduct of co-sharers in permitting one of them to manage
the common property does not by itself raise any estoppel
precluding them from asserting their rights.
The learned
Judges have also pointed out that even the least" enquiry by
the mortgagee would have disclosed that Ismail was not the
full
owner and this finding was not seriously challenged
before us.
In this view it is unnecessary for us to consider
the submissions made to us by Mr. Desai that s. 41
was
inapplicable to cases of sales in court auctions for the reason
that what the court is capable of selling and what is sold in
execution of a decree is only the right, title and interest
of the judgment-debtor and nothing more.
We, therefore,
hold that the learned Judges of the High Court rightly held
that s. 41
of the Transfer of Property Act afforded no
defence to the respondents.
The next and the only point remaining for consideration is whether the appellants' suit is barred under the provisions of 0. IX. r. 9, Civil Procedure Code.
The part of
this provision material for our purpose runs:-
"Where a suit is wholly or partly dismissed under
rule 8, the plaintiff shall be precluded from
bringing a fresh
suit in respect of the same
cause of action."
Th.e learned Judges of the High Court have held that
this provision barred the plaintiffs' claim in the
present
suit except to the extent of an 8 pies share in the estate
which belonged to Azifunnessa and Najifennessa, two of
the daughters of Azam Ali, who on the death of
their
mother became entitled to that share.
These two were. not
the parties to suit No. 58 of 1931 and hence the learned
Judges held that their share (which was purchased by the
plaintiffs) was unaffected by the dismissal of that suit.
,
ti S.C.R.
SUPREME COURT REPORTS
203
The decision of the High Court in regard to this 8 pies share
has become
final and thus is outside controversy.
The
.only question is whether the plaintiffs-appellants are entitled to anything beyond this share.
1964
Suraj
Ratan
Thirani
v.
Azamabad
Tea Co.
The suit, 5 8 of 1931, was instituted by 7 plaintiffsAyyangar /.
Ashfaq, Shamsuzzoha, Nurul Huda, Mohd. Yakub, these
four being the sons of Azam Ali, two of his daughtersMahbuba Khatun and Habiba Khatun and one of his
widows Bibi Marium.
There were two defendants-Ille
National Agency Co. Ltd. the purchaser in court sale of
the property under the mortgage decree, whose title was
challenged and against whom reliefs were claimed
and
Mohd. Ismail who was a pro forma defendant. Ashfaq,
1 he first plaintiff, died after the institution of the suit and
certain of the parties already on record were recorded as
his legal
representatives .. The
allegations in the plaint
briefly were that the 2nd d6fendant Mohd. Ismail was not
the sole proprietor or owner. of the 'Azamabad ,Tea Estate
and that for that reason, the mortgage in favour 0f the 1st
defendant, the mortgage-decree obtained by it and the sale
thereunder passed to it no title except to the extent at 2t
as. share belonging to Mohd. Ismail. The plaintiffs therefore
prayed for a decree declaring-
( 1) that Mohd. Ismail had only 2t as. share in the
. property and the remaining 13t as. share
belor.ged to the plaintiffs;
(2) that only 2!- as. share was sold under the mortgage decree and
purchased by the Na ti on al
Agency Co. Ltd. at the court sale.
The suit was instituted on 28th November, 1931 and
after the issues were settled, the suit was posted for trial on
22nd August, 1932. on which date the plaintiffs were absent,
no witnesses on their behalf were present, and their pleader
reported no instructions.
The suit was therefore directed
to be dilrnissed with costs in favour of the Nation:jl Agency
Co. Ltd. who was the only party present in Court.
It may
be mentioned that Mohd. Ismail never appeared during the
ltearing of the suit.
1964
Suraj
Ratan
Thirani
v.
Azamahad
Tea Co.
A7yansar
J,
204
SUPREl\iE COURT REPORTS
Before taking up for consideration certain points urged.
before us by Mr. Desai regarding the construction of 0. IX
r. 9 C.P.C. we might dispose of a contention raised by
him that Suit No. 58 of 1931 was filed fraudulently and
collusively and the dismissal was the result of a settlement
brought about collusively in order to defeat the plaintiffs'
rights. We consider that there is no factual basis to sustain
this plea for he could point to no definite proof in support,
and the most he could do was to refer us to certain suspicious
circumstances.
We cannot obviously base any decision or
rest any finding, on mere suspicion and we have no hesitation in saying that the submission does not deserve serious
consideration.
The next submission was that even the 2t as. share
of Ismail did not pass under the sale in execution of the
mortgage decree, because it was
said Ismail had been
adjudicated an insolvent in Insolvency Case 38 of 1931
by the Dist. Judge Purnia, as a result of which the properties which were the subject of the court-sale. had vested
· in the official receiver before the relevant date.
Though,
no doubt, an allegation regarding this matter was made in
the plaint and this was denied by the plaintiffs there is
nothing in the judgments of the courts below or in the
evidence to indicate that the necessary facts were proved
or that this point was urged with any seriousness at any
stage of the proceedings until in this Court. We have therefore nothing beyond the bare allegations and denials and
as the foll facts in relation to this matter were not placed
before the Court we hold that this plea is devoid of merits
and does not merit consideration.
It was next said that two of th~ plaintiffs in suit No. 58
of 1931, Nurul Huda and Habiba Khatun, a son and a
daughter of Azam Ali were really adults but were shown in
the cause titie as minors represented by their respective·
natural guardians as their next friends and that as these
adults could not in law he represented by persons purporting to act as their guardians they could not be held to be
parties tol the suit and hence their interests could not be
affected by the dismissal of the suit. This also is one of the
matters in respect of which the plaintiffs beyond a mere
pleading which was denied, made no grievance in the courts
'6 S.C.K
SUPREME COURT REPORTS
205
below and the facts in relation 10 this issue, namely, the age
of the two plaintiffs at the date of the plaint not having
been clearly proved, we do not find it possible to entertain
the plea at this stage.
Mr. Desai, then submitted that Ashfaq who had figured
as the first plaintiff in suit No. 58 of 1931 had already on
April 18, 1931 transferred his 2 as. 13 gandas and odd
share in Touzi No. 911 to one Pir Baksh from whom the
plaintiff obtained a conveyance by a deed dated September
2, 1943 of what he had purchased from Ashfaq.
For this
reason he urged that on the findings on the merits of the
title in favour of the plaintiffs on the first two defences we
have dealt with earlier the plaintiffs should have been granted
a decree to this share of Ashfaq in addition to the 8 pies
share decreed to them by the High Court. No doubt, if this
transaction were made out and was real, it would stand on
the same footing as the 8 pies share in regard to which a
decree was granted in favour of the plaintiffs by the judgment now under appeal.
We shall however consider this
matter after dealing with the point urged as regards the
construction of 0. IX. r. 9, Civil Procedure Code, which
was his main submission and which,
if
upheld, would
entirely eliminate the bar under this provision of law.
On this the first submission was that the rule which
spoke of the "plaintiff" being precluded from bringing a
fresh
suit created merely a
personal bar
against the
plaintiff in the first suit and that in the absence of words
referring to the representatives of the plaintiff or those
claiming under the plaintiff as in s. 11 or s. 47 of the Civil
Procedure Code, the bar was not attracted to cases where
the subsequent suit was by the heirs and assigns of that
plaintiff.
In support df this submission Mr. Desai invited
-our antention to the observations of Das J. in GoJ'l Ram
v. Jagannath Singh(') where this
argument was characterised as a
weighty
one
and
examined
elaborately.
Though the learned Judge decided this matter on quite a
-different line of _reasoning, he referred
to various . earlier
-Oecisions which appeared to him to favour the view sub·
11nitted to us by Mr. Desai and expressed his hesitation in
(I) l.L.R. 9 Pat. 447 at p. 454.
1964
Sura;
Ratan
Thirani
v.
Azamabad
Tea Co.
Ayyangar
}.
1964
Surdj
Ratan
Thirani
v.
.Azamabad
Tea Co.
Ayyangar /.
2C6
SUPREME COURT REPORTS
rejecting that construction.
We are not however impressed:
by the argument that the ban
imposed by 0. IX. r. 9
creates merely a personal bar or estoppel against the particular plaintiff suing on the same cause
of action and
leaves the matter at large for those claiming under him.
Beyond the absence in 0. IX. r. 9 of the words referring
· "to those claiming under the plaintiff" there is nothing to
warrant this argument. It has neither principle, nor logic
to commend it. It is not easy to comprehend how A who
had no right to bring a suit or rather who was debarred
from bringing a suit for the
recovery of property could
effect a transfer of his rights to that property and confer on
the transferee a right which he was precluded by law from
asserting.
There are, no doubt, situations where a person
could confer more rights on a transferee than what he
posses.sed but those are clearly defined exceptions which
would not include the case now O.Jl hand. · This argument
was addressed to the High Court and the learned Judges
characterised it as startling, a view which we share.
The
rule would obviously have no value and the bar imposed by
it would be rendered meaningless if the plaintiff whose suit
was dismissed for default had only to transfer the property
to another and the latter was able to agitate rights which
his vendor was precluded by law from putting forward.
Again to say that an heir of the plaintiff is in a better
position than himself and that the bar lapses on a plaintiff's
death, does not appeal to us as capable of being justified
by any principle or line of reasoning. In our opinion, the
word '.Plaintiff' in the rule should obviously, in order that
the bar may be effective. include his assigns and legal representatives.
It was next urged that 0. IX. r. 9 precluded a second
suit in respect of "the same cause of action" and that the·
cause of action on which Suit 58 of 1931 was laid and the·
present suit-Title suit 18 of 1943 was not the same and so
the bar was not attracted.
In view of this argument it is necessary to examine the·
cause of action on which the present suit has been filed
and compare and contrast with that in Suit 58 of 1931.
Closely analysed the material allegations to found the causeo
of action on which reliefs were claimed in the present suit
6 S.C.R.
SUPREME COURT REPORTS
were (i) That the Tea Estate was originally the property
of Azam Ali. When he died his estate was inherited by his
8 sons, his widows and a daughter.
That the registration
of the estate in the .name of Md. Ismail was as a co-sharer,
the property belonging beneficially to all the heirs.
This
position was not altered by the
termination of the lirst
lease and its renewal jn 1928 for a further period of 30
years.
All 1the co-heirs lived as a joint family with a
common mess and hence there was no question of any
adverse possession by Md. Ismail whose possession was not
as sole proprietor or exclusive.
The suit on the mortgage
was fraudulent and collusive, by Ismail colluding with the
mortgagee to defraud his co-heirs. Details were mentioned
as evidence of the fraud and collusion.
The sale in pursuance of the decree which was passed ex-parte was also
fraudulent.
On the date of the auction Ismail had no title
even to the 2t as. share because of his adjudication as an
insolvent earlier. The manner in which the 8 pies share of
the daughters was obtained by the plaintiff was set out, and
similarly the purchase by them through Pir Baksh of the
share of Ashfaq.
The other purchases by the plaintiffs
whereby they claimed to have obtained the 16 as. share in
the Tea Estate were set out.
The plaint then went on to
refer to suit 58 of 1931 and set out their case as regards
the nature of that litigation and its effect.
Lastly, they
pleaded that they
had
obtained
possession of the Tea
gardens on October 10, 1934 and that on the next day
the defendants moved the Magistrate for an order under
s. 144, Criminal Procedure Code and that the Magistrate
had made an order against the plaintiffs restraining them
from interfering with the possession of the defendants which
necessitated their bringing the suit for the reliefs we have
set out earlier.
We have already summarised the material allegations
wnich were made in Suit 5 8 of 1931. The material difference between the cause of activn alleged in the present
suit consists only in the addition of the allegations about
the possession and dispossession in October, 1934.
This
suit is based on the title of the plaintiffs by reason of their
. purchas.!s and admittedly their vendors would have nothing
to convey if the court sale conveyed, as it purported t~
1964
Suraj
Ratan'
Thirani
v.
A.zamabad·
Tea Co.
Ayyangar J.-
1964
.Suraj
Rutan
:J. hirant
v.
Azamabad
lea <...·o.
208
ST JPREME COURT REPORTS
convey, the full 16 as. interest in the Tea garden to the
National Agency Co. Ltd.
It was
because of this that
allegations were made to sustain their title and this could
be done only if they established want of title to the extent
of 16 as. share in Ismail, the consequent ineffectiveness of
the mortgage effected by Ismail and of the decree obtained
in pursuance thereof and of the court sale in execution of
that decree, being confined at
the most to 2! as. share
belonging to Ismail.
These allegations which were fundamental to the plaintiffs' case were
identical with those
which had been made in suit No. 58 of 1931.
Bearing
these features in mind,
the
proposition that Mr. Desai
submitted for our acceptance was briefly this.
A cause of action is a bundle of facts on the basis of
which relief is claimed. If in addition to the facts alleged
in the first suit, further facts are alleged· and relief sought
on their basis also, and he explained the additional facts
to be the allegations about possession and dispossession in
October, 1934, then the position in law was that the entire
complexion of the suit is changed with the result that the
words of 0. IX. r. 9 "in respect of the same cause of
.action" are not satisfied and. the plaintiff is entitled to te-
. agitate the entire cause of action in the second suit.
In
·Support of this submission, learned counsel invited our
attention to certain observation in a few decisions to which
we do not consider it necessary to refer as we do not see
any substance in the argument.
We consider that
the
test
adopted by the Judicial
· ·Committee for determining
the
identity of the cause of
action in the two suits in Mohammed Khalil
Khan and
Ors. v. Mahbub Ali Mian and Ors.(') is sound and expresses correctly the proper interpretation of the provision.
In that case Sir Madhavan Nair, after an exhaustive dis-
. cussion of the meaning of the expression "same cause of
action" which occurs in a similar context in para ( 1) of
0. II r. 2 of the Civil Procedure Code, observed:
"In considering whether the cause of action in the
subsequent suit
1r.
the same or not, as the
cause of action in the previous suit, the test
(') 75 !. A. I2r.
6 S.C.R.
.SUPREME COURT REPORTS
209
to be applied is: are the causes of action in the
two
suits
in substance-not technicallyidentical?"
The learned Judge thereafter referred to an earlier decision
of the Privy
Council in Soorijomonee Dasee v. Suddt:>-
nund(') and extracted the following passage as laying down
the approach to the question :
"Their Lordships are
of
opinion that the term
'cause of action' is to be construed with reference rather to the substance than to tho
form of action ........ ".
Applying this test we consider that the essential bundle ol
facts on which the plaintiffs based their title and their right
to relief were identical in the two
suits.
The property
sought to be recovered in the two suits was the same.