Maharajadhiraj Sir Rameshwar Singh Bahadur v. Hitendra Singh And Others

Maharajadhiraj Sir Rameshwar Singh Bahadur v. Hitendra Singh And Others

(Privy Council)

P.C.A. No. 5 of 1923 from Patna Appeal No. 20 of 1921 Appellants: Maharajadhiraj Sir Rameshwar Singh Bahadur | 26-06-1924

Lord Shaw, J.

1. This is an appeal from a judgment and decree of the High Court of judicature at Patna, dated the 19th November, 1920. It reversed a judgment and order of the Subordinate Judge of Darbhanga dated 16th June, 1919. Their Lordships refer to the judgment of the Board just announced in the case between the same parties, namely the Maharaja as judgment-creditor, and the Receiver of the property and the judgment-debtors.

[vide A.I.R. 1924 P. C. 202 --Ed.]

2. A Receiver was appointed in 1910 as a Receiver upon the entire estate of the judgment debtors. It is not disputed that this estate included, and still includes, the mortgaged property of Jai Nagar which is in question in this case Jai Nagar was expressly and by name included in the scheduled properties falling within the order for receivership. Under transactions, upon which it is not necessary to enter, the appellant possessed the property, under an arrangement that he should be debited with the sum of 1,600 rupees per annum in respect thereof. The arrangement appears for a period of years to have been not to the disadvantage of the estate. Of late years, however, the rental of the property has exceeded the 1,600 rupees and, in or about the year 1918-1919, amounted to over 2,700 rupees per annum.

3. In these circumstances the Receiver brought his suit before the Subordinate Judge of Darbhanga, claiming :--



1. That the decree holder may be directed to render an account of all his collections of the said mauza from the date of the decree to the present date.

2. That the decree-holder may be directed to give up and makeover possession of the said mauza to the Receiver with such amount as the decree-holder may be liable to pay to the judgment debtors with interest at 12 per cent, per annum.

The question of accounts will be afterwards dealt with. The immediate question is whether the appellant "do make over to the Receiver khas possession of the judgment-debtors share of Mauza Jai Nagore." The case has been carefully considered by the High Court and their Lordships see no reason to differ from these paragraphs of the judgment :--



The decree which he (i.e., Appellant decree-holder) got was the usual mortgage-decree contemplated by O. 34, R. 4, and whatever rights he may have had under the transaction ho must be deemed to have given up these rights, once he asked for and obtained a decree for sale in respect of the property in question. That being so, have the judgment-debtors a present right to remove the decree-holder from the possession of the property in question In my view they have, because there is a prior order passed by a Court of competent jurisdiction appointing a Receiver and asking the Receiver to take charge of all the properties comprised in the mortgage. That order was final between the parties, and it was not open to the learned Subordinate Judge to ignore or disregard that order...

No doubt there was an arrangement by which the decree-holder remained in possession of the properties and applied the income towards part satisfaction of the debt due to him, Subsequently a Receiver was appointed, who is a person to guard the interest of all the parties concerned, and that Receiver was specifically directed to take charge of all the properties. In my view there cannot be any doubt whatever that the Receiver ought to be directed to take charge of the property in question, especially as it is suggested by Mr. K. B. Dutt, on behalf of the judgment-debtors, that property has an income of Rs. 2,711-15-0.

4. The result will be that the Receiver will, in future, administer and manage this mauza as part of the estate under his charge. And it may be that, looking inter alia to the prolonged difficulty with the appellant the respondent may in the circumstances exercise his power of sale of this mauza--such a power resting with him in accordance with the judgment just pronounced in the other appeal.

5. With regard to the accounting, in respect of the returns from the mauza, the learned Counsel for the Receiver stated to the Board on behalf of the Receiver that he was willing that the years prior to the institution of the suit during which the appellant was in possession under an arrangement for an annual debit of 1,600 rupees--those years should not be gone back upon. It was further explained that a statement made by the appellant in his petition of objection of 14th December, 1918, was correct:-- " 4. Although previously orders for the deduction of 1,600 rupees from the decretal money were passed by this Court in suit No. 62 of 1911, and No. 67 of 1914, it was due to an oversight as the decision of the Subordinate Judge of Muzaffarpur was lost sight of. The petitioners cannot take advantage of that mistake and this petitioner, the opposite party (that is to say the present appellant), has no objection to the deduction of Rs. 1,471-3-5. It is, therefore, prayed that the petition filed by the petitioners for an annual deduction of 1,600 rupees be disallowed and that Rs. 1,471-3-5 only be ordered to be set off annually (against the decretal money)." In their Lordships view it is proper that this correction should be given effect to.

6. In the matter of accounting it may be sufficient to satisfy the justice of the case that accounts be ordered upon the footing, first that the Receiver do obtain khas possession of this mauza from the appellant, and in the accounts he be credited by the appellant with Rs. 1,471-3-5 per annum as due for the appellants possession up to 19th November 1920, being the date of the decree of the High Court. Thereafter the accounts will embrace the entire receipts.

7. With this variation their Lordships will humbly advise His Majesty that that decree be affirmed with costs.

Advocate List
For Petitioner
  • Respondents/Defendant:? George Lowndes and? B. Dube
For Respondent
  • Property
Bench
  • Lords? Shaw Blanesburgh Ameer Ali ,
  • Mr.
Eq Citations
  • (1924) 47 MLJ 286
  • (1924) 47 MLJ 294
  • 1924 (26) BOMLR 1153
  • 82 Ind. Cas. 794
  • AIR 1924 PC 202
  • LQ/PC/1924/48
Head Note

SPECIFIC PERFORMANCE — SPECIFIC PERFORMANCE OF CONTRACT — Specific performance of contract of sale — Sale of mortgaged property — Appointment of Receiver — Effect of — Decree-holder in possession of mortgaged property under an arrangement that he should be debited with the sum of Rs. 1,600 p.a. in respect thereof — Rental of the property exceeding Rs. 1,600 p.a. — Appointment of Receiver as a person to guard the interest of all parties concerned — Held, Receiver should be directed to take charge of the property — Decree-holder to be removed from possession — Receiver to administer and manage the property as part of the estate under his charge — Decree-holder to be credited with Rs. 1,471-3-5 p.a. as due for his possession up to the date of the decree of the High Court — Thereafter the accounts to embrace the entire receipts