MUPPANNA MALKAPPA HUMBI Vs. GAJANAN URBAN CO-OPERATIVE BANK LTD
LAWS(BOM)-1946-3-26
HIGH COURT OF BOMBAY
Decided on March 01,1946

MUPPANNA MALKAPPA HUMBI Appellant
VERSUS
GAJANAN URBAN CO-OPERATIVE BANK LTD Respondents


Referred Judgements :-

MORRIS V. ROBINSON [REFERRED TO]
BUCKLAND V. JOHNSON [REFERRED TO]
UNITED AUSTRALIA,LD. V. BARCLAY BANK,LD. [REFERRED TO]
SMITH V. BAKER [REFERRED TO]
MAHOMED HOSSEIN V. KOKIL SINGH [REFERRED TO]
MULGUND CO-OPERATIVE CREDIT SOCIETY VS. SHIDLINGAPPA ISHWARAPPA MANVI [REFERRED TO]
HANMANT BHIMRAO KALGHATGI VS. GURURAO SWAMIRAO KULKARNI [REFERRED TO]


JUDGEMENT

Rajadhyaksha, J. - (1.)THIS is an appeal against the order passed by the First Class Subordinate Judge with appellate powers, Dharwar, reversing the decree of the Subordinate Judge of Haveri in Suit No.139 of 1941. The trial Court had decreed the plaintiffs' suit but the First Class Subordinate Judge reversed that decree and dismissed the plaintiffs' suit with costs in both Courts. The plaintiffs have now come in second appeal.
(2.)IN Suit No.139 of 1941, out of which this second appeal arises, the facts were these. On September 1, 1929, Shri Gajanan Urban Co-operative Bank, Limited, Byadgi, (defendant in this case) obtained an award against one Shidlingappa and others (plaintiffs) under Section 54 of the Bombay Co-operative Societies Act, 1925. Under Section 59 of the said Act, the bank obtained a certificate from the Registrar to execute the award in the Court of the Subordinate Judge at Haveri. After having obtained the certificate, it filed darkhast No.404 of 1930 in the Haveri Court for Rs. 1,000 against Shidlingappa and the plaintiffs. That darkhast was disposed of on April 10, 1931. Then in 1932 it filed a second darkhast, No.1357 of 1932, against the judgment-debtors, and this darkhast was disposed of on July 11, 1933. The bank then made a third attempt by instituting a third darkhast, No.39 of 1933, and this darkhast was disposed of on April 10, 1934. Then it made a fourth attempt by instituting darkhast No.193 of 1937 on March 18, 1937. The executing Court held that Article 181 of the Limitation Act applied to such a darkhast and that the darkhast was therefore barred by limitation. The bank thereupon preferred civil appeal No.253 of 1937 against the decision in the District Court of Dharwar. When the appeal came up for hearing, a purshis was filed by which the bank agreed that the appeal may be dismissed provided the question of limitation was kept open. The judgment-debtors also agreed to this proposal, and thereupon the appeal was dismissed. After these proceedings in the Subordinate Judge's Court at Haveri, the bank obtained from the Registrar a certificate under Section 59 (1) (b) of the Bombay Co-operative Societies Act and applied to the Collector for recovery of their dues as arrears of land revenue. It was then that the plaintiffs filed the present suit for an injunction against the bank restraining it from executing the award, No.54 of 1929, through the revenue authorities after getting a declaration that the said award was time-barred and that the bank was not entitled to recover anything from the plaintiffs on the strength of that award. The contention of the plaintiffs was that the Registrar had no authority to grant a certificate in such cases and the bank had no right to execute a time-barred award in the revenue Court.
The learned trial Judge held that the civil Court had jurisdiction to question the authority of the Registrar to issue a certificate under Section 59 (1) (b) even after the execution of the award by the civil Court. He further held that the darkhast had been held to be time-barred and that in such a case the Registrar had no power to issue a certificate so as to enable the Collector to execute the award, the execution of which was held to be barred by limitation in darkhast No.193 of 1937. Accordingly, he issued an injunction restraining the bank from executing the award, No.54 of 1929, through the intervention of the revenue authorities. When this matter went in appeal before the learned First Class Subordinate Judge with appellate powers, he observed that the trial Court was wrong in holding the view that the decree was held to be barred by limitation in darkhast No.193 of 1937. He pointed out that in the appeal by the bank to the District Court the question of limitation had been specifically kept open. He was further of opinion that there was nothing in the Bombay Co-operative Societies Act of 1925 to prevent the Registrar from issuing a fresh certificate under Section 59 (1) (b) so as to enable the party concerned to go before the Collector and to recover the amounts due to it as if they were arrears of land revenue. He also pointed out that the mere fact that the bank had chosen to pursue its remedy in the Subordinate Judge's Court did not preclude it from having recourse to the alternative remedy which is provided under Section 59 (1) (b) of the Act. In view of these findings the learned First Class Subordinate Judge allowed the appeal and dismissed the plaintiffs' suit with costs in both the Courts. Against that order this appeal (No.1035 of 1943) has been preferred to this Court by the original plaintiffs.

In this appeal one of the points taken in the memo. of appeal is that the civil Court having held in darkhast No.193 of 1937 that the execution of the award decree was barred by time, that decision was binding upon the bank and that therefore the Registrar had no right to revive a dead claim by issuing a certificate under Section 59 (1) (b) of the Act. In this connection it has got to be remembered that the civil Court did not hold that the claim upon the award was barred by time. When the matter went in appeal to the District Court in appeal No.253 of 1937, it was submitted before the learned Judge that the appeal might be dismissed provided the question of limitation was kept open. Both the parties agreed in that submission and therefore it cannot be held that the civil Court had come to the conclusion that the darkhast was time-barred. Even assuming that the point was decided in that darkhast, that decision was, in our opinion, clearly wrong. In Bhimsen v. Urban Bank, Muddebihal (1940) 49 Bom. L. R. 160, which we have decided today, we have taken the view that the proper article to apply is Article 182 and not Article 181. In that view the execution of the decree was not barred when the Registrar issued his certificate under Section 59 (1) (b ). Moreover, as pointed out by Mr. Coyajee for the respondent bank, merely because the civil Court held that the remedy of the party under Section 59 (1) (a) was barred, it does not necessarily follow that the claim ipso facto lapses. It is a well-established rule of law in cases which are not governed by Section 28, limitation merely bars the remedy but does not extinguish the title. Even assuming that the civil Courts are right in holding that the remedy of the parties is barred in the civil Court by reason of the application of Article 181 of the Limitation Act, it does not follow that the award becomes infructuous; and if it was open to the party, under the alternative remedy given to it, to apply to the Collector for a certificate from the Registrar to recover the amount as arrears of land revenue, it does not appear that that remedy would not be available to the party concerned. As pointed out by Garth C. J. in Mahomed Hossein v. Kokil Singh, (1881) I. L. R. 7 Col. 91 "it is erroneous to suppose that because the right to take out execution upon a decree is barred by limitation, the decree itself has ceased to subsist; the decree remains, and will ever remain, in full force, as an adjudication of the rights of the parties". If under the law it is open to a party to execute that decree in another forum, and if resort to that forum is not barred by any statute of limitation, then there is nothing in law to prevent that party from resorting to that remedy, and it is conceded before us that so far as execution of the award decree by the revenue authority is concerned, there is no bar of limitation.

(3.)IT was then contended before us by Mr. Jahagirdar that as soon as a certificate was issued by the Registrar under Section 59 (1) (a) of the Bombay Co-operative Societies Act, the award must be deemed to have been a decree, and after the award assumes this character, it is no longer open to the Registrar to issue a fresh certificate under Section 59 (1) (b) of the Co-operative Societies Act. For this contention reliance was placed principally on the words of Section 59 (1) (a) in which it is stated that "on a certificate signed by the Registrar the award shall be deemed to be a decree of a civil Court and shall be executed in the same manner as a decree of such Court. " IT is true that this amendment was made by Act XVI of 1943, but we have, in the judgment which was delivered this morning, held that this amendment only clarifies the position as it existed even before that Act came into force. IT was therefore argued that when the original certificates were issued in this case in 1930, the award immediately assumed the character of a decree and therefore became merged in the decree, and thereupon it was not competent for the Registrar to issue a new certificate for the execution of a non-existent award. In our opinion, this contention cannot be accepted. On the terms of the section itself, the award upon the issue of a certificate by the Registrar does not become a decree of a civil Court, but must be deemed to be a decree of a civil Court, and unless; it is deemed to be a decree of a civil Court, it would not be competent to a civil Court to execute it. IT is only for the purpose of enabling the civil Courts to execute the award of the Registrar under Section 54 that it has got to be given the force of a decree, and for that purpose Section 59 (1) (a) has been enacted. If the contention of Mr. Jahagirdar that the award on the issue of a certificate becomes a decree and becomes merged in it was to be accepted, then the second part of Section 59 (1) (a) becomes redundant. If, on a certificate by the Registrar, the award becomes a decree of a civil Court, it was no longer necessary to state, that it shall be executed in the same manner as a decree of such Court. We therefore think that even on the issue of a certificate by the Registrar, the award does not become a decree of a civil Court.
The second point that was urged by the learned advocate for the appellants, is that Section 59 (1) gives two alternative remedies to a person in whose favour an award has been given. The person could, on a certificate signed by the Registrar, execute it in the same manner as a decree of a civil Court or in the alternative he could apply for the recovery of the amounts due to him under the. rules for the time being in force for the recovery of the arrears of land revenue, provided the application is accompanied by a certificate signed by the Registrar or by an Assistant Registrar to whom the said powers have been delegated by the Registrar. It was argued by Mr. Jahagirdar that these are two alternative remedies and that if a person chooses to resort to the first remedy and obtains a certificate and tries to execute it as a decree of a civil Court, he is thereby for ever precluded from resorting to the second remedy. In this connection he invited our attention to the fact that the word "or" occurs between the Clauses (a) and (b) and Clause (b) is not followed by the words "or both". In our opinion, this contention also cannot be accepted. The word "or" occurring between Clauses (a) and (b) gives to the person in whose favour an award has been given two alternative remedies, either of which it is open to him to pursue. Section 51 of the Civil Procedure Code enumerates the various ways in which a decree of a civil Court can be executed, and it is well recognised that it is open to the decree-holder to pursue all or any of his remedies at the same time or even the same remedy at different places. It could not be contended with reference to Section 51 of the Civil Procedure Code that a resort to one remedy by implication precludes the decree-holder from resorting to other remedies. Our view gains support from the observations of Broomfield J. in Mulgund Co-operative Society v. Shidlingappa Ishwarappa (1941) 43 Bom. L. R. 807. The learned Judge observed (p. 813) : The learned trial Judge also attached importance to the fact that the plaintiff abandoned his proceeding in the Sub-Judge's Court and had recourse to the procedure under the Bombay Land Revenue Code. But this the society is permitted to do under the provisions of the Bombay Co-operative Societies Act and we ate unable to see that this conduct of the plaintiff affects the principles laid down in the cases to which I have referred.

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