Supreme Court Dismisses Appeal by Judgment Debtors in Pre-emption Decree Execution Due to Finality of Decree and Binding Inter-Partes Effect. Final Pre-emption Decree Passed Before Constitutional Declaration in Atam Prakash v. State of Haryana Cannot Be Reopened, and Subsequent Amendment to Punjab Pre-emption Act, 1913 Has Prospective Application Only.

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Case Note & Summary

The case before the Supreme Court of India involved civil appeals preferred by the judgment debtors against an order of the High Court dated March 20, 1990, which had allowed a civil revision filed by the decree holder and set aside the executing court's order refusing execution of a pre-emption decree. The litigation had its origin in the transfer of agricultural land in favour of appellant No.1 by Kishan Chand and Jagdish Chand in 1980. The respondent, Hukum Chand, filed a suit for pre-emption in respect of that land. The suit was decreed on August 27, 1983. The appellants' first appeal was dismissed on November 30, 1983, and their second appeal was dismissed by the High Court on April 5, 1984. The decree holder thereafter took steps in 1984 to execute the decree for pre-emption of the lands in question. Before the executing court, the appellants raised an objection that because only a share in the land had been transferred, the decree passed for pre-emption could not be executed. The executing court accepted that objection. The decree holder then filed a civil revision before the High Court, which was allowed by the impugned order. The High Court distinguished an earlier Full Bench judgment and held that the decree was for specific khasra numbers sold to the vendee, and under the Code of Civil Procedure the decree holder was entitled to physical possession of those specific khasra numbers, while leaving it open to the judgment debtors to seek adjustments at the time of partition. In the Supreme Court, the appellants advanced two principal arguments. First, they contended that since this Court in Atam Prakash v. State of Haryana (1986) had declared the relevant provisions of the Punjab Pre-emption Act, 1913 unconstitutional, the decree passed in the pre-emption suit had become a nullity and could not be executed. Second, they relied on the substituted Section 15 of the Punjab Pre-emption Act, 1913, notified on May 7, 1995, asserting that after that amendment no right of pre-emption could be enforced at all. The Supreme Court rejected both submissions. On the first point, the Constitution Bench in Atam Prakash had expressly stated that where suits had been decreed and the decrees had become final with no appeals pending, those decrees would remain binding inter-parties and the declaration would be of no avail to them. The Court noted that in the present case the suit was decreed on August 27, 1983, affirmed by the appellate court on November 30, 1983, and the second appeal dismissed on April 5, 1984; at no stage had the appellants questioned the validity of the decree before the Supreme Court. Consequently, when the High Court allowed the civil revision on March 20, 1990, all decrees had attained finality, and the direction in Atam Prakash applied fully. The High Court therefore rightly held that notwithstanding the subsequent constitutional declaration, the pre-emption decree was binding between the parties. On the second point, the Court construed the substituted Section 15 as prospective in operation; the provision vesting the right of pre-emption in a tenant could not affect judgments and decrees passed in 1983 and affirmed in 1984. The Court found that the impugned High Court order was in terms of the direction given by the Constitution Bench and saw no reason to take a contrary view. Accordingly, the Supreme Court dismissed the appeals with no order as to costs, thereby upholding the decree holder's right to execute the pre-emption decree for specific khasra numbers.

Headnote

A) Civil Procedure - Execution of Decree for Immovable Property - Physical Possession of Specific Khasra Numbers - Code of Civil Procedure, 1908 - The High Court held that a decree for specific khasra numbers sold to the vendee was executable for physical possession, leaving adjustments at partition; the Supreme Court found no reason to disturb this as the impugned order was in terms of Atam Prakash direction. Held that decree holder entitled to physical possession of specific khasra numbers.

B) Constitutional Law - Finality of Decrees and Prospective Overruling - Binding Inter-Partes Effect of Pre-emption Decree - Punjab Pre-emption Act, 1913; Code of Civil Procedure, 1908 - Where a suit for pre-emption was decreed and all appeals dismissed before the Constitution Bench declared provisions of the Act unconstitutional, the decree attained finality and remained binding inter-parties; declaration in Atam Prakash was of no avail to parties. Held that the High Court correctly rejected the nullity objection.

C) Statutory Interpretation - Prospective Operation of Amendment - Section 15 Substituted in 1995 - Punjab Pre-emption Act, 1913, Section 15 - The substituted Section 15 vesting right of pre-emption in tenant operated prospectively and did not affect a decree passed in 1983 and affirmed in 1984. Held that no right of pre-emption after amendment could be enforced to reopen a final decree.

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Issue of Consideration

Whether a pre-emption decree that became final before the Constitution Bench decision in Atam Prakash v. State of Haryana declaring provisions of Punjab Pre-emption Act unconstitutional can be executed; whether the substituted Section 15 of Punjab Pre-emption Act, 1913 affects decrees passed earlier; whether decree for specific khasra numbers out of joint land can be executed for physical possession.

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Final Decision

The Supreme Court dismissed the appeals with no order as to costs. It upheld the High Court's order dated 20 March 1990 allowing the civil revision. The Court held that the pre-emption decree attained finality before the declaration in Atam Prakash and was binding inter-parties; the substituted Section 15 of Punjab Pre-emption Act, 1913 operated prospectively and did not affect the 1983 decree. The decree holder was entitled to execute the decree for specific khasra numbers.

Law Points

  • Final decrees binding inter-partes
  • declaration of unconstitutionality in Atam Prakash case not applicable to decrees already final
  • executing court cannot go behind decree
  • substituted Section 15 of Punjab Pre-emption Act
  • 1913 operates prospectively
  • decree for specific khasra numbers out of joint land executable for physical possession
  • adjustments at partition permissible.
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Case Details

1996 LawText (SC) (08) 66

1996-08-22

N.P. Singh, K. Venkataswami

Smt. Shanti Devi & Anr

Hukum Chand

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Nature of Litigation

Execution of a decree for pre-emption of agricultural land; civil revision allowed by High Court; Supreme Court appeal against that order.

Remedy Sought

Appellants sought setting aside of the High Court order dated 20.03.1990 allowing the civil revision and rejecting their objections that the decree was a nullity and not executable.

Filing Reason

Appellants objected before the executing court that only a share in the land was transferred, so the pre-emption decree could not be executed; later argued the decree became nullity after Atam Prakash and that substituted Section 15 extinguished the right of pre-emption.

Previous Decisions

Suit decreed on 27.08.1983; first appeal dismissed on 30.11.1983; second appeal dismissed by High Court on 05.04.1984; executing court accepted objection that decree cannot be executed; High Court allowed civil revision on 20.03.1990 holding decree executable.

Issues

Whether a decree for pre-emption that had become final before the Constitution Bench decision in Atam Prakash v. State of Haryana declaring provisions of Punjab Pre-emption Act, 1913 unconstitutional could be executed or was a nullity. Whether the substituted Section 15 of Punjab Pre-emption Act, 1913, notified on 7 May 1995, had retrospective effect so as to affect decrees passed in 1983 and affirmed in 1984. Whether a decree for specific khasra numbers out of joint land could be executed by delivery of physical possession under the Code of Civil Procedure.

Submissions/Arguments

Appellants argued that the pre-emption decree became a nullity after this Court in Atam Prakash v. State of Haryana declared the relevant provisions of Punjab Pre-emption Act, 1913 unconstitutional and therefore could not be executed. Appellants contended that after the substituted Section 15 of Punjab Pre-emption Act, 1913, notified on 7 May 1995, no right of pre-emption could be enforced at all. Respondent decree holder maintained that the decree was for specific khasra numbers sold by the vendor and was executable for physical possession, as the High Court held, and that the Full Bench judgment cited by appellants had no application. Respondent asserted that the decree had attained finality and was binding inter-parties despite the subsequent declaration in Atam Prakash.

Ratio Decidendi

Decrees that have become final before a subsequent declaration of unconstitutionality are binding inter-parties and the declaration is of no avail to parties to such decrees; executing court cannot go behind a final decree; a substituted statutory provision operates prospectively unless expressly or by necessary implication retrospective; a decree for specific khasra numbers out of joint land is executable for physical possession under the Code of Civil Procedure, with adjustments left to partition.

Judgment Excerpts

The proposition laid down in the Full Bench judgment, referred to above, has no applicability to the facts of the present case. In that case the question was as to whether the sale was of specific khasra No. out of the joint land. The question of getting the physical possession of the specific khasra nos. out of the joint holding is governed by the provisions of the Code of Civil Procedure, which provides as to how the decree for immovable property is to be executed. Admittedly, the decree is for specific khasra nos. which were sold to the vendee by the vendor. That being so, the decree-holder is entitled to the physical possession of the specific khasra nos. though it may be open to the judgment debtors to make adjustments at the time of partition, if any. We are told that there are few cases where suits have been decreed and the decrees have become final, no appeals having been filed against those decrees. The decrees will be binding inter-parties and the declaration granted by us will be of no avail to the parties thereto. On a plain reading the aforesaid section has been introduced prospectively and there is no question of the said section affecting in any manner the judgment and decree passed in the suit for pre-emption as early as in the year 1983 affirmed by the High Court in the second appeal in the year 1984.

Procedural History

Suit for pre-emption decreed on 27.08.1983; first appeal dismissed on 30.11.1983; second appeal dismissed by High Court on 05.04.1984; execution proceedings initiated in 1984; executing court accepted objection that decree cannot be executed; civil revision filed by decree holder; High Court allowed civil revision on 20.03.1990; special leave petition against order dated 05.04.1984 filed after 12 years in 1996; present appeals against High Court order dated 20.03.1990 dismissed by Supreme Court on 22.08.1996.

Acts & Sections

  • Punjab Pre-emption Act, 1913: Section 15 (substituted)
  • Code of Civil Procedure, 1908:
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