Supreme Court Allows Appeal in Partition Suit Limitation Dispute. Limitation for Execution of Final Decree in Partition Runs Only After Final Decree on Stamp Paper is Drawn and Signed, Not from Date of Direction to Prepare Decree.

In Favour of Accused
  • 0
Judgement Image
Font size:
Print

Case Note & Summary

The dispute arose from a partition suit where a preliminary decree was passed on August 2, 1955 declaring that respondent Chandrakant was entitled to 1/6th share and appellants were entitled to 5/6th share in suit properties. The trial court directed preparation of final decree on April 19, 1958. The respondent supplied non-judicial stamps for his 1/6th share and a final decree was engrossed and signed on January 11, 1961. The appellants did not supply stamps, so no final decree was passed for their share. Their earlier execution attempts were dismissed, including Darkhast No.70 dismissed on March 13, 1968 as barred by limitation. The High Court in First Appeal No.605/68 held that no decree existed for execution. On August 14, 1975, appellants filed Misc. Application No.538/75 to accept stamps and pass final decree, which the trial court allowed on February 3, 1976 holding not barred by limitation. However, the High Court in First Appeal No.229/76 held on March 7, 1977 that limitation began from the date direction was given to pass final decree and thus barred; the Division Bench dismissed LPA 15/77 in limine on April 7, 1977. The Supreme Court examined when limitation begins to run for filing an application to pass final decree on stamped papers. The Court analyzed provisions of CPC and Limitation Act, 1908, and held that a preliminary decree only declares shares and is not executable; a final decree must divide property by metes and bounds and be engrossed on stamp paper. Since no final decree was drawn working out the rights of all parties, limitation had not begun to run against the appellants. The Court allowed the appeals and set aside the High Court's order, restoring the trial court's order accepting stamps and directing final decree.

Headnote

A) Civil Procedure - Decree - Preliminary and Final Decree - Code of Civil Procedure, 1908, Section 2(2), Order 20 Rules 7 and 18 - A preliminary decree in a partition suit declares the rights and shares of parties and leaves actual division to be worked out in further proceedings; a final decree must specify division by metes and bounds and be engrossed on stamped paper. The Supreme Court held that more than one final decree can be passed and that the final decree becomes executable only when it conclusively determines the rights of all parties. (Paras 3-5, 7-8)

B) Limitation - Execution of Decree - Commencement of Limitation - Limitation Act, 1908, Article 182 - Limitation for execution of a final decree in a partition suit starts from the date the final decree is drawn up on non-judicial stamp paper and signed by the court, not from the date when direction to prepare final decree is given. The Supreme Court rejected the High Court's view that limitation ran from the direction date and held that no executable decree existed until a final decree working out all shares was passed. (Paras 6-10)

C) Partition - Partial Final Decree - Effect on Other Co-sharers - Code of Civil Procedure, 1908, Order 20 Rule 18(2) - A final decree passed only for one co-sharer's share without division by metes and bounds does not trigger limitation against other co-sharers; no Commissioner was appointed and no final decree was passed relating to all, so the application for final decree was not barred by limitation. The Supreme Court held that the preliminary decree only declared shares and the partial final decree was not an executable decree qua the appellants. (Paras 5, 7-10)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

When does limitation begin to run for filing an application to pass final decree on stamped papers after preliminary decree for partition, especially where a partial final decree was passed for one party's share?

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

Supreme Court allowed the appeals, set aside the High Court's judgment, and held that limitation for execution of a final decree in a partition suit begins only from the date a final decree is drawn up on stamped paper and signed by the court, working out rights of all parties; since no such final decree had been passed regarding appellants' share, their application was not barred by limitation and the trial court's order accepting stamps and directing final decree was restored.

Law Points

  • A preliminary decree in partition suit only declares rights and shares
  • final decree must divide by metes and bounds and be engrossed on stamp paper
  • limitation for execution of final decree runs from date final decree is drawn up on stamp paper and signed
  • not from direction
  • more than one final decree can be passed
  • partial final decree for one sharer does not start limitation for others
  • no executable decree exists until final decree working out all shares is passed.
Subscribe to unlock Law Points Subscribe Now

Case Details

1995 LawText (SC) (03) 45

1995-03-20

K. Ramaswamy, B.L. Hansaria

1995 AIR 1211, 1995 SCC (3) 413, JT 1995 (3) 186, 1995 SCALE (2)318

Not mentioned for appellant; Smt. Jaishree Wad for respondent

Shankar Balwant Lokhande (Dead) By L.Rs.

Chandrakant Shankar Lokhande & Anr.

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Civil appeal by special leave against dismissal of LPA 15/77 by Bombay High Court, arising from partition suit where appellants sought to pass final decree after partial final decree for respondent's share; issue of limitation for such application.

Remedy Sought

Appellants sought to set aside High Court's order holding their application barred by limitation and to allow Misc. Application No.538/75 to accept non-judicial stamps and pass final decree for their 5/6th share.

Filing Reason

Preliminary decree declared shares; respondent obtained final decree for his 1/6th share but appellants did not supply stamps; earlier execution attempts failed as barred; appellants filed application to pass final decree, which respondent contested as time-barred.

Previous Decisions

Trial court allowed application on 03.02.1976; Single Judge of High Court allowed First Appeal No.229/76 on 07.03.1977 holding barred; Division Bench dismissed LPA 15/77 in limine on 07.04.1977.

Issues

When does limitation begin to run for filing an application to pass a final decree on stamped papers after a preliminary decree for partition? Whether a partial final decree passed for one co-sharer starts limitation for execution against other co-sharers despite no division by metes and bounds.

Submissions/Arguments

Respondent contended that limitation began to run when the right to apply accrued, and the application was filed beyond three years or twelve years, thus barred; relied on Privy Council and High Court decisions. Appellants' position (as accepted by trial court) was that limitation did not begin until a final decree working out their share was passed, since no executable final decree existed qua them.

Ratio Decidendi

For execution of a final decree in a partition suit, limitation under Article 182 of Limitation Act, 1908 commences only from the date a final decree is drawn up on non-judicial stamp paper and signed by the court, working out the rights of all parties; a preliminary decree declaring shares is not executable and a partial final decree for one co-sharer does not trigger limitation against other co-sharers; until a final decree dividing properties by metes and bounds is passed, there is no executable decree.

Judgment Excerpts

The crucial question for consideration is as to when the limitation begins to run for filing an application to pass final decree on stamped papers. A preliminary decree is one which declares the rights and liabilities of the parties leaving the actual result to be worked out in further proceedings. It is settled law that more than one final decree can be passed. Until the rights in the final decree proceedings are worked out qua all and till a final decree in that behalf is made, there is no formal expression of the adjudication conclusively determining the rights of the parties with regard to the properties for partition...

Procedural History

On 2 Aug 1955, preliminary decree passed in Special Civil Suit No.296/49 declaring shares. On 19 Apr 1958, order directing preparation of final decree. On 19 Dec 1960, respondent supplied non-judicial stamps for 1/6th share. On 11 Jan 1961, final decree engrossed for respondent's share. Darkhast No.41/63 filed by appellants for execution of preliminary decree, dismissed as withdrawn. Darkhast No.70 filed in 1965, dismissed on 13 Mar 1968 as barred by limitation. First Appeal No.605/68 dismissed by High Court on 12 Aug 1975 holding no decree existed for execution. On 14 Aug 1975, appellants filed Misc. Application No.538/75 to accept stamps and pass final decree. Trial court allowed application on 3 Feb 1976 holding not barred. First Appeal No.229/76 allowed by Single Judge on 7 Mar 1977 holding barred. LPA 15/77 dismissed in limine by Division Bench on 7 Apr 1977. Appeals by special leave to Supreme Court.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 2(2), Order 20 Rule 7, Order 20 Rule 18, Order 20 Rule 18(2), Section 48
  • Limitation Act, 1908: Article 181, Article 182
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
Supreme Court Supreme Court Acquits Appellant in Prevention of Corruption Act Case Due to Absence of Pecuniary Advantage. Conviction Under Section 13(1)(d) PC Act Read with Section 120B IPC Set Aside as High Court Finding of No Valuable Thing or Pecuniary Advantag...
Related Judgement
Supreme Court Supreme Court Modifies High Court Order Appointing Different Arbitrator Under Section 11 of Arbitration and Conciliation Act, 1996 to Direct Same Sole Arbitrator for Two Related Contracts. Cross-Project Set-Off Claim Between Mahanet and T-Fiber Agree...