Supreme Court Dismisses Appellant in Mortgage Decree Binding Heirs Not Impleaded After Creditor's Bona Fide Inquiry. The Court Held That a Creditor Who After Diligent and Bona Fide Inquiry Impleads Some Heirs in Genuine Belief They Are the Only Interested Persons Duly Represents the Entire Estate, and the Decree Binds Even Those Not Impleaded Under Order 22 Rules 4 and 5 of the Code of Civil Procedure, 1908.

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Case Note & Summary

The dispute arose from a mortgage executed on August 21, 1933, by Khader Miran, Muhammad Abdul Kassim, and Muhammad Labhai in favour of Narsimha Reddy to secure repayment of Rs. 20,000. Khader Miran died on November 19, 1937. On July 12, 1940, Narsimha Reddy instituted a suit for enforcement of the mortgage against Muhammad Abdul Kasim, Muhammad Labhai, and three widows of Khader Miran—Fathima Bi, Amina Bi, and Mahaboob Bi—and a daughter, Muhammad Mariyam Bi. A preliminary mortgage decree was passed on November 25, 1940, and made absolute on October 11, 1941. In execution of the decree, the mortgaged properties were sold at a court auction and purchased by the mortgagee Narsimha Reddy on October 16, 1942, with leave of the court. Narsimha Reddy subsequently transferred the properties to P. Chinnamma Reddi, who in turn alienated portions thereof. In 1950, N. K. Mohammad Sulaiman, claiming to be the son of Khader Miran, instituted suit No. 125 of 1950 in the Court of the Subordinate Judge, Chittoor, seeking partition of the mortgaged properties by metes and bounds, alternatively a declaration of his right to redeem the mortgage or his share, an account of income, and a declaration that the earlier decree and execution proceedings were null and void. He impleaded Mohammad Ismail, also claimed to be a son of Khader Miran who had not been impleaded in the earlier suit, along with Mahaboob Bi, Mariyam Bi, Narsimha Reddy, and twenty-two alienees. The defendants resisted the suit on two principal grounds: that the plaintiff was not the son of Khader Miran, and that the earlier decree was binding on the plaintiff because the estate of Khader Miran was fully represented in the prior suit by those in possession, and Narsimha Reddy had made full and bona fide inquiry and believed that only the three widows and daughter were surviving heirs. The Trial Court held that the plaintiff, as son of Khader Miran, was sufficiently represented by the three widows and daughter in the earlier suit, and that he and his brother were bound by the decree and sale even though not impleaded eo nomine. On appeal, the High Court of Andhra Pradesh confirmed the Trial Court's decree dismissing the plaintiff's suit. The plaintiff appealed to the Supreme Court with a certificate granted by the High Court, in forma pauperis. The core legal question before the Supreme Court was whether a decree obtained by a creditor against only some heirs of a deceased Muslim debtor binds the entire estate or only the interest of the heirs impleaded eo nomine. The appellant contended that under Mohammedan law each heir is liable to satisfy the debts of the deceased only to the extent of the share of the debt proportionate to his share in the estate, and therefore what passed to the auction purchaser was only the interests of the impleaded heirs. The respondents argued that the estate was fully represented by the heirs in possession after bona fide inquiry and that the decree was binding on the entire estate. The Supreme Court held that the question was not one of personal law but of procedural law. It reiterated the principle that where a creditor after diligent and bona fide inquiry impleads some heirs in the genuine belief that they are the only persons interested in the estate, the whole estate is duly represented by those impleaded, and the decree binds the entire estate, including those not brought on record. The Court followed Daya Ram and others v. Shyam Sundari & others, [1965] 1 S.C.R. 231, and observed that there was no difference in principle between a case where the debtor dies pendente lite and a case where the suit is instituted after the debtor's death against known heirs after bona fide inquiry. The rule would not apply in cases of fraud or collusion or where there was no fair or real trial, but no such circumstances were present. Accordingly, the Supreme Court dismissed the appeal, holding that the plaintiff was sufficiently represented in the prior mortgage suit and was bound by the decree and sale.

Headnote

A) Civil Procedure - Representation of Estate - Bona Fide Inquiry - Code of Civil Procedure, 1908, Order 22 Rules 4 and 5, Section 2(11) - Where a creditor after diligent and bona fide inquiry impleads certain persons in the genuine belief that they are the only persons interested in the estate, the whole estate of the deceased is duly represented by those impleaded, and a decree obtained against them binds the entire estate including those not brought on record. The plaintiff was sufficiently represented in the prior mortgage suit and bound by the decree and sale, as the mortgagee had made full and bona fide inquiry and believed only the widows and daughter were heirs. Held that the decree was binding on the entire estate (See pp. 948 G-H, 948 E).

B) Civil Procedure - Applicability of Personal Law - Procedural Law Governs Representation - Code of Civil Procedure, 1908 - Whether a decree obtained by a creditor against heirs of a deceased Muslim is binding upon the entire estate or only on those impleaded eo nomine is not a question to be determined on the personal law of the deceased or of the defendant; it is a part of the law of procedure which regulates all matters going to the remedy. Held that personal law of the deceased was irrelevant to the question of representation of estate (See p. 944 D).

C) Civil Procedure - Distinction Between Suit Instituted After Death and Death Pending Suit - Same Rule Applies - Code of Civil Procedure, 1908 - The principle that impleaded heirs after diligent and bona fide inquiry represent the entire estate applies equally whether the debtor died before the suit and the creditor brought heirs on record, or whether the debtor died pendente lite and the court recognised certain persons as legal representatives. Held that no difference in principle existed between the two situations (See p. 948 E).

D) Civil Procedure - Exceptions to Representation Rule - Fraud or Collusion - Code of Civil Procedure, 1908 - The rule that impleaded heirs represent the entire estate does not apply where there has been fraud or collusion between the creditor and the heir impleaded, or where other circumstances indicate that there has not been a fair or real trial, or that the absent heir had a special defence which was not and could not be tried in the earlier proceeding. Held that no such circumstances were present in the instant case (See p. 948 H).

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Issue of Consideration

Whether a decree obtained by a creditor against only some heirs of a deceased Muslim debtor binds the entire estate or only the interest of heirs impleaded eo nomine; whether the personal law of the deceased is relevant to the question of representation of estate; whether the rule of representation by impleaded heirs applies where the debtor died before the institution of the suit.

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Final Decision

Appeal dismissed; decree of High Court confirmed; the appellant was sufficiently represented in the prior mortgage suit and bound by the decree and sale; the rule of representation of estate applies irrespective of personal law, and no fraud or collusion was present

Law Points

  • Representation of estate by impleaded heirs
  • decree binds entire estate
  • bona fide inquiry
  • procedural law governs
  • personal law irrelevant
  • absence of fraud or collusion
  • Code of Civil Procedure Order 22 Rules 4 and 5
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Case Details

1965 LawText (SC) (09) 2

Civil Appeal No. 432 of 1963

1965-09-23

Shah, J.C., Subbarao, K., Wanchoo, K.N., Sikri, S.M., Ramaswami, V.

1966 AIR 792, 1966 SCR (1) 937

C. Narasimhacharyya, K. R. Chaudhury, P. Ram Reddy, A. V. V. Nair

N.K. Mohammad Sulaiman

N. C. Mohammad Ismail and Others

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Nature of Litigation

Civil suit for partition and redemption of mortgaged property; challenge to prior mortgage decree and execution sale as null and void

Remedy Sought

Plaintiff sought partition of mortgaged properties by metes and bounds, alternatively a declaration of right to redeem the mortgage or his share, an account of income, and a declaration that the earlier decree and execution proceedings were null and void

Filing Reason

Plaintiff claimed he was son of deceased mortgagor and was not impleaded in earlier mortgage suit, so his share should not be bound by decree and sale

Previous Decisions

Trial Court dismissed suit holding plaintiff sufficiently represented; High Court of Andhra Pradesh confirmed dismissal; certificate granted for appeal to Supreme Court

Issues

Whether a decree obtained by a creditor against only some heirs of a deceased Muslim debtor binds the entire estate or only the interest of heirs impleaded eo nomine Whether the personal law of the deceased is relevant to the question of representation of estate Whether the rule of representation by impleaded heirs applies only where defendant dies during pendency of suit or also where suit is instituted after death against known heirs after bona fide inquiry

Submissions/Arguments

Appellant argued that under Mohammedan law each heir is liable to satisfy debts only to extent of share, so auction purchaser acquired only interest of impleaded heirs Respondents argued that estate was fully represented by heirs in possession after bona fide inquiry and decree was binding on entire estate Appellant further submitted that the rule of representation under Order 22 Rules 4 and 5 CPC applies only where defendant dies after institution of suit, not where suit is filed after death

Ratio Decidendi

In a suit by a creditor against heirs of a deceased debtor, if the creditor after diligent and bona fide inquiry impleads some heirs in genuine belief that they are the only persons interested, the whole estate is duly represented by those impleaded, and the decree binds the entire estate including those not brought on record, in the absence of fraud or collusion. The rule is procedural and applies irrespective of the personal law of the deceased or the defendants.

Judgment Excerpts

The almost universal consensus of opinion of all the High Courts is that where a plaintiff or an appellant after diligent and bona fide enquiry ascertains who the legal representatives of a deceased defendant or respondent are and brings them on record within the time limited by law, there is no abatement of the suit or appeal, that the impleaded legal representatives sufficiently represent the estate of the deceased and that a decision obtained with them on record will bind not merely those impleaded but the entire estate -including those not brought on record. Where certain persons are impleaded after diligent and bona fide enquiry in the genuine belief that they are the only persons interested in the estate, the whole estate of the deceased will be duly represented by the persons who are brought on the record or impleaded, and the decree will be binding on the entire estate.

Procedural History

1933: Mortgage executed by Khader Miran, Muhammad Abdul Kassim and Muhammad Labhai in favour of Narsimha Reddy. 1937: Khader Miran died. 1940: Narsimha Reddy filed suit for enforcement of mortgage against other mortgagors and heirs of Khader Miran; preliminary decree passed on November 25, 1940; made absolute on October 11, 1941. 1942: Mortgaged properties sold in execution and purchased by Narsimha Reddy on October 16, 1942. Subsequently, Narsimha Reddy transferred properties to P. Chinnamma Reddi and further alienations occurred. 1950: N. K. Mohammad Sulaiman filed suit No. 125 of 1950 in Subordinate Judge, Chittoor seeking partition, redemption, and setting aside prior decree. Trial Court dismissed suit holding plaintiff sufficiently represented. High Court of Andhra Pradesh confirmed dismissal in Appeal Suit No. 113 of 1954 on August 27, 1958. Certificate granted by High Court; appeal to Supreme Court as Civil Appeal No. 432 of 1963. Supreme Court dismissed appeal, affirming the decisions below.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 2(11), Order 22 Rules 4 and 5
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