Bombay High Court Allows Appeal Against Order to Deposit Half of Asset Value in Inventory Proceedings — Jurisdictional Error by Trial Court in Directing Deposit Without Deciding Ownership Claim Under Article 1383 of Portuguese Civil Procedure Code

High Court: Bombay High Court Bench: GOA
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Case Note & Summary

The appeal arises from an order dated 16th August 2008 passed by the IIIrd Additional Civil Judge, Senior Division, Margao, in Inventory Proceedings No.178/2003-ADDL.III. The inventory proceedings were initiated in 2003 to partition the estate of the deceased Brian Hilary Gracias, who died without descendants. The Appellant is the widow of the deceased and is entitled to half share as a moiety sharer, while the Respondent, being the ascendant, is entitled to the remaining half. The proceedings had been disposed on 29th January 1998, but additional inventory proceedings were filed in March 2003 for assets not yet partitioned. In these proceedings, the Respondent filed an application dated 17.02.2007 providing the correct description of item no.2. The Appellant filed a reply on 15.3.2007 disputing the contentions. On 16.8.2008, the Trial Court allowed the application and directed the Appellant to deposit half of the amount of item no.2. The Appellant filed a review application on 17.11.2008, which was dismissed on 6.3.2009. The present appeal challenges the order dated 16.8.2008. The Appellant had also filed an application under Article 1383 of the Portuguese Civil Procedure Code claiming exclusive ownership of item no.2, which was not decided by the Trial Court before passing the impugned order. The Appellant argued that the Trial Court had no jurisdiction to direct deposit without first deciding the ownership claim. The Respondent contended that the Appellant had already received the amount and was liable to deposit half. The High Court held that the Trial Court acted without jurisdiction by directing the deposit without adjudicating the pending application under Article 1383. The impugned order was set aside, and the Trial Court was directed to decide the application under Article 1383 first, and then pass appropriate orders regarding the deposit.

Headnote

A) Civil Procedure - Inventory Proceedings - Jurisdiction - Article 1383 of Portuguese Civil Procedure Code - The Trial Court directed the Appellant to deposit half of the amount of item no.2 without adjudicating the Appellant's pending application under Article 1383 claiming exclusive ownership. Held that the Trial Court acted without jurisdiction as the ownership claim must be decided before any direction to deposit can be made (Paras 2-4).

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Issue of Consideration

Whether the Trial Court had jurisdiction to direct the Appellant to deposit half of the amount received with regard to item no.2 without first deciding the Appellant's application under Article 1383 of the Portuguese Civil Procedure Code claiming exclusive ownership of the said item.

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Final Decision

Appeal allowed. Impugned order dated 16.08.2008 set aside. Trial Court directed to decide the application under Article 1383 of Portuguese Civil Procedure Code first, and then pass appropriate orders regarding deposit of half of the amount of item no.2.

Law Points

  • Jurisdiction of inventory court
  • Ownership claim under Article 1383 of Portuguese Civil Procedure Code
  • Deposit direction before adjudication of rights
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Case Details

2010 LawText (BOM) (06) 120

Appeal from Order No. 38 of 2009

2010-06-25

F.M. Reis, J

Mr. S.M. Singbal for Appellant, Mr. M.S. Usgaonkar (Senior Advocate) with Mr. I. Agha for Respondent

Mrs. Connie Miranda

Mr. Antonio Joaquim Gracias

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Nature of Litigation

Appeal against order in inventory proceedings directing deposit of half of asset amount

Remedy Sought

Appellant sought setting aside of order directing deposit of half of amount of item no.2

Filing Reason

Trial Court directed Appellant to deposit half of amount received for item no.2 without deciding Appellant's ownership claim under Article 1383 of Portuguese Civil Procedure Code

Previous Decisions

Inventory proceedings disposed on 29.01.1998; additional inventory proceedings filed in March 2003; application by Respondent dated 17.02.2007 allowed on 16.08.2008; review dismissed on 06.03.2009

Issues

Whether the Trial Court had jurisdiction to direct deposit of half of the amount of item no.2 without first deciding the Appellant's application under Article 1383 of Portuguese Civil Procedure Code claiming exclusive ownership

Submissions/Arguments

Appellant: Trial Court has no jurisdiction to direct deposit until inventory proceedings are disposed of; application under Article 1383 claiming exclusive ownership was pending and not decided; Trial Court refused to decide the application after passing the impugned order. Respondent: Appellant had already received the amount and was liable to deposit half; the order was correct.

Ratio Decidendi

The Trial Court acted without jurisdiction in directing the Appellant to deposit half of the amount of item no.2 without first adjudicating the Appellant's pending application under Article 1383 of the Portuguese Civil Procedure Code claiming exclusive ownership of the said item. The ownership claim must be decided before any direction to deposit can be made.

Judgment Excerpts

The Learned Counsel appearing for the Appellant has submitted that until and unless the inventory proceedings were disposed of, the Trial Judge has no jurisdiction to direct the Appellant to deposit half of the amount received by the Appellant. He submitted that an application was filed by the Appellant under Article 1383 of the Portuguese Civil Procedure Code claiming exclusive ownership of the said item no.2 and the same was not disposed by the learned Trial Judge at the time of passing the impugned order.

Procedural History

Inventory proceedings initiated in 2003 to partition estate of deceased Brian Hilary Gracias. Disposed on 29.01.1998. Additional inventory proceedings filed in March 2003. Respondent filed application on 17.02.2007 for correct description of item no.2. Appellant filed reply on 15.03.2007. Trial Court allowed application on 16.08.2008 directing Appellant to deposit half of amount of item no.2. Appellant filed review on 17.11.2008, dismissed on 06.03.2009. Present appeal filed against order dated 16.08.2008.

Acts & Sections

  • Portuguese Civil Procedure Code: Article 1383
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High Court Bombay High Court Allows Appeal Against Order to Deposit Half of Asset Value in Inventory Proceedings — Jurisdictional Error by Trial Court in Directing Deposit Without Deciding Ownership Claim Under Article 1383 of Portuguese Civil Procedure Code