Full Judgment Text
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PETITIONER:
ITTAVIRA MATHAI
Vs.
RESPONDENT:
VARKEY VARKEY AND ANOTHER
DATE OF JUDGMENT:
15/01/1963
BENCH:
MUDHOLKAR, J.R.
BENCH:
MUDHOLKAR, J.R.
IMAM, SYED JAFFER
SUBBARAO, K.
DAYAL, RAGHUBAR
CITATION:
1964 AIR 907 1964 SCR (1) 495
CITATOR INFO :
R 1965 SC1325 (7,56,61,ETC.)
R 1966 SC 430 (3)
R 1969 SC 823 (15)
F 1974 SC 994 (104)
R 1988 SC1531 (81)
ACT:
Limitation-Suit filed beyond time-Decree, if a nullity--
Point of limitation not raised in High Court, if
entertainable by Supreme Court-Receiver’s possession,if must
ensure to successful Party-Appeal-Forum -Abrogated by
subsequent legislation--If and when, can be challenged-
Travancore High Court Act, 1099 (IV of 1099)), 8. 11 (1), as
repealed by Ordinance II of 1124-Indian Limitation Act, 1908
(9 of 1908), 8. 3. Arts. 17, 142.
HEADNOTE:
One Ittiyavira, the deceased father of the appellant
purchased properties and paid part of the consideration for
the transaction in cash and for the balance executed two
hypothecation bonds in favour of his vendors, Ramalinga Iyer
and Raman Vela Yudhan. Ramalinga Iyer assigned his hypothe-
cation bond in favour of one Sankara Rama Iyer. He had
executed a promissory note in favour of one Anantha Iyer
who, after his death, instituted a suit against his son
Sankara Subha Iyer for recovery of the amount thereunder and
obtained a decree. Treating the deed of assignment executed
by Ramalinga
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Iyer in favour of Sankara Rama Iyer as a sham document,
Anantha Iyer attached the mortgagee rights of Ramalinga Iyer
in the hypothecation bond and eventually purchased them. In
a partition in Anantha Iyer’s family, the rights under the
hypothecation bond purchased by him were allotted to his
share and to that of his brother. These two persons
instituted a suit against Ittiyavira being O. S. No. 59 of
1093 and obtained a decree for realisation of the amount
against him and transferred their decree to one Venkiteswara
Iyer who. at the court auction held in execution of that
decree, purchased the hypothecated properties which are
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properties in the suit and eventually obtained possession of
the properties on 12. 7: 1099.
Before the institution of O. S. 59 of 1093 by Anantha Iyer
and his brother, Ittiyavira had executed a sale deed of
these properties on 8. 10. 1093 in favour of his son, the
appellant. The appellant was not. male a party to O. S. No.
59 of 1093. Ituyavira died in the 1107 and on 2. 2. 1108,
Venkiteswara Iyer sold all the suit properties to the
plaintiffsrespondents. Thereafter the respondents
instituted proceedings under s. 145 of the Code of Criminal
Procedure in the Court of Magistrate claiming their
possession over the suit properties which was disputed by
the appellant. The properties were attached and placed in
the possession of the Receiver appointed by the court.
Eventually, the court held that the appellant’s possession
over the properties be maintained until otherwise ordered by
the competent civil court. The High Court of Travancore
affirmed the order of the Magistrate and the appellant was
handed over the possession of the properties by the
Receiver. Consequently, the respondents instituted a suit
out of which this appeal arises. The trial court dismissed
the suit and that decision was reversed by the High Court.
It was contended before this Court that the decree obtained
by Anantha Iyer in O. S. 59/1093 was a nullity because the
suit was barred by time. It was further urged that the
appeal before tile High Court should have been heard not by
a Division Bench of merely two judge but by a Bench of three
judges as provided in S. II (1) of the Travancore High Court
Act, 1099.
Held, that if the suit was barred by time and yet, the court
decreed it, the court would be committing an illegality and
the aggrieved party would be entitled to have the decree set
aside by preferring an appeal against it. As has often been
said, courts have Jurisdiction to decide right or to decide
wrong and even though they decide wrong the decree rendered
by them cannot be treated as nullities,
497
Maqbul Ahmad v. Onkar Pratap Narain Singh, A. 1. R. 1935
P. C. 85, held inapplicable.
Where the question of limitation was not raised in the High
Court, it cannot be allowed to be raised in this Court when
the question was one of mixed fact of law.
In the instant case the possession of the Receiver during
the proceedings under s. 145 of the Code of Criminal
Procedure would necessarily unure for the benefit of the
successful party and if this period is taken into account,
the respondent’s suit would be well within time.
Held, further that no party has a vested right to have his
appeal heard by a specified number of judges and no right of
the party has been infringed merely because it was heard by
two judges and not by three judges. A litigant has no right
to contend that a tribunal before whom he. should have taken
an appeal when he instituted the suit, should not be
abolished and unless it can be shown that the repeal of the
Travancore High Court Act was unconstitutional, whatever
right of appeal may have vested in the party stood abrogated
by the competent legislature.
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 372 of 1960.
Appeal from the judgment and decree dated April 6, 1955, of
the former High Court of Travancore-Cochin in Appeal Suit
No. 721 of 1951.
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Manual T. Paikedy, Mahalinga Iyer and Ganpat Rai, for the
appellant.
V. A. Syed Muhummad, for the respondents
1963. January 15. The judgment of the Court was delivered
by
MUDHOLKAR., J.-This is an appeal by certificate from the
judgment of the Travancore-Cochin High Court which allowed
the appeal preferred by the respondents from the decree of
the District Court
498
of Parur dismissing their suit for declaration of title to
and recovery of possession of certain properties and for
other consequential reliefs.
The relevant facts are as follows
The 23 items of property comprised in the schedule to the
plaint belonged originally to two persons Ramalinga Iyer
("Iyer" as described by the High Court) and Raman
Velayudhan. They sold them on (6-6-1080 (Malayalam Era
which roughly corresponds to the year 1905) to Ittivavira
the deceased father of the appellant-defendant No. 1. Part
of the consideration for the sale was paid by Ittiyavira in
cash and for the balance, he executed two hypothecation
bonds in favour his vendors on the same date. One of the
bonds was executed in favour of Raman Velayudhan and the
amount secured thereunder was Rs. 308-8-0. In respect of
this amount, items of property Nos. 3, 5, 14 and 18 were
hypothecated with Raman Velayudhan by Ittiyavira. The other
bond was in favour of Ramalinga Iyer and under this bond.
Ittiyavira hypothecated with him items Nos. 1, 2, 4, 6-13,
151-7, and 19-23 and also the remaining items, subject to
the hypothecation bond in favour of Raman Velavudhan, for
securing an amount of Rs.2,191-80 On 3-1.0-1082, Ramalinga
Iyer assigned his hypothecation bond in favour of one
Sankara Rama Iyer ("Iyen" as described by the High Court).
The parties are in dispute concerning this transaction.
According to one of them, the deed of assignment Ex. V was
a sham document and was not intended to take effect while
according to the other, it was a genuine document.
It would appear that Ramalinga Iyer had executed a
promissory note in favour of one Anantha Iyer ("Iyen" as
described by the High Court). After the death of Ramalinga
Iyer, Anantha Iyer instituted a suit against his son Sankara
Subha Iyer ("lyen" as
499
described by the High Court) for recovery of the amount
thereunder and obtained a decree Ex. VI on 13-11-1088.
Treating the deed of assignment executed by Ramalinga Iyer
in favour of Sankara Rama Iyer as a sham document, Anantha
Iyer attached the mortgagee rights of Ramalinga Iyer in the
hypothecation bond which had been executed in his favour by
Ittiyavira. The rights under this bond were sold in
execution and were purchased by Anantha Iyer at court
auction. In a subsequent partition in Anantha Iyer’s
family, the rights under the hypothecation bond purchased in
execution by him were allotted to his share and that of his
brother Manicka Iyer ("Iyen" as described by the High
Court). Thereafter, these two persons instituted a suit
against Ittiyavira being O. S. No. 59 of 1093 in the
District Court at Parur and obtained a decree for
realisation of the amount against Ittiyavira. The decree-
holders subsequently transferred their decree to one
Venkiteswara Iyer ("Iyen" as described by the High Court)
which the latter executed and at the court auction held in
execution of that decree, he himself purchased the
hypothecated properties which are the properties in the suit
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on 27-4-1099. Exhibit C is the sale certificate which was
granted to him by the court. Venkiteswara Iyer eventually
obtained possession of the properties on 12-7-1099.
It would appear that Raman Velayudhan also assigned the
hypothecation bond which was executed in his favour by
Ittiyavira in favour of some person who eventually sued on
the bond and obtained decree in O. S. No. 462 of 1094 in the
court of the Munsiff, Moovattupuzha. In execution of that
decree, items Nos. 3, 5, 14 and 18 were purchased by one
Mathai Ouseph the brother of the second defendant in the
suit on 10-11-1096. In pursuance of this decree, Mathai
Ouseph obtained delivery of possession of 4 items of
property (items 3, 5, 14 and 18) on 19-6-1098
500
and thereafter sold them to defendant No. 2 (wife of
appellant) on 5-12-1104.
Even before the institution of O. S. 59 of 1093 by Anantha
Iyer and his brother, Ittiyavira had executed a sale deed in
favour of his son the appellant before us-whereunder, he
conveyed to him all the properties in the suit. The date on
which the sale deed was executed was 8-10-1092. It may
however, be mentioned that the appellant was not made a
party to O. S. No. 59 of 1093 filed by Anantha Iyer and his
brother and the contention raised by the respondents is that
the sale in favour of the appellant is not a genuine
transaction and therefore he was not a necessary party to
the suit.
Ittiyavira died in the year 1107 and on 2-2-1108,
Venkiteswara Iyer sold all the suitproperties to the
plaintiffs-respondents. Thereafter, the respondents
instituted proceecdings under s. 145 of the Code of Criminal
Procedure in the court of the Magistrate, First Class,
Perumbavoor claiming that they were in possession of the
suit properties, that the appellant was disputing their
possession and that there was a likelihood of a breach of
peace because of the attempt of the appellant to "obstruct"
their possession. In these proceedings, the properties were
attached and placed in the possession of the Receiver
appointed by the court. Eventually, the court held that the
properties were in the possession of the appellant and
ordered that his possession be maintained until otherwise
ordered by a competent Civil Court. The order of the
Magistrate was affirmed by the Travancore High Court and
thereafter, the Receiver handed over the possession of the
properties to the appellant. Consequent upon this order the
respondents instituted a suit out of which this appeal
arises. Their contention in the suit is that the alleged
sale by Ittiyavira in favour of the appellant is a sham
transaction, that therefore he did not obtain any
501
rights, thereunder and that consequently it was not
necessary to implied him in O. S. No. 59 of 1093. They also
alleged that Mathai Ouseoh did not obtain any rights under
his auction purchase because the sale and delivery of
possession in execution of the decree in O. S. No. 462 of
1094 were benami for Ittiyavira. For this reason, it Was
contended that defendant No. 2 acquired no rights to items
3, 5, 14 and 18 in the plaint. The appellant disputed the
validity of the decree and of the execution proceedings in
O. S. No. 497 of 1088 and contended that the decree was
obtained and the execution proceedings taken out,
fraudulently against Ramalinga Iyer’s heirs inasmuch as
Ramalinga Iyer had assigned the hypothecation bond in favour
of Sankara Rama Iyer on 3-10-1082. The plea of the
appellant thus was that Anantha Iyer did not obtain any
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rights to the hypothecation bond executed by Ittiyavira in
favour of Ramalinga Iyer, and consequently, Venkiteswara
Iyer obtained no rights under his purchase in execution of
the decree in O. S. No. 59 of 1093. The entire proceedings
were characterised as fraudulent and not binding on
Ittiyavira and the suit properties. The allegation that the
alleged sale in favour of the appellant was a sham
transaction was denied by them as also the other allegations
concerning the purchase of items 3, 5, 14 and 18 by Mathai
Ouseph.
The trial court dismissed the suit. The High Court,
however, reversed the decree of the trial court except with
respect to items 3, 5, 4 and 18 in the plaint. No cross-
appeal or cross-objections having been filed by the
respondents, the appeal before us is confined to the
remaining items provided in the plaint schedule.
The first point raised by Mr. Paikedy for the appellant is
that the decree in O. S. No. 59 of 1093 obtained by Anantha
Iyer and his brother in the suit
102
on the hypothecation bond executed by Ittiyavira in favour
of Ramalinga Iyer was a nullity because the suit was barred
by time. Even assuming that the suit was barred by time, it
is difficult to appreciate the contention of learned counsel
that the decree can be treated as a nullity and ignored in
subsequent litigation. If the suit was barred by time and
yet, the court decreed it, the court would be committing an
illegality and therefore the aggrieved party would be
entitled to have the decree set aside by preferring an
appeal against it. But it is well settled that a court
having jurisdiction over the subject matter of the suit and
over the parties thereto, though bound to decide right may
decide wrong; and that even though it decided wrong it would
not be doing something which it had no jurisdiction to do.
It had the jurisdiction over the subject-matter and it had
the jurisdiction over the party and, therefore, merely
because it made an error in deciding a vital issue in the
suit, it cannot be said that it has acted beyond its
jurisdiction. As has often been said, courts have
jurisdiction to decide right or to decide wrong and even
though they decide wrong, the decrees rendered by them
cannot be treated as nullifies. Learned counsel, however,
referred us to the decision of the Privy Council in Maqbul
-Ahmed v. Onkar Pratap Narain (1), and contended that since
the court is bound under the provisions of s. 3 of the
Limitation Act to ascertain for itself whether the suit
before it was within time, it would act without jurisdiction
if it fails to do so. Act that the decision relied upon
says that s. 3 of the Limitation Act is peremptory and that
it is the duty of the court to take notice of this provision
and give effect to it even though the point of limitation is
not referred to in the pleadings. The privy council has not
said that where the court fails to perform its duty, it acts
without jurisdiction. If it fails to do its duty, it merely
makes an error of law and an error of law can be corrected
only in the manner laid down in the Civil Procedure Code.
If
(1)A.I.R. (1935) P.C. 83.
503
the party aggrieved does not take appropriate steps to have
that error corrected, the erroneous decree will hold good
and will not be open to challenge on the basis of being a
nullity.
The next point raised by learned counsel is that the present
suit was barred because it was not instituted within three
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years of the decision of the Magistrate, First Class,
Perumbavoor, holding that the appellant was in possession of
the suit properties. It is no doubt true that the order in
question was passed on 28-12-1111 while the suit was
instituted in the District Court, Parur on 4-3-1118 and even
if limitation is computed with reference to the (late of the
order of the High Court dismissing the revision petition the
suit will be said to have been instituted more than three
years thereafter. The fact, however, is that the plaint was
originally instituted by the responded in the court of the
Munsif. Movattupuzha and numbered as original suit No. 1296
of 1114. The appellant contended that the valuation of the
suit property made by the respondents was low and therefore
the court appointed a Commissioner for ascertaining their
true value. The Commissioner reported that the value of the
suit properties was Rs. 4,602. The court thereupon passed
an order on 21-2-1118 returning the plaint for presentation
to the proper court inasmuch as the sum total of the value
of the reliefs claimed in the plaint was beyond its
pecuniary limits. Shortly thereafter, the plaint was
presented by the respondents in the District Court at Parur.
If the respondents had filed the suit in the Court of the
Munsiff within three years of the date of the final order
passed in proceedings under s. 145 of the Code of Criminal
Procedure but the plaint was returned for presentation to
the proper court, they would be entitled under s. 14 of the
-Limitation Act to the deduction of the entire period during
which they were prosecuting their suit with due diligence
and in good faith in the court of the Munsiff. Had
504
the suit been barred by time when it was instituted in the
court of the Munsiff a plea to that effect could have been
taken by the appellant; The defendants do not appear to have
done so. It, therefore, follows that the suit must have
been within time, when it was instituted in the court of the
Munsiff. After the plaint was represented in the District
Court at Parur, the appellant filed a written statement. In
para 12 of the plaint the respondents have stated thus :
"The cause of action for this suit has arisen
within the jurisdiction of this court from
15th Kanni 1113, the date of the final order
in the summary. case."
The only answer to this plea of the respondents which the
appellant has given in the written statement is to be found
in para 13 of the written statement
which reads thus
"The plaintiffs have no manner of right what-
soever, as alleged in para 10 of the plaint.
Even if the plaintiffs had any rights, they
have become barred by limitation; and they
need not be considered at this juncture. The
plaintiffs have no right to contend like this
in the present suit, alter the lapse of a
long period since the 2nd defendant’s brother
took possession of the properties in execution
proceedings. The plaintiffs are barred from
contending so."
just below the plaint, the respondents have
also stated thus:
"This suit is first filed in Moovattupuzha
Munsiff’s Court as O. S. No. 1296/1114. The
defendants contended that the
plaint
properties are of great value and so a
Commissioner was appointed during the trial of
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the suit to ascertain the value of the
properties. The value was
505
ascertained to be Rs. 4,602/- chs. 14 and so
an order was passed from the Moovattupuzha
Munsiff’s Court on 21-2-1118 stating that the
plaint should be returned and filed in the
proper court having jurisdiction to try the
case, since the same cannot be tried in the
Munsiff’s Court. According to that order, the
plaint was received back on 30-2-1118. The
correct valuation is shown and the plaint is
filed in this court together with the court-
fee memos returned."
There is no reference to these averments in the written
statement of the appellant. It would thus be clear that the
appellant has not raised a sufficiently clear plea of
limitation by stating relevant facts and making appropriate
averments. It is apparently because of this that the trial
court, though it did raise a formal issue of limitation,
gave no finding thereon. Nothing would have been simpler
for the trial court than to dismiss the suit on the ground
of limitation if the plea was seriously raised before it.
Had the point been pressed it would not have been required
to discuss in detail the various questions of fact
pertaining to the merits of the case before it could dismiss
the suit. In the plaint, the respondents claimed that the
period of limitation for the suit commenced on 15-2-1113
when the High Court dismissed the revision petition
preferred by the respondents. The appellant has not stated
that under Art. 47 of the Limitation Act, the period of
limitation is to be computed not from the date of the
revisional order but. from the date of the original order.
Had he done so, we have no doubt that the respondents would
at least have placed on record by amending the plaint the
date on which the plaint was instituted in the Court of the
Munsiff. Thus, had the plaint been instituted in the court
of the Munsiff say two months before the expiry of the
limitation, the suit would have been within time
506
on 4-3-1118 when the plaint was re-presented to the District
Court, computing the period of limitation even from the date
of the original order. Moreover, the appellants could well
have raised the question of limitation in the High Court in
support of the decree which had been passed in their favour
by the trial court. Had they done so, the High Court would
have looked into the records before it for satisfying itself
whether the suit was within time or not. The point now
raised before us is not one purely of law but a mixed
question of fact and law. No specific ground has even been
taken in the petition made by the appellant before the High
Court for grant of a certificate on the ground that the suit
was barred by time. In the circumstances, we decline leave
to the appellant to raise the point of limitation before us.
The next contention of the learned counsel is that the suit
is governed by Art. 142 of the Limitation Act and as the
respondents have not established that they were in
possession within 12 years thereof, their suit is barred by
time. This plea of the appellant rests upon another
contention which is that the delivery of possession to the
auction-purchaser in O. S. No. 59 of 1093 was a sham and
fraudulent transaction. The appellant claimed that he was
in possession of these properties at the time of delivery of
possession and that he actually obstructed the delivery of
possession to the auction-purchaser. According to him, the
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Gamin who came to effect delivery of possession did not
remove the obstruction and therefore what is recorded in Ex.
D, the report pertaining to the delivery of possession,
establishes at best the delivery of merely symbolical
possession Exhibit D shows on its face that actual
possession of the properties was delivered by the Amin to
the auction-purchaser in pursuance of the execution sale. A
presumption as to regularity attaches to the records of the
court and such presumption cannot be
507
lightly brushed aside. In addition to the presumption,
however, there is the evidence of P. W. 2--Vasu Vasu
Elayath-who was one of the persons who had attested the
report Ex. D. He swears that the Amin came to the property
and effected delivery of possession to the auction-
purchaser. As the, High Court has pointed out, he is a
respectable person residing in the neighborhood and that
since nothing has been brought out in his cross-examination
to discredit him, he deserves to be believed. Then there is
the evidence of P. W. 3, Meeralava Osakkal Rawther, who was
also present at the time of delivery of possession. Exhibit
D states that the charges for beating of a drum at the time
of delivery or possession were paid to him (P. W. 3) in
token whereof lie had put his signature on the exhibit.
This witness also swears that actual delivery of possession
to the auctionpurchaser was effected as stated in Ex. D.
His evidence has also been accepted by the High Court. We
see no reason to take a ’different view of the evidence.
Learned counsel, however, refers us to Ex, J which is a
petition dated 16-7-1009 filed by the appellant in the
District Court, Parur in O. S. No. 59 of 1093 and says that
this was filed only four days after the date of delivery of
possession. His contention is that this document would show
that the appellant continued to be in possession of the
properties. What is stated in that petition however is this
:
"For the reasons stated in the accompanying
affidavit it is prayed that the Court may be
pleased, to declare my possession and rights
etc. over the properties mentioned in the
decree in the above suit and to hold that the
said properties are not liable to be sold for
the said decree, and to allow this petition
with costs."
It would thus be clear that he has only claimed his right to
the possession of the properties and not that
508
he had obstructed the delivery of possession of the
properties by the Amin to the auction purchaser. No doubt,
the District Judge has recorded an order thereon to the
effect that since the appellant does not say that he was
dispossessed his application is not tenable. It seems to us
that in the absence of any averments of the kind we have
already indicated, the appellant cannot derive any benefit
from his application. It was contended in the High Court
and it is contended also before us that the appellant had
sent an obstruction petition to the Amin, but he has neither
produced a certified copy of that petition nor examined the
Amin in proof of what he has said. In the. circumstances,
agreeing with the High Court, we hold that there can be no
doubt that actual delivery of possession of the suit
properties was effected by the Amin to the auction-purchaser
on 12-7-1099.
No doubt, in the proceedings under s. 145 of the Criminal
Procedure Code, there is a finding to the effect that the
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appellant was in possession. That, however, means only
this, that he was in possession at the date of the
preliminary order made in those proceedings. In view of our
finding that actual, delivery of possession was effected to
the auction-purchascr on 12-7-1099, it must be said that the
appellants possession on the date of the preliminary order
could only have originated in a trespass subsequent to the
delivery of possession on 12-7-1099 and probably during the
disputes by reason of which the respondents were compelled
to take proceedings under s. 145 of the Criminal Procedure
Code. The present suit cannot therefore be regarded as one
by auction-purchasers for recovery of property on the
strength of an execution sale in their favour but only one
for eviction of a person who obtained wrongful possession of
property by trespass after delivery of possession had been
effected through court. As we have already pointed out,
509
after the application was made by the respondents under s.
145 of the Code of Criminal Procedure, the Magistrate before
whom it was made ordered attachment of property and placed
it in the possession of the Receiver who continued to be in
possession till the final decision of those proceedings.
The possession of the Receiver during this period would
necessarily ensure for the benefit of the successful party.
if, therefore.. this period is taken into account the
respondents’ suit would be well within time.
The next point urged by learned counsel is that Anantha Iyer
and his brother got no rights by reason of the attachment
and sale of the hypothecation bond executed by Ittiyavira in
favour of Ramalinga Iyer because long before their purchase,
Ramalinga Iyer had assigned that bond to Sankara Rama Iyer.
The contention of the respondent is that Ex. V under which
the alleged assignment was made is a sham document executed
by Ramalinga Iyer in order to screen the hypothecation bond
from his creditors and to preserve the amount thereunder
for his ownbenefit. It is clear from the evidence
including that of the appellant himself that Ramalinga Iyer
was deeply in debts at the time of the execution of Ex. V.
After the execution of. Ex. V, Ramalinga Iyer who produced
that document for registration before the Sub-Registrar
himself obtained the document back from him. There is no
evidence to show that thereafter he handed it over to
Sankara Rama Iyer or that the latter had accepted the
transaction. The major part of the consideration recited in
Ex. V consisted of amounts alleged to be due from Ramalinga
Iyer to his Creditors which the assignee was supposed to
discharge. The balance of the consideration was not paid at
the time of the execution of the said document but was said
to have been adjusted against the amounts due from Ramalinga
Iyer to the assignee Sankara Rama Iyer. There is no
evidence to show that any of the debts recited in
510
the document were actually due from Ramalinga Iyer or that
any money had been received by him from Sankara Rama Iyer.
The appellant does not even say that he had made enquiries
concerning the consideration of this document. It is
further to be borne in mind that though the document was
executed in the year 1082, right uphill now, neither Sankara
Rama Iyer nor any person claiming under him has made any
attempt to realise the amounts due under the hypothecation
bond. The High Court has pointed out thus :
"If the assignment was a genuine transaction
and was intended to take effect the assignee
would not have foregone the amount under the
hypothecation bond, especially when he had to
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get such a large amount from Ramalinga Iyer
and also paid a further consideration as
mentioned in Ex. V. That one circumstance,
that the assignee has not made any attempt to
realise the amount under the hypothecation
bond during the 32 years that had elapsed
after the assignment and before the
institution of the present suit amounts almost
to proof positive of the fact that the
assignment was not a genuine transaction and
was only a sham document executed for the
purpose of screening the amount under the
hypothecation bond for the benefit of
Ramalinga Iyer himself."
We agree with the observations of the High Court and would
add that this circumstance as well as the omission of the
appellant to examine any person directly connected with the
execution proceedings would justify an inference that the
transaction evidenced by Ex. V is not a genuine one and
that the document itself is sham and bogus. Upon this view,
we hold that the sale in execution of the decree obtained by
Anantha Iyer conveyed to the auctionpurchaser all the rights
of the hypothecation bond
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executed by Ittiyavira in favour of Ramalinga Iver.
The next and the last point urged by learned counsel is that
the appellant is not bound by the decree in O. S. No. 59 of
1093, because he was Dot made a party thereto. If in fact
the assignment of the properties by Ittiyavira in favour of
the appellant was a genuine one, the appellant’s contention
would have to be upheld. The document on which the
appellant relies is Ex. XXIX. According to the
respondents, this document is sham and bogus and was
executed by Ittiyavira for the purpose of screening the
property for his own benefit. The trial court held that the
document was a genuine one but the High Court has reversed
that finding. At the outset, we have to bear in mind the
fact that the alleged sale was by a father in favour of his
son and that the son at the date of that transaction was not
shown to have had any independent means of his own from
which to provide for the consideration for the sale.
According to the document, the consideration wasRs.
3,000/- which consisted of Rs. 1,500/-said to have been
paid by the appellant to his father from time to time before
the transaction, Rs. 1,000/either paid or agreed to be paid
by him to his mother in discharge of a debt by his father to
her, and Rs. 500/- which had already been paid to his you-
nger brother in discharge of a debt which the father owed to
him. We agree with the High Court that the recitals excite
suspicion. There is no proof of these payments except the
interested testimony of the appellant himself. In the
proceeding& under s. 145 of the Criminal Procedure Code, the
appellant had stated that he had obtained the necessary
funds for obtaining Ex. XXIX from his mother; but in view
of a recital in that document that he had to pay Rs 1000/-
to his mother, it would appear that he has prevaricated.
Then again, the younger brother who is said to have loaned
Rs. 500/- to the appellant’s father was only 14 years, of
age at the time of
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execution of that document. It is impossible to believe
that a young boy like him could have been in the position to
loan Rs. 500/- to his father. It was urged before us by Mr.
Paikedy that what the parties really meant was that the
appellant was to pay the sums of Rs. 1,000/- and Rs. 500/-
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respectively to his mother and younger brother so as to
discharge his father’s liability to pay them. If there was
any substance in this contention, it should have been
advanced before the courts below and not raised for the
first time before us. Apart from that it would appear that
despite the execution of the document, Ittiyavira continued
to be the owner of the properties comprised in it. No
doubt, the appellant claims to have been in actual
possession of the properties and possibly he was, but, as
has been pointed out by the High Court, his possession was
no more than that of an agent of Ittiyavira.- We, therefore,
agree with the High Court that Ex. XXIX was a sham and
bogus document and that the transaction evidenced by it is
not genuine.
Having thus failed on all the contentions on merits, learned
counsel has sought to urge a new point before, us. The
point is that the appeal before the High Court should have
been heard not by a Division Bench of merely two judges, but
by a Bench of three judges, as provided in s. II (1) of the
Travancore High Court Act. 1099 (IV of 1099). Learned
counsel admits that the appeal was heard not by the
Travancore High Court but by the High Court of Travancore-
Cochin which came into being after the merger of the two
States of Travancore and Cochin. He ’admits that the
Travancore High Court Act, 1099 was repealed by Ordinance II
of 1124 which was reenacted by Act.V of 1125; but he says
that s. 25 of that Act provided that a Full Bench will hear
and decide all appeals from the decrees of the District
Courts in which the amount or value of the subject-matter is
in excess of
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Rs. 5,000/-. This provision was also repealed before the
appeal in question was even preferred. According to- him,
however, the appellants were entitled to prefer an appeal
before a Tribunal which existed when the suit itself was
instituted. The rights of parties to a suit in the matter
of preferring an appeal are governed by the law as it
obtained when the suit was instituted and, therefore,
according to him, as under that law in a suit of that kind
an appeal lay before a Bench of three judges, it could be
heard only by such a Bench and not one consisting of a
lesser number of judges.
There are two reasons why this argument cannot be accepted.
In the first place, the High Court of Travancore was itself
abolished as a result of the merger and a new High Court
came into being-the High Court of Travancore-Cochin. The
rights of parties to prefer appeals to that High Court were
governed initially by ’Ordinance 11 of 1124 and later by Act
V of 1125. These provisions came into being subsequent to,
the institution of the suit. Therefore, the rights of a
person aggrieved by the decision of a suit instituted prior
to the coming into force of Act V of 1125 were only those
which were conferred by that Act. A litigant has no right
to contend that a Tribunal before whom he should have taken
an appeal when he instituted the suit, should not be
abolished. The Legislature has full power to enact a ’jaw
of that kind and it is not contended before us that the
repeal of the Travancore High Court Act was un-
constitutional. It would, therefore, follow that whatever
rights may have vested in the party in the matter of filing
an appeal were abrogated by competent legislature. New
rights were conferred in place of those which were taken
away and it is only the new rights which could be availed
of. After the new rights were conferred even they were
modified in one respect and that was with regard to the
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hearing of certain kinds of appeals by a Full Bench. The
rights
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to have the appeal heard by a Full Bench by virtue of the
provisions of Act V of 1125 had never vested in any of the
parties to the present litigation. Therefore, their
abrogation by a later law cannot entitle them to make a
complaint. There is yet another reason why the argument of
the learned counsel cannot be accepted. That reason is that
an appeal lay to a High Court and whether it is to be heard
by one, two or a larger number of judges is merely a matter
of procedure. No party has a vested right to have his
appeal heard by a specified number of judges. An appeal lay
to the High Court and the appeal in question was in fact
heard, and disposed by the High Court and, therefore, no
right of the party has been infringed merely because it was
heard by two judges and not by three judges. No doubt in
certain classes of cases, as for instance, cases which
involve an interpretation as to any provision of the
Constitution the Constitution provides that the Bench of the
Supreme Court hearing the matter must be imposed of judges
who will not be less than five in number. But it does nOt
follow from this that the legal requirements in this regard
cannot be altered by a competent body. We therefore
overrule the contention of the learned counsel and hold that
the appeal was rightly heard and decided by a Bench of two
judges.
In the result, we affirm the decree of the High Court and
dismiss the appeal with costs.
Appeal dismissed.
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