Full Judgment Text
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PETITIONER:
JASWANT SINGH & ANR.
Vs.
RESPONDENT:
THE CUSTODIAN OF EVACUEE PROPERTY, NEW DELHI
DATE OF JUDGMENT07/05/1985
BENCH:
VENKATARAMIAH, E.S. (J)
BENCH:
VENKATARAMIAH, E.S. (J)
SEN, A.P. (J)
CITATION:
1985 AIR 1096 1985 SCR Supl. (1) 331
1985 SCC (3) 648 1985 SCALE (1)1173
ACT:
East Punjab Evacuees’ (Administration of Property) Act
1947 Sections 6 and 8 Administration of Evacuee Property
(Chief Commissioners Provinces) Ordinance 1949 (Ordinance
No. XII of 1949 Section 15 Administration of Evacuee
Property Ordinance 1949 (Ordinance No. XXVII of 1949)
Sections 2(f), 7 and 17.
Decree holder-Properties of judgment debtor attached by
Court on October 9 1947-Judgment debtor declared evacuee and
property vesting in Custodian Court auction sale of
properties on October 16 1948-Purchase by decree holder-
Setting aside of sale by Custodian whether maintainable-
Crucial dates-December 31 1947 under Section 8(2) of 1947
Act-August 14 1947 under section 17(2) of Ordinance XXVII of
1949-Applicability of.
Civil Procedure Code 1908 !
Resjudicate-Principle-When is a subsequent proceeding
barred-Test for determination E
HEADNOTE:
Two brothers entered into an agreement to sell their
interest in an Ice Factory situated at Rawalpindi and
received the advance money. As the vendee failed to complete
the transaction, a suit was filed by the brothers for
specific performance of the agreement and for recovery of
the balance consideration. The vendee remained exparate. A
decree was passed by the Sub-Judge for the balance of the
consideration money and the vendee was given liberty to
apply to the court to get a regular sale deed. During the
pendency Or this suit the interest of one of the brothers
was assigned in favour of the appellant who was impleaded in
the suit. The vendee left India and was declared an evacuee.
A Receiver was appointed for the properties of the vendee
some of which were attached on October 9, 1947 and put to
sale in execution, but at the instance of the auction-
purchaser who became apprehensive on account of the judgment
debtor being an evacuee, the sale was got set aside on July
10 1948.
On July 17,1944 an application was filed by the
Custodian of Evacuee Property under the Fast Punjab
Evacuees’ (Administration of Property) Act 1947 claiming
that the attached properties were evacuee properties and
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under s. 8 were exempt from attachment. This application was
dismissed on July 19, 1948 on the ground that a Receiver was
appointed by the court who was in possession of the
properties, and no step was taken by the Custodian under
s.6.
332
The attached properties were again brought to sale and
on this occasion the appellant purchased the properties and
the sale was confirmed on October 16, 1948. The East Punjab
Act having been amended in 1948, another application was
made by the Custodian under the amended s. 8(2) of the Act
on December 11, 1948. This application was rejected on the
ground that the said provision was not applicable to court
sales of property attached prior to December 31, 1947.
The Administration of Evacuee Property (Chief
Commissioners Provinces) Ordinance, 1949 was promulgated on
July 10, 1949. The Custodian made an application under s.
15, on August 24, 194 for setting aside the sale but this
was dismissed for default on December 10, 1949. However,
during the pendency of this application another Ordinance
the Administration of Evacuee Property Ordinance 1949
(Ordinance No. XXVII of 1949) was promulgated with effect
from October 18, 1949. The Custodian made an application on
December 12, 1949 both under order 9, rule 9 of the Code of
Civil Procedure 1908 and under s.17(2) of Ordinance No,
XXVII Or 1949 for restoration of the application dismissed
for default on December 10, 1949, and for setting aside the
sale. The sub-court restored the application on February 11,
1950 but after hearing the application on February 28, 1950
dismissed the same on March 24, 1950.
The Custodian filed an appeal before the High Court
against the order of the Sub-Judge, dated March 24, 1950.
contending that the Sub-Judge had erred in not considering
the effect of s. 17 of Ordinance XXVII of 1949, but the
appeal was dismissed, on the ground that as the earlier
order dated March 28, 1949 passed by the Sub-Judge on the
basis of the East Punjab Act had IB became final, it was not
open to the Custodian to reagitate the matter again after
the promulgation of Ordinance No. XXVII of 1949,
The Custodian filed a Letters Patent Appeal which was
allowed by a Division Bench on December 30, 1963, on the
ground that by virtue of s. 17 of Ordinance No. XXVII of
1949 the sale in favour of the decree-holder/auction
purchaser was liable to be set aside on the application made
by the Custodian and the application made by the Custodian
was not barred by the rule of res judicata. The court sale,
under which one of the decree-holders had purchased the
properties, was accordingly set aside.
Dismissing the appeal of the auction purchaser.
^
HELD: 1. Ordinance No. XXVII of 1949 was replaced by
the Central Act i.e. Administration of Evacuee Property Act,
1950 with effect from April 17, 1950. Section 17 of the
Central Act was substituted with retrospective effect by
Administration of evacuee Property (Amendment) Act, 1951.
The only noticeable difference between s. 17 of the Central
Act is that the date August 14, 1947’ in s. 17(2) of
Ordinance No. XXVII of 1949 is substituted by ’March 1,
1947’. In other respects, there is no material difference
between the provision. [340 D; G]
333
2. In order to decide the question whether a subsequent
proceeding is barred by res judicate it is necessary to
examine the question with reference to the (i) forum or the
competence of the Court, (ii) parties and their
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representatives, (iii) matters in issue, (iv) matters which
ought to have been made ground for defence or attack in the
former suit and (v) the final decision. [341 D]
In the instant case, there is no dispute that the
parties and the properties involved in the proceedings in
which the order dated March 28, 1949 was passed and in the
proceedings commenced by the application which has given
rise to this appeal are the same. The only point of
difference; is that whereas in the former proceedings, the
Custodian had relied upon the provisions of s. 8 of the
least Punjab Act, in the present proceedings, reliance is
placed on the provisions of s. 17(2) of (Ordinance No. XXVII
of 1949 and s. 17(2) of the Central Act . [341 E-F]
3. (i) The Sub-Judge had not referred to Ordinance No.
XXVII of 1949 at all in his order. Sub-section (2) of
Section 17 of Ordinance No. XXVII of 1949 was wider in scope
and content than s. 8 East Punjab Act. A comparison of the
two would show that whereas s 8(2) of the East Punjab Act
affected sales of the properties by court which had been
attached after December 31, 1947 s. 17(2) of Ordinance No.
XXV11 of ]949 affected any transfer of evacuee property
under orders of a court or any other authority made after
the 14th day of August 1947. [342 C; D-F]
3. (ii) In the present case the properties in question
had been attached by the court on October 9, 1947 which was
a date anterior to December 31, 1S47 which was the crucial
date for purposes of s. 8(2) of the least Punjab Act but
subsequent to August 14, 1947 which was the crucial date for
purposes of s. 17(2) of Ordinance No.. XXVII of 1949. It was
not, therefore, open to the Custodian to contend in his
application which was disposed of by the Order dated March
28, 1949 that the court sale was liable to be set aside. The
cause of action for making that claim arose only after
Ordinance No. XXVII of 1945 was passed. [342G-H]
4. A cause of action for a proceeding has no relation
whatever to the defence which may be set up, nor does it
depend upon the character of the relief prayed for the
plaintiff or the applicant. It refers entirely to the
grounds set forth in the plaint or the application as the
case may be as the cause of action or in other words to the
media upon which the plaintiff or the applicant asks the
court to arrive at a conclusion in his favour. [343 A-B]
5. In order that a defence of res judicata may succeed
it is necessary to show that not only the cause of action
was the same but also that the plaintiff had an opportunity
of getting the relief which he is now seeking in the former
proceedings. The test is whether the claim in the subsequent
suit Or proceedings is in fact founded upon the same cause
of action which was the foundation of the former suit or
proceedings. [343 B.C]
334
6. In the instant case, but for the new law contained
in s. 17(2) of A ordinance No. XXVlI of 1949 the Custodian
would not have been able to question the court sale. It
therefore cannot be said that the present proceedings are
barred by the rule of res judicata, even though in both the
proceedings the prayer made by the Custodian was that the
sale of the properties in question should be set aside. I343
C-D]
JUDGMENT:
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 648 of
1972.
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From the Judgment and order dated 30.12.1963 of the
Punjab Circuit Bench at New Delhi in Letter Patent Appeal
No. 32-D of 1985.
S.C Malik, S.P. Mahajan and Harbans Singh for the
Appellants.
Miss Halida Khatun and R.N. Poddar for the Respondents.
The Judgment of the Court was delivered by
VENKATARAMIAH, J. Sardar Mela Singh and Sardar Hari
Singh were brothers They jointly owned an Ice Factory at
Rawalpindi which was known as ’Sat Kartar Ice Factory’. They
entered into an agreement on August 6, 1947 with one Saghir
Ahmed, who was a resident of Delhi, to sell in his favour
one-half of their interest in the said Ice Factory for a sum
of Rs. 90,000 and received Rs. 5,000 by way of advance.
Saghir Ahmed agreed to pay the balance of Rs. 85,000 and to
complete the sale transaction within a month but he failed
to do so. Saghir Ahmed having left India became an evacuee.
Sardar Mela Singh and Sardar Hari Singh anticipating that
Saghir Ahmed was likely to get possession of the Factory on
the basis’ of the agreement to sell executed in his favour
instituted a suit in forma pauperis on October 1, 1947 in
Suit No. 3 of 1947 on the file of the Senior Sub-Judge at
Delhi for specific performance of the agreement to sell and
inter alia prayed for a decree for a sum of Rs 85,000 which
was the balance of the consideration payable under the
agreement to sell referred to above and for Rs. 5,000 as
compensation for the loss caused by Saghir Ahmed in not
completing the transaction of sale in time. They stated that
on his paying the balance of consideration, a sale deed may
be obtained from them by Saghir Ahmed. Saghir Ahmed remained
ex parte and the suit was heard in his absence. On November
20, 1947 a decree was passed in the suit by the Sub-Judge,
Ist
335
Class, Delhi against Saghir Ahmed, directing him to pay to
Sardar Mela Singh and Sardar Hari Singh, the plaintiffs in
the suit, a sum of Rs. 86,000 along with costs of Rs.
2967/8/. Saghir Ahmed was given liberty to apply to the
court to get a regular sale deed executed by the plaintiffs.
It may be stated here that during the pendency of the suit
the interest of Sardar Mela Singh under the agreement had
been assigned in favour of one Jaswant Singh, who was
impleaded as plaintiff No. 3 in the suit. Thus Jaswant Singh
became a decree holder under the decree passed, as stated
above. That on October 3,1947 on an application made by the
plaintiffs a Receiver was appointed by the court to take
possession of some of the properties of Saghir Ahmed. That
on October 9, 1947 on an application made by the plaintiffs
certain immovable properties belonging to Saghir Ahmed,
namely residential flats Nos. S and 7 together with some
shops which were situated in Panchkuian Road, New Delhi and
another immovable property situated in Ghee Mandi, Pahar
Ganj, Delhi were attached before judgment. After the decree
was passed by the court, the attached properties were put to
sale in execution, but at the instance of the auction-
purchaser, who apparently had become apprehensive on account
of the status of Saghir Ahmed, who had become an evacuee,
the sale was set aside on July 10, 1948. The Custodian of
Evacuee Property, Delhi filed an application before the
executing court on July 17, 1948 claiming that the attached
properties were evacuee properties under the East Punjab
Evacuees’ (Administration of Property) Act, 1947 (East
Punjab Act No. XIV of 1947) (hereinafter referred to as ’the
East Punjab Act’), which was extended to Delhi also and that
under section 8 of that Act all properties of which the
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Custodian had taken possession under section 6 thereof were
exempt from attachment. That application was dismissed on
July 19, 1948 on the ground that the Receiver appointed by
the court was in possession of the properties and no steps
had been taken by the Custodian under section 6 of that Act.
The attached properties were again brought to sale and on
this occasion the properties were purchased by Jaswant
Singh, one of the decree-holders. The sale was confirmed on
October 16, 1948. The East Punjab Act was amended in 1948.
After such amendment sub-section (2) of section 8 of that
Act, as extended to Delhi, read as follows:
"8 (2) All subsisting attachments of evacuees’
property effected after 31st December, 1947 under
orders of a Civil or Revenue Court or Officer or other
authority shall cease to have any effect, and all
sales, leases or other
336
forms of alienation by any Court, Officer or authority
of A such property effected after the above mentioned
date shall be liable to be set aside at the instance of
the Custodian on an application filed before the Court,
officer or authority which ordered the sale, lease or
alienation, as the case may be, within three months of
the coming into force of East Punjab Evacuees’
(Administration of Property) (Second Amendment)
Ordinance, 1948, or the date of the sale, lease or
alienation whichever is later."
After the said amendment, the Custodian of the evacuee
Property made another application on December 11, 1948
before the learned Sub-Judge claiming that the sale of the
properties by the court was ineffective since the sale had
taken place after December 31, 1947. That application was
rejected by the learned Sub-Judge holding that the said
provision did not affect the court sales of properties which
had been attached prior to December 31, 1947 and that in the
instant case the properties that had been sold had been
attached on October 9, l 947. The said order of the learned
Sub-Judge was passed on March 28, 1949 and it became final.
Thereafter on June 13, 1949 the Governor-General of
India passed an ordinance called the Administration of
Evacuee Property (Chief Commissioners, Provinces) Ordinance,
1949 (Ordinance No. XII of 1949). Section 15 of that
Ordinance provided -
"15. Exemption from attachment, sale etc.-
(1) Save as otherwise expressly provided in this
Ordinance, no property which has vested in the
Custodian shall be liable to attachment, distress or
sale in execution of a decree or order of a Court or
any other authority, and no injunction in respect of
any such property shall be granted by any Court or
other authority.
(2) Any attachment or injunction subsisting on the
commencement of this Ordinance in respect of any
evacuee property which has vested in the Custodian
shall cease to have effect on such commencement, and
any transfer on such property under the orders of a
Court or any other authority made after such date as
may be specified in this behalf with reference to any
Province by the
337
Central Government by notification in the Official
Gazette, shall be set aside if an application is made
to such Court A or authority by or at the instance of
the Custodian within three months from the commencement
of this Ordinance."
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On the basis of the above provision, the Custodian made
an application before the Sub-Judge, Ist Class, Delhi on
August 24, 1949 for setting aside the sale. That application
was dismissed for default on December 10, 1949. But during
the pendency of the said application the Governor-General
had promulgated another ordinance called The Administration
of Evacuee Property Ordinance, 1949 (Ordinance No. XXVII of
1949) hereinafter referred to as ’Ordinance No. XXVII of
1949’) which came into force with effect from October 18,
1949.
Ordinance No. XXVII of 1949 provided for the
administration of evacuee property and for certain other
matters connected there- with. Under clause (i) of section 2
(d) of Ordinance No. XXVII of 1949 a person, who on account
of the setting up of the Dominions of India and Pakistan or
on account of civil disturbances or the fear of such
disturbances had left any place in any part of India for any
place outside India, was treated as an evacuee. Saghir
Ahmed, it is not disputed, was an evacuee falling within the
said definition. Section 2 (f) of Ordinance No. XXVII of
1949 defined the expression ’evacuee property’ thus:
"2. (f) "evacuee property" means any property in
which an evacuee has any right or interest (whether
personally or as a trustee or as a beneficiary or in
any other capacity), and includes any property-
(1) which has been obtained by any person from an
evacuee after the 14th day of August, 1947, by any mode
of transfer, unless such transfer has been confirmed by
Custodian, or
(2) belonging to any person who, after the
commencement of this Ordinance, does any of the acts
specified in clause (e) of section 2, or in which any
such person has any right or interest, to the extent of
such right or interest, but does not include-
338
(i) any ornament and any wearing apparel, cooking A
vessels or other household effects in the immediate
possession of an evacuee;
(ii) any property belonging to a joint stock company
the registered office of which was situated before the
15th day of August, 1947, in any place no forming part
of Pakistan and continues to be 80 situated after the
said date,"
Section 7 of Ordinance No. XXVII of 1949 empowered the
Custodian appointed thereunder to pass an order declaring
any property, which satisfied the definition in section 2
(f) thereof as ’evacuee property’ and on such declaration
being made such property vested in the Custodian by virtue
of sub-section (2) of section 8 thereof. It provided that
where immediately before the commencement of Ordinance No.
XXVII of 1949 any evacuee property had vested in any person
exercising the powers of a Custodian under any law repealed
by Ordinance No. XXVlI of 1949, such evacuee property would
on the commencement of Ordinance No. XXVII of 1949 be deemed
to have vested in the Custodian appointed or deemed to have
been appointed for the area under Ordinance No. XXVII of
1949 and would continue to so vest. It is again not disputed
that the properties of Saghir Ahmed which had been attached
in the suit and which had been sold through court had also
vested in the Custodian under Ordinance No- XXVII of 1949 by
virtue of section 8(2) thereof. It is now necessary to refer
to the crucial provision in Ordinance No. XXVI of 1949
insofar as this appeal is concerned. Section 17 of Ordinance
No. XXVII of 1949 read as follows:
"17. (1) Save as otherwise expressly provided in
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this Ordinance, no property which has vested in the
Custodian shall be liable to attachment, distress or
sale in execution of an order of a Court or of any
other authority, and no injunction in respect of any
such property shall be granted by any Court or other
authority.
(2) Save as otherwise expressly provided in this
Ordinance, any attachment or injunction subsisting on
the commencement of this Ordinance in respect of any
evacuee property which has vested in the Custodian
shall cease to have effect on such commencement, and
any
339
transfer of evacuee property under orders of a Court or
any other authority made after the 14th day of August,
A 1947, shall be set aside, if an application is made
to such Court or authority by or at the instance of the
Custodian within three months from the commencement of
this Ordinance R
It may be noted that under sub-section (2) of section
17 of Ordinance No. XXVII of 1949 any transfer of evacuee
property under orders of a court or any other authority made
after August 14, 1947 was liable to be set aside if an
application was made to such court or authority by or at the
instance of the Custodian within three months from the
commencement of Ordinance No. XXVII of 1949.
Now reverting to the narration of events, on December
15, 1949 the Custodian made an application dated December
12, 1949 both under Order 9, rule 9 of Code of Civil
Procedure, 1908 and under section 17(2) of Ordinance No.
XXVII of 1949 praying for restoration of the application
which had been dismissed for default on December 10, 1949
and for setting aside the sale as provided by section 17(2)
of Ordinance No. XXVlI of 1949. The application dated August
24, 1949 was restored on February 11, 1950 and that
application was heard on February 28, 1950. The application
was dismissed on March 24, 1950.
Against the order of the Sub-Judge, Ist Class, Delhi
dated March 24, 1950 the Custodian filed and appeal No. 97
of before the High Court of Punjab and one of the grounds
urged in the course of that appeal was that the learned Sub-
Judge had erred in not considering the effect of section 17
of Ordinance No. XXVII of 1949 on the case. That appeal was
dismissed by a Single Judge of the High Court of Punjab at
Chandigarh on August 26, 1958.
The learned Single Judge dismissed that appeal on
August 26, 1958 on the ground that as the earlier order
dated March 28, 1949 passed by the Sub-Judge, Ist Class,
Delhi on the basis of the East Punjab Act had become final,
it was not open to the Custodian to reagitate the matter
again after the promulgation of Ordinance No. XII of 1949 by
the Governor-General- Surprisingly, the learned Single Judge
did not also refer to Ordinance No. XXVII of 1949 and the
Administration of Evacuee Property Act, 1950 (Act XXXI of
340
1950) (hereinafter referred to as the ’Central Act’) which
had replaced the said ordinance.
Against the judgment of the learned Single Judge, the
Custodian filed an appeal in Letters Patent Appeal No. 32-D
of 1958 before the High Court of Punjab. That appeal was
heard by a Division Bench and it came to be allowed on
December 30, 1963. The Division Bench held that by virtue of
section 17 of Ordinance No. XXVII of 1949 the sale in favour
of the decree-holder/auction purchaser was liable to be set
aside on the application made by the Custodian and the
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application made by the Custodian was not barred by the rule
of res judicata. The Division Bench accordingly set aside
the court sale, under which one of the decree-holders had
purchased the properties. This appeal by certificate is
filed against the said decision of the Division Bench.
Before dealing with the merits of the case, it is
necessary to state that Ordinance No. XXVII of 1949 was
replaced by the Central Act i.e. Administration of Evacuee
Property Act, 1950 with effect from April 17, 1950. Section
17 of the Central Act was substituted with retrospective
effect by the Administration of Evacuee Property (Amendment)
Act, 1951 (Act XXII of 1951). Section 17(2) of the Central
Act read as follows:
"17. (2) Where, after the 1st day of March, 1947, any
evacuee property which has vested in the Custodian or
is deemed to have vested in the Custodian under the
provisions of this Act has been sold in execution of
any decree or order of any Court or other authority,
the sale shall be set aside if an application in that
behalf has been made by the Custodian to such Court or
authority on or before the 17th day of October, 1950,"
The only noticeable difference between section 17 of
Ordinance No. XXVII of 1949 and section 17 of the Central
Act is that the date ’August 14, 1947’ in section 17(2) of
Ordinance No. XXVII of 1949 is substituted by ’March 1,
1947’. In other respects, there is no material difference
between the provisions of Ordinance No. XXVII of 1949 and
the Central Act insofar as the question which arises for
consideration in this appeal is concerned.
The main ground urged in support of the above appeal by
the appellants of whom. appellant No. 1, Jaswant Singh is
the auction
341
purchaser, is that the order dated March 28, 1949 passed by
the Sub-Judge, Ist Class, Delhi having become final, it
would operate as A a bar to any enquiry into the application
which had been made by the Custodian after the promulgation
of Ordinance No. XII of 1949 and Ordinance No. XXVII of
1949. This ground is based on the principles underlying
section 11 of the Code of Civil Procedure, 1908. That
section provides that no court shall try any suit or issue
in which the matter directly and substantially in issue has
been directly and substantially in issue in a former suit
between the same parties, or between parties under whom they
or any of them claim, litigating under the same title, in a
court competent to try such subsequent suit or the suit in
which such issue has been subsequently raised, and has been
heard and finally decided by such court. Explanation IV to
that section provides that any matter which might or ought
to have been made a ground of defence or attack in such
former suit shall be deemed to have been directly and
substantially in issue in such suit. It is well settled that
in order to decide the question whether a subsequent
proceeding is barred by res judicata it is necessary to
examine the question with reference to the (i) forum or the
competence of the Court, (ii) parties and their
representatives, (iii) matters in issue, (iv) matters which
ought to have been made ground for defence or attack in the
former suit and (v) the final decision. In the instant case
there is no dispute that the parties and the properties
involved in the proceedings in which the order dated March
28, 1949 was passed and in the proceedings commenced by the
application which has given rise to this appeal are the
same. The only point of difference between them however is
that whereas in the former proceedings, the Custodian had
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relied upon the provisions of section 8 of the East Punjab
Act, in the present proceedings reliance is placed by him on
the provisions of section 17(2) of Ordinance No. XXVII of
1949 and section 17(2) of the Central Act. Section 8 of the
East Punjab Act which was relied on by the Custodian in the
earlier proceedings stated that all subsisting attachments
of evacuee property effected after December 31, 1947 under
orders of a Civil or Revenue court or an officer or other
authority would cease to have any effect, and all sales,
leases or other forms of alienation by any court, officer or
authority of such property effected after the above
mentioned date were liable to be set aside at the instance
of the Custodian on an application filed before the court,
officer or authority concerned. The application made by the
Custodian under that provision was dismissed by the Sub-
Judge, Ist Class, Delhi as already mentioned on the
342
ground that the attachment of the properties involved in the
case had A been effected prior to December 31, 1947 and,
therefore, the sale of those properties was not assailable
under section 8 of the East Punjab Act. The next application
with which we are concerned in this appeal was filed by the
Custodian on August 24, 1949 before the court. By then
Ordinance No. XII of 1949 had been promulgated. Ordinance No
XXVII of 1949 which came into force on October 18, 1949
during the pendency of that application had repealed and
replaced Ordinance No. XII of 1949, and therefore the Sub-
Judge, Ist Class, Delhi should have taken into consideration
the provisions of Ordinance No. XXVII of 1949 on March 24,
1950 when he disposed of the said application. As mentioned
earlier, the learned Sub-Judge had not referred to Ordinance
No. XXVII of 1949 at all in the course of his order. Sub-
section (2) of section 17 of Ordinance No. XXVII of 1949 was
wider in its scope and content than section 8 of the East
Punjab Act which arose for consideration at the time when
the order dated March 28, 19l9 was passed by the court.
Section 17(2) of Ordinance No. XXVII of 1949 which conferred
a new right on the Custodian provided that any transfer of
evacuee property under orders of a court or any other
authority made after the 14th day of August, 1947 was liable
to be set aside if an application was made to such court or
authority by or at the instance of the Custodian within
three months from the commencement of the Ordinance. A
comparison of section 8(2) of the East Punjab Act with
section 17(2) of Ordinance No. XXVII of 1919 would show that
whereas section 8(2) of the East Punjab Act affected sales
of properties by court which had been attached after
December 31, 1947, section 17(2) of Ordinance No. XXVII of
1949 affected any transfer of evacuee property under orders
of a court or any other authority made after the 14th day of
August, 1947. In the present case the properties in question
had been attached by the court on October 9, 1947 which was
a date anterior to December 31, 1947 which was the crucial
date for purposes of section 8(2) of the East Punjab Act but
subsequent to August 14, 1947 which was the crucial date for
purposes of section 17(2) of Ordinance No. XXVII of 1949. It
was not, there fore, open to the Custodian to contend in his
application which was disposed of by the order dated March
28, 1949 that the court sale was liable to be set aside The
cause of action for making that claim arose only after
Ordinance No. XXVII of 1949 was passed. A cause of action
for a proceeding has no relation whatever to the defence
which may be set up, nor does it depend upon the character
of the
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relief prayed for by the plaintiff or the applicant. It
refers entirely to the grounds set forth in the plaint or
the application as the case may be as the cause of action or
in the other words to the media upon which the plaintiff or
the applicant asks the court to arrive at a conclusion in
his favour. In order that a defence of res judicata may
succeed it is necessary to show that not only the cause of
action was the same but also that the plaintiff had an
opportunity of getting the relief which he is now seeking in
the former proceedings. The test is whether the claim in the
subsequent suit or proceedings is in fact founded upon the
same cause of action which was the foundation of the former
suit or proceedings. In the instant case but for the new law
contained in section 17(2) of Ordinance XXVII of 1949 the
Custodian would not have been able to question the court
sale in question. Since the Custodian could not, therefore,
have asked for the relief which he claimed in the
application which has given rise to this appeal before March
28, 1949 it cannot be said that the present proceedings are
barred by the rule of res judicata, even though in both the
proceedings the prayer made by the Custodian was that the
sale of the properties in question should be set aside. We
are, therefore, of the view that the Division Bench was
right in holding that the present proceedings were not
barred by the rule of res judicata.
One other submission made on behalf of the appellants
in this case is that no application had been made by the
Custodian relying expressly upon section 17(2) of Ordinance
No. XXVII of 1949. There is no substance in this submission
because we find that there is a specific reference to the
said provision in the application dated December 12, 1949,
filed before the court of the Sub-Judge, Ist Class, F Delhi
on December 15, 1949. This application is referred to by the
Sub-Judge at the commencement of this order dated March 24,
1950 while the application dated August 24, 1949 is referred
to in the third paragraph of that order. It appears from
that order that the Sub-Judge had consolidated both the
applications and disposed them of together by the same order
though he failed to apply the provisions of section 17(2) of
Ordinance No. XXVII of 1949. Hence it cannot be accepted
that no fresh application had been made after Ordinance No.
XXVII of 1949 had come into force.
In the result, we affirm the decision of the Division
Bench of the High Court of Punjab and dismiss the appeal.
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We, however, make it clear that the setting aside of
the court sale does not come in the way of any other remedy
open to the decree-holders in the instant case to recover
the amount which may be due to them under the decree from
the judgment debtor or the Custodian or any other authority.
Any proceedings that may be initiated by the decree-holders
for realising the amount due to them, shall be disposed of
by the concerned authority in accordance with law. There
will be no order as to costs.
N.V.K. Appeal dismissed.
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