Full Judgment Text
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 11
PETITIONER:
SITAL PARSHAD
Vs.
RESPONDENT:
KISHORILAL
DATE OF JUDGMENT:
06/03/1967
BENCH:
WANCHOO, K.N.
BENCH:
WANCHOO, K.N.
BACHAWAT, R.S.
RAMASWAMI, V.
CITATION:
1967 AIR 1236 1967 SCR (3) 101
ACT:
Code of Civil procedure, 1908 (Act 5 of 1908) O. XXXIV-
Preliary decree made final while appeal pending-Variation in
appeal.
HEADNOTE:
The respondent obtained a preliminary decree in 1952 against
the appellant for the sale of the mortgaged property. He
appealed to the Court for interest and costs which was not
allowed in the prelitry decree. The appellants did not
appeal against the preliminary fee. On respondent’s
application, the preliminary decree was made in 1954. While
execution proceedings were pending, the respondent’s appeal
was allowed in 1956 in respect of the interest and costs.
960 the appellant objected under s. 47 C.P.C., that as no
final fee. had been prayed for and passed after the judgment
of the High court in appeal and as more than three years had
passed since the judgment of the High Court, there was no
final decree to be executed, as decree which had been
prepared in 1954 on the basis of which union was going on
must be held to have no force and effect after judgment of
the High Court making a variance in the preliminary ee. The
respondent contended that it was not necessary to a apply a
fresh final decree after the judgment of the High Court in
appeal that the final decree already passed in 1954 remained
good and was suitable. The appellant’s objection was
rejected. In appeal, this it.
HELD : The appeal must fail.
Where a preliminary . decree has been reversed in appeal,
the final fee must fall to the ground for there is no
preliminary decree therein support of it. It is not
necessary in such a case for the defendant to go to the
court passing the final decree and ask it to set aside final
decree. If an execution petition is made on such a final
decree though more than three years after the decree in
appeal has been raised, the defendant has simply to ask the
court where the execution ton is made to refuse to execute
the decree on the ground that the minary decree in support
of it has been set aside. In such a case the duty of the
executing court to take note of the fact that the minary
decree in support of the final decree has been reversed and
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 11
could refuse to execute the final decree even though the
fact is right to its notice more than three years after the
decree in appeal repairing the preliminary decree and no
question of limitation arises.
G-107 C]
Where the decree in appeal from the preliminary decree
confirms it into, the final decree already passed needs no
change and must contend to stand. It is true that if no
final decree has been passed before appeal from the
preliminary decree is decided, the decree-holder gets years
from the date of the decree in appeal from the preliminary
fee to apply for a final decree. That however is a question
of limitation and in such a case three years run from the
date of the decree in final from the preliminary decree in
order apparently not to compel older to apply for a final
decree if he does not wish to do
102
so and wants to await the result of the appeal from the
preliminary decree. But if the decree-holder does not wish
to await the result of the appeal from the preliminary
decree he can ask for a final decree in the mean time and if
the preliminary decree is confirmed in toto the final decree
will need no change and can be executed as it stands. the
decree holder in such a case need not apply for a fresh
final decree and can execute the final decree already passed
in the meantime. In all cases where a final decree has been
passed in the meantime while an appeal from the preliminary
decree, is pending, the existence of the final decree ought
to be brought to the notice of the appellate court and it is
the duty of the appellate court to give directions with
respect to the final decree if it considers necessary.
Further in a case where an appeal from the preliminary
decree is dismissed and the preliminary decree is confirmed
in toto, it does not follow that the period of payment
allowed in the trial court’s decree is extended
automatically even though a final decree has been passed in
the meantime. It is the duty of the -appellate court to
indicate, when dismissing the appeal from a preliminary
decree in toto, whether the time for payment is to be
extended and if it does not do so, the original time granted
for the purpose must stand. where the appellate court, in an
appeal from a preliminary decree,, says nothing about the
time fixed for payment and confirms the preliminary decree
In toto that time stands and does not automatically get
extended for six months or such other period as might have
been fixed in the preliminary decree from the date of the
decree in appeal from the preliminary decree It is not
obligatory on a court of appeal to fix a fresh date for
redemption in a mortgagor’s appeal from a mortgage decree
for sale even where there is some variation in the amount
payable under the preliminary decree. [110 B-111 C]
Where the amount decreed is increased, as in the present
case, matter stands on exactly the same footing as in the
case where the appeal from the preliminary decree by the
defendant is dismissed in toto Where variation is in favour
of the defendant and the amount fixed for redemption is
reduced, it is the duty of the appellate court when it is
reducing the amount payable for redemption to fix some time
for the purpose in the interest of justice. But it is not
bound to do so and it does not do so, the original time
fixed in the preliminary decree stands even though the
amount for redemption may have been reduced. There is no
harm to the defendant mortgagor in such a case, for, under O
XXXIV r. 5(1) the mortgagor would have time up to the date
confirmation of sale to deposit the amount and save the
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 3 of 11
property. (111D-G]
Even where there has been a variation in the decree, the
final decree if passed in the meantime, requires no formal
amendment in view of the form in which a final decree for
sale is prepared. All that happens in that where the
preliminary decree is varied one way or the other, the final
decree which is entirely dependent on the preliminary decree
stands varied by its own terms in accordance with the terms
of the preliminary decree passed in appeal. It is the duty
of the executing court when it is executing the final decree
passed in the meantime to see that the execution is in
accordance with the preliminary decree passed in appeal
which is the support of the final decree. Of course, if the
appellate court when deciding the appeal gives any
particular direction with respect to the preparation of a
fresh preliminary decree that direction has to be carried
out. Where there are. no specific directions of the appel-
late court with respect to the preparation of it new
preliminary decree, and all that the appellate court orders
is merely a variation in the amount for redemption, it is
duty of the executing court to see when it .is asked to
execute a final decree prepared in the meantime that the
103
modifications made by the appellate court in the appeal from
the preliminary decree are given effect to during the
execution proceeding% [111 H-112 E]
in the circumstances of the present case it was the duty of
the Executing court, when variations made by the appellate
court in appeal form 6 and all that the executing court had
to do was to take note of account in executing the final
decree.’ which had been prepared in the meantime. The final
decree in terms required no change in view of from the
preliminary decree were brought to its notice, to take them
into the fact that the supporting preliminary decree bad
been varied and to execute the final decree in accordance
therewith. [112 G-H]
Perikaruppan Chettiar v. Venugopal Pillal, I.L.R. [1947)
Mad. 132; Rukhmabai v. Krishnarao, I.L.R. [1952] Nag. 243
and Gandavaraup Venkata Subba Rao v. Vavilal Kesavayya,
A.I.R. [1955] A.P. 254; proved.
Ram Nath v. Deoki Nand Krishna, I.L.R. [1947] All. 40; Abdul
Jalil v. Amar Chand Paul, (1913) XVIII Cal. L.J. 223 and
Mewa Singh v. Tara Singh, A.I.R. [1933] Lab. 859;
disapproved.
Muhammad Sulaiman Khan v. Muhammad Yar Khan, I.L.R. [1888]
11 All. 267; Jowad Hussain v. Gendan Singh, (1926) 53 I.A.
197 and Fitzholmes v. Bank of Upper India, (1926) 54 I A.
52; referred to.
JUDGMENT:
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 855 of 1964.
Appeal from the judgment and order dated November 7, 1962 of
the Punjab High Court in Letters Patent Appeal No. 334 of
1961.
Rameshwar Dial and A. D. Mathur, for the appellants.
B. C. Misra, M. V. Goswami and S. S. Shukla, for the res-
pondent.
The Judgment of the Court was delivered by
Wanchoo, J. This is an appeal on a certificate granted by
the High Court of Punjab and raises a question of law on
which there is some difference of opinion amongst the High
Courts. Brief Facts necessary for present purposes are
these. The respondent obtained a preliminary decree in a
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 4 of 11
mortgage suit against the appellants on March 13, 1952. The
decree was for sale of the mortgaged property. As the
preliminary decree did not allow interest to the respondent
from the date of the suit to the date of the preliminary
decree, he filed an appeal to the High Court in that con-
nection. The appellants (Judgment-debtors) were apparently
content with the preliminary decree for they filed no
appeal. As there was no stay order passed by the High
Court, for the judgment-debtors had not appealed, the
respondent applied for making the preliminary decree final
and on August 16, 1954 the preliminary decree was made final
under 0.XXXIV r. 5, of the Code of Civil Procedure. On
August 18, 1954, the respondent took
104
out execution of the final decree. On December 17, 1956,
while the execution proceedings were pending, the respondent
holder’s appeal in the High Court was allowed and the High
Court allowed interest to the respondent. On April 2, 1960,
the appellants objected under s. 47 of the Code of Civil
Procedure that as no final decree had been prayed for and
passed after the judgment of the High Court in appeal and as
more than three years had passed since the judgment of the
High Court, there was no final decree to be executed, as the
final decree which had been prepared on August 16, 1954 on
the basis of which execution was going on must be held to
have no force and effect after the judgment of the. High
Court making a variance in the preliminary decree. The
respondent however contended that it was not necessary to,
apply for a fresh final decree after the judgment of the
High Court in appeal and that the final decree already
passed on August 16, 1954 remained good and was executable,
The executing court rejected the contention of the
appellants Thereupon the appellants went in appeal to the
High Court and this appeal was dismissed by a learned Single
Judge. Then the appellants came in Letters Patent Appeal
which has also been dismissed. As however there was some
difference of opinion amongst the High Courts on the
question of law raised in the, appeal, a certificate was
granted by the High Court; and that is, how the matter has
come before us.
We may indicate the two main lines of decisions in this
matter. The first, which is in favour of the appellants is
represented by Rant Nath v. Deoki Nand Krishna(1). In that
case a Preliminary decree was passed in a. suit on a
mortgage. pending an Appeal from the preliminary decree,
the final decree was passed. Thereafter the appeal was
decided and the preliminary decree was modified and a fresh
preliminary decree was directed to be Prepared which was
done. The decree-holder never applied for the execution of
the final decree which had been prepared earlier to bring it
in conformity with the decree of the appeal court or for
preparation of a fresh final decree latter however more than
three years after the judgment in appeal the decree holder
applied for amending the final decree so asked to bring it
in accord with the preliminiary decree passed by the real
court had been varied pared fell to the ground and could
which had already been premade consistent with the
priliminary not be executed until it was late court or a
fresh final decree was prepared in accordance with it
further ask the application for amendment was made more
(1) I.L.R.[1947] All 40.
105
than three years after the judgment of the appeal court
it was barred by art. 181 of the Limitation Act. .
The leading case on the other side is Perikaruppan Chettiar
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 5 of 11
v.Venugopal Pillai(1). In that case a preliminary mortgage
decree had been passed on May 4, 1929 and there was an
appeal against it by one of the defendants. Pending the
appeal, as further proceedings in the suit had not been
stayed, the trial court passed a final decree on. September
23, 1933 on the basis of the preliminary decree passed on
May 4, 1929. On November 26, 1934, the appeal was allowed
in part, which had the effect of reducing the amount
decreed. No fresh final decree was passed on the basis of
the appellate decree. After the decision of the High Court
the decree-holder filed an execution petition on September
23, 1936 to execute the final decree passed on September 23,
1933 and again another execution petition in 1939 and
finally another one on March 31, 1942. Along with the last
execution petition he filed an application for amendment of
the execution petition by substituting the amount awarded by
the appellate decree in place of the amount awarded by the
final decree dated September 23, 1933. The amendment was
allowed by the first court. Thereupon the judgment-debtor
went in appeal to the High Court contending that the
application for amendment filed in March 1942 was barred by
time as it was more than three years after the decree of the
High Court in appeal. The High Court dismissed the appeal
holding that the final decree already prepared can be
executed with such modifications as may be necessary in the
circumstances, whether the preliminary decree is affirmed in
toto or is varied to any extent or in any particular in
appeal The High Court further held that it was the duty of
the Court which passed the final decree to carry out such
modifications as might be necessary by reason of the
decision of the appellate court in an appeal against the
preliminary decree when its attention was drawn to the
necessity for such alteration by the decree-holder. So long
as the decree was kept alive, there could be no bar of
limitation to an application of this kind. Such an
application really called upon the court to carry out
modifications which in law automatically took place in the
final decree already prepared before the decree of the
appellate court.
The question before us in the present appeal therefore is
which of these two views is correct. Before we consider
this question we many state certain well-settled
propositions with respect to preliminary and final decrees
in mortgage suits and the effect of an appellate decree in
general on the decree of the trial court. Generally
speaking, the decree of the appellate court supersedes the
decree of the trial court even when it confirms that decree
and
(1) I.L.R. [1947] Mad. 132.
M4 SupCI/67--8
106
therefore it is well-settled that only the appellate court
can amend the decree thereafter : [see Muhammad Sulaiman
Khan v. Muhammad Yar Khan(1)]. It is equally well-settled
that where an appeal has been taken from a preliminary
mortgage decree and is decided, the time for preparation of
final decree is three years from the date of the appellate
decree even though the appellate court may not have extended
the time for payment provided in the preliminary decree,
where no final decree has been prepared in between : [see
Jowad Hussain v. Gendan Singh ( 2 ) J. This applies even to
a case where the decree of the appellate court is made more
than three years after the time fixed for payment in the
preliminary decree : [see Fitzholmes v. Bank of Upper India
(3) ]. Further it is well-settled that the mere fact that
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 6 of 11
there is an appeal from a preliminary decree does not oust
the jurisdiction of the trial court to prepare a final
decree even while the appeal is pending unless there is a
stay order : [see Sat Prakash v. Bahal Rai ( 4 ) ]. Even if
a final decree has been passed and an appeal from a
preliminary decree is not incompetent and it is not
necessary for a party to appeal both from the preliminary
decree and the final decree in order to maintain his appeal
against the preliminary decree. In such a case where the
preliminary decree is set aside the final decree is
superseded whether the appeal is brought before or after the
passing of the final decree : [see Talebali v. Abdul
Aziz(5)]. Further it was observed in the last case that
where an appellate court sets aside or varies a preliminary
decree it can, and indeed could, give direction for the
setting aside or varying of the final decree, if the
existence of the final decree is brought to its notice as in
all cases it ought to be.
Let us now turn to the problem before us keeping in mind the
propositions indicated above. Now in an appeal from a
preliminary decree one of three things is possible.
Firstly, the appeal may be allowed and the preliminary
decree reversed. Secondly, the appeal may be dismissed and
the preliminary decree confirmed in -toto. And thirdly,
there may be modification of the preliminary decree in
appeal and this modification may be one of two kinds : (i)
the amount decreed may be increased or (ii) the amount
decreed may be reduced.
There can in our opinion be no doubt that if in appeal the
preliminary decree is reversed, the final decree must fall
to the ground for there is no preliminary decree thereafter
in support of it. It is not necessary in such a case for the
defendant to ’go to the court passing the final decree and
ask it to set aside the final decree. Even if the defendant
does not make an application to
(1) I.L.R. (1888) 11 All. 267.
(3) (1926) 54 I. A. 52,
(2) [1926] 53 I.A. 197.
(4) I.L.R. [1931] LXII All 283.
(5) I.L.R. [1930) LVII Cal. 1013.
107
the court for setting aside the final decree within three
years because the preliminary decree has been reversed, the
decree-holder cannot get the right to execute the final
decree which has no preliminary decree in support of it.
If an execution petition is made on such a final decree even
though more than three years after the decree in appeal has
been reversed, the defendant has simply to ask the court
where the execution petition is made to refuse to execute
the decree on, the ground that the preliminary decree in
support of it has been set aside. It seems to us that in
such a case it is the duty of the executing court to take
note of the fact that the preliminary decree in support of
the final decree has been reversed and it should refuse to
execute the final decree even though the fact is brought to
its notice more than three years after the decree in appeal
reversing the preliminary decree. In such a case in our
opinion no question of limitation arises.
Now take the second case where the preliminary decree has
been confirmed in toto and a final decree passed on such
decree already exists. It is contended on behalf of the
appellants that in such a case the decree-holder must
apply for preparation of a final decree within three years
of the judgement of the appellate court confirming the
preliminary decree in toto. Reliance in this connection is
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 7 of 11
placed on an observation in the case of Fitzholmes(1) in
these words :
"The mortgagors were right in their objection
that these decrees should not be enforced till
six months had elapsed from the judgment of
the High Court."
In that case the preliminary decree had given six months
time for payment and this observation seems to suggest that
where the preliminary decree is confirmed six months given
therein begins from the date of the confirmation of the
preliminary decree in appeal. With respect, the observation
seems to be obiter for the point really in dispute in that
case was whether a final decree could be asked for within
three years of the judgment of the appellate court
confirming the preliminary decree and it was held that it
could be so asked for, even though the time fixed in the
preliminary decree for redemption had not been extended. In
that case no final decree had been passed in-between and no
question arose as to what would be the effect of the decree
passed in appeal from the preliminary decree on a final
decree passed in the meantime. This observation in that
case is therefore in our opinion of no help to the
appellants in determining the question before us.
To determine this question we have to look to the provisions
of 0. XXXIV of the Code of Civil Procedure providing for
preli-
(1) [1926] 54 I.A. 52.
108
minary and final decrees. Preliminary decree in a suit for
sale with which we are concerned in the present case is
prepared under O. XXXIV r. 4 read with O. XXXIV r. 1. It
provides (a) for an account to be taken of what was due to
the plaintiff at the date of such decree for principal and
interest on the mortgage, the costs of the suit, if any,
awarded to him, and other costs, charges and expenses
properly incurred by him upto that date in respect of his
mortgage security, together with interest thereon, (b) for
declaring the amount so due at that date, and (c) for
directing that, if the defendant pays into court the amount
so found or declared on or before such date as the court may
fix within six months from the date on which the court
confirms and countersigns the account taken under cl. (a) or
from the date on which such amount is declared in court
tinder cl. (b), as the case may be, and thereafter pays such
amount as may be adjudged due in respect of subsequent
costs, charges and expenses as provided in r.10,together
with subsequent interest on such sums respectively as
provided in r. 11, the plaintiff shall deliver up to the
defendant or to such person as the defendant appoints, all
documents in his possession or power relating to the
mortgaged property, and shall, if so required, retransfer
the property to the defendant at his cost free from the
mortgage and from all encumbrances, and shall also, if
necessary, put the defendant in possession of the property.
According to the rule, the decree shall further provide that
in default of the payment by the defendant as directed the
plaintiff shall be entitled to apply for a final decree
directing that the mortgaged property or a sufficient part
thereof be sold, and proceeds of the same (after deduction
therefrom of the expenses of the sale) be paid into court
and applied in payment of what has been found or declared
under or by the preliminary decree due to the plaintiff,
together with such amount as may have been adjudged due in
respect of subsequent costs, charges, expenses and interest,
and the balance, if any, be paid to the defendant or other
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 8 of 11
persons entitled to receive the same.
It wilt thus be seen that the preliminary decree in a suit
for sale determines the amount due on the date thereof after
accounting if necessary and directs the defendant to pay
that amount together with interest and subsequent costs,
charges and expenses as provided in rr. 10 and 11. Thus the
preliminary decree is complete in itself and the amount due
to the decree-holder right upto the time that the execution
is complete is either provided therein or worked out from
the directions contained therein.
Then follows the final decrees under 0. XXXIV r. 5 (3) with
which we are concerned in the present case. That directs
that where payment is not made on or before the date fixed
in the preliminary decree the court shall on application
made by the plaintiff in this behalf pass a final decree
directing that the mortgaged
109
property or a sufficient part thereof be sold, and that the
proceeds of the sale be dealt with in the manner provided in
sub-r. ( 1) of r. 4. Further under 0. XXXIV r. 5 ( 1 ) the
defendant has a further right at any time before the
confirmation of the sale made in pursuance of a final decree
passed under sub-r. (3) of this rule, to pay the money in
court, and if that is done the court has to make directions
in accordance with this sub-rule.
It will be seen from these provisions that a final decree
does not mention any amount and is merely based on the
preliminary decree and in a sense carries out that decree.
Form No. 6 of the final decree in the First Schedule,
Appendix D also bears this out. It says that as the payment
has not been made as directed by the preliminary decree, it
is hereby ordered and decreed that the mortgaged property
mentioned in the aforesaid preliminary decree or a
sufficient part thereof be sold, and that for the purposes
of such sate the plaintiff shall produce before the court or
such officer as it appoints all documents in his possession
or power relating to the mortgaged property. The final
decree further directs as follows :-
"And it is hereby further ordered and decreed
that the money realised by such sale shall be
paid into the court and shall be only applied
(after deduction therefrom of the expenses of
the sale) in payment of the amount payable to
the plaintiff under the aforesaid preliminary
decree and under any further orders that may
have been passed in this suit and in payment
of any amount which the court may have
adjudged due to the plaintiff for such costs
of the suit including the costs of this
application and such costs, charges and
expenses as may be payable under r. 10,
together with such subsequent interest as may
be payable under r. 1 1 of 0. XXXIV of the
First Schedule to the Code of Civil Procedure,
1908 and that the balance if any shall be paid
to the defendant or other persons entitled to
receive the same."
It will be seen from this form of the final decree that it
is entirely dependent upon the preliminary decree.
Therefore where the preliminary decree has been confirmed in
toto and the appeal there form has been dismissed, there is
no change whatever to be made in the final decree, for that
decree already provides for subsequent interest after the
date of the preliminary decree and for subsequent costs,
charges and expenses. Therefore, in such circumstances if
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 9 of 11
the final decree has already been prepared before the
judgment in appeal from the preliminary decree, there is
nothing more to be done and the final decree as it stands
needs no amendment. It is true that there is a general
principle that a decree passed in appeal even where it
confirms the trial court’s
110
decree supersedes that decree. But where we are dealing
with a decree passed in appeal from a preliminary decree and
the final decree has already been passed in the meantime,
the decree of the appellate court on appeal from the
preliminary decree only supersedes the preliminary decree;
it cannot and does not supersede the final decree which was
not taken in appeal. Therefore if the decree in appeal from
the preliminary decree confirms it in toto, the final decree
already passed needs no change and must continue to stand.
It is true that if no final decree has been passed before
the appeal from the preliminary decree is decided, the
decree-holder gets three years from the date of the decree
in appeal from the preliminary decree to apply for a final
decree. That however is a question of limitation and courts
have held that in such a case three years run from the date
of the decree in appeal from the preliminary decree in order
apparently not to compel the decree-holder to apply for a
final decree if lie does not wish to do so and wants to
await the result of the appeal from the preliminary decree.
But if the decree-holder does not wish to await the result
of the appeal from the preliminary decree he can ask for a
final decree in the meantime, and if the preliminary decree
is confirmed in toto the final decree will need no change
and can be executed as it stands. The decree holder in such
a case need not apply for a fresh final decree and can
execute the final decree already passed in the meantime. In
such cases where a final decree has been passed in the
meantime while an appeal from the preliminary decree is
pending, it is well to remember the observations of Rankin
C. J. in Talabali’s case(1) that the existence of the final
decree ought to be brought to the notice of the appellate
court in all cases and that it is the duty of the appellate
court to give directions with respect to the final decree if
it considers necessary.
Further we are of opinion that in a case where an appeal
from the preliminary decree is dismissed and the preliminary
decree is confirmed in toto, it does not follow that the
period of payment allowed in the trial court’s decree is
extended automatically even though a final decree has been
passed in the meantime. it seems to us that it is the duty
Of the appellate court to indicate when dismissing the
appeal from a preliminary decree in toto whether the time
for payment is to be extended and if it does not do so, the
original time granted for the purpose must stand. In the
present case the decree passed in appeal from preliminary
decree shows that after setting out the decree of the trial
court, all that the appellate court did was to say that the
preliminary decree passed by the trial court was amended to
this extent that the plaintiff would also be entitled to
interest at Rs. 6 per cent on the principal amount from the
date of the suit till the date of the decree and
(1) I.L.R. [1930] LVII Cal. 1013.
111
also gave the plaintiff costs of the appeal. There was no
direction for preparation of any fresh preliminary decree;
nor was there any direction of changing the period fixed in
the preliminary decree for payment of the amount. Where
therefore the appellate court in an appeal from a
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 10 of 11
preliminary decree says nothing about the time fixed for
payment and confirms the preliminary decree in toto that
time in our opinion stands and does not automatically get
extended for six months or such other period as might have
been fixed in the preliminary decree from the date of the
decree in appeal from the preliminary decree. We agree with
the view taken in Rukhmabai v. Krishnarao(1) that it is not
obligatory on a court of appeal to fix a fresh date for
redemption in a mortgagor’s appeal from a mortgage decree
for sale even where there is some variation in the amount
payable under the preliminary decree.
Then we come to the third class of cases where there has
been variation by the appellate court in appeal from the
preliminary decree. This variation can be of two kinds;
firstly, the amount fixed for redemption may be increased as
happened in the present case, or secondly, it may be
reduced. In the first case we are of opinion that the
matter stands on exactly the same footing as in the case
where the appeal from the preliminary decree by the defen-
dant is dismissed in toto. However, in the second case,
where variation is in favour of the defendant and the amount
fixed for redemption is reduced, a question may arise
whether the period for redemption can be said to have been
extended for six months or such other time as may be
provided in the preliminary decree under appeal but
beginning from the date of the decree in appeal. In such a
case we are of opinion that it is the duty of the appellate
court when it is reducing the amount payable for redemption
to fix some time for the purpose in the interest of justice.
But it is not bound to do so and if it does not do so, the
original time fixed in the preliminary decree stands even
though the amount for redemption may have been reduced :
[see Rikhmabai’s case(1)]. Nor do we think that any serious
harm is done to the defendant mortgagor in such a case for
under 0. XXXIV r. 5(1), even though no fresh time may have
been fixed by the appellate court whether the amount for
redemption is reduced, the mortgagor-defendant would have
time upto the date of the confirmation of sale to deposit
the amount and save the property. In these circumstances we
see no reason to distinguish even this case where variation
results in reduction of the amount of redemption from the
case where the decree of the appellate court affirms the
preliminary decree in appeal in toto.
We are further of opinion that even where there has been a
variation in the decree, the final decree, if passed in the
meantime,
(1) I.L.R. [1952] Nag. 243.
112
requires no formal amendment in view of the form in which a
final decree for sale is prepared. All that happens is that
where the, preliminary decree is varied one way or the
other, the final decree which is entirely depending on the
preliminary decree stands varied by its own terms in
accordance with the terms of the preliminary decree passed
in appeal. It is the duty of the executing, court when it
is executing the final decree passed in the meantime to see
that the execution is in accordance with the preliminary
decree passed in appeal which is the support of the final
decree. Of course, if the appellate court when deciding the
appeal gives any particular direction with respect to the
preparation of a fresh preliminary decree that direction has
to be carried out. Ramnath’s case(1) was of this latter
kind. There the appellate court directed the preparation of
a fresh preliminary decree in accordance with its judgment.
In such a case it may be said that as there had to be a new
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 11 of 11
preliminary decree in accordance with the direction of the
appellate court, a new final decree in accordance with the
new preliminary decree might have to be prepared. But where
there are no specific directions of the appellate court with
respect to the preparation of a new preliminary decree, and
all that the appellate court orders is merely a variation in
the amount for redemption-be it more or less than that pro-
vided in the preliminary decree-, it is in our opinion the
duty of the executing court to see when it is asked to
execute a final decree prepared in the meantime that the
modifications made by the appellate court in the appeal from
the preliminary decree are ,given effect to during the
execution proceedings. As we have said already, the
language of the final decree in form 6 is such that it
requires no modification even though there might be
modifications in the preliminary decree by the appellate
court, and all that is required is that the executing court
should in executing the final decree prepared in the
meantime give effect to the decree in appeal from the
preliminary decree, if it is a case of variation one way or
the other. The only exception to this principle is a case
where the appellate court gives specific direction for the
preparation of a fresh preliminary decree or gives further
time after the decree in appeal from the preliminary decree.
In such a case a fresh preliminary decree may have to be
drawn up to be followed by a fresh final decree. The
present however is not a case of this kind as already
indicated, and in the circumstances it was the duty of the
executing court, when variations made by the appellate court
in appeal from the preliminary decree were brought to its
notice, to take them into account in executing the final
decree, which had been prepared in the meantime. The final
decree in terms required no change in view of form 6 already
referred to and all that the executing court had to do was
to take note of the fact that the supporting preliminary
decree had been varied and L R. [1947] All. 40.
113
to execute the final decree in accordance therewith. In
this view of the matter we are of opinion that the view
taken in Periakaruppan Chettiar’s case(1) is correct subject
to what we have said with respect to the case where there
are specific directions by the appellate court in an appeal
from the preliminary decree for preparation of a fresh
preliminary decree or for fixing a fresh time for payment.
We do not think it necessary to refer in detail to other
cases cited before us. It is enough to say that the Andhra
Pradesh High Court has followed the Madras High Court : [see
Gandavaraup Venkata Subba Rao v. Vavilal Kesavayva(2)] while
the Calcutta High Court in Abdul jalil v. Amar Chand Paul (
3 ) and the Lahore High Court in Mewa Singh v. Tara Singh(4)
seem to take the view that a fresh final decree is necessary
within three years of the appellate decree in an appeal from
the preliminary decree in a case of modification.
In the view we have taken the appeal fails and is hereby
dismissed with costs.
Y.P Appeal dismissed.
(1) I.L.R. [1947] Mad. 132.
(3) [1913] XVIII Cal.L.J.223
(2) A.I.R. [1955] A.P. 254.
(4) A.I.R. [1933] Lah. 859.
114