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Supreme Court of India

CUSTODIAN OF BRANCHES OF BANCO NATIONAL ULTRAMARINO.versusNALINI BAI NAIQUE

Citation
1989 INSC 153
Decided
28 April 1989
Disposal
Appeal(s) allowed

Holding

A person with Meeira rights under the Portuguese Law of Inheritance is a legal representative within the meaning of the CPC, and a substitution application filed within the prescribed time prevents the suit from abating.

Summary

The Banco Nacional Ultramarino sued Vinaique Naique for a loan, but the defendant died during the trial. The bank applied under Order XXII Rule 4 of the CPC to substitute the widow, Nalini Bai Naique, as a legal representative within four days of learning of the death, and later sought to add the deceased’s children as parties. The respondent contended that the widow, possessing only “Meeira” rights under the Portuguese Law of Inheritance, was not a legal representative and that the suit had abated because not all heirs were impleaded in time. The trial court held the substitution timely and that the widow, having half‑share under Meeira rights, represented the entire estate, allowing the suit to continue. The Judicial Commissioner reversed, but the Supreme Court restored the trial court’s decision, holding that the CPC’s definition of “legal representative” is inclusive and covers persons with Meeira rights, and that the suit does not abate merely because other heirs are added later.

Issues considered

  • Whether a widow holding Meeira rights under Portuguese law qualifies as a 'legal representative' under the Code of Civil Procedure for substitution in a suit.
  • Whether the application for substitution filed within four days of acquiring knowledge of the deceased’s death is timely under Order XXII Rule 4 of the CPC.
  • Whether the suit abates when not all heirs of the deceased are impleaded within the statutory period.
  • Whether the subsequent addition of other heirs affects the validity of the proceedings.

Legislation cited

Subjects

legal representativesubstitutionabatePortuguese law of inheritanceMeeira rightsCPC Order XXIIsuccessionestate representationwidow

Judgment

          CUSTODIAN OF BRANCHES OF BANCO NATIONAL
 A
                        ULTRAMARINO.
                                                                                 ).._
                              v.
                      NALINI BAI NAIQUE

                                 APRIL 28, 1989
B
                    [K.N. SINGH AND K.N. SAIKIA, JJ.]

           Portugees Law of Inheritance in GoaJlolder of 'Meeira' rights    3 1--
      Whether legal heir-Whether competent to be substituted as a party•
      under the Code of Civil Procedure.

~           Code of Civil Procedure, Order XXII, Rule 4: Holder of 'Meeira'
                                                                                          -
      rights under the Portugees Law of Inheritance-Whether a 'legal
      representative'-Whether represents the entire estate-Other heirs not
      brought on record within time-Suit whether abates.                         v
I,)         'Legal representative'-Connotation of-Code of Civil Proce-
      dure. 1908, 0. 22. R. 4.

             The appellant bank instituted a suit against respondent's husband
      for recovery of a large amount advanced as loan. The defendant con-
      tested the suit, issues were framed and evidence was being recorded.
E     He, however, died before the next hearing on 4th November, 1970
      when the court was informed by his pleader orally about .his demise.
      The appellant ou inquiry learnt on 7th November that the defendant
      had died on 4th August. The 8th November being Sunday, an applica-
      tion under Order XXJI Rule 4 of CPC was filed on 9th November for                   •
      bringing on record the widow as his legal representative. Another appli-
F     cation for condoning delay in making the application was also made.
      The appellant later made another application requesting to treat the         .'(
      latter application.as an application under Order XXII-Rule 9 for setting
      aside the abatement of the suit. These applications were contested by
      the respondent on the ground that the news regarding the death of her
      husband had been published in the local newspapers and the plaintiffs
G     had knowledge of his death, and that the suit had abated as no applica-
      tion for setting aside abatement had been filed within time.
                                                                                 1,.,,-
           In the meanwhile, the appellant made another application for
      adding the names of four sons and two daughters of the deceased
      defendant on the ground that earlier it had no knowledge about that.
H     On behalf of the respondent, it was asserted that the application for
                                        810


                                                                                          ..
                     BANCO NATIONAL ULTRAMARINO v. N.B. NAIQUE                     811

            substitution was not maintainable as it was tiled beyond time, and in the
          · alternative she was not the legal heir of the deceased defendant but only     A
            his "Meeira" and as other legal heirs of the deceased defendant were
            not brought on record within time the application was not maintain-
            able.

    -i           The trial court found that the application under Order XXII Rule         B
           ' was not barred by time since it had been tiled within four days of
            coming to know of defendant's death. It further held that since the
            widow, one of the legal representatives of the deceased-defendant, was
            brought on record within time the sons and daughters could also be
            impleaded as defendants along with her. It, therefore, set aside the
            abatement of the suit.
    ,.;                                                                                   c
                  The Judicial Comminioner, however, took the view 'that the
           widow was not a legal representative of the deceased as under the
           Portugees Law she had acquired Meeira rights and her status was not
           .that of 'Cabeca De Casal' (Head of the family and administrator) of the
           pther heirs of the deceased. Since all the heirs of the deceased defendant     D
           had not been brought on record alongwith the widow within time, the
           suit had abated as she alone could not represent the estate of the
    ,      deceased defendant.
    ~·

                 Allowing the appeals,
                                                                                          E
.                HELD: 1.1 The trial court committed no error in law in allowing
           the substitution application. [81SEF]

                   1.2 A 'legal representative' as defined in Civil Procedure Code
           means a person who in law represents the estate of a deceased person,
           and includes any person who intermeddles with the estate of the de-            F
    _J·     ceased and where a party sues or is sued in representative character the
           person on whom the estate devolves on the death of the party so suing or
           sued. The definition i~ inclusive in character and its scope is wide, it is
           not confined to legal heirs only instead ii stipulates a person who may or
           may not be heir, competent to inherit the prop•rty of the deceased but
           he should represent the estate of the deceased person. It includes heirs       G
           as well as persons who represent the estate even without title either as
           executors or administrators in possession of the estate of the deceased.
           All such persons would be covered by the expression 'legal representa-
           .tive'. If there are any heirs, those in possession bona fide, without there
           being any fraud or collusion, are also entitled to represent the estate of
           the deceased. The Civil Procedure Code was applicable to the proceed-          H
           ings in. the instant case. [814G-81SA]
    812                   SUPREME COURT REPORTS            [1989] 2 S.C.R.
                                                                               ::....
          1.3 The respondent had acquired •Meeira' rights under the
A
    Portugees Law of Inheritance, which was applicable to Goa at the
    relevant time, according le which she had acquired half share in the
    estate left by her husband and the remaining half share was inherited
    by sons and daughters of the deceased. As she was brought on record
    within time, she represented the estate of the deceased defendant and
B   the suit could proceed on merits. The impleadment of other legal                ~
    representatives at a subsequent stage could not affect validity of th~
    proceedings. [SISB, 816C]

        Daya Ram & Ors. v. Shyam Sundari, [1965] 1SCR231 and N.K.                             --
    Mohd. Sulaiman v. N. C. Mohd. Ismail, [1966] 1 S.C.R. 937, referred
    to.
c
         Mannem Venkataramaih v. M. Munnemma & Ors., AIR 1963                    Y
    A.P.406,approved.

          CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1154-
D   1155 (N) of 1974.

          From the Judgment and Order dated 30.6.1972 of the Court of
    Judicial Commissioner of Goa, Daman and Diu in Civil Revision
    Application Nos. 13 and 14 of 1972.                                          +
E         Anil Dev Singh and Miss A. Subhashini for the Appellant.

          S.K. Mehta and Dhruv Mehta for the Respondent.                                      •

          The Judgment of the Court was delivered by
                                                                                        .'(
F         SINGH, J. This appeal is directc;d against the judgment and
    order of the Judicial Commissioner, Goa dated 30.6.1972 setting aside
    the order of the Civil Judge, Senior Division, Panaji and declaring that
    the suit instituted by the appellant had abated.
                                                                               ·•·
         The appellant Bank instituted a suit before the Civil Judge for
G   recovery of an amount of Rs. 63,315 against Vinaique Naique,                   '.,,--
    advanced to him as loan by i't. Vinaique Naique, the defendant
    contested the suit, issues were framed and evidence was being
    recorded. On 26.2.1970 statement of PW-1 was recorded and the case
    was adjourned to another date but on that date also the case was
    adjourned to 23.7.1970. The suit was again adjourned on 23.7.1970 on
H   the ground that the defendant Vinaique Naique was indisposed and
         BANCO NATIONAL ULTRAMARINO v. N.B. NAIQUE [SINGH, J.]              813
    .;
          w~s hospitalised. Thereafter, the suit was taken up for heanng on
                                                                                   A
          4.11.1970. On that date the defendant's pleader informed the Court
          orally that· the defendant had died at Margaon but did not give any
          further details. The Custodian of the appellant Bank Panaji deputed
          his clerk to. Margaon to collect necessary information and to obtain
          death certificate from the Civil Registration Office if the defendant
  ~       was found to be dead. The clerk visited Margaon on 5th and 6th B
        )!'lovember, 1970 and on enquiry he came to know that the defendant
          had died on. 4. 8. 1970, he obtained death certificate from the Civil
          Registration Office on 6.11.1970 and handed over the same to the
•        Custodian of the Bank on 7th November, 1970. Since 8th November,
          1970 was Sunday, the Custodian could not file the same in the court.
         The appellant made application under Order XXII Rule 4 of CPC on
                                                                                   c
   )( 9th November, 1970 for bringing on record Smt. Nalini Bai Naique as
         the legal representative of the deceased original defendant. He made
         another application for condoning delay in making the application
         duly supported by affidavit. The appellant made another application
         requesting the court to treat his earlier application made for condona-
         tion of delay as a11 application under Or\ler 22 Rule 9 for setting aside D
         the abatement of the suit. Smt. Nalini Bai Naique late defendant's
         widow contested the applications on the ground that the news regard-
         ing the death of Vinaique Naique had been published in the local
 4-      newspapers and the plaintiff had knowledge bf his death and further
         the suit had abated on the expiry period of 30/60 days of the death of
         original defendant· as no application for setting aside abatement had E
         been filed within time. Meanwhile the appellant made another appli-
         cation for adding the names of six heirs four sons, one major son and
         three minor sons and two minor daughters of the deceased defendant
         Vinaique Naique on the ground that earlier the appellant had no
  -.;..  knowledge about the sons and daughters of the deceased defendant.
         On behalf of Mrs. Nalini Bai it was vehemently asserted before the F
   ..;# trial court that the application for substitution was not maintainable
         as it was filed beyond time, and in the alternative she was not the legal
         heir of the deceased defendant but she was only his 'Meeira' and as
         other legal heirs of the deceased defendant were not brought on record
         within time the application for bringing the sons and daughters on
  ~      record was liable to be rejected. The trial Judge on an elaborate ,con- G
         sideration of the rival contentions held that even though the news
         relating to the death of original defendant Vinaique Naique had been
         reported in local newspapers but in view of the affidavit of Custodian
         and other material on record the appellant Bank came to know of the
         death of the defendant only on 4.11.1970 from the deceased defen-
         dant's lawyer in the court and within four days thereof application for H
    814                   SUPREME COURT REPORTS             [1989] 2 S.C.R.
                                                                                )....
    bringing the legal representative of the deceased defendant was made,
A
    therefore, the application made under Order XXII Rule 4 was not
    barred by time. The learned Judge further held that since Smt. Nalini
    Bai Naique one of· the legal representative of the deceased defendant
    was brought on record within time, the sons and daughters could also
    be impleaded as defendants along with her. On these findings .the
B   learned Judge by his order dated 16.11.1971 set aside the abatement of          ~
    the suit and directed for substituting the name of the widow Smt{
    N alini Bai N aique along with the name of four sons and two daughters
    as defendants to the suit in place of deceased defendant Vinaique
    Naique. Mrs. Nalini Bai filed a revision application under Section 115
    of Code of Civil Procedure before the Judicial Commissioner of Goa at
    Panaji against the aforesaid order of the trial Judge. The Judicial
c   Commissioner by his order dated 30.6.1972 set aside the order of the
    trial Judge and declared the suit to have abated. Aggrieved the plain-
    tiff Bank has preferred this appeal after obtaining special leave.

          The learned Judicial Commissioner interfered with the order of
D   the trial Judge on the sole ground that Mrs. Nalini Bai whose name
    was proposed to be brought on record was not legal representative of
    the deceased Vinaique Naique as under the Portugees Law she being
    the widow had acquired Meeira rights and her status was not that of
    "Cabeca De Casal" (Head of the family and administrator) of the
    other heirs of deceased Vinaique Naique. Since all the heirs of the
E   deceased defendant had not been brought on record along with Mrs.
    Nalini Bai within time the suit abated as Mrs. Nalini Bai alone could
    not represent the estate of the deceased defendant. The learned Judi-
    cial Commissioner did not interfere with other findings recorded by
    the trial Judge, instead he set aside the order of the trial Judge on the
    sole ground as aforesaid, and declared the suit to have abated.                     J(
F
         After hearing learned counsel for the parties, we arc of opinion
   that the learned Judicial Commissioner committed serious error of law
   in setting aside the order of the trial Judge. "Legal representative" as
   defined in Civil Procedure Code which was admittedly applicable to
   the proceedings in the suit, means a person who in law represents the
G estate of a deceased person, and includes any person who intermeddles            'y
   with the estate of the deceased and where a party sues or is sued in a
   representative character the person on whom the estate devolves on
   the death of the party so suing or sued. The definition is inclusive in
   character and its scope is wide, it is not confined to legal heirs only
   instead it stipulates a person who may or may not be heir, competent
.H to inherit the property of the deceased but he should represent the
     BANCO NATIONAL ULTRAMARJNO v. N.B. NAJQUE [SINGH, J.]              815
,)
    estate of the deceased person. It includes heirs as well as persons who A
    represent the estate even without title either as executors or
    administrators in possession of the estate of the deceased. All such
    persons would be covered by the expression "legal representative". If
    there are many heirs, those in possession bon{l fide, without there
    being any fraud or collusion, are also entitled to represent the estate of
    the deceased. In the instant case it is not disputed that under the B
  ~.Portugees Law of Inheritance which was applicable to Goa at the
    relevant time Mrs. Nalini Bai had acquired "Meeira rights" according
    to which she had acquired half share in the estate left by the deceased
    Vinaique Naique and the remaining half share was inherited by sons
    and daughters of the deceased who were subsequently brought on
    record. On the admitted facts Mrs. Nalini Bai therefore represented
    the estate of the deceased Vinaique Naique. Once the name of Mrs. C
( N alini Bai was brought on m;ord within time and the application for
    setting aside abatement was at\owed by the trial Judge, the suit could
    proceed on merits and the mere fact that the remaining legal
    representatives were brought on record at a subsequent stage could
    not render the suit defective. The Custodian of the appellant Bank had D
    no knowledge that there were other legal representatives of deceased
    defendant along with Mrs. Nalini Bai. He had filed affidavit that on
    making diligent and bona fide inquiry, he had '<:ome to know that
    Nalini Bai was the sole legal representative but l~ter on ·he acquired
    knowledge that the deceased had left four sons and two daughters as
    legal representatives, along with Mrs. Nalini Bai, therefore, he made
    another application for bringing them on record. The trial Judge ac-
    cepted the testimony of the Custodian, and placing reliance on the
    decision of Andhra Pradesh High Court in Mannem Venkataramaih v.
    M. Munnemma & Ors., AIR 1963 A.P. 406 he allowed the substitution
    application. The trial court committed no error in law, instead he
    applied correct principles of law.                                         F
           In Daya Ram & Ors. v. Shyam Sundari, [1965] f SCR 231 this
     Court recognised the principle of representation of the estate by
     some heirs, where the defendant died during the pendency of the suit
     to enforce claim against him and all the heirs are not brought on record
     within time. This Court held that if after bona fide inquiry, some, but G
     not all the heirs, of a deceased defendant, are brought on record the
     heirs so brought on record represent the entire estate of the deceased
     and the decision of the Court in the absence of fraud or collusion binds
     even those who are not brought on record as well as those who are
     imp leaded as legal representatives of the deceased defendant. In N. K.
     Mohd. Sulaiman v. N.C. Mohd. Ismail, [1966] 1 SCR 937 this Court H
    816                   SUPREME COURT REPORTS           [1989] 2 S.C.R.

A   rejected the contention that in a suit to enforce a mortgage instituted
    after the death of a Muslim, if all the heirs of the deceased were not
    impleaded fo the suit and a decree was obtained, and in execution the
    property was sold, the auction purchaser could have title only to the
    extent of the interest of the heirs who were impleaded, and he could
    have no title to the interest of those heirs who had not been imp!caded
B   to the suit. The Court held, that those who were impleaded as party to    )-
    the suit in place of the deceased defendant represented the entire-(
    estate as they had share in the property and since they had been
    brought on record the decree was binding on the entire estate.

        In the instant case Mrs. Nalini Bai had admittedly half share in
C the property left by the deceased defendant and as she was brought on
  record within time, she represented the estate of the deceased
  defendant and the suit could proceed on merit. In this view the
  impleadment of other legal representatives at a subsequent stage could
  not affect validity of the proceedings. In the result we allow the appeal
  and set aside the judgment and order of the Judicial Commissioner
D dated 30.6.1972, and restore the order of the trial Judge. Since trial of
  the suit has been delayed, we direct the trial court to make every effort
  to decide the suit expeditiously. The appellant is entitled to its costs
  throughout.

    P.S.S.                                                Appeal allowed.
E




                                                                              \,.


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