Created byFuzzy Cloud

Supreme Court of India

M/S. BRAKEWEL AUTOMOTIVE COMPONENTS (INDIA) PVT. LTD.versusP. R. SELVAM ALAGAPPAN

Citation
2017 INSC 248
Decided
21 March 2017
Disposal
Appeal(s) allowed

Holding

Section 47 CPC allows an executing court to entertain objections to a decree’s executability only when the decree is a nullity or suffers jurisdictional infirmity, not merely because it is erroneous in fact or law.

Summary

M/S. Brakewel Automotive Components (India) Pvt. Ltd. obtained a decree for recovery of a sum of money from P.R. Selvam Alagappan. The respondent filed an application under Section 47 of the Code of Civil Procedure, 1908, challenging the executability of the decree on grounds of alleged mis‑joinder of parties, fraud and collusion. The executing court allowed the application, a decision affirmed by the Madras High Court. The Supreme Court held that Section 47 permits only a narrow scrutiny of a decree’s executability on the basis of jurisdictional infirmity or voidness, not on errors of fact or law. Since the decree was not a nullity and did not suffer any jurisdictional defect, the respondent’s objections were dismissed and the decree was held executable. Consequently, the appeals were allowed and the execution proceedings were directed to continue.

Issues considered

  • What is the scope of Section 47 of the CPC, 1908 with respect to objections to the executability of a decree?
  • Can a decree that is erroneous in fact or law, but not void, be challenged under Section 47?
  • Does the respondent’s claim of mis‑joinder of parties and alleged fraud render the decree non‑est or inexecutable?

Legislation cited

Subjects

Section 47 CPCexecution of decreejurisdictional infirmitydecree nullitycivil procedureenforceability of decreeerroneous decree

Judgment

                         [2017] 3 S.C.R. 681


  M/S. BRAKEWEL AUTOMOTIVE COMPONENTS (INDIA)                             A
                    PVT. LTD.
                                  v.
                   P. R. SELVAM ALAGAPPAN
               (Civil Appeal Nos. 4313- 4314of2017)                       B
                          MARCH21,2017
          [ARUN MISHRA AND AMITAVA ROY, JJ.]
      Code of Civil Procedure, 1908:
       s.47 - Scope and ambit of scrutiny under - Suit for recovery       c
by appellant-plaintiff - Decreed by trial court - Execution
application by appellant - s.47 application by respondent-defendant
objecting to executability of the decree - Appellant questioned the
maintainability of such application by respondent - Executing Court
held the application to be maintainable - Order affirmed by High
Court - On appeal, held: The purview of scrutiny u!s. 47 qua a            D
decree is limited to objections to its executability on the ground of
iurisdictional infirmity or voidness - Only a decree which is a nullity
can be the subject matter of objection u/s.47 and not one which is
erroneous either in !all' or on facts - Having regard to the contextual
facts and the objections raised by the respondent, no case made           E
out to entertain the application u!s. 47 - Both the Executing Court
and the High Court, not only erred in construing the scope and
ambit of scrutiny u/s. 47 CPC, but also overlooked the fact that the
decree did not suffer either from any jurisdictional error or was
otherwise invalid in law.
       s.47 - Executing Court - Power of - Discussed.                     F
    ··Allowing the appeals, the Court
      HELD: 1.1 An Executing Court can neither travel behind
the decree nor sit in appeal· over the same or pass any order
jeopardizing the rights of the parties thereunder. It is only.in the
                                                                          G
limited cases where the decree is by a court lacking inherent
jnrisdiction or is a nullity that the same is rendered 11011 est and is
thus inexecutable. An erroneous decree cannot be equaled with
one which is a nul!ity. In the present case, the objections raised
by the appellant even if considered to exist did not infest the
decree with any jurisdictional infirmity or reduce it to a nullity.       H
                                   681
682           SUPREME COURT REPORTS                      [2017] 3 S.C.R.


A     There are no intervening developments as well to render the
      decree inexecutable. [Para 19] [688-G-HJ
            1.2 Section 47 of CPC mandates determination by an
      executing court, of questions arising between the parties or their
      representatives relating to the execution, discharge or
B     satisfaction of the decree and does not contemplate any
      adjudication beyond the same. A decree of court of law being
      sacrosanct in nature, the execution thereof ought not to be
      thwarted on mere asking and on untenable and purported grounds
      having no bearing on the validity or the executability thereof.
      (Para 20] (689-A-BJ                        ·
c
             1.3 The purview of scruti.ny under Section 47 qua a decree
      is limited to obje.ctions to its executability on the ground of
      jurisdictional infirmity or voidness. Only a decree which is a
      nullity can be the subject matter of objection under Section 47
      and not one which is erroneous either in law or on facts. [Para
D     21) (689-C]
            Vasudev Dha11jibhai Modi vs. Rajabhai Abdul Rehman
            and Ors. [1971) 1 SCR 66 - relied on.
             1.4 The powers of the Court under Section 47 are quite
      different and much narrower than those in appeal/revision or
E
      review. The exercise of power thereunder is microscopic and
      lies in a very nurow inspection hole and an executing court can
      allow objection to the executabilty of the decree if it is found that
      the same is void ab initio and is a nullity, apart from the ground
      that it is not. capable of .execution under the law, either because .
 F    the same was passed in ignorance of such provision of law or the
      law was promulgated making a decree inexecutable after its
      passing. None of the above eventualities as recognised in law
      for rendering a decree inexecutable, exists iu the case in hand.
      [~ara 22] [690-B-C]

 G          Dhurandhar Prasad Singh vs. Jai Prakash University
            and Ors. AIR 2001 SC 2552 : [2001) 3 SCR 1129 -
            relied on.
                        Case Law Reference
      (1971) 1 SCR 66          relied on                    Para 21
H     [2001] 3 SCR 1129        relied on                    Para 22
    MIS. BRAKEWEL AUTOMOTIVE COM~ONENTS (INDIA)                                 683
              PVT. LTD. v. P. R. SELVAM ALAGAPPAN

       CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 4313-                    A
 4314 of2017.
       From the Judgment and Order dated 03.06.2016 of the High Court
 of Judicature at Madras in C.R.P. (NPD) No. 1499 of20I6 and CMP
 No. 8225 of2016.
      . J. S. Bakshi, Saurabh Ajay Gupta, Advs. for the Appellant.              B

        M. P. Parthiban, T. R. B. Sivakumar, Advs. for the Respondent.
      The Judgment of the Court was delivered by
        AMITAVA ROY, J. I. Leave granted.
        2. The subject matterof impeachment is the order dated 3.6.2016
                                                                                c
 rendered in CRP (NPD) 1499 of2016 and CMP No. 8225 of2016 by
 the High Court of Judicature at Madras, thereby rejecting the prayer of
 the appellant/plaintiff/decree-holder (for short, hereinafter to be referred         l_ .
                                                                                       '
 to as "the appellant") to eschew evidence of the respondent/defendant/
 judgment-debtor (for short, hereinafter to be referred to as "the              D
 respondent") in a proceeding under Section 47 of the Code of Civil
 Procedure, 1908 (as amended) (hereinafter to be referred to as "CPC/
 Code"), as well as to dismiss such application as not maintainable. By
 the order impugned, the High Court has affirmed the determination
 made to the same effect by the Executing Court.
                                                                                 E
       3. We have he·ard Mr. J .S. Bakshi, learned counsel for the
 appellant and Mr. M.P. Parthiban, learned counsel for the respondent.
         4. The genesis of the present lis is traceable to Civil Suit (OS)
  No. 1690 of 20 I 0 instituted before the High Court of Delhi at New
  Delhi by the appellant against the respondent arrayed as the proprietor F
  of M/s. Kargaappa Auto Products and M/s Paans Auto Products for
  recovery of Rs. 20,94,953/- arising from business transactions between
  the parties. While the appellant described itself to be a company
  registered under the Companies Act, 1956 and engaged in the business
  of manufacture and sale of auto components/parts, the respondent
  was introduced as the proprietor of the afore-named proprietorship firms.
                                                                             G
. According to the appellant, the respondent approached it in the month
  of November, 2002 for a business deal and on the basis of the bargain
  entered into, it supplied auto components and parts to the respondent, . 1
  as per the specifications mentioned and raised bills in connection
  therewith.                                                                 H
684            SUPREME COURT REPORTS                           [2017) 3 S.C.R.


A             5. As per the books of account maintained in the regular course
      of business, at the relevant time i.e. 15.10.2007, Rs. 8,01,7081- was due
      and outstanding against the respondent in the accounts of Mis. Kargaappa
      Auto Products and Rs. 4,93,9521- as on 6.6.2008, in the account of Ml
      s. Paans Auto Products, thus totalling Rs. 12,95,6601-. As this amount
      was not paid inspite of repeated demands, and the ultimate notice dated
B
      28.12.2009, addressed by the appellant to the respondent, the suit was
      filed for realisation of the aforementioned amount together with interest
      @ 24% p.a. for an aggregate sum of Rs. 20, 94,9531-.
             6. Though on the receipt of the summons in the suit, the respondent
      arranged for his representation, he eventually failed to submit his written
c     statement and accordingly, his defence was struck off vi de order dated
      20.10,2011, in view of his persistent default to that effect. Subsequent
      thereto, the appellant filed the affidavit of one of its directors in
      endorsement of its pleaded case, who proved, amongst others, the
      copies of various invoices authenticating the supply of goods to the
D     respondent and also the statement of accounts pertaining thereto. This
      witness too was not cross-examined on behalf of the respondent, though
      _opportunity was granted and eventually the Trial Court, on a consideration
      of materials on record, decreed the suit for Rs. 18,95,077I- by allowing
      the interest@ 18% p.a. in lieu of24%, as claimed.
E            7. As the records would reveal, a defective appeal was filed on
      behalf of the respondent thereafter only to be withdrawn in due course.
      The appellant launched the execution and the application in connection
      thereto was registered as E.P. No. 11787 of 2014 to execute the
      decree as aforementioned. It was thereafter that an application for
      review was filed by the respondent before the High Court seeking to
 F    recall the judgment and order dated 16.12.2011. It was pleaded by the
      respondent that the suit was not maintainable on account of non-joinderl
      mis-joinder of proper and necessary parties. Though he had admitted
      that he was the proprietor of Paans Auto products, he asserted that he
      was not so of Mis. Kargaappa Auto Products and that instead his wife
G     Mrs. A. Kamalla being so was the proper and necessary party and that
      in view of this-defect, the suit was liable to be dismissed. He also pointed
      out that the name of this firm is Mis. Karpaga Auto Products and not
      Mis. KargaappaAuto Products, as recited in the plaint. The respondent
      alleged fraud as well and contended that the appellant was guilty of
      suppression of material facts of rejection of its goods. Further, he also
H
  M/S. BRAKEWEL AUTOMOTIVE COMPONENTS (INDIA)                                   685
 PVT. LTD. v. P. R. SELVAM ALAGAPPAN [AMITAVA ROY, J.]

alleged collusion and connivance between his counsel and the appellant           A
for which the former deliberately abstained from taking necessary steps
to ensure his effective representation in the suit, thus resulting in the ex-
parte decree.
        8. He pleaded that on receiving the summons in the suit, necessary
 instructions were conveyed to his counsel at Delhi to appropriately contest     B
 the proceeding, but the latter refrained from either filing the written
 statement or frt>m taking necessary steps resulting in his default for
 which ultimately, the suit was decreed. According to him, though he
 was in touch with his counsel at Delhi through his counterpart at Chennai,
 he was being given the impression that there was no progress in the suit
 and that he would be duly infon11ed about any substantial developme.~t          c
 therein whenever the same would oq:ur. The respondent contended
 that it was in February/March, 2014, when he and his local counsel
 grew suspicious of the evasive replies given by his counsel at Delhi, that
 the records of the suit were consulted, which revealed that his defence
 had been struck off on 20.10.2011 and the suit had been decreed on              D
  16.12.2011. The records ofthe suit also divulged thatthough an opportunity
 to him for cross-examination of the witnesses by appellant had been
 afforded, it was not availed of due to the sheer dereliction of the
·professional duties of his counsel.
       9. -Noticeably, the respondent in his review application _disclosed E
that his said counsel however did prefer an appeal against the ex-parte
decree, which eventually was returned in view of the attendant defects. "
The appeal was however not re-filed and that in the meanwhile, a
complaini had been lodged against the counsel with the Bar Councilof
Tamil Nadu at Channai, was mentioned as well.
                                                                           F
       10. It is worthwhile to note that no interim order was passed on .
this review application, which eventually was dismissed on 15.4.2015
on account of unexplained delay of three years.                ·
        11. Meanwhile, however the respondent filed his counter-affidavit
in the execution proceedings and also followed it up with an application         G
under Section 47 ofCPC to resist the execution of the decree. Suffice
it would be to state that the demurrals in these pleadings are in suJistance
a replication of those narrated in the review application and, therefore·
are not being re-traversed.
  ,     12. In refutatioi1, the appellant did file a ~ommon countei~nffidavit
                                                                                 H



                                       ., ....
 686              SUPREME COURT REPORTS                           (2017] 3 S.C.R.


 A      asserting that the respondent had placed orders for automobile
        components, which were accordingly dispatched and as on the date of
        the institution of the suit, the payments in connection therewith were
        outstanding, a suit was filed to recover the same and eventually, it was
        decreed on 16.12.2011 for a sum ofRs. 18,95,077/- along with pendente
. B     lite and future interest @ 18% p.a. Apart from high Iighting that the
        respondent had after the receipt of the summons/notices in the suit,
        continuously abstained himself from contesting the same by filing his
        written statement or taking further initiatives and that, therefore the
        decree passed was val.id in law, the appellant maintained that the suit
        had been filed against the respondent, as he represented both the firms
 C     ·and had participated in the transactions in that capacity for which
        either the mistake in the name ofM/s. Kargaappa Auto Products instead
        of Mis Karpaga Auto Products or non-impleadment of his wife as the
        sole proprietress thereof was wholly inconsequential qua the aspect of
        executability of the decree. The allegation of suppression ofany material
        fact, as alleged was denied. The accusation of collusion between the
 D
         learned counsel for the respondent and the appellant was stoutly denied
        as well. It was pointed out that the fact of filing of appeal preferred by
        the same counsel against the decree belied the allegation of dereliction
        of duty as unfounded. Underlining the inexplicable delay and inaction of
        three years on the part of the respondent in filing the review petition, it
 E      was contended that the resistance to the executing proceedings was
        only with the objective of protracting the proceeding~to his advantage
        on flimsy and frivolous grounds.
              · 13. The respondent next filed an affidavit on the same Iin es as
        narrated in his counter and the application under Section 47 CPC and
  F     sought to supplement the same by producing documents to that effect
        by way of oral and documentary testimony of the pleaded facts. The
        appellant in its rejoinder did object to this initiative on the part of the
        respondent as impermissible, being beyond the purview of Section 47
        CPC and prayed for obliteration of such evidence. The appellant pleaded
        that after the counter-affidavit had been filed by the respondent in the
 G      execution proceedings, arguments on behalf of the decree-holder were
        heard and though the proceedings were deferred for the arguments on
        behalf of the respondent, an application by him under Section 47 CPC
        was filed, the maintainabilify whereof was questioned by the appellant
        and that it was at that belated stage that the respondent sought to introduce
 H      the documentary evidence.
  M/S. BRAKEWEL AUTOMOTIVE COMPONENTS (INDIA)            687
 PVT. LTD. v. P. R. SELVAM ALAGAPPAN [AMITAVA ROY, J.] .

        14. The Executing Court however by its order dated 8.2.2016,             A
dismissed the objection of the appellant by taking note principally of tlie
fact that the respondent was not the proprietor~ofKarpagaAuto Products
and that it was necessary to examine as tbhow he was related to the
said proprietorship firm, a question to be decided in the proceedings
under Section 47 CPC.
                                                                           B
 ,     IS. By the impugned order, the High Court has affirmed th.is
determination of the Executing Court by observing that though the issue
of maintainability of the application under Section 47 CPC had been
raised by.the appellant, it was within the right of the respondent to lead
evidence, both oral and documentary pertaining to all questions arising_ C
between the parties to the suit. It was of the view that the question of
maintainability of the application under Section 47 CPC ought to be
decided along with the objections raised with regard to the executability
of the decree.                                    ''
         16. Learned counsel for the appellant, in the above backdrop, has
argued that the impugned order is clearly unsustainable in law and on            D
fac.:ts having regard to the established contours of scrutiny under Section
47 CPC and is thus indefensible. Not only the grounds urged in the
counter-affidavit to the execution petition and the application under
Section 47 CPC do have any factual foundation and are thus non-existent,
these are liable to be rejected in Ii mini and do not warrant any verification   E
thereof. Not only are these objections frivolous on the face ofrecord,
these have been resorted to only for protracting the execution
proceedings. He urged that the impugned order has the effect of
going heh.ind and reopening the decree, which is impermissible in law.
According to him, neither the decree suffers from any jurisdictional             '
error nor is a nullity and is thus executable in law.                            F

       17. In reply, the learned counsel for the respondent has insisted
that in the teeth of incorrect name of one of the firms and non-
representation thereof by its rightful proprietor, the decree which is
composite in nature, has been rendered inexecutable. He further argued
that as the decree is an yield of fraud and collusion between the learned        G
counsel for the respondent and the appellant, it is non est in law and thus
the impugned order which only permits an inquiry in these aspects, is
well within the purview ofSection 47 CPC and therefor no interference
therewith is called for.
                                                                                 H
                SUPREME COURT REPORTS                           [2017] 3 S.C.R.


A              18. The materials on record and the arguments based thereon
       have received our due consideration. To recapitulate, the plaint discloses
       that the respondent had represented before the appellant to be authorised
       to act on behalf of both the firms and in that capacity had participated in
       the transactions that_followed. In that perspective, even assuming that
       the name of one of the firms was wrongly mentioned and that in fact,
B
       it is the wife of the respondent, who is the proprietress thereof, with
       whom there is no conflict ofinterest, these in our comprehension per se,
       would not render the decree void or inexecutable. Such errors, even if
       exist, would not infest the decree with any jurisdictional infirmity or
       reduce it to a nullity. Noticeably, there is no dispute with regard to the
c      identity of the firms involved and their representation by the respondent
       in the suit transactions. The allegation of fraud and collusion between
       the learned counsel for the respondent and the appellant is visibly self-
       serving, omnibus, speculative and unauthentic and cannot therefore,
       after so many years: ipso facto render the decree invalid on account
       thereof. Visibly, the respondent had been the center figure in all the
·D
       transactions between the parties on behalf of the firms, as stand proved
       in the suit and the resistance to the execution of the decree is neither QI! ,
       behalf of Mis. Kargaappa Auto Products/Mis. Karpaga Auto Products
       nor its proprietress, his wife contending that the decree is neither binding
       on the firm nor on her. For all practical purposes, the said firm is still
E      being represented by the respondent in the subsisting proceedings. The
       sequence of events disclose that the suit had been instituted in the year
       20 I 0 and was decreed on 16.10.2011. The persistent default on the part
       of the respondent has been adverted to hereinabove. Though a defective
       appeal had been filed on his behalf in the year 2012, it was withdrawn
       and was not re-filed by removing the defects. The Execution Petition
F
       though lodged in the year 2014 has not seen the fruit of the decree as on
       da!e. The Review Petition filed by the respondent has also been dismissed.
        Significantly, in all the proceedings initiated by the respondent to stall
     · the execution of the decree, the same pleas have been reiterated.
             19. It is no longer res integra that an Executing Court can neither
G     travel behind the decree nor sit in appeal over the same or pass any order
      jeopardizing the rights of the parties thereunder. It is only in the limited
      cases where the decree is by a court lacking inherent jurisdiction or is a
      nullity that the same is rendered non est and is thus inexecutable. An
      erroneous decree cannot be equaled with one which is a nullity. There are
      no intervening developments as well as to render the decree inexecutable.
  MIS. BRAKEWEL AUTOMOTIVE COMPONENTS (INDIA)                                    689
 PVT. LTD. v. P. R. SELVAM ALAGAPPAN [AMITAVA ROY, J.]

       20. As it is, Section 47 of the Code mandates determination by            A
an executing court, questions arising between the parties or their
representatives relating to the execution, discharge or satisfaction of
the decree and does not contemplate any adjudication beyond the same.
A decree of court of law being sacrosanct in nature, the execution
thereof ought not to be thwarted on mere asking and on untenable
                                                                                 B
and purported grounds having no bearing on the validity or the
executability thereof.
      21. Judicial precedents to the effect that the purview of scrutiny
under Section 4 7 of the Code qua a decree is limited to objections to its
executability on the ground of jurisdictional infirmity or voidness are
plethoric. This Court, amongst others in Vasudev Dlumjib//{/i Modi vs.
                                                                                  c
Rajabhai Abdul Re/mum and others 197 l (I) SCR 66 in essence
enunciated that only a decree which is a nullity can be the subject
matter of objection under Section 47 of the Code and not one which is
erroneous either in law or on facts. The following extract from this
decision seems apt:                                                              D
        "A Court executing a decree cannot go behind the decree
        between the parties or their representatives; it must take the
        decree according to its tenor, and cannot entertain any objection
        that the decree was incorrect in law or on facts. Until it is set
        aside by an appropriate proceeding in appeal or revision, a decree        E
        even ifit be erroneous is still binding between the parties.
        When a decree which is a nullity, for instance, where it is passed
        without bringing the legal representatives on the record of a
        person who was dead at the date of the decree, or against a
        ruling prince without a certificate, is sought to be executed an          F
        objection in that behalf may be raised in a proceeding for
        execution. Again, when the decree is made by a Court which
        has no inherent jurisdiction to make it, objection as to it.s validity
        may be raised in an execution proceeding ifthe objection appears
        on the face of the record: where the objection as to the jurisdiction
        of the Court to pass the decree does not appear on the face of            G
        the record and requires examination of the questions raised and
        decided at the trial or which could have been but have not been
        raised, the executing Court will have no jurisdiction to entertain
        an objection as to the validity of the decree even on the ground
        ofabsence ofjurisdiction."                                                H
690             SUPREME COURT REPORTS                           [2017] 3 S.C.R.


A            22. Though this view has echoed time out of number in similar
      pronouncements of this Court, in Dhurandlwr Prasad Singh vs. Jai
      Prakash University and otlters, AIR 200 I SC 2552, while dwelling on
      the scope of Section 47 of the Code, it was ruled that the powers of the
      court thereunder are quite different and much narrower than those in
      appeal/revision or review. It was reiterated that the exercise of power
B
      under Section 47 of the Code is microscopic and lies in a very narrow
      inspection hole and an executing court can allow objection to the
      executabilty of the decree if it is found that the same is void ab initlo and
      is a nullity, apart from the ground that it is not capable of execution under
      the law, either because the same was passed in ignorance of such provision
c     of law or the law was promulgated making a decree inexecutable after
      its passing. None of the above eventualities as recognised in law for
      rendering a decree inexecutable, exists in the case in hand. For obvious
      reasons, we do not wish to burden this adjudication by multiplying the
      decisions favouring the same view.
D            23. Having regard to the contextual facts and the objections raised
      by the respondent, we ai'e of the unhesitant opinion that no case has
      been made out to entertain the remonstrances against the decree or the
      application under Section 47 CPC. Both the Executing Court and the
      High Court, in our comprehension, have not only erred in construing the
      scope and ambit of scrutiny under Section 47 CPC, but have also
E     overlooked the fact that the decree. does not suffer either from any
      jurisdictional error or is otherwise invalid in law. The objections to the
      execution petition as well as to the application under Section 47 CPC
      filed by the respondent do not either disclose any substantial defence to
      the decree or testify the same to be suffering from any jurisdictional
 F    infirmity or invalidity. These are therefore rejected.
             24. On a consideration of all relevant aspects in the entirety, we
      are thus disinclined to sustain the impugned orders and hereby set-
      aside the.same. The appeals are allowed. The Executing Court would
      proceed with the execution proceedings and take it to the logical end
G     with utmost expedition. No costs.


      Divya Pandey                                                   Appeals allowed.


Search Indian case law

Ask in plain English, not just keywords. 25,000 AI words free, no card.

Try "Section 47 CPC"Sign in to search

For a digitally signed copy suitable for filing, refer to the court's own website. Only the court can issue one.