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Supreme Court of India

SH. JANGLI AND ORS.versusSMT. BHAGWATI AND ORS.

Citation
1995 INSC 563
Decided
12 September 1995
Disposal
Dismissed

Holding

The appellant cannot obtain a declaration of title, as his tenancy rights merged into ownership under the pre‑emption decree, making him a derivative title‑holder bound by the money decree.

Summary

The appellant, a tenant of Smt. Ajudhia, sought a declaration of title over a parcel of agricultural land that had been sold in execution of a money decree against her and later transferred to an auction‑purchaser, respondent No. 11. The appellant had earlier obtained a decree under the Punjab Pre‑emption Act, 1913, asserting a preferential right as a tenant, and had unsuccessfully challenged the execution sale under Section 47 of the Code of Civil Procedure. After the sale was confirmed, the appellant filed a suit for declaration of title and injunction, which was dismissed by the trial court, the appellate court and the High Court. The Supreme Court considered whether the appellant could claim title either because of, or independently of, the pre‑emption decree. It held that the appellant’s tenancy rights merged into ownership upon the pre‑emption decree, making him a derivative title‑holder whose title derived from the judgment‑debtor and thus bound by the money decree; consequently, he could not obtain a declaration of title against the auction‑purchaser. The appeal was dismissed without costs.

Issues considered

  • Whether the appellant is entitled to a declaration of title over the land against the auction‑purchaser respondent No. 11.
  • Whether the appellant can set aside the money decree or the execution sale, either because of or independently of the pre‑emption decree.

Legislation cited

Subjects

pre-emptiondeclaration of titleexecution of decreetenancy rightsmerger of rightsderivative titleCPC Section 47land salespecific performance

Judgment

A                           SH. JANGLI AND ORS.
                                     v.
                          SMT. BHAGWATI AND ORS.

                              SEPTEMBER 12, 1995

B                  [K. RAMASWAMY, B.P. JEEVAN REDDY
                          AND B.L. HANSARIA, JJ.]

            Punjab Security of Land Tenures Act, 1953/Punjab Pre-emption Act,
    1913:
c
        Agricultural land-Sold in execution of a decree-Another sale deed in
  respect of same land registered in execution of decree in a suit for specific
  pe1fonnance-Appellant-Tenant obtained decree in a suit for pre-emp-
  tion-Appellant's suit for declaration of title dismissed-Held, appellant
  neither because of nor independently of pre-emption decree can have any
D declaration of title.

          Respondent No. 9 was the owner of the land in dispute. She suffered
    a money decree in suit No. 377/66 filed by respondents No. 1 to 3. The land
    was sold to respondent No. 11 in execution of the decree. The sale was
E   confirmed on March 21, 1978. Meanwhile 'X' entered into an agreement of
    sale of the said land with respondent No. 9 and he filed a suit for specific
    performance, which was decreed on October 18, 1968 and in execution of
    the decree 'X' got the sale deed registered in his favour.

           The appellant filed a suit for pre-emption under the punjab Pre-
p   emption Act, 1913 against respondent No. 9 and 'X' claiming preferential
    right as a tenant. The said suit was decreed on 26.5.1970. During the
    execution proceedings of Suit No. 377/66 the appellant filed objections
    under s.47 of the Code of Civil Procedure, 1908 seeking to set aside the
    sale, which was dismissed. Thereafter, the appellant filed suit No. 77176 for
G   declaration of his title and for permanent injunction. The trial Court
    dismissed the suit. The appeals were also dismissed by the first appellate
    court and the High Court. Aggrieved, the appellant filed the present
    appeal.

            On the question whether the appellant was entitled to a declaration
H of his title to the -properties against respondent No. 11 and whether he
                                        578
                               JAN"GLJ '. BHAGWATI                         579

...   could challenge the money decree because of, or independently of pre-emp- A
      tion decree,

             Dismissing the appeal, this Court

             HELD : The appellant can neither because of nor independently of
      pre-emption decree have any declaration of title. Though initially he had B
      his right as a tenant, his tenancy rights stood merged in his title after the
      pre-emption decree and he became the owner. He derived his title from
      respondent No. 9, who was a judgment-debtor in money decree. He sought
      to set aside the decree by filing objections under s.47 of the Code Civil
      Procedure, 1908 and the same was dismissed. Since the property was C
      subject to attachment pending suit, the decree-holder in Suit No. 377/66
      became entitled to proceed against the property which was rightly sold in
      execution. Therein, the 11th respondent had become the auction-purchaser
      and the sale was confirmed in his favour. Thus he acquired the title to the
      property through the decree-holder. The title of respondent No. 9 thus
      stood transferred to the 11th respondent through court decree. The appel- D
      lant being a derivative title-holder is bound by the decree as judgment-
      debtor. [580-H, G, 581-A-C]

             Vennarakkal Kallalathil Sreedharan v. Chandramaath Balakrishnan &
      Anr., JT (1990) 1 SC 390, cited.
                                                                                 E
             CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2110 of
      1979

           From the Judgment and Order dated 11.4.79 of the Punjab &
      Haryana High Court in R.S.A. No. 532 of 1979.                              F
           S.N. Mehta, Mahendra Singh, Ajit Kr. Pandey and Ashok Tiwari for
      the Appellants.

             Ranbir Yadav for the Respondent No. 11.
                                                                                 G
             Manoj Swarup, Adv. (NP) for the Respondent.

             The following Order of the Court was delivered :

             This appeal by special leave arises from the judgment and decree
      dated April 11, 1979 of the High Court of Punjab & Haryana passed in H
    580                   SUPREME COURT REPORTS [1995) SUPP. 3 S.C.R.

A   RS.A. No. 532/79, dismissing the second appeal in limine. The controversy
    relates to land, measuring 48 kanals 7 marlas situated in Khewat Nos. 31
    and 32 in Faridpur Village. The land originally belonging to Smt. Ajudhia,
    the 9th respondent. The appellant claimed to be a tenant under her. She
    admittedly suffered money decree in Suit No. 377/66 filed by respondent
    Nos.l to 3 against her. Pending suit, the plaintiff, got an order of attach-
B   ment before judgment under Order 38 Rule 5, CPC by which the lands
    were encumbered for the realisation of the decree, if ultimately passed.

          The suit was decreed on March 20, 1968. In execution of the decree,
    the said properties were brought to sale in which Kuldip Singh, the 11th
C   respondent became the auction-purchaser on February 15, 1976 for a sum
    of Rs. 26,500. The sale was confirmed on March 21, 1978.

           In the meanwhile, one Prabhu Dayal entered .into an agreement of
    sale of the said land with Smt. Ajudhia on January 30, 1966 and he laid the
    suit for specific performance and the suit was decreed on October, 18, 1968
D   and in execution thereof he had a sale deed in his favour which was
    registered on October 18, 1968. The appellant filed a suit against Prabhu
    Dayal and Smt. Ajudhia for pre-emption under the Punjab pre-emption
    Act, 1918 claiming preferential right as a tenant and had a decree on May
    26, 1970.
E         During the execution proceedings of the recovery of the money
    decree in suit No. 377/66, the appellant filed objections under Section 47
    CPC seeking to set aside the sale, which was dismissed and became final.
    Thereafter, the appellant filed Suit No. 77/1976 for declaration of his title
    and for permanent injunction. The trial Court dismissed the suit and on
F   appeal it was confirmed. The second appeal was also dismissed in limine
    by the High Court under the order referred to hereinbefore.

           The only question is whether the appellant is entitled to a declaration
    of his title to the properties as against Kuldip Singh, the 11th respondent.
G   It is seen that the appellant though initially had his right as a tenant, by
    virtue of his purchase under the pre-emption decree, his tenancy rights
    stood merged ·into his title as an owner deriving right, title and interest
    from Smt. Ajudhia, the judgment-debtor in Suit No. 377/66. The question
    is whether he can challenge the money decree, because of or independently
    of, pre-emption decree. In our considered view, in either case, he cannot
H   have any declaration of title. As stated earlier, his tenancy rights stood
                               JANGLI v. BHAGWATI                            581

      merged in his title after the pre-emption decree and he became the owner. A
      He derived his title from Smt. Ajudhia, who was a judgment-debtor in
      money decree. He sought to set aside the decree by filing objections under
...   Section 47 and the same was dismissed. Since this property was subject of
      attachment pending suit, the decree-holders in Suit No. 377/66 became
      entitled to proceed against the property which was rightly sold in execution.
                                                                                    B
      Therein, the 11th respondent had become the auction-purchaser and the
      sale was confirmed in his favour. Thus he acquired the title to the property
      through the decree-holder. The title of Smt. Ajudhia thus stood transferred
      to the 11th respondent through court decree. The appellant being a deriva-
      tive title-holder is bound by the decree as judgment-debtor. He cannot seek
      any declaration of his independent title thereof. He can no longer avail of C
      his tenancy rights which stood merged in his title held under pre-emption
      decree.

             In this view, it is not necessary for us to go into the controversy
      whether some observations made in Vennarakkal Kallalathil Sreedharan v.
      Cltandramaath Balakrishnan & Anr., JT (1990) 1 SC 390 need to be D
      clarified and correct legal position stated, which would be considered in
      an appropriate case.

           The appeal is accordingly dismissed but, in the circumstances,
      without costs.
                                                                                   E
      R.P.                                                    Appeal dismissed.


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