Appeals Nos 130 and 131 of 1951
Appeals from
the Judgment and Decrees dated the 12th August 1948 of the High Court of Judicature at Calcutta in Appeals from Original Decrees Nos
214 of 1942 and 231 of 1943 arising from the Decrees dated the 16th June 1942 of the Court of the Subordinate Judge Burdwan in Money Suit No 261 of 1932 Miscellaneous Case No 132 of 1941 and Money Suit No 262 of 1932Miscellaneous Case No 131 of 1941
N C Chatterjee A K Dutt and Sukumar Ghose with him for the appellant
Manmohan
Mukherjee and P K Chatterjee for respondent No 1 989 1954
March 12
The Judgment of the Court was delivered by MUKHERJEA J
These two analogous appeals which are between the same parties and involve the same points in dispute are directed against a common judgment of a Division Bench of the Calcutta High Court dated the 12th of August 1948 by which the learned Judges affirmed in appeal the decision of the Subordinate Judge of Burdwan passed in two analogous proceedings under section 36 of the Bengal MoneyLenders Act
The facts material for our present purpose lie within a narrow compass and may be stated as follows The principal respondents are certain idols represented by their managing Shebait Ram Govinda Roy
The idols are the family deities of the Roys of Bonpash in the district of Burdwan and the number of Shebaits being very large there is a recognised usage in this family that the seniormost member amongst the descendants of the founder acts as the managing Shebait and it is he who manages the endowed properties and looks after the due performance of the worship of the idols
It is not disputed by the parties that it is within the competence of the managing Shebait to borrow money to meet the necessities of the idols and to execute such documents as may be necessary for that purpose
Admittedly Adwaita Charan Roy was the managing Shebait of the deities from 1926 to 1930 and as Shebait he executed a Hatchita in favour of one Nanitosh Chakraborty some time in April 1928 on the basis of which he received advances of money from time to time from the latter
The last entry in the Hatchita was made in March 1929 and the total amount borrowed up to that date came up to Rs 3801
Adwaita died in March 1930 and after his death Satish Chandra Roy became the managing Shebait and continued to act as such till his death in 1940
There was an adjustment of accounts between Nanitosh the creditorin whose favour the Hatchita was executed and Satish Chandra the managing Shebait some time in October 1931 and a sum of Rs 5068 having been found due to the 128 990 creditor Satish Chandra gave him a renewed Hatchita for that amount
It appears that while Adwaita was still the managing Shebait a suit was instituted by some of his co Shebaits to remove him from his office and pending the hearing of the suit Ramjanaki Roy another co Shebait was appointed a Receiver of the debutter property by the court
With the permission of the court Ramjanaki borrowed from the same Nanitosh Chakraborty three sums of money on three different promissory notes executed respectively on the 27th September 1929 1st October 1929 and 14th January 1930
The suit was eventually dismissed for non prosecution after Adwaita s death
Nanitosh died in 193 1 and in 1932 his two sons Aditya and Dhirendra who figure as respondents 14 and 15 in these appeals instituted two money suits against Satish Chnandra the managing Shebait in the Court of the Subordinate Judge Burdwan being Money Suits Nos 261 and 262 of 1932 for recovery of the moneys due in respect of the Hatchita and the promissory notes mentioned aforesaid
Both the suits were decreed on the basis of a compromise dated the 23rd July 1933 and two consent decrees were passed one for a sum of Rs 5800 and the other for Rs 2200 both payable in sixteen yearly instalments with a further stipulation that in default of payment of any one of the instalments the whole or balance of the decretal amount would become due and payable in each
The instalments not having been paid in either of the cases both the decrees were put into execution
In Execution Cases Nos 76 and 77 of 1936 arising out of Money Suits Nos 261 and 262 of 1932 the properties mentioned in Schedule Ka in each case were put up to sale and they were purchased ostensibly by the two decreeholders Aditya and Dhiren
Three years later Execution Cases Nos 17 and 18 of 1939 were started again in connection with the said decrees and this time the properties specified in Schedule Kha were attached and put up to sale and they were also purchased by the Chakraborty decreeholders
Finally in Execution Cases Nos 163 of 1939 and 5 of 1940 the properties described in Schedule GA were sold and 991 they were knocked down to Srimati Oramba Sundari Dasi who figures as the appellant in the appeals before us and who it may be noted is the wife of Aghore Nath Roy a son of Adwaita the former managing Shebait of the debutter estate
Subsequently the decreeholders who purchased Ka and Kha Schedule properties sold them by a registered Kobala to the said Oramba Sundari Dasi on the 26th of July 1940
The result therefore was that the properties described in the three Schedules came to vest in Oramba Sundari the wife of Aghore Nath Roy
On the 28th August 1941 the deities represented by some of the Shebaits filed two applications under section 36 6 a ii of the Bengal Money Lenders Act praying for the reopening of the two compromise decrees mentioned aforesaid and the passing of
new installment decrees in accordance with the provisions of the Act
There were prayers also for restoration
to the deities of all the properties mentioned in Schedules Ka Kha and Ga which were purchased in execution of the decrees
The principal opposite parties to these proceedings were the Chakraborty decreeholders Oramba Sundari the ostensible purchaser and Aghore Nath Roy her husband
The allegations in the applications in substance were that the Chakrabortys were mere benamidars for Aghore Nath Roy who was the real lender and the real decreeholder in both these suits
It was alleged that Aghore Nath Roy purchased these properties in the benami of the decreeholders in two out of the three execution proceedings and in the benami of his wife Oramba Sundari in the third
The subsequent Kobala executed by the Chakrabortys in favour of Oramba 
Sundari was also asserted to be a fictitious conveyance made in favour of Aghore Nath Roy in the name of his wife
In these circumstances the judgment debtors prayed that they were entitled to have the two compromise decrees reopened and on the passing of new instalment decrees to have the properties which were in possession of the real decreeholder restored to the deities in terms of section 362c of the Bengal Money Lenders Act
The trial judge decided 992 in favour of the judgment debtors and granted their prayers in both the applications
Orders were made for reopening of the decrees and making of fresh decrees in their places in accordance with the provisions of the Bengal Money Lenders Act
Direction was also given for restoration of the properties mentioned in Schedules Ka Kha and Ga to the deities under the provision of section 362c
Against this decision Oramba Sundari took two appeals to the High Court of Calcutta and the learned Judges who heard the appeals affirmed the decision of the court below and dismissed both the appeals
Oramba Sundari has now come up in appeal to this court on the strength of a certificate given by the High Court under sections 109 a and 110 of the Civil Procedure Code
Mr Chatterjee who appeared in support of the appeals has not challenged before us the findings of fact concurrently arrived at by the courts below viz
that the appellant Oramba Sundari was a mere benamidar for her husband Aghore in respect of the purchase of Ga Schedule properties in court sale and also that the Kobala executed by the Chakrabortys in her favour on July 26 1940 was a fictitious transaction
The point which he has pressed for our consideration is that in a proceeding under section 36 of the Bengal Money Lenders Act it is not open to the court to go behind the decree and launch an enquiry as to whether the decreeholders on record were in fact benamidars for another person
In other words the contention is that even if Aghore was proved to have advanced the money upon which the Chakrabortys obtained the decrees in reopening the decrees and in working out the rights of the parties in accordance with the provisions of the Bengal Money Lenders Act the court could treat the Chakrabortys alone as the decreeholders
For a proper determination of this point it is necessary to examine the scope of section 36 of the Bengal Money Lenders Act and the reliefs which the Court is competent to grant in terms of that section
Section 36 of the Bengal Money Lenders Act sets out the various powers which the court can exercise 993 if it has reason to believe that the exercise of one or more of the powers will give relief to the borrower as contemplated by the Act and one of the powers which is mentioned in clause a of sub section 1 of the section is to reopen any transaction and take an account between the parties
The drafting of section 36 is indeed obscure and somewhat clumsy but it is clear as the Privy Council 1 has pointed out that the power of reopening a transaction as contemplated by the section extends to reopening of decrees as well
Sub section 2 of section 36 contains detailed provisions as to what the court may or may not do when a decree is reopened
It cannot be disputed that the court reopens a decree under section 362 only for the purpose and so far as it is necessary to give relief to the borrower in the manner provided for in the Act namely to release him from all liability for interest in excess of the limits prescribed by section 30 of the Act
A new decree is passed only for the purpose of substituting the method of accounting sanctioned by the Act for the calculations upon which the original decree was passed and to give an opportunity to the judgment debtor to pay the decretal dues thus ascertained by instalments
But save and except for these the old decree as well as the adjudications made thereunder are not wiped out and the parties are not relegated to their rights and liabilities under the original cause of action 2
How the rights of the parties are to be adjusted and worked out when a decree hat been reopened has been dealt with exhaustively in the several clauses of section 36 2 of the Bengal Money Lenders Act and an examination of these clauses makes it clear to our minds that an enquiry as to whether the decree holder was in fact a benamidar for another person in respect of the decree does not come within the purview of these provisions
Clause a of section 362 empowers the court to pass a new decree in accordance with the provisions of the Act
Obviously this new decree is to be passed in favour of the original decreeholder and only the calculations upon which the old 1 Vide Renula vs Manmatha 72 IA 156
2 Vide Bank of Commerce Ltd vs Amulya Krishna Babu Roy Chowdhury 994 decree was based would be changed by substituting the statutory method of accounting in place of what rested upon the contract between the parties
Clauses b and C contemplate cases where properties have been sold in execution of the original decree
If the purchaser is the decreeholder himself and he is in possession of the property when the decree is reopened it is incumbent upon the court to order restoration of these properties to the judgment debtor under clause c
If on the other hand the properties had been acquired by strangers either by purchase at the execution sale or from the decreeholder purchaser their interests would be protected if they have acquired these rights bona fide as contemplated by clause b
Under clause d the court has to order the payment of the decretal amount in such instalments as it thinks proper and clause e further imposes a duty on the court to give a direction in such cases that if there is default in the payment of any one of the instalments the properties restored to the judgment debtor under clause e would be put back into the possession of the decreeholder
It is quite true that the object of restoring possession of the properties sold in execution of the decree to the judgment debtor is to enable the latter to pay off the decretal dues but it is to be remembered that the sale itself is not annulled and in case of default in payment of any of the instalments the properties are returned to the decreeholder purchaser
We agree that if the purchaser is a mere benamidar for the decreeholder clause b subsection 2 of the section would not afford protection to him in any way
He could not be regarded as a person other than the decreeholder acquiring rights bona fide as contemplated by that clause
For the purpose of giving effect to clauses b and c therefore the court has not only the right but is under a duty to make an enquiry as to whether the ostensible purchaser at the execution sale or the person who purports to have acquired an interest therein under a subsequent transfer from the decreeholder purchaser has bonafide acquired such rights within the meaning of clause b
But we do not agree with the learned 995 Judges of the High Court that in making a new decree under clause a of section 362 and giving the judgment debtor consequential relief under clause c of the sub section the court can at all enter into the question as to whether the decreeholder on record is himself a benamidar for another person in respect of the decree
Such enquiry it seems to us is altogether outside the purview of the different clauses of section 362 of the Bengal Money Lenders Act
These provisions do not recognise any other decreeholder than the one in whose favour the original decree was passed
It is between him and the judgment debtor that the rights are to be adjusted in accordance with the provisions of the Act to him would the instalments have to be paid under the new decree and he alone would be compelled to restore the properties which he had purchased in execution proceedings
None but the decreeholder on record can give a valid discharge or record satisfaction of the decree
This being the position it is altogether immaterial in our opinion that it was Aghore the husband of the appellant who really advanced the money upon which the decrees were obtained
We must treat the Chakrabortys and the Chakrabortys alone as the decreeholders and see to what extent the provisions of the Act could be applied against them in the circumstances of the present case
So far as the properties described in Schedules Ka and Kha are concerned it is not disputed that they were purchased by the decreeholders themselves
No price was actually paid by the decreeholders but the sale proceeds were set off against the decretal dues
The decreeholders therefore must be deemed to be the purchasers of these properties within the meaning of clause c of section 362 and as the subsequent conveyance of these properties in favour of Oramba Sundari the appellant has been held by both the courts below to be a fictitious transaction we must hold that Oramba Sundari did not bona fide acquire any right which could be protected under clause b of section 362
With regard to these properties therefore the order for restoration of possession made by both the courts below should stand
As regards Ga 996 Schedule properties however Oramba Sundari was the purchaser at the execution sale and whether or not the money for such purchase was paid by her husband becomes immaterial
This was not the property purchased by the decreeholders and there is no proof of the decreeholders being in possession of the same either by themselves or through Oramba Sundari
In these circumstances clause e of section 362 cannot be attracted in favour of judgment debtors so far as this property is concerned and the possession of it must remain with the appellant
We therefore allow the appeal in part and set aside the order for restoration of possession made by the courts below in respect to the Ga Schedule property
The rest of the decision of the High Court will stand
We make no order as to costs of these appeals
Appeal partly allowed


Summary:
Held that in a proceeding under section 36 of the Bengal Money Lenders Act 1940 it is not competent to the court to go behind the decree and embark on an enquiry as to whether the decree holders on record were in fact benamidars for another person
Scope of section 36 of the Act discussed
Renula vs Manmatha 72 IA 156 and Bank of Commerce Ltd vs Amulya Krishna Basu Boy Chowdhury 1944 FCR 126 referred to