30 April 1962
Supreme Court
Download

RAJ RAJENDRA SARDAR MALOJI MARSINGH RAO SHITOLE Vs SRI SHANKAR SARAN AND ORS.

Bench: KAPUR, J.L.,SARKAR, A.K.,GUPTA, K.C. DAS,AYYANGAR, N. RAJAGOPALA,MUDHOLKAR, J.R.
Case number: Appeal (civil) 24 of 1960


1

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 23  

PETITIONER: RAJ RAJENDRA SARDAR MALOJI  MARSINGH RAO SHITOLE

       Vs.

RESPONDENT: SRI SHANKAR SARAN AND ORS.

DATE OF JUDGMENT: 30/04/1962

BENCH: KAPUR, J.L. BENCH: KAPUR, J.L. SARKAR, A.K. GUPTA, K.C. DAS AYYANGAR, N. RAJAGOPALA MUDHOLKAR, J.R.

CITATION:  1962 AIR 1737            1963 SCR  (2) 577  CITATOR INFO :  RF         1963 SC1180  (1,3)  D          1971 SC 974  (3,12,14,16,29,31)  D          1977 SC 164  (5)

ACT: Foreign  Decree-Decree passed in Gwalior in  November  1948- Transfer for execution to U. P. in September  1951-Execution application  in U. P.-Maintainability of-"Civil Court  in  a Part B State," connotation of-Code of Civil Procedure,  1908 (V of 1908), ss. 2 (5), 2 (6), 13, 38, 39, 43 and 44-Code of Civil   Procedure  (amendment)  Act,  1951  (11  of   1951)- Constitution of India, Art. 261 (3).

HEADNOTE: The  appellant instituted a suit for the recovery  of  money against  the respondents in a Court in Gwalior State in  May 1947.   The respondents who were residents in U. P. did  not appear  before  the court and in November 1948  the  Gwalior Court passed an ex partc decree.  On September 14, 1951, the Gwalior  Court  transferred  the  decree  for  execution  to Allahabad,  and on October 16, 1951, the appellant filed  an application for execution of the decree before the Allahabad Court.   The respondents contended that the decree  being  a decree of a Foreign Court to whose jurisdiction they had not submitted  was  a nullity and the execution  application  in respect thereof was not maintainable. Held, that the decree was not executable at Allahabad. Per  Kapur,  Ayyangar and Mudholkar, JJ.The  decree  of  the Court  in Gwalior State sought to be executed was a  foreign decree   which  not  change  its  nationality   inspite   of subsequent constitutional changes or amendments in the  Code of  Civil  Procedure.   On the day on which  it  passed  the decree  the  Gwalior Court was a foreign  Court  within  the meaning  of  s. 2 (5) of the Code.  None of  the  conditions necessary  to give its judgment  extra-territorial  validity existed  (i)  the  respondents  were  not  the  subjects  of Gwalior; (ii) they were not residents in Gwalior at the time the suit was filed, (iii) they were not temporarily  present in gwalior when the process was served upon them, (iv)  they

2

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 2 of 23  

did  not  select the forum which passed the  decree  against them, (v) they did not voluntarily appear before the  court, and   (vi)  they  had  not  contracted  to  submit  to   the jurisdiction of the                             579 by  the Indian Code, was a different court from  that  which passed  the  decree under the Local Code, and  was  not  the court. which passed the decree within the meaning of S.  39. Sections  37  to  42  of the Code  deal  with  execution  of decree.,  passed by the courts governed by the Indian  Code. The decree could not be executed under the provisions of  s. 43  of the Code at any time.  After its adaptation  in  June 1950, s. 43 applied to "a decree passed by a Civil Court  in a  Part B State".  There were no Part B States at  the  time when the decree was passed and these words could not be read as "a decree passed by a civil court in what became a Part B State".   Nor  could the decree be executed under s.  44  as that section was also inapplicable to this decree.   Article 261 (3) which provides that the final judgments or orders of Civil Courts in any part of the territory of India shall  be capable  of  execution  anywhere within  that  territory  is inapplicable  to  the decree of the Gwalior  court  as  the, provision is prospective and not retrospective. Per  Sarkar and Das Gupta, JJ.-Even in the decree passed  by Gwalior  Court was not a foreign decree the Allahabad  Court had  no power to execute it either under s. 38 or under  ss. 43  or  44  of  the Code of  Civil  Procedure.   Section  38 provides  that a decree may be executed either by the  court which  passed  it or by the court to which it  is  sent  for execution.   The  Allahabad Court was not  the  court  which passed  the  decree.  Section 39 empowers  the  court  which passed  the decree to transfer it for execution  to  another court.   The word "court" in the phrase "court which  passed the  decree" in s. 39 contemplates only courts  governed  by the  Indian  Code of Civil Procedure.  The  Gwalior  ,.Court which  was governed by the Gwalior Code when it  passed  the decree  had  a distinct identity from the court  at  Gwalior after it came to be governed by the Indian Code.  The  Court which  transferred the decree was accordingly not the  court which passed the decree and the order of transfer was not  a valid order. Section 43 of the Code provided for the execution of decrees passed  by the Civil Courts in places where the Indian  Code did  not  extend.  The decree of the Gwalior Court  did  not fall   within   this  section  as  it   stood   before   the Constitution.   A, After the adaptation in 1950 the  section applied  to  a decree passed "by a Civil Court in a  Part  B State".  These words could not be read as "by a civil  court in an Indian State which has later been included in a Part B State".  The Gwalior Court which passed the decree was not a Civil  Court  in a Part B State.  ’Section  44  was  equally inapplicable to the decree,. The section after adaptation in 1950 580 applied only to decrees of revenue courts.  Before the adap- tation  it  could  apply only if there  was  a  notification issued by the U. P. Government but no such notification  was issued.

JUDGMENT: CIVIL APPELLATE ,JURISDICTION: Civil Appeal No. 24 of 1960, Appeal from the judgment and decree dated August 1, 1957, of the Allahabad High Court in Special Appeal No. 249 of 1955.

3

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 3 of 23  

B.   Sen,  P.  W.  Sahasrabudhe and 1. N.  Shroff,  for  the appellant. G.   S. Pathak and O. C.  Mathur, for the respondents. 1962.   April  30.   The Judgment  of  Kapur,  Ayyangar  and Mudholkar,  JJ., was delivered by Kapur, J. The Judgment  of Sarkar and Das Gupta, JJ., was delivered by Das Gupta, J. KAPUR, J.-This its an appeal against the Judgment and  order of the High Court of Allahabad holding that the execution of the decree passed by the Additional District Judge, Gwalior, dated November 18, 1948, in favour of the appellant  against the  respondents  was  not  executable  at  Allahabad.   The appellant  in  this  court  is the  decree  holder  and  the respondents are the judgment debtors. For the decision of this appeal it is necessary to deal with the  various Statutes, Orders and agreements as a result  of which the erstwhile Indian State of Gwalior became a part of the territories of the Union of India governed by one  Civil Procedural  law.  It will also be necessary to refer to  the various changes in the law of civil procedure applicable  at the various stages of the litigation leading to this appeal. We shall first deal with the integration of the Indian State of Gwalior with the Indian Union.  581 Upto August 15, 1947, i.e. before the independence of  India under  the  Indian Independence Act (10 & 11  Geo,  Ch.  30) Gwalior  was what was termed under the Government  of  India Act  of  1935 an Indian State and its Courts  were  ’foreign courts’  within s. 2 (5) of the Indian Code of Civil  Proce- dure.   After independence by s. 7 (i) (b) of that  Act  the suzerainty  of  the  British Crown lapsed and  so  also  all treaties,  agreements  and obligation which  had  previously been  entered into between the Rulers of Indian  States  and the British Crown.  The second Question can conveniently  be dealt with at a later and appropriate stage. By the Instrument of Accession which by August 15, 1947, (p. 36 of White Paper on Indian States) was entered into between the Ruler of the State of Gwalior and the Dominion of  India certain  subjects mentioned in the schedule to that  Instru- ment  were  transferred to the Dominion of India  but  Civil Procedure  was  not one of them.  By a  covenant  signed  in April 1948, the Rulers of Gwalior, Indore and certain  other States in Central India formed the United State of  Gwalior, Indore  and  Malwa  which was termed  United  State  (Madhya Bharat).   By a fresh , Instrument of Accession executed  on July  19, 1948, the United State acceded to the Dominion  of India  and when the Constitution came into force  it  became Madhya  Bharata Part B State-and was governed by the  provi- sions  of  the Constitution as applicable  to  such  States. This  then was the process of transformation of  the  Indian State of Gwalior into a part of the Republic of India. On  May  15, 1947, the appellant instituted a  suit  in  the Court  of the District Judge, Gwalior, for recovery  of  Rs. 6,92,236.15-0 against the respondents, who are the sons  and legal representatives of the late Munshi Ishwar Saran.   The writs of summons were served on the respondents on 582 September 12, 1947, but they did not appear in the Court  of the  Additional District Judge who actually tried the  suit. On,  November  18,  1947, the trial Judge  ordered  suit  to proceed  ex  parte and on November 18, 1948, the  claim  was decreed  with  costs and interest.  On August 9,  1949,  the appellant made an application to the Court of the Additional District  Judge  praying  for transfer  of  the  decree  for execution to the Court of Civil Judge, Allahabad, where  the properties  of the father of the respondents  were  situate.

4

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 4 of 23  

On April 25, 1950, the Court passed the following order--               "I  order transfer of this execution care.   A               certificate of transfer relating to non-satis-               faction  of  decree  be issued  to  the  Civil               Judge,  1st  Class, Allahabad,  for  execution               proceedings.     This   execution   case    be               dismissed". On  September 14, 1951, another order was made  sending  the decree  for execution to the Court of the Civil  Judge,  1st Grade,  Allahabad.  Along with it a copy of the order  dated April 23, 1950, was also sent.  The order was as follows               "Order dated 14th September, 1951 for transfer               of decree to another court for execution".               Whereas  in  the  above  mentioned  case   the               applicant  submitted that the Judgment  Debtor               resided  or  held property  within  the  local               limits  of  the jurisdiction of the  court  of               Civil  Judge, ist Grade, Allahabad and  prayed               for the sending of a certificate to that court               for execution of the said decree and it  being               considered  necessary  and  proper,  the  said               certificate be sent to that court under  Order               XXI, Rule VI.               A  copy  of this order along  with  copies  of               decree, certificate of non-payment of decretal               583               amount     and   other   orders   passed    in               connection  with     execution  be   forwarded               directly to the court of the Civil Judge,  1st               Grade,               Allahabad.               Dated 14th September 1951.               Enclosures:-               1.    Certificate.               2.    Application of the decree holder               3.    Copy of decree in the case.               4.    Copy of order, dated 25th April, 1950.               Sd. B. K. Mehra.               Addl.   District  &  Sessions  Judge  District               Gwalior, Madhya Bharat". The  parties were not in accord as to which of these  orders was  the  real  order for transfer.  It  is  unnecessary  to resolve  this  controversy because we shall proceed  on  the assumption  that  the order of transfer was  the  later  one which  the appellant has relied upon i.e. of  September  14, 1951. On  October  16,1951, the appellant filed in  the  Court  of Civil Judge, Allahabad, an Application for execution of  the decree  for realisation of the amount due under it which  by then had amounted to Rs. 8,98, 7  7-0.  This was  registered as Execution Case No.47 of    1951  ’rho  respondents  filed their objections under s.     47   of  the  Code  of   Civil Procedure  on  February  8, 1952.   They  pleaded  that  the Gwalior  Court was a Foreign Court, to the  jurisdiction  of which, they had not submitted and the decree was, therefore, an  absolute nullity; that the decree was not in  accordance with  law  and that the application for  execution  was  not maintainable.  By an order of the High Court under s. 34  of the Civil Procedure Code, the execution case was transferred to the High Court and 584 registered  as  Extraordinary Miscellaneous Case  No.  1  of 1954.   The matter was beard by Brij Mohan Lal J., who  bold that  the  decree  was passed by a  Foreign  Court,  to  The jurisdiction  of which, the respondents had  not  subsisted;

5

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 5 of 23  

that the decree was not binding on the respondents and could not  be executed in the territories of Uttar  Pradesh.   The execution application was, therefore, dismissed.  On  appeal against  that judgment the Appeal Court upheld the  judgment of the learned Single Judge holding that the rule in  Sirdar Gurdial Singh v. Maharaja of Faridkot (1) was applicable  to the  case; that Gwalior was a foreign State on the  date  of the  decree  and  its status as a  foreign  State  was’  not affected   by  the  Indian  Independence  Act,   1947,   the Standstill Agreement, 1947 the First Instrument of Accession 1947, the 1948 Covenant by which the United State of  Madhya Bharat  which  included  Gwalior was formed  or  the  Second Instrument of Accession, 1948, an that Gwalior State  ceased to  be a foreign State only on the coming into force of  the Constitution  of  India on January 26, 1950.  It  also  held that  the  District Judge’s court passing the decree  was  a foreign Court at the time of the suit.  As the appellant had not  submitted to the jurisdiction of the  Gwalior  District Judges  Court  the  decree  passed by  it  was  an  absolute nullity;that even if the Gwalior law authorised the  passing of  such a decree, the decree was a nullity and it  was  not correct   to   Pay  that  as  a  result   of   the   various constitutional  changes,  the impediment in the way  of  its execution was removed; that there was no provision of law by which a decree passed by the Gwalior Court could be executed in  Uttar Pradesh; that Art. 261(3) of the Constitution  was not  retroactive  and  did  not operate  on  the  decree  in question  to  make it executable; that s. 43 of  the  Indian Civil procedure Code as it stood after the Amendment Act  II of  1951  was  inapplicable; that the right  to  resist  the execution (1)  (1894) L. R 21 I. A. 171.                             585 of  the decree on the ground that it was a nullity  was  not taken  away  by the political changes  and,  therefore,  the judgment  of the learned Single Judge was  upheld.   Against this judgment and Order the appellant has come in appeal  to this Court on a certificate under Art. 133(i) (a) and (e) of the Constitution; The vital question for decision is whether the decree passed by the Gwalior Court on November 18, 1948, was executable in the State of Uttar Pradesh which, was at one time, a part of what was British India, Gwalior at the relevant time being a part  of the United State aforesaid.  For this purpose,  the questions that arise are:-               1.    Was  the  decree a decree of  a  foreign               court?               2.    Could  the  Court at Gwalior  order  the               transfer  of the decree for execution  in  the               Allahabad Civil Court?               3.    If  it  could not, then was  the  decree               executable  at Allahabad under ss. 43 & 44  of               the Code of Civil Procedure? and               4.    Could  the respondents-judgment  debtors               take  an  objection to the  execution  of  the               decree  on the ground that it was an  absolute               nullity, being the decree of a foreign Court? We  shall first enquire into the nationality of  the  decree passed  in  favour  of the appellant  which  necessitates  a determination  of the Court passing the decree i.e,  whether it  was  or was not a Court falling within s.  2(5)  of  the Indian  Code of Civil Procedure (Act V of 1909) which  shall hereinafter be termed the ’Indian Code. At the.time when the suit was brought i. e. 586

6

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 6 of 23  

May 15, 1947, the definition of "Foreign Court" in s.  2(b) of the Indian Code was:-               ""Foreign Court" means a court situate  beyond               the  limits  of  British India  which  has  no               authority   in  British  India  and   is   not               established  or,  continued  by  the   Central               Government or the Crown representative." As  a result of the Adaptation Order of March 23, 1948,  the definition was:-               " "Foreign Court" means a court situate beyond               the limits of provinces which has no authority               in  the  provinces and is not  established  or               continued by the Central Government." By  the  Adaptation Order of January 26, 1950, there  was  a further  change in the definition of "Foreign Court" and  it then stood as follows:-               ""Foreign Court" means a court situate  beyond               the   limits  of  the  States  which  has   no               authority in States and is not established  or               continued by the Central Government." After  Act II of 1951 came into force on April 1,  1951  the section read as follows:--               "Foreign Court" means a court situate  outside               India and not established or continued by  the               authority of the Central Government." At  the  time of the passing of the decree on  November  18, 1948  the definition of the Foreign Court was as amended  by the Adaptation order of March 23, 1948 i. e. a court situate beyond the limits of the provinces which means the provinces of what was British India and which had no authority in  the provinces  (of  British India) and was  not  established  or continued  by the Central Government.  The court at  Gwalior fell  587 within this definition and therefore on a plain reading,  of the definition it was a foreign court and a judgment  passed by  it  would be a foreign judgment as defined  in  s.  2(6) where  the expression "foreign judgment" is defined  as  the judgment, of a foreign court. Under the Indian Code the judgment obtained by the appellant in Gwalior court would be governed by s. 13 of that Code and its conclusiveness is governed by cl. (a) to cl. (f) of that section.   The rules laid down in that section are rules  of substantive  law and not merely of procedure.  It is  to  be noted  that  in  the present case the  respondents  did  not submit  to  the  jurisdiction  of  the  Gwalior  Court.   In Halsbury.’s Laws of England Vol.  VII p. 144, paragraph  257 (3rd Ed.) conditions necessary for giving jurisdiction to  a foreign  court  are  set out and at least  one  of  them  is required  to  be  satisfied before  a  foreign  judgment  is regarded as having extra-territorial validity.  None of them was satisfied in the present case.  Firstly the  respondents were  not  the  subjects of Gwalior; they did  not  owe  any allegiance  to the Ruler of Gwalior and therefore they  were under no obligation to accept the judgments of the courts of that  State.  Secondly the were not residents in that  State when  the  suit  was  instituted.   Thirdly  they  were  not temporarily  present  in  that State when  the  process  was served on them.  Fourthly they did not in their character as plaintiffs  in  the foreign action themselves  selected  the for-am  where the judgment was given against them.   Fifthly they did not voluntarily appear in that court.  Sixthly they had  not  contracted to submit to the  jurisdiction  of  the foreign court.  The Gwalior Court therefore was not a  court of  competent jurisdiction.  The judgment of  Gwalior  Court

7

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 7 of 23  

was  therefore  a nullity outside the United  State  (Madhya Bharat).  See Gurdyal Singh v. Raja 588 of Faridkot (1).  Lord Selborne there observed as follows:               "Under these circumstances there was, in their               Lordships’ opinion, nothing to take this  case               out  of the general rule, that  the  plaintiff               must one in the court to- which the  Defendant               is  subject  at  the  time  of  suit   ("Actor               sequitor forum rai"); which is rightly  stated               by  Sir Robert Phillimore (International  Law,               Vol.  4,  s. 891 to "lie at the  root  of  all               international, and of most domestic, jurispru-               dence  on this matter".  All  jurisdiction  is               properly  territorial and  "extra  territorium               jus    dicenti,    imprime    non    paretur".               Territorial   jurisdiction   attaches    (with               special  exceptions) upon all  persons  either                             permanently or temporarily resident within  th e               territory  while  they are within it;  but  it               does not follow them after they are living  in               another independent country.  It exists always               as to land within the territory and it may  be               exercised over moveables within the territory;               and,  in  questions of  status  or  succession               governed  by  domicil,  it  may  exist  as  to               persons  domiciled,  or who when  living  were               domiciled,  within the territory.  As  between               different  provinces  under  one   severeignty               (e.g., under the Roman Empire) the legislation               of  the sovereign may distribute and  regulate               jurisdiction;  but no territorial  legislation               can give jurisdiction which any foreign  Court               ought to recognise against foreigners, who owe               allegiance or obedience to the power which  so               legislates". But  it  was submitted by the appellant that  the  Court  at Gwalior  ceased to be a foreign court because firstly  as  a consequence of the constitutional.documents executed by  the Rulers of Indian States the ’United State (Madhya Bharat) (1)  (1894) 1. R. 21 LA. 171,  423                             589 become  a  part  of the Dominion of India  and  therefore  a decree  passed  by  a court of the State could  not  be  the decree  of  a  foreign court; secondly as a  result  of  the coming  into  force of the Constitution of  India  what  was United State (of Madhya Bharat) became a Part B State of the Union of India and therefore a decree passed by the  Gwalior Court even though a nullity in the erstwhile province of  U. P.  ceased  to be so and took Indian  nationality  and  thus became  executable  in  the  State  of  U.  Thirdly  it  was submitted that the decree passed by the Gwalior Court was  a valid  decree  in  the  United  State  (Madhya  Bharat)  and therefore  was  not  an absolute nullity but  there  was  in impediment to its executability which was removed as soon as the United State (Madhya Bharat) became a part of the  Union of  India  and  fourthly it was  submitted  that  subsequent changes in the Indian Code consequent upon the  promulgation of  the Adaptation Order of January 26, 1950 under Art.  372 of  that Constitution and subsequent amendment of the  Order of June 5,1950, which became retrospectively operative  from January  26, 1950 and by a subsequent Act  [Civil  Procedure Amendment  Act  (Act II of 1951] the  Gwalior  Court  became

8

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 8 of 23  

competent to transfer its decrees for execution to the Court at  Allahabad; and under the provisions of the  Indian  Code relating  to execution amended from time to time the  decree sought  to  be executed became executable by  the  Court  at Allahabad. The   first   contention  is   unsustainable   because   the constitutional  changes  did not effect any  change  in  the status  or nationality of the Gwalior Court till  after  the passing  of the decree of November 18, 1948 and there  being no specific provision to the contrary those change left  the decree unaffected.  The United State (Madhya Bharat) had not become a part of the Dominion of India despite the various 590 constitutional  documents  executed  by the  Rulers  of  the Indian States.  The effect of these Constitutional documents was  examined and decided in Rao Shiv Bahadur Singh  v.  The State of Vindhya Pradesh(1); Virendra Singh v. The State  of Uttar Pradesh(1) and Prem Nath Kaul v. The State of Jammu  & Kashmir(3). In  Rao Shiv Bahadur Singh’s case it was held that in  spite of  the  Instrument  of  Accession  by  which  all  subjects enumerated  in  Lists  I  and III of  Schedule  VII  of  the Government  of  India  Act  1935 were  banded  over  to  the Dominion  Government and in spite of the Covenant  by  which the  Rajpramukh had declared that the Constitution of  India which was to be adopted by the Constituent Assembly of India shall   be   the  Constitution  for  Vindhya   Pradesh   and specifically  superseded and abrogated other  constitutional provisions  inconsistent therewith which were then in  force in the State, those arrangements brought about an integrated United State of Vindhya Pradesh within the framework of  the Dominion of India "but only by way of accession".               In Virendra Singh’s case Bose J., observed  as               follows:-               ((Despite  the readjustment, the sum total  of               the  sovereignties; which had resided in  each               (ruler)  before the covenant- now  resided  in               the whole and its component parts; none of  it               was lost to the Dominion of India". (P. 419) A somewhat similar view was taken by the Court of Appeal  in Sayco  v. Ameer Ruler Sadiq Mohammad of Bahawalpur where  an objection was taken by the Ruler of Babawalpur State that he still  retained  his  independent status and  the  State  of Bahawalpur was not within His Majesty’s Dominion (1)  [1953]1 S.C.R. 415,418,419.  (2) [1959] Supp  2  S.C.R. 275. (3) [1952] 2 Q. B. 390, 394. 591 in  spite of the Ruler of Babawalpur having acceded  to  the Dominion of Pakistan. At the relevant date i.e. on November 18, 1948, the  various constitutional  changes  did  not affect  the  position  and status of the United States (Madhya Bharat) which  comprised Gwalior  also; it did not become a part of the  Dominion  of India but continued to retain its status.  The United  State (Madhya  Bharat)  was not comprised in the  ’,’Territory  of India"  till  after  the Constitution  came  into  force  on January 26, 1950.  This Court has hold that the Constitution is prospective and not retrospective: Janardhan Reddy v. The State  of Hyderabad(1); Lachamandas Kewal Ram Ahuja  v.  The State  of  Bombay (2); [Keshavan Madhua Menon  v.  State  of Bombay(,).  Before the Constitution, Madhya Bharat was not a Part  B  State  but  became one  as  a  consequence  of  the Constitution.   Therefore the decree which was sought to  be executed remained a decree of a foreign court as defined  in

9

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 9 of 23  

s. 2(5) of the Indian Code then applicable and its  judgment had to be enforced in the manner that foreign judgments were enforceable  i.  e. either a suit had to be brought  on  the basis  of that judgment or if there was a provision  in  the Indian  Code it had to be executed in accordance  with  that provision;  Mull’s C. P. C. p.96; Dicey, Conflict  of  Laws, Rule 162(7th Ed.). A Judgement which is governed by the rule in  Sirdar Gurdyal Sing’s (4) case not being by a  court  of competent  jurisdiction  in the international  sense  i.  e. according to the principles of International Law  (Cheshire, Private  International  Law,  p.  641,  6th  Ed.)  and   the respondent  not  having submitted to its jurisdiction  is  a nullity  outside  the  territory  of  the  State  in   which the,court  passing the decree is situate.  In that  case  it was said: (1) (1951) S C. R. 344, 368    (2) (1952) S. C. R. 710, 730. (3) (1951) S. C. R 288.   (4) (1894) L.R. 21 I.A. 171. 592               "In  a personal action to which none of  these               causes   of  jurisdiction  apply,   a   decree               pronounced in absentem by a foreign Court,  to               the  jurisdiction of which the  Defendant  has               not in any way submitted himself, is by inter-               national law an absolute nullity.  He is under               no  obligation of any kind to obey it; and  it               must  be  regarded as a mere  nullity  by  the               Courts of every nation except (when authorised               by  special local legislation) in the  country               of the forum by which it was pronounced". On  the basis of such a decree therefore no action could  be brought  in  what was British India the decree  being  of  a Court in an Indian State. By  el. 27 of the Adaptation of Laws Order made  on  January 26,  1950,  the previous operation of or  anything  done  or suffered  under  any existing law or any  right,  privilege, obligation   or  liability  already  acquired,  accrued   or incurred  remains unaffected.  This Order  was  subsequently amended  on June 5, 1950 and el. 27 was numbered as  20  but there was no change in its language.  Therefore by a  change made  in the definition of "foreign court’ or other  changes introduced  in the Indian Code the effect of and rights  and liabilities under the decree sought to be executed, no fresh rights   accrued  to  the  appellant  nor  were  any   fresh liabilities  incurred by the Respondents and if  the  decree was  a nullity outside the United State (Madhya  Bharat)  it remained  a nullity and Adaptation Order did not change  its efficacy.  The effect of Act II of 1951 by which the  Indian Code  was applied to Madhya Bharat was no different qua  the rights  and liabilities under previous Orders  and  decrees; see  s.  20 of that Act which will be more  fully  discussed later in this judgment. In  this  connection we may refer to the judgement  of  this Court in Kishori Lal v. Shanti  593 Devi(1).   There, an order under s. 488, Criminal  Procedure Code,  had been passed by a Magistrate at Lahore before  the Partition of India and that was sought to be enforced  under s.  490  of the Criminal Procedure Code  in  a  Magistrate’s Court at Delhi.  An objection was raised that the order  was enforceable as it was the order of a foreign court’ i. e. of a  court  which had subsequently become  a  Pakistan  Court. This  Court held that the order was of an Indian Court  when made  and  was at the time of its enforcement in  the  Delhi Court still an order of a domestic tribunal.  In the absence of  any specific bar there was no reason why it should  lose

10

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 10 of 23  

its Indian nationality simply because Lahore was no longer a part of India.  Bose J., at p. 442 observed:-               "A  number of enabling provisions were  passed               after  the partition to meet  certain  special               cases of this kind and of course, where  there               is specific legislation, effect must be  given               to  it.  But where, as here, there is  nothing               then in the absence of a specific bar we  hold               that  an  order which was good  and  competent               when  it  was made and which was passed  by  a               tribunal which was domestic at the date of its               making and which could at that date, have been               enforced in an Indian Court, does not lose its               efficacy by reason of the partition". This no doubt is the reverse case of the present one but the principle  laid down there that the effect of  the  judgment obtained  before the constitutional changes does not  change unless  there  is a specific provision to  that.  effect  is applicable  to  this case also.  Following the  decision  in Kishori  lal’s(1) case Wanchoo J., (as he then was in  Laxmi Chand  v.  Mst.  Tipuri(2) held that the  crucial  date  for determining the validity or enforceability of an order or a (1) A.I.R. 19S3- S. C. 441. (2) J. L. R. 1936 Raj. 236. 594 decree is the date when it was made.  Therefore if a  decree was  unenforceable in a particular court at the time it  was passed,  it  would not become enforceable and  valid  simply because  of  the political changes That  took  place  unless there is a specific provision to the contrary.  The Calcutta High  Court in Shah Kanti Lal v. Dominion of India (1)  held that  there, is no retrospective effect of the  Constitution including  its definition of The words "Territory of  India" which  has  the  effect of converting  what  was  a  foreign judgment  before  the Constitution of India  to  a  domestic judgment  after  the  Constitution.   The  argument’  raised against the decree of the Gwalior Court being a nullity  and not remaining so after the Constitution must therefore fail. The  next argument raised was that the decree passed by  the Court at Gwalior on November 18, 1948, was not a nullity  as under  the  Madhya Bharat Code of Civil Procedure it  was  a valid  decree  and  there was- only  an  impediment  to  its executability  which  was removed as a consequence,  of  the constitutional changes and the subsequent amendments of  the Indian  Code.  This argument is also not well founded.   The decree  was,  in the international sense a  nullity  outside Madhya Bharat even though according to the law in that State it  was not so.  We have all ready held that the decree  was foreign  when it was born in Gwalior and it continued to  be so as there was no process or procedure for its becoming,  a naturalised  Indian  decree.   The decree  being  a  nullity outside the courts of the United State (Madhya  Bharat),  in the  absence  of  any specific provision, it  could  not  be enforced  in the United State (.Madhya Bharat). It will  not be correct to say that the decree which was a nullity before the  Constitution  came into force suffered  Only  from  the defect  of  enforcibility by execution  Section  13  creates substantive rights and is not merely (1)  A.I.R. 944 Cal. 67.                             595 procedural  and  therefore defenses which were open  to  the Respondents  were  not  taken  away  by  any  constitutional changes  in  the  absence of a  specific  provision  to  the contrary.  It is erroneous to say therefore that the  decree of  the Gwalior Court was unenforceable when passed  because

11

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 11 of 23  

of  some  impediment  which  the  subsequent  constitutional changes  had removed; but that decree suffered from a.  more fundamental  defect  of being a nullity and the  rights  and liabilities   created  under  it  remained   unaffected   by subsequent changes.  That, in our opinion, is the effect  of the  judgment of this Court in Kishori Lal’s  case(1).   See also  E. Radhesham Roshan Lal v. Kundanlal Mohanlal")  where it  was held that the right of the judgment-debtor to  plead that the decree is a nullity, is not a procedural matter but is  a vested right in the judgment debtor and it  cannot  be taken   away   by  the  provision  of  law  which   is   not retrospective.  The Nagpur High Court in Ram Kishan Jankilal v.  Seth  Harmukharai  Lachmi Narayan(3) also  held  that  a decree  by the Indore High Court prior to  the  constitution was  of  a  court without jurisdiction  and  merely  because Indore  became a part of the "Territory of India" after  the Constitution  did  not retrospectively clothe the  court  at Indore  with jurisdiction in order to make the decree  which was a nullity, into a valid decree. It was next argued that as a result of subsequent changes in the provisions of the Indian Code result from constitutional changes  in the country, and amendments in the  Indian  Code the decrees of the Courts in Madhya Bharat became executable under  the  provisions of the Indian Code  and  the  Gwalior Court  could therefore transfer the decree for execution  to the Court at Allahabad. We shall therefore discuss the power of the Court at Gwalior to  make  the order ’of transfer dated September  14,  1951, assuming without decid- (1) A.I.R. (1953) S.C. 441.  (2) I.L.R. 1956 Punj. 434. (3) A.I.R. 1955 Nag. 103, 596 ing  that  order  which the appellant  relies  upon   Was  a judicial orders of transfer.  At the time when ’the suit was filed  i.  e.  May  15, 1947,  the  law  relating  to  civil procedure applicable to Gwalior State was the Gwalior  Civil Procedure  Code (Gwalior Act 1 of Samvat 1966 i.  e.  1909). The  relevant provisions of that Code dealing with  transfer of decrees were se. 227 and 229 the former corresponding  to s.  38 of the Indian Code of Civil Procedure and the  latter to  s.  39  of  that  Code.   Sub-section  (2)  of  s.   229 corresponds to s. 41. of the Indian Code of Civil Procedure. By the (Madhya Bbarat) Indian Civil Procedure Adaptation Act (Madhya  Bharat)  Act 70 of Samvat 2006 or 1949  the  Indian Code  was  adapted in Madhya Bharat (and this  adapted  Code will  here  inafter  be referred to an  the  Madhya   Bharat Code).   It    was  to come into force on January 23,  1950, i. e.15   days after its publication in the Gazette.  By  a. 3 the Indian Code was adapted, and it mutatis mutandis  came into  force in Madhya Bharat.  It was also provided  therein that  whatever and whenever amendments would be made in  the said  Indian Code they would be applicable to Madhya  Bharat with  necessary alterations.  By s. 4 of Madhya Bharat  Code above  mentioned the previous Codes in force in the  various States  comprising  Madhya Bharat were repealed and  it  was provided  inter alia that all decrees passed  and  judgments given in accordance with the repealed Code as well as  other acts  done thereunder would have the same force as  if  they were  issued  or  made by a competent  authority  under  the Madhya  Bharat Code.  Thus on January 23, 1950,  the  Indian Code  with  necessary amendments and  adaptations  was  made applicable to the State of Madhya Bharat but this was  under the  orders of the legislative authority of  Madhya  Bharat, which  could  only legislate for and in the  territories  of that  State.  As we have already said on January  26,  1950,

12

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 12 of 23  

the adaptation of Laws                             597 Order was promulgated under Art. 372 of the Constitution  of India by the President of India.  Under that Order  existing laws Were adapted as mentioned in the Schedule to the Order. Clause 27 of that Order provided that "Nothing in this Order shall  affect  the previous operation of, or  anything  duly done  or  suffered  under any existing  law  or  any  right, privilege, obligation or liability already acquired, accrued or  incurred under any such law, or any penalty,  forfeiture or  punishment  incurred in respect of any  offence  already committed  against  any  such law".  As  a  result  of  this adaptation,  certain changes were made in the  Indian  Code. But it did not affect any act already done or any  liability already  incurred.   Thus it left the operation  of  decrees previously   passed  unaffected.   On  June  5,  1950,   the President  promulgated  the adaptation of  Laws  (Amendment) Order, 1950, but gave it a retrospective effect, so that  it was  deemed  to have come into force on  January  26,  1950. Under the amended Adaptation order certain changes Were made in  the  Indian Code which will be discussed later  in  this judgment.   But  it did not affect the operation of  cl.  27 above   set  out,  Under  the  adaptation  of  Laws   (Third Amendment) Order of April 4, 1951, cl. 27 was renumbered  as el.  20.  The Indian Code was amended by the Code  of  Civil Procedure  (Amendment) Act, 195 1, (II of 195 1) which  came into  force on April 1, 1951.  By that Act, the Indian  Code was  extended  to  the  whole  of  India  excepting  certain territories mentioned in s. 2 which are not relevant for the purpose of this appeal.  Thus it became applicable to Madhya Bharat  which  was then a Part B State and  consequently  it became  operative in what at one time was the  Indian  State Section 20 of this Act provided for of Gwalior. repeals  and savings.  That section runs as follows:- 598                S.   20   (1)  "Repeals  and  Savings.    If,               immediately before the date on which the  said               Code  comes  into force in any Part  B  State,               corresponding  to  the  said  Code,  that  law               shallon that date stand repealed:               Provided that the repeal shall not affect-               (a)  the  previous  operation of  any  law  so               repealed  or  anything duty done  or  suffered               thereunder, or               (b)   any  right,  privilege,  obligation   or               liability accrued or incurred under any law so               repealed, or               (e)   any  investigation, legal proceeding  or               remedy in respect of any such right, privilege,               obligation,  liability, penalty forfeiture  or               punishment   as   aforesaid   and   any   such               investigation, legal proceeding or remedy  may               be instituted, continued or enforced, and  any               such penalty, forfeiture or punishment may  be               imposed as if this Act had not been passed.                (2)  Subject  to the provisions contained  in               subsection   (1)   notifications    publisbed,               declaration and rules made, places  appointed,               agreements  filed,  scales  prescribed,  forms               framed, appointments made and powers concerned               under any enactment hereby repealed shall,  so               far  as  they, are consistent  with  the  said               Code,  have  the same force and effect  as  if               they  had been respectively  published,  made,               appointed,   filed  prescribed,   framed   and

13

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 13 of 23  

             conferred  under  the  said Code  and  by  the               authority empowered thereby in such behalf.                                    599               (3)   In  every law or notification  passed-or               issued before the commencement of this Act  in               which  reference is made to or any Chapter  or               section  of  any  law  hereby  repealed,  such               reference  shall so far as may be  practicable               be  taken to be made to the said Code  or  its               corresponding Part, Order, section or rule." On  the  coming into force of Act II of 1951  aforesaid  the rights that were acquired or accrued under the decree passed previously remained unimpaired and unaffected by the  repeal and all rights and privileges acquired or accrued under  the decree  continued  as  before so  also  all  liabilities  or obligations  incurred thereunder.  And all such  rights  and privileges  were  enforceable  as if the Act  had  not  been passed.   Therefore  the decree of the Gwalior  Court  dated November  11,  1948 continued to be  enforceable  as  decree under the Madhya Bharat Code. As  we have said before we shall assume for the purposes  of this  appeal  that  the order of transfer by  the  Court  at Gwalior  was the one passed on September 14, 1951.  By  then by  the  operation  of Act II of 1951 there  was  one  Civil Procedure Code for what was Gwalior and U. P. and indeed for the whole of India. The  question  then is, was the order  dated  September  14, 1951,  transferring  the decree for execution to  the  Civil Judge,  Allahabad an effective order to which ss. 38 and  39 of  the  Indian  Code  applied  and  could  the  decree   so transferred be executed by the execution Court at  Allahabad ? It was contended on behalf of the appellant that it  could be executed as it was a decree which fell within ss. 38  and 39 of the Indian Code, which the Gwalior Court had the power to transfer and 600 which the Allahabad Court had under the law the authority to execute.  We think it is not so. The  main provisions for execution of decrees are  contained in  Part II "Execution" in the Indian Code and  minor  rules are contained in Order 21.  Of these provisions ss. 36 to 42 deal  with  Courts which can execute decrees,  can  transfer decrees  and  the  power of executing Courts  in  regard  to transferred  decrees.   The present ss. 43 to 45  deal  with execution’  of  decrees passed by Civil Courts in  place  to which  the Indian Code does not extend execution of  decrees passed  by  revenue  courts, by the  courts  in  the  United Kingdom  and other reciprocating territory and execution  of decrees in foreign territories.               Section 38 of the Indian Code provides that  a               decree  may  be executed by  the  Court  which               passed it or by the court to which it is  sent               for execution.  Court which passed a decree is               defined  in s. 37 and s. 39 provides  for  the               transfer of decrees for execution.  It reads -               39  (1) ’The court which passed a decree  may,               on  the application of the decree holder  send               it for execution to another Court". Section 40 of the Indian Code provides for the transfer of a decree  to  a  court in another State where  it  has  to  be executed  in  such manner as may be prescribed by  Rules  in force  in that state and s. 42 lays down the powers  of  the Court in executing transferred decree.  It provides that the power of the Court in executing decrees shall be the same as if  it  had been passed by itself.  These are  the  relevant

14

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 14 of 23  

provisions which deal with the transfer to and execution  of decrees  in other courts and to courts of another State  and powers  of such courts in execution and the procedure to  by followed by them. The    jurisdiction  of the Allahabad Court  to  execute  the decree sent to it by the Gwalior Court can be examined  from two  angles  : (1) Was the court at Gwalior  a  court  which could under s. 39 of the Indian Code transfer its decree  to the  Allahabad Court for execution; and (2) was  the  decree sent  for execution a decree which a court governed  by  the Indian  Code as was the Allahabad Court, such that it  could be executed by the transferee court. We are unable to see how the Gwalior Court could send  under s.  39 decrees which it had passed when it was not  governed by  the  Indian Code.  It is fallacious to  think  that  the court  at Gwalior governed by the Indian Code was  identical with  the court which was governed by another Code.  In  our opinion, the Gwalior Court which made the order of  transfer of  September 1951 when it was governed by the  Indian  Code was a different court from what it was at the time it passed a  decree when functioning under a different Code  of  Civil Procedure.   The Court which made the order of  transfer  in September,  1951  was thus not the court  which  passed  the decree within the meaning of s. 39. The  decrees  in  the sections  dealing  with  execution  of decrees  i.e. ss. 37 to 42 are decrees which were passed  by courts  governed by the Indian Civil Procedure Code  because those  sections relate to decrees passed in suit  under  the provisions  of that Code.  The preamble to the Indian  Civil Procedure  Code is "whereas it is expedient  to  consolidate and  amend the laws relating to the procedure of the  Courts of  Civil Judicature." Under s. 1 (3) as it exists  now  the Code  extends to the whole of India except  ’certain  Tribal Areas  etc.  Previous to the Amendment Act 11 of 1951  above referred  to,  s. 1 (3) of the Indian Civil  Procedure  Code reads as under:- 602               S.    1 (3) "This section and sections 155  to               158 extend to the whole of India except Part B               States;  the rest of the Code extends  to  the               whole  of India except Part B States  and  the               Scheduled Districts". Therefore  the Indian Code was not then applicable to  those States  which  became  Part  B States as  a  result  of  the Constitution  of  India.  " Decree" in the  Indian  Code  is defined  to  mean the formal expression of  an  adjudication which,   so  far  as  regards  the  Court   expressing   it, conclusively  determines  the  rights of  the  parties  with regard  to  all  or  any  matters  in  controversy  in   the suit......... It  means, therefore, that a decree which is to be  executed under  the  Indian Code by a transferee Court  is  a  decree passed  in  a  suit  i.e.,  in  civil  proceeding  which  is instituted  by the presentation of a plaint under s.  25  of the  Code.   Therefore ’the decree which is referred  to  in Part II dealing with execution i.e. ss. 37 to 42 in a decree which  is passed in a suit commenced in the manner  provided in  the  Indian  Code, is conducted and  decided  under  the provisions  of the Indian Code, and there is nothing in  Act 11  of  1951  above  referred  to  which  has  changed  that position. Reference  was made by counsel for the appellant  to  sub-s. (2)  of  s. 30 of Act 11 of 1951 but that section  does  not apply  to  judgments and decrees passed but applies  to  the other   matters  therein  mentioned   e.g.,   notifications,

15

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 15 of 23  

declarations,  rules  and  appointments  etc.   It  has   no reference  to decrees passed or Orders made under the  local Codes of Civil Procedure.  That section therefore is not  of any  assistance  to  the  appellant.   Whatever  rights   or privileges the appellant bad acquired or whatever rights  or privileges  bad accrued to him were continued and it  cannot be said that the decree passed under the Madhya Bharat  Code became a decree 603 under  the Indian Code by virtue of a 20 of Act 11 of  1951. On the other hand by cls. (b) and (c) of sub-s. (1) of  that section  the decree continued to be decree governed  by  the Madhya  Bharat  Code and executable under it.   The  Gwalior Court therefore had no power under as 38 and 39 to  transfer the  decree  of  November 18,  1948,  and  consequently  the Allahabad Court acquired no power to execute it. It  was  next contended that if the Court  at  Gwalior  that passed  the  decree had no power under as. 38 to 42  of  the Indian  Code  to transfer the decree for execution  and  the Court at Allahabad was not empowered to execute that  decree then the decree could be executed under the provisions of as 43 and 44 of the Indian Code.  Of course the decree was  not sought to be executed under either of these two  provisions. But  we shall examine these sections of the Indian  Code  as applicable to the Courts at Allahabad at the relevant  time. Prior to the Indian Independence (Adaptation of Central Acts and Ordinance) Order of 1948 promulgated on March 23,  1948, which will hereinafter be termed the Adaptation Order  1948, the relevant portion of s. 43 was as follows:-               Execution of decrees passed by British  Courts               or  in  places  to which this  part  does  not               extend or in foreign territory.               Any decree passed by a Civil Court established               in  any  part of British India  to  which  the               provisions relating to execution do not extend               or  by any Court established or  continued  by               the authority of the Central Government or the               Crown Representative in the territories of any               foreign Prince or State, may, if it cannot  be               executed within the jurisdiction of the  court               by which it passed.               604               executed in manner herein Provided within  the               jurisdiction of any court in British India" After  the Adaptation Order 1948 the provisions  essentially remained   the  same  and  there  was  only  a   change   in nomenclature.  Instead of British India the expression  ,the provinces  of  India" and in place of  "territories  of  any Foreign  Prince  or  State"  "in  any  Indian  State"   were substituted.    After   the  coming  into   force   of   the Constitution Adaptation of Laws Order of January 6. 1950 was promulgated.   There again the change in s. 43  was  nominal and  in  place of "Province of India" the word  "State"  was substituted.  Thus there was no change which is material for the present ’appeal till the Adaptation of Laws  (Amendment) Order dated June 5, 1950, which had retrospective effect  as from January 25, 1950 and s. 43 was amended as follows               "’Execution of decrees passed by Civil  Courts               in Part B States, in places to which this Part               does not extend or in foreign territory.               Any decree passed:               (a)   by a Civil Court in a Part B State, or               (b)   by  a Civil Court in any area  within  a               Part  C  State or Part B State  to  which  the               provisions   relating  to  execution  do   not

16

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 16 of 23  

             extend, or               (c)   by  a Court established or continued  by               the   authority  of  the  Central   Government               outside India,               may,  if  it  cannot be  executed  within  the               jurisdiction  of  the Court by which  it  ,was               passed,   be  executed  in  a  manner   herein               provided within the jurisdiction of any  court               in the States.               605               By the operation of Act 11 of 1951, s. 43 was               further amended and it then read as follows               Execution  of decrees passed by Civil,  Courts               in places to which this Cock does not extend.               Any   decree  passed  by  any   Civil   Court,               established in any part of India to which  the               provisions  of this Code do not extend, or  by               any  Court  established or  continued  by  the               authority  of the Central  Government  outside               India,  may, if it cannot be  executed  within               the jurisdiction of the Court by which it  was               passed,  be  executed  in  the  manner  herein               provided within the jurisdiction of any  Court               in   the  territories  to  which  this   Code,               extends". Thus after the Constitution came into force by virtue of the Adaptation Order, a decree which was passed by a Civil Court in a Part B State could be executed in the manner  provided, within the jurisdiction of any Court in what were the States of India i. e. Part A, B & C States. It  was submitted on behalf of the appellant that the  words in  s. 43 of the Code as adapted by the Adaptation Order  of June 5, 1950, "Any decree passed by a Civil Court in a  Part B  State"  must be read as "a Civil Court in what  became  a Part  B State".  We are unable to accept,  this  contention. This would mean that the Constitution is retrospective.  But it  has  been held by this Court that  the  Constitution  is prospective.   Madhya  Bharat, before  the  Constitution  of India i. e. before January 26, 1930, was not a Part B State. It  became one as a consequence of the Constitution.   As  a matter  of  fact  there were no Part B  States,  before  the Constitution.  Therefore a decree passed 606 before  the Constitution by a Civil Court in  Madhya  Bharat cannot be considered as a decree by a Civil Court in a  Part B State. After the Indian Code came into force in Part B States as  a result  of  Act 11 of 1951 under s. 43  only  those  decrees could  be  executed  which  were  passed  by  Civil   Courts established in Parts of India to which the provisions of the Civil  Procedure  Code "do not extend" or by  Courts  estab- lished  or  continued  by  the  authority  of  the   Central Government  outside India, and in none of  these  categories does  the  decree  passed by the  Gwalior  Court  after  the establishment  of Madhya Bharat fall.  It was not  a  decree passed  by a Court in a part of India to which the  Indian., Code  "does not extend".  Those areas were set out in  s.  1 (3) of the Indian Code.  Therefore, under the provisions  of s. 43 of the Indian Code of Civil Procedure the decree could not be executed. We   shall not take s. 44 of the Code:-               S.44  "Execution  of decrees passed by  Courts               of  Indian States.-The  Provincial  Government               may,  by notification in the Official  Gazette               declare  that  the  decrees of  any  Civil  or

17

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 17 of 23  

             Revenue  Courts in any Indian State not  being               Courts   established  or  continued   by   the               authority of the Central Government or of  the               Crown  Representative,  or any class  of  such               decrees, may be executed in the Province as if               they  had  been passed by  Courts  of  British               India. By   the  Adaptation  Order of 1948 in place  of  the  words "British  India" "that Province" were substituted.   By  the Adaptation  Order  of January 26 1950, the section  read  as follows:- 607 Execution of decrees passed by Courts of Part B States.  The State Government may by notification in the Official Gazette               declare  that  the  decrees of  any  Civil  or               Revenue  Courts  in any Part B State,  or  any               class of such decrees, may be executed in  the               State as if they had been passed by Courts  of               that State". This  section was again amended by the Adaptation  Order  of June  6,  1950, which gave it retrospective effect  as  from January 26, 1950.  It then read as follows:-               Execution  of decrees passed by Revenue  Court               Part  B  States.-The Government of  a  Part  A               State  or Part C State may by notification  in               the Official Gazette, declare that the  decree               of  any Revenue Courts in any Part B State  or               any  class of such decrees may be executed  in               the Part A State or Part C State, as the  case               may  be, as if they had been passed by  Courts               of that State".               Finally  after Act 11 of 1951 which came  into               force on April 1, 1951, s. 44 is as follows:-               Execution of decrees passed by Revenue  Courts               in places to which this Code does not  extend.               The  State Government may, by notification  in               the Official Gazette, declare that the decrees               of  any Revenue Court in any part of India  to               which the provisions of this Code do not  ext-               end  or  any  class of  such  decrees  may  be               executed  in  the State as if  they  had  been               passed by courts in that State". At  the  time when the decree was sought to be  executed  in the,  Execution  Court at Allahabad, s. 44 of the  Code  was what was 608 substituted  by Act 11 of 1951 and that certainly could  Dot be  availed of by the appellant as it bad no application  to decrees  of  Civil  Courts and the  argument  in  regard  to decrees of Part B States is the same as in the case of a. 43 of the Code which has been discussed above. It was next argued that in construing the words "the  decree of a civil court in a Part B State" we should have regard to the  fact that at the time s. 43 was amended in this  manner s.  44 was also amended in such a way that it was no  longer possible  for a State Government to issue a  notification-as it could have done but for such amendment-declaring that the decrees of civil courts in an Indian State might be executed in  the State as if they have been passed in the  courts  of that  State.  It is said that this took  away  the  whatever chance  a decree made by an Indian State had of  being  made executable  in  other parts of India.  So, it is  argued  we should interpret the words "the decree of a civil court in a Part  B State", to include decrees made by a civil court  in what  later  became Part B State at a time when it  was  an

18

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 18 of 23  

Indian  State.   It could ’not, it is urged, have  been  the intention of the legislature in making the amendment of June 3,  1950  to totally destroy this  chance  of  executability which was possible under the law as it stood before.  We  do not  think  this  is  a  relevant  consideration.   If   the legislature   bad   intended   to  save   this   chance   of executability under a possible future notification it  could have  easily  made the necessary provision.  It  has  to  be remembered  that  the  right  of  executability  which   had attached to a decree on the basis of a notification  already made  would continue after the date of amendment.  Only,  if the  law had not been changed as it was by the amendment  on June  3,  1950, there would have existed a chance  that  the decrees of courts of Indian  609 States  in  respect of which no notification had  been  made under  s. 44 could have become executable by a  notification made  in  future  thereunder.   The power  to  make  such  a notification in respect of decrees of civil courts in Indian States was however deliberately taken away and it is useless and  irrelevant to worry about the resultant loss of  chance of  executability  by a possible  future  notification  that might have existed under the old law. It  was  finally contended that by virtue of Art.  261,  the decree  passed  by the Gwalior Court  was  executable.   The first clause of Art. 261 provides for full faith and  credit to  be given throughout the territory of India  to  judicial proceedings  of the Union and of every State.  Clause  3  of Art. 261 was as follows:               "Final judgments or orders delivered or passed               by  Civil Courts in any part of the  territory               of   India  shall  be  capable  of   execution               anywhere  within that territory  according  to               law". The  first matter to be considered in regard to Art. 261  is that  the Constitution is prospective and not  retrospective and it applies to decrees which were passed after the coming into   force  of  the  Constitution  and  not  before   and, therefore,  neither  clause  1 nor clause  3  can  have  any application to the decree sought to be executed. In  our opinion, therefore, the decree of the Gwalior  Court sought to be executed was A, decree of a foreign court which did  not  change  its nationality  in  spite  of  subsequent constitutional  changes  or  amendments in  the  Code.   The Gwalior Court could not transfer the decree for execution to the Court at Allahabad under ss. 38 and 39 nor could 610 the Court of Allahabad execute the decree without      Such transfer.  The provisions of ss. 43 and 44 of the Code  also were not applicable in this case. For  these reasons the appeal fails, and is  dismissed  with costs. DAS  GUPTA,  J.-This  appeal  is  by  a  decreeholder  whose application   for   execution  of  the   decree   has   been unsuccessful.   The decree was passed on November 18,  1948, by  the  Court of the District Judge,  Gwalior,  in  Gwalior State.   It was ex parte, the defendants-the respondents  in the  present appeal-who are residents the United  Provinces, now Uttar Pradesh, not having appeared in the Gwalior Court. On August 9, 1949, the decree-holder applied to the  Gwalior Court for transferring the decree to the Court of the  Civil Judge,  Allahabad,  for execution.  On April 25,  1950,  the Gwalior Court passed an order for transfer of the decree for the  execution to the Civil Judge, First  Grade,  Allahabad. It needs to be mentioned that on the date when the suit  was

19

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 19 of 23  

instituted, i.e., May 15, 1947; the date on which the decree was  passed,  November  18,  1948; the  date  on  which  the application was made for transferring the decree, August  9, 1949;  as also the date April 25, 1950, when the  order  for transferring  the decree was made by the Gwalior Court,  the Code, of Civil Procedure which is in force in India did  not apply  to the Gwalior Court.  For, even though  the  Gwalior State had acceded to the Dominion of India by an  Instrument of  Accession by the under of the State made on  August  15, 1947,  arid after that the United State (Madhya  Bharat)  of which  Gwalior became a part by a covenant signed  in  April 1948, acceded to the Dominion of India on July 19, 1948,  by a  fresh Instrument of Accession and after the  Constitution of India came into force this United States (Madhya 611 Bharat)  became  part of the territory of  India  as  Madhya Bharat  being  a  Part B State, the  Indian  Code  of  Civil Procedure did not become applicable to the Courts in Gwalior till  after the enactment of Act 11 of 1951 which came  into force  on April 1, 1951.  From this date the Indian C de  of Civil  Procedure became applicable to the Courts of  Gwalior also. We  have already mentioned that On April 25, 1950, an  order for  transfer  of the decree had been made  by  the  Gwalior Court.  The further action which has to be taken under 0. 21 r.  6  of the Indian Code, of Civil Procedure by  the  court sending  a decree for execution was not however  taken  till September  14, 1951.  On that date an order was made by  the Gwalior  Court certifying that the amount of the decree  had "not  been paid or realised by execution" and ordering  that the  certificate  be sent to the Civil Judge’  First  Grade, Allahabad  under  O.  41 r. 6. This order  closed  with  the sentence  "a copy of this order along with copies of  decree passed  in  connection  with  the  execution  be   forwarded directly  to  the  court of the Civil  Judge,  First  Grade, Allahabad."  The application for execution was made  in  the Court  at the Civil Judge at Allahabad on October 16,  1951. To  this application the judgment-debtor  raised  objections under   s.  47  of  the  Code  of  Civil  Procedure.    This application  was ultimately heard by a single Judge  of  the High Court of Allahabad who dismissed the application  being of  opinion that the decree obtained by the appellant was  a nullity and on that ground in executable at Allahabad.  This view was upheld by the same High Court on appeal. Three questions have been raised in this appeal.  The  first is: whether vis-a-vis the Allahabad Court the decreed sought to be executed was a 612 foreign decree which the Allahabad Court rightly  considered to  be  a  nullity  and  on  that  account  inexecutable  in Allahabad Courts.  The second question raised before us  is whether, even assuming.- that this was not a foreign  decree the  Allahabad Court was a Court to which it could  be  sent for execution within the meaning of section 37 and 38 of the Indian  Code  of  Civil Procedure.  The  third  question  is whether  a. 43 or s. 44 of the Code of Civil Procedure  made the decree executable in the Allahabad Courts. It  is unnecessary in our judgment to investigate the  first question.  The objection raised on the nullity of the decree could be raised only in the Allahabad Court where the decree was  sought to be executed.  But before that question  would arise  the  Allahabad Court must have power to  execute  the decree-either  oil transfer of the decree to it under s.  38 or  under the provisions of s. 43 or s.44 of the Code.   For reasons  to be presently stated, we do not think that  there

20

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 20 of 23  

could be valid transfer of the decree to the Allahabad Court or  that it had any power to execute the decree under s.  43 or s.44. bat is why we think that, the question bow far  the decree was a nullity does not fall for our decision in  this case.   With other modes of enforcement of a foreign  decree this case has no concern. In  solving the problems raised by the second and the  third questions  it  is  necessary first to have an  idea  of  the scheme,  of  the Indian Code of Civil Procedure  as  regards what  courts in India can execute decrees.  We find in  Part II  of  the  Civil  Procedure  Code  which  relates  to  the execution of decrees, only three sections dealing with  this matter.   They are ss. 38, 43 and 44.  Sections 38  provides that  a  decree may be executed either by the  Court which passed it, or by the Court to which it is sent 613 for execution.  Section 43 as it stands at present  provides that:- "Any  decree  passed by any civil court established  in  any part  of India to which the provisions of this Code  do  not extend,  or  by any court established or  continued  by  the authority  of the Central Government outside India, may,  if it  cannot be executed within the jurisdiction of the  Court by  which  it was passed be executed in  the  manner  herein provided  within  the  jurisdiction  of  any  court  in  the territories to which this Code extends." We shall have later to  refer to the several changes which s. 43  has  undergone between  the time the decree was made and the  present  day. Section  44  provides  that "the State  Government  may,  by notification  in  the  Official Gazette,  declare  that  the decrees  of any revenue court in any part of India to  which the  provisions of this Code do not extend, or any class  of such  decrees, may be executed in the State as if  they  had been passed by courts in that State." This section has  also undergone  some change during the relevant period.  To  this change we shall later refer. Let  us first examine whether the Allahabad Court where  the decree-holder is seeking to execute the decree is a court by which the decree can be executed under s. 38.  Obviously, it is  not the Court which passed the decree.  The  controversy is  whether it is a Court to which the decree was  sent  for execution.    The  provisions  for  sending  a  decree   for execution  to  another Court by the Court which  passed  the decree  are  contained  in  s.  39  of  the  Code  of  Civil procedure.   According to the decree-holder the  decree  was sent  by  the Gwalior Court to the Allahabad  Court  by  its order  dated  September  14,  1951.   The  Judgment-debtors’ contention on the other hand is that the only 114 order  of  transfer  was that of April  25,  1950.   If  the judgment-debtors’ contention is correct it would follow that there was no order for transfer under s. 39, as on that date the  Gwalior  Court was not governed by the Indian  Code  of Civil  Procedure.   Learned Counsel  for  the  decree-holder appellant has contended that the directions that were  given on  September  14,  1951, really amounted to  an  order  for transfer under s. 39.  According to the learned Counsel  the Indian  Courts should ignore the order of April 25 1950,  as non-existent,  so that it was open to the Gwalior  Court  to make a fresh order in the matter on September 14, 1951, when it  was  governed  by the Indian Code  of  Civil  Procedure. Therefore, it is argued, though it might be true to say that if  the  order of April 25, 1950, had been  made  under  the Indian  Code  of  Civil  Procedure,  what  was  ordered   on September 14 1951; was merely a direction under O 21 r. 6 of

21

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 21 of 23  

the Civil Procedure Code for the ministerial carrying out of the  order  under  s.  39 already made,  that  is,  not  the position  here  as the first order of April  25,  1950,  was admittedly  not  under the Indian Code of  Civil  Procedure. The  matter is by no means free from difficulty; but let  us assume that this order of September 14, 1951, was the  order by which the Gwalior Court then governed by the Indian  Code of Civil Procedure, purported to transfer the decree to  the Allahabad Court for execution.  The question still  remains. Was  it an order within the meaning of a. 39 of the Code  of Civil  Procedure?   The answer to this question  depends  on weather the Gwalior Court which was functioning on September 14, 1951, was "the Court which passed the decree." Under  the  Indian  Code of Civil  Procedure  the  right  to execute  a  decree  arises  as soon as  a  decree  is  made. Immediately  on  the making of the decree  the  Court  which passed the decree has jurisdiction 615 to execute it and at that very point of time that very Court has  the  jurisdiction  to  transfer  it  to  another  court governed   by  the  Indian  Code  of  Civil  procedure   for execution.   It is reasonable to think that in  speaking  of "’courts" in the phrase, "courts which passed the decree" s. 37, as well as s. 39 contemplate only courts governed by the Indian  Code  of  Civil  Procedure.  For,  it  is  with  the procedure  of such courts only that this Code is  concerned. On  the date the present decree was made the Indian Code  of Civil  Procedure  did not apply to the  Gwalior  Court.   In other  words, it was not a ""court" for the purposes of  the Indian Code of Civil Procedure.  Later on, it is true,  from April  1951,  the  Indian Code  of  Civil  procedure  became applicable to the Gwalior Court.  It will be proper, in  our opinion,  to  think  that the court  when  governed  by  the Gwalior Code of Civil Procedure had a distinct identity from the  court  at Gwalior after it came to be governed  by  the Indian  Code of Civil Procedure.  The Court which  made  the order  of transfer in September 14, 1961 was  therefore  not ",the  Court which passed the decree" within the meaning  of s.  39.  It is clear therefore that the Allahabad Court  had no power to execute the decree under s. 38 of the Civil Pro- cedure  Code as there was no valid transfer to it  from  the "court which passed the decree." It  remains  to consider whether s. 43 or s. 44 are  of  any assistance to the decree-holder.  Coming to s. 44 first,  it has to be mentioned that upto March 23, 1948 the section ran thus :-"The Provincial Government may by notification in the Official  Gazette declare that the decree’ of any  Civil  or Revenue  Courts  in  any  Indian  State,  not  being  courts established  or  continued by the authority of  the  Central Government  or of the Crown Representative, or any class  of such decrees, may be executed in the Province as if they had been 616 by  courts  of British India." The  section  was  materially amended  on  June  3, 1960 with  retrospective  effect  from January 26, 1950.  On amendment the section ran thus  :-"The Government  of  a  Part A State or Part  B  States  may,  by notification  in  the  Official  Gazette  declare  that  the decrees  of  any Revenue Court in any Part B  State  or  any class of such decrees may be executed in the Part A State or Part C State, as the case may be, as if they had been passed by  courts, of that State." It is obvious that  the  decree- holder  can get no benefit from s. 44 after this  amendment. If  however  there  had been a notification  by  the  U.  P. Government under s. 44 as it originally stood in respect  of

22

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 22 of 23  

decrees of  Civil Courts in Gwalior State the present decree would  have been executable in Allahabad Courts  on  January 26,  1950,  and  that  right  of  executability  would  have continued upto the present time.  There was however no  such notification.   It  is clear therefore that s. 44 is  of  no assistance to the decreeholder. It  is  equally clear that s. 43 is also  no  assistance  to him.   Section 43 as it originally stood was in these  words :-               "’Any   decree  passed  by  any  civil   court               established  in any part of British  India  to               which. the provisions relating to execution do               not  extend,  or by any court  established  or               continued  by  the authority  of  the  Central               Government or the Crown Representative in  the               territories  of  any foreign prince  or  State               outside  India, may if it cannot  be  executed               within the, jurisdiction of the Court by which               it  was  passed,  be executed  in  the  manner               herein provided within the jurisdiction of any               court in British India." The  decree of Gwalior Court did not fall within this.   The section was amended after March 23, 617 1948,  and for the words "in any part of British India"  the words  "in  any  area within the provinces  of  India"  were substituted.   This  change  could not  ’however  bring  the decree  of  a Gwalior State within the  section.   The  next change,  which  it is necessary to mention was made  by  the amendment  of June 3, 1950, with retrospective  effect  from January 26, 1950.  On this amendment s. 43 ran thus ,               "Any decree passed,               (a)   by a Civil Court in a part B State or               (b)   by  a civil court in any area  within  a               part  A  State or part C State  to  which  the               provisions   relating  to  execution  do   not               extend, or               (c)   by  a court established or continued  by               the  authority of the Central  Government  out               side  India,  may, if it  cannot  be  executed               within the jurisdiction of the Court by  which               it  was  passed,  be  executed  in  a   manner               provided within the jurisdiction of any  court               in the States." It  has been strenuously contended on behalf of the  decree- holder  that  the  decree passed by  the  Gwalior  Court  on November 18, 1948, is a decree passed by a civil court in  a Part B State.  It is true that Gwalior became Part of a Part B  State from January 26, 1950, and civil courts in  Gwalior were from that date civil courts in any Part B State.  Every decree  made by a court in Gwalior after January  26,  1958, would  get  the benefit then of s. 43 as  amended.   We  are unable to see however how the decree passed by a civil court in Gwalior before that date could get any such benefit.  The agreement of the appellant’s council that a decree passed by a civil court in Gwalior before Gwalior become included in a Part B State is a decree passed by a 618 civil court in a Part B State really asks us to construe the words  ",by a civil court in a part B State" as by a  "civil court in an Indian State which has later become included  in a  Part B State." For such a construction we cannot see  any justification. It  was urged by the learned Counsel that it could not  have been  the intention of the legislature to make  any  radical

23

http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 23 of 23  

departure  in  the  scheme of making decrees  of  courts  of Indian  States executable in as courts in Indian  provinces. It  is pointed out that under s. 44 as it  originally  stood such a decree would have become executable in the courts  of the   provinces  if  the  Provincial  Government  made   the necessary  notification under s. 44.  The position was  safe when  there was such a notification.  But, even  when  there was no such notification there was always the probability of such   a   notification  being   made.    That   probability disappeared with the amendment of s. 44 on June 3, 1950.  It is  reasonable  to think, argues the learned  Counsel,  that when  at  the  same time s. 44 was thus  being  amended  the legislature  used the words: "any decree passed by  a  civil court  in  a Part B State’,’ its intention  was  to  include within  those  words "decrees made by a civil  court  in  an Indian  State  which later become a Part B  State,"  In  our opinion,  the words actually used by the legislature do  not admit   of   such  an  interpretation.   If   it   was   the legislature’s  intention to preserve for the decrees of  the Indian  States  this chance of executability it  could  have easily  made  the  necessary  provision  by  using  suitable phraseology either in s. 43 or s. 44. On  a  proper construction of the words that  were  actually used, viz., "any decree passed by a civil court in a part  B State",  we  see  no reason to think  that  the  legislature intended  to use to mean ,,decrees made by a civil court  in an Indian State, which later became a Part B State"  Section 43 619 therefore as it stood after the amendment of June 3, 1951 is of no assistance to the decree-holder. Section  43  was further amended by Act 11 of 1951  and  the words  as they stand at present have already been  set  out. The appellant rightly does not contend that s. 43 as it  now stands applies to the present decrees. Our conclusion therefore is that the Allahabad Court had  no power  to  execute the decree either under  sections  38  or under  ss.  43  or  44  of  the  Code  of  Civil  Procedure. Therefore, even if the decree was not a foreign decree,  the decree-holder’s   application  for  execution  was   rightly dismissed. The appeal is accordingly dismissed with costs. Appeal dismissed.