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Basavantappa and ors. Vs. Dasappa and ors.

Basavantappa and ors. vs Dasappa and ors.

Type Court Judgment Court Karnataka Decided Jun 13, 1952
~5 min read
https://sooperkanoon.com/case/370994

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Citation
Court
Karnataka High Court
Judge
Decided On
Case Number
Second Appeal No. 534 of 1948-49
Subject
Property;Limitation

Case Summary

AI-generated summary - not the official court judgment text.

- COMPANIES ACT, 1956 [C.A. No. 1/1956]. Sections 529 & 529A & State Financial Corporation Act 1951, Section 29: [S.R. Bannurmath & A.N. Venugopala Gowda, JJ] Proceedings under Taking over of assets of the industrial concern in realisation of dues Sale of assets - Applicability of provisions of Section 529 and ...

Key legal issue
Property;Limitation
Acts & sections
Limitation Act, 1908 - Schedule - Articles 138, 142 and 144; Code of Civil Procedure (CPC), 1908 - Order 21, Rule 95

Parties & Advocates

Appellant / Petitioner

Basavantappa and ors.

Advocate Nittoor Srinivasa Rao, Adv.

Respondent

Dasappa and ors.

Advocate K.N. Srinivasan, Adv.

Legal References

Acts
Limitation Act, 1908 - Schedule - Articles 138, 142 and 144; Code of Civil Procedure (CPC), 1908 - Order 21, Rule 95
Reported In
AIR1953Kant35; AIR1953Mys35; ILR1953KAR51; (1954)32MysLJ57

Excerpt

- companies act, 1956 [c.a. no. 1/1956]. sections 529 & 529a & state financial corporation act 1951, section 29: [s.r. bannurmath & a.n. venugopala gowda, jj] proceedings under taking over of assets of the industrial concern in realisation of dues sale of assets - applicability of provisions of section 529 and 529a held, the corporation cannot exercise its rights if the assets of the industrial concern, has already vested in the company court or if the official liquidator had been put in charge of the assets of the industrial concern. if the winding up proceedings are not set in motion, then, there is no legal impediment to the corporation to take action under section 29 of the s.f.c. act, 1951 and permission of company court is not required to be obtained. in the absence of commencement of winding up proceedings, the provision of section 529 and 529a of the companies act cannot be made applicable. the action of the corporation under section 29 of the s.f.c. act is lawful. further, the corporation took over only the assets and not the management. the money realised by effecting sale under sub-section (2) of section 29, cannot be apportioned or ordered to be paid to the workmen of the industrial concern, when the industrial concern is not under the winding up proceedings, in terms of the provisions under the companies act. the corporation cannot be held liable either jointly or severally to pay the closure compensation or other claims of the workmen. the industry is liable to pay the wages of the lockout period and the closure compensation to the workmen. -- state financial corporations act, 1951 [63/1951]. section 29; power of the corporation under taking over the assets of the industrial concern to realise the dues -justification of the action of the corporation held, the corporation is empowered to effect recovery of its dues, by resorting to the measures, both under section 29 and 31 of the act. since the industry which was under a liability to the..........absolute.2. the point for consideration is whether article 138 is applicable to a case where the decree-holder-purchaser has filed a suit to obtain possession within 12 years after obtaining symbolical possession on filing an application under order 21, rule 95. it is to be observed that symbolical possession obtained under execution of a decree to which the person in possession is a party is as effectual as actual possession. as observed in -- '12 mys lj 191:'it stops the previous adverse possession from running and serves to give a fresh starting period for purposes of limitation.'article 138 applies only to a case where such delivery has not been obtained, as otherwise it is open to a judgment-debtor to dispossess the decree-holder-purchaser who has obtained delivery 12 years from the date the sale is made absolute and no remedy can be obtained against him as a suit filed by the decree-holder-purchaser subsequently, after 12 years after the date on which the sale was made absolute has to fail.there was some deliverance of opinion between the courts of allahabad and bombay and other courts on this question of limitation, but the controversy was set at rest by the privy council decision in -- 'sri radha krishna chanderji v. earn bahadur', 22 cal wn 330 (pc), in which it was held that symbolical possession availed to dispossess the defendants sufficiently, because they were parties to the proceedings in which it was ordered and given. the point is made clear by the commentary under article 138, rustomji law of limitation:'it would seem that in view of the privy council judgment in -- 'sri radha krishna chanderji v. ram bahadur', 22 cal wn 330 (pc), considerable doubt is thrown on the correctness of the bombay full bench decision -- 'mahadev v. janu namji', 33 bom 373 (fb), and the allahabad full bench in -- jang bahadur singh v. hanumant sitigh', 43 all 520 (fb), which followed the bombay full bench ruling. the bombay full bench decision in 36 bom 373 was.....

Full Judgment

1. The suit filed by the plaintiffs is lor partition of the plaint schedule properties and for being put in possession of such share as they are entitled to. The plaintiffs purchased the properties in execution of a decree obtained by them against a joint family, of which the defendants are members, on the foot of a hypothecation deed. The decree-holders-purchasers were put in possession of the properties on 2-1-1934. To what extent this decree was binding on the other members oi' the family was considered in 2 suits filed by some of them and it is sufficient to state that it is not disputed in this case that the share of the appellants is not affected by the sale in favour of the plaintiffs.

What is however contended is that the suit filed on 2-1-1946 which is filed just within 12 years after delivery of possession, but beyond 12 years after the sale was made absolute, is barred by time as under Art. 138, Limitation Act, time for a suit for possession of properties purchased in execution of a decree when the judgment-debtor was in possession at the date of the sale is 12 years from the date when the sale becomes absolute.

2. The point for consideration is whether Article 138 is applicable to a case where the decree-holder-purchaser has filed a suit to obtain possession within 12 years after obtaining symbolical possession on filing an application under Order 21, Rule 95. It is to be observed that symbolical possession obtained under execution of a decree to which the person in possession is a party is as effectual as actual possession. As observed in -- '12 Mys LJ 191:

'It stops the previous adverse possession from running and serves to give a fresh starting period for purposes of limitation.'

Article 138 applies only to a case where such delivery has not been obtained, as otherwise it is open to a judgment-debtor to dispossess the decree-holder-purchaser who has obtained delivery 12 years from the date the sale is made absolute and no remedy can be obtained against him as a suit filed by the decree-holder-purchaser subsequently, after 12 years after the date on which the sale was made absolute has to fail.

There was some deliverance of opinion between the Courts of Allahabad and Bombay and other Courts on this question of limitation, but the controversy was set at rest by the Privy Council decision in -- 'Sri Radha Krishna Chanderji v. Earn Bahadur', 22 Cal WN 330 (PC), in which it was held that symbolical possession availed to dispossess the defendants sufficiently, because they were parties to the proceedings in which it was ordered and given. The point is made clear by the commentary under Article 138, Rustomji Law of Limitation:

'It would seem that in view of the Privy Council judgment in -- 'Sri Radha Krishna Chanderji v. Ram Bahadur', 22 Cal WN 330 (PC), considerable doubt is thrown on the correctness of the Bombay Full Bench decision -- 'Mahadev v. Janu Namji', 33 Bom 373 (FB), and the Allahabad Full Bench in -- Jang Bahadur Singh v. Hanumant Sitigh', 43 All 520 (FB), which followed the Bombay Full Bench ruling. The Bombay Full Bench decision in 36 Bom 373 was cited in argument before the Privy Council in -- 'Radha Krishna's case', 22 Cal WN 330 (PC), but their Lordships followed -- 'Juggobimdhu v. Ram Chunder', 5 Ca! 584 (FB), in preference to the Bombay ruling, and repelled the argument that symbolical possession would not avail against the defendants, but that only actual dispossession would interrupt their adverse possession. On the contrary, the Privy Council definitely held that symbolical possession was sufficient in law to save the bar of adverse possession, i.e. to interrupt adverse possession where the person setting up adverse possession was a party to the execution proceedings in which the symbolical possession was given.

However that may be, it is quite clear that the rule laid down by the Full Bench in Bombay and Allahabad, (viz. that when the judgment-debtor himself is in actual possession, mere symbolical delivery of possession to the execution-purchaser would not suffice to interrupt the judgment-debtor's possession) has obviously no application to cases where the property in question is not of a nature of which actual possession could possibly be obtained by the purchaser, as in the case of a house. Thus, where it is 'zernindari' property and is let out to tenants for cultivation, or is an undivided share in joint property, formal or symbolical possession would give the auction-purchaser a fresh start to limitation.'

I agree with respect with these observations. In this case the decree-holder purchased the appellants undivided share in the joint family property; and the delivery of possession obtained by him is sufficient to give a fresh start of limitation, and the suit filed within 12 years from the date of delivery of possession is in time. There :s no substance in the contention urged on behalf of the appellants that the suit is barred under Article 138, Limitation Act.The appeal fails and is dismissed with costs.

3. Appeal dismissed.

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