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NALINI DASI ALIAS NABANALINI DASSI versus KRITISH CHANDRA HAZRA AND OTHERS

Citation: [1966] 1 S.C.R. 929 · Decided: 23-09-1965 · Supreme Court of India · Bench: P.B. GAJENDRAGADKAR · Disposal: Dismissed

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Judgment (excerpt)

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NALINI DASI ALIAS NABANALINI DASSI 
v. 
KRITISH CHANDRA HAZRA AND OTHERS 
September 23, 1965 
[P. B. GAJENDRAGADKAR, C.J., K. N. WANCHOO, 
M. H!DAYATULLAH, J. c. SHAH AND s. M. SJKRI, JJ.] 
Bengal Agriculturists Debtors Act (7 of 1936), s, 37A-Property of 
debtor in the hands of bona fide purchaser for valu..-IJ can be recovered 
by debtor. 
The mortgagee of the property in dispute had obtained a mortgage 
decree and in execution purchased it. In 1942, he sold the property to 
the appellant. 
After the introduction of s. 37-A into the Bengal Agricul-
tural Debtors Act, 1936, by the Amendment Act of 1942, the respondents 
who were the owners of th·o property, applied under the section, lo the 
Debt Settlement Board, for getting back possession of the property. They 
succeeded in '1heir application and obtained possession, but their posses-
sion was disturbed by the appellant. Therefore, the respondent• field the 
suit to remove the· cloud on their title and to obtain possession in case 
it was found that they were not in possession. The suit was decreed by 
the trial court, but the appellate court allowed the appeal. 
The High 
Court, on further appeal, restored the decree of the trial court. 
In his appeal to thio Court, the 
appellant 
contended 
that, 
(i) 
the Board had no jurisdiction in the matter as the decree in the mortgage 
suit was for more than Rs. 5,000, and (ii) section 37-A did not apply to 
a bona fide purchaser for value from the anction purchaser. 
HELD : (i) The contention as to jurisdiction on the ground of value 
should be rejected as the point was not taken in the trial court, for, if 
it had been raised, the respondents would have been able to show that, 
even if the debt was over Rs. 5,000, the previous sanction of the Collector 
had been taken by the Board before it dealt with the matter as permitted 
by the proviso to r. 144 framed under the Act. [932 FJ 
(ii) Reading the wide language used in s. 37A(8) with s. 37A(1)(c:), 
it is clear ~hat once the sale is set aside, even alienees from the decree-
holder would be liable to be ejected and would be covered by the words 
"any person" used in the latter part of s. 37A(8), unless they were afienecs 
of the four kinds mentioned ins. 37A(1){c). [936 El 
When an award in favour of the debtor was made under s. 38A(S) 
and where a copy of the award was presented to the Civil Court or Certi· 
-0 
ficate-officer at whose order the property was sold, s. 37-A(S) imperatively 
enjoins on the Civil Court or the Certificate Officer to set aside the sale. 
It follows that where a sale is set aside, whoever may have purchased the 
property in the sale-whether the decree-holder himself or somebody else 
-will have to give up possession, for the right of the person who had pur-
chased the property, to remain in possession, would only exist so long as 
the sale subsists. 
On the same reasoning, if the auction-purchaser, whc-
H 
ther he be the decree-holder or somebody else. has parted with the pro-
perty subsequently in favour of any person that person would be equally 
liable to ejectment, for his right to remain in possession only flows from 
the sale which i9' ordered to be set aside. 
Further, the 
word "decree 
holder" has been given an inclusive definition and so, it cannot be ftaid 
l.BSDp, C.l./65--16 
930 
SUPREME 
COURT 
REPORTS 
[1966] l S.C.R. 
that it is confined only to the 
decrce-h0Ider-auctio~-purch:1s~r. 
A11:10, 
ooder s. 37-A{l){c) only four kinds of lransfers, including b:ma (tde 
transfers for valuable considera1ion (excepting a morigage) before 2Uih 
December 1939, arc excep;ed, and so an application could be n1adc under 
the section even whe:·e there 1,1.ras an alienation of any kind by the de;:ree-
holder, so long as 1he aliena1ion was afler 201h December 1939. 
There-
fore, rhere is no doub1 thot s. 37A(8) inlends that rhe sale should be 
ICI aside whoever may be auction-purchaser, and it also intends that after 
oclling aside the sale the properly should be delivered back to the deolor, 
whoever may be in possessioo thereof al lhe time of the delivery liack, 
except in 
1he case of an under-riyal under certain conditions. 1934 D-H; 
935 A-B, D; 936 A-CJ 
CIVIL APPELLATE JURISDICTION: 
Civil Appeal No. 901 of 
1963. 
Appeal by special leave from the judgment and decree dated 
December 22, 1959, of the Calcutta High Court in Appeal from 
Appellate Decree No. I 039 of 1954. 
Niren De, 
Additional Solicitor-General

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