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Issues: (i) whether a separate suit challenging sale of property in execution, on the ground that the decree authorised only sale of mortgage rights and not the properties themselves, was barred by section 47 of the Code of Civil Procedure; (ii) whether the plaint could be treated as an execution application under section 47 and, if so, which article of the Indian Limitation Act governed limitation; and (iii) whether objection to the District Court entertaining such an application could be raised for the first time in second appeal.
Issue (i): whether a separate suit challenging sale of property in execution, on the ground that the decree authorised only sale of mortgage rights and not the properties themselves, was barred by section 47 of the Code of Civil Procedure.
Analysis: A challenge that the execution sale went beyond the terms of the decree is a matter arising between the parties to the decree and is one that must be raised in execution. The proper remedy is an application under section 47 and not a separate suit. The fact that the sale was said to be in excess of the decree did not take the dispute outside the scope of execution proceedings.
Conclusion: The separate suit was barred by section 47 of the Code of Civil Procedure.
Issue (ii): whether the plaint could be treated as an execution application under section 47 and, if so, which article of the Indian Limitation Act governed limitation.
Analysis: Section 47 permits the court to treat a suit as a proceeding under that section, subject to limitation and jurisdiction. Where the sale is void because it was not authorised by the decree, the application is not one to set aside a sale within article 166, and article 165 also did not apply to a judgment-debtor seeking redelivery after erroneous execution. The proper provision was article 181, and limitation ran from dispossession, not merely from the date of sale. On that basis, the plaint was not barred by limitation when filed.
Conclusion: The plaint could be treated as an execution application under section 47 and was within time under article 181 of the Indian Limitation Act.
Issue (iii): whether objection to the District Court entertaining such an application could be raised for the first time in second appeal.
Analysis: The objection that the court lacked competence to entertain execution proceedings of this nature was one that could be waived. As it had not been taken in the written statement, it was not available at a later stage. The court therefore proceeded to treat the plaint as an execution application in the interests of justice.
Conclusion: The objection was waived and could not be entertained at the appellate stage.
Final Conclusion: The decree below was modified only to the extent necessary to treat the plaint as an execution application and grant possession of the relevant shares, but the appeal itself failed.
Ratio Decidendi: A sale in execution that exceeds the terms of the decree is a matter for section 47 proceedings, and where such sale is void, limitation is governed by article 181 from the date of dispossession rather than by the short periods applicable to applications to set aside sales.