2023 (4) TMI 1065 - SC - Indian Laws

Execution of decree - Period of limitation of 12 years - execution application was filed after 12 years from the date of the decree - whether the date on which the compromise decree dated 26.04.1960 was entered into in Civil First Appeal No.11/1959 or the date when the final decree was passed by the Civil Court in Suit No. 30 A/87 i.e. 31.03.1994, will be considered for establishing the period of limitation under the Limitation Act, 1963 for instituting execution proceedings? HELD THAT - The facts of the instant appeal reveal that the cause of action to execute the compromise decree arose when the premises were taken away from the possession of the Decree holders (Respondents Nos.1 to 4). The dispossession of the Respondents was confirmed vide final decree passed by the Civil Court in Suit No.30 A/87 when rights in favor of third person, namely, Mr. Malik Ram, were finally determined. Hence in our considered view, the cause of action would arise only on 31.03.1994. The prerequisite for enforceability of clause 6 is the dispossession of the defendants, de facto or de jure. The limitation period would commence only with the decree becoming enforceable and thus is capable of being executed. In the instant case, the relevant date from which the period of limitation will begin only with effect from 31.03.1994. The period of twelve years is computable from the said date, hence the Execution Application made on 17.07.1995 is within Limitation. It is also noted that during the pendency of this appeal, the opportunity for compromise was given to the parties. But, no compromise could be arrived at - the Courts below rightly held that the Execution Application is within Limitation. Appeal dismissed.

Summary

Issues involved:
The issue involves determining the starting point of limitation under the Limitation Act, 1963 for instituting execution proceedings based on the date of the compromise decree or the date of the final decree passed by the Civil Court.

Details of the Judgment:

Issue 1: Starting point of limitation for execution proceedings
The Supreme Court analyzed Article 136 of the Limitation Act, 1963, which prescribes the period within which execution proceedings must be initiated. The Court referred to previous cases like Deep Chand v. Mohan Lal and Akkayanaicker v. A.A.A. Kotchadainaidu to emphasize that a decree becomes enforceable from its date or on a future date specified in the decree. The Court highlighted the need for a rational approach to prevent decrees from becoming futile due to technicalities.

Issue 2: Interpretation of compromise decree
The Court examined the compromise decree dated 26.04.1960, which specified actions to be taken if the Decree Holders were to lose possession of the land. The Court concluded that the cause of action to execute the compromise decree arose when the Decree Holders were dispossessed, as confirmed by the final decree passed by the Civil Court. The Court determined that the period of limitation for execution proceedings commenced on 31.03.1994, when the rights of the Decree Holders were conclusively determined.

Conclusion:
The Supreme Court held that the Execution Application filed on 17.07.1995 was within the limitation period as it was initiated from the date of 31.03.1994. Despite offering an opportunity for compromise during the appeal, no agreement was reached. The Court dismissed the appeal, affirming that the Execution Application was within the limitation period, and noted the Decree holders' statement regarding the failed settlement.