MAHENDRA
KUMAR & ANR V. STATE OF MADHYA PRADESH & ORS [1987] INSC 148 (4 May
1987)
DUTT,
M.M. (J) DUTT, M.M. (J) ERADI, V. BALAKRISHNA (J) CITATION: 1987 AIR 1395 1987
SCR (3) 155 1987 SCC (3) 265 JT 1987 (2) 524 1987 SCALE (1)1257
ACT:
Indian
Treasure--Trove Act, 1878---Ss. 8, 9, 13 and 14--Suit-Filing of--Determination
of ownership of place where treasure found-When arises--Filing of
counter-claim----Period of limitation.
Civil
Procedure Code, 1908--Order VIII, Rule 6A(1)--Filing of counter--Claim after
filing of written statement--Whether maintainable.
HEADNOTE:
The
predecessor-in-interest of the appellants, namely, Babulal, purchased a house
in the year 1947 from the sons of one Mannulal. The appellants and the
respondents No. 6 to 8 are the sons of the other three brothers of Mannulal. In
the year 1976 the respondents Nos. 2 to 5 started reconstructing or renovating
their house and in the course of digging the plinth a treasure consisting of
gold and silver ornaments and currency notes was found. They intimated the
discovery of the treasure to the Collector, who issued a notification under s.
5 of the Indian Treasure Trove Act, 1878. Respondents Nos. 2 to 5, the
appellants and the respondents Nos. 6 to 8 flied claims before the Collector.
The Collector held that the respondents Nos. 2 to 5, the finders of the treasure,
are the owners of the house from where the treasure was found and permitted
them under s. 8 to institute a suit to establish their right before February
22, 1979.
The
respondents Nos. 2 to 5 instituted a suit for declaration of their title to the
treasure without making the other claimants before the Collector parties to the
suit. On an application filed under Order I, Rule 10 of the Code of Civil
Procedure by the appellants and respondents Nos. 6 to 8, the District Judge
made them defendants in the suit.
Thereafter,
they filed their written statement, denying the claim 01' the respondents Nos.
2 to 5 to the treasure and claimed the title thereof to them.
After
the filing of the written statement, the appellants flied a counter-claim
claiming title to the treasure.
The
respondents Nos. 2 to 5 156 filed an application praying that the counter-claim
should be dismissed contending that it was barred by limitation as prescribed
in s. 14 of the Act and that it was also not maintainable under Order VIII,
Rule 6A(1) of the Code 01' Civil Procedure. The District Judge dismissed the
counter- claim holding that it was barred by s. 14 of the Act. In the Revision,
the High Court upheld the order of the District Judge and further held that the
counter-claim having been filed after the filing of the written statement, was
not maintainable under Order VIII, Rule 6A(1) of the Code of Civil Procedure.
Allowing
the Appeal to this Court,
HELD:
1. The order of the District Judge and the Judgment of the High Court are set
aside. The District Judge is directed to proceed with the hearing of the suit
and the counter-claim in accordance with law. [164F-G]
2.
Under the scheme of the Indian Treasure Trove Act, 1878 two kinds of suits can
be filed at two stages, namely, one under s. 8 and the other under s. 14.
Section 8 provides that if the Collector has reason to believe that the treasure
was hidden by any person appearing before the Collector within one hundred
years or by some other person under whom such person claims, the Collector
shall adjourn the hearing for such period as he deems sufficient to allow the
claimant to institute a suit to establish his right to the treasure. [161G-H;
162A]
3.
On the other hand, the question of filing a suit under s. 14 will not arise
unless the Collector makes a declaration under s. 9 that the treasure is
ownerless. Such a declaration under s. 9 will be made by the Collector if he
sees no reason to believe that the treasure was not hidden within one hundred
years or if no suit is instituted under s. 8 within the period for which the
hearing is adjourned by the Collector or if the plaintiff's claim is rejected.
[162B]
4.
If no such contingencies as mentioned in s. 9 take place, the Collector will
have no jurisdiction to make a declaration that the treasure is ownerless. If,
however, any of such contingencies happens and the Collector makes a
declaration under s. 9 and two or more persons have appeared before the
Collector each claiming the ownership of the place where such treasure was
found or the finder of the treasure disputes the right of any person who has so
appeared and claimed, the Collector shall make an order under s. 13 staying the
proceedings with a view to the matter being enquired into by a Civil Court. 157
5.
The object of an enquiry as to the ownership of the place by the Civil Court is
necessary inasmuch as s. 10 of the Act provides that when a declaration has
been made in respect of any treasure under s. 9, such treasure shall either be
delivered to the finder or be divided between him and the owner of the place in
which it has been round. [162F]
6.
A suit under s. 14 relates to the establishment of the ownership of the place
where the treasure was found for the purpose of division of the treasure
between the finder and the owner of the place and that such a suit has to be
filed within one month from the date of such order to obtain a decree declaring
his right after the Collector had declared the treasure to be ownerless under
s. 9 after making a claim before the Collector under s. 13. The words
"such order" in s. 14, refer to the order passed by the Collector
under s. 13. [163B]
7.
Section 8 and s. 13 and s. 14 contemplate two different situations. While under
s. 8 the suit has to be filed within the period during which the hearing stands
adjourned, the suit under s. 14 has to be filed within one month of the order
of the Collector under s. 13 of the Act. [163C-D]
8.
To hold that suits under s. 8 and s. 13 are both governed by the limitation
prescribed by s. 14, will be to do violence to the provisions of the Act and
the clear intention of the Legislature as indicated in the provisions.
[163E]
9.
In the instant case, as the respondents Nos. 2 to 5 have instituted the suit
within the period during which the hearing before the Collector stood adjourned
under s. 8, the question of making a declaration by the Collector under s. 9 of
the Act does not arise and, consequently, there is no scope for filing any suit
under s. 14 of the Act. Thus s. 14 has no manner of application to a suit filed
under s. 8 of the Act. [163G-H; 164A]
10.
Rule 6A(1) of Order VIII of Code of Civil Procedure does not bar the filing of
a counter-claim by the defendant after he had filed the written statement. What
is laid down under Rule 6A(1) is that a counter-claim can be filed, provided
the cause of action had accrued to the defendant before the defendant had
delivered his defence or before the time limited for delivering his defence has
expired, whether such counter-claim is in the nature of the claim for damages
or not. [164B-C]
11.
The High Court has misread and misunderstood the provision of Rule 6A(1) in
holding that as the appellants had filed the counter- 158 claim after the
filing of the written statement, the counter-claim was not maintainable. Under
Article 113 of the Limitation Act, 1963, the period limitation of three years
from the date the right to sue accrues, has been provided for any suit for
which no period of limitation is provided elsewhere in the Schedule. in the
instant case, the counter-claim has been filed by the appellants within three
years and as the cause of action for the counter-claim had arisen before the
filing of the written statement, the counter-claim was, therefore quite
maintainable. [164C-E]
Civil
Appellate Jurisdiction: Civil Appeal No. 4053 of 1985.
From
the Judgment and Order dated 25.1.1985 of the Madhya Pradesh High Court in
Civil Revision No. 378 of 1984.
U.R.
Lalit, S.S. Khanduja, Y.P. Dhingra and Mrs. Madhu Kapoor for the Appellants.
T.C. Sharma and S.K. Gambhir for the Respondents. The Judgment of the Court was
delivered by DUTT, J. This appeal by special leave is directed against the
judgment of the Madhya Pradesh High Court, whereby the High Court affirmed the
order of the District Judge, Bhopal, dismissing the counter-claim by the appellants
on the ground that it was barred by section 14 of the Indian Treasure-Trove
Act, 1878, hereinafter referred to as 'the Act'. The High Court also held that
the counter-claim was not maintainable under sub-rule (1) of Rule 6A of Order
VIII of the Code of Civil Procedure, as the same was filed by the appellants
after the filing of the written statement.
The
predecessor-in-interest of the appellants, namely, Babulal, purchased a house
in Bhopal in the year 1947 from the sons of one Mannulal. The appellants and
the respondents Nos. 6 to 8 are the sons of the other three brothers of
Mannulal. In the year 1976, the respondents Nos. 2 to 5, who were the heirs and
legal representatives of the said Babulal, started reconstructing or renovating
the house and for that purpose they commenced digging the plinth. In the course
of digging, a treasure consisting of gold and silver ornaments and also Government
currency notes amounting to Rs.2,900 was found. The respondents Nos. 2 to 5
intimated the discovery of the treasure to the Collector of the District, who
issued a notification under section 5 of 159 the Act requiting all persons
claiming the treasure,. or any part thereof, to appear personally or by agent
before him on the day and place mentioned in the notification. Pursuant to the
said notification, the respondents Nos. 2 to 5, and the appellants and the
respondents Nos. 6 to 8 filed claims before the Collector. It has been held by
the Collector that the respondents Nos. 2 to 5, the finders of the treasure,
are the owners of the house from where the treasure was found during excavation
undertaken by them with a view to starting reconstruction, and he permitted
them under section 8 of the Act to institute a suit in the Civil Court to
establish their right before February 22, 1979.
The
respondents Nos. 2 to 5 instituted a suit being Civil Suit No.1-A of 1979, in
the Court of the District Judge, Bhopal, for a declaration of their title to
the treasure found by them. The respondents Nos. 2 to 5 did not, however, make
the other claimants before the Collector including the appellants, parties to
the suit. The appellants and the respondents Nos. 6 to 8 made an application
for their addition as parties to the suit under the provision of Order I, Rule
10 of the Code of Civil Procedure. The learned District Judge allowed the said
application and, accordingly, they were made defendants in the suit.
Thereafter,
the appellants and the respondents Nos. 6 to 8 filed their written statement,
inter alia, denying the claim of the respondents Nos. 2 to 5 to the treasure.
They claimed title to the treasure.
After
the filing of the written statement, the appellants filed a counter-claim
claiming title to the treasure.
It
is not necessary for us to state the basis of the claims of the parties to the
treasure. The respondents Nos. 2 to 5 filed an application praying that the
counter-claim should be dismissed contending that it was barred by limitation
as prescribed under section 14 of the Act and that it was also not maintainable
under Order VIII, Rule 6A(1) of the Code of Civil Procedure. The learned
District Judge came to the finding that the counter-claim was barred by section
14 of the Act and, in that view of the matter, dismissed the counter-claim.
Being aggrieved by the said order of the learned District Judge, the appellants
and the said respondents Nos. 6 to 8 moved the High Court in revision against
the same. The High Court upheld the order of the learned District Judge that
the counterclaim was barred by limitation as prescribed by section 14 of the
Act. The High Court further held that the counter-claim having been filed after
the filing of the written statement, it was not maintainable under Order VIII,
Rule 6A(1) of the Code of Civil Procedure.
Hence
this appeal by special leave. 160 At this stage, it is necessary to refer to
some of the provisions of the Act. Section 4 of the Act provides, inter alia,
for the giving of notice by the finder of treasure to the Collector containing
the details of the treasure. The treasure may be deposited in the nearest
Government Treasury or the finder may give the Collector such security as the
Collector thinks fit to produce the treasure at such time and place, as he may,
from time to time, require. Under section 5, the Collector shall, after making
such enquiry, if any, as he thinks fit, issue a notification requiting the
claimants to the treasure to appear before him on a day and at a place
mentioned in the notification, such day not being earlier than four days or
later than six months, after the date of the publication of such notification.
Section 6 provides that any person having claimed any fight to such treasure or
any part thereof, as owner of the place in which it was found or otherwise, and
not appearing as required by the notification issued under section 5, shall
forfeit such right. Sections 7, 8, 9, 13 and 14 which are relevant for our
purpose are extracted below:- "S. 7 On the day notified under section 5,
the Collector shall cause the treasure to be produced before him, and shall
enquire as to and determine (a) the person by whom, the place in which, and the
circumstances under which, such treasure was found; and (b) as far as is
possible, the person by whom, and the circumstances under which, such treasure
was hidden.
S.8.
If, upon an enquiry made under section 7, the Collector sees reason to believe
that the treasure was hidden within one hundred years before the date of the
finding, by a person appearing as required by the said notification and
claiming such treasure, or by some other person under whom such person claims,
the Collector shall make an order adjourning the hearing of the case for such
period as he deems sufficient, to allow of a suit being instituted in the Civil
Court by the claimant, to establish his right.
S.9.
If upon such enquiry the Collector sees no reason to believe that the treasure
was so hidden; or If, where a period is fixed under section 8, no suit is 161
instituted as aforesaid within such period to the knowledge of the Collector;
or if such suit is instituted within such period, and the plaintiff's claim is
finally rejected; the Collector may declare the treasure to be ownerless.
Any
person aggrieved by a declaration made under this section may appeal against
the same within two months from the date thereof to the Chief Controlling
Revenue authority.
Subject
to such appeal, every such declaration shall be final and conclusive."
"S. 13. When a declaration has been made as aforesaid in respect of any
treasure, and two or more persons have appeared as aforesaid and each of them
claimed as owner of the place where such treasure was found, or the right of
any person who has so appeared and claimed is disputed by the finder of such
treasure, the Collector shall retain such treasure and shall make an order
staying his proceedings with a view to the matter being enquired into and
determined by a Civil Court.
S.
14. Any person who has so appeared and claimed may, within one month from the
date of such order, institute a suit in the Civil Court to obtain a decree
declaring his right and in every such suit the finder of the treasure and all
persons disputing such claim before the Collector shall be made
defendants." Under the scheme of the Act, two kinds of suits can be filed
at two stages, namely, one under section 8 and the other under section 14 of
the Act. Section 8 provides that if the Collector has reason to believe that
the treasure was hidden by any person appearing before the Collector within one
hundred years or by some other person under whom such person claims, the
Collector shall adjourn the hearing for such period as he deems sufficient to
allow the claimant to institute a suit to establish his right to the treasure.
So under section 8, the suit has to be filed by the claimant within the period
for which the hearing 162 of the case is adjourned for the establishment of his
right to the treasure.
On
the other hand, the question of filing a suit under section 14 will not arise
unless the Collector makes a declaration under section 9 that the treasure is
ownerless.
Such
a declaration under section 9 will be made by the Collector if he sees no
reason to believe that the treasure was not hidden within one hundred years or
if no suit is instituted under section 8 within the period for which the
hearing adjourned by the Collector or if the plaintiffs claim is rejected. An
appeal lies against a declaration by the Collector to the Chief Controlling
Revenue Authority and subject to the appeal, such declaration shall be final
and conclusive. If, however, no such contingencies as mentioned in section 9
take place, the Collector will have no jurisdiction to make a declaration that
the treasure is owner- less.
If
however, any of such contingencies happens and the Collector makes a
declaration under section 9 and two or more persons have appeared before the
Collector each claiming the ownership of the place where such treasure was
found or the finder of the treasure disputes the fight of any person who has so
appeared and claimed, the Collector shall make an order under section 13
staying the proceedings with a view to the matter being enquired into by a
Civil Court.
It
may be noticed here that the claim made under section 13 by the rival claimants
relate to the ownership of the place and not to the ownership of the treasure
for, it has been already noticed that the declaration by the Collector under
section 9 that the treasure is ownerless shall, subject to the appeal to the
Chief Controlling Revenue Authority, be final and conclusive. The object of an
enquiry as to the ownership of the place by the Civil Court is necessary is as
much as section 10 of the Act provides inter alia that when a declaration has
been made in respect of any treasure under section 9, such treasure shall
either be delivered to the finder or be divided between him and the owner of
the place in which it has been found.
Thus
it is manifestly clear that if no declaration is made under section 9, there is
no question of filing a suit under section 14 of the Act. While a suit under
section 8 relates to the establishment of the right of the claimant to the
treasure, a suit under section 14 relates to the establishment of the ownership
of the place where the treasure was found for the purpose of division of the
treasure between the finder and the owner of the place.
Section
14 lays down that such a suit has to be filed within one 163 month from the
date of such order to obtain a decree declaring his right.
It
is manifestly clear from section 14 that the suit referred to therein is a suit
to be filed by a person for the establishment of his right after the Collector
had declared the treasure to be ownerless under section 9 after making a claim
before the Collector under section 13. The words "such order" in
section 14, in our view, refer to the order passed by the Collector under
section 13. Further, the placement of section 14 after section 13 of the Act
points only to the filing of the suit by a person after the Collector had made
an order staying the proceedings under section
13.
The suit contemplated by section 8 of the Act has to be filed by the claimant
within the period for which the hearing of the case is adjourned. Such period for
which the hearing under section 8 is adjourned by the Collector, may be more
than a month. It is absurd to think that although section 8 provides that the
suit has to be filed within the period for which the hearing is adjourned, yet
it has to be filed within one month under section 14. Section 8 and sections 13
and 14 contemplate two different situations.
While
under section 8 the suit has to be filed within the period during which the
hearing stands adourned, the suit under section 14 has to be filed within one
month of the order of the Collector under section 13 of the Act. To hold that
suits under section 8 and section 13, are both governed by.the limitation
prescribed by section 14, will be to do violence to the provisions of the Act
and the clear intention of the Legislature as indicated in the provisions.
Another
aspect in this regard may be considered. It may be argued that as the Collector
had not allowed the appellants and the respondents Nos. 6 to 8 to file a
counter- claim or a suit, the suit was not maintainable. In our opinion, the
question of filing a counter-claim arises after a suit is filed by the claimant
under section 8. It may be that there is no substantial difference between a
counter- claim and a suit, but nonetheless a defendant cannot be prevented from
filing a counter-claim under the Code of Civil Procedure.
In
the instant case, as the respondents Nos. 2 to 5 have instituted the suit
within the period during which the hearing before the Collector stands
adjourned under section 8, the question of making a declaration by the
Collector under section 9 of the Act does not arise and, consequently, there is
no scope for filing any suit under section 14 of the Act for the establishment
of the right to ownership of the place where the treasure was found by the
respondents Nos. 2 to 5. Thus 164 section 14 has no manner of application to a
suit filed under section 8 of the Act.
The
next point that remains to be considered is whether Rule 6A(1) of Order VIII of
the Code of Civil Procedure bars the filing of a counter-claim after the filing
of a written statement. This point need not detain us long, for Rule 6A(1) does
not, on the face of it, bar the filing of a counter-claim by the defendant
after he had filed the writ- ten statement. What is laid down under Rule 6A(1)
is that a counter-claim can be filed, provided the cause of action had accrued
to the defendant before the defendant had delivered his defence or before the
time limited for delivering his defence has expired, whether such counterclaim
is in the nature of a claim for damages or not. The High Court, in our opinion,
has misread and misunderstood the provision of Rule 6A(1) in holding that as
the appellants had filed the counter-claim after the filing, of the written
statement, the counter-claim was not maintainable. The finding of the High
Court does not get any support from Rule 6A(1) of the Code of Civil Procedure.
As the cause of action for the counter- claim had arisen before the filing of
the written statement, the counter-claim was, therefore, quite maintainable.
Under Article 113 of the Limitation Act, 1963, the period of limitation of
three years from the date the right to sue accrues, has been provided for any
suit for which no period of limitation is provided elsewhere in the Schedule.
It is not disputed that a counter-claim, which is treated as a suit under
section 3(2)(b) of the Limitation Act has been filed by the appellants within
three years from the date of accrual to them of the fight to sue. The learned
District Judge and the High Court were wrong in dismissing the counter-claim.
For
the reasons aforesaid, the appeal is allowed. The order of the learned District
Judge and the judgment of the High Court are set aside. The learned District
Judge is directed to proceed with the hearing of the suit and the counter-claim
in accordance with law. The appellants shall pay court fee on the
counter-claim, if not already paid, within such time as may be fixed by the
learned District Judge.
A.P.J.
Appeal allowed.
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