RANI LALITHA RAJYA LAXMI Vs. CHOTANAGPUR BANKING ASSOCIATION

JUDGEMENT

(1.) The present proceeding arises out of an objection filed by Rani Lalita Rajya Laxmi (hereinafter referred to as "the Rani") in an execution proceeding in respect of a property commonly known as "Padma Palace", which admittedly at one time belonged to her husband, Raja Bahadur Kamakhya Narain Singh (hereinafter referred to as "the Raja"), against whom the Chotanagpur Banking Association Ltd. (now in liquidation) (hereinafter referred to simply as "the bank") has obtained some decrees.

(2.) The relevant facts are these : During the period 1944 to 1946, the bank made advances to the tune of several lakhs of rupees to the Raja on different securities. On November 3, 1962, in the course of settlement of the list of debtors under Section 45D of the Banking Regulation Act, 1949 (hereinafter referred to as "the Act"), in Company Act Case No. 1 of 1958, the bank obtained decrees for about Rs. 15,00,000 as principal, besides costs, against the Raja. By an order of this court dated the 29th March, 1966, the decree was transmitted to the court of the subordinate judge at Hazaribagh for execution and, accordingly, the official liquidator put the decree in execution in Execution Case No. 7 of 1967, in the Court of the Subordinate Judge, Hazaribagh. At the time the Raja was alive. One of the properties sought to be proceeded against in the said execution case is an immovable property, commonly known as "Padma Palace", situated near the town of Hazaribagh. This court exercising the powers under Section 45C(3) of the Act, by its order dated April 10, 1970, got the above execution case transferred to itself, which has been registered in this court as Miscellaneous Judicial Case No. 2 of 1970.

(3.) On the death of the Raja on May 6, 1970, his heirs and legal representatives, including the Rani, were added as parties in the execution proceeding of this court by order dated August 14, 1970. The Rani has filed an application in this court purporting to be under Section 47 and Order 21, Rule 58 of the Code of Civil Procedure, claiming the said Padma Palace as her own property on the basis of a registered deed of gift dated September 28, 1947 (exhibit 2) executed by the Raja, challenging its liability under the decree in question.