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ACKNOWLEDGEMENT
Recently introduced amendments in the Code of Civil Procedure have
brought about far reaching changes in the procedural law. Understanding
these changes in their right perspective and context is a must Jor every
Judicial officer, especially those who have just entered the judicial service.
Realizing this paramount need of newly appointed Judicial Officers,
Hon'ble (Dr.) Justice B.S. Chauhan has very kindly penned down
authoritative comments on the Provisions of the Code of Civil Procedure
with reference to the Amendment Acts, 1999 & 2002, explaining the
changes in a very lucid and Simple manner and in their right perspective.
J take pride in writing this now of acknowledgement for the kindness
that has been showered upon us by His Lordship in the form of the words
of wisdom in these pages for Judicial officers whe are at the threshold of
their career, Earlier, when His Lordship came here to deliver a talk on the
subject, “Recent changes in the Code of Civil Procedure”, His Lordship
had been kind enough to bring with him a write-up on the subject. This
write-up was published by the Institute in the form of a smail book, which
was received very well by the officers, and there isa great demand for the
book from the Judicial Officers. His Lordship has been kind enough to
provide us thoroughly revised and updated text, which we are publishing
with great pleasure for the benefit of judges of the subordinate judiciary,
We bow down to His Lordship's authoritative treatment of the subject
that is par excellence and atknowledge an enormous debt of gratitude for
ALLAH RAHAM
DIRECTORComments on
CODE OF CIVIL PROCEDURE-WITH
REFERENCE TO AMENDMENT ACTS-
1999 & 2002
Dr. Justice B.S. Chauhan
As it is evident from its name, it mainly lays down the procedure to be
adopted in civil courts, and its principles may be applicable in other courts,
like writ courts, and Tribunals to the extent the enactments establishing the
Tribunals provide for it. It provides for a fair procedure for redressal of
disputes. The other party may know what is the dispute about, what defence
it can take, and how both the partics may proceed to prove their respective
cases. Some of its provisions are substantive in nature and not procedural at
all, like Sections 96, 100, 114 and 115 providing for a right of appeal,
review and revision. The other provisions are generally procedural in
nature. The purpose of the Code is to provide a litigant a fair trial in
accordance with the accepted principles of natural justice. The Code is
mainly divided into two parts, namely, Sections and Orders. While the
main principles are contained in the Scctions, the detailed Procedures with
regard to the matters dealt with by the Sections have been Specified in the
Orders. Section 122 of the Code empowers the High Court to amend the
Rules, ic., the procedure laid down in the Orders and every High Court had
amended the procedure from time to time making the amendments in the
said Orders.
The Civil Procedure Code, 1908 (hereinafter referred to as Code) is a
codification of the principles of natural justice. Natural justice means ‘justice
to be done naturally’ which is adopted naturally by the habits of every
individual, It does not mean godly-justice or justice of nature. It simply
means an inbuilt-habit of a person to do justice. For example, if a child of
1.1/2 years breaks the saucer, the mother of the child may slap him being
furious, but at the time of slapping, she would repeatedly ask him why he
has broken the saucer, though she knows that the child has not started
speaking, As these principles are inbuilt-habit of everyone to ask others for
furnishing the explanation of anything done by them, the same are known
as ‘principles of natural justice’. In Eden Garden God did not punish Adam
cu]
er2 CPC. Reference to Amendment Acts—1999 & 2002
without giving him opportunity to show cause. The first reported case of
principles of natural justice in Dr. Bentely’s case, Le., R Vs. University of
Cambridge, (1723) 1 STR 757, wherein reference of the incident of Eden
Garden was made.
‘The two words are repeated everyday in the courts- ‘justice’ and ‘law’.
Justice is a illusion as the meaning and definition of ‘justice’ varies from
person to person and party to party. Party feels having got justice only and
only if it succeeds before the court, though it may not have a justifiable
claim. (Vide Delhi Administration Vs. Gurudeep Singh Uban, AIR 2000
SC 3737).
Law is a very wide term and has been defined in Article 13 (3) (a) of
the Constitution of India by an inclusive definition, iLe., it includes any
ordinance, order, bye-laws, rule, regulation, notification, customs or usage
having the force of law in the territory of India.
Law is a scheme of social contro! as distinct from self control, The
sovereign State considers and determines how much personal liberty is best
and how much social control is best in the interest ‘of the State for the
of its social interest. Therefore, law is an expression of the will of
the sovereign State which has to be enforced by the executive as well as the
courts of law. Law in fact is an instrument enacted by the Parliament or
State Legislature in exercise of power under Articles 245 and 246 of the
Constitution of India and also includes the subordinate legislature like rules
and regulations. Customs and usages lc. are also law if not violative of the
fundamental rights conferred by Part ITT of the Constitution of India. Law
does not include the principles of natural justice though it may be
mandatory to follow the same, Law determines the legal rights of the
individuals and it contains provisions either to be enforced, applied or
restraining from doing certain acts. Law is accompanied by the sanction of
the State that it has to be enforced/obeyed. Thus, law generally means State
made law. (Vide A.K. Gopalan Ys. State of Madras, AIR 1950 SC 27;
Provincial Transport Services Vs. State Industrial Court, Nagpur & Ors.,
AIR 1963 SC 114;’Raj Kumar Narsing Pratap Singh Deo Vs. State of
Orissa & Ant., AIR 1964 SC 1793; and The Chairman, Board of Mining
Examination and Chief Inspector of Miners & Ant. Vs, Ramjec, AIR 1977
SC 965. Justice is administered in courts, keeping in mind the law
applicable in the facts and cireumstances of the case. It is not persuaded by
MhCPC. Reference to Amendment Acts—1999 4 2002 3
concept of equity, (Vide Madamanchi Ramappa é& Anr. Vs. Muthaluru
Bojjappa, AIR 1963 SC 1633).
Court has a right to decide a case, that includes the right to decide it
wrongly also, otherwise there could have been no Provision for appeal,
review or revision, Case requires to be decided at the earliest according to
conscious and best ability of the Judge and assistance rendered by the bar.
For paucity of time it would not be possible for us to deal with every
Provision in the Code. Thus, we will discuss the scope and application of
the provisions which we have to deal with every day in the Court,
Section 9- provides for bar of jurisdiction of civil court if the Statute
provides for an alternative forum. For example, a Suit for permanent
injunction is barred for a licensee by virtue of the provisions of Sections 14
and 42 of the Specific Reliefs Act. Motor Vehicles Act, 1988 and Land
Acquisition Act, 1894 are complete Code providing for a forum of
tedressal of any grievance. Therefore, the jurisdiction of the civil court may
be barred.
In Firm Seth Radha Kishan Vs. Administrator, Municipal Committee,
Ludhiana, AIR 1963 SC 1547, the Hon'ble Apex Court held that in a case
where jurisdiction of civil court has expressly been barred, a Suit
should not be entertained even if it is impliedly barred under Section 9 of
the Code, but a Suit in the civil court “will always lic to question the order
of a Tribunal created by a Statute, even if its order is, expressly or by
necessary implication, made final if the said Tribunal abused its power or
does not act under the Act but in violation of its provisions,
A Constitution Bench of the Hon'ble Supreme Court in Firm of
Ilury Subbayya Chetty & Sons Vs. State of Andhra Pradesh, AIR 1964
SC 322, placing reliance upon the judgments of the Privy Council in
Secretary of State Vs. Mask & Co., AIR 1940 PC 105; and Raleigh
Investment Co. Lid. Vs, The Governor General in Council, AIR 1947 PC
78, beld as under:-
moeteee there is a general presumption that
there must be a remedy in the ordinary civil
Court to a citizen claiming that an amount had
been recovered from him illegally and that
such a remedy can be held to be barred only4 CP.C. Reference to Amendment Actr—1999 & 2002
on very clear and unmistakable indication to
the contrary. The exclusion of the jurisdiction
of a civil court to entertain civil cause will not
be assumed unless the relevant Statute
contains an express provision to that effect
or leads to a necessary and inevitable
a
The Court further held that if the jurisdiction has been conferred
upon a particular Authority/Tribunal, entertaining a civil Suit would make
the proceedings before the appropriate authority illegal and without
jurisdiction. ‘The Court further held that as the provisions of Section 18-
'A of the Sales Tax Act expressly excludes the jurisdiction of the civil
court, hence the court had no jurisdiction to entertain such a Suit.
‘Another Constitution Bench of the Hon'ble Supreme Court in Ram
Swarup & Ors, Vs. Shikar Chand & Anr., AIR 1966 SC 893, held that
the jurisdiction of civil courts to deal with civil causes can be excluded
by the legislature by Special Act which may deal with special subject
in but the statutory provision must expressly provide for such
exclusion or must necessarily and impliedly lead to that inference.
However, the said bar would not be relevant if the plea raised before the
civil court goes to the root of the matter and would, if upheld, lead to the
conclusion that the impugned order is a nullity. While deciding the said
case, the Court placed reliance upon large number of judgments
including the judgment in The Secretary of State for India in Council Vs.
Roy Jatindra Nath Chowdhury & Anr., AIR 1924 PC 175.
Yet another Constitution Bench of the Hon'ble Supreme Court in
Dhulabhai & Anr, Vs. State of Madhya Pradesh & Anr., AIR 1969 SC
78, held that exelusion of jurisdiction of the civil court by express provision
may not be a complete bar to entertain a Suit if party satisfies the civil
court that the Statutory Tribunal has not acted in conformity with the
fundamental principles of judicial procedure. More so, the Statutory
Tribunal must be competent to provide all the remedies normally
associated with the actions in civil courts, which are prescribed by the said
Statute or not. More so, the exclusion of jurisdiction of the civil court is not
readily to be inferred unless the aforesaid conditions are fulfilled.CAG Reference ta Amendment Acts—1999 & 2002 5
In Sardara Singh Vs. Sardara Singh, (1990) 4 SCC 90, the Hon'ble
Supreme Court held that civil court's jurisdiction is available wherever the
act or action of a statutory authority is found to be without jurisdiction in
spite of the fact that statute includes the jurisdiction of the civil court and the
Suit is maintainable,
In DR. Chawla & Ors, Vs. Municipal Corporation of Dethi,
(1993) 3 SCC 162, the Supreme Court held that where statutory
enactments only create rights or liabilities without Providing forums for
remedies, any person having a grievance that he had been wronged or his
right is being affected, can approach the ordinary civil court, but in case a
Special Forum is provided for enforcement of such right or for protection
or enforcement of a liability without any authority in law, the ouster of the
civil court's jurisdiction can be upheld on the finding that the rights and
liabilities in question have been created by the Act without touching the
existing Common Law rights and the remedy provided therein is adequate
and complete. But where adequate redressal machinery is not provided
under the Statutory Forum, the civil court can still examine the
Correctness of the order passed under the Statute.
In Pavitter Singh & Ors. Vs. Niranjan Lal Malhotra, JT 2001 (8) SC
641, the Apex Court held that Section 46 of the Administration of Evacuee
Property Act, 1950 bars the jurisdiction of civil court in certain cases. The
Court held that in such an eventuality, civil court cannot entertain and try a
Suit as its jurisdiction has expressly been barred and the only remedy in
such cases, if Any person is aggrieved by the order passed under the Act in
fespect of those evicted, is to resort to writ jurisdiction of the Writ Court,
Similar view has been reiterated by the Honble Supreme Court while
dealing with the provisions of the Motor Vehicles Act, 1939 in Shri Chand
Vs. Government of U.P. & Ors., AIR 1986 SC 242; and Anwar Vs. First
Addl. District Judge, Bulandshahar & Ors, AIR 1986 SC 1785, observing
that in most of the matters Pertaining to the Motor Vehicles Act, the
jurisdiction of the civil court is impliedly barred as the matter can be
adjudicated upon by the State ‘Transport Appellate Tribunal only.
In Sankarnarayanan Poti Vs. K. Sreedevi & Ors., (1998) 3 SCC
751, the Hon'ble Supreme Count observed as under--
“It is obvious that in all types of civil
disputes, civil courts have inherent
E_ reto CAC Reference 10 Amendment Actr=1999 i 2002
jurisdiction as per Section 9 of the Code of
Civil Procedure unless a part of that
jurisdiction is carved out from such
jurisdiction, expressly or by necessary
implication, by any statutory provision and
conferred on any other Tribunal or
authority,”
Similar view has been reiterated in Shri Panch Nagar Parakh,
Mandsaur Vs. Purushottam Das, AIR 1999 SC 3071.
Exclusion of jurisdiction of the civil court is not to be readily inferred.
‘Onus lies on the party seeking ouster of civil court's jurisdiction, and the
issue is to be determined primarily on the averments made in the plaint.
(Vide Ramesh Chand Ardawatiya Vs. Anil Panjwani, AIR 2003 SC 2508;
Sahebgouda Vs. Ogeppa, AIR 2003 SC 2743; and Union of India Vs.
Karan Chandra Thapar & Bros. (Coal Sales) Lid., (2004) 3 SCC 504).
Waiver, acquiescence or consent can neither confer on nor ouster the
jurisdiction of the court, However, the court can refuse to entertain a suit if
it is satisfied that the relief sought cannot be granted by the court. (Vide
Vithalbhai (P) Ltd., Vs. Union Bank of India, (2005) 4 SCC 315).
In P.A. Ahammed Ibrahim Vs. Food Corporation of India, AIR
1999 SC 3033, the Hon'ble Supreme Court held that the applications under
the provisions of various Statutes cannot be treated as Suits or claims
unless such possibility is specifically provided for under those particular
‘Statutes.
In Bhanu Construction Co. (P) Ltd. Vs. Andhra Bank, Hyderabad,
AIR 2001 SC 477, the Hon'ble Supreme Court considered the provisions
of Recovery of Debts (due to Banks and Financial Institutions) Act, 1953
and held that after the commencement of provisions of the said Act came
into force, the Suit could not be instituted as conferring the jurisdiction
upon the Tribunal under the Act would take away the jurisdiction of the
civil court.
In Vannattankandy Ibrayi Vs. Kunhabduula Hajee, (2001) 1 SCC
564, the Hon'ble Supreme Court considered the provisions of the Kerala
Building & Lease Control Act, 1965, which barred the jurisdiction of civil
court for recovery of premises on various grounds by the landlord before
eeeCPC. Reference to Amendment Acts—1999 & 2002 7
the Authority prescribed under the Act and the Suit was not maintainable,
The Court held that where the building stood washed off because of
natural calamity, possession of the remaining land may be recovered
before the Civil Court, The Court held that under such circumstances,
civil court may have jurisdiction, but had the building been there, its
jurisdiction was barred by Section 9 of the Code because it ceased to be a
building and remained land and in such a situation, only civil court was
Competent to entertain and try the Suit.
In Shri Ram & Anr. Vs. First Addl. District Judge & Ors., AIR
2001 SC 1250, the Apex Court held that in tenancy matters, generally
revenue court has the jurisdiction, but in case a Suit is filed for cancellation
of a void document, Section 9 of the Code does not impliedly bar such a
Suit because the document has been obtained by fraud or impersonation
as in such a case the mere declaration of title is required and the document,
being void, is merely to be ignored for giving relief for declaration and
Possession.
In Ghulam Qadir Vs. Special Tribunal & Ors. (2002) 1 SCC 33,
the Hon'ble Supreme Court held that in case the title is to be established,
the remedy of civil court is available and in such case, Section 9 of the
Code would not bar the civil Suit and would ask the authority only to
avail the remedy under the Provisions of J & K State Evacuees
(Administration of Property) Act, 1949,
In Mis Pearlite Liners Pvt. Ltd. Vs. Manorma Sirsi, 2004 AIR SCW
273, the Apex Court held that as contract of service (Private) cannot be
enforced in court, the Suit for declaration/permanent injunction that
termination was bad, would not be entertained, (Order 7 Rule 11 C.P.c.
‘was also considered),
A party is bound either by provisions of the Constitution, statutory
Provisions or any rule or under the terms of the contract which is not
against the public policy. In case Parties under their own agreement
expressly agree that their dispute shall be tried by only one of several
forums available to them then the pamy can only file the suit in that Court
alone to which they had agreed (Vide Shriram City Union Finance
Corporation Lid. Vs, Rama Mishra, AIR 2002 SC 2402),
In Mardia Chemicals Lid. & Ors. Vs. Union of India & Ors., (2004) 4
SCC 311, the Hon'ble Apex Coust examined the scope of Section 9 C.P.C.
Caen8 CPC. Reference to Amendment Acts—1999 & 2002
in context of the cases under the provisions of Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest
Act, 2002 and held that jurisdiction of the civil courts is undoubtedly barred
in general, but it can be invoked to a very limited extent, precisely, to the
extent permissible in cases of English mortgages, that is, for example
where the action of the secured creditor is alleged to be fraudulent or his
claim so absurd and untenable as to not require any probe whatsoever.
Section 10 provides that if a Suit is already pending between the same
parties, substantially on the same issues and subsequent to it a Suit is filed,
its trial may be stayed unless the earlier Suit is decided.
‘The test of applicability of Section 10 to a particular case remains as to
whether on the final decision being reached in the previous Suit, such
decision operates as res-judicata in subsequent Suit. (Vide M/s O.P. Steel
Traders Vs. M/s Steel Strips Ltd. AIR 1992 P&H 217; RB.
Srinivasan Vs. Southern Petrochemical Industries Corporation Lid., AIR
1992 Mad. 363; and Jugometal Trg. Republike Vs. Rungta and Sons
(Private) Ltd., AIR 1966 Cal 382).
In Manohar Lal Chopra Vs. Rai Bahadur Rao Raja Seth Hiralal,
ATR 1962 SC 527, nearly a Constitution Bench of the Supreme Coun laid
down the principles for application of provisions of Section 10 of the
Code, that the question of issuing an order to a party restraining him
from proceeding with any other Suit in a regularly constituted court of
law, deserves care and consideration and such an order is not to be made
unless absolutely essential for the ends of justice.
In Mls Maltex Malsters (P) Ltd. Vs. M/s Allied Engineers, AIR 1975
Del. 123, the Court, placing reliance upon a large number of judgments,
rejected the application under Section 10, observing that the issue
involved therein should be identical.
In Brijlal & Co. Vs. Madhya Pradesh Electricity Board, AIR 1975
Cal 69, it has been held that provisions of Section 10 are attracted only if
the field of controversy and claim in the later Suit has been involved in the
earlier case but second Suit cannot be restrained for proceedings if it is
far more comprehensive and claiming different relief on different ground.
In Vijay Kumar & Ors. Vs. Manohar Lal & Ors, AIR 1979 Del 1, the
Court placed great emphasis on the expression "matter in issue”(CPC Reference to Amendment Acts—1999 cb 2002 9
Occurring in Section 10, meaning thereby that the matter in issue must be
identical in the earlier Suit and in case the issues are common in two Suits,
say claiming the recovery of rent for different Periods, Section 10
would have no application though the same question may be
involved in both the Suits,
In Piyush Kanti Guha Vs. West Bengal Pharmaceutical &
Phytochemical Development Corporation Ltd. & Ors., AIR 1982 Cal,
94, the Court examined the case where a Suit had been filed on the
ground of operation and framing of a scheme and appointment of
Directors in a company petition which was distinctly different from the
telief asked for in a civil Suit restraining some Directors nominated by the
Government from functioning, and observed that staying the proceedings
in the company petition would not arise under Section 10 of the Code as
the issues involved in both the cases were entirely different. While
deciding the said case, the Court placed reliance upon the judgment of
the Hon'ble Supreme Court in Cosmosteels Private Lid. & Ors. Vs. Jairam
Das Gupta & Ors. ATR 1978 SC 375,
In Dr. Guru Prasad Mohanty & Ors, Vs. Bijoy Kumar Das, AIR
1984 Ori 209, the Orissa High Court held that if two Suits between the
same parties, involving common questions, are pending, consolidation and
analogous hearing of Suits is permissible but Section 10 may not be
attracted,
In M/s Mehta Gandhi and Associates Vs. Shree Pipes Lid., AIR 1990
Del 139, it was held by the Delhi High Court that Provisions of
Section 10 of the Code would apply provided the issues in both the Suits
are identical and if all the issues in both the Suits are substantially
identical, it will be in the interest of justice to stay the proceedings in a
Suit filed subsequently till the disposal of the Suit pending in the
Court,
In Shri Ram Tiwary & Ar. Vs. Bholi Devi & Anr., AIR 1994 Pat.
76, it was held by the Patna High Court that even if cause of action,
relief prayed for or some of the issues in former and subsequent Suits
may differ, that will not be a ground for non-application of Section 10
of the Code if the Court finds that the final decision in the former Suit
would operate as res-judicata in the subsequent Suit. Similar view has
been reiterated in M/s Wings Pharmaceuticals (P) Lid. & Anr. Vs,0 CP.C Reference to Amendment Acts—1999 & 2002
Swan Pharmaceuticals & Ors., AIR 1999 Pat. 96, observing that it may
be necessary to apply the provisions of Section 10 to avoid the conflicting
decisions in two different Suits having the identical issues.
In K.V, Subramaniam Vs. Pattabi Bhagavathar & Ors., AIR 1999
Mad. 99, the Court examined a case where the decree had been passed in
favour of defendant in earlier Suit on the basis of settlement deed
executed by plaintiff, Subsequent Suit had been filed alleging that the
settlement deed was obtained by fraud and collusive decrees were
passed. The Court held that in such an eventuality, Section 10 of the
Code has no applicability for the reason that the relief sought in the
second Suit is entirely different, ic. for declaration that the defendant in
bringing about the two decrees in the earlier Suit pertaining to the said
property arecollusive and fraudulent and hence the decrees made in
those earlier Suits are liable tobe set-aside. Two suits involved separate
and distinct questions between the same parties. Matter appeared to be
common regarding validity of documents. While in the first suit the
question was only regarding the authority to create the settlement. The
second suit questions the very legality of that settlement. The entitlement to
create a document would be one thing while its legality in law would be
quite another, Subsequent suit could not be stayed as it could not be said
that the issues involved were directly and substantially the same.
Ibis evident from the language of the section that before the application
thereof can be attracted to the particular case the following conditions must
be satisfied:~
(a) the matter/matters in issue should be
substantially the same in the two suits;
(b) the previously instituted suit should be
pending in the same Court in which the
subsequent suit is brought or in another Court
in India having jurisdiction to grant the relief
claimed; and
(c) the two suits should be between the
same parties or their representatives and these
parties should be litigating in the two suits
under the same title (Vide C.L-Tandon Vs.
Prem Pal Singh, AIR 1978 Del 221).CPC. Reference to Amendment Acts—J090 & 2002 ty
In view of the above, it is evident that the provisions of Section 10 of
the Code are applicable only in case where there may not be complete
identity of the subject matter, but it would be sufficient if the matter is
directly or substantially in issue in an earlier Suit is directly or
Substantially in issue in the subsequent Suit.
‘The object of enacting Section 10 of the Code is to avoid duplication of
evidence, saving of time and energy of the courts and parties, and further to
avoid conflicting decrees. However, if a decree has been Passed in
contravention of the provisions of Section 10, that is to be enforced. (Wide
Radha Devi Vs. Deep Narayan Mandal, (2003) 11 SCC 759; Gupte
Cardiac Care Centre and Hospital Vs. Olympic Pharma Care (P) Ltd., AIR
2004 SC 2339; Pukhraj D, Jain Vs. G. Gopalakrishna, AIR 2004 SC 3504;
and National Institute of Mental Health and Neuro Sciences Vs..6,
Parameshwara, (2005) 2 SCC 256).
Section 11 contains the mule of conclusiveness of the judgment which is
based partly on the maxim of Roman jurisprudence “interest reipublicac ut
sit finis litium” (it concems the State that there be an end to law suits) and
partly on the maxim “nemo debet bis vexari Pro una ef cadem causa” (no
man should be vexed twice over for the same cause). The section does not
affect the jurisdiction of the court but operates as a bar to the trial of the suit
or issue, if the matter in the suit was directly and substantially in issue (and
finally decided) in the previous suit between the same parties litigating
under the same title in a court, competent to try the subsequent suit in which
‘such issue has been raised. “Res judicata pro veritate accipitur” is the full
maxim which has, aver the years, shrunk to mere “ res judicata™. (Vide
Kunjan Nair Sivaraman Nair Vs. Narayanan Nair, (2004) 3 SCC 277).
If the issue has been already decided on merit between the same parties
in earlier litigation, it cannot be decided again. Explanation (4) thereof, also
provides for constructive res judicata which has to be read like the
Provisions of Order 2 Rule 2. It also applies to the proceedings in the Suit.
Even an erroneous decision on a question of law attracts the doctrine of
res judicata between the parties to it. The correctness or otherwise of a
judicial decision has no bearing upon the question whether or not it
operates as res judicata. (Wide Shah Shivraj Gopalji Vs. ED-. Appakadh
Ayiassa Bi & Ors., AIR 1949 PC 302; and Mohanlal Goenka Vs. Benoyn CPC Reference to Amendment Acti—1999 & 2002
Kishna Mukherjee & Ors., AIR 1953 SC 65). In such an eventuality, re-
agitation of an issue is barred by the principle of constructive res
judicata. (Vide Mohanlal Goenka (supra); Ushadevi Balwant Vs. Devidas
Shridhar, AIR 1955 Bom. 239; Benaras Ice Factory Lid. Vs. Sukhlal
Amarchand Vadnagra, AIR 1961 Cal. 422, Jasraj Multan Chand & Anr.
Vs. Kamroddin & Ors, AIR 1971 MP 184; and Puthen Veettil
Nolliiyodan Devoki Amma & Ors, Vs. Puthen Veettil Nolliyedan Kunhi
Raman Nair & Ors., AIR 1980 Ker 230).
Undoubtedly, the doctrine of res judicata is applicable where earlier
the Suit had been decided. Though the doctrine may not be attracted
in different proceedings at different stages in the same Suit but the
Principle enshrined therein is, undoubtedly, applicable.
In Satyadhyan Ghosal & Ors, Vs. Smt. Deorajin Debi & Anr., AIR
1960 SC 941, the Supreme Court considered the applicability of the
doctrine in the proceedings at different stages in the same Suit and held as
under:-
“The principle of res judicata is based on
the need of giving a finality to judicial
decision. What it says is that once a res is
judicata, it shall not be adjudged again.
Primarily, it applies as between past
litigation and future litigation....... This
principle of res judicata is embodied in relation
to Suits in Section 11 of the Code of Civil
Procedure; but even where Section 11 does
not apply, the principle of res judicata has
been applied by courts for the purpose of
achieving finality in litigation...... The
principle of res judicata applies also as
between two stages in the same litigation to
this extent that a court, whether the trial
court or ahigher court, having, at an earlier
stage, decided a matter in one way, will not
allow the parties to re-agitate the matier
again at the subsequent stage of the same
proceedings.”cre Reference to Amendment Acts—1999 & 2002 B
This view has consistently been approved and followed by the Hon'ble
Supreme Court in large number of cases. In Arjun Singh Vs. Mohindra
Kumar, AIR 1964 SC 993, the Hon'ble Apex Court observed as under:
“wwe though Section 11 of the Code of
Civil Procedure clearly contemplates the
existence of two Suits and the findings in the
first being res judicata in the later Suit, it is
well established that the principle underlying
it is equally applicable to the case of
decision rendered at successive Stages of the
Same Suit or proceeding. But where the
Principle of res judicata is involved in the
case at the different stages of proceedings in
the same Suit, the nature of the proceedings,
the scope of the inquiry which the adjective
law provides for decision being reached as
well as the specific provisions made on
matters touching decision are some of the
material and relevant factors to be
considered before the Principle is held
applicable,”
Similar view has been reiterated by the Hon'ble Supreme Court in
L.R. Ganapathi Thevar (dead) by his legal representatives Vs. Sri
Navancethaswaraswami Devasthanam, AIR. 1969 SC 764.
The question whether the appellant's Possession has become adverse
since the death of the mother of the respondent and that the appellant could
be said to have prescribed title as 4 Marusidar of the land in his possession
on that basis could not have been taised in the earlier suit for partition by the
appellant, the point cannot be said to be constructive res judicata by reason
of the decision against appellant's tithe in the earlier suit. (Vide Nagta Singh
Vs. Shiv Singh, AIR 1981 All 75).
Tt would be impermissible to permit any party to raise an issue inter se
where such an issue under the very Act has been decided in an early
Proceeding. Even if res judicata in its strict sense may not apply but its
Principle would be applicable. Parties who are disputing, if they were
crc?ty crc Reference to Amendment Actr—1999 dt 2002
parties in an carly proceeding under the very Act raising the same issue
would be stopped from raising such an issue both on the principle of
estoppel and constructive res judicata (Vide Vijayabai Vs. Shriram
Tukaram AIR 1999 SC 451).
In Escorts Farms Ltd. Vs. Commissioner, Kumaon Division, Nainital,
UP. & Ors., (2004) 4 SCC 281, the Hon'ble Supreme Court examined the
issue of res judicata observing that doctrine applied to give finality to “lis”
in original or appellate proceedings. The issuc once decided should not be
allowed to be reopened and re-agitated twice over. ‘The literal meaning of
“res” is “everything that may form an object of rights and includes an
object, subject-matter or status” and “res judicata” literally means “a matter
adjudged a thing judicially acted upon or decided; a thing or matter settled
by judgments”.
The principle of res judicata would not apply if the decree has been
obtained by practicing misrepresentation or fraud on the court, or where the
proceedings had been taken all together under a special Statute. More so,
every finding in the earlier judgment would not operate as res judicata.
Only an issue “directly” and “substantially”, decided in the carlier suit,
would operate as res judicata. Where the decision has not been given on
merit, it would not operate in, case against the judgment and decree of the
court below the appeal is pending in the appellate court, the judgment of the
court below cannot be held to be final, and the findings recorded therein
would not operate as res judicata. (Wide Premier Cable Co. Ltd. Vs.
Government of India, AIR 2002 5C 2418; Arm Group Enterprises Ltd.
Vs. Waldorf Restaurant, (2003) 6 SCC 423, Mahila Bajrangi Vs.
Badribhai, (2003) 2 SCC 464; Pondicherry Khadi & Village Industries
Board Vs. P. Kulothangan, AIR 2003 SC 4701; Kiran Tandon Vs.
Allahabad Development Authority, AIR 2004 SC 2006; T.P. Moideen
Koya Vs. Govt. of Kerala, (2004) 8 SCC 106; State of Haryana Vs. State
of Punjab, (2004) 12 SCC 673; Bhanu Kumar Jain Vs. Archana Kumar,
(2005) 1 SCC 787; Sampat Co-operative Sugar Mills Lid. Vs. Ajit Singh,
(2005) 3 SCC 516; and Swami Atmananda & Ors. Vs. Sri, Ramkrishna
Tapovanam é& Ors. 2005 AIR SCW 2548).
Sections 15 to 20 deal with place of suing. Section 15 provides that
every suit shall be instituted in the Court of lowest grade competent to try it.
Section 16 provides for institution of the suit where subject matters situate,
Section 17 provides that suit shall be instituted for immovable propertyCAC Reference to Amendment Acts—1999 & 2002 is
situate within jurisdiction of different Courts, Section 18 deals with the
Place of institution of suit where local limits of jurisdictions of Courts are
uncertain. Section 19 provides for institution of suits for compensation for
‘wrongs to person or movable.
Section 20 provides for institution of the suits not covered by earlier
Provisions where defendants reside or cause of action arises.
Conferment of jurisdiction is a legislative function and it can neither
be conferred with the consent of the parties nor by a superior court and
if the court passes a decree having no jurisdiction over the matter, it
would amount to nullity as the matter oes to the route of the jurisdiction,
Such an issue can be raised even at a belated Stage in execution. The
finding of a court or Tribunal becomes irrelevant and
unenforceable/inexecutable once the forum is found to have no jurisdiction,
Acquiescence of party cannot confer jurisdiction upon a court and an
erroneous interpretation equally should not be Permitted to perpetuate and
Perpetrate, defeating the legislative animation. The Court cannot derive
jurisdiction apart from the Statute. (Vide Smt. Nai Bahu Vs. Lala
Ramnarayan & ors., AIR 1978 SC 22; Natraj Studios Pvt. Ltd. Vs.
Navrang Studio & Anr., AIR 1981 SC 537: Sardar Hasan Siddiqui Vs,
State Transport Appellate Tribunal, AIR 1986 AILI32; AR. Antuley Vs.
RS. Nayak, AIR 1988 SC 1531; Union of India Vs. Deoki Nandan
Aggarwal, AIR 1992 SC 96; Karmal Improvement Trust Vs. Prakash
Wanti & Anr., (1995) $ SCC 159; UP. Rajkiya Nirman Nigam Ltd.
Vs. Indure Pvt. Lid., AIR 1996 SC 1373; State of Gujarat Vs. Rajesh
Kumar Chimanlal Barot & Anr., AIR 1996 SC 2664; Kondiba Dagadu
Kadam Vs. Savitribai Sopan Gujar & ors., AIR 1999 SC 2213; and
Collector of Central Excise, Kanpur Vs. Flock (India) (P) Ltd., Kanpur,
AIR 2000 SC 2484),
In Subodh Kumar Gupta Vs. Shrikant Gupta & Ors., (1993) 4 SCC 1,
the Hon'ble Supreme Court considered a case wherein a partnership firm
was having the registered office at Bombay and factory at Mandsore.
‘Two partners - defendants were residing at Mandsore while the third
Partner-plaintiff shifted to Chandigarh and an agreement had been drawn
up between the partners at Bhilai for dissolution of the firm and
distribution of assets, The suit was filed by the plaintiff in the Court at
Chandigarh for dissolution of the firm and rendition of account on the
Naar16 crc Reference to Amendment Acts—1999 & 2002
ground that the defendants at Mandsore misappropriated partnership's
fund and the aforesaid agreement was void and liable to be ignored. The
Court held that in view of the provisions of Section 20 of the Code, suit
can be entertained in a place where cause of action had arisen fully or
parly, The mere bald allegation by the plaintiff for the purpose of creating
a jurisdiction would not be enough for conferring jurisdiction or an
allegation that agreement was void was also not enough unless the
agreement is set-aside by the competent court. The court must find out,
examining the provisions carefully, as to whether the suit can be entertained
by it. Generally, it should be at the place where the defendant resides,
actually and voluntarily, of carries on business of personally works for
gain or the cause of action arises wholly or in part.
In Oil & Naturla Gas Commission Vs. Utpal Kumar Basu &
Ors., (1994) 4 SCC 711, the Hon'ble Supreme Court considered the
provisions of Clause (2) of Article 226 of the Constitution of India, which
provides for territorial jurisdiction of the High Courts, The Apex Court
held that while deciding the territorial jurisdiction of the Court, within which
the cause of action, wholly or partly, arises, must be decided on facts
pleaded in the petition disregarding, truc or otherwise thereof, but the facts
must form integral part of the cause of action. In the said case, facts
involved had been that ONGC had decided to set-up a Kerosene Processing
Unit at Hajaria (Gujarat), ETL was appointed by the ONGC as its
consultant and in that capacity, EIL issued advertisement from New Delhi
calling for tenders and this advertisement was printed and published in all
leading news-papers in the country including The Times of India in
circulation in West Bengal. In response thercto, tenders or the bids were
forwarded to EIL at New Delhi, which were scrutinized and finalized
by the ONGC at New Delhi. However, the writ petition had been filed in
the Calcutta High Court challenging the acceptance of tenders of the other
party. Before the Supreme Court, it was. contended that the Calcutta High
Court had no jurisdiction as no cause of action had arisen, even partly, in
its territorial jurisdiction, Mere communication to any person at a particular
place or publication or reading of the news of notice ete. does not confer
jurisdiction, After examining the facts of that case, the Apex Court came
to the conclusion that the Calcutta High Court lacked jurisdiction. While
deciding the said case, the Hon'ble Supreme ‘Court placed reliance uponCAC Reference to Amendment Acts—1909 & 2002 ib
the judgment in Chand Koer Vs. Partab Singh, 15 Ind. Appeals 156,
Wherein it had been observed as under:~
“The cause of action has no relation
Whatsoever to the defence which may be set
up by the defendant, nor does it” depend
upon the character of the relief prayed for by
the plaintiff. It refers entirely to the grounds
Set-forth in the plaint as the cause of action; in
other words, to the media upon which the
plaintiff asked the court to arrive at a
conclusion in his favour.”
Therefore, in determining the objection of lack of territorial
Jarisdiction, the court must take all the facts pleaded in support of the cause
of action into consideration albeit without embargo upon an inquiry as to
the correctness or otherwise of the said facts.
In Aligarh Muslim University Vs. Vinay Engineering Enterprises Pvt.
Lid., (1994) 4 SCC 710, the Hon'ble Supreme Court examined a case
wherein the contract between the Parties was executed at Aligarh: the
construction work was to be carried out at Aligarh; the contract provided
that in the event of dispute, Aligath Court alone would have the
Jurisdiction; the arbitrator was to be Appointed at Aligarh and had to
function at Aligarh. The Hon'ble Supreme Court held that the Court at
Calcutta had no jurisdiction ierely because the respondent company was
4 Calcutta-based firm.
In Board of Trustees for the Port of Calcutta Vs, Bombay Flour
Mills Pvt. Lid. & Anr., AIR 1995 sc 577, the Hon'ble Supreme Court
considered a case wherein acivil court at Bharatpur (Rajasthan) entertained
acivil suit in respect of assignment of imported goods unloaded at Calcutta
dock and the Plaintiff's representation to the Port Trust to waive the port
charges had been refused. The Civil Court at Bharatpur entertained the suit
Supreme Court held that as no cause of action, even partly, occurred at
Bharatpur, the only appropriate court at Calcutta was competent to take
cognizance of the action and held that the orders of the Civil Court at
Caerthy cre Reference to Amendment Acts—1999 2002
Bharatpur, having no jurisdiction, were void and the order of the High
Court, refusing to interfere with the orders, was illegal.
In Manju Bhatia & Anr. Vs. New Delhi Municipal Council &
Anr., AIR 1998 SC 223, the Hon'ble Supreme Court considered a case
for damages, under which a “cause of action” in adefinite form may
not be relevant except when necessary to comply with the laws relating
to procedure and limitation etc. The Apex Court observed that “a cause
of action in modern law is merely a factual situation, the existence of
which enables the plaintiff to obtain a remedy from the Court and he is
not required to head his statement of claim with adescription of the
breach of the law on which he relies...”
In State of Assam & Ors. Vs. Dr. Brojen Gogoi & Ors., AIR 1998
SC 143, the Hon'ble Supreme Court examined a case wherein the Bombay
High Count had granted anticipatory bail to aperson who was allegedly
connected with the offence, for all practical purposes, ina place within
the territorial jurisdiction of Gauhati High Court and all such activities had
perpetuated therein. The Hon'ble Apex Court transferred the case from
Bombay High Court to Gauhati High Court to be heard further,
In C.B.L, Anticorruption Branch Vs. Narayan Diwakar, AIR 1999
SC 2362, the Hon'ble Apex Court considered a case where the respondent
was the In charge/Collector in Daman within the territorial jurisdiction of
Bombay High Court and an FIR had been lodged against him in Daman for
the territorial jurisdiction of Gauhati High Court. The CBI gave him a
wireless message from Bombay advising him to appear before its
officers, in respect of investigation of the said case, in Bombay. The
respondent filed a writ petition under Article 226 of the Constitution
before the Gauhati High Court, The Supreme Court did not decide the case
‘on merit but observed as under:
"Suffice it to say that on the facts and
circumstances of the case and the material on
record, we have no hesitation to hold that the
Gauhati High Court was clearly in error in
deciding the question of jurisdiction in favour
of the respondent. In our considered view, ‘the
eeeCPC. Reference to Amendment Acti—1999 & 2002 1»
writ petition filed by the respondent in the
Gauhati High Court was not maintainable,"
‘The entire argument in the case had been that the Gauhati High Count
had no jurisdiction to entertain the writ petition as no cause of action had
arisen, even partly, within its territorial jurisdiction and receiving the
message in Arunachal Pradesh to appear before the CBI Authority at
Bombay did not give rise to the cause of action, even partly.
In Navinchandra N. Majithia Vs. State of Maharashtra & ors., AIR
2000 SC 2966, the Hon'ble Supreme Court while considering the
Provisions of Clause (2) of Article 226 of the Constitution, observed as
under:-
“In legal parlance the expression ‘cause of
action’ is generally understood to mean a
Situation or state of facts that entitles a party to
maintain an action ina court or a tribunal: a
group of operative facts giving rise to one
or more basis for suing; a factual
Situation that entitles one person to obtain a
remedy in court from another
Person......'Cause of action’ is stated to be the
entire set of facts that gives rise to an
enforceable claim; the phrase comprises
every fact, which, if traversed, the plaintiff
must prove in order to obtain judgment......the
meaning attributed to the phrase ‘cause of
action’ in common legal parlance is
existence of those facts which give a party a
right to judicial interference on his behalf."
The Apex Court held that while considering the same, the court must
examine as to whether institution of a complain plaint is a mala fide
move on the part of a party to harass and pressurise the other party for one
reason or the other or to achieve an ulterior goal. For that consideration,
the relief clause may be a relevant criterion for consideration but cannot
be the sole consideration in the matter.
In H.V. Jayaram Vs. Industrial Credit & Investment Corp. of India
Ltd., AIR 2000 SC 579, the Hon'ble Supreme Court examined the issuc
eee20 CPC. Reference to Amendment Acts—1999 & 2002
of territorial jurisdiction of a court in respect of the offence under Section
113 (2) of the Indian Companies Act, 1956, Taking note of Sections
113 and 207 of the said Act, the Apex Court held that the cause of action
for default of not sending the share certificates within the stipulated
period would arise only at a place where the registered office of the
company was situated as from that place the share certificates
could be posted and are usually posted.
In Rajasthan High Court Advocates’ Association Vs. Union of
India & ors., AIR 2001 SC 416, the Hon'ble Supreme Court considered
the question of territorial jurisdiction of the Principal ‘Seat of this Court
at Jodhpur and the Bench at Jaipur and explained the meaning of
“cause of action” observing as under:-
“The expression ‘cause of action’ has
acquired a judicially settled meaning. In the
restricted sense, ‘cause of action’ means the
circumstance forming the infraction of the
right or the immediate occasion for the
action, Inthe wider sense, it means the
necessary conditions for the maintenance of
the suit, including not only the infraction of
the rights, but the infraction coupled with the
right itself. Compendiously the expression
means every fact which would be necessary
for the plaintiff 10 prove, if traversed, in order
to support his right to the judgment of the
court. Every fact which is necessary to be
proved, as distinguishing from every piece
of evidence which is necessary to prove cach
fact, comprises in a ‘cause of action.’ It has
to be left to be determined in each
individual case as to where the cause of action
arose.
In Union of India & Ors. Vs. Adani Exports Lid. & Anr., (2002) 1
SCC 567, the Hon'ble Supreme Court considered the scope of Section
20 of the Code and Clause (2) of Article 226 of the Constitution while
examining as to whether in that case the Gujarat High Court was having
COCOG. C. Reference to Amendment Acts—/999 & 2002 2
territorial jurisdiction. The Court held that the facts which may be relevant
to give rise to the “cause of action", are only those which have “a nexus
or relevance with the lis involved in the case and hone else.” In the said
case, the respondent had filed an application before the Gujarat High
Court claiming the benefit of Pass-book Scheme under the provisions
of the Import Export Policy introduced w.cf. 1-4-1995 in relation to
Certain credits to be given on export of stimps, However, none of the
fespondents in the civil application was Stationed at Ahmedabad.
Even the Pass-book, if to be issued, had to be issued by an Authority
stationed at Chennai; the entries in the pass-book under the Scheme
concemed were to be made by the Authority at Chennaj and the export of
Prawns made by them and import of the inputs, benefit of which the
fespondents had sought in the application, were also to be made at
Chennai. The Court held that the Gujarat High Court had no territorial
Jurisdiction, in spite of the fact that the fespondents were carrying on
their business of export and import from Ahmedabad, the orders of export
and import were placed from and were executed at Ahmedabad,
documents and payments of export and imports were sent/made at
Ahmedabad, the credit of duty claimed in respect of export were handled
from Ahmedabad, the respondents had executed a bank guarantee
through their bankers as well as a bond at Ahmedabad, non-grant or
denial of utilization of the credit in the Pass-book might affect the
company's business at Ahmedabad, The court held as under:
aie In order to confer jurisdiction on a
High Cour to entertain a writ Petition or a
special civil application as in this case, the
High Court must be satisfied from the entire
facts pleaded in support of the cause of action
that those facts do constitute a Cause so as lo
empower the court to decide a dispute which
has, at least in part, arisen within its
jurisdiction. ..... cach and every fact pleaded
by the respondents in their application does
not ipso facto fead to the conclusion that those
facts give rise to a cause of action within the
Court's territorial jurisdiction unless those
facts pleaded are such which have a nexus or
iE, ee2 CP.C. Reference to Amendment Acts—1999 & 2002
relevance with the lis that is involved in
the case. Facts which have no bearing with
the lis or the dispute involved in the case, do
not give rise toa cause of action so as to
confer territorial jurisdiction on the court
concemed. If we apply this principle then
we see that none of the facts pleaded in
para 16 of the petition, in our opinion, fall
into the category of bundle of facts which
would constitute a cause of action giving rise
to a dispute which could confer
territorial jurisdiction on the courts at
Ahmedabad. ...... the fact that the respondents
are carrying on the business of export and
import or that they are receiving the export
and import orders at Ahmedabad or that their
documents and payments for exports and
imports are sen’ made at Ahmedabad, has
no connection whatsoever with the dispute
that is involved in the applications. Similarly,
the fact that the credit of duty claimed in
respect of exports that were made from
Chennai were handled by the respondents
from Ahmedabad have also no connection
whatsoever with the actions of the appellants
impugned in the application, The non-
granting and denial of credit in the passbook
having an ultimate effect, if any, on the
business of the respondents at Ahmedabad
would not also, in our opinion, give rise to any
such cause of action to a court at Ahmedabad
to adjudicate on the actions complained
against the appellants.”
In Muhammad Hafiz Vs. Muhammad Zakariya, AIR 1922 PC 23,
the “cause of action” was explained as under:-CPC Reference to Amendment Acts—1999 & 2002 mu
“athe cause of action is the cause of
action which gives occasion for and forms the
foundation of the suit..."
Similarly, in Read Vs. Brown, (1889) 22 QBD 128, this was
explained as under:-
“Every fact which would be necessary for
the plaintiff to prove, if traversed, in order to
support his right to the judgment of the
court.”
Same meaning has been reiterated by the Privy Council in
Mohammed Khalil Khan & ors. Vs. Mehbul Ali. Mian & ors., AIR
1949 PC 78, and by the Supreme Court in State of Madras Vs. CP.
Agencies, AIR 1960 SC 1309; and A.B.C. Laminart Put. Lid. & Anr,
Vs. A.P. Agencies, Salem, AIR 1989 SC 1239.
A “cause of action” is a bundle of facts which, taken with the law
applicable, gives the plaintiff a right to relief against the defendant.
However, it must include some act done by the defendant, since in the
absence of an act, no cause of action can possibly occurred. (Vide
Radhakrishnamurthy Vs. Chandrasekhara Rao, AIR 1966 AP 334; Ram
Awalamb Vs. Jata Shankar, AIR 1969 All. $26 (FB); and Salik Ram
Adya Prasad Vs. Ram Lakhan & Ors., AIR 1973 All. 107).
The “cause of action” in a suit of negotiable instrument arises
wherever any one of the facts, the proof of which is essential to
plaintiff's case, occurs where a Promissory note was signed by the
defendant at Seccundrabad and delivered to the plaintiff at Madras. It was
held that the Madras High Court had jurisdiction as the delivery was
Recessary to complete the plaintiff's title. (Vide Winter Vs. Round,
(1867) 1 MHC 202),
A similar view has been reiterated by the Hon'ble Supreme Court in
Swami Atmananda & Ors. Vs, Sri Ramkrishna Tapovanam, & Ors, 2005
AIR SCW 2548, wherein the apex Court held that the “cause of action”
means every fact, which, if traversed, would be necessary for the plaintiff to
Prove in order to support his right for a judgment of the Court. In other
words, it is a bundle of fact which taken with the law applicable to them
gives the plaintiff a right to relief against the defendant, It must includeu CPC Reference to Amendment Acts—1999 & 2002
some act done by the defendant since in the absence of such an act, no
cause of action can possibly accruc. It is not limited to the actual
infringement of the right to sue, but include all the material facts on which it
is found.
In the case of a cheque where it is drawn on a bank at place ‘A’ but the
creditor hands it over to its banker at place "B' for collection, the Court at
place ‘A’ has jurisdiction as payment, which is part of cause of action,
takes place at place ‘A’, (Vide Firm M/s. Bosh Raj Mahesh Kumar Vs.
M/s, Earl Chawla & Co. (P) Lid., AIR 1974 P&H 2).
Therefore, for a “cause of action", it must be determined as what is
the place where the right is created though infringement of the right might
have taken place at some other place. (Wide Vijay Bank, Regional
Office, Egmore, Madras Vs. Kiran & Co,, AIR 1983 Mad. 357).
In Rameshwar Lal Ram Karan & Ors, Vs, Gulab Chand Puranmal,
AIR 1960 Raj, 243, it was held that a suit can be filed in a court within
whose jurisdiction a negotiable instrument was executed and the Court, in
whose territorial jurisdiction an assignment was made, could not have
jurisdiction as no cause of action, even in part, occurred therein, for the
reason that such an assignment might have been made to defeat the
statutory provisions contained in Section 20 (c) of the Code, While
deciding the said case, the learned Single Judge of this Court considered
two contrary judgments by the Division Bench of this Court on the same
point, viz., Mishrimal Vs. Moda, 1951 RLL.W. 433 and Abdul Gafoor
Vs. Sensmal & ors., AIR 1955 Raj. $3 and followed the former one,
observing as under:-
ae If the assignment were to be
treated es forming part of cause of action
for the purpose of giving jurisdiction, the
defendant could be compelled to defend
the suit at the choice of the plaintiffs and
this would cut at the basic principle
underlying Section 20 CPC."
There are certain judgments wherein it has been held that
assignment constitute the cause of action and is sufficient to give
jurisdiction to the Court. (Vide Kalooram Agarwalla Vs. Jonistha Lal
Chakrabarty & Anr., AIR 1936 Cal. 349; Gopal Shuriamal Vs, T.G. 5.
CECCP.C. Reference to Amendment Acty—/999 & 2002 as
Narayan & Anr., AIR 1953 Nag. 193; Union of India Vs. Adon Hajee,
AIR 1954 Tra. & Cochin 362: Alliance Assurance Co. Vs. Union of
India, AIR 1959 Cal, $63; Ramarao Vs. Union of India & ors., AIR
1961 AP 282; Radhakrishnamurthy (supra): and Barikara Narasayya
& ors, Vs. R. Basavana Gowd & ors., (1985) 2 CCC 581), Another
different view has also been taken to the eatent that an assignment/
endorsement, which merely authorises the endorsee to take delivery of
the goods, will mot create the jurisdiction. (Vide Commissioner for the
Port of Calcutta Vs. General Trading Corpn. Ltd., AIR 1964 Cal.
290).
In Kunjan Nair Sivaraman Nair Vs. Narayanan Nair, (2004) 3 SCC
277, the meaning of ‘cause of action’ has been explained by the Apex Court
compendiously observing that the term has acquired a judicial settled
meaning. In the restricted sense ‘cause of action’ means the ‘circumstance
forming the infraction of the right or the immediate ‘occasion for the action.
In the wider sense, it means the necessary conditions for the maintenance of
the suit including not only the infraction of the right but the infraction
coupled with the right itself. The Expression means every fact which would
be necessary for the plaintiff to Prove, if traverse, in order to support his
‘Fight to the judgment of the Court,
Where endorsement was made on back of promissory note in favour of
Plaintiff, endorsement was only to recover interest and not the whole
amount. It was made unilaterally without the consent of the party. As it was
not found to be bona fide and made to defeat provisions of Section 20(c),
therefore, it could not confer jurisdiction on Court within whose jurisdiction
interest was directed to be paid, (Vide Mohna Ramakrishanan Vs. Yogam
Bala Dev Raj, AIR 2003 Raj 88).
Ttis a well settled principle that by agreement the parties cannot confer
jurisdiction, where none exist, on a Court to which CPC applies, but this
Principle does not apply when the parties agree to submit to the exclusive or
non-exclusive jurisdiction of a foreign Court. Indeed in such cases the
English Courts do permit invoking their jurisdiction. Thus, it is clear that
the parties to a contract may agree to have their disputes resolved by a
foreign Court termed as a ‘neutral Court’ or ‘Court of choice’ creating
exclusive on non-exclusive jurisdiction in it. (Vide Modi Entertainment
Network Ws, W.S.G. Cricket Pte, Ltd., AIR 2003 SC 1177).
Saar6 CP.C. Reference to Amendment Acts—1999 & 2002
In view of the aforesaid judicial pronouncements, it may be
summarised that the cause of action is a bundle of facts and to
examine the issue of jurisdiction, it is necessary that one Of the inter-
linked facts must have occurred in a place where the suit has been
instituted. ‘The said fact must have a direct nexus to the lis between the:
parties and in case the facts taken in the plaint are denied, the plaintiff has
to prove the same, The fact must have direct relevance in the lis involved.
Inis notthat every fact be treated asa cause of action in part and may
create a jurisdiction of the court, in whose territorial jurisdiction it has
occurred. The condition precedent for creation of jurisdiction is that
the facts occurred therein must form an integral part of the cause of
action. A mere allegation by a plaintiff for the purpose of creating
ajurisdiction should not be enforced for conferring jurisdiction.
More so, a fact, which does not have any direct relevance with the lis but
is made to occur only to defeat to statutory provisions of Section 20 (c) of
the Code in order to deprive the court which must have territorial
jurisdiction over the subject matter of the suit, should not be accepted for
the reason that the act has knowingly or purposely been performed to
harass the defendant and deprive the court which has territorial jurisdiction
over the subject matter and to try the suit.
In New Moga Transport Co. Vs. United India Insuranee Co. Ltd. &
Ors., (2004) 4 SCC 677, the Supreme Court explained the scope of Section
20 C-P.C. observing that where the party enters into an agreement it is
permissible to institute the suit in two or more Courts, but if by agreement
parties restrict only to one place, that is, place of suing to only one of them,
such an agreement is binding upon the parties not being contrary to public
policy. However, the parties by consignment note cannot confer jurisdiction
‘on a court which otherwise does not have jurisdiction to deal with the
matter.
Similarly, in Kusum Ingots & Alloys Lid. Vs. Union of India & Anr.,
(2004) 6 SCC 254 the Hon'ble Supreme Court explained the scope of
clause (2) of Article 226 comparing it with Section 20 (c) of the Code of
Civil Procedure and dealt with territorial jurisdiction ‘of the writ court,
observing that a court in whose territorial jurisdiction the cause of action has
partly or fully arisen, would have the jurisdiction to deal with the case,
though the original order might have been passed outside the territorial
jurisdiction of the said court
eeeCPC. Reference to Amendment Acts—1999 & 2002 7
Section 24 provides for power for transfer of a case from ‘one court to
another,
Section 26 (2) has been amended providing that in every plaint, fact
shall be verified by affidavit,
Section 27 Summonses have to be issued to the defendants to appear
and answer the claim and he should file the written statement within thirty
days from the date of institution of the Suit. The period for filing the written
Statement has been fixed by amendment,
Section 32 requires penalty for default of not appearing in the Court by
the witness. Earlier, Court had a power to impose a fine not exceeding five
hundred rupees, By amendment, amount had been enhanced to five
thousand rupees,
Section 39 deals with transfer of decree for execution ‘to the Court
where property is situate. The power of the executing Court has been taken
away against a person or property outside the local limits of its territorial
jurisdiction by the amendment. Earlier, he could execute the decree
throughout the territory of the province,
Section 38 deals with detention in execution of a Civil Court decree,
The provision has been amended to the effect that detention is permissible
for a period of three months if the amount involved is more than five
thousand rupees, and if it is more than two thousand, but less than five
thousand, the detention shall not exceed six weeks. Thus, there can be no
detention if the amount involved is less than two thousand Tupecs. Prior to
amendment, detention was permissible even if the sum of five hundred
Tupees was involved.
Section 79 provides for how the Suit can be filed by or against the
Union and State Government.
Section 80 deals with the notice in case of a Suit against the State.
Section 89 deals with settlement of disputes outside the courts. This is a
newly added section by amendment of the Code in 1999. It provides that
the court may explore the possibility as to whether the Matter can be settled
outside the court either by arbitration, conciliation, mediation, Lok Adalat
etc. This provision has been introduced to reduce the work of over-
burdened civil courts,
Section 91 deals with public nuisance and other wrongful acts affecting
the public. It is corresponding to the provisions of Section 133 Cr.P.C, for
SR2 CALC. Reference to Amendment Actr—1999 & 2002
removal of nuisance. But Section 91 deals with the public nuisance only,
though Section 133 Cr. P.C. Covers public as well as the private nuisance.
Section 94 provides for supplemental proceedings. In order to prevent
the ends of justice from being defeated the Court may, if it is so prescribed,
issue a warrant of arrest against the defendant to bring him before the Court
to show cause for giving security for his appearance and for failure thereof,
to commit him to civil prison, It may also direct the defendant to furnish
security and for failure thereof, to attach any of his properties, and also
grant temporary injunction and in case of disobedience thereof, the person
guilty thereof can be sent to civil prison and his properties may also be
attached and sold, The Court has also been given a power to pass other
interlocutory order as may appear to the Court to be just and convenient.
Such a wide power has been given to the Court to prevent any person i)
defeat the cause of justice. Generally, the Court should not pass any interim
order in exercise of power under this Section unless there are compelling
circumstances to do so, and while considering an application for such a
relief, regard must be have to the nature of the controversy and the issues
involved in the main matter. (Vide Sub-Committee of Judicial
‘Accountability Vs. Union of India, AIR 1992 SC 63, Meerut Collegiate
Association Vs. Arvind Nath Seth, AIR 1982 All 172; and Ratiram Pundik
Cheddar Vs. Pundik Arjun Khedkar, AIR 1982 Bom 79).
Section 95 This provision has been amended for providing maximum
amount of compensation in case of malacious prosecution upto fifty
thousand rupees for injury to the reputation to the defendant, but the Court
does not have competence to award compensation to the tune beyond its
pecuniary jurisdiction.
Prior to the amendment, compensation could be awarded upto a sum of
one thousand rupees and the defendant was at liberty to file a separate Suit
for damages. The purpose of this provision is to award compensation to the
defendant for the expenses or injury caused to him as a result of the plaintiff
obtaining an order of his (defendant's) arrest or attachment or obtaining a
temporary injunction against him on insufficient grounds. In certain
circumstances, injury may include injury to reputation. However, the
remedy under this Section is very special and the compensation should be
granted in exceptional circumstances where Court comes to the finding thatcrc Reference to Amendment Actr—1999 & 2002 PJ
the plaintiff had abused the process of the Court by malacious prosecution,
(Vide Basamma Vs. Peerappa, AIR 1982 Kant 9),
Section %6 provides for appeal, and the provision has been amended by
1999 Act that appeal would lic only, provided there is a dispute for more
than of Rs.10,000/-,
In the First Appeal, it is permissible for the appellate court to re-
examine and re-appreciate the evidence. The Tight to institute the suit is an
inherent right, but the right of appeal is statutory. (Vide Baldev Singh Vs.
Surendra Mohan Sharma, AIR 2003 SC 225; Narvada Devi Gupta Vs.
Birendra Kumar Jaiswal, (2003) 8 SCC 745; and Triputi Balaji Developers
Vs, State of Bihar, AIR 2004 SC 235),
Section 100 provides for a second appeal on the substantial question of
law, Second Appeal does not lie on questions of facts,
‘The High Courts should not entertain a second appeal under
Section 100 of the Code unless it raises a substantial question of law, In
Panchy Gopal Barua Vs. Umesh Chandra Goswami & ors., AIR 1997
SC 1041, the Court observed that while entertaining the second appeal, the
Court should not over-look the change brought about by the
Amendment Act of 1976 restricting the scope of second appeal drastically
and now it applies only to appeals involving substantial question of law,
Specifically set-out in the memorandum of appeals and formulated by the
High Court. The Cour, for the reasons to be recorded, may also entertain a
second appeal even on any other substantial question of law, not
formulated by it, ifthe Court is satisfied that the case involves such a
question. Therefore, the existence of asubstantial question of law is
@ sine-qua-non for the exercise of Jurisdiction under the Provisions of
Section 100 of the Code.
Itis the obligation on the Court of Law to further the clear
intendment of the Legislature and not to frustrate it by ignoring the same.
Similarly, in Kondiba Dagadu Kadam Vs. Savitribai Sopan Gujar &
ors., AIR 1999 SC 2213, the Apex Court held that right of appeal is a
Creation of the Statute. Thus, being a substantive statutory right, it has
to be regulated in accordance with law in force, ensuring the full
compliance of the conditions mentioned in the Provision. Therefore, the
one
net» CPC. Reference w Amendment Actx—1970 & 2002
Court has no power to enlarge the scope of those grounds mentioned
in the statutory provision. Second appeal cannot be decided merely
on equitable grounds as it lies only on substantial question of law,
something distinct from the substantial question of fact. The Court
cannot entertain the second appeal unless the substantial question
of law is involved.
In Kashibai Vs. Parwatibai, (1995) 6 SCC 213, the Hon'ble Supreme
Court held that the High Court cannot ignore the statutory provisions of
Section 100 of the Code and re-appreciate the evidence and interfere with
the findings of facts unless the substantial question of law or a
question of law duly formulated is to be decided. The second appeal does
not lie on the ground of erroneous findings of facts based on appreciation
of the relevant evidence.
In Kshitish Chandra Purkait Vs. Santosh Kumar Purkait & ors.,
AIR 1997 SC 2517, the Supreme Coun observed that while deciding
the second appeals, mandatory statutory requirements are seldom borne
in mind and second appeals are being entertained without conforming to
the above discipline, [t further placed reliance upon its earlier judgments
in Mahindra & Mahindra Ltd, Vs. Union of India & Anr., ATR 1979 SC
798, wherein the Hon'ble Supreme Court observed as under:-
on Inis not every question of law that
could be permitted to be raised in the second
appeal, The parameters within which a new
legal plea could be permitted to be raised, are
specifically stated in Sub-section (5) of
Section 100, Under the proviso, the
Court should be ‘satisfied’ that the case
involves a substantial question of law and
not a mere question of law, The reason for
permitting the substantial question of law to
be raised, should be recorded by the Court. It
is implicit therefrom that on ‘compliance of the
above, the opposite party should be afforded a
fair or proper opportunity to meet the same. k
is not any legal plea that would be alleged at
stage of second appeal. It should be a
edeCPC Reference to Amendment Acts—1999 & 2002 au
substantial question of law. The reasons for
Permitting the pleato be raised should also
be recorded.”
In Ram Prasad Rajak Vs. Nand Kumar & Bros. & Ans, AIR
1998 SC 2730, the Supreme Court held that existence of substantial
question of law is a sine-qua-non for the exercise of jurisdiction under
Section 100 of the Code and entering into the question as to whether need
of the landlord was bonafide or not, was beyond the jurisdiction of the
High Court as the issue can be decided only by appreciating the evidence
‘on record.
Similar view has been reiterated in Tirumala Tirupati Devasthanams
Vs. KM. Krishnaiah, (1993) 3 SCC 331; State of Rajasthan Vs, Harphool
Singh, (2000) 5 SCC 652; Rajapps Hanamantha Ranoji Vs. Mahadev
Channabasappa & ors., AIR 2000 SC 2108; Santakumari & ors. Vs.
Lakshmi Amma Janaki Amma, (2000) 7 SCC 60; Satyamma Vs.
Basamma (Dead) by LRs., (2000) 8 SCC 567; Santosh Hazari V.
Purushottam Tiwari, AIR 2001 Sc 963; Kulwant Kaur & Ors. Vs.
Gurdial Singh Mann, AIR 2001 SC 1273; MLS.V. Raja Vs. Seeni
Thevar, (2001) 6 SCC 652; Hafazat Hussain Vs. Abdul Majeed & Ors.,
(2001) 7 SCC 189; Pechimuthu Vs, Gowrammal, AIR 2001 SC 2446;
Neclakantan & ors. Vs. Mallika Begum, AIR 2002 SC 827; and . Md.
Mohammad Ali ( Dead} by L.Rs. Vs. Jagdish Kalita & Ors., (2004) 1
SCC 271).
There may be a question, which may be a “question of fact”, “question
of law", "mixed question of fact and law” and “substantial question of
law." Question means anything inquired; an issue to be decided. The
“question of fact" is whether 4 particular factual situation exists or not, A
question of fact, in the Realm of Jurisprudence, has been explained as
under:-
“A question of fact is one capable of
being answered by way of demonstration, A
question of opinion is one that cannot be so
answered, An answer to it is a matter of
Speculation which cannot be proved by any
available evidence to be right or wrong.”32 CPC. Reference to Amendment Acts—1999 & 2002
(Vide Salmond, on Jurisprudence, 12th Edn. page 69, cited in
Gadakh Yashwantrao Kankarrao Vs. E.V. alias Balasaheb Vikhe Patil
& ors., AIR 1994 SC 678).
In Smt, Bibhabati Devi Vs. Ramendra Narayan Roy & ors.,
‘AIR 1947 PC 19, the Privy Council has provided the guidclines as in
what cases the second appeal can be entertained, explaining the
provisions existing prior to the amendment of 1976, observing as under:~
=... that miscarriage of justice means
such a departure from the rules which
permeate all judicial procedure as to make
that which happen not in the proper sense of
the word ‘judicial procedure’ at all. That the
violation of some principles of law or
procedure must be such erroneous
proposition of law that if that proposition to
be corrected, the finding cannot stand, ot it
may be the neglect of some principle of
law or procedure, whose application will
have the same effect. The question whether
there is evidence on which the Courts could
arrive at their finding, is such a question of
law.
‘That the question of admissibility of
evidence is a proposition of law but it must
be such as to affect materially the finding.
The question of the value of evidence is
not sufficient reason for departure from the
practice...”
In Suwalal Chhogalal Vs. Commissioner of Income Tax, (1949) 17
ITR 269, the Apex Court held as under.-
“A fact is a fact irrespective of
evidence, by which itis proved. The only
time a question of law can arise in such @
case is when it is alleged that there is no
material on which the conclusion can be
based or no sufficient evidence.”
CCcrc Reference to Amendment Acts— 1909 2002 xB
In Oriental Investment Company Lid. Vs. Commissioner of Income
Tax, Bombay, AIR 1957 SC 852, the Hon'ble Supreme Count considered
large number of its earlier judgments, including Sree Meenakshi Mills
Lid. Vs. Commissioner of Income Tax, AIR 1957 SC 49, and held that
where the question of decision is whether certain profit is made and
shown in the name of certain intermediaries, were, in fact, profit
actually earned by the assessee or the intermediaries, is a mixed question
of fact and law, The Court further held that inference from facts would
bea question of fact or of law according as the point for determination is
one of pure factor a "mixed question of law and fact" and that a finding
on fact without evidence to support it or if based on relevant or
irrelevant matters, is not unassailable.
In Sit Chunnilal V. Mehta & Sons Vs. Century Spinning and
Manufacturing Co. Ltd., AIR 1962 SC 1314, the Surpeme Court for the
Purpose of determining the issue by the Supreme Court itself, held as
under:-
“The proper test for determining whether a
question of law raises in the case is
substantial, would, in our opinion, be whether
it is of general public importance or whether
indirectly and substantially affects the rights of
the parties and if so, whether it is either an
‘Open question in the sense that it is not finally
settled by this Court or by Privy Council or by
the Federal Court or is not free from difficulty
of calls for discussion of alternative views. If
the question is settled by the highest court or
the general principles to be applied in
determining the question are well settled and
there is a mere question of applying those
Principles or that the plea raised is palpably
absurd the question would not be a
substantial question of law.”
A Constitution Bench of the Hon'ble Supreme Court, in State of
J&K Vs. Thakur Ganga Singh, AIR 1960 SC 356, considered as what
may be the substantial question and held thar authentic interpretation of
etM crc Reference to Amendment Acts—1999 & 2002
the Constitutional provisions amounts to substantial question of law,
However, where the substantial question of law had already been decided
by the Authority which is binding on the other Courts like the
judgments of the Hon'ble Supreme Court under Article 141 of the
‘Constitution is binding on all other Courts etc., it docs not remain a
substantial question of law because there remains mo scope to interpret
further the said provision, While deciding the said case, the Hon'ble
‘Apex Court placed reliance upon its earlier judgments in Charanjit Lal
Chowdhary Vs, Union of India & ors., AIR 1951 SC 41; Ram Kishan
Dalmia Vs. Justice Tendolkar, AIR 1958 SC 538; and Mohammed
Haneef Quareshi Vs. State of Bihar, AIR 1958 SC 731. The same
view has been reiterated by the Hon'ble Supreme Court in Bhagwan
Swaroop Vs. State of Maharashtra, AIR 1965 SC 682.
In Reserve Bank of India Vs. Ramakrishna Govind Morey, AIR
1976 SC 830, the Hon'ble Supreme Court held that whether trial
Court should not have exercised its jurisdiction differently, is not a
question of law or a substantial question of law and, therefore,
second appeal cannot be entertained by the High Court on this ground.
‘There is no prohibition to entertain a second appeal even on question
of fact provided the Court is satisfied that the findings of the courts below
were vitiated by non-consideration of relevant evidence or by showing
erroneous approach to the matter, (Vide Jagdish Singh Vs. Nathu Singh,
AIR 1992 SC 1604; Smt. Prativa Devi Vs. T.V. Krishnan, (1996) 5
SCC 353; Satya Gupta Vs. Brijesh Kumar, (1998) 6 SCC 423;
Ragavendra Kumar Vs. Firm Prem Machinery & Co., AIR 2000 SC
$34: and Molar Mal Vs. M/s. Kay Iron Works Pvt. Ltd., AIR 2000 SC
1261.
In Jai Singh Vs. Shakuntala, ATR 2002 SC 1428, the Hon'ble
+ Supreme Court held that itis permissible to interfere even on question of
fact but it has to be done only in exceptional circumstances. The Court
observed as under:-
“While scrutiny of evidence does not
stand out to be totally prohibited in the matter
of exercise of jurisdiction in the second appeal
and that would, in our view, be too broad a
proposition and too rigid an interpretation of
———————_ 8“.CPC. Reference to Amendment Acts—1900 & 2002 Bi]
law not worth acceptance but that does not also
clothe the superior courts within jurisdiction
to intervene and interfere in any and every
matter- it is only in very exceptional cases
and on extreme perversity that the
authority to examine the same in extensor
stands permissible it is a rarity rather than a
regularity and thus in fine it can be safely
concluded that while there is no prohibition
as such, but the power to scrutiny can only be
had in very exceptional circumstances and
upon proper circumspection.”
In Muthu Gounder Vs. Ammayee Ammal, AIR 2002 SC 2481, the
Hon'ble Supreme Court held that it is. not permissible to interfere with the
findings of facts by the courts below and tocntertain a second appeal
without framing substantial question of law.
In Transmission Corporation of A.P. Vs, Ch. Prabhakar & Ors.,
(2004) 5 SCC 551, the Hon'ble Supreme Court held that appeal is the right
of entering a superior court and invoking its aid and interposition to redress.
an error of the court below, The right of appeal has been recognised by
Judicial decisions as a right which vests in a suitor at the time of institution
of original proceedings, and it is the institution of the suit which by
implication carries with it all rights of appeal then in force or preserved to
the parties thereto till the rest of the earrier of the suit, The right of appeal
exists as on and from the date of the lis commences and although it may be
actually exercised when the adverse judgment is pronounced, such right is
to be governed by the law prevailing at the date of the institution of the suit
or proceeding and not by the Law that prevails at the date of its decision or at
the date of filing of appeal, The vested right of appeal can be taken away
Only by a subsequent enactment if it so Provides expressly or by necessary
intendment and not otherwise. While deciding the case, the Hon'ble
Supreme Court placed reliance upon its earlier judgment in Garikapati
Veeraya Vs. N. Subbiah Choudghry, AIR 1957 SC 540.
Existence of substantial question of law is a condition precedent for
entertaining the second appeal, (Vide Sarjas Rai Vs. Bakshi Inderject Singh,
(2005) 1 SCC 598.
CeM CPC. Reference ia Amendment Acts—1999 & 2002
Section 102 provides that no second appeal would lie where the subject
matter of the original Suit for recovery of moncy is not exceeding
Rs.25,000/-. The question may arise that the judgment might have been
delivered prior to the date of amendment, i.c., 1°* July, 2002, but if the
appeal has not been filed and the amount is less than Rs.25,000/- of
valuation, whether appeal would be maintainable under Section 102 C.P.C?
In Gujarat State Electricity Board Vs. Shanti Lal R. Desai, AIR
1969 SC 239, the Hon'ble Supreme Court held that Section 6 of the
General Clauses Act, 1897 protects only the “accrued rights” which
have not specifically been taken away by the amended Act and it also
saves the previous operation of an enactment so repelled.
Section 6 of the Act, 1897 protects the “accrued rights” of the litigant
if'an Act is amended in spite of the fact that certain provisions have
been repelled, unless. a different opinion appears from the amended Act.
Clause (c) thereof is relevant as the repeal shall not “affect any
right, privilege, obligation of liability acquired, accrued of incurred
under any enactment so repelled."
In Lalji Raja & Sons Vs. Firm Hansraj Nathuram, AIR 1971 SC
974, the Apex Court held that a party secking the benefit of Section 6 of
the Act, 1897 has to satisfy that a right had accrued in his favour under
the repelled law which has expressly not been taken away by the
amending Act. That a provision to preserve the “right accrued” under a
repelled Act was notintended to preserve the abstract rights
conferred by the repelled Act. It only applies to specific right given to.an
individual upon happening of one of other of the events specified in the
Statute. While deciding the said case, the Court relied upon the
judgments in Hamilton Gell Vs, White, (1922) 2 KB 422; Abbat Vs.
Minister of For Lands, 1895 AC 425; and G. Ogden Industries P.
Lid. Vs. Lucus, (1969) 1 AILE.R. 121.
In M.S. Shivananda Vs. K.S.R.T. Corporation & ors., AIR
1980 SC 77, the Hon'ble Supreme Court held that a party, secking the
benefit of Sec. 6 of the Act, 1897, has to show that it had acquired any
vested right under the repelled Act which has not been taken away
expressly by the repelling Act. In the said case, the Apex Court
considered the right of absorption of the employees working under the
seecrc Reference to Amendment Acts—1999 & 2002 a7
contract in view of the provisions of Karnataka Contract Carriage
(Acquisition) Act, 1976, which fepelled the Ordinance of 1976 with
retrospective effect and the Court held that even if there was any vested
right of the employees for absorption under the said Ordinance, it had
been taken away by the Act and, therefore, Section 6 of the Act, 1897 had
no application.
In T. Barai Vs. Henry Ah Hoe & Anr., AIR 1983 SC 150, the
Hon'ble Supreme Court considered the effect of amendment of 1976 in
the Prevention of Food Adulteration Act, 1954 and held that in case of a
simple repeal, there is Scarely any room for expression of a contrary
opinion, but when the repeal is followed by fresh legislation on the same
subject, the Court must look to the Provisions of the New Act for
determination as to whether they indicate different intention for
the purpose of considering the application of Section 6 of the Act,
1897. While deciding the said case, the Apex Court placed reliance
upon its earlier judgment in State of Punjab Vs. Mohar Singh, AIR 1955
SC 84, wherein the Court had elaborately dealt with the effect of repeal
and held that the Court must find out whether the New Act has
destroyed the “rights accrued” to a party under the Old Act.
In Commissioner of Income Tax Vs. M/s. Shah Sadiq & ors., AIR
1987 SC 1217, the Hon'ble Supreme Court held that where the accrued
and vested rights under the repelled Act are neither expressly saved nor
expressly or impliedly taken away by the repealing Act, the same
would continue to be effective and enforceable. In the said case, the Saving
Provision was not exhausted of the rights which had been saved or
Survived, the repeal of the statute under which such rights had accrued,
In Ambalal Sarabhai Enterprises Lid. Vs. Amrit Lal & ors., (2001)
§.SCC 397, the Apex Court held that in order to determine whether the
Provisions of Section 6 of the Act, 1897 are attracted, the Courts have to
vested right. The Court further observed that the accrued right in terms
of Section 6 (c) of the Act, 1897 tefers to any right which may not be
limited as a vested right but is limited toan accrued right which may be
very wide, depending Upon the facts and circumstances of a case for the
reason that Section 6 covers all kind of rights and privileges embodiedx” CPC. Reference to Amendment Acts—1999 & 2002
from Clause (a) to (e) of Section 6 and those rights and privileges under it
are limited to that which are acquired and accrued.
In Kanaya Ram Vs, Rajendra Kumar, AIRI985 SC 371, the
Hon'ble Apex Court held that a mere right to take advantage of the
provisions of an Act is not an accrued right. A “right” comprehences
every right known to the law as it includes corporial and incorporial
right. "Right" means an interest duly recognized and protected by law.
A mere hope or expectation or liberty to apply for acquiring a right, is not a
right accrued.
In Mithilesh Kumari Vs. Prem Bihari Khare, AIR 1989 SC 1247,
the Hon'ble Supreme Court held that even during pendency of an
appeal, if a Statute comes into operation, the Court can take judicial
notice of it and give effect to its provisions unless contrary is provided.
The Court further observed that where there is aright, there is a remedy,
but if the remedy is barred, the right is rendered unenforceable. In
this way, the Statute becomes adisabling statute and it may affect
indiscriminatory of the persons having such rights, A right is a legally
protected interest.
The said judgment was not found based on sound reasons and was
‘over-ruled regarding the retrospective application of the provisions of
Section 41) and 4(2) of the Benami Transaction (Prohibition) Act, 1988,
in R. Rajagopal Reddy Vs. P. Chandrashekharan, AIR 1996 SC 238 and
it was held that the said provisions would apply prospectively and
pending suits were saved. Similar view has been reiterated in C.
Gangacharan Vs, C. Narainan, AIR 2000 SC 589,
In Gajraj Singh Vs. State Transport Appellate Tribunal, AIR 1997
SC.412, the Hon'ble Supreme Court, after considering a large number of
judgments, including that of Indian Tobacco Co. Ltd. Vs, Commercial
Taxes Officer, AIR 1975 SC 155, held that if the intention in enacting
either expressly oF by necessary implication in the subsequent statute,
was to abrogate of wipe off the former enactment wholly or in part, then
it would be a case of total pro tanto repeal. The Court further observed
as under:-
"Section 6 of General Clauses Act would
be applicable in such cases unless the new
CCCCAP.C Reference to Amendment Actx—1999 & 2002 »
legislation manifests intention inconsistent
with or contrary to the application of the
section, Such incompatibility would have
to be ascertained from all relevant provisions
of the new Act.... The object of repeal and re-
enactment isto obliterate the Repelled Act
to get rid of certain obsolete matters."
In Union of India & ors. Vs, Indian Charge Chrome & Anr.,
(1999) 7 SCC 314, the Supreme Court held that mere pendency of an
application does not govern the law applicable and it is the relevant law
Prevailing on the date of decision-making which has to be applied.
In Anant Gopal Sheorey Vs. State of Bombay, AIR 1958 SC
915, the Hon'ble Supreme Court held that no person has a vested right in
any course of procedure. [tis the law and the manner Prescribed for the
time-being by or for the Court in which the case is pending and if by the
Act of the Parliament the mode of procedure is altered, he has no other
right other than to proceed according to the altered mode. In other
words, the change in law of Procedure operates retrospectively and
unlike the law relating to vested right, is not only prospective.
In Kolhapur Cane-sugar Works Ltd. Vs. Union of India & ors.,
AIR 2000 SC 811, a Constitution Bench of the Hon'ble Supreme Court
has categorically held that Section 6 of the General Clauses Act applies
to repeals and not to omission and applics when the repeal is of an Act or
Regulation and not of a rule, meaning thereby that the provisions are not
attracted in case of an omission of a rule and its effect on pending
Proceedings would depend upon savings applicable. The Court has to look
into the provisions of mew Act introduced after omission.
‘Thus, in view of the above, it becomes crystal clear that for attracting
the provisions of Section 6 of the Act, 1897, a party has to satisfy the
‘Court that an accrued right exists in his favour because of pendency of the
lis and that had not been taken away by the New Act expressly or
impliedly while repealling the old provision. “Accrued”, as per
dictionaries meaning, means “to arise or spring as a natural growth or
result; coming as a natural accession or result; arising in due course.” It
refers to" the existence of a present enforceable right” or “fixed” or
ee _—_— ae40 CP. Reference to Amenament Acts—1999 & 2002
“assessed and determined.” (Vide Gobind Ch. Panda Vs. Darshan Ch.
Rout & ors., AIR 1970 Ori, 15; and Mahendra Prasad Vs. Election
Officer, AIR 1976 Ori. 1). The case is required to be examined in view
thereof.
‘The amendment in Section 102 of the Code has been made by Section
5 of the Code of Civil Procedure (Amendment) Act, 2002, and the
amended provisions read as under:-
“Sec. 102; No second appeal in certain
‘cases: No second appeal shall lie from any
decree when the subject-matter of the original
suit is for recovery of moncy not exceeding
Rs. 25,000/-."
Section 16 of the said Amendment Act, 2002 provides for Repeal
and Savings and relevant part thereof is as under:~
(2) Notwithstanding that the
provisions of this Act have
come into force of repealed under
sub-section (1) has taken effect, and
without prejudice to the generality of
the provisions of Section 6 of the
General Clauses Act, 1897:-
(a) The provisions of Section 102
of the Principal Act, as substituted
by Section § of this Act, shall
not apply to or affect any appeal
which had been admitted before
the commencement of Section 5,
and every such appeal shall be
disposed of as if Section 5 had not
come into force...”
Thus, it is evident from the aforesaid clauses that even if there is a
right accrued under Section 6 of the Act, 1897, that had been taken away
by the Amendment Act, 2002 in those cases where the appeals have not
been admitted before the commencement of the Amendment Act, Le.
from 1-7-2002.
MCMCcrc Reference to Amendment Acty—1999 & 2002 4
Section 113 provides for reference of the question for determination to
the High Court. The civil court if feels that a Case requires a substantial
question of law to be decided by the High Court, it may make a reference to
the High Court for authoritative decision, It generally deals with the validity
of the provisions of an Act, Ordinance or Regulation etc,
Section 114 deals with review and is guided by Order 47 Rule 1. Its
scope is limited to the extent that there must be an error apparent on the face
of the record on new facts which came to the knowledge of the party and he
could not know, with due diligence at the time of decision of the case,
Section 115 deals with the revisional power of the High Court. This
Provision has been amended vide Act of 1999 deleting certain provisions of
the Section.
Section 122 empowers the High Court to make rules. The scope of
power of the High Court to frame rule has widely been dealt with by the
Hon'ble Supreme Court in Aboobacker Babu Haji Vs. Edakkode
Pathummakutty Umma, (2004) 11 SCC 183,
Section 148 provides for extending the period to do any particular act
by the party. Earficr, there was no such restriction of time, but by the
Amendment of 1999, the courts’ Power has been limited not to extend the
time beyond 30 days in total. (Vide Lachmi Narayan Marwary & Ors. Vs.
Balmakund Marwary & Anr., AIR 1924 PC 198; Dandapani Goudu Vs.
Khetrabasi Goundu, 1972 (2) Cur LR, 1428; B. Channabyre Gowda &
Ors, Vs. State of Mysore, AIR 1974 Kar 136; Nareshchandra Chinubhai
Patel Vs. The State of Gujarat & Anr., AIR 1977 Guj 109;
Chinnamarkathian alias Muthu ‘Gounder & Anr, Vs. Ayyavoo alias Periana
Gounder & Ors., AIR 1982 SC 137; Jogdhayan Vs. Babu Ram, AIR
1983 SC 57; Smt, Periyakkal & Ors. Vs. Smit. Dakshyani, (1983) 2 SCC
127; Pahali Raut Vs. Khulana Bewa & Ors, AIR 1985 Ori 165; Abdul
Gaffar Vs, Shahid Hussain, 1991 (2) RLW 1, and Mohammed Yousuf
Vs. Bharat Singh, AIR 1999 Raj 185).
In Skipper Tower (P) Ltd. Vs, Skipper Bhawan Flat Buyers’
Association, (2002) 10 SCC 116, the Court held that it is the discretion of
the Court and the Party or his counsel cannot ask for adjournment or
extension of time for any reason w
LL,42 (CPC. Reference to Amendment Acts—1999 & 2002
In Vareed Jacob Vs. Sosamma Geevarghese, AIR 2004 SCC 3992, the
Apex Court held that it is the discretion of the Court and the Court can
enlarge the time in exercise of its ancillary power.
Section 151 confers the inherent power upon the civil court. Tt cannot
be resorted to deal with an application for which there is a statutory
provision. Thus, it is only in exceptional circumstances where there is no
other remedy available under any statutory provisions. For example, power
‘to grant temporary injunction is under Order 39 Rules | and 2 of the Code,
court cannot exercise the power and grant injunction under Section 151
CPC. (Vide Arjun Singh Vs. Mohindra Kumar, AIR 1964 SC 993; Nain
Singh Vs. Koonwarjee & Ors., AIR 1970 SC 997; and State of West
Bengal & Ors, Vs. Karan Singh Binayak, (2002) 4 SCC 188).
Consolidation of Suits is not provided under any other provision of the
(Code, thus, it can be done in exercise of the powers under this Section.
In Shambhoo Dayal V. Chandra Kali Devi & Ors, AIR 1964 All 350,
the Allahabad High Court held that in all, suits can be consolidated provided
common question of fact and law are arising and it will not be a case of
misjoinder of parties.
Similar view has beea reiterated in Ranjit Kumar Pal Chowdhury Vs.
Murari Mohan Pal Chowdhury, AIR 1958 Cal 710; and Mst. Ramdayee
Vs. Dhanraj Kochar & ors., AIR 1972 Cal 313, observing that the rule of
multifariousness is a rule of convenience and it is primarily in the discretion
of the court to decide whether the plaintiff should be allowed to proceed
with different causes of action in the same suit upon a consideration of all
the facts and circumstances of the case.
In M/s Bokaro & Ramgur Ltd. Vs. The State of Bihar & Ors., AIR
1973 Pat 340 and in Nani Gopal Bandhyopadhyaya & Ors. Vs. Bhola Nath
Bandhyopadhyaya é& ors., AIR 1973 Pat 437, it has been held that the
Court has inherent discretionary power to consolidate the suits in exercise
of powers under Sec. 151 CPC provided there is sufficient uniformity oF
similarity in the matters in issue in the suits or determination of suits rest
mainly on the common question and it is convenient to try them as
analogous cases. In the former case, the Hon'ble Patna High Court held as
under : -
“The question to be considered should
also be as to whether or not the non-
eeecrc Reference to Amendment Acts—1999 & 2002 43
consolidation of two or more suits is likely to
Jead apart from multiplicity of suits, to leaving
the door open for conflicting decisions on the
same issue which may be common to the two
Of More Suits sought to be consolidated,
» =. the convenience of the parties and the
expenses in the two suits are subsidiary to the
more important considerations, namely,
whether it will avoid multiplicity of suits and
sliminate chances of conflicting decisions on
the same point."
In the State of Rajasthan Vs. Motiram, AIR 1973 Raj 223, the Court
took the view that the applicant must satisfy the Court that in case the order
of consolidation is not passed it would prejudice the party and would result
in failure of justice and he must show that how the Separate judgments and
decree, if passed, would be void or ineffective as the whole object of
inherent exercise of power under Sec. 151 CPC, in absence of any specific
Provision for consolidation of suits, is only to avoid multiplicity of
Proceedings and to prevent delay and unnecessary costs and expenses. By
consolidation, it cannot be inferred that the Court after consolidation ceases
to have jurisdiction to dispose of the consolidated suits Separately.
In Harischandra & Anr. Vs, Kailashchandra & Anr,, AIR 1975 Raj 14,
the Court considered the aspect of 0.2, R. 2 CP.C. providing for bar on
subsequent suit and held that bar under the said Provision does not come
into play when two or more suits are filed at the same time, on the same
day, in the same Court with the entire cause of action, if included in one
suit. However, the proper procedure in such eventuality would be to
consolidate them in excrcise of inherent exercise of powers under Sec. 15]
CRS,
In Dr. Guru Prasad Mohanty & ors. Vs, Bijoy Kumar Das, AIR 1984
‘Ori 209 dealing with the similar Provision the Orissa High Court held that
the policy of law is to obviate the possibility of two contradictory decisions
in respect of the same relief and the object of consolidation of suits is to
avoid multiplicity Of proceedings and unnecessary delay and protraction of
litipatia CPC. Reference to Amenciment Acts—1 999 & 2002
In Vishnu Kumar Ws. Smt. Sohni Devi & ors., 1995 DNJ (Raj) 684,
the Court examined a case where the trial court has rejected the application
to consolidate two separate suits on the ground that though the subject
matter involved in both the suits was similar and the parties were also
identical but plaintiff had no locus standi to bring that suit and that matter is
not in the other suit, hence both suits were not identical and no
consolidation was permitted. This Court after placing reliance upon its
earlier judgment in Pratap Singh Vs. Madan Lal & Anr., 1992 (2) CLC 702
held that for consolidation of suits certain conditions have to be fulfilled
including that the parties must be identical and the tights to be determined
must also be identical and in case both the conditions are not fulfilled,
consolidation is not permissible.
Similar view has been reiterated in Shew Narayan Singh Vs.
Brahmanand Singh & Ors., AIR 1950 Cal 479; Ranjit Kumar Pal
Chowdhury Vs. Murari Mohan Pal Chowdhury & Ors., AIR 1958 Cal
710; and Hans Raj Vs. Firm Hazarimal Dipa, 1959 RLW 451 gbserving
that “there must be sufficient unity or similarity in the matters in issue in
two Suits to warrant their consolidation,
In Manohar Lal Chopra Vs. Rai Bahadur Rao Raja Seth Hiralal, AIR
1962 SC 527 it has been held as follows:-
“There is difference of opinion between
the High Courts on this point. One view is that
a Court cannot issue an order of temporary
injunction if the circumstances do not fall
within the provisions of Order 39 of the Code:
Varadacharlu Ws. Narasimha Charlu, AIR
1926 Mad 258; Govindarajulu Vs. Imperial
Bank of India, AIR 1932 Mad 180;
Karuppayya Vs. Ponnuswami, AIR 1933
Mad $00; Murugesa Mudali Vs. Angamuthu
Mudali, AIR 1938 Mad 190; and
Subramanian Vs. Seetaramma, AIR 1949
Mad 104, the other view is that a Court can
issue an interim injunction under
circumstances which are not covered by Order
39 of the Code, if the Court is of opinion thatcrc4
(CPC. Reference to Amendment Acts—1999 & 2002
the interests of justice require the issue of such
interim injunction; Dhaneshwar Nath Vs.
Ghansahyam Dhar, AIR 1940 All 185; Firm
Bichchha Ram Baburam Vs. Firm Baldeo
Sahai Surajmal, AIR 1940 All 241; Bhagat
Singh Vs. Jagbir Sawhney, AIR 1941 Cal 670
and Chinese Tannery Owners’ Association Vs.
Makhan Lal, AIR 1952 Cal 560, We are of
opinion that the latter view is correct and that
the Court have inherent jurisdiction to issue
temporary injunction in circumstances which
are not covered by the provisions of Order 39
CP.C., there is no expression in Section 94
which expressly prohibits the issue of
temporary injunction in circumstances not
covered by Order 39 or by any rule made
under the Code. It is well-settled that the
Provisions of the Code are not exhaustive, for
the simple reason that the Legislature is
incapable of contemplating all the possible
circumstances which may arise in future
litigation and Consequently for providing the
Procedure for them. The effect of the
expression ' if it is so prescribed’ is only this
that when the rule prescribes the circumstances
in which the temporary injunction ean be
issued, ordinarily the Court is not to use its
inherent Powers to make the necessary orders
in the interests of justice, but is merely to see
whether the circumstances of the case bring it
within the prescribed rule. If the provisions of
Section 94 were not there in the Code, the
Court could still issue temporary injunction,
but it could do that in the exercise off its
inherent jurisdiction. No party has a right to
inherent jurisdiction only when it considers it
absolutely necessary for the ends of justice to46 CP.C. Reference fo Amendment Acts—1999 & 2002
do so. It is in the incidence of the exercise of
the power of the Court to issue temporary
injunction that the provisions of Section 49 of
the Code have their effect and not in taking
away the right of the Court to exercise the
inherent power.”
Orissa High Court in another case Krushna Chandra Mohapatra Vs.
Chakrakata Jagannath Kbuntia, (1972) 38 Cut LT 217 while considering the
scope of Section ISlof the Code of Civil Procedure observed that when the
grounds are not covered by Order 39 of the Code, strictly speaking there
may be,no bar for the Court to exercise inherent power in granting
temporary injunction, provided the interest of justice requires the issue of
the same. In view of what has been decided by the Apex Court in the case
of Manohar Lal Chopra, AIR 1962 SC 527 there cannot be any doubt in the
mind that this Court can exercise jurisdiction under Section 151 of the Code
and pass an order of injunction. (Vide Haraparbati Thakurani Bije Vs.
Ramakanta Gupta, ATR 2002 Ori 89).
In Vareed Jacob Vs. Sosamma Geevarghese & Ors., AIR 2004 SC
3992 the ‘Apex Court held that the powers of the Court are inherent and in
addition to and complementary to the powers of redressal conferred under
C-P.C,, but that power cannot be exercised if for the redressal of a particular
grievance a particular provision of C-P.C. provides for the remedy, and the
court can also exercise the power under Section 151 if the circumstances so
demand to do justice, While deciding the said case reliance had been placed
‘on Ram Chand & Sons Sugar Mills (P) Lid. Vs. Kanhayalal Bhargava,
AIR 1966 SC 1899 and Jagjit Singh Khanna ‘Vs. Dr. Rakhal Das Mullick,
AIR 1988 Cal 95.
The powers under Section 15] C.P.C, can be exercised for doing justice
and for purposes of which no specific provision has been made, i.€., a8 for
consolidation of suits etc. (Vide Chitivalasa Jute Mills Ws. Jaypee Rewa
Cement, ATR 2004 SC 1687; and Atma Ram Proprietaries (P) Lid. Vs.
Federal Motors (P) Lid., (2005) 1 SCC 705).
Section 152 deals with correction of typographical and arithmetical
mistakes in a judgment and decree. But under the garb of this exercise of
power court cannot change the order itself, (Vide Rai Jatindra Nath
Chowdhury Vs. Uday Kumar Das & Ors., AIR 1931 PC 104; SethCPC Reference to Amendment Acts—1909 & 2002 a7
Manakchand Vs. Chaube Manoharlal & Anr., AIR 1944 PC 46: LL.
Janakirama Iyer & Ors. Vs. P.M.. Nilakanta lyer & Ors., AIR 1962 SC
633, Grindlays Bank Ltd. Vs. The Central Government Industrial Tribunal
& Ors., AIR 1981 SC 606; Satnam Verma Vs. Union of India & Ors.,
AIR. 1985 SC 294; State of Bihar Vs. Nilmani Sahu, (1996) 11 SCC 528;
Baj Shakriben Vs. Special Land Acquisition Officer, (1996) 4 SCC $33;
Dwaraka Das Vs. State of Madhya Pradesh, AIR 1999 SC 1031: K.
Rajamouli Vs, A. V.K.N. Swamy, (2001) $ SCC 37: Jayalakshmi Coelho
Vs. Oswald Joseph Coelho, AIR 2001 SC 1084; M/S Plasto Pack Mumbai
Vs. Ratnakar Bank Limited, (2001) 6 SCC 689; Lakshmi Ram Bhuyan Vs.
Hari Prasad Bhuyan & Ors., (2003) | SCC 197; and State of Punjab Vs,
Darshan Singh, (2004) 1 SCC 328).
These are the general outlines of the Code of Civil Procedure, but
always remember the dictum of the Hon'ble Supreme Court in cases M/s
Ganesh Trading Company Vs. Mauji Ram, AIR 1978 SC 484: Har Charan
Vs. State of Haryana, AIR 1983 SC 43; and Jai Jai Ram Manohar Lal Vs.
National Building Material Supply Gurgaon, AIR 1969 SC 1267 that
Procedural law is intended to facilitate and not to obstruct the course of
substantial justice. Court must be justice oriented and should grant relief
without giving much importance to the rules of the procedure.
Order 1 Rule 3 provides who are the Mecessary parties in a Suit. A
Person who is not a party in the proceeding is not bound by any judgment
or decree as the order against him is in violation of the principles of natural
justice. There may be a party necessary, Proper and/or improper, therefore
the concept of joinder, non-joinder and mis-joinder of parties has always
been very relevant.
Nearly a Constitution Bench of the Hon'ble Supreme Court in Udit
Narain Singh Malpaharia Vs Member, Board of Revenue Bihar, AIR 1963
SC 786, has explained as who are the necessary parties and without whom
the Suit shall not be maintainable. A hecessary party is one without whom
no order can be made effectively, Proper party is one whose presence is
Necessary for a compléte and final decision. Suit fails for-pon-joinder of
Necessary partics. A Constitution Bench in U.P, Awas Evam Vikas
Parishad Vs. Gyan Devi, AIR 1995 SC 724 reiterated the same view. In
Iswar B.C. Patel Vs. Harihar Behera, AIR 1999 SC 1341, the Apex Court
observed that question of joinder of Partics involves joinder of causes of
action,
Caer43 CPC. Reference to Amendment Acts—1999 i 2002
Order 1, Rule 8 provides that persons may be impleaded in
representative capacity where they are in large number but having the same
interest with the provision of the court. (Vide Diwakar Shrivastava & Ors.
Vs. State of Madhya Pradesh é& Ors, AIR 1984 SC 468).
Order 1, Rules 9 and 10 provide that in view of mis-joinder and non-
joinder of parties, court may proceed and decide the case. However, the
judgmentidecree shall not be binding upon a non-party.
In Ranjeet Mal Vs General Manager, Northern Railway, New Delhi &
Anr, AIR 1977 SC 1701, the Hon'ble Apex Court considered a case where
the writ petition had been filed challenging the order of termination from
service against the General Manager of the Northern Railways without
impleading the Union of India. ‘The Apex Court held as under:
“The Union of India represents the
Railway Administration. The Union carries
administration through different servants.
These servants all represent the Union in
regard to activities whether in the matter of
appointment or in the matter of removal. It
cannot be denied that any order which will be
passed on an application under Article 226
which will have the effect of setting aside the
removal will fasten liability on the Union of
India, and not on any servant of the Union.
Therefore, from all points of view, the Union
of India was rightly held by the High Court
to be a mecessary party. The petition was
rightly rejected by the High Court.”
While considering the similar view in Chief Conservator of Forests,
Government of A. P. Vs. Collector & ors; (2003) 3 SCC 472, the Hon"ble
Supreme Court accepted the submission that writ cannot be entertained
without impleading the State if relief is sought against the State. The
Hon'ble Apex Court had drawn the analogy from Section 79 of the Code of
Civil Procedure, 1908, which directs that the State shall be the authority to
be named as plaintiff or defendant ina suit by or against the Government
and Section 80 thereof directs notice to the Secretary of that State of theCPC. Reference to Amendment Acts—1999 & 2002 a9
Collector of the district before the institution of the suit and Rule | of Order
27 lays down as to who should sign the Pleadings. No individual officer of
the Government under the scheme of the constitution nor under the Code of
Civil Procedure, can file a suit nor initiate any proceeding in the name and
the post he is holding, who is not a juristic person,
‘The Court also considered the Provisions of Article 300 of the
Constitution which provide for legal Proceedings by or against the Union of
India or State and held that in a suit by or against the Government, the
authority to be named as plaintiff or defendant, as the case may be: in the
case of the Central Government, the Union of India and in the case of State
Government, the State, which is suing or is being sued.
Rule 1 of Order 27 only deals with suits by or against the Government
or by officers in their official Capacity. It provides that in any suit by or
against the Government the plaint of the written statement shall be signed
by such person as the Government may, by general or special order,
authorize in that behalf and shall be verified by any person whom the
Government may so appoint. The Court further held as under;
“It needs to be noted here that a legal
entity — a natural person or an artificial
Person- can sue or be sued in his/its own
name in a court of law or a tribunal. It is not
merely a procedural formality but is
essentially a matter of substance and
considerable significance. That is why there
are special provisions in the Constitution and
the Code of Civil Procedure as to haw the
Central Government or the Government of a
State may sue or be sued. So also there are
special provisions in regard to other juristic
Persons specifying as to how they can sue or
be sued. In giving description of a party it
will be useful to remember the distinction
between misdescription or misnomer of a
party and misjoinder or non-joinder of a
Party suing or being sued. In the case of
Cearaso CPC. Reference to Amendment Acts—1999 & 2002
misdescription of a party, the court may at
any stage of the suit/proceedings permit
correction of the cause-title so that the party
before the court is correctly described;
however, a misdescription of a party will not
be fatal to the maintainability of the
suit/proceedings. Though Rule 9 of Order |
C.P.C. mandates that no suit shall be
defeated by reason of the misjoinder or non-
joinder of parties, it is important to notice that
the proviso thereto clarifies that nothing in
that Rule shall apply to non-joinder of a
necessary party. Therefore, care must be
taken to ensure that the necessary party is
before the court, be it a plaintiff or a
defendant, otherwise, the suit or the
proceedings will have to fail. Rule 10 of
Order | C.P.C. provides remedy when a suit
is filed in the name of the wrong plaintiff and
empowers the court to strike out any party
improperly joined or to implead a necessary
party at any stage of the proceedings.”
‘The Court thus held that writ is not maintainable unless the Union of
India or the State, as the case may be, impleaded as a party.
‘A Full Bench of Kerala High Court in Kerala State represented by
Chief Secretary to Government, Trivandrum Vs. General Manager,
Southern Railway, Madras, AIR 1965 Ker 277 held that suit is not
maintainable if instituted against Railway Administration. The condition
precedent for its maintainability is that it must be instituted against the
Union of India.
‘A similar view has been reiterated by Hon'ble Apex Court in State of
Kerala Vs. General Manager, Southern Railway, Madras. AIR 1976 SC
2538.
‘A Constitution Bench of Supreme Court in State of Punjab Vs.
O.G.B,. Syndicate Lid, AIR 1964 SC 669 held that if relief is sought
aeCAC. Reference to Amendment Acts—|999 & 2002 51
against the State, suit lies only against the State, but, it may be filed against
the Government if the Government sets under colour of the Tegal title and
hot as a Sovereign Authority, ¢.g., in a case where the property comes to it
under a decree of the court.
The Rajasthan High Court in Pusha Ram Vs, Modern Construction
Co, (P) Lid., Kota, AIR 1981 Raj 47, held that to institute a suit for seeking
relief against the State, the State has to be impleaded as a party. But mis-
description showing the State as Government of the State may not be fatal
and the name of party may be permitied to be amended, if such an
application is filed.
Thus, we reach the inescapable conclusion that the writ is not
maintainable against the Government officers or the employees of the State,
it lies only against the State and if State is not impleaded, the writ/suit is not
maintainable,
Order 2, Rule 2 provides that Suit must include the whole claim. If a
relief which could have been claimed is not claimed, party cannot claim it in
a subsequent Suit. (Mohd. Khalil Khan Vs. Mahbub Ali Mian, AIR 1949
PC 78),
‘The rule is directed to securing the exhaustion of the relief in respect of
@ cause of action and not to the inclusion in one and the same action of
different causes of action, even though they arise from the same transaction.
One great criterion, when the question arises as to whether the cause of
action in the subsequent suit is identical with that in the first suit, is whether
the same evidence will maintain both actions.
A Constitution Bench of Hon'ble Supreme Court in Gurubux Singh Vs.
Bhooralal, AIR 1964 SC 1810, held that even if a party does not pray for
the relief in the earlier writ petition, which he ought to have claimed in the
earlier petition, he cannot file a successive writ petition claiming that relief,
as it would be barred by the principle of constructive res judicata
enshrined in Explanation IV to Section 11 and Order 2 rule 2 of the Code
of Civil Procedure, In Order 2 rule 2.C.P.C., as has been explained, in
unambiguous and crystal clear language by the Hon'ble Supreme Court
in M/S D. Cawasji & Co. Vs. State of Mysore, AIR 1975 SC 813;
Commissioner of Income Tax Vs. T.P. Kumaran, (1996) 10 SCC 561:
Union of India and others Vs. Punnilal & Ors., (1996) 11 SCC 112:
Kunjan Nair Sivaraman Nair Vs. Narayanan Nair, AIR 2004 SC 1761; and
tS2 CPC. Reference to Amendment Acts—1999 & 2002
Sapan Sukhdeo Sable Vs. Assistant Charity Commissioner, ATR 2004 SC
1801).
In Dalip Singh Vs. Maher Singh Rathee, (2004) 7 SCC 650, the
Hon'ble Supreme Court held that the sine qua non for applicability of Order
2 Rule 2 C-P.C. is that a person entitled to grant one relief in respect of the
same cause of action has omitted to sue for some relief without the leave of
the Court.
Similar view has been reiterated in Swami Atmananda & Ors. Vs. Sri
Ramkrishna Tapovanam, 2005 AIR SCW 2548.
Order 4 Rule 1- There is a slight change by Amendment 1999; it has
been provided that the plaint shall be filed in duplicate; and for failure, plaint
shall be rejected.
Order § Rule 1- Amendments by the Acts of 1999 and 2002 provide
that summons be issued and defendants may file the written statements
within thirty days (the time for filing the written statement has been
prescribed) from the date of service, It can be extended by the court by
recording the reasons being satisfied that there was a genuine ground for
not filing the written statements within time. But court does not have a
power to extend it beyond 90 days. The amendments also provided that
summons shall be accompanied by the copy of the plaint.
Order 5, Rule 9 (vi) has been added by amendment conferring the
power upon the High Court to prepare a panel of Courier Agencies for
service of summonses.
Order 5 Rule 9-A lays down the procedure for dasti service of
summons on defendants.
Order 5 Rule 20 provides for substituted service, Lc, by publication in
local newspaper, but it cannot be made in a routine manner.
‘The substituted service is not permissible unless the Court records the
reasons reaching the conclusion that it is not possible to serve the
defendant/respondent in an ordinary manner.
‘A Division Bench of the Calcutta High Court in Teharoonchand Vs,
‘M/s Surajmull Nagarmull, AIR 1984 Cal 82, considered the issue and held
as under:-
“Before issuing summons under Order 5, Rule
20 of the Code, the Court is to be satisfied thar
the defendant is keeping out of the way for the
iidCPC. Reference to Amendment Actr—/009 & 2002 x
Purpose of avoiding service, or that for any other
reason summons cannot be served in the
ordinary way, Before such satisfaction, the Court
has to consider the case carefully having regard
to the nature of the earlier attempts made for the
Service of summons. Mere assertion of the
plaintiff in this respect to attract the provisions of
Order 5 Rule 20 of the Code will not be cnough.
Only when the Court is satisfied from the
materials on record that there is reason to believe
that the defendant is keeping out of the way for
the purpose of avoiding service, or that for any
other reason summons cannot be served in the
ordinary way, the Court will be entitled to order
service of summons under Order 5, Rule 20 of
the Code™.
Similar view has been reiterated in Ram August Tewari & ors, Vs.
Bindeshwari Tewari & ors., AIR 1972 Pat 142.
In Ambika Prasad Vs. Kodai Upadhya, AIR 1945 All 45, this Court
Considered a case where the defendant could not be served being detained in
Jail and it was held there that in such a situation as the defendant could not
be served, the proper procedure would be to issue processes for substituted
service under Order 5 Rule 20 of the C.P.C. and then to Proceed with the
trial of the suit,
In Smt, M.L. Nagarathnamma Vs. S.R. Suryanarayan Rao, 1985
NOC 214 (Kant), the Division Bench examined a case where summons
could not be served in a suit on the defendant teacher on account of her
transfer and request was made to serve her by substituted service, The
Division Bench of the Kamataka High Court held that unless the enquiry is
held and Court comes to the conclusion that she was evading the service,
the question of serving her by substituted service did not arise.
Order 6 Rule 1 defines pleadings in a plaint and written statements. It
also includes the statements made by a party under Order 10 Rule 1.
Provisions of Order 10 Rule | Provide for ascertainment whether the
allegation in the pleadings are admitted or denied, Tt enables the Court to
ascertain from each party or his counsel whether he admits or denies such
C—O rr4 CPC Reference w Amendment Acts—1999 & 2002
allegations of facts as are made out in the plaint or written statement and
are not expressly or by necessary implication admitted or denied by the
party against whom they are made. (Vide Ved Prakash Wadhwa Vs.
Vishwa Mohan, AIR 1982 SC 816),
The oral statements so recorded become part of the pleadings. (Vide
Mis Ganga Ram Sat Narain Vs. Gyan Singh & Co. AIR 1960 Pun
209). The said statements are in the nature of supplementary
pleadings and no plea inconsistent with them can be raised at a later stage
except by way of amendment of the pleadings.
In Amrita Devi & Ors, Vs. Shripat Rai & Ors.. AIR 1962 All 111; and
Balmiki Singh Vs. Mathura Prasad & Ors.. AIR 1968 All 259, it has
been held that statements made under Order 10 Rule 1 C.P.C, are
conclusive against those who make them and become part of the
pleadings but statements made under Rule 2 may not be conclusive for
the reason that where in reply to a question by a Court a counsel for a
party inadvertently gives an erroncous reply, the Court can go into the
question to find out if the reply given was due to any inadvertence, such a
statement can be withdrawn, Similar view has been reiterated in Kailash
Chandra Vs. Ratan Prakash & Anr., AIR. 1974 All 138; and Sher Singh
& Ors. Vs. Pirthi Singh & Ors., AIR 1975 All 259.
In Raja Prithwi Chand Lall Choudhary Vs. Sukhraj Rai & Ors., 1940
FC 25, the Federal Court while dealing with the statement made under
OAR. CPC. and O11 RIA ICRC. observed as under:~
“When counsel take on themselves: the
responsibility of making statements on fact
to the Court, the Court is entitled to assume
that those statements are tree in every
particular, so that it may implicitly rely
upon them. This is a rule which needs no
clarification. Itis honorable obligation of the
Bar and of great value in the administration
of justice.”
However, in the cases referred to above, ic. Balmiki Singh and
Sher Singh (supra) and Smt Azad Kumari Vs. Satya Prakash, AIR 1983
‘All 435, the view was taken that as ©.10 R2 CP.C. does not provide for
recording the statement of counsel, even a wrong statement which has
——————_CPC Reference ta Amendment Acts—1999 & 2002 a5
been made inadvertently can be withdrawn with the leave of the Court,
Material facts have to be pleaded.
Order 6, Rule § which provided for further and better statements or
Particulars, stands deleted by an amendment.
Order 6 Rule 15 provides for verification, A Full Bench judgment of
the Allahabad High Court in Rajit Ram & Ors, Vs. Kateskar Nath & Ors.,
18 ILR (AIL) 396, wherein a plaint had been verified in the form “the
contents of the petition or plaint are truc to the best of my knowledge
and belief." The objection was raised whether such a verification could be
treated to be in accordance with law as the verification did not make any
reference to the particular paragraph of the plaint of part of the pleadings,
hor it was disclosed which part of it was based on personal knowledge or
which was based on documents, The Full Bench held that the
verification was not free from ambiguity but there was substantial
compliance of the requirement of law. More so, even if verification of the
plaint is discovered to be defective by the Court of first instance, the Court
Should ask the party to amend it. In case it is noticed by the first appellate
Court, it must ignore jt and once the trial has commenced with the
settlement of issues, the defect, if it is a defect, need not be taken note of.
The Court observed as under:
“Although the verification in the present
ease is not in strict compliance of the Code, it
substantially complies with it, and after the
trial had commenced with the settlement of
issues, the defect, if it was a defect, need not
have been taken note of... For the
Purpose of answering the remaining
questions, we will assume that verification is
defective and not in compliance of Section $2
of the Code and that it omitted to indicate
which matters were true to the knowledge of
the plaintiff and which matters, if any, were
stated on information believed ta be true.
Now, under Section $3, the Court of first
instance, only acting under the orders of the
Appellate Court, could not return the plaint to56 CPC. Reference to Amendment Acts—1999 & 2002
be amended after the settlement of issues; but
if the plaint requires amendment and the
fact was only discovered after issues had
been settled, the Court could, under Section
53 (c),amend the plaint or cause it to be
amended at any time before the judgment..... It
would be difficult to imagine any case in
which a defective verification of a plaint could
affect the merits of the case of jurisdiction of
the Court; so that practically, in our
opinion, on a mere question of defect of
verification, it is not necessary for an Appellate
Court to pay any attention or take any steps to
rectify a defect in the verification of the
document.”
Similarly, a Constitution Bench of the Hon'ble Supreme Court, in
Murarka Radhey Shyam Ram Kumar Vs. Roop Singh Rathore & Anr.,
AIR 1964 SC 1545, considered the case wherein in verification of the
Election Petition, it had not been stated that the advice and information
received was believed by him to be true. The Court held as under:
“It seems clear to us that reading the
relevant sections in part VI of the Act, it is
impossible to accept the contention that a
defect in verification, which is to be made in
the manner laid down in the Code of Civil
Procedure, 1908 for the verification of
pleadings as required by Clause (c) of Sub-
section (1) of Section 83, is fatal to the
maintainability of the petition,”
The same view has been reiterated in F.A.
Sapa & Ors. Vs. Singora & Ors., AIR 1991
SC 1557, wherein the Hon'ble Supreme Court
considered the case of amendment of
material particulars and observed that it should
be granted by the Court liberally in the facts
and circumstances of the case if the CourtCPC Reference to Amendment Acts— 1999 & 2002 ST
comes to the conclusion that it would be
unjust and prejudicial to the ‘Opposite party to
allow the same, however, such Prejudice must
be distinct from mere inconvenience. So far as
defect in the verification is concemed, the
Court held that mere defect in the verification
of the clection petition is not fatal to the
maintainability of the election petition and it
cannot be thrown out solely on that Bround,
rather it should be cured,”
The Hon'ble Apex Court remanded the cases to the High Court for
issuing appropriate directions to cure the defect in verification within a
stipulated period and only in case the same is not cured, consequential order
be passed in accordance with law,
In H.D. Revanna Vs. G. Puttaswamy Gowda & Ors, AIR 1999 SC
768, the Hon'ble Supreme Court held that the defect in verification of the
election petition or the affidavit accompanying the election petition, is
‘curable and not fatal.
In V. Narayanaswamy Vs, C.P. Thirunavukkarasu, AIR 2000 SC 694,
the Hon'ble Supreme Court held that in case the election petition is
based on cormpt practice, the existence of material facts, material
Particulars, correct verification and affidavit are relevant and important
and in absence thereof, the Court has jurisdiction to dismiss the petition.
“The High Court has, undoubtedly, the power to permit amendment of the
Petition for supply of better material particulars and also to require
amendment of the verification and filing of the required affidavit but there
is no duty cast on the High Court to direct suo mom the furnishing of
better particulars and Fequiring amendment of the Petition for the
Purpose of verification and filing a Proper affidavit. In a matter of this kind,
the primary responsibility for furnishing full Particulars of the alleged
corrupt practices and to filing of petition in full compliance of the
Provisions of law is_on the petitioner.” However, there is a distinction as
such a requirement is only for the Election Petition based on corrupt
Practice,
Want of verification or defect therein cannot make the pleading void
and a Suit cannot be dismissed on that ground forthe reason that this is a8 CPC. Reference ta Amendment Actr—1999 & 2002
matter of procedure only, (Vide All India Reporter Lid., Bombay with
Branch Office at Nagpur & Anr. Vs. Ramachandra Dhondo Datar, AIR
1961 Bom 292; Purushottam Umedbhai and Co. Vs. M/s Manilal and.
Sons, AIR 1961 SC 325; and Karam Singh Vs, Ram Rachhpal Singh
& Ors., AIR 1977 HP 28). The defect in verification has always been
treated as a mere irregularity and curable by amendment at any stage of
the proceeding. (Vide Nand Kishore Rai & Anr. Ws. Mst. Bhag Kuer &
(Ors., AIR 1958 AIL 329).
‘A Constitution Bench of the Hon'ble Supreme Court, in Dinabandhu
Sahu Vs. Jadumoni Mangaraj & Ors., ATR 1954 SC 411, over-ruled the
objection that election petition with defective verification could not be
accepted. In the said case, the Election Tribunal had directed the
petitioner to cure the defect in verification by a particular date and the
argument had been that the Tribunal ought to have dismissed the petition on
the ground of defective verification.
In Sangram Singh Vs. Election Tribunal, Kotah & Anr., AIR 19535
SC 425, the Hon'ble Supreme Court dealt with the provisions of the Code
applicable in trial of election petition and made the following
observations:=
"Now Code of Procedure must be
regarded as such. Its ‘procedure’,
something designed to facilitate justice and
further its ends; not a penal enactment for
punishment and penalty; nota thing designed
to trip people up. Too taking a consideration
of sections that leaves no room — for
reasonable elasticity of interpretation, the
‘Tribunal be guarded against (provided always
that justice is done to ‘both’ sides) lest the very
means designed for the furtherance of justice
be used to frustrate it.”
Placing reliance upon the said judgment in Sangram Singh (supra),
the Hon'ble Supreme Court, in Ghanshyam Das Vs, Dominion of India
& Ors., (1984) 3 SCC 46, held that when substantial justice and
technicalities are pitted against each other, the cause of substantial
justice should not be defeated on technicalities for the reason that “our lawscrc Reference to Amendment Acts—1909 & 2002 s
and procedure are based On the principle that as far as Possible, no
proceeding in a Court of law should be allowed to be defeated on some
The Constitution Bench of the Hon'ble Supreme Court, in Bhikaji
Keshao Joshi Anr, Vs. Brijlal Nandlal Biyani & Ors.. AIR 1955 SC
610, after considering various Provisions and earlier judgments, held
that so far as verification is concemed, substantial compliance is
necessary for the reason that the elections should not be set-aside merely
as an abuse for the purpose of maligning the successful candidate by
leveling vague, false and irresponsible charges against him. However,
the petition cannot be dismissed in the early stages and the Tribunal
should ask for furnishing the better Particulars and only in case of non-
compliance of such order, it could strike out of such of the charges which
remain vague and can call upon the Petitioner to substantiate the allegations
in respect of those which are reasonably specified.
In S.R. Ramraj Vs. Special Court Bombay, AIR 2003 SC 3039, the
Court observed that while making the verification, a person is under legal
obligation to verify the averments of fact made in the plaint correctly, and
in case he verifies falsely, he may be held responsible for Perjury and
Contempt of Court.
Order 6 Rule 15 (4) provides for affidavit in support of pleadings, vide
Amendment Act 1999,
Order 6 Rule 16 provides striking down of frivolous and very
‘vexatious pleadings,
Order 6 Rule 17 provides amendment of the pleadings. By
Amendment of 2002, a Proviso has been added that amendments should
generally be allowed at the stage of Pre-trial of the Suit, But subsequent
thereto, the court must be satisfied as to why the pleadings could not be
brought in, unless it was based on Subsequent developments,
The issue involved herein is being considered by the courts every day.
Amendment in the Pleadings may generally be allowed and the
amendment may also be allowed at a belated stage. However, it should not
cause injustice or prejudice to the other side, The amendment sought
should be necessary for the purpose of determining the real question in
Controversy between the parties, Application for amendment may be
rejected if the other party cannot be placed in the same position as if the“ CP.C. Reference ta Amendment Acts—1999 & 2002
pleadings had been originally correct, but the amendment would cause
him injury which could not be compensated in. terms of cost or change
the nature of the Suit itself as it cannot be permitted to create an entirely
new case by amendment. A right accrued in favour of a party by lapse
of time cannot be permitted to be taken away by amendment. Amendment
can also be allowed at appellate stage. Introduction of an entirely new case,
displacing even admission by a party is not permissible. (Vide Pirgonda
Hongonda Patil Vs. Kalgonda Shidgonda Patil & Ors., AIR 1957 SC
363; Nanduri Yogananda Laxminarsimhachari & Ors. Vs. Sri Agasthe
Swarswamivam, AIR 1960 SC 622; M/s Modi Spinning & Weaving
Mills Co. Ltd. Vs. M/s Ladha Ram & Co. AIR 1977 SC 680;
Ishwardas Vs. State of M.P., AIR 1979 SC $51; and Mulk Raj Batra Vs.
District Judge, Dehradun, AIR 1982 SC 24).
Similar view has been reiterated in G. Nagamma & Ant. Vs.
Siromanamma & Anr., (1996) 2 SCC 25, B-K. Narayana Pillai Vs.
Parameshwaran Pillai & Anr., AIR 2000 SC 614. However, 4 party
cannot be permitted to move an application under Order 6 Rule 17 of the
Code after the judgment has been reserved. (Vide Arjun Singh Vs.
Mohindra Kumar & Ors., AIR 1964 SC 993).
‘A Constitution Bench of the Hon’ble Supreme Court in Municipal
Corporation of Greater Bombay Vs. Lala Pancham & Ors, AIR 1965 SC
1008, observed that even the court itself can suggest the amendment to the
parties for the reason that main purpose of the court is to do justice, and
therefore, it may invite the attention of the parties to the defects in the
pleadings, so that same can be remedied and the real issue between the
parties may be tried. However, it should not give rise to entirely a new case.
In Jagdish Singh Vs. Natthu Singh, AIR 1992 SC 1604, the Hon'ble
Supreme Court held that the Court may allow to certain extent even the
conversion of the nature of the Suit, provided it does not give rise to entirely
a new cause of action. An amendment sought in a plaint filed for specific
performance may be allowed to be done without abandoning the said relief
but amendment secking for damages for breach of contract may be
permitted.
If the plaintiff wants to add certain facts, which the plaintiff had not
chosen to mention in the original plaint and the same had been in his
knowledge when the plaint was instituted, the plaintiff cannot be allowedcrc Reference to Amendment Acts—1999 & 2002 ol
to make fresh allegation of facts by way of amendment at a belated
stage. {Vide Gopal Krishanamurthi Vs. Shreedhara Rao, ATR 1950 Mad.
32; and Gauri Shankar Vs. M/s Hindustan Trust (Pvt) Ltd., AIR 1972
SC 2091),
In Union of India & Ors. Vs, Surjit Singh Atwal, AIR 1979 sc
1701, the Apex Court held that in case of gross delay, application for
amendment must be rejected.
It is settled legal proposition that if a right accrued in favour of a party,
as the order impugned has not been challenged in time, the said right
Cannot be taken away by seeking amendment in Pleadings. (Vide
Radhika Devi Vs. Bajrangi Singh, AIR 1996 SC 2358; and Dondapati
Narayana Reddy Vs. Duggireddy Venkatanarayana Reddy, (2001) 8
SCC 115).
InG, Nagamma & Ors, Vs. Siromanamma & Anr.,JT 1998 (4) Sc
484, the Hon'ble Apex Court held that in an application under Order 6
Rule 17, even an alternative relief can be sought; however, it should not
“hangs the cause of scton or materially affect the relief claimed esi
In Vineet Kumar Vs. Mangal Sain Wadhera, AIR 1985 SC 817, the
Hon'ble Supreme Court held that normally amendment is not allowed if
it changes the cause of action, but Where the amendment does not
Constitute the addition of a new cause of action, or raises a new case, but
amounts to not more than adding to the facts already on record, the
amendment should be allowed even after the Statutory period of
limitation.
In Fritiz T.M, Clement & Anr. Vs. Sudhakaran Nadar & Anr.,
AIR 2002 SC 1148, the Hon'ble Supreme Court held that in case the
original plains is cryptic and amendment Sought to incorporate about
some undisputed facts slaborating plaintiff's claim is based on the said
admitted facts, amendment should be allowed as it would place the
defendant in a better Position to defend and would certainly not
Prejudice his cause. More so, if the claim does not challenge the nature of
the relief and rate of fee etc. is challenged without challenging the total
amount claimed, such amendment may be allowed even at a belated stage,
In Gurdial Singh Vs. Raj Kumar Aneja, (2002) 2 SCC 445, the
Hon'ble Supreme Court deprecated the practice adopted by the Courts
entertaining the application under O. 6 R. 17 of the Code containing very
crcs
NN AnmA—_CTC”S”C”CPC-”CSEY:“=62 CPC Reference to Amendment Acts—1990 & 2002
vague and general statements of facts without having necessary details
in amendment application enabling the Court to discern whether the
amendment involves withdrawal of an admission made earlier or
attempts to introduce a time-barred plea or claim or is intended to prevent
the opposite party from getting the benefit of a right accrued by lapse of
time, as amendment cannot be permitted to achieve the said purposes.
Similarly, in Om Prakash Gupta Vs. Ranbir B, Goyal, AIR 2002 SC
665, the Hon'ble Supreme Court reiterated the same view extending the
scope of O. 6.17 of the Code, observing that amendment should not
disturb the relevant rights of the parties those existed on the date of
institution of a Suit, but subsequent events may be permitted to be taken
on record in exceptional circumstances if necessary to decide the
controversy in issue. The Court held as under:-
"Such subsequent event may be one
purely of law or founded on facts. In the
former case, the court may take judicial notice
of the event and before acting thereon put the
parties on notice of how the change in law is
going to affect the rights and obligations of the
parties and modify or mould the course of
litigation or the relief so as to bring it in
conformity with the law. In the latter case,
the party relying on the subsequent event,
which consists of facts not beyond pale of
controversy either as to. their existence or in
their impact, is expected to have resort (0
amendment of pleadings under Order 6 Rule
17 C.P.C., Such subsequent event, the Court
may permit being introduced into the
pleadings by way of amendment as it would
be necessary to do so for the purpose of
determining real questions in controversy
between the parties, In Trojan & Co. Vs.
RM. NN. Nagappa Chettiar, AIR 1953 SC
235, this Court has held that the decision of a
case cannot be based on grounds outside theCPC Reference to Amendment Acts—1999 & 2002 63
Pleadings of the parties and jit is the case
Pleaded that has to be founded; without the
amendment of the pleadings the Court would
not be entitled to modify or alter the relief. In
Sri Mahant Govind Rao Vs, Sita Ram
Kesho, (1988) 25 IA 195 (PC), Their
Lordships observed that, as a mule, relief not
founded on the pleadings should not be
granted.”
In Muni Lal Vs. The Oriental Fire & General Insurance Co. Led., AIR
1996 SC 642, the Hon'ble Apex Court held that the relief of amendment
should be granted to “render substantial justice without causing injustice to
the other party or violating fair-play and the Court should be entitled to
Erant proper relief even at the stage of appellate forum,” Similar view has
been reiterated in Jagdish Singh Vs, Natthu Singh, AIR 1992 SC 1604,
In Smt. Ganga Bai Vs. Vijay Kumar, AIR 1974 SC 1 126, the
Hon'ble Supreme Court observed as under:-
“The power to allow an amendment is
undoubtedly wide and may, at any Stage, be
Properly exercised in the interest of justice, the
law of limitation notwithstanding, but the
exercise of such far-reaching discretionary
Power is governed by judicial consideration
and wider the discretion, greater ought to be the
are and circumspection on the part of the
Court.”
In M/s Ganesh Trading Co. Vs, Maoji Ram (Supra), the Hon'ble
Supreme Court observed that where amendment is found to be
Necessary for promoting the ends of justice and not for defeating it, the
application should be allowed. Similar view had been reiterated in
B.KN. Pillai Vs. P. Pillai & Ang. AIR 2000 SC 614.
In Estrella Rubber Vs, Dass Estate (P) Led., (2001) 8 SCC 97, the
Supreme Court held that mere delay in making the amendment
application is not enough to reject the application unless a new case
is made out, or serious Prejudice is shown to have been caused to the other
Side so as to take away any accrued right.cs cece Reference to Amendment Acts—1999 & 2002
Similarly, in Siddalingamma & Anr. Vs. Mamtha Shenoy, (2001) 8
SCC 561, the Hon’ble Supreme Court held that the Doctrine of Relation
Back applies in case of amendment for the reason that the amendment
generally governs the pleadings as amended pleadings would be deemed
to have been filed originally as such and the evidence has to be read
and appreciated in the light of the averments made in the amendment
petition. Similar view has been reiterated in Raghu Thilak D. John Vs. S.
Rayappan & Ors., AIR 2001 SC 699.
In Jayanti Roy Vs. Dass Estate (P) Lid., AIR 2002 SC 2394, the Apex
Court held that if there is no material inconsistency between the original
averments and those proposed by the amendment, application for
amendment should be allowed. However, the application should be moved
at a proper stage. Application filed at unduly delayed stage should normally
be rejected.
In Sampat Kumar Vs. Ayyakannu & Anr., (2002) 7 SCC 559, the
Hon'ble Supreme Court held that any amendment seeking to introduce a
cause of action, which arose during pendency of the Suit, may be permitted
in order to avoid multiplicity of Suit. But, it should not change the basic
structure of the Suit, More so, court should be liberal to allow amendment
at the time of pre-trial of a Suit but must be strict and examine the issue of
delay where the application for amendment is filed at a much belated stage
of commencement of the trial.
In Nagappa Vs. Gurodayal Singh & Ors.. AIR 2003 SC 674, the
Hon'ble Supreme Court held that amendment can be allowed even at an
appellate stage in a case where Jaw of limitation is not involved and the facts
and circumstances of the particular case so demands, in order to do justice
with the parties. The case involved therein had been under the provisions of
Sections 166, 168 and 169 of the Motor Vehicles Act, 1988 and as the Act
does not provide for any limitation for filing the claim petition, the
amendment at appellate stage was allowed.
In Hanuwant Singh Rawat Vs. M/s Rajputana Automobiles, Ajmer,
(1993) | WLC 625, Rajasthan High Court summarised the legal position
as under:=
(i) That the amendment of pleadings should
ordinarily be allowed by the Court, once it is
satisfied that the amendment is necessary forCPC Reference to Amendment Acts— 1009 & 2002 6
the just and proper decision of the controversy
between the parties;
(ii) The amendment of the pleadings should
not ordinarily be declined only on the
ground of delay on the part of the appellant in
seeking leave of the Court to amend the
Pleadings, if the opposite party can Suitably be
compensated by means of costs etc. Even
inconsistent pleas can be allowed to be raised
by amendment in the pleadings;
(iii) However, amendment of pleadings cannot
be allowed so.as to completely alter the nature
of the Suit;
(iv) Amendment of the pleadings must not be
allowed when amendment is not necessary
for the purpose of determining the real questions
in the controversy between the parties;
(v) The amendment should be refused where the
plaintiff's Suit would be wholly displaced by
the proposed amendment;
(vi) Where the effect of the amendment would
be to take away from the defendant a legal right
which has accrued to him by lapse of time or by
‘operation of some law;
(vil) The amendment in the pleadings should
not be allowed where the court finds that
amendment sought for has not been made in
good faith or suffers from lack of bona fides;
and
(viii) Ordinarily, the amendment must not be
allowed where a pany wants to withdraw
from the admission mads by it in the original
pleadings.”
In M/s Modi Spinning & Weaving Mills Co, Ltd. (supra), the
Hon‘ble Supreme Court specifically held that amendment in the pleadings66 CPC. Reference to Amendment Actr—1999 & 2002
is not permitted if it seeks to “displace the plaintiff completely from the
admissions made by the defendant in the written statement.”
In Heeralal Vs. Kalyan Mal & Ors., (1998) 1 SCC ‘278, the Hon'ble
Supreme Court held that once a written statement contains an admission in
favour of the plaintiff, by amendment such admission of the defendant
cannot be allowed to be withdrawn if such withdrawal would amount to
totally displacing the case of the plaintiff and which would cause some
irreparable prejudice.
It is settled proposition of law that admission is the best evidence
unless the party who has admitted it proves it to have been admitted
under a wrong presumption or it could not have been otherwise factually
correct. In Narayan Bhagwantroo Gosavi Balajiwale Vs. ‘Gopal Vinayak
Gosavi & Ors. AIR 1960 SC 100, the Hon'ble Apex Court observed
as under:-
"An admission is the best evidence that an
opposing party can rely upon and though
not conclusive, is decisive of the matter,
unless successfully withdrawn or proved
erroneous.”
‘The same view had been reiterated in K.S. Srinivasan Vs, Union of
India & Ors., AIR 1958 SC.419; Basant Singh Vs. Janki Singh, AIR 1967
SC 341; Prem Ex-Serviceman Co-operative Tenant Farming Society
Ltd, Vs, State of Haryana, AIR 1974 SC 1121; and Avadh Kishore Dass
Vs, Ram Gopal & Ors., AIR 1979 SC 861,
In Nagubai Ammal & Ors, Vs. B. Shama Rao & Ors., AIR 1956 5C
593, the Apex Court had taken the same view holding that the statements
admitting the factual position must be given full effect and while deciding
the same, the Hon'ble Supreme Court placed reliance on the decision in
Slatterie Vs. Pooley, (1840) 6 M&W 664, wherein the Court had
observed that "what a party must admit to be true, may reasonably
presumed to be so,”
In Rakesh Wadhawan Ws. M/S Jagdamba Industrial Corporation &
Ors., AIR 2002 SC 2004, the Apex Court held that admission being a piece
of evidence can be explained and it does not conclusively binds a party
unless it amounts to estoppel.CPC Reference 10 Amendment Acts—1999 & 2002 67
The Court held that the court would as a rule decline to allow
amendments, if a fresh suit on the amended claim would be barred by
limitation on the date of application. (Vide T.N. Alloy Foundry Co. Lid,
Vs. T.N, Electricity Board & Ors., (2004) 3 SCC 392),
In Pankaja & Anr. Vs. Yellappa (Dead) by L-Rs. & Ors., AIR 2004
SC 4102, the Supreme Court held that there is no absolute rule that
amendment should not be allowed at a belated Stage in a particular case.
Even if amendment sought is barred by limitation, if the Court after
examining the facts and circumstances of the case comes to the conclusion
that amendment serves the ultimate cause of justice and avoids further
litigation, the amendment should be allowed.
I is obligatory on the part of the Court, when it allows the amendment,
to give time to the other parties to reply properly, failing which, the decree
would be illegal, as it is mandatory that the parties may be given chance to
contest the question in controversy. The Court has a discretion even to
allow amendment even if it is barred by limitation, if the facts so require.
(Vide Ramnik Vallabh Das Madhwani Vs. Tara Ben Pravin Lal
Madhwani, AIR 2001 SC 1084; and T.N. Alloy Foundry Ltd. Vs. T.N.
Electricity Board, (2004) 3 SCC 392),
Thus, in view of the above, the law can be summarised that
amendments should be allowed if an application is moved at a Pre-trial
stage, and cven at a later stage if the party wants to introduce the facts in
Tespect of the subsequent development as it would be necessary to avoid the
multiplicity of the proceedings. The amendment is not permissible if the
very basic structure of the plaint is changed or the amendment itself is not
bona fide. In case the facts were in the knowledge of the party af the time of
Presenting the pleadings, unless satisfactory explanation is furnished for
not introducing those pleadings at the initial stage, the amendment should
not be allowed. Amendment should also not be permitted where it
withdraws the admission of the party or the amendment sought is not
ecessary to determine the real controversy involved in the case.
Order 6 Rule 18 provides that partics are bound to incorporate the
amendments or if apply for the order passed by the court within time and if
ho time is given, then within 14 days, or within the time, Wf any, extended
by the court.
Order 7, Rule 11 provides for dismissal of a Suit and empowers the
court to reject the plaint in case plaint does not disclose a cause of action
LL’ _ reos (CPC. Reference to Amendment Acts—1 999 & 2002
where the relief claimed is undervalued and in spite of time given by the
court to correct the valuation within time, plaintiff fails to do so and where
the sufficient court-fee has not been paid and the deficiency is not made
good in spite of time granted by the court or where the Suit is barred by
law, Two further facts have been added by Amendments of 1999 and 2002
that a plaint can be rejected if not filed in duplicate or where the provisions
of Order 7 Rule 9 have not been complied with. (See Peaslite Liners Pvt.
Lid. Vs, Manorma Sirsi, 2004 AIR SCW 273).
While deciding the application under Order 7, Rule 11 it is not
necessary to call for the written statement. It may be decided merely by
going through the averments made in the plaint. (Vide Saleem Bhai Vs.
State of Maharashtra, AIR 2003 SC 759).
Order 7, Rile 11 of the Code castes a duty on the Court to reject the
plaint for non-disclosure of cause of action. Irrespective of any objection
taken by the defendant. It is the duty of the Court to see if the plaint really
discloses any cause of action or if the plaint is barred under the provisions
of any law, (Vide 1.T.C. Limited Vs. Rakesh Behari Srivastava, AIR 1997
M1323).
Order 7, Rule 11, to which clauses (¢) and (f) have been added, which
enable the Court to reject the plaint where it is not filed in duplicate or where
the plaintiff fails to comply with the provisions of Rule 9 of Order 7. It
appears that the said clauses being procedural would not require the
automatic rejection of the plaint at the first instance, If there is any defect as
contemplated by Rule 1 (e) or non-compliance as referred to in Rule 11
(f, the Court should ordinarily give an opportunity for rectifying the
defects, and in the event of the same not being done, the Court will have the
liberty or the right to reject the plaint. (Vide Salem Advocate Bar
‘Association, Tamil Nadu Vs. Union of India, AIR 2003 SC 189).
‘A similar view has been reiterated in Raj Narayan Sareen Vs. Lakshmi
Devi, (2002) 10 SCC $01; Saleem Bhai Vs. State of Maharashtra (2003) 1
SCC 557; Ramesh Chandra Ardawatiya Ws. Anil Punjwani, AIR 2003 SC
2508; Sopan Sukhdeo Sable Vs. Assistant Charity Commissioner, AIR
2004 SC 1801; and Chandra Uttam Chodanker Vs. Dayanand Rayu
‘Mandrakar, (2005) 2 SCC 188.
‘An application for rejecting the plaint can be filed at any stage of the
proceeding. However, it should be done at the earliest. (Vide Vitthalbhai (P)
Lid. Vs. Union Bank of India, (2005) 4 SCC 315.
CEC llCPC Reference to Amendment Acts—1999 & 2002 o
Order 7, Rule 14 has been added by amendment as a substitute of
Order 13, Rule 2, which stood deleted by amendment regarding the
production of documents, on which the party relies.
Order 8, Rule 1 provides that the defendant must file written statement
within 30 days of the service of summons on him. The court may extend
the period by recording reasons upto 90 days. Thus, extension can be given
only for a period of 60 days. However, by the discretion of the Court to
extend the time further. (Vide Ramesh Chand Ardawatiaya Vs. Anil
Panjwani, AIR 2003 SC 2508; and Iridion India Telecom Led. Vs.
Motorola Inc, (2005) 2 SCC 145).
Order 8, Rule $ provides that every allegation of fact in the plaint must
be specifically and necessarily denied, not admitting the Pleading otherwise
it will be assumed that defendant had admitted the allegation, (Vide Tek
Bahadur Bhujil Vs, Debi Singh Bhujil & Ors, 1966 SC 292; Jahuri Sah
Vs. Dwarika Prasad Jhunjhunwala & Ors, AIR 1967 SC 109: Rakesh
Wadhwa (Supra); M.L.Subbaraya Setty Vs. M.L_Nagappa Setty, (2002) 4
SCC 743; Rakesh Wadhawan & Ors. Vs. Jagdamba Industrial Corporation
& Ors., AIR 2002 SC 2004; and Sushil Kumar Vs. Rakesh Kumar, (2003)
§ SCC 673,
Order 8, Rule 9 provides for Subsequent pleadings. In Shakoor &
Ors. Vs. Jaipur Development Authority, Jaipur & Ors., AIR 1987 Raj 19,
the Court considered the application of the provisions of Order 8 Rule
9 even in a case of miscellaneous application under Order 39 Rule |,
C.P.C. and held that undoubtedly the contingency of filing a rejoinder
does not arise in every case because it would arise only in such cases
where some new plea or fact is introduced by the defendant in his reply,
only with the leave of the Court and the Purpose of putting such an
embargo is that plaintiff may not be Permitted to introduce a pleading
subsequently by a rejoinder. The procedure provided for a trial of the Suit
and miscellaneous proceedings is meant for finding out truth and to
do justice. The procedure is always a hand-maid of justice and full
opportunity should be given to the parties to bring forth their case before
the Court, unless such procedure is Specifically prohibited under the law
and if Court is satisfied that subsequent Pleadings should not be
Permitted, the plaintiff cannot be denied his right to file a rejoinder.70 CPC. Reference tr Amendment Acts—1999 & 2002
In Veerasekhara Varamarayar Vs. Amimhavalliammal & Ors., AIR
1975 Mad. 51, the Division Bench of Madras High Court held that
where the defendant brings the new facts in the written statement, the
plaintiff must get achance to file a rejoinder challenging the truth and
binding nature of the allegations/averments made in the written statement.
But law does not compel the plaintiff to file a replication! rejoinder and
the plaintiff cannot be deemed to have admitied the same simply because
he had not filed the rejoinder.
In Rohan Lal Choudhary Vs. Prem Prakash Gupta, AIR 1980 Pat.
59, the Patna High Court has taken -the same view holding that the
plaintiff is entitled to join issues with the defendant in respect to all
those allegations which are made in the written statement and may lead
evidence in rebuttal of those allegations notwithstanding the fact that he
did not file any rejoinder.
In M/s Ajanta Enterprises Vs, Bimla Charan Chatterjee & Anr.,
1987 RLR 991, this Court held that it is not permissible to file a rejoinder
tovall allegations made in the written statement and the rejoinder or replica
can be filed with the permission of the Court only if the defendant has
raised a plea of new facts and, thus, permission must be granted after
taking into consideration all the facts and circumstances of the
case, especially the pleas which have been raised in the written statement.
Inthe garb of submitting a rejoinder, aplaintiff cannot be allowed to
introduce new pleas in his plaint so as to alter the basis of his plaint. Ina
rejoinder, plaintiff may simply explain if certain additional facts have
been taken in the written statement but he cannot be allowed to come
forward with an entirely new case in the rejoinder. The original pleas cannot
be permitted to be altered under the garb of filing a rejoinder,
Rejoinder/replication cannot be permitted for introducing pleas which are
not consistent with the earlier pleas.
In State of Rajasthan Vs. Mohammed Ikbal, 1998 DNJ (Raj.) 275,
the Court considered its earlier judgments in M/s Ajanta Enterprises
(supra) and M/s Gannon Dunkerley & Co. Ltd. Ws. Steel Authority of
India Lid., Rourkela, AIR 1993 Orissa 141, and held that the plaintiff
cannot be allowed to introduce new pleas under the garb of filing rejoinder,
so as to alter the basis of his plaint. In rejoinder, plaintiff has a right to
explain only the additional facts incorporated by the defendant in his
CC asasaew#daeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeCAC Reference to Amendment Acti—1999 & 2002 7
written statement. In rejoinder, plaintiff cannot be permitted to come
forward with an entirely new case of raise inconsistent pleas so as to alter
his original cause of action.
In Ishwar Lal & Anr. Vs. Ashok & Anr., 1998 (2) RLW 730, the
Court held that rejoinder affidavit can be filed only with leave of the
Court and it is a matter of judicial discretion vested in the trial court which
should be exercised only if there are ‘cogent reasons to allow the plaintiff to
file rejoinder to the written statement, In Saiyed Sirajul Hasan Vs. Sh, Syed
Murtaza Ali Khan Bahadur & Ors., AIR 1992 Del. 162, the Dethi High
Court had held that rejoinder cannot be filed as a matter of right and it
is an absolute discretion of the Court to grant leave to present a fresh
pleading. A party secking permission under Order 8 Rule 9 has to provide
“cogent reason for permission” to file additional plea.
In M/s Anant Construction (P) Ltd. Vs. Ram Niwas, 1995 (1) Current
Civil Cases 154, the Delhi High Court held that a replication to written
Statement cannot be filed, nor can be permitted to be filed ordinarily
much less in routine. The Court has a discretion to permit replication
after scrutinizing the plaint and the written Statement, if it comes to the
conclusion that the plaintiff can be Permitted to join specific pleadings to a
Case, specifically and newly raised in the written statement, and if such a
need arises for the plaintiff introducing a plea by way of "confession and
avoidance.” The Court further held that a mere denial of the defendant's
case by the plaintiff need no replication for the reason that he can
safely rely on rules of implied or assumed traverse and joinder of issue.
Thus, in sum and substance, the plaintiff cannot be permitted to raise
a new plea under the garb of filing rejoinder-affidavit, or take a plea
inconsistent to the pleas taken by him inthe petition, nor the rejoinder
can be filed as a matter of right, even the Count can grant leave only after
applying its mind on the pleas taken in the Plaint and the written
statement.
Leave can be granted by the Court to file replication rejoinder on an oral
Tequest of petitioner-plaintiff as held ina case reported in 1972 (2) Mys,
LJ, 328, for the reason that the provisions of Order 8 Rule 9 CPC. do
Not require any written application,
Order 9, Rule 9 provides no bar for Suit on different cause of action
but where a Suit is wholly or partly dismissed in default, the plaintiff cannot
Meee7 CPC Reference to Amendment Acts—1?99 & 2002
bring a fresh Suit in respect of the same cause of action, but may apply for
setting aside the dismissal order and the court being satisfied may set aside
the order of dismissal.
Order 9, Rule 13 provides for setting aside the ex parte decree against
the defendant. Where a decree has been passed ex parte against a defendant
and he applies for setting aside the same, he has to satisfy the court that
summons had not been duly served or he was prevented by sufficient
cause from appearing when the Suit was called on for hearing.
"Sufficient cause” is an expression which is used in large number of
Statutes. Its ordinary dictionary meaning is ‘adequate’ or ‘enough’, ‘any
justifiable reason’ for which the party could not act. It means the party
should not be negligent or want of bona fide cannot be imputed in view of
the facts and circumstances of a case or party cannot ‘be alleged “not
acting diligently” or ‘remaining inactive.’ Facts and circumstances of cach
ease must afford sufficient ground to enable the court to exercise discretion
for the reason that when court exercises discretion, it has to be
exercised judiciously. (Vide Ramlal & Ors, Vs. Rewa Coalfields Ltd.,
AIR 1962 SC 361; Sarpanch, Lonand Gram Panchayat Vs. Ramgiri
Gosavi & Anr., AIR 1968 SC 222, and Surinder Singh Sibia Vs. Vijay
Kumar Sood, AIR 1992 SC 1540).
In Banarsi Das Vs. Dalmia Dadri Cement Co, Ltd., ATR 1959 Pb.
232, the Court held that the word “sufficient” means: ‘adequate’, ‘enough’,
as much as may be necessary to answer the purposes intended. Tt
‘embraces no more than that which provides a platitude which when done
suffice to accomplish the purpose intended in the light of the existing
circumstances and when viewed from reasonable standard of practical
and cautious-men.
In Arjun Singh Vs. Mohindra Kumar, AIR 1964 SC 993 the Court
explained the difference between the good cause and the sufficient cause
and observed that every sufficient cause must be a good cause and must
afford an explanation for non-appearance, nor conversely of a sufficient
cause which is not a good one.
In Manindra Land and Building Corporation Ltd. Vs. Bhutnath
Banerjee & Ors, AIR 1964 SC 1336, the Hon’ble Apex Court held that the
applicant must satisfy the Court that it was prevented by any sufficientCPC. Reference to Amendment Acts—J999 & 2002 7m
cause from prosecuting its case, and unless the satisfactory explanation is
furnished, the Court should not allow the application.
In Brij Indar Singh Ws. Lala Kanshi Ram & Ors, AIR 1917 PC. 156,
it has been observed that true guide for a Court is to exercise the distinction
as to whether the applicant acted with reasonable diligence in prosecuting
his case,
In Matadin Vs. A. Narayanan, AIR 1970 SC 1953, the Hon'ble Apex
Court held that in order to determine as to whether there was a sufficient
cause for the non-appearance, which required to be examined either the
mistake was bona fide or was merely a device to cover an ulterior purpose,
In State of Bihar & Ors. Vs. Kameshwar Prasad Singh & Anr., AIR
2000 SC 2306, the Court held that while considering as to whether there
‘was a sufficient cause, the Court must bear in mind the object of doing
substantial justice to all the parties concerned and the technicalities of law
should not prevent the Court from doing substantial justice and doing away
the illegality perpetuated on the basis of the impugned judgment.
In Madanlal Ws. Shyamlal, AIR 2002 SC 100; Davender Pal Schgal
Vs. Pratap Stee] Rolling Mills (P) Ltd., AIR 2002 SC 451; and Ramnath
Sao alias Ram Nath Sao & Ors. Vs, Gobardhan Sao & Ors., AIR 2002 SC
1201, the Hon'ble Apex Court has observed that the expression “sufficient
cause™ should be given a liberal interpretation to ensure that substantial
justice is done, but only so long as negligence, inaction of lack of bona fides
cannot be imputed to the party concerned, whether or not sufficient cause
has been furnished, can be decided on the facts of a particular case, no
Strait-jacket formula is possible.
Order 10, Rules 1A, 1B and IC provide for procedure and for
alternative forum for resolving the dispute as required under Section 89 of
the Code.
Order 11, Rule 21 deals with discovery and inspection. It deals with
the discovery of interrogatories and further empowers the court to dismiss
the Suit for want of prosecution of the order passed by the court and in case
defendant fails to comply with the order of the court, its defence may be
struck out and where an order under this rule has been passed, the plaintiff
is precluded to bring a fresh Suit on the same cause of action.] CPC. Reference to Amendment Acts—1999 & 2002
Order 13, Rule 2 deals with the production of documents. However,
the earlier provision had been deleted by the Amendment Act, 1999 which
provided to produce the documents in a particular manner explaining the
court as to how the documents could not be produced at earlier stage.
Order 14, Rule 1 deals with the settlement of issues and determination
of Suits on issues of law or on issues agreed upon,
It provides how the issues are to be framed. There may be certain cases
where issues have not been framed, but partics knew what was the
controversy, and lead the evidence. In such a case, it cannot be held that trial
has not been conducted in accordance with law.
In Siddik Mahomed Shah Vs. Mt. Saran & Ors., AIR 1930 PC 57,
the Privy Council considered the scope of relying upon the evidence led
on one issue to determine the other issuc when the second issue had
not been properly framed. The Privy Council held that generally itis not
permissible to rely upon such an evidence in absence of factual
foundation, but such a rule would not apply to a case where partics went
totrial with the knowledge that a particular question was in issue,
though no specific issue had been framed thereon and adduced evidence
relating thereto.
In Nedunuri Kameswaramma Vs. Sampati Subba Rao, AIR 1963
SC 884, the Hon'ble Supreme Court considered the case where all the
issues had not been framed and the issues which had been framed, could
have been framed more elaborately, and held as under:-
"Since the parties went to trial fully
knowing the rival case and led all the
evidence not only in support of their
contentions but in refutation of those by the
other side, it cannot be said that the absence of
an issue was fatal to the case, of that there
that was mis-trial which vitiates proceedings.
We are, therefore, of opinion that the Suit
could not be dismissed on this narrow
ground and also that there is no need for a
remit, as the evidence which has been led in
the case is sufficient to reach the right
conclusion.”CP.C. Reference to Amendment Acts—1999 & 2002 8
Similar view had been reiterated by the Hon'ble Supreme Court in
Nagubai Ammal Vs. B. Shama Rao, AIR 1956 SC 393; and Sayeda
Akhtar Vs, Abdulahad, (2003) 7 SCC 52. Similarly, in Kunju Kesavan
Vs. M.M. Philip & Ors.. AIR 1964 $C 164. the Hon'ble Supreme
Court observed as under:-
“The parties went to trial, fully
understanding the central fact whether the
Succession as laid down to the Ezhava Act
applied to Bhagwathi Valli or not. The
absence of an issue, therefore, did not lead
to a mis-trial sufficient to vitiate the
decision,”
In Kali Prasad Agarwalla Vs. M/s Bharat Coking Coal Ltd, & Ors.,
AIR 1989 SC 1530, the Apex Court held that where the Parties going to
trial with full knowledge of what they had to prove and adduce
evidence in support of respective claims, the plea cannot be entertained
that in absence of proper pleadings, evidence cannot be looked into. In
Bakshi Lochan Singh & Ors. Vs. Jathedar Santokh Singh & Ors.,
AIR 1971 Del. 277, the Division Bench of the Delhi High Court
observed as under:-
“We do not find any substance in the
complaint of the appellants that issues were
not framed in the Suit. The object of framing
issues in a Suit is to determine the rival
contentions of the parties so that the Suit may
Proceed with respect to those contentions.
‘The appellants have not pointed out to Us any
contention raised by them in the written
Statement which has not been dealt with by
the learned Single Judge, That being so, the
absence of issues cannot be said to have
prejudice the appellants.”
It is settled proposition of law that the validity of an order is to be
tested on the touch-stone of doctrine of prejudice. (Vide Janki Nath
Sarangi Vs, State of Orissa, (1969) 3 SCC 392: KL. Tripathi Vs, State
Bank of India, AIR 1984 SC 273; Maj. G.S. Sodhi Vs. Union of India,7% CP.C Reference to Amendment Acts—190? & 2002
AIR 1991S$C 1617; Managing Director, ECIL, Hyderabad & Ors. Vs.
B. Kanunakar & Ors., (1993) 4 SCC 727; Krishan Lal Vs. State of
J&K, (1994) 4. SCC 422; State Bank of Patiala & Ors. Vs. S.K.
Sharma, (1996) 3 SCC 34; S.K. Singh Vs. Central Bank of India &
Ors., (1996) 6 SCC 415; and State of U.P. Vs. Harendra Arora & Anr.,
AIR 2001 SC 2319.
In Smt. Kaniz Fatima Vs. Shah Naib Ashraf, AIR 1983 All, 450,
the Allahabad High Court has taken the view that non-framing of
issues on questions and recording findings thereon and passing decree
on such findings is not permissible in law and further held that non-
framing of issue on certain pleas raised by the parties and finding
recorded on such plea cannot be made foundation of decision on any
other plea merely because evidence had been Jed by the parties on former
pleas. While recording the aforesaid proposition of law, the Count
placed reliance upon its earlier Division Bench judgment in Jagannath
Prasad Bhargava Vs. Lala Nathimal, AIR 1943 All. 17, wherein the
Court had held as under:~
“It is very obvious legal principle that
there should be no decision against a person
who has not had an opportunity of being
heard upon the point which is to be decided.”
The Court further placed reliance upon the judgment of Qudh Court
in Mt. Aliya Begam & Ors. Vs. Mt. Mohini Bibi & Ors., AIR i943
Oudh 17; Ganno Vs. Srideo Sidheshwar, 1902 ILR (2) Bom. 360; and
Haridas Mundhra Vs. Indian Cable Co, Ltd, AIR 1965 Cal. 369 and
held that it was the duty of the Court to frame issues even if the counsel for
the parties. or the party did not insist for it as refusal by the counsel for a
party to help in framing of issues did not absolve the Court from framing
the issue unless it is satisfied that the defendant did not want to make
any defence.
However, in Dharamshala Agwar Sukhla & Ors. Ws. Sanatan
Dharam Sabha (Regd), Barnala & Ors., AIR 1985 NOC 79, the Punjab &
Haryana High Court held that non-framing of issues, where the parties
were fully aware of real dispute and they lead evidence thereon, the finding
recorded by the Court cannot be held to have vitiated.crc Reference to Amendment Acts—[909 & 2002 7
A similar view has been reiterated in Sayeda Akhtar Vs. Abdul Ahad,
(2003) 7 SCC 52.
Order 14, Rule 2 requires the court to dispose of a case on a
preliminary issue,
In Smt. Tara Devi Vs. Sri Thakur Radha Krishna Maharaj, AIR
1987 SC 2085, the Hon'ble Supreme Court considered acase as to
whether the valuation made by the plaintiff himself is taken to be
Correct.on its face value and proceed with the trial. The Apex Court held
that the court fee has to be paid in view of the Provisions of the Court Fee
Act, 1870 and the valuation by the plaintiff is ordinarily to be accepted;
however, plaintiff does not have any absolute right or option to place any
valuation whatsoever on such relief and where the plaintiff manifestly and
deliberately under-estimates the relief, the Court is entitled to examine
the correctness of the valuation given by the plaintiff and to revise
the same if it is patently arbitrary or unreasonable. While deciding
the said case, the Hon‘ble Supreme Court Placed reliance upon its earlier
judgments in Sathappa Chettiar Vs. Ramanathan Chettiar, AIR 1958.SC
245; and Meenakshisundaram Chettiar Vs. Venkatachalam Chettiar, AIR
1979 SC 989,
In M/s Commercial Aviation & Travel Company & Ors, Vs.
Mrs. Vimla Pannalal, AIR 1988 SC 1636, reiterating the same view,
the Hon'ble Supreme Court held that the Court must accept plaintiff's
valuation tentatively unless it is found demonstratively arbitrary, The
Count observed as under:-
“But there may be cases under Section 7
(iv) (of the Court Fee Act, 1870 and the Suit
Valuation Act, 1887) where certain positive
objective standard may be available for
the purpose of determination of the
valuation of the relief. If there be
materials or objective standards for the
valuation of the relief, and yet the plaintiff
ignores the same and puts an arbitrary
valuation, the Court, in our opinion, is entitled
to interfere under Q, Vl, Rule 1] (b) of the
cae Code of Civil Procedure, for the Court will8 CPC. Reference ta Amendment Acts—1999 & 2002
be in a position to determine the correct
valuation with reference to the objective
standards of materials available to it. in
such acase, the Court would be competent to
direct the plaintiff to value the relief
accordingly... The plaintiff will not be
permitted to put an arbitrary valuation de
hors such objective standards or materials.....
‘The plaintiff cannot choose a ridiculous figure
for filing the Suit most arbitrarily where
there are positive materials and/or objective
standards of valuation of the relief appearing
‘on the face of the plaint.~
In Abdul Hamid Shamsi Vs. Abdul Majid, ATR 1988 SC 1150, the
Hon'ble Supreme Court considered a case under the provisions of the
Court Fee Act and the Suit Valuation Act and held as under:-
“If a plaintiff chooses whimsically
ridiculous figure, it is tantamount to not
exercising his right in this regard. In such a
case it is not only open to the Court but it is its
duty to reject such a valuation. ‘The cases of
some of the High Courts, which have taken
a differemt view, must be held to be
incorrectly decided.”
Same view has been taken by the Calcutta High Court in Nalini Nath
Mallik ‘Thakur Vs. Radhashyam Marwari & Ors.. AIR 1940 Cal. 482;
and Patna High Court in Kishori Lal Marwari Vs, Kumar Chandra
Narain Deo, AIR 1939 Pat. 572.
In Smt. Cheina & Ors. Vs. Nirbhay Singh, 1997 (1) RLW 688,
the Court examined the scope of the provisions of 0. 7R. 11 of the
‘Code and observed that if an objection is raised and the application under
OQ. 7R. 11 is filed, the Court is bound to decide such an application and if
it appears to the Court that the valuation of the Suit is cx facie arbitrary or
absurd and if the Court, after determination, comes to the conclusion that
the Suit had been under-valued, it must direct the valuation to be
amended or court fees to be paid in accordance with such valuation.CPC. Reference to Amendment Acts—1099 & 2002 i]
Only in exceptional circumstances where it is not possible to
determine the correctness of the Valuation without taking evidence, the
Coun may not reject the Plaint but keep the question open to be tried in the
Suit. The Count further held that even if the application under 0,7 R.
I of the Code has not been filed but valuation of the Suit has been
objected in the written Statement, as it is a pure question of law, the
Court must treat it as a preliminary issue and decide it as such at the initial
Stage. Similar view has been taken in Jagdish Rai & Ors. Vs. Smut.
Sant Kaur, AIR 1976 Del. 147; and ReshamLal & Ors. Vs. Anand
Sarup & Anr., AIR 1974 P&H 97,
In Gauri Shanker Vs. Pukh Raj & Ors., 1989 (1) RLW = 195, this
‘Court has held that an issue as to the jurisdiction of the court
depending upon the valuation of the subject matter of the Suit, has to
be tried as a preliminary issue.
In Panna Lal Vs, Mohan Lal & Ors., AIR 1985 Raj. 178, the Court
examined a similar issue under the Rajasthan Court Fee & Suit
Valuation Act, 1961 and held that if the defendant pleads in his
written statement that the subject matter of the Suit has not been
Properly valued, or that the coun fees paid is not sufficient, questions
arising on such plea shall be taken and decided before hearing of the Suit
as contemplated by O. 14 of the Code. The Court further held that in
Section 11 (2) of the Code, the Legislature has employed the word
“plead” and it has further been provided therein that all question arising out
of such “pleas” shall be heard and decided before the hearing of the Suit
as contemplated by O, 6R. | of the Code,
In Ratan Lal Vs, Roshan Lal & Ors., 1986 RLR 248, the Court, ina
case similar to the case in hand, held that for the purpose of Rajasthan
Court Fee & Suit Valuation Act, 1961, in a Suit for pre-emption,
valauation should be on consideration for sale which pre-emptor secks to
avoid. The Court held that if the pre-emptor wants to avoid ‘sale’ and not
‘consideration’, the Suit should be valued on amount of consideration of
sale mentioned in sale-deed or on market value of the Property,
whichever is less,
In Maj. SS. Khanna Vs. Brig. FJ. Dillon, AIR 1964 SC 497,
the Hon'ble Supreme Court considered the issue regarding the
maintainability of a Suit and held as under:-
<<<. —_so CPC. Reference to Amendment Acts—[999 & 2002
“Under O. 14R. 2of the Code, where
issues, both of law and of facts, arise in the
same Suit and the court is of the opinion that
the case of any part thereof may be disposed
of on the issue of law only, it shall try those
issues first, and for that purpose, may, if it
thinks fit, postpone the settlement of issues of
facts until after the issues of law have been
determined. The jurisdiction to try issues of
law apart from the issues of facts may be
exercised only where in the opinion of the
court, the whole Suit may be disposed of on
the issues of law alone. But the Code
confers no jurisdiction upon the court to try
the Suit on mix issues of law and facts as
preliminary issues. Normally, all the issues
in a Suit should be tried by the court, not to
do so, specially when the decision on issues
even of law depends upon the decision of
issues of facts will’ result in a lope-sided
trial of the Suit.”
It may be pertinent to mention here that preliminary issue, which was
sought to be tried first, was as "0 whether the Suit was not
maintainable and the plaintiff was not entitled to institute as alleged in
paragraphs Nos. 15, 16, 17 and 18 of the written statement 7 Thus, it was
not one of the issues for the decision of which the plaint had to be rejected.
It was an issuc of maintainability of Suit on the objections raised by
the defendants.
In Amir Chand Vs. Harji Ram & Ors., 1986 RLR 985, the Court held
that any issue of law, determination of which would dispose of the Suit
itself, must be decided as the preliminary issue and in case the trial court
has refused to do so, it would amount [to committing material
irregularity in exercise of its jurisdiction and the revisional court must
exercise its power and direct the trial court to decide the same as a
preliminary issue.CALC Reference to Amendment Acts—1999 4 2002 81
Order 16 empowers the court to summon the witnesses and can force
the witnesses to appear in court.
Order 17, Rule 1 empowers the court to adjourn the case from time to
time. However, by Amendment Act. 1999 its provisions have been
amended not to give adjournment to a Party more than 3 times during the
hearing of the Suit, and for that purpose, cost may also be imposed,
Seeking unnecessary adjournment on non-existent grounds with the
oblique motive to delay the trial of the Suit, “are instances of contumacious
conduct, tending to interfere with administration of justice, inviting action of
contempt.” (‘Wide Ramji Lal Sharma Vs. Civil Judge, Allahabad & Ors.,
AIR 1988 AIL 143).
Tendency to procrastinate Proceedings by seeking adjournment
deserves deprecation but at the same time sufficiency of reasons for seeking
adjournment requires to be examined. (Vide Surendra Kumar & Anr, Vs.
Rajendra Kumar Agarwal, AIR 1990 All. 49).
Undoubtedly, taking unnecessary adjournments causes problems to the
Court and inconvenience to the other Party, but courts should adopt an
attitude not to penalize the party on that count, More 80, procedural ill can
be adequately compensated in terms of costs. (Vide K. Patel Chemo
Pharma P. Ltd. & Ors. Vs. Laxmibai Ramchandra Iyer & Ors., 1993
(Supp) 2 SCC 174; and Chief General Manager, Telecom & Anr. Vs. G.
Mohan Prasad & Ors. (1999) 6 SCC 67,
In Om Prakash Sharma & Ors, Vs. Ram Dutt and Anr., 1999 DNI
(Raj,) 21, the Court has taken a view that while considering the application
of such a nature, the Court must examine the nature of the Suit as well as
the facts and circumstances of the case,
In State Bank of India Vs. Kumari Chandra Govindji, (2000) 8 SCC
532, the Hon'ble Supreme Court considered the scope of Order 17 Rule |
of the Code of Civil Procedure and observed as under--
“In ascertaining whether a party had
reasonable opportunity to put forward his case
F not, one should not ordinarily go beyond the
date on which the adjournment is sought for,
The earlier adjournment, if any, granted would
certainly be for reasonable ground and that
CaerRn CPC. Reference to Amendment Acts—1999 & 2002
aspect need not be once again examined if on
the date on which adjournment is sought for
the party concemed has a reasonable ground.
The mere fact that in the adjournments had
been sought for could not be of any
materiality. If the adjournment had been
sought for on flimsy grounds, the same would
have been rejected.”
Adjournment cannot be sought as a matter of right; not even on the
ground that the counsel has no instruction from his client (Vide Mary
Alvares Vs. Roy Alvares (2004) 9 SCC 578.
Order 18, Rules 3A, 3B, 3C and 3D have been introduced by
amendment permitting the party to submit the writien arguments in support
of his case and shall form the part of the record, and empower the Court to
fix time limit for oral arguments by cither of the parties in a case as it thinks
fit.
Order 18, Rules 4 and 5- These provisions have been amended by
‘Amendment Act, 1999 providing to record the examination-in-chief of the
parties on affidavit. Different High Courts have taken a different view.
However, the Hon'ble Supreme Court in Ameer Trading Corporation
Limited Vs. Shapoorji Data Processing Lid. (2004) 1 SCC 702 explained
that under Rules 4 and 5 wherever the evidence of a witness is recorded, his
examination-in-chief can be dispensed with taking his evidence on affidavit.
Order 18, Rule 17-A which dealt with the production of evidence, not
previously known, for which, could not be produced despite due diligence,
stood deleted by amendment.
Order 18, Rule 19 had been brought by amendment, conferring the
power upon the Court to record evidence on commission.
(Order 19 Rule 2+ The court may enforce the attendance of deponent in
any affidavit for cross-cxamination.
It is settled legal proposition that affidavit is not an evidence within
the meaning of Section 3 of the Evidence Act as held by the Courts in
Prakasli Rai Vs. JN. Dhar, AIR 1977 Del 73; Radha Kishan Vs.
Navratan Mal Jain & Anr., AIR 1990 Raj. 127; 5. Sukumar Vs. Spl.
Commissioner of Commercial Taxes, Madras, AIR 1991 Mad. 238;CPC. Reference ta Amendment Acts—1999 & 2002 a3
and M/s Glorious Plastics Ltd. Vs. Laghate Enterprises & Ors., AIR
1993 Bom 224.
In Sudha Devi Vs. M.P, Narayanan & Ors., AIR 1988 SC 1381, the
Hon'ble Supreme Court held that affidavits are not included in the
definition of “evidence” in Section 3 of the Evidence Act and the
same can be used as “evidence” only if, for sufficient reasons, the
Court passes an order under O, 19 Rr. 1 & 2 of the (Code. Similar view
has been reiterated in Range Forest Officer Vs. 5.7. Hadimani, AIR
2002 SC 1147, wherein the Apex Court held that filing of an affidavit only
of his own statement in his favour cannot be regarded as sufficient
evidence for any Court or Tribunal to come to the conclusion of a
Particular fact-situation.
A Division Bench of the Allahabad High Court, in Khushi Ram
Dedwal & Anr. Vs. Additional Judge, Small Causes Court/ Prescribed
Authority, Meerut & Ors. 1998 (1) RCJ 315, considered the scope of
application of O. XIX of the Code in an application under the Rent Control
Act and held that cross-cxamination of a deponent must be refused if
found not necessary and would only hamper the expeditious disposal of the
case, The Court held as under:
“The principle that a party is to be
permitted to cross-examine onthe
Principle of natural justice cannot be accepted
in every case. Oral examination in all cases is
not contemplated. Even in disciplinary
inquiries in exceptional cases oral evidence
may not be insisted upon as held in Hira
Nath Mishra Ws. Principal, Rajendra Medical
College, AIR 1973 SC 1260, and State of
Haryana Vs. Rattar Singh, AIR 1977 SC
1312. If a party wants to cross-examine, he
has to give the necessary facts in the
application as to why the cross-examination
is necessary. The Prescribed Authority will
give the reasons either for allowing or
refusing the cross-cxamination. The reasons
disclosed in the order of the PrescribeduM CPC Reference to Amendment Acti—1999 & 2002
Authority will show whether he acted fairly or
not. Considering every aspect of the matter
the authority under the provisions of U.P.
Act No. 13 of 1972 can permit the cross-
examination of adeponent of an affidavit
only when it is necessary in the case.”
In Ganpat Singh & Anr. Vs. Ashok Kumar & Ors., 2000 (1) WLC
499, this Court again reiterated the law laid down in Smt, Sudha & Ors.
(supra) observing as under:~
=..two conditions are necessary for
grant of permission under Order 19 Rule 2
C.P.C. The first is that the application should
be bona fide which means that it should be
supported by sufficient and cogent reasons
and the second is that the Court should be
satisfied that permitting the cross-cxamination
of the deponent was necessary in the interest
of justice. It is obvious that for the purpose
coming to the conclusion whether it is
necessary or mot necessary to allow the
permission of cross-cxamination the
deponent of an affidavit, it is the court
concerned and none else which has to arrive
at an independent conclusion.”
In Chotu Khan Vs. Abdul Karim, AIR 1991 Raj. 119, the Court had
considered the scope of provisions of O. 19Rr. Land 2 of the Code
placing reliance upon large number of its earlier judgments including
Sultan Khan Vs. Brij Mohan, 1970 RLW 74 and came to the conclusion
that the said provisions make it abundantly clear that the Court may
order the attendance of deponent for cross-examination and the said
provisions do not empower the Court to issue process to enforce the
attendance of the deponent. The Court further held that if a party fails
to produce the deponent of the affidavit filed by him for cross-
examination, affidavit of the deponent failing to attend the Court must be
ignored.
In Sultan Khan (supra), this Court observed as under:-CPC Reference to Amendment Acts—/ 99% & 2002 as
“On the other hand, if the provision
contained in OQ. 19R.2 CPC. is taken to
mean compulsion and as a rule cross-
examination is allowed in interlocutory
Proceedings, there would be invariably
considerable delay in the disposal of the
same and it is very likely that in number of
cases the delay involved may defeat the
object of the application..... These
considerations lean in favour of giving the
word ‘may’ its ordinary meaning in this rule,
i... implying a discretion...... It is in the
discretion of the Court to order the
attendance of the deponents for their cross-
examination oa the affidavits filed by them."
A Division Bench of the Rajasthan High Court in Ram Swaroop &
Ors. Vs. Bholu Ram, AIR 1991 Raj 56, considered the scope of
application of O. 19 while considering the application under 0.39 Rr. 1
and 2 for grant of temporary injunction and held as under:-
“Apart from the principles of natural
justice, having regard to the statutory
Provisions contained in Section 30 and O, 19
Rr. | and 2 CP.C. read with O. 39 R. 1, we
are of the view that the Court possesses
Power to call the deponent for cross-
examination when an affidavit has been filed
in support of an application under O, 39 R.
1CP.c."
While deciding the said case, this Court Placed reliance upon large
number of judgments, including Kanhaiyalal S. Dadlani, Supdt. Central
Excise, Nagpur Ws. Meghraj Ramkaranji, AIR 19S4 Nag. 260, wherein
the view has been taken that expression “any application" in O. 19 R. 2
of the Code would include any application under the Code, since the Code
does not define the word “application” nor does it make any distinction
between one application and another, Similar view has been reiterated in
Shib Sahai Vs. Tika, AIR 1942 Oudh 350, holding as under:~86 CPC Reference to Amendment Acts—1999 & 2002
“A. perusal of this mule leaves no doubt
that it is open to a Court on sufficient ground
to allow proof of facts by means of affidavit,
but if the production ofthe declarant of the
affidavit is required in good faith for cross-
examination by any party, the Court shall not
use such affidavit in support of facts alleged
therein without the production of the
declarant. Rule 2 of Order 19 C.P.C. puts
the matter further beyond doubt. This rule is
to the effect that upon any application,
evidence may be given by affidavit, but the
(Court may, at the instance of either party,
order the attendance for cross-examination of
the deponent.”
In Pijush Kanti Guha Vs. Smt. Kinnori Mullick, AIR 1984 Cal
184, the Calcutta High Court considered the scope of application
elaborately under O. XIX of the Code, while considering the
application for temporary injunction, and held that there isa discretion
left with the Court and no party can claim an absolute right to call the
declarants of the affidavits for cross-examination, but it has to be
determined on the facts of cach case.
In Ranjit Ghosh Vs. Hindustan Steel Ltd, AIR 1971 Cal 100, the
Court held that while deciding interlocutory applications, where the
affidavits form sheet-anchor and facts are being tried to be proved by
affidavits, the other party may be given an opportunity to meet the
contents thereof, otherwise the order would stand vitiated being passed in
*“non-conformance to the procedure established by law.”
In Abdul Hameed Khan Vs. Mujeed-Ul-Hasan & Ors., AIR. 1975
‘All 398, it was held that if contents of affidavits are contradicted, the
Court may summon the deponents of the affidavits for cross-examination.
While examining a case under the provisions of the Industrial
Disputes Act, 1947, the Hon'ble Supreme Court, in M/s Bareilly
Electricity Supply Co. Lid. Vs. The Workmen & Ors., AIR 1972 SC
330, considered the application of 0. 19 Rr, 1 and 2 of the Code and
observed as under:-CPC Reference to Amendment Acts—1999 & 2002
"But the application of principles of
natural justice does not imply that what is not
evidence, can be acted upon. On the other
hand, what it means is that no material can be
relied upon to establish a contested fact which
are not spoken to by the persons who are
Competent to speak about them and are
subject to cross-examination by the party
against whom they are sought to be used.
When a document is produced ina Court of
a Tribunal, the question that naturally arises
is: is ita genuine document, what are its
contents and are the statements contained
therein true...... If a letter or other document is
Produced to establish some fact which is
relevant to the inquiry, the writer must be
produced or his affidavit in respect thereof
be filed and opportunity afforded to the
opposite party who challenges this fact. This
is both in accordance with the principles of
natural justice as also according to the
Procedure under 0. 19 of the Code and the
Evidence Act. both of which incorporate
the general principles.”
In Needle Industries (India) Ltd, & Ors. Vs, N.LN.LH. Lid, &
Ors., AIR 1981 SC 1298, the Hon'ble Apex Court considered the case
under the Indian Companies Act and observed that "
dissatisfactory to tecord a finding
person the basis of affidavits and documents without asking that
Petson to submit to cross-cxamination.” unless the Parties have agreed
{o proceed with the matter on the basis of affidavits only,
In Ramesh Kumar Vs. Kesho Ram, AIR 1992 SC 700, the Honble
Supreme Court considered the scope of application of provisions of O, 19
Rr. land 2in a Rent Control matter, observing as under:-
“The Court may also treat any affidavit
filed in support of the pleadings itself as one
it’ is generally
involving grave consequences to a38 CP.C. Reference to Amendment Acts—1999 & 2002
under the said provisions and call upon the
opposite side to traverse it. The Court, if it
finds that having regard to the nature of the
allegations, it is necessary to record oral
evidence tested by oral cross-examination,
may have recourse to that procedure.”
Order 21, Rule 1 deals with the execution of decree and orders, and the
payment under the decree.
Order 22 deals with substitution of legal representatives and abatement
of proceedings.
Order 22, Rule 4 deals with the procedure in case of death of one or
several defendants or sole defendant and fixes the period of limitation to
bring an application for substitution of legal representatives of the deceased
defendant, failing which proceedings would stand abated. In case there are
several defendants and only one dies, the proceedings would not abate qua
the other defendants.
Order 22, Rule 6 is an exception as it provides that there shall be no
abatement of the proceedings in case the death occurs of either of the parties
where the cause of action survives or not after the hearing of the case stands
concluded. However, the judgment has not been pronounced, and in such a
case, it cannot be held that the judgment is in favour of a dead person.
Itis settled law that once after hearing the arguments in a case judgment
is reserved, no application can be entertained. (Vide Arjun Singh Vs,
Mohindra Kumar, AIR 1964 SC 993; N.P. Thirugnanam (D) Lrs. “Vs. Dr.
R. Jagan Mohan Rao & Ors., AIR 1996 SC 116; Neki Vs. Satnarain, AIR
1997 SC 1334).
Order 23, Rule 1 deals with withdrawal and adjustment of Suits. It
permits a person to withdraw the Suit, but he shall not be entitled to
maintain another Suit unless he has taken the leave of the Court while
withdrawing the earlier Suit.
“The Hon'ble Supreme court time and again held that even if the earlier
writ petition has been dismissed as withdrawn, Public Policy, which is
reflected in the principle enshrined in order XXIII Rule 1 (CP.C,, mandates
that successive writ petition be not entertained for the same relief.(CPC. Reference to Amendment Acts—1999 & 2002 ay
In Hulas Rai Baij Nath Vs. Firm K.B, Bass & Co. , AIR 1968 SC 111,
the Apex Court considering the provision of Order XXIL, Rule lof CP.c.,
and particularly, sub-rule (3) thereof in crystal clear words held that where
Plaintiff withdraws from a suit without the permission of the Court to file a
fresh, he is precluded from i instituting a fresh suit in same subject matter
against the same parties.
In Sarguja Transport Service Vs. State Transport, AIR 1987 SC 88, the
Honble Apex Court held as under:
“ou The principle underlying R.1 of O.
XXIIL of the Code, is that when a plaintiff
once institutes a suit in a Court and thereby
avails of a remedy given to him under law, he
Cannot be permitted to institute a fresh suit in
respect of the same subject-matter again after
abandoning the earlicr suit or by withdrawing
it without the permission of the Court to
file fresh suit. Invito beneficium non datur,
The law confers upon a man no rights or
benefits which he does not desire. Whoever
waives, abandons or disclaims a right will lose
it. In order to prevent a litigant from abusing
the process of the Court by instituting suits
again and again on the same cause of action
without any good reason the code insists that
he should obtain the permission of the Court to
file a fresh suit after establishing either of the
two grounds mentioned in sub-rule (3) of R. 1
OQ. XXIIL The principle underlying the above
rule is founded on public policy, but it is not
the same as the rule of res judicata contained in
5. 11 of the Code which provides that no court
shall try any suit or issue in which the matter
directly or substantially in issue has been
directly or substantially in issue in a former
suit between the same parties, or between
Partics under whom they or any of them claim,70 Cre. Reference to Amendment Acts—1999 & 2002
litigating under the same title, in a Court
competent to try such subsequent suit or the
suit in which such issue has been subsequently
raised, and has been heard and finally decided
by such Court. The rule of res judicata applies
to a case where the suit or an issue has already
been heard and finally decided by a Court. In
the case of abandonment of withdrawal of a
suit without the permission of the Court to file
a fresh suit, there is no prior adjudication of a
suit or an issue is involved, yet the code
provides, as stated earlier, that a second suit
will not lie in sub-rule (4) of R. 1 of O. XXIII
of the Code when the first suit is withdrawn
without the permission referred to in sub-rule
(3)in order to prevent the abuse of the process
of the Court...
=ahel It is common knowledge that very often
after a writ petition is heard for some time
when the petitioner or his counsel finds that the
Court is not likely to pass an order admitting
the petition, request is made by the petitioner
or by his counsel, to permit the petitioner to
withdraw the writ petition without seeking
permission to institute a fresh writ petition. A
Court which is unwilling to admit the petition
would not ordinarily grant liberty to file a fresh
petition while it may just agree to permit the
withdrawal of the petition.....”
In M/s. Upadhyay & Co. Vs. State of U.P. & ors., AIR 1999 SC 509,
the Apex Court has emphasized to apply the principle enshrined under
Order XXIII Rule 1 C.P.C., being based on public policy, in all the Courts’
proceedings. The Apex Court held that the principle was applicable also in
case of filing the special leave petition before the Apex Court under Article
136 of the Constitution. It was further clarified by the Court that liberty toCPC Reference to Amendment Acts—1900 & 2002 a
file a fresh can be granted only in certain contingencies as provided under
the said provision.
A Division Bench of this Court in Khacher Singh Vs. State of UP. &
ors., AIR 1995 All 338, considered the issue at length and interpreted the
provisions of Rule 7 of Chapter XXII of the Allahabad High Count Rules,
1952 which bar the filing of the second writ Petition on the same cause of
action and held that the second petition for the Same Cause of action not to
be maintainable, Other Division Benches in L.S. Tripathi Vs. Banaras
Hindu University & ors., (1993) | UPLBEC 448; and Saheb Lal Vs.
Assistant Registrar (Administration), Banaras Hindu University, Varanasi
& ors., (1995) | UPLBEC 31, held that filing successive writ petitions for
the same cause of action is not only against the public policy, but also
amounts to abuse of the process of the Court,
Similar view has been reiterated by the Division Bench of the Delhi
High Coun in 5. Jaswant Singh (deceased by LLRs.) Vs. S. Darshan Singh
(deceased by LR.) & ors., AIR 1992 Del 80,
A Division Bench of Rajasthan High Court in Radhakrishna & anr. Vs.
State of Rajasthan & ors., AIR 1977 Raj 131, observed that undoubtedly,
the Code of Civil Procedure does not apply to the writ jurisdiction, but the
principles enshrined in its provision can be made applicable so far as they
are in consonance with the rules framed by the High Court or where the
tules are silent and applying the Provisions of Order XXII, Rule | in writ
Jurisdiction as similar Provisions existed in the Rajasthan High Court Rules
Putting an embargo to file a successive writ Petition for the same cause of
action, observed that the Court can permit a party to withdraw the Petition
with liberty to file a fresh one, but that Power is subject to the conditions
Prescribed in the provisions of Order XXII, Rule | of the Code and not
beyond it.
In Baniram & ors. Vs, Gaind & ors., AIR 1982 SC 789, the Apex
Court held that permission to withdraw a case with liberty 10 file afresh on
the same cause of action can be Sranted provided it is in the interest of
Justice or advances the cause of ‘justice.
The right to withdraw a suit or abandonment of the whole or a part of
claim is not absolute, Such right cannot be exercised to abuse the process of
the Court or play fraud upon the party as well as upon the Court. Therefore,
it is necessary that if a person wants to approach the Court again, he must
aa92 CPC. Reference to Amendment Acts—1999 & 2002
seek liberty of the Court to file a fresh petition. Even the Court cannot grant
a permission to withdraw a petition straightway, as it has to consider and
examine as to Whether any right has been accrued in favour of any other
person,
While considering the oral prayer or application for withdrawal of a
petition the Court has to bear in mind that the act of the party should not be
to defeat a right accrued in favour of any other person of the prayer was to
over teach the Court. However, the prayer may be granted in order to
remove the public inconvenience or when the petitioner does not want to
press the petition. (Vide Shaik Hussain & Sons Vs. M.G. Kanniah & anr.,
AIR 1981 SC 1725; and Smt Madhu Jajoo Vs. State of Rajasthan & ors.,
AIR 1999 Raj 1).
Order XXIII, Rule | of the Code does not confer an unbridled power
upon the Court to grant permission to withdraw the petition, with fiberty to
file afresh, on the same cause of action, il can do so only on the limited
grounds mentioned in the provision of Order XXIII, Rule 1 of the Code,
and they are, when the Court is satisfied that the suit must fail by reason of
some formal defect or there are sufficient grounds for allowing the plaintiff
to institute a fresh suit for the same subject matter, and that too, on such
term as the Court thinks fil, The grounds for granting a party permission to
file a fresh suit, including a formal defect, i.c., in the form or procedure not
affecting the merit of the case, such as also of statutory notice, under
Section 80 of the Code, mis-joinder of the parties or cause of action, non-
payment of proper Court-fee or stamp fee, failure to disclose cause of
action, mistake in not seeking proper relief, improper or erroneous
valuation of the subject matter of the suit, absence of territorial jurisdiction
of the Code or defect in prayer clause etc. Non-joinder of a necessary party,
omission to substitute heirs etc may also be considered in this respect, or
where the suit was found to be premature, or it had become infroctuous, or
where relief could not be, and where the relief even if granted, could not be
executed, may fall within the ambit of sufficient ground mentioned in that
provision. (Vide Ms. Kankan Trading Co. Vs. Suresh Govind Kamath
Tarkas & Ors., AIR 1986 SC 1009; Muktanath Tewari & Anr. Vs.
Vidyashanker Dube & Ors. AIR 1943 All 67; and Ramrao Bhagwantrao
Inamdar & Anr, Vs. Baba Appanna Samage & Ors., AIR 1940 Bom. 121
(F.B.)).CPC. Reference fo Amendment Acts—1999 & 2002 9
The Court can grant such permission even suo motu without any
application, The granting of permission to ‘withdraw a suit with liberty to
file a fresh suit removes the bar of res judicata; it restores the plaintiff to the
Position, which he would have occupied had he brought no suit at all.
Order 23, Rule 3 provides for compromise of a Suit. However,
consent decree cannot be passed in contravention of the law.(Vide
Nagindas Ramdas Vs. Dalpatram Iecharam alias Brijram & Ors, AIR
1974 SC 471; C.F. Angadi Vs. Y.S. Hirannayya, AIR 1972 SC 239: State
of Punjab & Ors. Vs. Amar Singh & Anr., AIR 1974 SC 994: and Smt
Nai Bahu Vs, Lala Ramnarayan, AIR 1978 SC 22).
However, in the Proceedings under Order 23, Rule |, third party's right
cannot be set at naught by a consent order. (Vide Ram Chndra Singh Vs,
Savitri Devi, (2003) § SCC 319),
Where a decree is passed on compromise of the parties, it can still be
said to be a judgment and decree on facts and the Court has a power to
make changes in the compromise agreement. It is binding on the parties.
(Vide Jineshwardas Vs. Jagrani, ATR 2003 SC 4596; Rajasthan Financial
Corporation Vs. Man Industrial Corporation Ltd., (2003) 7 SCC 552: Dr.
Renuka Datla Vs, Solboy Pharmaceutical Y.B., (2004) | SCC 149; and
Jamshed Hormusji Wadia Vs. Board of Trustees, Port of Mumbai, AIR
2004 SC 1815).
Order 26 deals with commission and commissions to examine
witnesses,
Order 26, Rule 4-A has been inserted by Amendment Act, 1999, It
empowers the court that in order to have a expeditious disposal of a case,
the court can issue the commission of any person residing within the local
limits of its jurisdiction and evidence ‘$0 recorded shall be read in evidence,
It may be necessary in case of recording of the evidence of a person who is
not capable to come to the court,
Order 37 deals with Summary procedure. Rule 4 thereof, provides a
poWer to set aside the decree in summary proceedings. Because of the
involvement of petty matters they are tried summarily, if defendant Satisfies
the court that it could not defend it properly or could not remain present and
adectes is passed.u (CPC Reference to Amendment Acts—1999 & 2002
Provisions in O. 37 R. 4 of the Code provide for “special
circumstance.” In Ramkarandas Radhavallabh Vs. Bhagwandas
Dwarkadas, AIR 1965 SC 1144, the Supreme ‘Court held that once an
application under O. 37 R. 4f the Code is filed, the existence of “special
grounds” is required to be there to set-aside the judgment and decree and in
view of the specific provisions thereof, the provisions of Section 151 of the
‘Code are not attracted.
"Special circumstances” means something of higher gravity than
“sufficient cause’, something beyond contro! of the person
of absolutely unavoidable circumstance. Thus, it is not synonymous with
sufficient cause.
In LR. Raja Vs. Sha Rikhabdas Suresh Kumar, 1986 MLJ 108,
while considering the case under O. 37 R. 4 of the Code, the Madras High
‘Court held as under:~
“In invoking 0.37 R.4, the defendant will
have to satisfy two conditions; viz (1) there
was. no due service of summons in the Suit
of that he was. prevented by sufficient cause
from getting leave to defend the Suit and (2)
that he has a substantial defence to raise in the
Suit. Special circumstances mentioned in
0.37 RA only contemplate the aforesaid
conditions which the defendant must satisfy
to entitle him to have the decree set aside and
get leave to defend the action.”
In Subash Raina Vs, Suraj Parkash, AIR 1977 J&K. 30, a similar
view has been reiterated and it was held that “special circumstance” is not
synonymous with the “sufficient cause” occurring in 0.9 R.13 of the
Code.
In Karumilli Bharathi Vs. Prichikala Venkatachalam, AIR 1999 A.P,
427, the Andhra Pradesh High Court considered a similar provision and
reiterated the same view holding that there is a distinction in “sufficient
cause” and “special circumstances.” The Court further observed as
uunder:~crc Reference to Amendment Acts—1999 & 2002 s
“It is certain for the reasons offered to
explain the special circumstances, should be
Such that a person absolutely had no
Possibility of appearing before the Court on a
relevam day... ... Thus, a special
circumstance would take with it a cause ‘or
reason which prevented a person in such a
way, that it is almost difficult, for him to
attend the Court or to perform certain acts
which he is required to do, Thus, the reason
‘or’ cause found in ‘special circumstances’ is
More strict or more stringent than ‘sufficient
cause’. What would constitute a special
circumstance would depend upon facts of each
case,”
This Court in Mohan Lal Vs. Om Prakash, AIR 1989 Raj. 132 also
considered the issue and observed as under:-
“Under R. 13 of O. 9, the Court has
Power to set aside the ex parte decree if the
defendant succeeds in satisfying the Court
‘that he was prevented by sufficient cause from
appearing in the Court. Under R.4 of O. 37,
it is necessary for the defendant to say that
special circumstances exist to set aside the
decree, Mere sufficient ground cannot be
equated with special reason, sufficient cause
and ‘special circumstances’ appearing in R.13
of 0. 9 and R. 4 of O. 37 respectively are not
synonymous. Legislature in its wisdom has
used the words special circumstances in R.
4 of O. 37, The gravity of the reasons is more
high in case of ‘special circumstances’ as
provided under R. 4 of O. 37. It will not be
‘out of place here to mention that the words
sufficient cause and special reasons carry
different meanings. The word cause cannot beba CPC. Reference to Amendment Acts—1999 & 2002
equated with reasons and similarly, the word
sufficient cannot be equated with special.
Special circumstances ordinarily mean that
the defendant was prevented to appear in the
Court on account of unavoidable
circumstances beyond his control. In
special circumstances, hold that the
meaning to the words sufficient cause under
R. 13.0. 9 cannot be given to the words used
in R. 4 0.37 to. the words ‘special
circumstances’.
Therefore, in view of the above, the party seeking setting-aside the
judgment under O. 37 R. 4 is required to satisfy the Court that (i) it had
the substantial defence, which could have been allowed to him to get the
leave to defend in the Suit; (ii) he could not appear in the matter because
of unavoidable circumstances; and (iii) it was absolutely impossible for him
to appear as the circumstances had been beyond. his control.
Tn Rajni Kumar Vs. Suresh Kumar Malhotra, AIR 2003 SC 1322, the
Apex Court has reiterated the same view explaining the scope of special
circumstances.
Order 39, Rules 1 and 2 deals with power to grant interim relief.
In Premji Ratansey Shah Vs. Union of India & Ors., (1994) 5
SCC 547, the Hon'ble Supreme Court held that temporary injunction
should be granted by a court after considering all the pros and cons of the
case in a given set of facts to protect the possession of a person and the
relief of temporary injunction cannot be granted just on merely asking that
relicf for the reason that such a relief is discretionary and equitable.
In S.M. Dyechem Ltd, Vs. Cadbury (India) Ltd, ATR 2000 SC
2114, the Hon‘ble Supreme Court considered the principle governing the
grant of temporary injunction, observing that the three basic Principles, Le.
prima facie case, balance of convenience and irreparable injury, have to
be considered in a proper perspective in the facts and circumstances of a
particular case and in case the principles have not been properly applied,
the appellate court can interfere in aa interlocutory proceeding under O.
39 Rr. | and 2 of the Code.CPC Reference to Amendment Acts—1999 & 2002 7
In Anand Prasad Agarwalla Vs. Tarkeshwar Prasad & Ors, AIR
2001 SC 2367, the Hon‘ble Supreme Court re-stated the Principles for grant
of temporary injunction, but observed that itmay not be appropriate for
any court to hold a mini trial at the ‘Stage of grant of temporary
injunction. That was a case where the temporary injunction was refused
10. person who was in possession of the land.
In Colgate Palmolive (India) Lid. Vs. Hindustan Lever Lid, AIR
1999 SC 3105, the Hon'ble Supreme Court held as under:-
"We, however, think it fit to note
herein below certain Specific considerations in
the matter of grant Of interlocutory injunction,
the basic being non-expression of Opinion as
to the merits of the matter by the Court, since
the issue of grant of injunction usually, is at
the earliest possible stage so far as the time-
frame is concerned. The other
considerations which ought to weigh with the
court hearing the application or petition for the
rant of injunctions are as below:-
(i) Extent of damages being an
adequate remedy;
(ii) Protect the plaintiff's interest
for violation of his rights though
however having regard to the
injury that may be suffered by the
defendants by reason therefor;
(iii) The court while dealing with
the matter ought not to ignore the
factum of strength of one party's
case being stronger than the others;
(iv) No fixed rules or notions ought
to be had in the matter of grant of
injunction but on the facts and
circumstances of each case-the relief
being kept flexible;bi] CPC. Reference to Amendment Acts—1999 & 2002
(¥) The issue is to be looked from
the point of view as to whether on
refusal of the injunction the plaintiff
would suffer irreparable loss and
injury keeping in view the strength
‘of the parties’ case,
(vi) Balance of convenience or
inconvenience ought to be
considered as an important
requirement even if there is a
serious question or prima facie case
in support of the grant;
(vil) Whether the grant or
refusal of injunction will adversely
affect the interest of general public
which can cannot be compensated
otherwise.”
In Hindustan Petroleum Corporation Ltd. Vs. Sri Stiman Narayan &
Anr., AIR 2002 SC 2598, the Hon'ble Supreme Court explained the
purpose of grant of temporary injunction, observing as under:-
“It is elementary that grant of an
interlocutory injunction during the pendency
of the legal proceedings is a matter requiring
the exercise of discretion of the court. While
exercising the discretion the court normally
applies the following tests:-
(i) whether the plaintiff has a prima
facie case;
(i) whether the balance of
convenience is in favour of the
plaintiff; and
(iii) whether the plaintiff would suffer
an irreparable injury if his prayer for
interlocutory injunction is
disallowed.CPC Reference to Amendment Acts—1999 & 2002 ”
The discretion whether or not to grant an
interlocutory injunction has to be taken at the
time when the exercise of the legal right
asserted by the plaintiff and its alleged
violation are both contested and remain
uncertain till they are established on evidence
at the trial. The relief by way of interlocutory
injunction is granted to mitigate the risk of
injustice to the plaintiff during the period
before which that uncertainty could be
resolved. The object of the interlocutory
injunction is to protect the plaintiff against
injury by violation of his right for which he
could not be adequately compensated in
damages recoverable in the action if the
Uncertainty were resolved in his favour at
the trial. The need for such Protection has,
however, to be weighed against the
corresponding need of the defendant to be
Protected against the injury resulting from
his having been prevented from exercising
his own legal rights for which he could
not be adequately compensated. The Court
must weigh one need against another and
determine where the “balance of
convenience” lies. (See Gujarat Bottling Co.
Ltd. & Ors. Vs. Coca Cola Co. & Ors,
(1995) 5 SCC $45)."
In Dorab Cawasji Warden Vs. Coomi Sorab Warden & Ors., (1990)
2SCC 117, the Apex Court, discussing the Principles to be kept in mind
in considering the prayer for interlocutory mandatory injunction,
observed as under:-
“The relief of interlocutory mandatory
injunctions are thus granted generally to
Preserve or restore the status quo of the
Jast_non-contested status which Preceded
i ———100
CPC Reference to Amendment Acti—1999 & 2002
the pending controversy until the final
hearing when full relief may be granted
‘or to compel the undoing of those acts
that have been illegally done of the
restoration of that which was wrongfully
taken from the party complaining. But
since the granting of such an injunction to
a party who fails or would fail to
establish his right at the trial may cause
great injustice or irreparable harm to the
party against whom it was granted or
alternatively not granting of it to a party
who succeeds or would succeed may
equally cause great injustice or irreparable
harm. Courts have evolved certain
guidelines. Generally stated these
guidelines are:-
(1) The plaintiff has a strong case for
trial, That is, it shall be of a higher
standard than a prima facie case that is
normally required for a prohibitory
injunction.
(2) It is necessary to prevent
irreparable or serious injury which
normally cannot be compensated in
terms of money.
(3) The balance of convenience is in
favour of the one secking such relief.
Being essentially an equitable relief the
grant or refusal of an interlocutory
mandatory injunction shall ultimately rest
in the sound judicial discretion of the court
to be exercised in the light of the facts and
circumstances in each case. Though the
above guidelines are neither exhaustive
nor complete or absolute rules, andCPC Reference to Amendment Acts—1999 & 2002 101
there may be exceptional circumstances
needing action, applying them as a pre-
requisite for the grant of refusal of such
injunctions would be a sound exercise of
a judicial discretion.”
Tt is settled law that even if all the ecessary ingredients are
established, the court may fefuse to grant an interim injunction.
In Mahadeo Savalaram Shelke & Ors, Vs, Pune Municipal
Corporation & Anr., (1995) 3 SCC 33, the Hon'ble Supreme Court held
that the courts, in cases where injunctions are to be granted, should
necessarily consider the effect on public Purposes thereof and also
Suitably mould the relief.
In National Airport Authority & Ors, Vs. Vijaydutt, AIR 1990 MP
326, it was held as under:-
“Apart from what has been stated above,
felicf of temporary injunction is an
equitable one and is in the domain of the
courts’ judicial discretion. Therefore, even
where the three well-known conditions (prima.
facie case, balance of convenience and
irreparable injury) requisite for grant of the
telief exist, the court, on the facts and in
the circumstances of the case, in exercise of its
discretion judiciously, may still refuse the
relief as where there has been delay and the
party applying for the relief has mot come
with clean hands."
In The Municipal Corporation of Delhi Vs. Suresh Chandra Jaipuria &
Anr,, AIR 1976 SC 2621, the Hon'ble Supreme Court, while dealing with
the provisions of Section 41 (h) of the Specific Reliefs Act, 1963, laid
down that injunction, which is adiscretionary equitable relief, cannot
be granted when an equally efficacious relief is obtainable in any
‘other usual mode or proceeding except in the eases of breach of trust.
In Smt. Chandra Kumari Vs. State of Rajasthan & Ors., 2000 (2)
WLC 279, the Court held that temporary injunction in favour of a102 CPC. Reference to Amendment Acts—1999 dt 2002
person holding title but is not in possession, cannot be granted. This
judgment has been passed in consonance with the law laid down by the
Hon‘ble Supreme Court in Terene Traders Ws. Ramesh Chandra
Jamnadas & Co., AIR 1987 SC 1492.
In Sree Jain Swetamber Terapanthi Vid(S) Vs. Phundan Singh &
Ors., AIR 1999 SC 2322, the Supreme Court held that it is one thing to
conelude that the trial court has not made its prima facie satisfaction on
merits but granted temporary injunction and it is another thing to hold
that the trial court has gone wrong in recording the prima facie
satisfaction.
In Dalpat Kumar & Anr, Vs, Prahlad Singh & Ors., AIR 1993 SC
276, the Hon'ble Supreme Court explained the scope of aforesaid
material circumstances, but observed as under:-
“The phrases ‘prima facie case’, ‘balance
of convenience’ and ‘irreparable loss’ are not
thetoric phrases for incantation, but words of
width and clasticity, to meet myriad
situations presented by man’s ingenuity in
given facts and circumstances, but always is
hedged with sound exercise of judicial
discretion to meet the ends of justice, The
facts rest cloquent and speak for themselves.
Ibis well nigh impossible to find from facts
prima facie case and balance of
convenience.”
In Smt. Vimla Devi Vs. Jang Bahadur, AIR 1977 Raj 196, this
court held as under:~
“The order refusing temporary injunction
is of a discretionary character. Ordinarily
Court of appeal will not interfere with the
exercise of discretion by the trial court and
substitute for it its own discretion. The
interference with the discretionary order,
however, may be justified if the lower court
acts arbitrarily or perversely, capriciously or in
disregard of sound legal principles or withoutCPC Reference to Amendment Acts—1999 & 2002 103
considering all the relevant records...... A
mere possibility of the appellate court
coming to a different conclusion on the same
facts and evidence will also not justify
interference, ....The appellate court would be
acting contrary to the well established
Principles more so when it does not deal with
the reasoning that prevailed with the trial
court and further when it does not apply its
Judicial mind on the materials placed on the
record....... A prima facie case implies the
Probability of the plaintiff obtaining a relief
on the materials placed before the court at that
stage. Every piece of evidence produced
by either party has to be taken into
consideration in deciding the existence of a
Prima facie case to justify issuance ofa
temporary injunction..."
The interim order should not be passed in favour of a dishonest person
or where the Suit is not maintainable at all for the reason that this is the
relief in equity and Court should not help a guilty person. Nor interim relief
‘can be granted in favour of a trespasser or a person not in possession. (Vide
Nair Service Society Ltd. Vs. K.C. Alexander & Ors., AIR 1968 SC 1165;
M. Kallappa Setty Vs. M.V. Lakshminarayana Rao, AIR 1972 SC 2299.
Ratiram Pundlik Khedkar Vs, Pundlik Arjun Khedkar, AIR 1982 Bom 79;
Kayamuddin Shamsuddin Khan Vs State Bank of India, (1998) 8 SCC
676; K. Bhaskaran Vs. Sankaran Vaidhyan Balen & Anr, (1999) 7 SOC
310; and Hem Chand Jain Vs. Anil Kumar, AIR 1993 Del 99).
In exercise of the power under Order 39, Rule j of the Code, injunction
can also be passed against the plaintiff, as the last two clauscs of the Rule
refer to orders of injunction against defendants, whereas the first clause (a)
does not confine to application filed by the plaintiffs. The words “by any
Party to the suit™ in the said application are sufficient enough to indicate that
the Legislamure intended such orders ta be passed even on applications filed
by the defendants. (Vide Vincent Vs. Aisumma, AIR 1989 Ker 81;
Sathyabhama Amma Vs. Vijaya Amma, AIR 1995 Ker 74; and Shiv Ram
CC_ ££104 (C.P.C. Reference to Amendment Acts—1999 & 2002
Singh Vs. Mangara, AIR 1989 All 164). The purpose for granting
temporary injunction is to maintain status quo.
A similar view has been reiterated in Satyam Infoway Ltd. Vs. Sifynet
Solutions (P) Lid., (2004) 6 SCC 145.
The Court should not grant a relief which can be granted at a final stage
or which amounts to final relief unless there arc special circumstances.
Only in extraordinary circumstances Court may be justified in granting a
relief at the time of conceding the interlocutory application, but for that
reasons must be recorded by the Court, as has been held by the Calcutta
High Court in Indian Cable Co. Lid. Vs. Smt Sumitra Chakraborty, AIR
1985 Cal 248, wherein the Court placed a very heavy reliance wpon the
judgment in Acrow Limited Vs. Rex Chain Belt, (1971) 3 AI ER 1175.
No interim relief amounting to fina! relief can be granted at the initial
stage in the nature of interim relief as the Hon'ble Apex Court has
consistently and persistently deprecated such a practice. (Vide State of
Jammu & Kashmir Vs. Mohammed Yakoob Khan & Ors. (1992) 4 scc
167; U.P. Junior Doctors Action Committee & Ors. Vs. Dr. B, Shital
Nandwani, 1992 Suppl (1) SCC 680, Gurunanak Deo University Vs.
Parminder Kumar Bansal & Anr., AIR 1993 SC 2412; Saint John’s
Teachers Training Institute (for Women) & Ors. Vs. State of Tami! Nadu
& Ors., (1993) 3 SCC 595; Dr. B.S.Kshirsagar Vs, Abdul Malik
Mohammad Musa, 1995 Supp! (2) SCC $93; The Bank of Maharashtra
Vs. Ray's Shopping and Transport Company Pvt. Lid., AIR 1995 SC
1368; Commissioner/Secretary, Government of Health & Medical
Edveation Department Vs. Dr. Ashok Kumar Kohli, 1995 Suppl (4) SCC
214; Union of India Vs. Shri Ganesh Steel Rolling Mills, (1996) 8 SCC
447; and State of Madhya Pradesh Vs. M.V.Vyavsaya and Co., (1997) 1
SCC 156).
The logic behind this remains that the ill-conceived sympathy
emasculates as interlocutory judgment exposing judicial discretion to
criticism to degenerating private benevolence and the Court should not be
guided by misplaced sympathy, rather it should pass interim orders making
accurate assessment of even the prima facie legal position. The Court
should not embrace the authorities under the Statute by taking over the
functions to be performed by the Statutory Authorities.CPC Reference to Amendment Acts 1909 & 2002 10s
In Union of India Vs, Era Educational Trust, (2000) 5 SCC $7, the
Hon'ble Supreme Court after considering its large number of judgments
held that while passing the interim order in exercise of writ jurisdiction
under Article 226 of the Constitution, Principles laid down for granting
interim relief under Order 39 of Code should be kept in mind, It can neither
be issued as a matter of right nor it should be in the form which can be
granted only as final relief,
In Morgan Stanley Mutual Fund Vs. Kartick Das, (1994) 4 SCC 225,
the Hon ble Apex Court held that €x-parte injunction could be granted only
under exceptional circumstances, The factors which should weigh for grant
of injunction arc—{a) whether irreparable or serious mischief will ensue to
the plaintiff; (b) whether the refusal of ex-parte injunction would involve
Greater injustice than grant of it would involve: (c) even if ex-parte
injunction should be granted, it should only be for limited period of time:
and (d) general principics like prima facie case, balance of convenience and
imeparable loss would also be considered by the Court.
In Burm Standard Co. Ltd, & ors, Vs. Dinabandhu Majumdar & Anr.,
(1995) 4 SCC 172, the Hon'ble Supreme Court deprecated the practice of
grant of interim relicf which amounts to final relief, observing that High
Count should exercise its discretion while granting interim relief reasonably
and judiciously, and if loss can be repairable or the loss can be satisfied by
giving back wages ete. in the end, if petition ultimately succeeds, it is not
desirable that the relief should be granted by interim order, Hon'ble Apex
Coun further observed as under:-
“It should be granted only in exceptional
circumstances where the damage cannot be
repaired, for the reason that if no relief for
continuance in service is granted and ultimately
his claim.....is found to be acceptable, the
damage ean be repaired by granting him all
those monetary benefits which he would have
received and he continued in service. We are,
therefore, of the opinion that in such cases it
would be imprudent to grant interim relief."
Similaz view has been reiterated in AP. Christians Medical Educational
Society Vs. Govt. of A.P., AIR 1986 SC 1490; State of Jammu &
Se106 CPC. Reference to Amendment Acts—1999 & 2002
Kashmir Vs. Mohd Yakoob Khan & ors., 1992 (4) SCC 167; U.P. Junior
Doctors Action Committee & Ors, Ws. Dr. B. Shital Nandwani, 1992
Suppl (1) SCC 680; Guru Nanak Dev University Vs. Parminder Kumar
Bansal & Anr,, AIR 1993 SC 2412; Saint John's Teachers Training
Institute (for Women) & Ors. Vs. State of Tamil Nadu & Ors., 1993 (3)
SCC 595; Dr. B.S. Kshirsagar Vs. Abdul Khalik Mohd Musa, 1995 Suppl
(2) SCC 593; The Bank of Maharastra Vs. Race Shipping & Transport Co,
(P) Lid., AIR 1995 SC 1368; Commissioner/Secretary, Government of
Health & Medical Education Department Vs. Dr. Ashok Kumar Kohli,
1995 Suppl (4) SCC 214; Burn Standard Co. Ltd. & Ors. Vs, Dinabandhu
Majumdar & Anr., AIR 1995 SC 1499; Union of India Vs. Shree Ganesh
Steel Rolling Mills Ltd., 1996 (8) SCC 347; State of Madhya Pradesh Vs.
MLV. Vyavsaya and Co., AIR 1997 SC 993; Central Board of Secondary
Education Vs. P, Sunil Kumar, (1998) $ SCC 377; Union of India Vs. Era
Educational Trust, (2000) $ SCC $7; Council for Indian School Certificate
Examination Vs. Isha Mittal & Anr., (2000) 7 SCC 521, State of U.P. &
Ors. Vs. Modem Transport Company, Ludhiana & Anr., (2002) 9 scc
514; State of U.P. & Anr. Vs. U.P. Rajkiya Nirman Nigam Karmehari
Sangharsh Morcha & Ors., JT (2002) 5 SC 322; Union of India & Ors.
Vs. M/s. Modiluft Ltd., AIR 2003 SC 2218; Regional Officer, (CBSE Vs.
Km. Sheena Peethambaran & Ors. (2003) 7 SCC 719; State of U.P. Vs.
Ram Sukhi Devi, 2004 AIR SCW 6953.
No litigant can derive any benefit from mere pendency of case ina
Court of Law, as the interim order always merges in the final order to be
in the case and if the Suit is ultimately dismissed, the interim order
stands nullified automatically. A party cannot be allowed to take any benefit
of his own wrongs by getting interim order and thereafter blame the Coun.
The fact that the suit/writ is found, ultimately, devoid of any merit, shows
that a frivolous petition had been filed. The maxim "Actus Curiae neminem
gravabit", which means that the act of the Court shall prejudice no-one,
becomes applicable in such a case. In such a situation the Court is under an
obligation to undo the wrong done to a party by the act of the Court. Thus,
any undeserved or unfair advantage gained by a party invoking the
jurisdiction of the Court must be neutralized, as institution of litigation
cannot be permitted to confer any advantage on a suitor from delayed action
of the Court. (Vide Dr. A.R. Sirear Vs. State of Uttar Pradesh & Ors...
1993 Suppl. (2) SCC 734; Shiv Shanker & Ors. V's. Board of Directors,
———— zh C Scrac Reference ta Amendment Acts—1999 & 200) 107
Uttar Pradesh State Road Transport Corporation & Anr., 1995 Suppl (2)
SCC 726; the Committee of Management, Arya Inter College Vs. Sree
Kumar Tiwary, AIR 1997 SC 3071; and GTC Industries Ltd, Vs, Union
of India & Ors., (1998) 3 SCC 376).
Mandatory injunction should be granted in rarest of the rare cases as
it amounts to granting the final relief, It can be passed only to restore status.
quo and hot to establish a new state of things, differing from the state which
existed at the date, when the suit was instituted. (Vide Nandan Pictures Led.
Vs. Art Pictures Lid. & Ors, AIR 1956 Cal 428; Rajalekshmi Amma &
Anr. Vs. Kunjipillai Amma & Ors., AIR 1959 Ker 277; The University of
Bihar & Ans. Vs. Rajendra Singh, AIR 1978 Pat 144; Dyneshwar Hari
Masurkar Vs. Atmaram Babusso Pednekar & Ors., AIR 1980 Goa 30;
U.P. State Electricity Board Vs. R. Wheeler & Anr., AIR 1983 All 8;
Indian Cable Co, Ltd, Vs. Smt Sumitra Chakraborty, AIR 1985 Cal 248;
Bala Din Yadav Vs. Ramdulare & Ors., AIR 1990 All 19),
Order 39, Rule 2-A deals with the power to enforce the order Passed
by the court and impose the punishment. It is settled legal proposition that
sale deeds so executed are a nullity as having been executed in disobedience
of the interim order of the Court. In Mulraj Vs, Murti Raghunathji Maharaj,
AIR 1967 SC 1386 the Hon'ble Supreme Court considered the effect of
action taken subsequent to passing of an interim order in its disobedience
and held that any action taken in disobedience of the order passed by the
Court would be illegal, subsequent action would be a nullity.
Similar view has been reiterated in Surjit Singh & Ors. Vs. Harbans
Singh & Ors., (1995) 6 SCC $0; and Govt. of A.P. Vs. Gudepu Sailoo &
‘Ors., AIR 2000 SC 2297,
A Constitution Bench of the Hon'ble Supreme Court, in State of Bihar
Vs. Rani Sonabati Kumari, AIR 1961 SC 221, has categorically held
that the said provisions deal with the willful defiance of the order passed
by the civil court, The Apex Court held that there must be willful
disobedience of the injunction passed by the court and order of punishment
be passed unless the court is satisfied that the party was, in fact, under a
misapprehension as to the scope of the order or there was an unintentional
wrong for the reason that the order was ambiguous and reasonably capable
of more than one interpretation or the party never intended to disobey the
ouder but conducted himself in accordance with the interpretation of the
—_—_._108 CPC. Reference to Amendment Acts—1999 & 2002
order. The proceedings are purely quasi-criminal in nature and are, thus,
punitive. Even the corporate body like municipality/government can be
punished though no officer of it be a party by name. A similar view has
been reiterated by the Hon'ble Supreme Court in Aligarh Municipal Board
& Ors. Vs, Ekka Tonga Mazdoor Union & Ors., AIR 1970 SC 1767; by
the Allahabad High Court in Ratan Narain Malla Vs. The Chief Secretary,
Govt. of U.P. & Ors.,1975 Cr.LJ. 1283; and by the Delhi High Court in
Mis Jyoti Limited Vs, Smt. Kanwaljit Kaur Bhasin & Anr., 1987 Cri. LJ.
1281.
In Tayabbhai M. Bagasarwalla & Ors. Vs. Hind Rubber Industries
Pvt. Lid, AIR 1997 SC 1240, the Hon'ble Supreme Court dealt with a case
of disobedience of an injunction passed under O. 39 Rr. | and 2 of the
Code, wherein the contention was raised that the proceedings under O. 39
R. 2A cannot be initiated and no punishment can be imposed for
disobedience of the order because the civil court, which granted the
injunction, had no jurisdiction to entertain the Suit. The Apex Court
rejected the contention holding that a party aggrieved of the order has a right
to ask the court to vacate the injunction pointing out to it that it had no
jurisdiction or approach the higher court for setting aside that order, but 50
Jong the order remains in force, the party cannot be permitted to disobey it
or avoid punishment for disobedience on any ground, including that the
court had no jurisdiction, even if ultimately the court comes to the
conclusion that the court had no jurisdiction to entertain the Suit, The party,
who willingly disobeys the order and acts in violation of such an injunction,
nuns the risk for facing the consequence of punishment.
In Samee Khan Vs. Bindu Khan, AIR 1998 SC 2765, the Hon'ble
Supreme Court held that in exercise of the power under O. 39 R. 2A of the
‘Code, the civil court has a power either to order detention for disobedience
of the disobeying party or attaching his property and if the circumstances
and facts of the case so demand, both steps can also be resorted to. The
Apex Court held as under:~
“But the position under R. 2A of Order 39 is
different, Even if the injunction order was
subsequently set aside the disobedience does
not get erased. It may be a different matter that
the rigor of such disobedience may be tonedCPC Reference to Amendment Acts—1990 & 2002 109
down if the order is subsequently set aside.
For what purpose the Property is to be attached
in the case of disobedience of the order of
injunction? Sub-rule (2) provides that if the
disobedience or breach continues beyond one
year from the date of attachment the Court is
empowered to sell the property under
attachment and compensate the affected party
from such sale proceeds. In other words,
attachment will continue only till the breach
continues or the disobedience persists Subject
to a limit of one year period. If the
disobedience ceases to continue in the
meanwhile the attachment also would cease.
Thus, even under Order 39 Rule 2-A the
attachment is a mode to compel the Opposite
Party to obey the order of injunction. But
detaining the disobedient parry in civil prison is
a mode of punishment for his being guilty of
such is obedience.”
Thus, in view of the above, it becomes crystal clear that the proceedings are
analogous to the contempt of court proceedings but they are taken under the
Provisions of O. 39 R. 2A of the Code for the reason that the special
Provision inserted in the Code shall prevail over the general law of
contempt contained in the ‘Contempt of Courts Act, 1972 (for short, “the
Act, 1972"). Even the High Court, in such a case, shall not entertain the
Petition under the provisions of Act, 1972, (Vide Ram Rup Pandey Vs,
R.K. Bhargava & Ors, AIR 1971 All 231; Smt. Indu Tewari Vs. Ram
Bahadur Chaudhari & Ors. AIR 1981 All 309; and Rudraiah Company
Vs. State of Kamataka & Ors., AIR 1982 Kar 182).
In Md. Jamal Paramanik & Ors, Vs. Md. Amanullah Munshi, AIR
1989 (NOC) 50 (Gau), the Gauhati High Court held that it is not
Permissible for a court to impose a fine Or compensation as one of the
punishments, for the reason that the provisions of ©, 39 R. 2A do not
provide for it. In Thakorlal Parshottamdas Vs. Chandulal ‘Chunnilal, AIR
ier Guj 124, Hon'ble Mr. Justice PN. Bhagwati (as His Lordship then
8 .
Saar110 CPC. Reference to Amendment Acts—1999 & 2002
was) held that the punishment for breach of interim injunction could not be
set-aside even on the ground that the injunction was ultimately vacated by
the appellate court. In Rachhpal Singh Vs. Gurdarshan Singh, AIR 1985
P&H 299, a Division Bench of Punjab & Haryana High Court held that
if an interim injunction had been passed and is alleged to have been
violated and application for initiating contempt proceeding under ©, 39 R.
2A has been filed but during its pendency the Suit itself is withdrawn, the
court may not be justified to pass order of punishment at that stage. Thus, it
made a distinction from the above referred Gujarat High Court's decision in
‘Thakorla! Parshottamdas (supra) that contempt proceedings should be
initiated when the interim injunction is in operation.
A Constitution Bench of the Hon’ble Supreme Court in The State of
Bihar Vs. Rani Sonabati Kumari, AIR 1961 SC 221, observed that the
purpose of such proceedings is for the enforcement or effectuation of an
order of execution. Similarly, in Sitaram Vs. Ganesh Das, AIR 1973 Alld
449, the Court held as under:
“The purpose of Order 39, Rule 2-A, Civil
P.C. is to-enforce the order of injunction. Itis. a
provision which permits the Court to execute
the injunction order. Its provisions are similar
to the provisions of Order 21, Rule 32, i
P.C. which provide for the execution of a
decree for injunction. The mode of execution
given in Order 21, Rule 32 is the same as
provided in Rule 2-A of Order 39. In either
case, for the execution of the order or decree of
injunction, attachment of property is to be
made and the person who is to be compelled
to obey the injunction can be detained in civil
prison. The purpose is not to punish the man
but to see that the decree or order is obeyed
and the wrong done by disobedience of the
order is remedied and the status quo ante is
brought into effect. This view finds support
from the observations of the Supreme Court in
the case of State of Bihar v. Sonabati Kumari,
—————————— o#-=-=CRC Reference to Amendment Acts—1999 & 2002 a
AIR 1961 SC 221; while dealing with O, 39,
Rule 2(iii), Civil PLC, (without the U.P.
Amendment) the Court held that the
Proceedings are in Substance designed to effect
enforcement of or to execute the order, and a
Parallel was drawn between the Provisions of
O. 21, R. 32 and of O, 39, R. 2 cP.c,
which is similar ta Order 39, R. 2-A. This
curative function and purpose of Rule 2-A of
Order 39, Civil P.C, is also evident from the
Provision in Rule 2-A for the lifting of
imprisonment, which normally would be
when the order has been complied with and
the coercion of imprisonment no longer
remains necessary. Hence, even if Sitaram had
carlier been sent to the civil imprisonment, he
would have been released on the tin shed being
removed, and it would therefore now serve na
Purpose to send him to prison. For the same
reason, the attachment of property is also no
longer needed. The order of the Court below
has lost its utility and need no longer to be kept
alive.”
In Kochira Krishnan Vs, Joseph Desouza, AIR 1986 Ker 63, it has
been held that violation of injunction or even undertaking given before the
Court, is punishable under O, 39 R. 2A of the Code. ‘The punishment can
be imposed even if the matter stood disposed of, for the reason that the
court is concerned only with the question whether there was a disobedience
of the order of injunction or violation of an undertaking given before the
court, and not with the ultimate decision in the matter, While deciding the
said case, the Court placed reliance upon the judgment of the Privy Council
in Eastern Trust Co. Vs. Makenzie Mann & Co. Lid, AIR 1915 PC 106,
wherein it had been observed as under:-
“An injunction, although subsequently
discharged because the Plaintiff's case failed,
must be obeyed while it lasts...."
<_< _—_——_a2 (CPC. Reference to Amendment Acti— 1999 & 2002
The Court had taken a similar view in Magna & Aor. Vs. Rustam &
‘Anr., AIR 1963 Raj 3. Thus, it is evident from the above discussion that the
proceedings are analogous to the proceedings under the Act, 1972. The only
distinction is that as the legislature, in its wisdom, has enacted a special
provision, enacting the provisions of O. 39 R. 2A, it would prevail over the
provisions of the Contempt of Courts Act.
Order 40, Rule 1 empowers the Court to appoint the receiver. Power
to appoint includes the power to suspend, remove or terminate him. (Vide
Rayrappan Vs. Madhavi Amma, AIR 1950 FC 140).
Order 41, Rule 1 stood amended to the effect that there may be one
appeal against the separate judgments and decrees if two or more than two
Suits have been tried together and a common judgment has been delivered.
It shall be accompanied by the copy of the judgment. Earlier, it was.
necessary to file the copy of the degree also, and therefore, separate appeals
‘were maintainable.
Order 41, Rule 13 which provided that Appellate Court had to give
notice to the court below, against which, appeal had been filed-stood deleted
by amendment.
Order 41, Rule 27 deals with the issue of taking evidence at appellate
stage. The provisions of O, 41, R. 27 of the Code have been considered
elaborately by the Hon'ble Supreme Court in Arjan Singh Vs. Kartar Singh
& Ors., AIR 1951 SC 193, wherein the Hon'ble Apex Court held that the
said provisions are applicable when some inherent lacuna or defect
becomes apparent while examining the case and are not applicable where a
discovery is made outside the Court of fresh evidence and application is
made to import it. The truc test to allow the application is as to whether
the appellate court is able to pronounce judgment on the material before it
without taking into epnsideration the additional ‘evidence sought to be
adduced. While deciding the said case, the Hon'ble Supreme Court placed
reliance upon two judgments of the Privy Council in Kessowji Ws.
GPP, Railway, 1934 Ind, App, 115; and Parsotim Thakur & Ors. Vs.
Lal Mohar Thakur & Ors., AIR 1931 PC 143.
A. Five Judges’ Bench of the Hon'ble Supreme Court in K.
Venkataramiah Vs. A. Seetarama Reddy, AIR 1963 SC 1526,
considering the said provisions, held as under:-CPC Reference to Amendment Acts—1999 & 2002 1
“vuueThe Appellate Court has the
Power to allow additional evidence not only
if it requires such evidence to enable it to
Pronounce judgment but also for ‘any other
substantial cause.’ There may well be cases
where even though the Court finds that it is
able to pronounce judgment on the set of the
record as itis and so it cannot strictly say that
it requires additional evidence ‘to enable it to
Pronounce judgment’, it still considers that
in the interest of justice something which
remains obscure should be filled wp so that it
can pronounce its judgment in a more
satisfactory manner. It is easy to see that such
requirement of the Court to enable it to
Pronounce judgment of for any other
substantial cause is not likely to arise
ordinarily unless some inherent lacuna or
defect becomes apparent on an examination of
the evidence. Thus, it made it clear that the
object of the said provision is to ask a
Party to adduce additional evidence.”
The Court further made it clear that though the provisions provide
for recording the reasons for accepting or rejecting the application
under the provisions but it is not mandatory,
In Soonda Ram & Anr. Ws. Rameshwarlal & Ans, AIR 1975 sc
479, the Hon'ble Supreme Court considered the case under the said
Provisions of the Rajasthan Act, 1950 and held that if the issue can be
decided on the basis of the evidence on record and there was no defect in
the pleadings of such a nature that would enable the Court to obliterate and
ignore the evidence adduced on the points involved, the application under
©. 41 R. 27 should not be allowed,
In Natha Singh Vs. Financial Commissioner Taxation, Punjab, AIR
1976 SC 1053, the Hon'ble Apex Court held that unless additional
evidence is necessary to pronounce the judgment, it should not be
permitted to be adduced as “the discretion given to the Appellate Court to
TNm4 CPC. Reference ta Amendment Acts—1 099 & 2002
receive and admit additional evidence, is not an arbitrary one but it is
jadicial one circumscribed by the limitation specified in ©. 41 R.. 27 of
the Code, If the additional evidence is allowed to be adduced contrary
tothe principles governing the reception of such evidence, it will be a
case of improper exercise of discretion and the additional evidence, so
brought on record, has to be ignored.
Reiterating the same view in The Land Acquisition Officer, City
Improvement Trust Board Vs. H. Naryanaiah & Ors., AIR 1976 SC
2403, the Apex Court further observed that for allowing the application the
Appellate Court must record reasons to show that it had considered the
requirement of ©. 41 R. 27 of the Code so that it may be examined as
how the Appellate Court found the admission of such evidence to be
necessary for some substantial reason, and if it finds it necessary to
admit it, an opportunity should be given to the other side to rebut any
inference arising from its existence by leading other evidence.
In Syed Abdul Khader Vs, Rami Reddy & Ors., AIR 1979 SC 553,
the Hon'ble Supreme Court considered its large number of earlier
judgments and held that the provisions of O. 41 R. 27 of the Code do
not confer a right on the party to adduce additional evidence, but if the
Court hearing the action requires any document so as to enable it to
pronounce judgment, it has the jurisdiction to permit additional evidence
to be adduced and in case the appellate court has given cogent reasons on
such application and order has been passed in the interest of justice, it does
not require any interference.
In Smt. Pramod Kumari Bhatia Vs. Om Prakash Bhatia & Ors.
AIR 1980 SC 446, the Hon'ble Supreme Court held that there can be no
justification to entertain the application under O, 41 R. 27ata belated
stage and it deserves to be rejected on this count alone.
Similarly, in M.M. Quasim Vs. Manohar Lal Sharma, AIR 1981 SC
1113, the Hon'ble Supreme Court held that the said provisions are meant
for adducing additional evidence “inviting the Court's attention toa
subsequent event of wide importance cutting at the root of the plaintiff's
right to continue the action.”
In. Shivajirao Nilangekar Patil Vs. Dr, Mahesh Madhav Gosavi,
AIR 1987 SC 294, the Apex Court held that if the application
unnecessarily prolongs the disposal of the case and not directlyCAC Reference to Amendment Acts— 1999 & 2002 1s
connected with the immediate issue, it deserves fejection, Party filing
such an application has to establish with his best efforts that such
additional evidence could not have been adduced at the first instance;
secondly, the party affected by the admission of additional evidence,
should have an opportunity to rebut such evidence; and thirdly, the
additional evidence was relevant for determination of the issue.
. In Mahavir Singh & Ors. Vs. Naresh Chandra & Ans, AIR 2001 SC
134, the Apex Court considered the issue elaborately and observed as
under:-
“Principle to be observed ordinarily is that
the Appellate Court should not travel outside
the record of the lower Court and cannot take
evidence in appeal. However, Section 107 (d)
C.P.C. is an exception to the gencral mule
and an additional evidence can be taken
‘only when the conditions and limitations laid
down in the said rule are found to exist. The
Court is not bound under the
circumstances mentioned under the rule to
Permit additional evidence and the parties
are not entitled, as a right, to the admission of
such evidence and the matter is entirely in the
discretion of the Court, which is, of course,
to be exercised judiciously and sparingly.”
While deciding the said case, the Hon'ble Supreme Court placed
reliance upon a large number of its earlier judgments including the
Municipal Corporation of Greater Bombay Vs. Lala Pancham & Ors.,
AIR. 1965 SC 1008, wherein it has been held that a mere defect in
coming to adecision is not sufficient for admission of evidence under
the rule,
In the case of Mahaveer Singh (supra), by the time the Honble
Supreme Court decided the case the additional evidence had been taken
On record. The Court rejected the prayer that the evidence already taken
on record may be considered by the Court below while making the
final decision as the provisions could become un-endimg and additionalCAG Reference to Amendment Acts—1999 & 2002
evidence can be taken only in the circumstances prescribed under 0. 41R.
217 of the Code.
In N. Kamalam (Dead) & Anr. Vs. Ayyasamy & Anr., (2001)
7 SCC 503, the Hon'ble Supreme Court held as under:-
"Needless to record that the Court shall
have to be conscious and must always act
with great circumspection in dealing with the
claims for letting in additional evidence,
particularly inthe form of oral evidence at
the appellate stage and that too, after a long
lapse of time. In our view, a plain reading of
O. 41 R.27 would depict that rejection of
the claim for production of additional
evidence after a period of ten years from the
date of filing of the appeal, as noticed
above, cannot be permitted to be erroneous or
an illegal exercise of discretion. The three
limbs of Rule 27 do not stand attracted. "
In Vasantha Viswanathan & Ors. Vs. V-K. Elayalwar & Ors.,
(2001) 8 SCC 133, the Hon'ble Supreme Court observed that while
considering an application for additional evidence, the Court should keep
in mind that the said evidence was not put to the other side while he was
deposing as a witness in the Suit. Therefore, the application under the
said provisions should not be accepted iin a routine manner.
In P. Purushottam Reddy Vs. Pratap Steel Ltd., AIR 2002 SC
771, the Apex Court examined a case, wherein the High Court had
remanded the case to the trial Court to take additional evidence and
decide the case afresh. The Court came to the conclusion that such a view
was not permissible in the fact situation of that case; thus, the order of
remand was set-aside observing as under:-
*__.....Although the order of remand has
been set-aside..... yet it should not be
understood as depriving the High Court of its
power to require any document to be
produced or any witness to be examined to
enable it to pronounce judgment, or for any
—————_—— oo —CPC. Reference to Amendment Acts—1999 & 2002 7
other substantial cause, within the meaning of
Clause (b) of Sub-rule (1) of Rule 27 of Order
41. That power inheres in the Court and the
Court alone which is hearing the appeal. It is
the requirement of the Court (and not of any
of the parties) and the conscience of the Court
feeling inhibits in satisfactory disposal of the
lis which rule the exercise of this power.”
Order 41 Rule 31 deals with the contents, date and signature of the
judgment.
The issue has been considered time and again. In Moran Mar
Basselios Catholicos & Anr. Vs, Most Rev. Mar Poulose Athanasius &
Ors., AIR 1954 SC $26, Hon'ble Apex Court held that it must be evident
from the judgment of the Appellate Court that the Court has
Properly appreciated the case, applied its mind and decided on considering
the evidence on record.
In Thakur Sukhpal Singh Vs, Thakur Kalyan Singh & Ors., AIR
1963 SC 146, the Supreme Court held that the provisions of Rule 31 of
Order 41 CPC. should be reasonably construed and should be held to
require the various particulars mentioned under Rule 31 to take into
consideration. The Court placed reliance upon its earlier judgment in
Sangram Singh Vs, Election Tribunal, Kota, AIR 1955 5C.425, wherein
it had observed that the procedural law has been designed to facilitate
Justice and too technical consideration of the Section that leaves no room
for reasonable elasticity of interpretation, should therefore, be guarded
against, as the same may frustrate the cause. of justice.
In Girijanandini Devi Vs. Bijendra Narain Choudhary, AIR 1967
SC 1124, the Hon'ble Apex Court has observed that when the Appellate
Court agrees. with the view of the trial court in evidence, it did not re-state
the effect of evidence or reiterate reasons given by the trial Court, The
expression of general agreement with reasons given by the court's decision,
which is under appeal, would ordinarily be suffice.
In Balaji Mohaprabhu & Anr. Vs, Narasingha Kar & Ors., AIR
1978 Ori 199, the Orissa High Court held that it would amount to
substantial compliance of the provisions of Order 41, Rule 23 CP.C. if the
Appellate Court's judgment is based on independent assessment of the
Saar8 CPC. Reference to Amendment Acts—1999 4 2002
relevant evidence on all important aspects of the matter and the findings
by the Appellate Court are well-founded and quite convincing.
In Nihal Chand Agrawal & Ors. Vs. Gopal Sahai Bhartia & Ors.,
AIR 1987 Del 206, the Delhi High Court held that under Order 41, Rule
31 of the Code of Civil Procedure, it is mandatory upon the trial court to
independently weigh the evidence of the parties and consider the relevant
points which arise for adjudication and the bearing of the evidence on
those points, As the first appellate court is the final court of fact. it must not
record a mere general expression of concurrence with the tial court's
judgment. Similar view has been expressed in Bogamal Gohain & Ors.
Vs. Lakhinath Kalita & Ors, AIR 1991 Gau 100.
In Samir Kumar Chatterjee Vs. Hirendra Nath Ghosh, AIR 1992 Cal
129, the Calcutta High Court held that the court of first appeal should not
merely endorse the findings of the trial court. In order to meet the
requirement of Order 41, Rule 31 C.P.C., the Appellate Court must give
reasons for its decision independently to that of the trial Court.
In a recent judgment, the Court, in Kuldeep Singh & Anr. Vs.
Chandra Singh, 1999 AIHC 979, has held that in order to meet the
requirement of substantial compliance of the provisions of Order 41
Rule 31 CP.C., the first appellate court must deal all the points agitated
before it and it must record reasons in support of its findings, and if the
provisions have substantially been complied with, the judgment would
not vitiale.
‘Order 47, Rule 1 deals with the power of review.
Section 114 read with ©.47 R.I C.P.C. prescribes the limitations
for entertaining areview petition, The same are: thatthe party filing the
application for review has discovered anew and important matter or
evidence after exercise of due diligence which was not within its
knowledge or could not be produced by it at the time when the decree
was passed; or order made or on account of some mistake or error
apparent on the face of the record; or “for any other sufficient reason.”
The aforesaid limitations are prescribed in acrystal clear language
and before a party submits that it had discovered a new and
important matter or evidence which could not be produced at the earlier
stage, the condition precedent for entertaining the review would be toCPC. Reference to Amendment Acts— 1999 & 2002 9
record the finding as to whether at the initial Stage, the party has acted
with due diligence. “Due” means just and proper in view of the facts and
circumstances of the case. (Vide ALK, Gopalan Vs. State of Madras, AIR
19350 SC 27).
Some mistake or error, if made ground for review, it must be apparent
‘on the face of the record and if a party files an application on the ground of
‘some other sufficient reason’, it has to Satisfy that the said sufficient
reason is analogous to the other conditions mentioned inthe said rule
ie. discovery of new and important matter or evidence which it could
not discover with due diligence or it was not within his knowledge, and
thus, could not produce at the initial stage. Apparent error on the face of
record has been explained to include failure to apply the law of limitation
to the facts found by the Court or failure to consider a particular
Provision of a Statute or a part thereof or a Statutory provision has been
applied though it was not in operation. Review is permissible if there is
an error of procedure apparent on the face of the record, e.g. the
judgment is delivered without notice to the parties, or judgment does
hot effectively deal with or determine any important issue in the case
though argued by the parties. There may be merely a smoke-line
demareating an error simplicitor from the error apparent on the face of
record. But, there cannot be a ground for entertaining the review in the
former ease. "Sufficient reason” may include disposal of acase without
Proper notice to the party aggrieved. Thus, if a person comes and satisfies
the Court that the matter has been heard without serving anotice upon
him, review is maintainable for the “sufficient reason” though there
may be no-error apparent on the face of record.
‘The expression “any other sufficient reason’ contained in 0,47
R.1 of the Code means “sufficient reason” which is analogous to those
Specified immediately to it in the provision of O. 47 R. | of the
Code,
In Chhajju Ram Vs. Neki & Ors., AIR 1922 PC 112, it was held
by the Privy Council that apology must be discovered between two
Erounds specified therein, namely; (i) discovery of new and important
matter or evidence; and (ii) error apparent on the face of record before
entertaining the review on any other sufficient ground. The same view
has been reiterated in Debi Prasad é& Ors. Vs. Khelawan & Ors., AIR
C—O120 CP.C. Reference to Amendment Acts—1999 & 2002
1957 All 67; and Mohammad Hasan Khan Vs. Ahmad Hafiz Ahmad
Ali Khan & Anr., AIR 1957 Nag 97.
In S. Nagraj & Ors. Vs. State of Karnataka & Anr., 1993 Supp
(4) SCC 595, the Hon'ble Apex Court considered the scope of review and
observed as under:~
“Review literally and even judicially
means re-examination or re-consideration.
Basic philosophy inherent in it is the
universal acceptance of human
fallibility. Yet in the realm of law, the courts
and even the Statutes lean strongly in
favour of finality of decision legally and
properly made, Exceptions both statutorily
and judicially have been carved out to
correct accidental mistakes or miscarriage of
. justice .. .. a. The expression, ‘for any
other sufficient reason’ in the clause has been
given an expanded meaning and a decree of
order passed under mis-apprehension of true
state of circumstances has been held to be
sufficient ground to exercise the power.”
‘The Court further held that the purpose of review is rectification of
an order which stems from the fundamental principle that the justice is
above all and it is exercised only to correct the error which has occurred
by some accident, without any blame. While deciding the said case, the
Hon'ble Supreme Court placed reliance upon a large number of
judgments, including in Raja Prithwi Chand Lal Choudhury Vs. Sukhraj
Rai & Ors., AIR 1941 FC 1; and Rajunder Narain Rac Vs. Bijai Govind
Singh (1836) | MOO PC 117. The same view has been reiterated by the
Hon'ble Apex Court in Oriental Insurance Co. Lid, & Anr. ¥s.
Gokulprasad Maniklal Agarwal & Anr. (1999) 7 SCC 578.
A Full Bench of the Himachal Pradesh High Court, in The Nalagarh
Dehati Co-operative Transport Society Ltd. Nalagarh Vs. Beli Ram &
Ors,, AIR 1981 HP 1, considered the scope of review and held that not
considering an existing judgment of the Hon'ble Supreme Court may be
a ground of review and for the same it placed reliance upon the
CC _—eeeeeCP.C. Reference to Amendment Acti—1999 & 2002 121
judgments of the Privy Council in Rajah Kotagiri Venkata Subbamma
Rao Vs. Rajah Vellanki Venkatrama Rao, (1900) 27 IA 197 (PC), wherein
it was held that the purpose of review, inter alia, is to correct an apparent
error which should not have been there when the judgment was given. The
Court also placed reliance upon the judgment of the Federal Court in
Hari Shankar Ws. Amath Nath, 1949 FC 106, wherein it was held as
under:-
the error could not be one
apparent on the face of record or even
analogous to it. When, however, the Court
disposes of a case without adverting to or
applying its mind to a provision of law
which gives it jurisdiction to act in a
particular way, that may amount to an error
analogous to one apparent on the face of
record sufficient to bring the case within the
purview of O.47 RI, Civil Procedure
Code,”
In Thadikulangara Pylee's son Pathrose Vs. Ayyazhiveettil Lakshmi
Amma's son Kuttan & Ors.. AIR 1969 Ker 186, the Kerala High Court
considered a review application which was filed on the ground of
subsequent judgment of the Court and dismissed the same observing as
under;-
“If it is borne in mind that a judicial
decision only declares and does not make or
change the law, although it might correct
Previous erroncous views of the law, a
review on the basis of subsequent binding
authority would not be a review of a decree
which, when it was made, was nightly made,
on the ground of the happening of a
subsequent event.”
While deciding the said case, the Court placed reliance upon the
Judgments of the Privy Council in Rajah Kotagiri Venkata Subbamma
(supra), Chhajju Ram (supra); Bisheshwar Pratap Sahi & Anr, Vs.
Parath Nath & Anr., AIR 1934 PC 213; and on judgments of the Hon'ble12 CPC Reference to Amendment Acts—1999 & 2002
Supreme Court in A.C. Estates Vs. M/s Serajuddin & Co., AIR 1966 SC
935; and Moran Mar Basselies Catholicos & Anr. Vs. Most Rev. Mar
Poulose Athanasius & Ors., AIR 1954 SC 526.
In Sow, Chandra Kanta & Anr. Vs. Sheik Habib, AIR 1975 SC
1500, the Hon'ble Apex Court dismissed a review application
observing as under:-
thus, making it that a review
proceeding virtually amounts toa rehearing.
May be ............ a review thereof must be
subject to the rules of the game and cannot be
lightly entertained. A review of a judgment is
serious subject and reluctant resort to it is
proper only where a glaring omission or
patent mistake or like grave of error is crept in
earlier by judicial fallibility.~
Similar view has been reiterated by the Hon'ble Supreme Court in
Sajjan Singh Vs. State of Rajasthan, AIR 1965 SC 845; G.L. Gupta Vs.
DN. Mehta, AIR 1971 SC 2162; M/s Northern India Caterers’ (India)
Ltd. Vs. Lt. Governor of Delhi, AIR 1980 SC 674; Aribam Tuleshwar
Sharma Vs. Aribam Pishak Sharma & Ors., AIR 1979 SC 1047; and
Green View Tea & Industries Vs. Collector, Golaghat, AIR 2002 SC 180,
Similarly, in Devaraju Pillai Vs, Sellayya Pillai, AIR 1987 SC
1160, the Hon'ble Apex Court held that if a party is aggrieved of a
judgment by a Court, the proper remedy for such party is to file an appeal
against that judgment. A remedy by way of an application for review, is
entirely misconceived and if a Court entertained the application for review
then it has totally exceeded its jurisdiction in allowing the review merely
because it takes a different view in construction of the document.
In Delhi Administration Vs. Gurdeep Singh Uban, AIR 2000 5C
3737, the Hon’ble Apex Court deprecated the practice of filing review
application observing that review, by no means, is an appeal in disguise
and it cannot be entertained even if application has been filed for
clarification, modification or review of the judgment and order finally
passed for the reason that a party cannot be permitted to circumvent or
bye-pass the procedure prescribed for hearing a review application. TheCPC Reference to Amendment Acts—1999 & 2002 i
Court also rejected the argument that review application should be
entertained to do justice in the case, observing as under.-
“The words ‘justice’ and ‘injustice’, in our
view, are sometimes loosely used and have
different meanings to different persons,
particularly to those arrayed on opposite
Sides..... Justice Cardozo said, The Web is
tangled and obscure, shot through with a
multitude of shades and colours, the skeins
irregular and broken. Many hues that
Seems to be simple, are found, when
analysed, to be complex and uncertain
blend, Justice itself, which we are wont to
appeal to as a test as well as an ideal, may
mean different things to different minds and
at different times, Atiempts to objectify
its standards or even to describe them, have
hever wholly succeeded.”
. It is settled legal proposition that for the fault of the counsel,
client should not suffer, But, in a case where a lawyer does not appear or
pleads any instruction, the Court should give a notice to the party either
to appear in person or to make an alternative arrangement. (Vide Rafiq
& Anr. Vs. Munshilal & Anr., AIR 1981 SC 1400 + Goswami Krishna
Murarilal Sharma Vs, Dhan Prakash & Ors, (1981) 4 SCC 574; Smt.
Lachi Tewari & Ors, AIR 1984 SC 41; Tahil Ram Issardas Sadaranganj
& Ors Vs. Ramchand Issardas Sadaranganj & Anr., 1992 AIR SCW
3445; Bani Singh & Ors Vs. State of U.P., AIR 1996 SC
2439; Sushila Narhari Vs. Nandkumar & Ors., (1996) 5 SCC 529; and
G. Raj Mallaiah & Anr. Vs. State of Andhra Pradesh, AIR 1998 $C
2315).
. The Court has no competence to issue a direction contrary to
law, (Vide Union of India & another vs. Kirloskar Pneumatic Co. Ltd.,
(1996) 4 SCC 453; State of U.P. & ors, V. Harish Chandra & ors.
(1996) 9 SCC 309; and Vice Chancellor, University of Allahabad & ors,
V. Dr. Anand Prakash Mishra & ors., (1997) 10 SCC 264).
|14 crc Reference to Amendment Acts—1999 & 2002
In State of Punjab & ors. V. Renuka Singla & ors.. (1994) 1 SCC 175,
dealing with a similar situation, the Hon'ble Apex Court observed as
under:-
“We fail to appreciate as to how the High
Court of this Court can be generous or liberal
in issuing such directions which in substance
amount to directing the authorities concerned
to violate their own statutory rules and
regulations.”
Similarly, in Karnataka State Road Transport Corporation v. Asbrafulla
Khan & ors., JT 2002 (2) SC 113, the Hon"ble Apex Court has held as
under:-
“The High Court under Anicle 226 of the
Constitution is required to enforce rule of law
and not pass order or direction which is
contrary to what has been injected by law."
Therefore, Courts are not competent to pass an order running counter to
the statutory provisions. ‘The Courts are meant to enforce the law and not to
direct any person not to act in accordance with law.
In the end, I take opportunity to thank the Institute of Judicial Training.
and Research, Lucknow for giving me an opportunity to meet and having
interaction with the newly recruited judicial officers of the States of U.P.
and Himachal Pradesh.
Dear friends, 1 wish you all a very suocessful carcer as a judicial officer,
Thank you,
(Dr. B.S. Chauhan)