Search By Topic: Civil Procedural Law

355. (P&H HC) 17-11-2022

A. Employees’ Compensation Act, 1923 (8 of 1923), Section 3(5), 10, 19 – Code of Civil Procedure, 1908 (V of 1908), Section 9, 100 -- Death/ injury to employee -- Compensation to employee -- Jurisdiction of civil Court – Substantial question of law -- Whether provisions of Section 3(5) and 19 the Employee’s Compensation Act, 1923, bar jurisdiction of civil Courts to entertain a suit for damages/compensation on account of death or injury suffered by an employee during the course of employment – Held, civil Court has jurisdiction to entertain a suit for damages/compensation with respect to an injury or death of an employee, if no claim for compensation before a Commissioner under the Act of 1923 has been instituted in that regard.

(Para 12-14)

B. Employees’ Compensation Act, 1923 (8 of 1923), Section 3(5), 10, 19 -- Code of Civil Procedure, 1908 (V of 1908), Section 9, 100 -- Death of employee -- Compensation to employee -- Suit for recovery of compensation -- Assessment of damages – Courts below assessed the damages on the basis of principles laid down under the Motor Vehicles Act, 1988 -- Keeping in view the age, income and number of dependents of the deceased and by applying adequate multiplier of ‘14’, an amount of Rs.20,15,600/- was awarded as compensation, to be paid by the Insurance company along with interest at the rate of 6% per annum from the date of filing the suit till its realisation – No exception can be taken to the assessment of compensation on the basis of principles laid down under the Motor Vehicles Act, 1988, as done by the Courts below. Paramjit Kaur’s case 2008 (4) RCR (Civil) 772 (P&H DB) relied -- No ground to interfere with the concurrent findings of the Courts below -- Appeal dismissed.

(Para 8, 14-17)

365. (SC) 09-11-2022

A. Specific Relief Act, 1963 (47 of 1963), Section 16 -- Suit for specific performance – Readiness and willingness -- High Court non-suited the appellant-original plaintiff on the ground that as the post-dated cheque of Rs. 35 lakhs was returned which was towards part sale consideration and tendering the worthless post-dated cheque cannot be said to be tendering the payment and therefore, there was no concluded contract between the parties -- By observing so, the High Court has refused to go into the aspect of the readiness and willingness on the part of the plaintiff – Held, at the time when the post-dated cheque of Rs. 35 lakhs was tendered the same cannot be said to be worthless cheque -- Post-dated cheque of Rs. 35 lakhs returned by the bank was with an endorsement i.e., “payment stopped by attachment order” as there was a raid conducted by the IT Department and the bank account was attached and therefore, the post-dated cheque was returned -- Therefore, the observation made by the High Court cannot be accepted.

(Para 4)

B. Specific Relief Act, 1963 (47 of 1963), Section 16 -- Suit for specific performance – Readiness and willingness – Framing of issue -- There must be a specific issue framed on readiness and willingness on the part of the plaintiff in a suit for specific performance and before giving any specific finding, the parties must be put to notice -- The object and purpose of framing the issue is so that the parties to the suit can lead the specific evidence on the same -- On the aforesaid ground the judgment and order passed by the learned Trial Court dismissing the suit and refusing to pass the decree for specific performance of the agreement to sell confirmed by the High Court deserves to be quashed and set aside and the matter is to be remanded to the learned Trial Court to frame the specific issue with respect to the readiness and willingness on the part of the plaintiff.

(Para 4.1)

370. (P&H HC) 04-11-2022

A. Indian Succession Act, 1925 (39 of 1925), Section 63 -- Indian Evidence Act, 1872 (1 of 1872), Section 68 -- Proof of Will – Suspicious circumstances – Burden to prove -- Mere proving of a Will does not establish the same to be valid in law, in case the same is surrounded by suspicious circumstances -- The beneficiary is not only required to discharge his burden to prove the Will; but is also to satisfy the conscious of the Court that there are no suspicious circumstances or if there are any, to explain them is also on the propounder of the Will -- It is only when such responsibility is discharged by the beneficiary, the Court can accept the Will to be genuine.

(Para 7)

B. Indian Succession Act, 1925 (39 of 1925), Section 63 -- Indian Evidence Act, 1872 (1 of 1872), Section 68 -- Will – Suspicious circumstances -- It is settled proposition of law that mere exclusion or dis-heritance of a natural heir while executing a Will is not to be taken as a suspicious circumstance as the very purpose of execution of a Will is to divert from the line of natural succession -- However, it has also been settled and expounded upon by the Hon’ble Supreme Court in catena of judgments that any unnatural, improbable or unfair disposition made in the Will has to be considered as a suspicious circumstance.

(Para 9)

C. Indian Succession Act, 1925 (39 of 1925), Section 63 -- Indian Evidence Act, 1872 (1 of 1872), Section 68 -- Will – Suspicious circumstances -- Respondent happened to be the legally wedded wife of deceased, neither the testator has recorded the factum of his marriage with the respondent in the Will; nor even her name has been mentioned therein -- More than that, no provision has even been made for her maintenance particularly under the circumstances wherein it has been established/ proved on record that the relationship between the husband and wife remained amicable throughout – From cumulative effect of the aforesaid facts and circumstances, one can easily see through that the testator’s mind was not free at the time of making disposition of Will.

(Para 9-14)

372. (P&H HC) 01-11-2022

A. Negotiable Instruments Act, 1881 (26 of 1881), Section 138 -- Code of Civil Procedure, 1908 (V of 1908), Section 60(1)(i), Order 21 -- Award of Lok Adalat in complaint u/s 138 NI Act – Execution of award/ decree -- Attachment of salary -- Salary of the JD-respondent cannot be attached for a period of more than 24 months where such attachment is made in execution of one and the same decree -- Argument of DH-petitioner that the salary should be continued to be attached cannot be accepted in view of the clear provisions of Section 60(1)(i) of CPC.

(Para 7)

B. Negotiable Instruments Act, 1881 (26 of 1881), Section 138 -- Code of Civil Procedure, 1908 (V of 1908), Section 55 Order 21 Rule 30  -- Award of Lok Adalat in complaint u/s 138 NI Act – Execution of award/ decree – Arrest of Judgment Debtor/ JD -- Argument that the JD-respondent ought to be arrested for non-compliance of the order passed by the Permanent Lok Adalat cannot be accepted in view of the fact that arrest would be a measure of last resort and in the case, some property of the JD-respondent already stands attached and the Executing Court has directed the JD-respondent to file an affidavit stating all the particulars regarding his moveable and immoveable properties.

(Para 7)

C. Negotiable Instruments Act, 1881 (26 of 1881), Section 138 -- Code of Civil Procedure, 1908 (V of 1908), Order 21 – Cheque bounce case -- Award of Lok Adalat in complaint u/s 138 NI Act – Execution of award -- Award passed by the Lok Adalat would be deemed to be a decree of the Civil Court executable by the Civil Court -- There can be no quarrel with the said proposition of law.

(Para 10)

376. (P&H HC) 31-10-2022

A. East Punjab Urban Rent Restriction Act, 1949 (III of 1949), Section 13 – Indian Evidence Act, 1872 (1 of 1872), Section 116 -- Arrear of rent – Provisional assessment of rent – Disputing Landlord’s ownership – Provisional rent was tendered without reserving any right to dispute ownership of the landlord – At the time of assessment of provisional rent also, no dispute about the ownership was raised by the tenants – Besides, after attornment they/tenants are estopped from disputing ownership of the landlord.

(Para 7)

B. East Punjab Urban Rent Restriction Act, 1949 (III of 1949), Section 13 -- Code of Civil Procedure, 1908 (V of 1908), Order 6 Rule 17, Order 14 Rule 5, Order 41 Rule 25 -- Additional issue – Disputing Landlord’ ownership -- Rent Controller declined the tenants’ application to raise additional issues disputing ownership of the landlord  -- Subsequently, by two orders, the tenants were again not permitted to amend their written statement to dispute the ownership -- Said orders have attained finality – No occasion for the tenants to agitate the issue again before High Court – It is an abuse of the process of law – Orders were passed by the Rent Controller based upon the reasoning given in the orders, declined to frame the Issues -- It cannot by any stretch of imagination, therefore, be said that the Controller has “omitted to frame or try any issue, or to determine any question of fact” --  Therefore, provisions of Order XLI Rule 25 CPC are not applicable – Held, tenants could not invoke by filing the application, beseeching the Appellate Authority to frame additional issues disputing ownership of the landlord and refer the same to the Rent Controller for recording evidence thereupon -- Nor could the tenant file the other application Order XIV Rule 5 CPC for framing of issues -- Revision dismissed with costs of Rs.50,000/-.

(Para 9-10)

380. (P&H HC) 28-10-2022

A. Code of Civil Procedure, 1908 (V of 1908), Order 23, Rule 1 -- Withdrawal of suit -- Fresh suit for partition – Necessity of permission to file fresh suit -- Even in the absence of permission to file a fresh suit, a co-owner has a right to file a suit for partition even if his first suit has been dismissed on the ground that he did not implead all the co-owners as parties to the suit – It is not a decision on merits of the case -- In such circumstances, the permission granted is superfluous/ unnecessary.

(Para 6)

B. Code of Civil Procedure, 1908 (V of 1908), Order 23, Rule 1 -- Withdrawal of suit with liberty to file fresh – Power of Appellate Court -- Order XXIII Rule 1 CPC enables the Court to permit the party to withdraw his suit with liberty to file a fresh one on the same cause of action -- Sub Rule 3 of Rule 1 of Order XXIII CPC envisages two different reasons for permitting the plaintiff to file a fresh suit.

-- Under clause (a), the Court can grant permission if it is satisfied that a suit must fail by reason or some formal defects.

-- Under clause (b), permission can be granted if the Court comes to a conclusion that there are sufficient grounds for allowing the plaintiff to institute a fresh suit based upon the subject matter of the original suit or part of the claim.

Such power can be exercised any time after the institution of the suit -- There is no provision that such application is only maintainable before the trial Court -- First Appellate Court is a Court of fact and is empowered to decide such an application, if filed.

(Para 7)

383. (P&H HC) 14-10-2022

A. Code of Civil Procedure, 1908 (V of 1908), Section 9 -- Multiple cause of action – Civil suit – Limitation -- Suit can be filed within three years from the accrual of the initial cause of action, however, any successive violation of rights after institution of the suit would not give fresh cause of action to file a suit -- If the suit is based on multiple causes of action, the period of limitation would commence from the date when the right to sue first accrued.

(Para 13)

B. East Punjab Holdings (Consolidation and Prevention of Fragmentation) Act, 1948 (50 of 1948), Section 44 -- Code of Civil Procedure, 1908 (V of 1908), Section 9 – Consolidation proceedings -- Jurisdiction of civil court -- Consolidation Authorities allotted 15 kanal 5 marla land of lesser value to the defendant as per his entitlement in lieu of 7 kanal 12 marla of standard land during consolidation -- Plaintiff till date has not challenged the order of Consolidation Authorities -- In case, the plaintiff was aggrieved by any such order, he should have challenged it before the authorities empowered under the Consolidation Act, which admittedly was not done -- Jurisdiction of the Civil Court barred -- Civil Court cannot derive jurisdiction beyond the statute by merely giving it a colour for a suit of declaration.

(Para 15)

C. Haryana Land Revenue Act, 1887 (XVII of 1887), Section 34, 44 -- Code of Civil Procedure, 1908 (V of 1908), Section 9 -- Mutation – Jurisdiction of civil Court -- Mutation is only entered to update the revenue records and it not being a document of title does not confer any right on any person whatsoever -- Correctness of mutation cannot be challenged by plaintiff in a civil suit.

(Para 16)

D. Code of Civil Procedure, 1908 (V of 1908), Section 9 -- Specific Relief Act, 1963 (47 of 1963), Section 34 -- Maintainability of suit for simplicitor declaration -- If the plaintiff is not in possession of the suit land, he cannot file a simpliciter suit for declaration and injunction without claiming possession thereof.

(Para 20)

388. (SC) 28-09-2022

A. Code of Civil Procedure, 1908 (V of 1908), Order 1 Rule 9 -- Necessary party -- Necessary party is a person in whose absence no effective decree could be passed by the Court -- if a “necessary party” is not impleaded, the suit itself is liable to be dismissed.

(Para 9)

B. Constitution of India, Article 226 – Cancellation of Fair Price Dealer – Subsequent allottee – Writ petition -- Necessary party -- Even if a subsequent allottee does not have an independent right, he/she still has a right to be heard and to make submissions defending the order of cancellation -- Appellant had been selected by the Tehsil Level Selection Committee in its meeting and thereafter, he was appointed as Fair Price Dealer vide order of the Competent Authority, on a regular basis – Held, appellant was a necessary party to the proceedings before the High Court.

(Para 13-15)

C. Constitution of India, Article 226 – Cancellation of Fair Price Dealer – Concealment of facts – High Court allowed the writ -- Respondent No. 9/ writ petitioner was very well aware that during the pendency of the proceedings, the appellant was appointed as a Fair Price Dealer -- Respondent No.9 has not only suppressed the fact about the subsequent allotment of the fair price shop to the appellant but has also tried to mislead the High Court that the fair price shop of respondent No.9 was attached to another fair price shop holder -- Impugned order of the High Court quashed and set aside – Order cancelling the Fair Price Shop licence of respondent No. 9 and order dismissing the appeal of respondent No.9 affirmed.

(Para 16-22)

392. (SC) 22-09-2022

A. Code of Civil Procedure, 1908 (V of 1908), Section 100 – Regular Second Appeal -- Substantial question of law -- Proper test for determining whether a question of law raised in the case is substantial would be, whether it is of general public importance or whether it directly 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 -- 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 the question raised is palpably absurd, the question would not be a substantial question of law.

(Para 31)

B. Code of Civil Procedure, 1908 (V of 1908), Section 100 – Regular Second Appeal -- Substantial question of law -- Question of law -- To be ‘substantial’, a question of law must be debatable, not previously settled by law of the land or a binding precedent, and must have a material bearing on the decision of the case, if answered either way, insofar as the rights of the parties before it are concerned -- To be a question of law "involving in the case" there must be first, a foundation for it laid in the pleadings and the question should emerge from the sustainable findings of fact arrived at by court of facts and it must be necessary to decide that question of law for a just and proper decision of the case -- An entirely new point raised for the first time before the  High Court is not a question involved in the case unless it goes to the root of the matter -- It depend on the facts and circumstance of each case whether a question of law is a substantial one and involved in the case or not, the paramount overall consideration being the need for striking a judicious balance between the indispensable obligation to do justice at all stages and impelling necessity of avoiding prolongation in the life of any lis.

(Para 32)

C. Code of Civil Procedure, 1908 (V of 1908), Section 100 – Regular Second Appeal -- Substantial question of law -- Question of law -- Principles relating to Section 100 of the CPC may be summarised:

(i) An inference of fact from the recitals or contents of a document is a question of fact. But the legal effect of the terms of a document is a question of law. Construction of a document involving the application of any principle of law, is also a question of law. Therefore, when there is misconstruction of a document or wrong application of a principle of law in construing a document, it gives rise to a question of law.

(ii) The High Court should be satisfied that the case involves a substantial question of law, and not a mere question of law. A question of law having a material bearing on the decision of the case (that is, a question, answer to which affects the rights of parties to the suit) will be a substantial question of law, if it is not covered by any specific provisions of law or settled legal principle emerging from binding precedents and involves a debatable legal issue. A substantial question of law will also arise in a contrary situation, where the legal position is clear, either on account of express provisions of law or binding precedents, but the court below has decided the matter, either ignoring or acting contrary to such legal principle. In the second type of cases, the substantial question of law arises not because the law is still debatable, but because the decision rendered on a material question, violates the settled position of law.

(iii) The general rule is that the High Court will not interfere with findings of facts arrived at by the courts below. But it is not an absolute rule. Some of the well-recognised exceptions are where (i) the courts below have ignored material evidence or acted on no evidence; (ii) the courts have drawn wrong inferences from proved facts by applying the law erroneously; or (iii) the courts have wrongly cast the burden of proof. When we refer to "decision based on no evidence", it not only refers to cases where there is a total dearth of evidence, but also refers to any case, where the evidence, taken as a whole, is not reasonably capable of supporting the finding.

(Para 33)

D. Code of Civil Procedure, 1908 (V of 1908), Section 96, 100 – First Appeal -- Regular Second Appeal -- Respondents in their Second Appeal before the High Court did not advert to any material evidence that had been ignored by the First Appellate Court -- Respondents also could not show that any wrong inference had been drawn by the First Appellate Court from proved facts by applying the law erroneously – Held, it cannot be said that the First Appellate Court acted on no evidence.

(Para 34)

E. Code of Civil Procedure, 1908 (V of 1908), Section 100 – Regular Second Appeal -- Substantial question of law -- Right of appeal is not automatic -- Right of appeal is conferred by statute -- When statute confers a limited right of appeal restricted only to cases which involve substantial questions of law, it is not open to Supreme Court to sit in appeal over the factual findings arrived at by the First Appellate Court.

(Para 36)

393. (SC) 20-09-2022

A. Code of Civil Procedure, 1908 (V of 1908), Order 17, Rule 1, 2 -- Suit for declaration, possession and permanent injunction by State – Examination of State witness -- Forest Range Officer PW-1 who had given his examination-in-chief was supposed to appear for cross-examination, he did not appear on the date -- There could have been many reasons for his non-appearance both genuine and ingenuine -- In a state machinery, it takes reasonable time to nominate and arrange for another officer to come and give evidence in court -- Trial Court ought to have given adequate opportunity to the State -- Time for producing a witness to prove the plaint averments as also other supporting material ought to have been extended in the interest of justice -- Matter remanded to the Trial Court for afresh decision after affording due opportunity of leading evidence.

(Para 17, 20)

B. Code of Civil Procedure, 1908 (V of 1908), Order 41 Rule 27 -- Additional evidence in appeal -- State wanted to place on record documents relating to the survey conducted on the strength of the Order of the High Court dated 13.06.2012 passed in criminal petitions u/s 482 CrPC quashing the FIRs -- Exercise having been undertaken after the judgment of the Trial Court dated 08.03.2012 the survey report and the other material related to it ought to have been allowed by the High Court to be admitted as evidence as it was relevant for the proper adjudication for the issues arising in the suit, of course with the rider that the respondent would have a right of rebuttal -- High Court in erred in rejecting the IA -- Impugned judgment of the High Court and Trial Court set aside – Matter remanded to the Trial Court for afresh decision after affording due opportunity of leading evidence.

(Para 18, 19)

394. (P&H HC) 20-09-2022

Code of Civil Procedure, 1908 (V of 1908), Order 7 Rule 11 -- Haryana Co-operative Societies Act, 1984 (22 of 1984), Section 102, 128 – Jurisdiction of civil Court – Rejection of plaint -- Question of law is whether in view of Section 102 read with Section 128 of the Haryana Cooperative Societies  Act, 1984, the jurisdiction of the Civil Court is barred? – Prayer is to grant a decree of mandatory injunction directing defendant No.1 to hand over the complete documents with a consequential relief of declaration that conveyance deed in favour of defendants No.1 to 3 is illegal and liable to be set aside.

-- Though the trial Court allowed the application, however, the lower appellate Court recorded a finding that since in the civil suit, there is pleading of fraud with regard to execution of the conveyance deed, on the basis of certain documents, which were prepared by the defendants in collusion with each other, therefore, the Civil Court will have jurisdiction and the plaint is not liable to be rejected under Order 7 Rule 11 CPC.

-- The lower appellate Court also recorded a finding that Section 102 read with Sections 128 & 130 of the Act deals with reference of the dispute to an Arbitrator and regarding bar of jurisdiction of the Courts, however, nothing is stated under Section 128 of the Act that jurisdiction of the Civil Court will be barred, if a suit is filed on the basis of fraud.

-- At the stage of deciding the application under Order 7 Rule 11 CPC, the Court is primarily to see the pleadings in the plaint or the documents attached with the plaint.

In the plaint, it is specifically pleaded that conveyance deed has been executed in favour of defendant No.2 by playing fraud -- Therefore, question of law decided in favour of respondent No.1-plaintiff -- No illegality or infirmity with the impugned judgment and decree passed by the lower appellate Court.

(Para 2-8)

397. (SC) 14-09-2022

A. Arbitration and Conciliation Act, 1996 (26 of 1996), Section 9, 36 – Code of Civil Procedure, 1908 (V of 1908), Order 38 Rule 5 -- Securing the amount -- Attachment before judgment – Absence of averment -- Section 9 of the Arbitration Act confers wide power on the Court to pass orders securing the amount in dispute in arbitration, whether before the commencement of the arbitral proceedings, during the arbitral proceedings or at any time after making of the arbitral award, but before its enforcement in accordance with Section 36 of the Arbitration Act – Court exercising power u/s 9 of the Arbitration Act should not withhold relief on the mere technicality of absence of averments, incorporating the grounds for attachment before judgment under Order 38 Rule 5 of the CPC.

(Para 49)

B. Arbitration and Conciliation Act, 1996 (26 of 1996), Section 9 – Code of Civil Procedure, 1908 (V of 1908), Order 38 Rule 5 -- Securing the amount – Interim relief -- Attachment before judgment – Proof of actual attempts to deal with, remove or dispose of the property with a view to defeat or delay the realisation of an impending Arbitral Award is not imperative for grant of relief u/s 9 of the Arbitration Act -- A strong possibility of diminution of assets would suffice.

(Para 50)

C. Arbitration and Conciliation Act, 1996 (26 of 1996), Section 9, 37 – Code of Civil Procedure, 1908 (V of 1908), Order 38 Rule 5 -- Securing the amount by interim relief -- Essar House Private directed to deposit an amount of Rs.35.5 crores with the Prothonotary and Senior Master of the High Court or, in the alternative, to furnish bank guarantee of any nationalised bank for the entire amount along with interest thereon – Prima facie, the refundable security deposit is not being released to Arcellor on the purported ground of a convoluted series of internal arrangements between group companies for diversion of the security deposits towards liquidation of alleged dues of Essar Steel to third parties -- No infirmity in the well-reasoned judgment and order of the Division Bench -- Appeals dismissed.

(Para 2, 51)