Search By Topic: Civil Procedural Law

552. (SC) 17-02-2021

A. Code of Civil Procedure, 1908 (V of 1908), Section 100, 103 -- Second appeal – Substantial question of law – Question of fact – Power of High Court – Suit dismissed -- First Appellate Court reversed the finding and decreed the suit -- High Court allowed the second appeal dismissing the suit -- High Court, vide the impugned judgment, noted that the First Appellate Court had considered irrelevant material and had erred in appreciating the legal issue involved -- High Court did not note that the First Appellate Court, due to its erroneous approach, had failed to consider the evidence in the correct light – Held, in such a circumstance, it would have been appropriate for the High Court to remand the matter to the First Appellate Court to determine the factual issues in light of the legal point as decided by it, or should have itself taken a decision on the facts u/s 103 of the Civil Procedure Code - -Judgment of the High Court set aside, matter remanded back to High Court.

(Par 6-9, 12-15)

B. Code of Civil Procedure, 1908 (V of 1908), Section 100, 103 -- Second appeal – Substantial question of law – Question of fact – Power of High Court -- Settled position of law that a second appeal, u/s 100 of the CPC, lies only on a substantial question of law -- However, this does not mean that the High Court cannot, in any circumstance, decide findings of fact or interfere with those arrived at by the Courts below in a second appeal -- In fact, Section 103 of the Code of Civil Procedure explicitly provides for circumstances under which the High Court may do so -- High Court to decide an issue of fact, provided there is sufficient evidence on record before it, in two circumstances.

-- First, when an issue necessary for the disposal of the appeal has not been determined by the lower Appellate Court or by both the Courts below.

-- And second, when an issue of fact has been wrongly determined by the Court(s) below by virtue of the decision on the question of law under Section 100 of the Code of Civil Procedure.

(Para 10, 11)

554. (SC) 12-02-2021

A. Code of Civil Procedure, 1908 (V of 1908), Section 96(3), Order 43 Rule 1A – Consent decree – Appeal against – Maintainability of -- As per Section 96(3), the appeal against the decree passed with the consent of the parties shall be barred -- Order XLIII Rule 1A provides that in an appeal against the decree passed in a suit for recording a compromise or refusing to record a compromise, it shall be open to the appellant to contest the decree on the ground that the compromise should or should not have been recorded -- High Court rightly come to the conclusion that the appeal before the High Court against the judgment and decree was maintainable -- No error has been committed by the High Court in holding so.

(Para 12)

B. Code of Civil Procedure, 1908 (V of 1908), Order 21 Rule 90 – Auction sale in execution of consent decree – Setting aside of -- JD did not deposit the amount of Rs.4,50,000/- i.e. sale consideration together with interest in terms of Order XXI Rule 90 CPC -- Not the case of the JD that there was any material irregularity or fraud in publishing or conducting the sale -- Objection is that the decree was obtained by fraud -- Application submitted by the original judgment debtors under Order XXI Rule 90 was required to be dismissed and was rightly dismissed by the learned Executing Court.

(Para 13)

C. Code of Civil Procedure, 1908 (V of 1908), Order 21 Rule 89, 90, 91, 92 -- Auction sale in execution of consent decree – Overruling of objection – Non-availing of remedy in time – Effect of -- As per Order XXI Rule 92, where an application is made under Order XXI Rule 89, Order XXI Rule 90 and Order XXI Rule 91 and the same is disallowed, the Court shall make an order confirming the sale and thereafter the sale shall become absolute -- As per Order XXI Rule 94, where a sale of immovable property has become absolute, the Court shall grant a certificate specifying the property sold and the name of the person who at the time of sale is declared to be the purchaser -- Such certificate shall bear the date on which the sale became absolute -- High Court ought not to have thereafter set aside the order dated 03.03.1998 overruling the objections raised by the judgment debtors, which order was not challenged by the judgment debtors before the High Court till the year 2000 – Impugned judgment cannot be sustained and the same deserves to be quashed and set aside.

(Para 14)

D. Code of Civil Procedure, 1908 (V of 1908), Order 21 Rule 90 – Auction sale in execution of consent decree – Setting aside of -- High Court hold auction purchaser cannot be said to be the bona fide purchaser as he was related to the judgment creditor and that he was a partner of the firm in whose favour the mortgage was executed – However, application for setting aside was not filed on above ground it was submitted on the ground that no proper publication was made to get the adequate market value -- Therefore, the High Court has gone beyond the case of the judgment debtors – Even on merit High Court is not correct in observing that the auction purchaser was not a bona fide purchaser -- Partnership firm was already dissolved much before and thereafter the plaintiff inherited the assets, claims and liabilities of the firm.

(Para 15)

562. (P&H HC) 28-01-2021

A. East Punjab Holdings (Consolidation and Prevention of Fragmentation) Act, 1948 (50 of 1948) -- Punjab Land Revenue Act, 1887 (XVII of 1887), Section 34 -- Code of Civil Procedure, 1908 (V of 1908), Section 9 -- Question of title – Jurisdiction of Revenue authorities -- Neither the authorities, constituted under the East Punjab Holdings (Consolidation and Prevention of Fragmentation) Act, 1948, nor the authorities under the Punjab Land Revenue Act (while deciding the mutations), have the jurisdiction to decide on the question of title.

(Para 6)

B. Punjab Security of Land Tenures Act, 1953 (10 of 1953), Section 18, 25 – Haryana Ceiling on Land Holdings Act, 1972 (26 of 1972), Section 12(3) -- Specific Relief Act, 1963 (47 of 1963), Section 31, 34 – Surplus land – Suit for declaration – Jurisdiction of civil court -- Cancellation of instrument can be obtained by a person against whom such a written instrument is void or voidable -- Whereas Section 34 provides for declaration of status or right -- It is not in dispute that the plaintiffs were not the parties to the litigation when the orders u/s 18 of the Punjab Security of Land Tenures Act, 1953 were passed or when the land was declared surplus -- When the proceedings or orders of the quasi-judicial Tribunal are challenged before the Civil Court, one is not required to challenge the order in the strict sense as he is not bound by the same -- Hence, such person is entitled to file a suit for declaration that such orders do not affect his rights.

(Para 8)

C. Punjab Land Revenue Act, 1887 (XVII of 1887), Section 34 -- Code of Civil Procedure, 1908 (V of 1908), Section 9 -- Question of title -- Mutation – Jurisdiction of Revenue Authorities -- Finding of civil court – Effect of -- Revenue authorities, while deciding mutations, do not have jurisdiction to decide the question of right, title or interest of the parties -- Revenue authorities are bound to implement the order finally passed by the Civil Court -- Writ petition disposed of with the observations that whenever the Civil Court finally decides the suit, the revenue authorities would be bound to give effect thereto in the revenue record.

(Para 12)

578. (SC) 09-12-2020

A. Representation of the People Act, 1951 (43 of 1951), 81, 82, 83 – Code of Civil Procedure, 1908 (V of 1908), Order 6 Rule 15 -- A defective verification is a curable defect -- An election petition cannot be thrown out in limine, on the ground that the verification is defective -- Defects in the verification and prayer made by the petitioner were curable and an opportunity ought to have been given to the petitioner to cure the defects.

(Para 43-48)

B. Representation of the People Act, 1951 (43 of 1951), Section 8(3), 81(1) – Disqualification for contesting election -- Effect of punishment by criminal court -- Punishments imposed upon the petitioner for a period not less than two years in two independent criminal cases and the suspension of execution of sentence alone granted by the appellate/revisional Courts – Therefore, case is covered by Section 8(3) of the Act -- Disqualification which commences from the date of conviction, continues till the expiry of a period of six years from the date of his release – Held, mere suspension of the execution of the sentence is not sufficient to take the rigour out of Section 8(3) -- Disqualification u/s 8(3) will continue so long as there is no stay of conviction.

(Para 49-61)

C. Representation of the People Act, 1951 (43 of 1951), Section 8(3), 81(1) -- Election to Lok Sabha -- Election petition by disqualified candidate – Maintainability of -- Petitioner was disqualified from contesting the elections in terms of Section 8(3) of the Act -- In such circumstances, she could not have maintained an election petition as “a candidate at such election” in terms of Section 81(1).

(Para 62)

579. (P&H HC) 27-11-2020

A. Maintenance and Welfare of Parents and Senior Citizens Act, 2007 (56 of 2007), Section 9 -- Shifting of Tribunal – Non-appearance of respondent – Ex-parte proceedings -- Petitioner had appeared before Sub-Divisional Officer, Ambala Cantt. and, thereafter had not bothered to put in appearance when the proceedings were transferred to the Tribunal at Ambala City -- Neither it has been mentioned as to how he was not aware of the matter being transferred to the Tribunal at Ambala City or there was any hitch or disability the petitioner suffered and that he was not aware of the proceedings pending at Ambala Cantt – No sufficient case made out for not appearing before the Tribunal to defend the proceedings – Order affirmed.

(Para 8-10, 14)

B. Maintenance and Welfare of Parents and Senior Citizens Act, 2007 (56 of 2007), Section 2(g), 9 – Maintenance against nephew – Maintainability of -- Once the petitioner is in possession of the property and liable to inherit the property after the death of the senior citizen, the section provides that maintenance can be claimed by a childless senior citizen as per Clause (g) of Section 2 -- Argument that the application was not maintainable in the absence of any relationship, is not made out.

(Para 3, 11, 12)

C. Maintenance and Welfare of Parents and Senior Citizens Act, 2007 (56 of 2007), section 2(g), 9 -- Maintenance against nephew – Petitioner/Nephew  is earning from the business of the shop in which the father of the respondent No.3/Senior citizen was working -- By keeping the Senior citizen out of the said shop, he is also debarring the said respondent from earning and getting the fruits from the said shop, wherein his father was a tenant – Petitioner would come under the purview of Section 2 (g) of the 2007 Act and liability to maintain the Senior citizen would fall upon him.

(Para 13)

588. (SC) 03-11-2020

A. Code of Civil Procedure, 1908 (V of 1908), Section 114, 151, Order 47 Rule 1 – Review – Scope of -- An order can be reviewed by a Court only on the prescribed grounds mentioned in Order 47 Rule 1 CPC – An application for review is more restricted than that of an appeal and the Court of review has limited jurisdiction as to the definite limit mentioned in Order 47 Rule 1 CPC itself -- Powers of review cannot be exercised as an inherent power nor can an appellate power can be exercised in the guise of power of review.

(Para 9)

B. Code of Civil Procedure, 1908 (V of 1908), Section 114, 151, Order 47 Rule 1 – Review – Scope of -- Observations in para 20 of judgment with respect to possession of the plaintiffs on appreciation of evidence on record -- It cannot be said that there was an error apparent on the face of proceedings which were required to be reviewed in exercise of powers under Order 47 Rule 1 CPC -- High Court has clearly erred in deleting para 20 in exercise of powers under Order 47 Rule 1 CPC -- At the most, observations made in para 20 can be said to be erroneous decision cannot be a ground to exercise of powers under Order 47 Rule 1 CPC -- Impugned order is unsustainable and deserves to be quashed and set aside.

(Para 10, 11, 15)

C. Code of Civil Procedure, 1908 (V of 1908), Section 114, 151, Order 47 Rule 1 – Review – Scope of -- Non-framing of the issue with respect to possession – There were necessary pleadings with respect to possession in the plaint as well as in the written statement -- Even the parties also led the evidence on the possession -- Original plaintiff/appellant led the evidence with supporting documents to show his possession and to that, there was no cross-examination by the defendants/respondents – Defendants/respondents did not lead any evidence to show their possession -- If the parties are aware of the rival cases, the failure to formally formulate the issue fades into insignificance when an extensive evidence has been recorded without any demur – High Court deleted the observations made in para 20 with respect to possession in review -- impugned order is unsustainable and deserves to be quashed and set aside.

(Para 11.1-15)

590. (P&H HC) 21-10-2020

A. Specific Relief Act, 1963 (47 of 1963), Section 12 -- Agreement to sell with possession -- Specific recital with regard to delivery of possession in the agreement to sell signed by the parties proved -- Mere failure of plaintiff to depose about the delivery of possession in the examination-in-chief would not be sufficient for the Court to record a finding that the stand of the plaintiffs with respect to delivery of actual possession is erroneous.

(Para 9)

B. Specific Relief Act, 1963 (47 of 1963), Section 12 -- Agreement to sell with actual physical possession of specific portion out of joint land – Permissibility of -- A co-sharer in actual physical possession of a specific portion out of the big parcel of joint land is entitled to deliver possession thereof to anyone -- No doubt, sale of a specific portion or parcel of land out of joint property by a co-sharer shall be deemed to be sale of undivided share out of joint land -- However, there is no bar either in the delivery of possession of specific portion or sale thereof out of the joint land -- First Appellate Court committed material irregularity while observing that a co-sharer cannot deliver the possession of the specific portion in its possession to someone out of joint property.

(Para 10)

C. Specific Relief Act, 1963 (47 of 1963), Section 12 -- Limitation Act, 1963 (36 of 1963), Article 54 -- Delay and laches – Appellate Court finds that suit filed by the plaintiffs suffers from laches -- Defendant while filing the written statement did not allege that the suit suffered from laches -- Consequently no issue on this aspect was framed -- In the evidence no stand that the suit filed by the plaintiffs suffers from unexplained laches -- Thus, the observations made by the learned first Appellate Court are not only beyond pleadings but also beyond evidence.

(Para 11, 12)

D. Specific Relief Act, 1963 (47 of 1963), Section 12 -- Limitation Act, 1963 (36 of 1963), Article 54 -- Suit for specific performance – Limitation -- Delay and laches -- Period of limitation in a suit for specific performance do not begin to run from the date on which agreement to sell has been executed – Period of limitation would either begin to run from the date fixed for its performance or if no date or period is stipulated, then from the date the plaintiff has notice that the performance has been refused by the opposite side.

(Para 11, 13, 21)

E. Code of Civil Procedure, 1908 (V of 1908), Section 96 -- First Appeal – Setting aside of trial court judgment -- It is not appropriate for the learned first Appellate Court to set aside the judgment passed by the learned trial Court without recording definite finding or the reasons for reversing thereof after critical analysis of the reasons with reference to error in the application of law or misreading or non-reading or misconstruction of the evidence available on record.

(Para 21)

F. Specific Relief Act, 1963 (47 of 1963), Section 12 -- Limitation Act, 1963 (36 of 1963), Article 54 -- Agreement to sell – Entire sale consideration paid – Delay and laches – Ground of -- It is not appropriate for the Court to decline the relief of specific performance on the ground of laches particularly when the entire sale consideration has been paid and the suit was filed within limitation.

(Para 21)

598. (P&H HC) 09-10-2020

Code of Civil Procedure, 1908 (V of 1908), Order 9 Rule 3, 4, Order 7 Rule 10, 11, Order 39 Rule 1 & 2, Section 24 – Constitution of India, Article 227 – Dismiss in default – Restoration of -- Maintainability of suit – Continuation of stay -- Non-application of judicial mind – Explanation called form District Judge – Detailed reasons:

-- Application for withdrawal of the Civil suit allowed by the trial Court on 30.09.2019 as well as before the Appellate Court, which was allowed on 07.12.2019, therefore, on face of record, no cause of action survives in favour of plaintiff No.1 in the suit – By showing total non-application of judicial mind, the Appellate Court is continuing with the appeal as well as the interim injunction.

-- A perusal of the first order dated 09.08.2019 passed by the District Judge also reflect non-application of judicial mind as the operation of the order dated 06.08.2019 dismissing an application under Order 39 Rules 1 and 2 CPC filed by the plaintiffs, was stayed and simultaneously, further injunction was granted against the Bank from proceeding against the plaintiffs, in accordance with law -- It is well settled principle of law that if an injunction application filed by the plaintiffs is dismissed by the Civil Court, the Appellate Court unless by recording detailed reason of urgency may grant interim injunction for a short period or in ordinary course, after giving a short notice to the contesting defendants may pass an interim order. Both these principles of law have been ignored by the District Judge.

-- The Civil Court has passed the order dated 06.08.2019 in the presence of the contesting party i.e. the plaintiff No.1, defendant No.1 – Bank and the counsel representing interim resolution professional of plaintiff No.2, therefore, the Appellate Court who is adjourning the appeal to serve the remaining unserved defendants, who are not contesting before the Civil Court is nothing but a futile exercise, just to extend the stay in favour of the plaintiffs whereas the service of the remaining defendants could be dispensed with in terms of provisions of Order 41 Rule 3 Proviso added by amendment as applicable to Punjab, Haryana and Chandigarh.

-- The another reason which show the slackness and disrespect on the part of the Appellate Court is that defendant No.1 – Bank has brought all the previous orders passed by the Writ Court, the Hon'ble Supreme Court, the NCLT and the NCALT and on 07.12.2019, it was also brought to the notice of the Appellate Court that the Civil Court stands dismissed for non-prosecution, however, still the interim stay was extended and no effort was made to dispose of the main appeal.

-- Even surprisingly, despite the instructions passed by the High Court that the photocopy of the Lower Appellate Court should be summoned so that the proceedings before the Lower Court is not automatically stayed, the Appellate Court summoned the record of the trial Court vide order dated 07.12.2019 and despite the fact that the seat of the District Judge and of the trial Court is at the same place, till 01.02.2020, the record was not received and in the intervening period, the interim order was ordered to be extended by the Appellate Court.

-- Even further on 29.02.2020, after noticing that the suit is dismissed for non-prosecution and the petitioner – Bank is stressing that the appeal is not maintainable, the Appellate Court, while returning the record of the trial Court, directed that the application for restoration be decided in a time bound manner i.e. 1½ months, therefore, the intention of the plaintiffs is apparent on record to delay the proceedings either before the District Judge or before the trial Court by not arguing the application for restoration of civil suit.

-- Thus the District Judge has failed to perform even the administrative duty by not keeping a check on trial Court which has not decided the application for restoration of suit till date i.e. even after lapse of 08 months, in violation of his own order dated 29.02.2020.

-- The District Judge being the administrative head of the District, is required to keep a check on the subordinate judiciary and the manner in which the order in the civil suit are passed, show that an effort is made to delay the proceedings to enable the plaintiffs to gain time.

-- Even the trial Court is adjourning the case for effecting the service on non-contesting respondents and is not deciding the application for restoration of civil suit despite the fact that when suit was dismissed for non-prosecution, the presence of the counsel for defendants was marked and service on defendants can be effected through counsel, to avoid the delay.

-- The basic principles of law as set down in various judgments to decide the application for restoration of a suit/appeal or likewise setting-aside ex parte order are that if the application is filed within a reasonable time as in the instant case, it was filed within a period of 06 days; a bona fide ground is given, as in this case, the counsel representing the plaintiffs has filed his own affidavit; the general principle that no one should be condemn unheard is not violated and if required, the other party can be compensated by way of costs, thus, majority of such applications are allowed, however, this is not followed by the trial Court.

-- Based upon such principle, the trial Court could have decided the application immediately without wasting the time to serve the non-contesting respondents. Needless to say that 03 months time was taken by the Appellate Court, in summoning the record of the trial Court, which further delayed the disposal of the application under Order 9 Rule 4 CPC.

-- It is not understandable as to why the District Judge/Appellate Court is adjourning the appeal despite the fact that the suit stands dismissed for non-prosecution on 29.11.2019 and the plaintiffs on both counts are seeking adjournments and both the Courts, on face of record are showing undue favour to the plaintiffs.

-- Once the petitioner – Bank on 07.12.2019 has brought to the notice of the Appellate Court, about all the orders passed by High Court & the Hon'ble Supreme Court as well as the dismissal of the suit in default, there was no justification for the Appellate Court to continue with the stay order, which was obtained by concealing the aforesaid litigation and orders and therefore, continuing with the stay order by ignoring the orders of the High Court and the Hon'ble Supreme Court inter se parties, the District Judge has shown disrespect to orders and, on face of record has shown favour to the plaintiffs to delay the proceedings.

-- Even otherwise, the grant of ex parte stay and thereafter, continuation of the interim stay for a period of 01 year despite all odds is in violation of the well settled principle of law held by the Hon'ble Supreme Court that injunctions against financial institutions should not be granted casually. The default in payment of public money involved in the case is more than 1100 crores of rupees and therefore, the continuation of the interim order by the Appellate Court is not at all in public interest.

30 days’ time given to District Judge to submit explanation -- Civil Appeal ordered to be transferred from the Court of District Judge to the Court of Additional District Judge -- Transferee Court will decide the appeal within a period of 03 weeks, from the date of receipt of the case file -- Application under Order 9 Rule 4 CPC be decided within a period of 03 weeks from the date of receipt of the certified copy of this order – In case, the suit is restored, the trial Court will further pass an order within a period of 03 weeks thereafter, regarding maintainability of suit by assessing the averments “only in the plaint” (in terms of Order 7 Rules 10 and 11 CPC), if any cause of action survive in favour of plaintiff No.1, after the suit stands dismissed as withdrawn qua plaintiff No.2 -- In view of the settled principle of law, the trial Court will only look into the contents of the plaint and no other documents will be considered for the same.

(Para 31-39)

600. (P&H HC) 06-10-2020

Specific Relief Act, 1963 (47 of 1963), Section 41(j) – Code of Civil Procedure, 1908 (V of 1908), Order 1 Rule 8, Order 39 Rule 1 & 2, Section 151 – Constitution of India, Article 227 -- Suit for mandatory injunction – Temporary injunction – Maintainability of -- Construction of Community Hall on the instructions of State Government, which has accorded permission on the basis of resolution passed by the Gram Panchayat and the amount is being spent by the State Government – Challenge to stay declined by Courts below – Held,

-- It is well settled principle of law that in a suit for mandatory injunction, no relief of temporary injunction can be granted, which will amount to passing a decree of mandatory injunction itself.

-- A careful perusal of the plaint would show that nothing is stated that any personal right of any of the petitioners is infringed, therefore, in view of Section 41(j) of the Specific Relief Act, the suit is not maintainable.

-- The suit has not been filed in representative capacity under Order 1 Rule 8 CPC and no application has been moved seeking permission from the Court that the suit is being filed on behalf of the entire village community, therefore, it is a suit which has been filed only by nine inhabitants of the village, whereas the Community Hall is being constructed for the entire village.

-- Both the Courts below have discussed the judgments of this Court, wherein it is held that the Gram Panchayat is competent to change the user of the land in a manner it likes as well as when sufficient area of Shamlat land is available, it can be used for any other development work and injunction cannot be granted regarding change of nature of land.

-- Even a perusal of the plaint further shows that it is nowhere mentioned that the passage of the temple will be blocked, rather it is a case of Gram Panchayat that there is difference of about 400 ft. between the temple and the Community Hall.

Court found no ground to interfere with the well-reasoned orders passed by the Courts below dismissing the application for stay -- Finding no merit in the revision petition, the same is dismissed.

(Para 9-11)