Moti Natwarlal & Ors Vs.
Raghavayya Nagindas & Co [1977] INSC 93 (21 March 1977)
CHANDRACHUD, Y.V.
CHANDRACHUD, Y.V.
SHINGAL, P.N.
CITATION: 1977 AIR 1778 1977 SCR (3) 351 1977
SCC (2) 761
ACT:
Bombay High Court original side Rules
1957--Rules 569, 573---Whether a Solicitor's bill of cost for work done in
court subordinate to High Court can be taxed by the Taxing Master of High
Court--Whether it can be taxed on the original side scale--Legal Practitioners'
Fees Act 1926--Section 4--Section 224 (1)(d) of Govt. of India Act 1935--Rules
framed there under--Bombay City Civil Courts Act 1948--Section 18(2) of the
Bombay City Civil Court Rules 1948.
HEADNOTE:
Certain properties belonging to the
appellants were attached by the City Civil Court in Bombay in execution of a
decree. The appellant engaged the respondent firm of Solicitors who by Vakalat
executed in their favour by the appellants agreed to act, appear and plead for
them in the City Civil Court. The respondents took out three Chamber Summonses
on behalf of the appellants for raising the attachment. Thereafter, they
submitted three bills. Since the bills remained unpaid, they obtained an order
from the Prothonotary of the High Court directing the Taxing Master to tax the
bills. The appellants filed an appeal against the order of the Prothonotary
which was dismissed by the Chamber Judge with liberty to the Taxing Master to
decide whether the respondents were entitled to be remunerated on the original
side scale of fees as between an attorney and client. The Taxing Master
rejected the appellants' contention and taxed the respondents' bills according
to the scale of fees applicable on the original side by the High Court. A
Chamber Summons filed by the appellants before a Single Judge was dismissed. An
appeal before the Division Bench by the appellants also failed.
In an appeal by Special Leave the appellants
contended:
1. The Solicitors' bill for cost and
remuneration in respect of the work done by them in the City Civil Court cannot
be taxed by the Taxing Master of the Original Side, High Court.
2. The bill in any event cannot be taxed
according to the scale of fees applicable on the original side as between an
attorney and client, particularly in view of the provisions contained in the
Legal Practitioners Fees Act, 1926, Bombay City Civil Courts Act, 1948 and the
Bombay City Civil Court Rules, 1948 as well and the rules framed by the Bombay
High Court under section 2 24 ( 1 ) (d) under the Government of India Act, 19 3
5.
Dismissing the appeal,
HELD: 1. Rule 569 of the Rules of the High
Court of Bombay (Original side) 1957, authorises the Taxing Master to tax the
bills of cost on every side of the High Court except the Appellate side of the
High Court and in the Insolvency Court. All other bills of cost of attorneys
shall also be taxed by him when he is directed to do so by a judge's order.
There is no justification for the appellants' contention that "other bills
of cost" must be construed to mean other bills of cost relating to matters
on the original side of the High Court. Rule 573 as amended prescribed a
limitation of 5 years for lodging the bill of cost for taxation after the
disposal of the suit or the proceedings in the High Court. In respect of
matters which are not the subject of any proceedings in the High Court the
attorney has to lodge his bill of cost for taxation within 5 years from the
completion of the matter. The necessity for making this provision arose because
rule 568 empowers the Taxing Master to tax the attorneys bill of cost in all
matters except those on the Appellate side of the High Court. The Bombay High
Court, over a long Course of years has consistently taken the view that the
Taxing Master has Jurisdiction to tax attorneys bills of cost in relation
8-436SC1/77 352 to the professional services rendered by them whichever be the
court in relation to which the services are rendered except the Appellate side
of the High Court, in regard to which an exception has been expressly carved
out by the rule. [354 G-H, 355 A-G] Nowroji Fudumli Sirdar v. Kanga &
Savani, 28 Born. L.R. 384, Chitnis & Kanga v. Wamanrao S. Mantri, 46 Bom.
L.R. 76 and M/s. Pereta Fazalbhoy & Co. v. The Rajputana Cold Storage &
Refrigeration Ltd., 65 Bom. L R. 87 approved.
2. The preamble and the statement of objects
and reasons of the Legal Practitioners Fees Act 1926 shows that the Act was
passed in order to give effect to the recommendations of the Indian Bar
Committee that in any case in which a Legal Practitioner has acted or agreed to
act he should be liable to be sued for negligence and be entitled to sue for
his fees. The Indian Bar Committee recommended by para 42 of its report that
the distinction relating to suing for negligence and being sued for fees was
not of great importance since suits by or against Legal Practitioners in respect
of fees and the conduct of cases were extremely rare.
But it was necessary to provide that in any
case in which a Legal Practitioner had acted or agreed to act he should be
liable to be sued for negligence and be entitled to sue for his fees. The
definition of Legal Practitioner in the 1926 Act is the same as in the Legal
Practitioners Act, 1879 (which includes an attorney). Section 3 of the Act of
1926 provides that any Legal Practitioner who acts or agrees to act for any
person may by private agreement settle with such person the terms of his
engagement and fees to be paid for his professional services. Section 4 of the
Act provides that any such Legal Practitioner shall be entitled to institute
and maintain legal proceedings for the recovery of any fee due to him under the
agreement or if no such fee has been settled a fee computed in accordance with
the law for the time being in force in regard to the computation of the cost to
be awarded to a party in respect of the fee of his Legal Practitioner. It may
be that if an attorney institutes a suit he may be governed by section 4 but it
really confers an additional right on the Legal Practitioner to institute a
suit and cannot be construed as detracting from any other right which he may
possess in regard to the taxation and recovery of his fees. [358 G-H, 359 A-B,
F-H]
3. The High Court was in error in observing
that alternatively there was an apparent conflict between section 4 of the 1926
Act and the original side rules relating to the taxation of an attorney's bills
of cost. Bearing in mind the true object and purpose for which the 1926 Act was
passed and the drive of section 4, there is no conflict, apparent or real
between the 1926 Act and the High Court Rules of 1957. [360 D-E]
4. The rules framed by the High Court under
section 224(1)(d) of the 1935 Act, are rules for fixing and regulating the fees
payable as costs by any' party in respect of the fees of his adversary's
attorney. These rules according to their very terms have nothing to do with the
taxation of any attorney's bill of cost as between himself and .his own client.
[360 F-G]
5. The combined effect of section 4 of the
1926 Act and the Rules framed by the High Court under section 224(1)(d) is that
if an attorney who has appeared or acted for his client in the City Civil Court
sues his client for fees he cannot recover in the suit anything more than what
is permissible under the Rules framed by the High Court under section
224(1)(d). However, that does not affect the right of an attorney to have his
bill taxed by the Taxing Master on the original side scale. [361 C-D] 6.
Section 18(2) of the Bombay City Civil Courts Act.
1948 provides that in respect of suits
transferred from the High Court to the City Civil Court costs incurred in the
High Court till the date of the transfer of the suit are to be assessed by the
city Civil Court in such manner as the State Government may after consultation
with the High Court determine by rules. Rule 2 framed under section/8(2) provides
that even as regards the fees of attorneys the Registrar of the City Civil
Court is given the Vower to tax and allow all such costs and out of pocket
expenses as shall have been properly incurred by an attorney upto the date of
transfer of the suit. The rule further provides that after the date 353 of the
transfer such fees shall be taxed and allowed as in the opinion of the
Registrar are commensurate with the work done by the advocate having regard to
the scale of fees sanctioned for the advocates in the City Civil Courts Rules.
The said rule, applies only to transferred
suits. It has no application to the suits and proceedings instituted in the
City Civil Court after 148. [361 D-H] M/s. Sandersons & Morgans v. Mohanlal
Lalluchand Shah, A,I.R. [1955] Cal 319 distinguished.
7. The Taxing Master, however, before
allowing the cost claimed by the attorney from his client must have regard to
the fact that the attorney has appeared in a subordinate court and to the scale
of fees generally prevalent in that Court. [363 G-H] The Court observed that
power similar to the power of taxation of a bill costs between the advocate and
client which is found in Supreme Court Rules, 1966, should be conferred on
appropriate officers of the Court subordinate to the High Court. Such a power
may enable the presiding Judge to control the professional ethics of the
advocates appearing before them more effectively than is possible at present.
[362 A-G]
CIVIL APPELLATE JURISDICTION: Civil Appeal
NO. 1317 of 1975.
(From the Judgment and Order dated 8-10-1974
of the Bombay High Court in Appeal No. 73 of 1974) P.H. Parekh and Miss Maniu
Jetley, for the Appellant S. K. Dholakia and R.C. Bhatia, for the respondent.
F.S. Nariman and B.R. Aggarwal, for the intervener.
The Judgment of the Court was delivered by
CHANDRACHUD, J. A question of practical importance concerning the dying
profession of Solicitors arises in this appeal by special leave. The question
is whether the bill of costs of a Solicitor or an Attorney who has rendered
professional services to his client in the City Civil Court can be taxed by the
Taxing Master, Original Side, Bombay High Court, and if so, whether it can be
taxed on the Original Side scale. The dual system which was prestigiously in
vogue in Bombay since the inception of the Bombay High Court has been abolished
with effect from January 1, 1977 and therefore the question is not of growing
importance. All the same, though the question will by and by cease to have the
importance which it has to-day, we are informed at the bar that quite a few
cases are kept pending in Bombay to await the decision of this appeal.
Certain properties belonging to appellants
were attached by the City Civil Court, Bombay, in execution of a decree passed
by a Court in Bellary. The appellants appeared in the execution proceedings
through a firm of Solicitors, M/s Raghavayya Nagindas & Co., respondents
herein, who by the vakalatnama executed in their favour by the appellants,
agreed to act, appear and plead for them in the City Civil Court. The
respondents took out three Chamber Summonses on behalf of the appellants for
raising the attachment, which was eventually raised in about 1960. Thereafter,
they submitted three bills to the appellants for their costs and remuneration.
Since the bills remained unpaid, the respondents obtained on February 8, 1972
an order from the Prothonotary of the High Court directing the Taxing Master to
tax the bills 354 The appellants appealed against the order of the Prothonotary
by way of Chamber Summons which was dismissed by the Chamber Judge on October
26, 1972 with liberty to the Taxing Master to decide whether respondents were
entitled to be remunerated on the Original Side scale of fees, as between an
Attorney and. client. The Taxing Master rejected the appellants' contention,
taxed the respondent bills according to the scale of fees applicable on the
Original Side of the High Court and directed the issuance of an allocatur.
Before the respondents could obtain a payment
order on the basis of the allocatur, the appellants took out a Chamber Summons on
May 7, 1973 challenging the order of the Taxing Master. That Chamber Summons
was dismissed by the Chamber Judge whose decision has been confirmed in appeal
by a Division Bench.
Three contentions were raised by the
appellants in the High Court: (1) A Solicitor's bill for costs and remuneration
in respect of the work done by him in the City Civil Court cannot be taxed by
the. Taxing Master, Original Side, High Court; (2) The bill, in any event,
cannot be taxed according to the scale of fees applicable on the Original Side
as between an Attorney and client; and (3) The recovery of the amount taxed by
the Taxing Master is barred by limitation under art. 113 of the Limitation Act,
1963. The High Court rejected all these contentions by its judgment dated
October 8, 1974.
Mr. Parekh, appearing for the appellants
before us, did not press the third point regarding limitation and rightly so.
Article 113 of the Limitation Act, though residuary, applies to suits and
cannot govern the special form of remedy available to the Attorneys for recovering
their fees.
Proceedings in pursuance of that remedy are
governed by rule 573(ii)(a) of the Original Side Rules and the proviso thereto.
The proceedings for recovery of fees under those provisions are not barred by
time.
Counsel has, however, pressed the first two
contentions with some zeal. We will first take up for consideration the primary
question whether the Taxing Master has jurisdiction at all to tax an Attorney's
bill of costs for professional services rendered by him to his client in connection
with a litigation in a court other than the Bombay High Court, in this case the
City Civil Court. Rule 569 of "The Rules of the High Court of Bombay
(Original Side), 1957" affords, in our opinion, a complete .answer to the
appellants' contention that the Taxing Master who is an officer of the Original
Side of the High Court has no jurisdiction to tax the Attorneys' bills in
regard to work done by them in matters other than those on the Original Side.
Rule 539 occurs in Chapter XXIX of the Original Side Rules under the rubric
"The Taxing Office". The rule reads thus:
"569. The Taxing Master shall tax the
bills of costs on every side of the Court (except the Appellate Side) and in
the Insolvency Court. All other bills of costs of Attorneys shall also be taxed
by him when he is directed to do' so by a Judge's order." 355 The rule
consists of two parts of which the first part confers jurisdiction on the
Taxing Master to tax the bills of costs on every side of the High Court
including bills relating to matters in the Insolvency Court but excluding those
on the Appellate Side of the High Court. If the rule were to stop with the
first part, it would have been possible to say that the Taxing Master has no
Jurisdiction to tax the bills in regard to matters outside the High Court. But
the second parts of the rule puts the matter beyond doubt by providing that all
other bills of costs of Attorneys shall also be taxed by the Taxing Master it
is argued on behalf of the appellants that "other bills of costs' must be
construed to mean "other bills of costs relating to matters on the
Original Side of the High Court" and bills relating to non-contentious
matters. We see no jurisdiction for cutting down the scope of the second part
of the rule by putting a limited meaning on words of width used therein.
"All other bills of costs of Attorneys" to which the second part of
the rule refers must 'mean all bills of costs of Attorneys other than those
which are referred to in the first part of the rule. That we conceive to be the
plain meaning of the particular provision.
Rule 573 which was amended by Slip No. 190
also shows that the Taxing Master has jurisdiction to tax the bills of
Attorneys in regard to professional services rendered by them in matters
outside the High Court. Amended rule 573(i)(a) provides that subject to the
proviso and subject to the discretion of the Chamber Judge to enlarge the time,
in "every suit or proceeding in the High Court" an Attorney shall
lodge his bill of costs for taxation within five years after the disposal of
the suit or the proceeding, and if an appeal is filed in the High Court within
five years from the disposal of the appeal. Amended rule 573(ii)(a) provides
that subject to the proviso and to the Chamber Judge's discretion, "In the
case of matters which are not the subject of any proceedings in the High Court,
an attorney shall lodge his bill of cost's for taxation within five years from
the completion of the matter." This latter rule prescribes the time within
which an Attorney must lodge his bill of costs in regard to matters which are
not the subject of any proceedings in the High Court. The necessity for making
this provision arose evidently because rule 569 empowers the Taxing Master to
tax the Attorneys' bills of costs in all matters except those on the Appellate
Side of the High Court. The appellants' contention, if accepted, will render
rule 573(ii)(a) otiose because according to that contention, no matter which is
not the subject of any proceeding on the Original Side of the High Court or in
the Insolvency Court could be taken before the Taxing Master for taxation of
the Attorney's bills. It was then useless. to provide that bills in regard to
matters which are not the subject of any proceeding in the High Court must be
filed within a particular period.
Apart from what appears to us to be the only
reasonable construction of rule 569, the Bombay High Court, over a long course
of years, has consistently taken the view that the Taxing Master has
jurisdiction to tax Attorneys' bills of costs in relation to professional
services rendered by them in all matters, contentious or non-contentious, and
whichever be the Court in relation to which the services 356 are rendered,
except-the Appellate Side of the 'High Court ill regard to which an exception
has been expressly-carved out by the rule'.. In Nowroji Pudumji Sirdar v. Kange
& Savani(1) the appellants were represented by the respondent firm .of
Solicitors in litigation in the District Court and the Subordinate Courts of Poona.
The appellants having declined to pay the respondents' bills on the ground
that, they were excessive, respondents obtained an order from the Prothonotary
for having the bills taxed by the Taxing Master. In an appeal from the decision
of the Chamber Judge who upheld the Prothonotary's order, it was contended by
the appellants that the Taxing Master had no jurisdiction to .tax the bills of
the respondents, firstly because the bills pertained to work which was not
connected with the Original Side of the High Court and secondly because the
services were rendered to the appellants by a partner of the respondent firm in
his capacity as a pleader. These contentions were rejected by a Division Bench
consisting of Sir Norman Macleod, C.J., and H.C. Coyajee, 1. who could
"see no reason" why a Solicitor practising in Bombay and performing
professional Services for a client regarding business in the mofussil should
not be entitled to get his bills taxed by the Taxing Master on the Original
Side of the High Court.
In coming this conclusion, the High Court
relied on rule 494 of the Original Side Rules, 1922 which was identical with
rule 569 of the Rules of 1957.
The High Court observed in Nowroji's case
that it may, be that Attorney would fall within the provisions of the Bombay
Pleaders Act, 17 Of 1920, with regard to any work done in mofussil Courts after
the coming into force of that Act, but that it was unnecessary to consider that
question because the work for which the respondents, had lodged their bills was
done before that Act had come into force, Relying upon this observation, it was
submitted by Mr. Parekh that the decision in Nowroji's case is not good law
after the coming into force of the Bombay Pleaders Act. It is not possible to
accept this submission because even after that Act came into force, the Bombay
High Court took the same view as was taken in Nowroji's case and for good
reason which we will expiate while dealing with the appellants contention
bearing on i the scale of fees according to which the bills can be taxed. The
relevant rule, couched in identical language age, with which the High Court was
concerned from time to time leaves no doubt that the Taxing Master has the
jurisdiction to tax all bills of costs of Attorneys, except those in regard to
the work done by them on the Appellate Side of the High Court.
In Chitnis & Kanga v. Wamanrao S.
Mantri(2) the appellants, a firm of Solicitors, had obtained from the Prothonotary
of the High Court an order under rule 534 of the Rules of 1936, directing the
Taxing Master to tax their bill of costs relating to (1) a suit filed on the
Original Side of the High Court, (2) a petition for probate in the District
Court at Satara, (3) an appeal in the High Court on its (1) 28 Bom. L.R. 384.
(2) 48 Born. L.R.76.
357 Appellate Side and (4) certain
miscellaneous work done in the mofussil. The respondent, to whom the appellants
had rendered these professional services, contended before the Taxing Master
that the order of the Prothonotary was ultra vires insofar as it related to
items (2), (3) and (4). The Taxing Master rejected that contention whereupon
the respondent took out a Chamber Summons submitting that it was not competent
to the Attorneys to take advantage of the procedure that applies to taxation of
Solicitors' costs on the Original Side of the High Court in respect of costs
incurred in the mofussil and on the Appellate Side of the High Court. The
respondent further contended by the Chamber Summons that the matter was
governed by the Bombay Pleaders Act, 17 of 1920, and therefore the Taxing
Master had no jurisdiction to tax the appellants' bill in regard to items 2, 3
and 4. The Chamber Judge set aside the ex-parte order of the Prothonotary
without a speaking order, against which the appellants filed .an appeal which
was heard by Sir John Beaumont, C.J., and Kama, J. The Division Bench held that
the order of the Prothonotary in regard to item 3 which related to the work
done by the appellants on the Appellate Side of the High Court was clearly wrong
in view of the provision contained in rule 534 of the Rules of 1936.
As regards the remaining three items, namely
the suit on the Original Side, the probate proceedings in the Satara District
Court and the miscellaneous work done in the mofussil, the Court following the
decision in Nowroji's case held that the appellants were entitled to have their
bill taxed in regard to these items by the Taxing Master of the Original Side,
although it related to work done in the mofussil.
Adverting to the observation made in
Nowroji's case in regard to the effect of the Bombay Pleaders Act of 1920, the
learned Judges held that the provisions of that Act had no effect on the
question in issue. The learned Chief Justice referred in his judgment to s. 17
of the Act of 1920 which provided that a legal practitioner (which expression
included an Attorney) may enter into a special agreement as to the terms of his
remuneration and to s. 18 which dealt merely with the amount of pleader's fees
which could be recovered against the opposite party. These provisions,
according to the High Court, had nothing to do with the question whether an
Attorney's bill of costs in regard to the work done by him in the mofussil
could be taxed by the Taxing Master.
in Nowroji (supra), the learned Judge held
that by reason of rule 569, age & Refrigeration Limited,(1) Mody J.,
sitting singly, took the same view of the Taxing Master's power to tax the
Attorneys' bills. In that case the appellants had rendered professional
services to the respondents in respect of a petition for winding up which was
filed in the High Court of Rajasthan. Respondents raised the same contenions
which are raised by Mr. Parekh before us, namely, that the Prothonotary had no
jurisdiction to pass the Order directing the Taxing Master to tax the bill and
secondly, that the bill of costs could not be taxed on the Original Side scale.
Relying upon the decision in Nowroji (supra), the learned Judge,held that by
reason of rule 569, the very rule with which we are concerned in the instant
case, an (1) 65 Bom. L.R. 87.
358 Attorney of the High Court was entitled
to have his bill of costs taxed by the Taxing Master in respect of professional
work done by him even in a Court other than the Bombay High Court. The learned
Judge also negatived the second contention of the respondents before him, but
we will turn to that part of the judgment later.
These decisions of the High Court contain a
correct exposition of the relevant rule which was numbered as Rule No. 494 in
the Rules of 1922, No. 534 in the Rules of 1936 and is now Rule No. 569 in the
Rules of 1957. The Rules of 1909 also contained a similar .rule bearing No.
491. It is important to mention from the point of view of 'legislative'
history, that prior to the framing of the 1909 rules, the corresponding rule
was Rule 544 of the 1907 Rules which. in material respects, was worded
differently. It said:
"Rules 544.
The Taxing Officer shall tax the bills of
costs on every side of the Court (Except the Appellate Side) and in the
Insolvency Court.
He .shall also tax all such attorney's bills
of costs as he may be directed to tax by a Judge's order on consent of the
parties, or on the application by any party chargeable with the bill."
Under this rule, the Taxing Officer could tax the bills referred to in the
second part of the rule by consent of parties only of if an application was
made for taxation of the bill by a person chargeable with the bill. Further,
the second part of Rule 544 did not contain the expression "All other bills
of costs" (emphasis supplied) which is to be found in the corresponding
rule since the framing of the 1922 Rules. The significant changes introduced in
1922 are directed at conferring on the Taxing Master the power to tax all bills
of Attorneys, including those for work done in any other Court save the
appellate side of the High Court.
It is argued on behalf of the appellants that
assuming that the Taxing Master has jurisdiction to tax the bills in regard to
the work done by the respondents in the City Civil Court, the bills cannot be
taxed on the Original Side scale in view of the provisions contained' in the
Legal Practitioners (Fees) Act, 21 of 1926. We see no substance in this
submission. The statement of Objects and Reasons of the 1926 Act shows that the
Act was passed in order to give effect to the recommendation of the Indian Bar
Committee that in any case in which a legal practitioner has acted or agreed to
act, he should be liable to be sued for negligence and be entitled to sue for
his fees, Prior to the Passing of the Act of 1926, various High Courts in India
had held almost consistently that Vakils could be. sued for negligence in the
discharge of their professional duties and were entitled to sue for their fees
but .Barristers could neither be sued for negligence nor could they sue for
their fees.
The Indian Bar Committee recommended by
paragraph 42 of its report that in practice the distinction relating-to suing
for negligence and being sued 359 for fees was not of great importance since
suits by or against legal practitioners 'in respect .of fees and the conduct of
cases were extremely rare; but it was necessary to provide that in any case in
which a legal practitioner had 'acted' or 'agreed to act', he should be liable
to be sued for negligence and be entitled to sue for his fees.
The long title of the Act of 1926 describes
it as an Act "to define in certain cases the rights of legal practitioners
to sue for their fees and their liabilities to be sued in respect of negligence
in the discharge of their professional duties." The preamble of the Act is
in the same terms.
Section 2(a) of the Act defines a 'legal
practitioner' to mean a legal practitioner as' defined in s. 3 of the Legal Practitioners
Act, 1879 according to which a 'legal practitioner' means "an Advocate,
Vakil or Attorney of any High Court, a Pleader, Mukhtar or Revenue Agent".
Section 3 of the Act of 1926 provides that any legal practitioner who acts or
agrees to act for any person may by private agreement settle with such person
the terms of his engagement and the fee to be paid for his professional
services. Section 5 of the Act provides that no legal practitioner who has
acted or agreed to act shall, by reason only of being a legal practitioner, be
exempt from liability to be sued in respect of any loss or injury due to any
negligence in the conduct of his professional duties. Section 4 of the Act of
1926 which is the sheet anchor of Mr. Parekh's argument reads thus:
"4. Right of legal practitioner to sue
for fees.
Any such legal practitioner shall be entitled
to institute and maintain legal proceedings for the recovery of any fee due to
him under the agreement, or, if no such fee has been settled, a fee computed in
accordance with the law for the time being in force in regard to the
computation of the costs to be awarded to a party in respect of the fee of his
legal practitioner."' In the first place, as explained above, the Act of
1926 was passed for an entirely different purpose with which we are not
concerned in the present case. Secondly, and that is more important, section 4
on which the appellants rely deals, as shown by its marginal note, with a
limited question viz., the right of a legal practitioner to sue for his fees.
It may be that since an Attorney is included within the meaning of the
expression 'legal practitioner', he will be governed by the provisions
Contained in s. 4 of the Act of 1926 if he brings a suit for the recovery of
his fees. But we are not concerned in this case to determine_ the scope and
extent of an Attorney's right to sue for his fees. It must further be borne in
mind that s. 4, which is in two parts, provides in the first place that a legal
practitioner 'shall be entitled' to institute and maintain a legal proceeding
for the recovery of any fee due to him under an agreement. This part of the
section confers an additional entitlement on legal practitioners and cannot
justifiably be construed as detracting from any other right which they may
possess in regard to the taxation and recovery of their fees. Section 4
provides by its second part that if there is no agreement between the legal
'practitioner and his client in regard to the fees payable to him, he shall be
entitled to institute and 360 maintain legal proceedings for the recovery of a
fee computed in the manner provided therein. This also is in the nature of an
entitlement, the right recognised thereby being .the right to bring a suit to
recover the fees in the absence of an agreement. Any legal practitioner who
wants to enforce the right which is specially created and conferred by the Act
of 1926 will have to comply with the conditions on which that right is
conferred. When a statute creates a special right, it can only be enforced in
the manner and subject to the conditions prescribed by the statute. Therefore,
the fees for the recovery of which legal proceedings are brought under s. 4 cannot
be any.
larger than the fees computed in accordance
with the law for the time being in force in regard to the' computation of the
costs to be awarded to a party in respect of the fee of his legal practitioner.
But, as we have stated earlier, the provisions of the Act of 1926 are ,entirely
beside the point. They have no bearing on the question whether an Attorney can
have his bill taxed by the Taxing Master in respect of the work done by him in
courts other than the High Court of Bombay and if so, on what scale.
The Bombay High Court in the judgment under
appeal thought that there was an apparent conflict between s. 4 of the Act of
1926 and the Original Side Rules relating to the taxation of an-Attorney's bill
of costs. We would like to make it clear that bearing in mind the true object
and purpose for which the Act of 1926 was passed and the drive of s. 4 thereof,
there is no conflict, apparent or real, between any of the provisions of the
Act of 1926 and the rules of taxation contained in the Original Side Rules of
1957. In that view, it is unnecessary to resort to the principle of harmonious
construction which the High Court alternatively relied upon for holding that
the Taxing Master has the jurisdiction to tax the respondents' bill in the
instant case and on the Original Side scale.
Mr. Parekh then relied upon the rules framed
by the Bombay High Court under s. 224(1)(d) of the Government of India Act,
1935 which corresponds roughly to art. 227(3) of the Constitution and contended
that the respondents' bills must be taxed in accordance with those rules and
not according to the scale prescribed by the Original Side Rules.
This contention too is unacceptable. The
rules on which counsel relies were framed by the High Court "for fixing
and regulating by taxation or otherwise the fees payable as Costs by any party
in respect of the fees of his adversary's Attorney appearing, acting and
pleading upon all proceedings in the Bombay City Civil Court." These
rules, according to their very terms, have nothing to do with the taxation of
any Attorney's bill of costs as between himself and his own client. The rules
govern the fees payable by way of costs by any party in the City Civil Court,
in respect of the fees of his adversary's Attorney. That is to say, if an order
of costs is passed in favour of a party to a suit or proceeding in the City
Civil Court, he is entitled to recover from his adversary by way of
professional charges incurred by him, the fees computed in accordance with the
rules framed under s. 224(1)(d) of the Government of India Act and not what he
has in fact paid to his 361 Attorney. Rule 9 on which 'counsel relies
particularly, makes this position clear by providing:
"9. Where costs are awarded to a party
in any proceeding' the amount of the Attorney's fee to be taxed in the bill of
costs is recoverable by such party if represented by an Attorney from the
adversary and shall be computed in accordance with the rules above unless such
fee has been settled under the provisions of section 3 of the Legal Practitioner's
(Fees) Act, 1926, for a lesser amount in which case not more than such lesser
amount shall be recoverable." The combined effect of this rule and s. 4 of
the Legal practitioners (Fees) Act, 1926 is that if an Attorney who has appeared
or acted for his client in the City Civil Court sues his client for fees, he
cannot recover in the suit anything more than is permissible under the rules
framed by the High Court under s. 224(1)(d) of the Government of India Act,
1933. Neither those rules nor anything. contained in the Act of 1926 is
calculated to affect the Attorney's right to have his bill taxed by the Taxing
Master on the Original Side scale, for work done by the Attorney in the City
Civil Court.
The Bombay City Civil Court Act, 69 of 1948,
provides by s. 18(1) that all suits and proceedings cognizable by the City
Civil Court and ,pending in the High Court, in which issues have not been
settled or evidence has not been recorded shall be transferred to the City
Civil Court. By s. 18(2), costs incurred in the High Court till the date of the
transfer of the suit are to be assessed by the City Civil Court in such manner
as the State Government may after consultation with the High Court determine by
rules.
Mr. Parekh. drew our attention to rule 8
framed by the Government of Bombay under s. 18(2) but we do not see its
relevance on the issue under consideration in the instant case. That rule shows
that even as regards the fees of Attorneys, the Registrar of the City Civil
Court is given the power to tax and allow all such costs and out of pocket
expenses as shall have been properly incurred by an Attorney up to the date of
the transfer of the suit. The rule further provides that after the date of the
transfer such fees shall be taxed and allowed as in the opinion of the
Registrar are commensurate with the work done by the Advocate having regard to
the scale of fees sanctioned for the Advocate in the City Civil Court by the
High Court. Rule 2, being a rule framed under s. 18(2) of the Act of 1948,
governs transferred, suits only and it expressly authorises the Registrar to
tax the Attorney's bill for the work done in such suits both before and after
the transfer of the suit from the High Court to the City Civil Court. There is
no corresponding rule which can apply to suits and proceedings instituted in
the City Civil Court after the Bombay City Civil Court Act, 1948 came into
force and in the absence of such rule, the rules framed under s. 18(2) cannot
'support the appellants' contention. Mr. Parekh also drew our attention to the
"Rules of the Bombay City Civil Court, 1948" framed by the Bombay
High Court under s. 224 of the Government of India Act, 1935 but we see nothing
362 in those rules either which can assist his contention regarding the power
of the Taxing Master to tax an Attorney's bill as between himself and his
client.
While we are on this aspect of the matter it
would be useful to refer to the Supreme Court Rules, 1966 and the Bombay High
Court Appellate Side Rules, 1960. The Supreme Court ' Rules contain elaborate
provisions in Order XLI and XLII thereof regarding costs of proceedings and
taxation of costs. Rule 13 of Order XLII provides that except as otherwise
provided in the rules or by any law for the time being in force, the fees set
out in the Second and Fourth Schedules to the Rules may be allowed to Advocates
and officers of the Court respectively. Rules 23 to 29 of Order XLII deal
specifically with Advocate and Client taxation. The Second Schedule contains
detailed provisions under which fees are payable to Advocates. for various
types of professional services rendered by them. Similarly, Chapter 14 of the
Appellate Side Rules of the Bombay High Court contains various rules for
computing the fees which an Advocate is entitled to charge his own client.
Similar provision is to be found in England in the Supreme Court Costs Rules,
1959 (see The Annual Practice 1965, p. 1998/300). Mr. Natman who appears on
behalf' of the Incorporated Law Society, Bombay, drew our attention to rule 29
of the last mentioned rules under which a Solicitor's bill can be taxed as
between himself and his client. These provisions are on a par with the rules of
taxation of the Original Side of the Bombay High, Court. The important point to
be noted is that the Rules of the City Civil Court do not, except in regard to
suits transferred from the High Court, contain any provision under which an
Attorney can have, his bill taxed as between himself and his client.
Perhaps there is good reason for this because
though under s. 224(1)(d) of the Government of India Act, 1935 and art. 227(3)
of the Constitution, the High Court has got the power to settle tables of fees
to be allowed to Attorneys practising in Subordinate Courts, that power has not
been exercised by the High Court for the reason, probably, that the Rules of
Taxation on the Original Side of the High Court adequately and effectively take
care of that matter. The High Court did exercise its powers under s. 224(1)(d)
in relation to the City Civil Court but did not in the rules framed in the
exercise of that power provide for taxation of an Attorney's bill of costs as
between him and his client.
It is not too much to suppose that the High
Court did not want to do once over again what it had elaborately done while
framing the rules on the Original Side, which were in vogue for a large number
of years and were working satisfactorily.
Mr. Parekh sought to derive some sustenance
to his argument from a decision of the Calcutta High Court in Messrs Sander
sons & Morgans v. Mohanlal Lalluchand Shah(1) but we find that the question
which arose for decision therein was entirely different. The appellants
therein, a firm of Solicitors, submitted to the respondents a bill of costs for
the work done by them for the respondents on the (1) A.I.R. 1955 Cat. 319.
363 Original Side of the Calcutta High Court.
The respondents challenged the bill by a Chamber Summons, which the appellants
resisted on the ground that there was a private agreement between the parties
to pay a particular amount by way of fees and therefore the bill was not liable
to be taxed under the Original Side Rules. On a cosideration of the Original
Side Rules of the Calcutta High Court, Particularly rules 4 and 74 of Chapter
36, the High Court came to the conclusion that the solicitors were bound to
have their bills taxed according to the Original Side scale, agreement or no
agreement. We are concerned in the instant case with a different question under
a different set of rules and as pointed out by the High Court, the Calcutta
Rules are in material respect different from the Bombay Rules. We must
interpret the Bombay Rules on their own terms and decisions on other statutes
cannot afford material assistance unless, of course', .my principle of general
application is laid down.
We have already mentioned that in Messrs
Pereira Fazalbhoy & Co. Mody J., held that an Attorney was entitled to have
his bill taxed on the Original Side scale even in respect of the work done by
him outside the High Court. For the various reasons mentioned above we endorse
that view.
Before concluding, we ought to refer to a
rather anxious plea made by Mr. Parekh which involves ethical considerations.
Counsel urged that it is unfair that for small work done in the City Civil
Court Solicitors should be permitted to charge high fees prescribed under the
Original Side Rules. We find ourselves unable to share this concern. If
anything, Solicitors are subject to the watchful supervision of the High Court
wherever they may render professional services. The object of binding the
Attorneys to the scale of fees prescribed in the Original Side Rules is not to
confer on them any special benefit which is denied to other legal
practitioners. The object on the contrary is to ensure that Attorneys shall
always be subject. to the jurisdiction of the High. Court no matter whether
they have acted on the Original Side or in any Court subordinate to the High
Court. The only exception is made by rule 569 in regard to the work done on the
Appellate Side of the High Court which, as indicated earlier, prescribes its
own scale of fees 'as between an Advocate and his client. In fact, we are
unable to see why a power similar to the power of taxation of a. bill of costs
between an Advocate and his.
client which is to be found in the Supreme
Court Rules should not be conferred on appropriate officers of Courts
subordinate to the High Court. Such a power may enable the Presiding Judges to
control the professional ethics of the Advocates appearing before them more
effectively than is possible at present. In this very case, a. bill of Rs. 6000
odd lodged by the appellants was reduced on taxation to a sum of about Rs. 850/only.
If there were no machinery for taxing the bill, the appellants might perhaps
have got off with the demand. We would only like to add that before allowing
the costs claimed by an Attorney from his client, the Taxing Master' must have
regard to the fact that the Attorney has appeared in a Subordinate Court and to
the scale of fees generally prevalent in that Court. A judicious exercise of
364 discretion postulates elimination of unfair play, particularly where one
party to a transaction is in a position to dominate the will of the other. The
client must receive the protection of the Court and its officers, whenever
necessary.
For these reasons we confirm the judgment of
the High Court and dismiss the appeal. There will however be no order as to
costs.
P.H.P. Appeal dismissed..
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