Shah Babulal Khimji Vs. Jayaben D.
Kania & ANR [1981] INSC 137 (10 August 1981)
FAZALALI, SYED MURTAZA FAZALALI, SYED MURTAZA
VARADARAJAN, A. (J) SEN, AMARENDRA NATH (J)
CITATION: 1981 AIR 1786 1982 SCR (1) 187 1981
SCC (4) 8 1981 SCALE (3)1169
CITATOR INFO :
RF 1986 SC1272 (10,108,109) RF 1988 SC 915
(17) RF 1990 SC 104 (8)
ACT:
Code of Civil Procedure, 1908-Section 104
Order 43 Rule 1-Scope of-Letters Patent-Clause 15-Right of Appeal under clause
15-If affected by section 104, Order 43 Rule 1.
HEADNOTE:
In a suit for specific performance of an
agreement to sell filed on the original side of the Bombay High Court the
plaintiff (appellant) prayed for certain interim reliefs. A single Judge of the
High Court dismissed the application. A Division Bench of the High Court, on
appeal by the plaintiff, held that the appeal was not maintainable on the
ground that the impugned order of the single Judge was not a 'judgment' within
the meaning of clause 15 of the Letters Patent of the High Court.
In appeal to this Court it was contended on
behalf of the appellant that since the trial Judge is governed by the procedure
prescribed by the Code of Civil Procedure, by virtue of the provisions of
section 104 read with Order 43 Rule (1) the impugned order is appealable to a
larger Bench;
(2) assuming that the Letters Patent was a
special law, section 104 read with Order 43 is in no way inconsistent with
clause 15 of the Letters Patent; (3) even if section 104 read with Order 43
Rule 1 does not apply an order refusing to appoint a receiver or to grant
injunction has the attributes of finality and, therefore, amounts to a
judgment' within the meaning of Letters Patent.
Allowing the appeal HELD:
(per Fazal Ali and A. Varadarajan, JJ.)
(Amarendra Nath Sen, J. concurring.) Since the Order of the trial Judge was one
refusing appointment of a receiver and grant of ad-interim injunction, it is a
'judgment' within the meaning of the Letters Patent both because order 43 rule
1 applies to internal appeals in the High Court, and such an order even on
merits contains the quality of finality and would be a judgment within the
meaning of clause 15 of Letters Patent.
Hence an appeal is maintainable to the
Division Bench. The Division Bench was in error in dismissing the appeal without
deciding it on merits. [259 F-G] 188 There is no inconsistency between section
104 read with Order 43 Rule 1, C.P.C. and appeals under Letters Patent.
There is nothing to show that Letters Patent
in any way excludes or overrides the application of section 104 read with Order
43 Rule 1 or that these provisions do not apply to internal appeals within the
High Court. [237 E-F] Code of Civil Procedure 1877, by sections 588 and 589,
did not make any distinction between appeals to the High Court from the District
Court and internal appeals to the High Court under Letters Patent.
Notwithstanding the clear enunciation of law by the Privy Council that section
588 did not affect nor was it inconsistent with the provisions of Letters
Patent and that, therefore, orders of a trial Judge which fall beyond section
588 could be appealable to a larger bench under the Letters Patent if its
orders amounted to a 'judgment' within the meaning of clause 15 of the Letters
Patent, there was a serious controversy among the High Courts on this question.
Section 104 of the C.P.C., 1908 made it clear that appeals against orders
mentioned in Order 43 Rule 1 were not in any way inconsistent with the Letters
Patent but merely provide additional remedy by allowing appeals against miscellaneous
orders passed by the trial Judge to a larger bench. [205 E-G] In dealing with a
suit the trial Judge has to follow the procedure prescribed by the Code. It is
indisputable that any final judgment passed by the trial Judge amounts to a
decree and under the provisions of the Letters Patent an appeal lies to a
larger bench. Letters Patent itself does not define the term 'judgment' and has
advisedly not used the word 'decree' in respect of a judgment given by the
trial Judge. [206 B-D] Section 5 of the Code empowers the State Government to
apply the provisions of the Code where any enactment is silent as to its
applicability. Section 5 makes clear that, excepting the Revenue Courts, all
other Civil Courts would normally be governed by the provisions of the Code in
the matter of procedure.[206H,207A] Section 4 of the Code which provides that
in the absence of any specific provision to the contrary the provisions of the
Code do not limit or affect any special or local law, is not applicable in the
instant case because even if the Letters Patent is deemed to be a special law
within the meaning of this section the provisions of section 104 do not seek to
limit or affect the provisions of the Letters Patent. [207 B-C] By force of
section 104 all appeals, as indicated in the various clauses of Order 43 Rule
1, would lie to the appellate court. In short a combined reading of the various
provisions of the Code leads to the conclusion that section 104 read with Order
43 Rule 1 clearly applies to proceedings before a trial Judge of the High
Court. [207 H; 209 B] In the instant case, therefore, section 104 read with
Order 43 Rule 1 does not in any way abridge or interfere with or curb the
powers conferred on the trial Judge by clause 15 of Letters Patent. They only
give an additional remedy by way of appeal from the orders of the trial Judge
to a larger bench. That being so there is no force in the respondent's argument
that these provisions do not apply to internal appeals in the High Court. [209
D-E] 189 Hurrish Chunder Chowdry v. Kali Sundari Debia, 10 I.A.
4, Mt. Sabitri Thakurain v. Savi & Anr.
A.I.R. 1921 P.C. 80, Union of India v. Mohindra Supply Co., [1962] 3 S.C.R. 497
and Shankarlal Aggarwal & Ors. v. Shankarlal Poddar & Ors.
[1964] 1 S.C.R. 71, referred to.
A number of enactments, as for example,
section 202 of the Companies Act, 1956 and section 39 of the Arbitration Act
widen, rather than limit, the original jurisdiction of the High Court by
conferring additional or supplementary remedy by way of appeal to a Division
Bench from the judgment of a single Judge. On a parity of reasoning, therefore,
section 104 read with Order 43 Rule 1 expressly authorises and creates a forum
for appeal against orders falling under the various clauses of Order 43 Rule 1
to a larger bench of the High Court without disturbing, interfering with or
over-riding the Letters Patent jurisdiction.
[211 B-C] Dayabhai Jiwandas & Ors. v.
A.M.M. Murugappa Chettiar, I.L.R. 13 Rangoon 457, Sonbai v. Ahmedbhai Habibhai
[1872] 9 Bom. HC Reports. 398, Rajagopal & Ors. (in Re. LPA 8 of 1886) ILR
9 Mad. 447, Ruldu Singh v. Sanwal Singh [1922] ILR 3 Lahore 188, Lea Badin v.
Upendra Mohan Roy Chaudhary & Ors. [1934-35] 39 CWN 155, Mathura Sundari
Dassi v. Haran Chandra Shaha & Ors. A.I.R. 1916 Cal. 361 Abdul Samad &
Ors.
v. The State of J & K. A.I.R. 1969
J&K 52, and Kumar Gangadhar Bagla v. Kanti Chunder Mukerjee & Anr., 40
CWN 1264, approved.
Ram Sarup v. Kaniz Ummehani, ILR 1937 All.
386 over- ruled.
Assuming that Order 43 Rule 1 does not apply
to Letters Patent appeals the principles governing these provisions would apply
by process of analogy. The provisions of Order 43 Rule 1 possess the traits,
trappings and qualities and characteristics of a final order. Although the word
'judgment' has not been defined in the Letters Patent but whatever test may be
applied the order passed by the trial Judge appealed against must have the
traits and trappings of finality. The appealable orders indicated in the
various clauses of Order 43 Rule 1 are matters of moment deciding valuable
rights of the parties and are in the nature of final orders so as to fall
within the definition of 'judgment'. [237G; 225 E-F] Radhey Shyam v. Shyam
Behari Singh [1971] 1 S.C.R. 783 referred to.
Pandy Walad Dagadu Mahar & Anr. v.
Jamnadas Chotumal Marwadi, A.I.R. 1923 Bom. 218; Vaman Ravi Kulkarni v. Nagesh
Vishnu Joshi & Ors, A.I.R. 1940 Bom. 216; Vishnu Pratap & Ors. v. Smt.
Revati Devi & Ors. A.I.R. 1953 All. 647;
Madhukar Trimbaklal v. Shri Sati Godawari
Upasani Maharaj of Sakori & Ors. A.I.R. 1940 Nagpur 39; Ratanlal Jankidas
Agarwal v. Gajadhar & Ors.; A.I.R. 1949 Nagpur 188; Beads Factory &
Anr. v. Shri Dhar & Ors. A.I.R. 1960 All. 692; J. K. Chemicals Ltd. v.
Kreba & Co.; A.I.R. 1967 Bom. 56, overruled.
Having regard to the nature of the orders
contemplated in the various clauses of Order 43 Rule 1 which purport to decide
valuable rights of the parties in the ancillary proceedings even though the
suit is kept alive these orders possess the attributes or characteristics of
finality so as to be judgments within the meaning of clause 15 of the Letters
Patent. They are therefore, appealable to a larger 190 bench. The concept of
the Letters Patent governing only the internal appeals in the High Courts and
the Code of Civil Procedure having no application to such appeals is based on a
serious misconception of the legal position. [237H-238A-B] The question to be
decided in this case which is a vexed and controversial one is as to what is
the real concept and purport of the word 'judgment' used in the Letters Patent.
The meaning of the word 'judgment' has been the subject matter of conflicting
decisions of the various High Courts raging for almost a century and over which
despite the length of time no unanimity had been reached and it is high time
that this controversy should be settled once and for all as far as possible.
[238 E-F] Out of the numerous authorities cited three leading judgments have
spelt out certain tests for determining as to when an order passed by a trial
Judge can be said to be a 'judgment' within the meaning of clause 15 of the
Letters Patent and we are inclined to agree generally with the tests laid down
in these cases though some of the tests laid down are far too wide and may not
be correct. [238 G-H] While the view taken in the Justices of the Peace for
Calcutta v. The Oriental Gas Company (VIII Bengal L.R. 433) is much too strict,
the one taken in T. V. Tuljaram Row v. M.K.R.V. Alagappa Chettiar (ILR 35
Madras 1) is much too wide. The correct test seems to lie somewhere in between
the tests laid down in these cases. Similarly the full Bench decision in
Manohar Damodar Bhoot v. Baliram Ganpat Bhoot (AIR 1952 Nagpur 357) pithily
described the essential requisites and the exact meaning of the word 'judgment'
as used in the Letters Patent. The pointed observations made in this case try
to synthesize the conflicting views taken by the Calcutta and Madras High
Courts. They represent the true scope and import of the word 'judgment' as used
in the Letters Patent.
[The Court reviewed the entire case law on
the subject laying down various tests to determine what a judgment is.] The
test for determining as to when an order passed by a trial Judge can be said to
be a 'judgment' within the meaning of the Letters Patent are:
(1) Where an order, which is the foundation
of the jurisdiction of the Court or one which goes to the root of the action,
is passed against a particular party, it amounts to a judgment. [248 B-C]
Asrumati Debi v. Kumar Rupendra Deb Raikot [1953] SCR 1159 (2) An order
dismissing an application for review would be appealable under the Letters
Patent being a judgment, though it is not made appealable under Order 43 rule
1. [249 B] State of Uttar Pradesh v. Dr. Vijay Anand Maharaj [1963] 1 SCR 1.
(3) The Companies Act, 1956 which confers
original jurisdiction on the trial Judge expressly makes an order passed by the
trial Judge under section 202 appealable and, therefore, any order passed under
that section would be appealable under the Companies Act and is, therefore, a
judgment. [249 C-D] 191 Shankarlal Aggarwal v. Shankerlal Poddar [1964] 1 SCR
717 (4) Whenever a trial Judge decides a controversy which effects valuable
rights of one of the parties it is a judgment within the meaning of the Letters
Patent. [249 H] Radhey Shyam v. Shyam Behari Singh [1971] 1 SCR 783.
(5) Where an order passed by the trial Judge
allowing amendment of the plaint, takes away from the defendant the defence of
immunity from any liability by reason of limitation, it is a judgment within
the meaning of clause 15 of the Letters Patent. [250 A-B] Shanti Kumar R. Canji
v. The Home Insurance Co. of New York [1975] 1 SCR 550.
(6) Clause 15 of the Letters Patent does not
define the term 'judgment'. The Letters Patent is a special law which carves
out its own sphere and it would not be possible to project the definition of
the word 'judgment' as defined in the Code of Civil Procedure. Letters Patent
were drafted long before the Code of Civil Procedure of 1882 was enacted.
The word 'judgment' used in the Letters
Patent does not mean a 'judgment' as defined in the Code. At the same time it
does not include every possible order-final, preliminary or interlocutory
passed by a Judge of the High Court. [251 D-E] Mt. Shahzadi Begum v. Alak Nath
& Ors. A.I.R. 1935 All 628.
Under the Code of Civil Procedure a judgment
consists of reasons and grounds for a decree passed by a Court. As a judgment
constitutes the reasons for the decree, it follows as a matter of course that
the judgment must be a formal adjudication which conclusively determines the
rights of the parties with regard to all or any of the matters in controversy.
The concept of a judgment as defined in the Code seems to be rather narrow and
the limitations engrafted by section 2(2) cannot be physically imported into
the definition of the word 'judgment' as used in clause 15 of the Letters
Patent because the Letters Patent has advisedly not used the terms 'order' or
'decree' anywhere. The intention of the givers of the Letters Patent was that
the word 'judgment' should receive a much wider and more liberal interpretation
than the word 'judgment' used in the Code of Civil Procedure. At the same time,
it cannot be said that any order passed by a trial Judge would amount to a
judgment; otherwise there will be no end to the number of orders which would be
appealable under the Letters Patent.
The word 'judgment' has a concept of finality
in a broader and not a narrower sense. [2 52 G-H; 253 A-C] A judgment can be of
three kinds:
(1) A final judgment: A judgment, which
decides all the questions or issues in controversy so far as the trial Judge is
concerned and leaves nothing else to be decided is a final judgment. This would
mean that by virtue of the judgment, the suit or action brought by the
plaintiff is dismissed or decreed in part or in full. Such an order passed by
the trial Judge is a judgment within the 192 meaning of the Letters Patent and
amounts to a decree so that an appeal would lie from such a judgment to a
Division Bench. [254 D-E] (2) A preliminary judgment: A preliminary judgment
may be of two forms: (i) where the trial Judge by an order dismisses the suit
without going into the merits of the suit but only on a preliminary objection
raised by the defendant or the party opposing on the ground that the suit is
not maintainable. Since the suit is finally decided one way or the other, the
order passed by the trial judge would be a 'judgment' finally deciding the
cause so far as the trial Judge is concerned and, therefore, appealable to a
larger bench; (ii) where the trial Judge passes an order after hearing the
preliminary objections raised by the defendant relating to the maintainability
of the suit as for example, bar of jurisdiction, res judicata, a manifest
defect in the suit, absence of notice under section 80 and the like. An order
of the trial Judge rejecting these objections adversely affects a valuable
right of the defendant who, if his objections were held to be valid, is
entitled to get the suit dismissed on preliminary grounds. Such an order,
though it keeps the suit alive, decides an important aspect of the trial which
affects a vital right of the defendant and must, therefore, be construed to be
a judgment so as to be appealable to a larger bench. [254 F-H; 255 A-B] (3)
Intermediary or Interlocutory judgment: Most of the interlocutory orders which
contain the quality of finality are clearly specified in clause (a) to (w) of
Order 43 Rule
1. They are judgments within the meaning of
the Letters Patent and, therefore, appealable. There may also be interlocutory
orders not covered by Order 43 Rule 1 but possessing the characteristics and
trappings of finality because they adversely affect a valuable right of the
party or decide an important aspect of the trial in an ancillary proceeding.
Before such an order can be a judgment the adverse effect on the party
concerned must be direct and immediate rather than indirect or remote. Thus
when an order vitally affects a valuable right of the defendant it will be a
judgment within the meaning of Letters Patent so as to be appealable to a
larger bench. [255 C-E; 256 A] Every interlocutory order cannot be regarded as
a judgment but only those orders would be judgments which decide matters of
moment or affect vital and valuable rights of the parties and which work
serious injustice to the party concerned. [256 H-257 A] The following
considerations should prevail with the Court in deciding whether or not an
order is a judgment:
(1) The trial Judge being a senior court with
vast experience of various branches of law occupying a very high status, should
be trusted to pass discretionary or interlocutory orders with due regard to the
well settled principles of civil justice. Thus any discretion exercised or
routine orders passed by the trial Judge in the course of the suit which may
cause some inconvenience or, to some extent, prejudice one party or the other
cannot be treated as a judgment.[258D-E] (2) An interlocutory order, in order
to be a judgment, must contain the traits and trappings of finality either when
the order decides the question in controversy in ancillary proceeding or in the
suit itself or in a part of the proceedings. [258 G] 193 It is not the form of
adjudication which has to be seen but its actual effects on the suit or
proceedings. [243 H] If irrespective of the form of the suit or proceeding, the
order impugned puts an end to the suit or proceeding it doubtless amounts to a
judgment. [244A] If the effect of the order, if not complied with, is to
terminate the proceedings, the said order would amount to a judgment. [244 B]
An order in an independent proceeding which is ancillary to the suit, (not
being a step towards judgment) but is designed to render the judgment
effectively can also be termed as judgment within the meaning of the Letters
Patent. [244C] An order may be a judgment even if it does not affect the merits
of the suit or proceedings or does not determine any rights in question raised
in the suit or proceedings.
[244 D-E] An adjudication based on a refusal
to exercise discretion, the effect of which is to dispose of the suit, so far
as that particular adjudication is concerned, would amount to a judgment within
the meaning of the Letters Patent. [244 E-F] Some illustrations of
interlocutory orders which may be treated as judgments may be stated thus:
(1) An order granting leave to amend the
plaint by introducing a new cause of action which completely alters the nature
of the suit and takes away a vested right of limitation or any other valuable
right accrued to the defendant.
[258 B-C] (2) An order rejecting the plaint.
[258 C] (3) An order refusing leave to defend the suit in an action under Order
37, Code of Civil Procedure. [258 C] (4) An order rescinding leave to the trial
Judge granted by him under clause 12 of the Letters Patent. [258 D] (5) An
order deciding a preliminary objection to the maintainability of the suit on
the ground of limitation, absence of notice under section 80, bar against
competency of the suit against the defendant even though the suit is kept
alive. [258 D-E] (6) An order rejecting an application for a judgment on
admission under Order 12 Rule 6. [258 E-F] (7) An order refusing to add
necessary parties in a suit under section 92 of the Code of Civil Procedure.
[258 F] (8) An order varying or amending a decree. [258 F-G] (9) An order
refusing leave to sue in forma pauperis.
[258 F-G] (10) An order granting review. [258
F-G] 194 (11) An order allowing withdrawal of the suit with liberty to file a
fresh one. [258 G-H] (12) An order holding that the defendants are not
agriculturists within the meaning of the special law. [258 G-H] (13) An order
staying or refusing to stay a suit under section 10 of the Code of Civil
Procedure. [258 H] (14) An order granting or refusing to stay execution of the
decree. [259A] (15) An order deciding payment of court fee against the
plaintiff. [259 B] (per Amarendra Nath Sen J concurring) On a plain reading and
proper construction of the various provisions of the Code of Civil Procedure,
section 104 of the Code applies to the original side of the High Court of Bombay
and the impugned order of the single Judge is appealable to a Division Bench
under this section read with Order 43 thereof.
[279 H; 280 A] The right of appeal under
clause 15 of the Letters Patent is in no way curtailed or affected by section
104. By virtue of the provisions of section 104(1) a litigant enjoys the right
of preferring an appeal in respect of various orders mentioned therein, even
though such orders may or may not be appealable under clause 15 of the Letters
Patent as a judgment and the right of appeal under clause 15 remains clearly
unimpaired. [275 E-G] The argument of the respondent, based mainly on the
provisions of sections 3 and 4 of the Code of Civil Procedure that even if
various other provisions of the Code apply to the Bombay High Court, including
its original side, the provisions of section 104 read with Order 43 could not
apply to the original side of a Chartered High Court because the jurisdiction
conferred by clause 15 of the Letters Patent is a special jurisdiction is
without force. [267 B-C] That by virtue of section 1 (which provides for
territorial extent of the operation of the Code) the Civil Procedure Code
applies to the State of Maharashtra cannot be disputed. [268 E-F] Section 3
which deals with subordination of Courts to the High Court has no bearing on
the point in issue and does not create any bar to the competence and
maintainability of an appeal from an order passed by a single Judge on the
original side if the order is otherwise appealable. While dealing with any matter
on the original side of the High Court a single Judge is in no way subordinate
to the High Court. Nor again, could there be a question of his being a
subordinate to the Division Bench which hears an appeal from his judgment. If
any order passed by him on the original side is a 'judgment' within the meaning
of clause 15 of the Letters Patent an appeal lies to a Division Bench. [272
E-G] Similarly there is no force in the argument that since section 104 and
Order 43 of the Code affect the special jurisdiction conferred on the High
Court under 195 clause 15 of Letters Patent these provisions are not applicable
to the present case. [273 C-D] Section 4 of the Code cannot be said to be in
conflict with the provisions of clause 15; nor can it be said that it limits or
otherwise affects the power and jurisdiction of the High Court under clause 15.
[274 A-B] Section 4 provides that nothing in the Code shall be deemed to limit
or otherwise affect any special or local law in force or any special
jurisdiction conferred by or under any law for the time being in force. Clause
15 confers on the litigant a right to prefer an appeal from the court of
original jurisdiction to the High Court in its appellate jurisdiction. It
confers a right of appeal from a judgment of any Judge on the original side to
the High Court. Though this clause is a special provision it cannot be said
that it is intended to lay down that no appeal would lie from an order of a
single Judge on the original side even if specific provision is made in any
statute making the order appealable. By virtue of this provision any order
considered to be a judgment would be appealable. If a statute confers on the
litigant right of appeal, it cannot be said that such provision would affect
the special provisions of clause 15.
This special power is in no way affected and
is fully retained. In addition, the High Court may be competent to entertain
other appeals by virtue of specific statutory provisions. [273 C-H: 274 A] On
the contrary, the Code contains specific provisions indicating cases in which
its provisions are or are not applicable, as for example section 5, which makes
specific provision regarding the nature and manner of applicability of the Code
to revenue courts. Sections 116 to 120 clearly indicate that section 104 and
order 43 apply to the original side of the High Court. Section 104 and Order 43
which is attracted by section 104, clearly provide that an appeal shall lie
from the orders mentioned in rule 1 of Order 43.
The impugned order is one such order and is
clearly appealable. When the legislature conferred such a right on the litigant
a Court would be slow to deprive him of the statutory right merely on the
ground that the order had been passed by a single Judge on the original side of
the High Court. [274 B-E] Section 104 recognises that, apart from the orders
made appealable under the Code, there may be other orders appealable by any law
for the time being in force. It further provides that no appeal will lie from
any orders other than orders expressly provided in the Code or by any other law
in force. The right of appeal against a judgment of a single Judge on the
original side under clause 15 is a right conferred by "any other law in
force". [275 C-E] Union of India v. Mohindra Supply Co. [1962] 3 SCR 497
and Mt. Savitri Thakurain v. Savi and Anr. [1921] P.C. 80 referred to.
Mathura Sundari Dassi v. Haran Chandra Shaha,
A.I.R.
1916 Cal. 361 and Lea Badin v. Upendra Mohan
Roy Choudhary, A.I.R. 1935 Cal. 35 approved.
Vaman Raoji Kulkarni v. Nagesh Vishnu Joshi,
A.I.R.
1940 Bom. 216 overruled.
Hurrish Chander Chowdhry v. Kali Sundari
Debia, 10 I.A.
4, held in applicable.
196 Unless a right is conferred on him by
law, a litigant does not have an inherent right of appeal. An order appealable
under the C.P.C. or any other statute becomes appealable because the concerned
statute confers a right of appeal on the litigant. But yet such an order may or
may not be appealable as 'judgment' under clause 15 of the Letters Patent. An
order appealable under clause 15 as a 'judgment' becomes appealable because the
Letters Patent confers the right of appeal against such order as 'judgment'.
Similarly an order appealable under the Letters Patent may or may not be
appealable under the Code. [281 C-E] The Letters Patent, by clause 15, confers
a right of appeal against a 'judgment' and therefore an order which satisfies
the requirements of 'judgment' within the meaning of clause 15 becomes
appealable. What kind of order will constitute a 'judgment' within the meaning
of this clause and become appealable as such must necessarily depend on the
facts and circumstances of each case and on the nature and character of the
order passed. [281 F-G] A comprehensive definition of 'judgment' contemplated
by clause 15 cannot properly be given. Letters Patent itself does not define
'judgment'. The expression has necessarily to be construed and interpreted in
each case. But yet it is safe to say that if an order has the effect of finally
determining any controversy forming the subject matter of the suit itself or
any part thereto or the same affects the question of the Court's jurisdiction
or the question of limitation, it normally constitutes 'judgment' within the
meaning of clause 15 of Letters Patent.
[282 E-G]
CIVIL APPELLATE JURISDICTION: Civil Appeal
No. 662 of 1981 Appeal by special leave from the judgment and order dated the
15th January, 1981 of the Bombay High Court in Letters Patent Appeal No. 611 of
1980.
Soli J. Sorabji G.L. Sanghi, P.H. Parekh,
P.K. Shroff and Gautam Philips for the Appellant.
R.P. Khambata, B.R. Agarwala, K.P. Khambata,
Ashok C.
Mehta and Miss Halida Khatun for Respondent
No. 1.
K.K. Venugopal, R. Vaidya, M.B. Rele, Rajiv
K. Garg and N.D. Garg for Respondent No. 2.
The following judgments were delivered:
FAZAL ALI, J. This appeal by special leave is
directed against an Order dated January 15, 1981 of the Division Bench of the
Bombay High Court by which the appeal filed by the appellant against the Order
of the Trial Judge was dismissed on the ground that the appeal was not
maintainable as the Order impugned was 197 not a judgment within the meaning of
clause 15 of the Letters Patent of the High Court.
After hearing counsel for the parties at
great length we passed the following Order on April 22, 1981:- "We have
heard counsel for the parties at great length. In our opinion, the appeal
before the High Court was maintainable and the High Court should have
entertained and decided it on merits.
We, therefore, allow this appeal, set aside
the judgment dated January 15, 1981 of the Division Bench of the Bombay High
Court and remand the case to the same and decide it on merits. The High Court
will dispose of the appeal as quickly as possible. The interim order passed by
this Court on February 16, 1981 will continue until the High Court disposes of
the appeal. Liberty to parties to approach the High Court for fixing an early
date of hearing. In the circumstances, there will be no order as to costs.
Reasoned judgment will follow." We now
set out to give the reasons for the formal Order allowing the appeal which was
passed by us on the aforesaid date.
As we are not at all concerned with the facts
of the case it is not necessary to detail the same in this judgment. Suffice it
to say that the plaintiff-appellant had filed a suit on the original side of
the Bombay High Court for specific performance of a contract and prayed for an
interim relief by appointing a receiver of the suit property and injuncting the
defendant from disposing of the suit property during the pendency of the suit.
The single Judge after hearing the notice of motion dismissed the application
for appointment of receiver as also for interim injunction.
Thereafter, the plaintiff-appellant filed an
appeal before the Bombay High Court which dismissed the appeal as being
non-maintainable on the ground that the Order impugned (order of the Single
Judge) was not a judgment as contemplated by clause 15 of the letters patent of
the High Court. Hence, this appeal by special leave.
The substantial questions of law raised in
this appeal by the Counsel for the parties are as to the scope, ambit and
meaning of 198 the word 'judgment' appearing in clause 15 of the Letters Patent
of the Bombay High Court and corresponding clauses in the Letters Patent of other
High Courts. We might mention here that the significance of the word 'judgment'
assumes a special importance in those High Courts which have ordinary civil
jurisdiction depending on valuation of the suit or the action. These High
Courts are Calcutta, Bombay, Madras as also Delhi and Jammu & Kashmir. The
other High Courts do not have any ordinary civil jurisdiction but their
original jurisdiction is confined only to a few causes like probate and
administration, admiralty and cases under Companies Act.
It seems to us that the interpretation of the
word 'judgment' appearing in the Letters Patent of the High Court has been the
subject-matter of judicial interpretation by decisions rendered by various High
Courts in India.
Unfortunately, however, the decisions are by
no means consistent or unanimous. On the other hand, there appears to be a
serious divergence of judicial opinions and a constant conflict between the
High Court’s regarding the true scope, ambit and meaning of the word 'judgment'
appearing in the Letters Patent so much so that a colossal controversy has been
raging in this country for more than a century. Several tests have been laid
down by leading judgments of the Calcutta, Madras and Rangoon High Courts.
Other High Courts have either followed one or the other of the leading
judgments regarding the validity of the tests laid down by the three High
Courts. The Calcutta High Court appears to have followed the leading case of
its court in The Justices of the Peace for Calcutta v. The Oriental Gas Company
where Sir Richard Couch, C.J. had laid down a particular test on a rather
strict and literal interpretation of the Letters Patent. Later decisions of the
Calcutta High Court have followed this decision of Sir Richard Couch, C.J. with
some modifications and clarifications. The Madras High Court has taken a very
liberal view in its decision in T.V. Tuljaram Row v. M.K.R.V. Alagappa
Chettiar. The Bombay High Court seems to have consistently taken the view that
no interlocutory order can ever be said to be a judgment within the meaning of
the Letters Patent so as to be appealable from the order of a Single Judge
exercising original civil jurisdiction (hereinafter referred to as 'Trial Judge')
to a larger Bench. The Rangoon High Court speaking through Sir Page, C.J. in In
Re Dayabhai Jiwandas & Ors v. A.M.M.
Murugappa Chettiur has placed a very narrow
interpretation on 199 the term 'judgment' and has almost equated it with a
decree passed by a civil court.
This Court also has incidentally gone into
the interpretation of the word 'judgment' and has made certain observations but
seems to have decided the cases before it on the peculiar facts of each case
without settling the conflict or the controversy resulting from the divergent
views of the High Courts. This Court, however, has expressed a solemn desire
and a pious wish that the controversy and the conflict between the various
decisions of the High Courts has to be settled once for all some time or the
other. In this connection, in Asrumati Debi v. Kumar Rupendra Deb Raikot &
Ors. this Court observed as follows:- "In view of this wide divergence of
judicial opinion, it may be necessary for this Court at some time or other to
examine carefully the principles upon which the different views mentioned above
purport to be based and attempt to determine with as much definiteness as
possible the true meaning and scope of the word 'judgment' as it occurs in
clause 15 of the Letters Patent of the Calcutta High Court and in the
corresponding clauses of the Letters Patent of the other High Courts. We are,
however, relieved from embarking on such enquiry in the present case as we are
satisfied that in none of the views referred to above could an order of the
character which we have before us, be regarded as a 'judgment' within the
meaning of clause 15 of the Letters Patent".
(Emphasis supplied) Similarly, in the case of
State of Uttar Pradesh v. Dr. Vijay Anand Maharaj, this Court noticed the
divergence of judicial opinions on the subject and observed as follows :-
"The scope of the expression "judgment" came under the judicial
scrutiny of the various High Courts, there is a cleavage of opinion on that
question.
... ... ... ...
200 The foregoing brief analysis of judgment
shows that the definition given by the Madras High Court is wider than that
given by the Calcutta and Nagpur High Courts. It is not necessary in this case
to attempt to reconcile the said decision or to give a definition of our own, for
on the facts of the present case the order of Mehrotra, J., would be a judgment
within the meaning of the narrower definition of that expression".
After, however, analysing the various
judgments this Court did not think it necessary to give any definition of its
own and refrained from giving a final decision on the question as to the scope
and meaning of the word 'judgment' appearing in the Letters Patent. Mudholkar,
J. in his concurring judgment expressly refrained from expressing any opinion
on the subject.
Again in a later decision in Shankarlal
Aggarwal & Ors. v. Shankarlal Poddar & Ors. the conflict in the various
decisions of various High Courts was again noticed and this Court observed as
follows:
"There has been very wide divergence of
opinion between the several High Court in India as to the content of the
expression 'judgment' occurring in Cl. 15 of the Letters
Patent................We consider that occasion has not arisen before us either
since in view of the construction which we have adopted of s. 202 of the Indian
Companies Act the scope of the expression 'judgment' in the Letters Patent does
not call for examination or final decision".
(Emphasis ours) There are other decisions of
this Court also which have touched the fringes of the question but did not
choose to give a final verdict on the vexed question and preferred to decide
the cases on their own facts. We shall briefly refer to these decisions at a
later stage of this judgment.
With due deference to the desire of this
Court to settle the controversy in question once for all, the very able,
detailed and lengthy arguments advanced by counsel for the parties on various
shades, features and aspects of the interpretation of the word 'judgment'
appearing in the Letters Patent, the serious legal controversy raging in this
country for over a century between the various High Courts resulting in an ir-reconciliable
element of judicial uncertainty in the interpretation of the law and further
having regard to the huge backlog and accumulation of arrears in the High
Courts, we are clearly of the opinion that the time has now come when the
entire controversy on the subject should be set at rest and an authoritative
pronouncement on the matter may be given by us so as to maintain complete
consistency in deciding the matter by the High Courts whenever it arises.
Mr. Sorabjee, learned counsel for the
appellants has submitted four important points of law dwelling on the various facts
of the question at issue:
(1) It was contended that the provisions of
s. 104 read with order 43 Rule 1 of the Code of Civil Procedure, 1908
(hereinafter referred to as 'Code of 1908') does not impose any bar on the
trial held by the Trial Judge and thus by virtue of these provisions the order
impugned (the order of the trial court refusing to appoint Receiver and to
grant injunction) falls squarely under clauses (r) and (s) of order 43 Rule 1
of the Code of 1908 and is therefore appealable to a larger Bench.
In amplification of this contention it was
submitted that the Trial Judge is governed by the procedure prescribed by the
Code of 1908 in all matters and hence there is no reason why order 43 Rule 1
should not apply to any order passed by the Trial Judge under any of the
clauses of order 43 Rule 1 read with s. (2) Even if we assume that the Letters
Patent was a special law which overrides the provisions of the Code of Civil
Procedure, the power under s. 104 read with order 43 Rule 1 is in no way
inconsistent with cl. 15 of the Letters Patent.
Section 104 merely provides an additional
remedy and confers a new jurisdiction on the High Court without at all
interfering with or overriding the existing provisions of the Letters Patent.
202 (3) Even if order 43 Rule 1 did not apply
in terms, the orders which have been mentioned as being appealable to a larger
Bench could form valuable guidelines for the Court in arriving at the
conclusion that such orders amount to judgments of the Single Judge as contemplated
by the Letters Patent.
(4) Even if s. 104 read with order 43 Rule 1
does not apply, an order refusing to appoint a receiver or to grant injunction
has the trappings and attributes of finality as it affects valuable rights of
the plaintiff in an ancillary proceeding though the suit is kept alive and
would, therefore, amount to a judgment within the meaning of the Letters
Patent.
The learned counsel for the respondents while
countering the arguments of Mr. Sorabjee submitted the following propositions:
(1) S. 104 read with order 43 Rule 1 could
not apply to the original trial by the Trial Judge which is governed by the
Letters Patent alone.
(2) It was further argued that the forum for
an appeal contemplated by s. 104 is the same as that for appeals under sections
96 to 100 of the Code of 1908, that is to say, appeals from the courts in the
mofussil (district courts) to the High Court and it has no application to
internal appeals within the High Court. In other words, the forum under which
an appeal lies from one Judge of the High Court to a larger Bench is not a
forum contemplated by s. 104 at all but is created by the Letters Patent.
(3) If s. 104 of the Code of 1908 is held to
be applicable to proceedings before the Trial Judge of the High Court certain
strange anomalies will arise, viz., where an appeal lies from a district court
under order 43 Rule 1 before a Single Judge, a further appeal will have to lie
before a larger Bench against the order of the Trial Judge although s. 104
prevents a second appeal against miscellaneous orders under order 43 Rule 1 and
permits only one appeal. This will, therefore, lead to an inconsistent and
anomalous position.
203 (4) The word 'judgment' should be
strictly construed as was done by Sir Richard Couch, C.J. in Oriental Gas
Company's case (supra) so as to include only those orders of the Trial Judge
which are of a final nature and effectively decide the controversy of the
issues in dispute.
We would first deal with the point relating
to the applicability of s. 104 read with order 43 Rule 1 of the Code of 1908
because it seems to us that the arguments of Mr. Sorabjee on this score are
well-founded and must prevail. Moreover, some of the decisions of this Court,
those of the Privy Council and other High Courts support the propositions
adumbrated by Mr. Sorabjee.
In order, however, to appreciate the
applicability of s. 104 read with Order 43 Rule 1, it may be necessary to
examine some important provisions of the Code of Civil Procedure as also the
previous history which led to the enactment of s. 104 by the Code of 1908. It
appears that prior to the Code of 1908 in the earlier Code of Civil Procedure
there were two kinds of appeals to the High Court- (1) appeals against
judgments and decrees of the Trial Judge, and (2) appeals against orders,
either interlocutory or quasi-final, passed by the court during the pendency of
the suit or proceedings. In the Civil Procedure Code of 1877 the section
corresponding to order 43 Rule 1 of the Code of 1908 was s. 588 which provided
for appealable orders under clauses (a) to (t). Section 588 of the Code of 1877
provided that an appeal from any order specified in s. 588 shall lie to the
High Court or when an appeal from any other order is allowed by the Chapter it
would lie to the Court to which an appeal would lie from the decree in the suit
in respect of which such order was made or when such order is passed by a court
other than the High Court, then to the High Court. A perusal of ss. 588 and 589
of the Code of 1877 would clearly show that the statute made no distinction
between appeals to the High Court’s from the district courts in the mofussils
or internal appeals to the High Court’s under the Letters Patent. Section 591
clearly provided that except the orders mentioned in s. 588 no further appeal
could lie from any order passed by any court in exercise of its original or
appellate jurisdiction. Section 591 may be extracted thus:- "591. No other
appeal from orders; but error therein may be set forth in memorandum of appeal against
decree.
204 "Except as provided in this chapter,
no appeal shall lie from any order passed by any Court in the exercise of its
original or appellate jurisdiction but if any decree be appealed against, any
error, defect or irregularity in any such order, affecting the decision of the
case, may be set forth as a ground of objection in the memorandum of
appeal".
In other words, the position was that while
the statute provided only for appeals against orders, all other appeals could
only be against a decree passed by the court concerned. The statute there for,
did not contemplate any other appeal except those mentioned in ss. 588 and 591.
The Code of 1877 was later on replaced by the
Code of 1882 but the provisions remained the same. In view of the rather vague
and uncertain nature of the provisions of ss. 588 to 591 a serious controversy
arose between the various High Courts regarding the interpretation of s. 588.
The Bombay and Madras High Courts held that under cl. 15 of the Letters Patent
of the said High Courts, an appeal could lie only from orders passed under s.
588 and not even under the Letters Patent. In Sonba'i v. Ahmedbha'i Habibha'i a
Full Bench of the Bombay High Court held that under cl. 15 of the Letters
Patent an appeal to the High Court from an interlocutory order made by one of
the Judges lies only in those cases in which an appeal was allowed under the
Code of Civil Procedure, that is to say, under ss. 588 and 591 of the Code of
1877. The Madras High Court in Rajgopal & Ors (in Re: L.P.A. No. 8 of 1886
took the same view. Then came the decision of the Privy Council in the case of
Hurrish Chunder Chowdry v. Kali Sundari Debia which while considering s. 588
made the following observations:- "It only remains to observe that their
Lordships do not think that s. 588 of Act X of 1877, which has the effect of
restricting certain appeals is from one of the Judges of the Court to the full
Court." (Emphasis ours) 205 This judgment gave rise to a serious conflict
of opinions in the High A Courts in India. The High Courts of Calcutta, Bombay
and Madras held that in view of the decision of the Privy Council in the
aforesaid case, even though an order may not have been appealable under s. 588
it could be appealable provided it was a judgment within the meaning of cl. 15
of the Letters Patent of the respective High Courts.
Toolsee Money Dassee v. Sudevi Dassee,,
Secretary of State v. Jehangir; Chappan v. Modin Kutti, However, the Allahabad
High Court in Banno Bibi v. Mehdi Husain held that if an order was not
appealable under ss. 588 and 591 of the Code of 1877 it could not be appealed
against even under the Letters Patent of the High Court. This view was affirmed
by a later decision of the same High Court in Muhammad Naim-ul- Lah Khan v.
Ihsan-ul-Lah Khan.
With due respect we would like to point out
that the pointed and terse observations of the Privy Council did not leave any
room for any doubt or speculation in the matter.
While construing s. 588, the Judicial
Committee in Hurrish Chunder Chowdry's case (supra) had made it clear that
appeals would lie under s. 588 to the High Court and the section did not
contain any restriction to the effect that appeal against the orders of the
Trial Judge mentioned in s.
588 would not lie to a larger Bench of the
High Court. In other words, the Privy Council intended to lay down clearly that
s. 588 did not affect nor was it inconsistent with the provisions of the
Letters Patent and hence those orders of the Trial Judge which fell beyond s.
588 could be appealable to a larger Bench under the Letters Patent if those
orders amounted to judgment within the meaning of cl. 15 of the Letters Patent.
Therefore, the views taken by the Calcutta, Bombay and Madras High Courts,
referred to above, were undoubtedly correct. At any rate, since a fresh
controversy had arisen, the legislature stepped in to settle the controversy by
enacting the new s. 104 in the Code of 1908.
Section 104 made it clear that appeals
against orders mentioned in order 43 Rule 1 were not in any way inconsistent
with the Letters Patent and merely provided an additional remedy by allowing
appeals against miscellaneous Orders passed by the Trial Judge to a larger
Bench. In other words, the legislature gave full statutory effect to the views
of the Calcutta, 206 Bombay and Madras High Courts. Even after the introduction
of s. 104, the conflict between the various High Courts still continued as to
whether or not s. 104 would apply to internal appeals in the High Court. That
is the question which we shall now discuss.
To begin with, it is not disputed that a
Trial Judge has to follow the entire procedure laid down by the Code of 1908
starting from the presentation of the plaint right up to the delivery of the
judgment. The only difference in the assumption of jurisdiction by the High
Court is that a suit of a particular valuation has to be instituted in the High
Court rather than in the District court. Secondly, it is indisputable that any
final judgment that the Trial Judge passes deciding the suit one way or the
other amounts to a decree and under the provisions of the Letters Patent an
appeal lies to a larger Bench which normally is a Division Bench as provided
for under the Rules made by various High Courts. Thirdly, the Letters Patent
itself does not define the term 'judgment' and has advisedly not used the word
'decree' in respect of any judgment that may be given by the Trial Judge.
Section 5 of the Code of 1908 may be extracted thus:
"5. Application of the Code to Revenue
Courts:
(1) Where any Revenue Courts are governed by
the provisions of this Code in those matters of procedure upon which any
special enactment applicable to them is silent the State Government may, by
notification in the Official Gazette, declare that any portions of those pro
visions which are not expressly made applicable by this Code shall not apply to
those Courts, or shall only apply to them with such modifications as the State
Government may prescribe.
(2) "Revenue Court" in Sub-section
(1) means a court having jurisdiction under any local law to entertain suits of
other proceedings relating to the rent, revenue or profits of land used for
agricultural purposes, but does not include a Civil Court having original
jurisdiction under this Code to try such suits or proceedings as being suits or
proceedings of a civil nature " The importance of this section is that
wherever the provisions of the Code of Civil Procedure are sought to be
excluded by any special enactment which may be silent on the point, the State
207 Government can by notification apply the provisions of the Code to Revenue
courts. A bare perusal of this section would clearly reveal that excepting
Revenue courts all other Civil courts would normally be governed by the
provisions of the Code of Civil Procedure in the matter of procedure. Section
4(1) of the Code of 1908 which is a saving provision clearly provides that in
the absence of any specific provision to the contrary the provisions of the
Code does not limit or affect any special or local law. Thus, the test contained
in s. 4 is not applicable in the instant case because even if the Letters
Patent of the High Court be deemed to be a special law as contemplated by s. 4,
the provisions of s. 104 do not seek to limit or affect the provisions of the
Letters Patent.
This now takes us to s. 104 of the Code of
1908, the relevant portion of which may be extracted thus:- "104.(1) An
appeal shall lie from the following orders, and save as otherwise expressly
provided in the body of this Code or by any law for the time being in force,
from no other orders:- (a) to (f) annulled;
(ff) an order under section 35-A (g) an order
under section 95;
(h) an order under any of the provisions of
this Code imposing a fine or directing the arrest or detention in the civil
prison of any person except where such arrest or detention is in execution of a
decree;
(1) any order made under rules from which an
appeal is expressly allowed by rules:
(2) No appeal shall lie from any order passed
in appeal under this section." Thus by the force of s. 104 all appeals as
indicated in the various clauses of order 43 Rule 1 viz. (a) to (w) would lie
to the appellate court. Section 105 clearly provides that no appeal shall lie
from any order of a Court made in the exercise of its original or appellate 208
jurisdiction except according to the procedure laid down by the Code. The
relevant part of s. 105 (1) may be extracted thus:
"105. (1) Save as otherwise expressly
provided no appeal shall lie from any order made by a Court in the exercise of
its original or appellate jurisdiction; but where a decree is appealed from,
any error, defect or irregularity in any order, affecting the decision of the
case, may be set forth as a ground of objection in the memorandum of
appeal." Finally, order, 49 Rule 3 expressly exempts matters contained in
clauses (1) to (6) of Rule 3 from the operation of the extraordinary original
civil jurisdiction of the chartered High Courts, that is to say, the
jurisdiction conferred on the High Court by the Letters Patent. The relevant portion
of this provision may be extracted thus:
"O. 49.
(3) The following rules shall not apply to
any Chartered High Court in the exercise of its ordinary or extraordinary
original civil jurisdiction, namely:- (1) rule 10 and rule 11, clauses (b)
& (c), of order VII;
(2) rule 3 of order X;
(3) rule 2 of order XVI;
(4) rules 5, 6, 8, 9, 10, 11, 13, 14, 15, and
16 (so far as relates to the manner of taking evidence) of Order XVIII;
(5) rules 1 to 8 of order XX; and (6) rule 7
of order XXXIII (so far as relates to the making of a memorandum);
and rule 35 of order XLI shall not apply to
any such High Court in the exercise of its appellate jurisdiction" It may
be pertinent to note that although a number of rules have been exempted from
the operation of the Code, order 43 Rule 209 1 and the clauses thereunder have
not been mentioned in any of these clauses.
Thus, a combined reading of the various
provisions of the Code of Civil Procedure referred to above lead to the
irresistible conclusion that s. 104 read with order 43 Rule 1 clearly applies
to the proceedings before the Trial Judge of the High Court. Unfortunately,
this fact does not appear to have been noticed by any of the decisions rendered
by various High Courts.
We might further point out that s. 117 of the
Code of 1908 expressly applies the provisions of the Code to High Courts also.
Section 117 may be extracted thus:
"117. Save as provided in this Part or
in Part X or in rules, the provisions of this Code shall apply to such High
Courts".
We find ourselves in complete agreement with
the arguments of Mr. Sorabjee that in the instant case s. 104 read with Order
43 Rule 1 does not in any way abridge, interfere with or curb the powers
conferred on the Trial Judge by cl. 15 of the Letters Patent. What s. 104 read
with order 43 Rule 1 does is merely to give an additional remedy by way of an
appeal from the orders of the Trial Judge to a larger Bench. Indeed, if this is
the position then the contention of the respondent that s. 104 will not apply
to internal appeals in the High Court’s cannot be countenanced.
In fact, the question of application of the
Code of Civil Procedure to internal appeals in the High Court does not arise at
all because the Code of Civil Procedure merely provides for a forum and if order
43 Rule 1 applies to a Trial Judge then the forum created by the Code would
certainly include a forum within the High Court to which appeals against the
judgment of a Trial Judge would lie. It is obvious that when the Code
contemplates appeals against orders passed under various clauses of order 43
Rule 1 by a Trial Judge, such an appeal can lie to a larger Bench of the High
Court and not to any court subordinate to the High Court. Hence, the argument
that order 43 Rule 1 cannot apply to internal appeals in the High Court does
not appeal to us although the argument has found favour with some of the High
Courts.
We might also reiterate that prior to the
Code of 1908, in the Code of 1877 an identical provision like order 43 Rule 1
also existed in the shape of s. 588 which was absolutely in the same terms 210
as order 43 Rule 1 and its various clauses. Of course, section 104 was
conspicuously absent from the Codes of 1877 or 1882. As indicated earlier, the
question of the application of s. 588 (now Order 43 Rule 1) was considered as
early as 1882 in Hurrish Chunder Chowdary's case (supra) where the Privy
Council in very categorical terms observed thus:- "It only remains to
observe that their Lordships do not think that s. 588 of Act X of 1877, which has
the effect of restricting certain appeals, applies to such a case as this,
where the appeal is from one of the Judges of the Court to the full
Court." We have already shown that a perusal of these observations leaves
no room for doubt that the Privy Council clearly held that s. 588 undoubtedly
applied to appeal from one of the Judges of the High Court to the Full Court,
which really now means the Division Bench constituted under the Rules. In spite
of the clear exposition of the law on the subject by the Privy Council it is
rather unfortunate that some High Courts have either misinterpreted these
observations or explained them away or used them for holding that s.588 does
not apply to High Courts. We shall deal with those judgments and point out that
the view taken by the High Court’s concerned is not at all borne out by the
ratio decidendi of the Privy Council. So far as the applicability of s. 588 to
proceedings in the High Court’s is concerned, in a later decision the Privy
Council reiterated its view in unmistakable terms. In Mt. Sabitri Thakurain v.
Savi & Anr., their Lordships observed as follows:
"Section 15 of the Letters Patent is
such a law and what it expressly provides, namely an appeal to the High Court's
appellate jurisdiction from a decree of the High Court in its original ordinary
jurisdiction, is thereby saved. Thus regulations duly made by orders and Rules
under the Code of Civil Procedure, 1908 are applicable to the jurisdiction
exercisable under the Letters Patent, except that they do not restrict the
express Letters Patent appeal".
Though not directly, some observations made
by this Court also support the consistent view taken by the Privy Council that
order 43 Rule 1 applies to the original proceedings before the Trial 211 Judge.
In Union of India v. Mohindra Supply Co., this Court made the following
observations:- "The intention of the legislature in enacting sub- s. (1)
of s. 104 is clear: the right to appeal conferred by any other law for the time
being in force is expressly preserved. This intention is emphasised by s. 4
which provides that in the absence of any specific provision to the contrary
nothing in the Code is intended to limit or otherwise affect any special
jurisdiction or power conferred by or under any other law for the time being in
force. The right to appeal against judgments (which did not amount to decrees)
under the Letters Patent, was therefore not affected by s. 104 (1) of the Code
of Civil Procedure, 1908".
Thus, this Court has clearly held that the
right to appeal against judgments under the Letters Patent was not affected by
s. 104 (1) of the Code of 1908 and the decision therefore fully supports the
argument of Mr. Sorabjee that there is no inconsistency between the Letters
Patent jurisdiction and s. 104 read with order 43 Rule 1 of the Code of 1908.
Similarly, in Shankarlal Aggarwal's case (supra) this Court while construing
the provisions of s. 202 of the Indian Companies Act observed as follows:-
"There was no doubt either that most of the orders or decisions in winding
up would not be comprehended within the class of appealable orders specified in
s.
104 or O. 43 r.1. If therefore the contention
of the respondent were accepted it would mean that in the case of orders passed
by the District Courts appeals would lie only against what would be decrees
under the Code as well as appealable orders under s. 104 and o. 43 r.1. and
very few of the orders passed in the Courts of the winding up would fall within
these categories. On the other hand, the expression "judgment" used
in cl. 15 is wider. The learned Judge therefore rejected a construction which
would have meant that the same orders passed by District Courts and by a Single
Judge of a High Court would be subject to different rules as to
appealability".
There is yet another aspect of the matter
which shows that s. 104 merely provides an additional or supplemental remedy by
way 212 of appeal and, therefore, widens rather than limits the original jurisdiction
of the High Court. For instance, in this very case with which this Court was
dealing, an order passed under s. 202 of the Companies Act was appealable to a
larger Bench and yet it was argued that the order being of an interlocutory
nature would not be a judgment and therefore no appeal would lie to the
Division Bench. This contention was negatived by the Supreme Court and it was
held that against the order passed by a Trial Judge under the Companies Act, an
appeal would lie to the Division Bench. On a parity of reasoning, therefore, s.
104 read with order 43 Rule 1 expressly authorises and creates a forum for
appeal against orders falling under various clauses of order 43 Rule 1, to a
larger Bench of the High Court without at all disturbing, interfering with or
overriding the Letters Patent jurisdiction. There are a number of other Acts
also which confer additional powers of appeal to a larger Bench within the High
Court against the order of a Trial Judge.
Take, for instance, a case under the
Arbitration Act.
Suppose in a suit the matter is referred to
arbitration and after the award is filed by the Arbitrator certain objections
are taken, under s. 39 of the Arbitration Act an appeal would lie to a Larger
Bench from the order of a Single Judge disposing of the objections taken by the
parties against the award. Section 39 runs thus:
"39. Appealable orders.-(1) An Appeal
shall lie from the following orders passed under this Act (and from no others)
to the Court authorised by law to hear appeals from original decree of the
Court passing the orders; An Order- (i) superseding an arbitration;
(ii) on an award stated in the form of a
special case;
(iii)Modifying or correcting an award;
(iv) filing or refusing to file an
arbitration agreement;
(v) staying or refusing to stay legal
proceedings where there is an arbitration agreement;
(vi)setting aside or refusing to set aside an
award:
Provided that the provisions of this section
shall not apply to any order passed by a small Cause Court.
213 (2) No second appeal shall lie from an
order passed in appeal under this section, but nothing in this section shall
affect or take away any right to appeal to the Supreme Court".
It cannot be contended by any show of force
that the Order passed by the Trial Judge being an interlocutory order, no
appeal would lie to the Division Bench or that the provisions of the
Arbitration Act giving a right of appeal to a litigant from the order of a
Trial Judge to the Division Bench in any way fetter or override the provisions
of the Letters Patent.
There are, however, a number of decisions of
the various High Courts which have held that the provisions of order 43 Rule 1
clearly apply to a Trial Judge. As early as 1872, the Bombay High Court in
Sonba'i's case (supra) held that in regard to appeals against orders of the
Trial Judge the practice of the Bombay High Court has been that in all matters
the provisions of the Code concerned would be applicable. In this connection,
Sargent, Acting C.J., speaking for the court observed as follows:- "the
word "judgment" may be taken to include any preliminary or
interlocutory judgment, decree, order, or sentence within the meaning of clause
40, and effect may be given to section 37 by limiting the orders open to appeal
to those orders which are expressly declared appealable in the various sections
of the Civil Procedure Code, or in other words by incorporating the provisions
of the Civil Procedure Code relating to appeals with Sec. IS of the Letters
Patent, and holding the word 'judgment' to mean all judgments and orders which
are appealable under the provisions of the Civil Procedure Code".
This case was followed by a Division Bench of
the Madras High Court which clearly held that an order passed under s.
592 was controlled by s. 588. We have already
pointed out that in the Code prior to 1882, order 43 Rule 1 appeared in the
shape of s. 588 and even under order 43 Rule 1 an order rejecting an appeal in
forma pauperis is not appealable and does not appear in any of the clauses of
order 43 Rule 1.
The Madras High Court in Rajgopal's case
(supra), relying on the decision of the Bombay High Court, observed thus:
214 "An order passed under s. 592 of the
Code of Civil Procedure rejecting an appeal in forma pauperis is not appealable
under s. 588, which provides that no appeal shall lie from orders not specified
in that section.
It has already been decided in Achaya v.
Ratnavelu (ILR 9 Mad. 253) that s. 15 of the Letters Patent is controlled by a
similar section in the Civil Procedure Code, which provided that an order shall
be final, and that enactments to such effect are not beyond the legislative
powers of the Governor-General in Council".
Thus, even in the earlier times the High
Court had veered round to the view that s. 588 would be applicable to the High
Courts also even in respect of internal appeals in, the High Court.
Similarly, in Ruldu Singh v. Sanwal Singh,
Shadi Lal, C.J. Speaking for the court observed thus;- Now, section 588 of the
old Code, which has now been replaced by section 104 and Order XLIII, rule of
the new Code, enacted that an appeal lay from the orders specified in that
section and from no other orders"; and it was consequently decided by a
Full Bench of that Court in Muhammad Naim-ul-Lah Khan v. Ihsan Ullah Khan
(1892) ILR 14 All. 226 that clause 10 of the Letters Patent was controlled in
its operation by section 588, and that no appeal lay under the Letters Patent
from an order made under the Code if it was not one of the orders enumerated in
that section.
Section 104 of the new Code, however,
expressly saves the right of appeal otherwise provided by 'any law for the time
being in force'...It seems to us that the object of the Legislature in enacting
sub-section (2) was to make it clear that there was no second appeal under the
Code from the orders specified in Sub-section (1) of section 104, and that
sub-section (2) was not intended to override the express provisions of the
letters patent." The Lahore High Court relied on the decision of the Privy
Council in Hurrish Chunder Chowdrys case (supra). The High Court further held
that s. 104 does not in any way take away the 215 right of appeal conferred by
the Letters but Patent of the High Court merely bars a second appeal from
orders passed under O.43 R. 1 to Division Bench. A contrary view was taken by
the Allahabad High Court in Ram Sarup v. Kaniz Ummehani where the following
observations were made:- "It may, however, be conceded that this saving
clause does not occur in sub-section (2) of section 104. But under the
corresponding section 588 of the old Code, where the words were "orders
passed in appeal under this section shall be final", their Lordships of
the Privy Council in Hurrish Chunder Chowdhry v. Kalisunduti Debi (1882) ILR 9
Cal. 482 observed that section 588, which had the effect of restricting certain
appeals, did not apply to a case where the appeal is from one of the Judges of
the High Court to the Full Court to the full Court.. In any case section 104
(2) does not contain any express provision which would suggest that the
provisions of the Letters Patent have been abrogated. We accordingly hold that
under clause 10 of the Letters Patent an appeal lies from the order of a single
Judge passed in appeal." With due deference to the Hon'ble Judges we are
of the opinion that the decision of the Allahabad High Court on this point is
based on a serious misconception of the legal position. It is true that s. 104
was introduced by the Code of 1908 and the aforesaid section, as we have
already indicated, clearly saved the Letters Patent jurisdiction of the High
Court. From this, however, it does not necessarily follow that the restriction
that there is no further appeal from the order of a Trial Judge to a larger
Bench would be maintainable or permissible. In the first place, once s. 104
applies and there is nothing in the Letters Patent to restrict the application
of s. 104 to the effect that even if one appeal lies to the Single Judge, no
further appeal will lie to the Division Bench. Secondly, a perusal of clause 15
of the Letters Patent of the Presidency High Courts and identical clauses in
other High Courts, discloses that there is nothing to show that the Letters
Patent ever contemplated that even after one appeal lay from the subordinate
court to the Single Judge, a second appeal would again lie to a Division Bench
of the Court. All that the Letters Patent provides for is that where the Trial
Judge passes an order, an appeal against the judgment of the said Trial Judge
would 216 lie to a Division Bench. Furthermore, there is an express provision
in the Letters Patent where only in one case a further or a second appeal could
lie to a Division Bench from an appellate order of the Trial Judge and that is
in cases of appeals decided by a Single Judge under s. 100 of the Code of Civil
Procedure. Such a further appeal would lie to a Division Bench only with the
leave of the court and not otherwise. The relevant portion of cl. 15 of the
Letters Patent may be extracted thus:
"And we do further ordain that an appeal
shall lie to the said High Court of Judicature at Madras, Bombay, Fort William
in Bengal from the judgment.. Of one Judge of the said High Court or one Judge
of any Division Court, pursuant to section 108 of the Government of India Act,
and that notwithstanding anything hereinbefore provided, an appeal shall lie to
the said High Court from a judgment of one Judge of the said High Court or one
Judge of any Division Court, pursuant to section 108 of the Government of India
Act, made (on or after the first day of February, 1929) in the exercise of
appellate jurisdiction in respect of a decree or order made in the exercise of
appellate jurisdiction by a Court subject to the superintendence of the said
High Court where the Judge who passed the judgment declares that the case is a
fit one for appeal." A perusal of the Letters Patent would clearly reveal
two essential incidents-(1) that an appeal shall lie against any order passed
by the Trial Judge to a larger Bench of the same High Court, and (2) that where
the Trial Judge decides an appeal against a judgment or decree passed by the
district courts in the mofussil, a further appeal shall lie only where the
judge concerned declares it to be a fit one for appeal to a Division Bench.
Thus, the special law, viz., the Letters Patent, contemplates only these two
kinds of appeals and no other. There is, therefore, no warrant for accepting
the argument of the respondent that if order 43 Rule 1 applies, then a further
appeal would also lie against the appellate order of the Trial Judge to a
Division Bench.
As this is neither contemplated nor borne out
by the provisions of the Letters Pantent extracted above, the contention of the
respondent on this score must be overruled.
A further second appeal Lying to a Division
Bench from an appellate order of the Trial Judge passed under order 43 Rule 1
is wholly foreign to the scope and spirit of the Letters Patent. Un- 217
fortunately however, the Allahabad High Court in Ram Sarup's case (supra)
refused to follow a Division Bench decision in Piari Lal v. Madan Lal and also
tried to explain away the Full Bench decision in Ram Sarup's case (supra) where
it was clearly pointed out that in such cases no further appeal would lie to
the Division Bench under the Letters Patent.
The distinction drawn by the Allahabad High
Court regarding the application of s. 104 is a distinction without any
difference. Sir John Edge, C.J., in Muhammad Naim-ul-lah Khan's case (supra)
dealing with this aspect of the matter observed thus:- "It appears to me
that the Code of Civil Procedure (Act No. XIV of 1882), as did Act No. X of
1877, contemplates a High Court in two aspects. It contemplates a High Court
doing the ordinary work of a Court of original and appellate jurisdiction;
having the necessary powers of review and revision in certain cases and certain
other powers such as are generally found vested in the Courts of the importance
of High Courts...whatever those powers may be, it is quite clear to my mind
that the power conferred on a High Court under Chapter XLV of the Code of Civil
Procedure are special powers and entirely distinct from the ordinary powers
required by the High Court in the carrying on of its ordinary judicial
business." and Mahmood, J. Observed thus:
"To hold then that where this statute of
ours, namely, our present Code of Civil Procedure, declares a decree or order
non-appealable, such decree or order can be made the subject of consideration
by the whole of this Court under the Letters Patent, is to hold that wherever
no appeal lies to this Court the ceremony of presenting it to this Court to a
Single Judge of this Court who would undoubtedly reject the appeal, makes it
the subject of consideration by a Bench of the Court." The other Judges
agreed with the view taken by the Chief Justice and Mahmood, J. In Piari Lal's
case (supra) which was decided after s. 104 was introduced in the Code of 1908,
the following observations were made:- 218 "A preliminary objection has
been taken to the hearing of the appeal based on the Full Bench decision in the
case of Muhammad Naimullah Khan v. Ihsan-ullah Khan (1892) ILR 14 All. 226.
Section 104 of the Code of Civil Procedure provides for the cases in which an
appeal shall lie against an "order'. Clause (ii) provides that "No
appeal shall lie from any order passed in appeal under this section". The
contention of the respondent in the preliminary objection is that no second
appeal lies and reliance is placed upon the authority quoted to show that even
a Letters Patent appeal is not permissible. We are of course bound by the Full
Bench ruling of this Court. It is contended, however, that the words in section
588 of the Code of Civil Procedure, which was in force when the decision in the
Full Bench case was given, differed from the words of the present Code. The
only difference is that in the old Code the words were "The order passed
in appeals under this section shall be final", whereas in the present Code
the words are "No appeal shall lie".
We cannot see how the change in the words can
in any way help the appellant. Possibly the reason for the change is that under
the words in the old Code it might have been argued that even a "revision"
or a "review of judgment" would not lie against an order passed by an
appellate court. We think the preliminary objection must prevail and we
accordingly dismiss the appeal with costs." Thus, in these two cases it
was clearly held that where a Trial Judge had passed an order in an appeal
against an order passed by the district judge under order 43 Rule 1, a further
appeal under the Letters Patent was not maintainable. This view is fully
supported by the express language in which clause 15 of the Letters Patent has
been couched, as referred to above. Thus the latter decision of the Allahabad
High Court in Ram Sarup's case (supra) was clearly wrong in holding that an
appeal under the Letters Patent would lie even against an appellate order of
the Trial Judge passed under O.43, R. 1 even though it was prohibited by s. 104
(2) of the Code.
Similarly, in Chappan's case (supra) the
Court on an interpretation of s. 588 (which now corresponds to the present
Order 43 Rule 1 clearly held that an appeal would lie to the High Court 219
against the orders contemplated in various clauses of s. 588 of the Code of
1877. The Court held thus:- "The result of this judgment (so far as it
applies to the question before us) appears to me to come to this, that if the
order made by a single Judge only amounts to an order such as is intended by
chapter XLII of the Code, it is not appealable unless it is within section
588." The Madras case heavily relied on the decision of the Privy Council
in Hurrish Chunder Chowdry's case (supra). In Lea Badin v. Upendra Mohan Roy
Chaudhury & Ors. while criticising the judgment of Sir Richard Couch, C.J.
in The Justice of the Peace for Calcutta (supra) the Court as an alternative
argument clearly held that order 43 Rule 1 would apply pro tanto to the Trial
Judge and on this ground also the order would be appealable to a Division
Bench. In this connection, the celebrated jurist Sir Manmatha Nath Mookerjee,
J. Observed as follows:- "But there is another and a far simpler ground on
which it must be held that an appeal is competent. The order in the present
case is one for which a right of appeal is provided in cl. (s) of r. 1 of or 43
of the Code. Under the present Code (Act V of 1908) it cannot be contended that
the Code and the Rules made under it do not apply to an appeal from a learned
Judge of the High Court " Another important decision regarding the
applicability of order 43 Rule 1 to an order passed by the Trial Judge was
rendered by a Full Bench in Mathura Sundari Dassi v. Haran Chandra Shaha &
Ors. where Sanderson, C.J. Observed thus:- "By the terms of s. 117, the
Code is made applicable to the High Court, and O. 43, R. 1 gives a right of
appeal in the very case under discussion. But it is said that this Code and the
rules made under it do not apply to an appeal from a learned Judge of the High
Court. I cannot follow that argument. It is part of the defendant's case that
O.9 R. 8 applies. That order is in effect a part of the Civil Procedure Code.
It seems to me strange that the plaintiff 220
should be subjected to O. 9, R. 8 and be liable to have his suit dismissed for
want of appearance, yet when he has had his suit dismissed under one of the
rules of the Code and wants to call in aid another of the rules which-when his
application for reinstatement has been refused-gives him a right of appeal
against that refusal, he is met with the argument that he cannot call in aid
that rule because there is no appeal from the learned Judge of the High Court
under the Civil Procedure Code. I think this is not a true view or a reasonable
construction to put upon the Code and the rules made under it. In my judgment,
the Code and the rules do apply and the plaintiff has a right of appeal."
and Woodroffo 'J' made similar observations:- "Whether or not as a question
of jurisdiction an appeal lies under clause 15 of the Letters Patent in a case
in which an appeal is allowed under the Code, I think it may be said that there
are prima facie grounds for holding that an appeal should be held to lie under
the Letters Patent where it is allowed under the Code;
for the fact that the Legislature has in the
Code allowed an appeal in a particular case, a affords to my mind prima facie
grounds for supposing that case is of a class which this Court considers
appealable under its Letters Patent.. Looking at the nature of the order
appealed from, I think I should hold that it is appealable as a 'judgment'
under the Letters Patent." and Mookerjee, J. Observed thus:- "The
term "Rule" which finds a place in s. 117 is defined in clause 18 of
s. 2 of the Code to mean "a rule contained it the First Schedule or made
under s. 122 or s. 125." our attention has not been drawn to any such rule
which makes O. 43, R, 1, clause (c) inapplicable. On the other hand, O. 49, R.
3 which excludes the operation of other rules, lends support to the contention
of the appellant that O. 43, R. 1 clause (c) is applicable to the present
appeal.
"S. 104 of the Code of 1908 are
materially different from S. 588 of the Code of 1882. It provides that lie from
221 the orders mentioned in the first clause of that section and, save as
otherwise expressly provided in the body of the Code or by any law for the time
being in force from no other orders." The effect of s. 104 is thus, not to
take away a right of appeal given by clause 15 of the Letters Patent, but to
create a right of appeal in cases even where clause 15 of the Letters Patent is
not applicable.. I hold accordingly that this appeal is competent under Clause
(c), R. 1, O. 43 of the Civil Procedure Code.
I am further of opinion that the appeal is
competent also under Clause 15 of the Letters Patent." (Emphasis ours) We
find ourselves in complete agreement with the view taken and the reasons given
by the three eminent Judges in the aforesaid case which furnishes a complete
answer to the arguments of the respondents that order 43, Rule I will have no
application to internal appeals in the High Court under the provisions of the
Letters Patent.
A similar view was taken in Lea Badin's case
(supra) where the following observations regarding the applicability of order
43 Rule I in respect of an order passed by a Trial Judge were made:- "As
an order refusing an application for the appointment of a receiver based on
provision in the indenture of hypothecation, that on a breach of any one of the
covenants contained therein the plaintiff's assignor would be entitled to have
a receiver appointed, the order has determined a right which is one of the
matters in the controversy itself, and so it satisfies the definition of Couch,
C.J., as well. The order appealed from in this case is, in our opinion, a
judgment' within the meaning of Cl. IS, Letters Patent.
We may add that there are decisions of this
Court in which orders discharging or refusing to discharge a receiver appointed
in a suit, after the suit had come to an end or had become infectious, have
been held to be ' judgments' and so appealable...But there is another and a far
simpler ground on which it must be held that an appeal is competent. The order
in the present case is one for which a right of appeal is provided in cl. (s),
R. 1, 222 O. 43 of the Code. Under the present Code (Act S of 1908) it cannot
be contended that the Code and the Rules made under it do not apply to an
appeal from a learned Judge of the High Court, such a contention was
elaborately dealt with and repelled in the case of Malhura Sundari Dassi v.
Haran Chandra Shaha & Ors.
(AIR 1916 Ca. 361)".
(Emphasis ours) In Toolsee Money Dassee &
Ors. v. Sudevi Dassee & ors. (supra) Maclean, C.J. while relying on the
decision of the Judicial Committee in Hurrish Chunder Chowdry's case made the
following pithy observations:
"To my mind the first of these points
has been authoritatively decided against the view of the present respondents by
the Judicial Committee of the Privy Council in the case of Hurrish Chunder
Chowdhry v. Kali Sunderi Debi (10 I. A. 4). I need not travel into the facts of
that case, but there their Lordships said at page 494 of the report in the
Indian Law Reports: "It only remains to observe that their Lordships do
not think that section 588 of Act X of 1877, which has the effect of
restricting certain appeals, applies to such a case as this where the appeal is
from one of the Judges of the Court to the Full Court." It is clear from
the report that the point was elaborately argued, and the clear expression of
their Lordships' opinion must be read in connection with that argument."
and Prinsep, J. who agreed with the Chief Justice, made the following identical
observations:- "We have it, therefore, that if beyond clause 15 of the
Letters Patent, 1865, section 588 of the Code of Civil Procedure gives the
right of appeal against any order of the description specified therein, there
is no Court of Appeal constituted to hear it, if such order not being a
judgment had been made by the Judge on the original Side of the High Court.
... ... ...
I understand this to mean that section 588
does not affect any matter coming within clause 15 of the Letters 223 Patent,
and if I may venture to say so, the reasons which led to the expression of that
opinion and which have not been given in the judgment reported may be those
stated by me for arriving at the same conclusion.
I have no doubt that we are bound to follow
to the fullest extent the opinion expressed by their Lordships of the Privy
Council that section 588 of the Code does not apply to the case now before us,
and that this matter has thus become settled law".
And Ammer Ali, J. while dissenting from the
applicability of s. 588 held that the order appealable under s. 588 was a
judgment within the meaning of the Letters Patent. Two decisions of the Rangoon
High Court also have consistently taken the view that the provisions of s. 104
read with order 43 Rule I apply to the Trial Judge. In P. Abdul Gaffor v. The
Official Assignee (1) the following observations were made:
For an order made in exercise of the ordinary
original civil jurisdiction to be appealable, it must come either under order
XLIII, Rule 1 or be a judgment within the meaning of Section 13 of the Letters
Patent, so that for the purpose of this application the appellant must
establish that it is a judgment within the meaning of section 13".
(Emphasis ours) The question of the
applicability of order 43 Rule I to an appeal from the Trial Judge under the
Letters Patent was raised and decided by the Jammu & Kashmir High Court in
Abdul Samad & Ors. v. The State of J & K (2) a decision to which one of
us (Fazal Ali, C.J. as he then was) was a party. After an exhaustive review of
various decisions on the subject, the High Court observed as follows:- G The
legal position that emerges, therefore, is that orders of the character
specified in Section 104 and order 43, Rule I, Civil P.C. excepting clause (JJ)
thereof, would 224 be construed as judgments and an appeal against any one of
such orders would lie to the.. Division Bench of the High Court notwithstanding
the fact that it is passed by one of the judges of the High Court sitting on
the original side".
It may be mentioned that like the Presidency
High Courts, the High Court of Jammu & Kashmir had also been invested with
ordinary civil original jurisdiction.
The question of the applicability of order 43
Rule 1 to an appeal against an order of a Trial Judge to the Division Bench was
directly in point and fully considered by a Division Bench of the Calcutta High
Court and a Full Bench of the Rangoon High Court. In Kumar Gangadhar Bagla v.
Kanti Chunder Mukerjee & Anr. while dwelling on this aspect of the matter
it was observed as follows:
"Mr. Bose did not seek to argue, that
the formal order of the 7th of June, 1935, was one of the appealable orders
provided for in the Code of Civil Procedure. On the contrary, he went so far as
to aver- with considerable vehemence - that neither sec. 104 nor order XLIII,
r. l of the Civil Procedure Code has any application to the High Court. I would
point out that it is clear from sec. 117 of Code of Civil Procedure and still
clearer from Or. XLIX, r. 3, C.P.C., that both sec. 104 and Or. XLIII, r. 1, do
apply to the High Court".
(Emphasis ours) It is manifest from the
observations made above that in view of the clear and explicit provisions of s.
117 and order 49 Rule 3 which while exempting other provisions from the
jurisdiction of the High Court did not exempt the various clauses of order 43
Rule 1. An identical view seems to have been taken by Sir Page, C.J. in a Full
Bench decision of the Rangoon High Court in In re: Dayabhai Jiwandas & Ors.
(supra) where the Chief Justice pithily observed as follows :- "In many
statutes in India, of course, a Right of appeal from an order passed pursuant
to the statute is expressly provided, and in such cases an appeal will lie on
the terms and conditions therein prescribed. I will not pause to enumerate or
discuss these enactments, although 225 many such statutes were cited at the
Bar. But, except A where otherwise a right of appeal adhoc is given under some
statute or enactment having the force of a statute, the right of appeal from
orders that do not amount to "judgment" is regulated by the
provisions of the Code of Civil Procedure; (see section 104 and order 43, Rule
1)".
Thus, there appears to be a general consensus
of judicial opinions on the question of the applicability of order 43 Rule 1 to
Letters Patent appeals.
This now brings us to the second limb of the
argument of Mr. Sorabjee that even assuming that order 43 Rule I does not apply
to the High Court so far as the Trial Judge of the said court is concerned,
there can be no doubt that the orders indicated in various clauses of order 43
Rule 1 possess the attributes and incidents of a final order which conclusively
decides a particular issue so far as the Trial Court is concerned. Thus, there
can be no difficulty, even without applying order 43 Rule 1 to hold by a process
of analogical reasoning that the appeals and orders mentioned in the various
sub-clauses would amount to a judgment within the meaning of cl. 15 of the
Letters Patent because they contain the traits, trappings and qualities and
characteristics of a final order. In other words, the argument advanced was
that we could still apply the provisions of order 43 Rule 1 by the process of
analogy. We fully agree with this argument because it is manifest that the word
'judgment' has not been defined in the Letters Patent but whatever tests may be
applied, the order passed by the Trial Judge appealed against must have the
traits and trappings of finality and there can be no doubt that the appealable
orders indicated in various clauses of order 43 Rule I are matters of moment
deciding valuable rights of the parties and in the nature of final orders so as
to fall `within the definition of 'judgment'.
This Court in Radhey Shyam v. Shyam Behari
Singh (1) clearly held that an application under order 21 rule 90 to set aside
the auction-sale is a judgment as the proceeding raises a controversy between
the parties regarding their valuable rights. In this connection, this Court
observed thus :- "In our view an order in a proceeding under XXI, r. 90 is
a "judgment" inasmuch as a proceeding raises 226 a controversy
between the parties therein affecting their valuable rights and the order
allowing the application certainly deprives the purchaser of rights accrued to
him as a result of the auction-sale".
On a parity of reasoning, an order refusing
to appoint a receiver or grant an injunction and similar orders mentioned in
various clauses of order 43, Rule 1 fall within the tests laid down by this
Court in the aforesaid case.
We are aware that there are some decisions
which have taken a contrary view by holding that s. 104 read with order 43 Rule
I does not apply to a Trial Judge under the Letters Patent. These decisions do
not appear to have considered the various shades and aspects and the setting of
the provisions of ss. 104 and 117 and order 49 Rule 3 but seem to have
proceeded on the basis that the Letters Patent being a special law or a special
jurisdiction, the same over-rides s. 104 which in terms does not apply where a
special law makes certain special provisions.
We now proceed to discuss these cases
briefly. In Pandy Walad Dagadu Mahar & Anr. v. Jammadas Chotumal Marwadi
(1) the identical point which is at issue in the instant appeal was not
involved and the finding given by the High Court was merely incidental. The
Division Bench seems to have relied on a judgment of Sir Basil Scott and
Hayward, JJ. where the question was only incidentally dealt with. Martin, J. In
Pandy's case observed thus :- "Shortly stated, therefore, this Full Bench
decision amounts to this,. that appeals under the Letters Patent are governed
by the Letters Patent, and appeals under Code are governed by the Code.
Further, the Code only deals with appeals from certain Courts and it does not
deal with appeals within the High Court from the decision of one Judge of the
Court to another.
That is in my opinion, the true view of the
relative position of the Letters Patent and the Code".
With due respect, a close analysis of this
decision would reveal that the Judges followed a fallacious process of
reasoning, According to their opinion, the appeals under the Code of Civil 227
Procedure and those under the Letters Patent were, so to say two separate
compartments having different spheres of their own. With due deference, we
might point out that such a view is based on a total misinterpretation and
misconstruction of the true nature and object of the Code of Civil Procedure
and the Letters Patent. In fact, as we have pointed out earlier, there is no
inconsistency, whatsoever between the Letters Patent and s. 104 read with order
43 Rule l; The first premise of the Court that internal appeals in the High
Court were governed by the Letters Patent alone and not by the Code appears to
be legally fallacious. We have already pointed out that a large number of decisions,
including the Privy Council, have clearly taken the view that although the
Letters Patent is a special law certain provisions of the Code of Civil
Procedure in the matter of procedure do apply to appeals against the decision
of a Trial Judge to a larger Bench or to quote the Bombay Judges to 'internal
appeals'.
Secondly, the Court completely overlooked the
legal effect of s. 117 and order 49 Rule 3 which completely demolishes the
presumptuous process of logic adopted by the court.
Thirdly, the Court appears to have overlooked
that far from excluding the Code there could be other special Acts which could
and did confer additional jurisdiction even in internal appeals to the High
Court, viz., from an order passed by a Trial Judge to a larger Bench, for
instance, s. 39 of the Arbitration Act or s. 202 of the Indian Companies Act
and other similar local or special Acts. If these special Acts could without
affecting the jurisdiction of the Letters Patent or overriding the same
provided a supplementary or additional jurisdiction, there was no reason why
the Code of Civil Procedure also could not do the same particularly when the
Trial Judge had to adopt the procedure contained in the Code, starting from the
presentation of the plaint to the delivery of judgment.
Fourthly, the Division Bench does not seem to
have considered the fact that what the Letters Patent did was merely to confer
original civil jurisdiction on the High Court to be exercised by a Single
Judge, who would undoubtedly be a Trial Judge, but of an elevated status so
that only such suits could be filed in the Court of the said Judge as are of a
very high valuation which may differ from High Court to High Court. This was
done in order that in heavy suits involving substantial questions of fact and
law, the hearing of the suit by a senior Court of the status of a High Court
Judge would repose, endeanr and generate greater confidence in the people. Thus
if, interlocutory orders passed by District courts in the mofussil could be
appealable to the High Court, there was no reason why inter 228 locutory orders
passed by a Trial Judge could not be appealable to a larger Bench irrespective
of the question whether or not they were judgments within the meaning of cl.
15 of the Letters Patent. This appears to us
to be the cardinal philosophy of the Code in applying the provisions of order
43 Rule I, to the original suit tried by the Single Judge (Trial Judge).
Furthermore, the concept of internal appeals
in the High Court seems to be a legal fiction without any factual existence
imported by some of the High Courts in order to get rid of some of the
provisions of the Code of Civil Procedure which is totally opposed not only to
the aim and object of the Code but also to the very spirit of the Letters
Patent. In a later judgment of the Bombay High Court in Vaman Ravji Kulkarni v.
Nagesh Vishnu Joshi & Ors.,(1) the following observations were made:-
"I am, with respect, of opinion that the view taken by the full Bench of
the Madras and Calcutta High Courts in the cases referred to above is correct,
and that the question must be regarded as having been finally settled by the
decision of the Privy Council in 10 I. A. 4. (Hurrish Chunder Chowdry v. Kali
Sundari Debi) S. 104. Civil P.C., which refers only to appeals to the High
Court from Courts subordinate to it, cannot apply to appeals filed under Cl. 15
of the Letters Patent from a single Judge OF the High Court to a bench. (Wadia,
J.) ... ... ... ...
There can be no doubt that the provisions of
the Letters Patent have conferred special powers regarding appeals within the
High Court. Those powers are not specifically taken away by s. 104, Civil P.C.
and are not, therefore, affected by it . ..Special enactments are not repealed
by later general Acts unless there be some express reference to the previous
legislation or a necessary inconsistency in the two Acts standing together,
which prevents the maxim from being applied.
Sub-section (2) of s. 104, Civil P.C., does
not refer to the Letters Patent and say that in spite of Cl. 15 of the Letters
Patent no appeal lies from any order passed in an appeal under Sub-s. (1).
Sub-s. (2) is in no way 229 inconsistent with cl. 15 of the Letters Patent and
the two can stand together, the former applying to appeals under the Code, and
the latter to special appeals within the High Court...I am satisfied that s.
104, Civil P.C . does not control cl. 15 of the Letters Patent, and in spite of
the absence of a saving clause in sub-s. (2) of s. 104 does not affect or cut
down the right of appeal conferred by the Letters Patent." (Lokur, J.) As
regards the first part of the observations of Wadia, J, we are constrained to
observe that the learned Judge has not correctly construed the true ratio of
the decision of the Privy Council in Hurrish Chunder Chowdry's case (supra)
where, as indicated, the Privy Council has in express terms held that s. 588 (which
now corresponds to order 43 Rule 1) clearly applies to appeals against orders
of a Trial Judge to a larger Bench of the High Court. Similarly, the
observations made by Lokur, J. run against the plain interpretation of s. 104
by assuming that there is a conflict between s. 104 read with order 43 Rule I
and the Letters Patent when in fact, as pointed out, there is no such conflict
at all-all that s. 104 does is to give an additional jurisdiction apart from
the Letters Patent which is in no way unconstitutional with the Letters Patent.
We may like to observe here that there is no non-obstante clause in the
provisions of the Letters Patent to indicate that the provisions of the Code of
Civil Procedure, particularly s. 104 would not apply either expressly or by
necessary intendment. In this view of the matter, therefore, we are clearly of
the opinion that the Bombay decisions are wrongly decided and must, therefore,
be overruled.
In Vishnu Pratap and Ors. v. Smt. Revati Devi
and Ors.(l) the Court held that no appeal against an order passed by a Trial
Judge under s. 202 of the Companies Act would lie to a Division Bench in view
of the Letters Patent.
This argument was negatived and overruled in
Shankarlal Aggarwal's case (supra) as already discussed above. As regards the
applicability of order 43, the following observations were made in Vishnu
Pratap's case:
"It is true that orders 40 & 43 both
apply to the High Court but the question here is whether o. 43 makes provision
for an appeal from one court to another or it is intended to cover cases of an
appeal from one Judge to a bench of 230 the same Court.. While s. 96 deals with
original decree, s. 104 Civil P.C. deals with orders, not being decrees, and
the orders that are appealable are set out under o. 43, C.P.C. The question of
an appeal from one Court to another Court is no doubt governed by the
provisions of the Code of Civil Procedure but the provision for appeal from one
Judge of a Court to a bench of the same Court is not provided for by the Code
and must be governed by the Letters Patent.
If s. 104 read with O. 43 makes all these
orders appealable then what would be the Court to which appeals would lie from
an order passed by a Division Bench and not by a single Judge. We are not
satisfied that s. 104 or O. 43 ever intended to deal with appeals from a Judge
or Judges of one Court to a larger number of Judges in the same Court. It is no
doubt true, as has been held by their Lordships of the Judicial Committee.
in-'Mt. Sabitri Thakurain v. Savi' (AIR 1921 PC 80) that s. 104 as well as o.
43 apply to High Courts but it does not mean that they give any right to an
appeal from an order by a Judge or Judges of that Court to a larger number of Judges
of the same Court independently of the Letters Patent of the Court. As we have
said if o. 43 or s. 104, Civil P.C., were made applicable per se, without
reference to the Letters Patent, then even an order passed by a bench would
come under those provisions, but before an appeal can be filed there will have
to be a Court constituted for hearing an appeal and the only provision for
hearing an appeal, from the judgment of a single Judge, by a bench of two or
more Judges of the same Court is contained in the Letters Patent of the
Chartered High Courts. An order, to come under the Letters Patent must be a
judgment, and, if an order is not a judgment, then cl. 10 of the Letters Patent
would not apply and there is no provision for constituting a bench of more than
one Judge to hear such an appeal. We, therefore, fail to understand how O. 43
R. 1, or s. 104, Civil P.C. without any reference to cl. 10 of the Letters
Patent, can help the appellants.' In this case also, the line of reasoning
adopted by the court is the same as that of the Bombay High Court referred to
above.
231 One of the reasons given is that while
order 43 makes provision for A appeal from one court to another, it is not
intended to apply to an appeal from one Judge of the High Court to a bench of
the same Court. No reasons have been given by the Judges for holding why this
is not so particularly in the face of the clear provisions of s. 117 and order
49 Rule 3, as discussed above. Thus, the first part of R the reasoning of the
High Court is totally irrelevant and wholly unintelligible. The point at issue
is if s. 104 read with order 43, Rule I applies to an order passed by District
Courts in the mofussil, why could it not apply to the one passed by the Trial
Judge when the Letters Patent does not in any way bar such an appeal.
Another ground taken by the Court is that if
order 43 Rule I is made applicable to the High Court then a strange anomaly
will arise in that where an appeal lies to the Division Bench, how could a
further appeal lie to some other bench of the court. This argument also is
based on a misconception of order 43 Rule 1. It is manifest that if order 43
Rule I were to apply to orders passed by the Trial Judge, the order would be
one passed by only one Judge of the High Court and, therefore, in the context
of the original jurisdiction exercised by a Single Judge of the High Court, the
appellate jurisdiction would lie with the Division Bench as contemplated by the
Letters Patent and the Rules framed by the High Court. We are unable to see any
anomaly or inconsistency in this position. Thirdly, the court seems to have
relied on a decision of the Privy Council in Mt. Sabitri Thakurain v. Savi (AIR
1921 PC 80) and has interpreted the ratio of this case to mean that s. 104
would not apply to High Courts which is exactly what the Privy Council does not
say. With due respect, therefore, the learned Judges have not correctly
appreciated the decision of the Privy Council which has nowhere indicated that
order 43 Rule I would not apply to internal appeals in the High Court. On the
other hand their Lordships of the Privy Council had held to the contrary as
discussed above. For these reasons, therefore, we are of the opinion that this
case has also not been correctly decided and we disapprove the reasons given
and the decision taken in this case.
We might also notice a full Bench decision of
the Nagpur High Court in Madhukar Trimbaklal v. Shri Sati Godawari Upasani
Maharaj 232 of Sakori & Ors. (1) where Niyogi, J. Observed as follows :-
"Clause 10, Letters Patent defines the appellate jurisdiction of the High
Court vis-a-vis the judgment passed by a single Judge of that Court. It should
be observed that the Civil Procedure Code does not make any provision in this
behalf. The right of appeal from a decree of a single Judge to the High Court
is not governed by s. 96 or s. 100 or s. 104, Civil P.C., but by cl. 10,
Letters Patent.. This right of appeal depends on the special provision made in
the Charter.
S. 4, Civil P.C., provides that the Code does
not affect any special jurisdiction or power conferred, or any special form of
procedure prescribed by or under any other law for the time being in force.
Since the special jurisdiction or power is conferred on the High Court by cl.
10, Letters Patent the provisions in the Civil Procedure Code regarding appeals
cannot come into operation in regard to an appeal from a single Judge of the
High Court to the High Court".
With due respect, we are unable to agree with
the opinion expressed by Niyogi, J. who has made a bald statement that the Code
of Civil Procedure does not make any provision in regard to an appeal from an
order passed by a Trial Judge to a Division Bench and that the right of appeal
from a decree of a Civil Judge to a High Court is not governed by s. 100 or s.
104 but by cl. 10 of the Letters Patent of the Nagpur High Court. Here again,
the learned Judge seems to have committed an error apparent on the face of the
record. An examination of the language of sections 96 to 100 would clearly show
that the scope of these sections is quite different from that of s. 104.
Sections 96 to 100 expressly deal with the forum of appeal provided by the Code
against decrees or orders amounting to decrees passed by the District Court in
the mofussil. Section 104 is couched in very general terms and cannot be
limited to appeals against orders passed by the courts contemplated in sections
96 to 100. Moreover, s. 104 does not deal with appeal against a decree at all
but provides a forum for appeal against orders under order 43 Rule I which are
mainly orders of a final or quasi-final nature passed during the pendency of a
suit.
Section 104, therefore, has a much wider
application, as discussed above, and neither overrides the Letters Patent nor
is it inconsistent with the same. For these reasons, therefore, we are unable
to accept the line of reasoning adopted by the aforesaid High Court in holding
233 that s. 104 does not apply to internal appeals in the High Court and A we
accordingly overrule this decision.
A somewhat identical view was taken by a
later decision of the Nagpur High Court in Ratanlal Jankidas Agarwal v.
Gajadhar & Ors. (l) Where the following observations were made -
"Firstly, O. 43 has not been made applicable to appeals from appellate
decrees by o. 43, R. 1, though the rules of o. 41 have been made applicable to
them.
So s. 104 bars an appeal from the order.
Moreover, the Civil Procedure Code makes no provision for an appeal within the
High Court, that is to say, from a single Judge of the High Court.. Power is
given to a Division Bench of the High Court to hear appeals from decisions of a
single '' Judge of the High Court only under cl.
10 of the Letters Patent".
For the reasons which we have already given
above, we hold that the learned Judges have fallen into the same error which
was committed by the earlier Nagpur case. The first reasoning given by
Mangalmurti, J. that order 43 is not applicable to appeals from appellate
decrees is wholly irrelevant because the question is whether under order 43
Rule 1, an appeal could lie from a Trial Judge to a Division Bench of the High
Court. Secondly, the learned Judge says that s. 104 bars a second appeal from
the order and that the Code of Civil Procedure makes no provision for appeal
within the High Court. Here again, the learned Judge is wrong because we have
already pointed out that as far back as Hurrish Chunder Chowdry's case (supra)
it was clearly held by the Judicial Committee that s. 588 was applicable even
to internal appeals in the High Court. On a parity of reasoning, therefore, on
the basis of which we have overruled the decisions of the other High Courts,
taking a similar view we find ourselves unable to agree with the view taken by
Mangalmurti and Bose, JJ. in the aforesaid case and hold that this case is not
correctly decided.
A later decision of the Allahabad High Court
also seems to have taken the same view. In Standard Glass Beads Factory &
Anr. v. Shri Dhar & Ors. (2) the following observations were made :-
"Such an order if made by a subordinate court is appealable under or. 43
R. 1, C.P.C.; it is, as we have seen an order from which in England an appeal
lies, without 234 leave, to the Court of Appeal. If the narrower view of the
meaning of the word 'judgment' be correct such an order when made by a Judge of
a High Court in India exercising original jurisdiction would not be
appealable".
Here also with due deference to the Judges
constituting the Full Bench, we are of opinion that they committed an error in
drawing inspiration from the procedure prevailing in England in the court of
appeal. In the first place the hierarchy of the Courts in India under the Civil
Procedure Code is essentially different from that in the United Kingdom.
Secondly, there is no provision existing in the English law corresponding to
Order 43 Rule 1 of an appeal from a Trial Judge to a Division Bench under
various circumstances. Lastly, this case does not seem to have considered a
large number of decisions referred to by us, clearly holding that s. 104 read
with order 43 Rule I applies to appeals under the Letters Patent in the High
Court. For these reasons, therefore, we hold that this case also was not
correctly decided and must be overruled.
Another case taking a contrary view is again
a case of the Bombay High Court which also makes a rather interesting reading.
In J.K Chemicals Ltd. v. Kreba and Co. (1) Desai, J. speaking for the court
observed on this part of the case thus:
"The reply to the said argument is that
the provisions of s. 104 and O. 43, R. I provide for an appeal only from the
subordinate Court to the higher Court and not from one part of the Court to the
other.
It has been held that the provisions relating
to appeals contained in the Civil Procedure Code deal with appeals from
subordinate Courts to higher Courts and do not deal with appeals from the
decisions and decrees of the High Court in the exercise of its ordinary or
extra-ordinary civil jurisdiction except so far as the appeal to the Supreme
Court is concerned. The subject of an appeal from the decision of a single
Judge of the High Court to a Division Bench of the same High Court is dealt
with only under the Letters Patent and such right is not governed by the
provisions of the Civil Procedure Code relating to appeals. This view has been
taken consistently by the High Courts in India and also by the Privy Council
(see Hurrish Chunder v. Kali Sunderi Debi-(1883) ILR 9 Cal. 482 at p.
494)".
235 The first part of the observations
follows the reasonings of the A two decisions of the Bombay High Court,
discussed above, and are therefore open to the same criticism which we have
levelled against the previous decisions. Secondly, the court seems to think
that all the High Courts in India have consistently taken the view that order
43 Rule 1 does not apply to internal appeals in the High Courts. This is
doubtless factually incorrect because we have referred to a large number of
decisions which have taken a contrary view. The High Court was, therefore, not
quite correct in observing that the High Courts in India had taken a consistent
view in regard to this matter. Thirdly, the High Court seems to have relied
heavily on the decision of the Privy Council in Hurrish Chunder Chowdry's case
(supra) and on Chappan's case (supra) in holding that order 43 did not apply to
internal appeals in the High Courts which were governed by the Letters Patent
alone. Here also, with due respect, the High Court has gravely erred. We have
pointed out while dealing with Hurrish Chunder Chowdry's case (supra) that the
Privy Council had clearly laid down that s. 588 applied to the High Court and
this position has been understood in this very sense by several judgments
discussed above. The High Court, therefore, has not correctly appreciated the
real ratio of the Privy Council case, referred to above.
As regards Chappan's case (supra), the
conclusion of the High Court is not borne out by the ratio of the Full Bench in
the said case. It would appear that the Full Bench in the aforesaid case was
concerned with two questions:
(1) Whether in view of s. 622 of the old Code
(which corresponds to s. 115 of the Code of 1908) an order passed by a trial
Judge could be revised by a larger Bench, and (2) Whether the right of appeal
given by cl. 15 of the Letters Patent against an order passed by a trial Judge
was controlled and limited by ss. 588 and 591 of the Code of 1877 (which now
corresponds to order 43 Rule 1).
In the instant case we are not concerned with
the revisional power but only with what old section 588 was. Far from deciding
that s. 588 was not controlled by the Letters Patent, the learned Judge decided
to the contrary. To begin with, Benson, J. formulated 236 the questions
referred to the Full Bench thus :- (1) Whether the jurisdiction exercised by
the High Court under section 622, Civil Procedure Code, is included in the
expression "appellate jurisdiction" as used in section 13 of the High
Court Act (24 and 25 Vict. Chap. 104 and in section 36 of the Letters Patent of
1866, and (2) Whether the right of appeal given by section 15 of the Letters
Patent against an order passed by a single Judge of the High Court is
controlled and limited by sections 588 and 591, Civil Procedure Code? I am of
opinion that both of these questions must be answered in the affirmative".
and Shephard, Acting C.J. Observed as
follows:
"Accordingly I think it must be assumed
that the judgment of a single Judge acting under section 622 of the Code is
open to appeal, unless the right of appeal has been taken away by section 588
of that Code. On that question I entirely agree with Mr. Justice Subramania
Ayyar. The question is, in my opinion, concluded by authority which it is
beyond our province to criticise".
and Boddam, J. expressed the following
opinion :- "The result of this judgment (so far as it applies to the
question before us) appears to me to come to this, that if the order made by a
single Judge only amounts to an order such as is intended by chapter XLIII of
the Code, it is not appealable unless it is within section 588".
and Moore, J. Observed as follows :- "It
is clear, however, that this could not have been done, for the provisions of
sections 588 and 591 do, in certain cases, most certainly apply to the High
Court. For example, section 588, clause 1, provides that if a District Munsif passes
an order under section 20 of the Code, an appeal lies to the District Judge,
but that there is no second appeal to the High Court, while if a District Judge
passes 237 such an order an appeal can be preferred to the High Court. Whatever
view be taken of section IS of the Letters Patent it would have been impossible
to include section 588 among those sections that do not apply to the High
Court".
Thus, the ratio decidendi of the decision
clearly goes to indicate that the Full Bench of the Madras High Court had held
in no uncertain terms that s. 588 applied to the High Court and orders
mentioned therein passed by a Trial Judge would be appealable to a larger
Bench. This, therefore, knocks the bottom out of the decision of the Bombay
High Court when Chappan's case (supra) in no way supported the view taken by
them. For the reasons given above, we hold that J.K Chemicals's case (supra)
was also wrongly decided and can no longer be treated as good law.
It is rather unfortunate that despite clear,
explicit, pointed and pragmatic observations of the Privy Council in Hurrish
Chunder Chowdry's case (supra) and further clarification by the legislature by
introducing s. 104 of the Code of 1908, some of the High Court’s n seem to have
stuck to the antiquated view that the provisions of order 43 Rule I do not
apply to internal appeals within the High Courts.
Thus after considering the arguments of
counsel for the parties on the first two limbs of the questions, our
conclusions are :- (1) That there is no inconsistency between s. 104 read with
order 43 Rule I and the appeals under the Letters Patent and there is nothing
to show that the Letters Patent in any way excludes or overrides the
application of s. 104 read with order 43 Rule I or to show that these
provisions would not apply to internal appeals within the High Court.
(2) That even if it be assumed that order 43
Rule I does not apply to Letters Patent appeals, the principles governing these
provisions would apply by process of analogy.
(3) That having regard to the nature of the
orders contemplated in the various clauses of order 43 Rule 1, there can be no
doubt that these orders purport to decide valuable rights of the parties in
ancillary proceedings even though the suit is kept alive and 238 that these
orders do possess the attributes or character of finality so as to be judgments
within the meaning of cl. 15 of the Letters Patent and hence. appealable to a
larger Bench.
(4) The concept of the Letters Patent
governing only the internal appeals in the High Courts and the Code of Civil
Procedure having no application to such appeals is based on a serious
misconception of the legal position.
This now brings us to the second important
point which is involved in this appeal. Despite our finding that s. 104 read
with order 43 Rule I applies to Letters Patent appeals and all orders passed by
a Trial Judge under clauses (a) to (w) would be appealable to the Division
Bench, there would still be a large number of orders passed by a Trial Judge
which may not be covered by order 43 Rule l. The next question that arises is
under what circumstances orders passed by a Trial Judge not covered by order 43
Rule 1 would be appealable to a Division Bench. In such cases, the import,
definition and the meaning of the word 'judgment' appearing in cl. 15 assumes a
real significance and a new complexion because the term 'judgment' appearing in
the Letters Patent does not exclude orders not falling under the various
clauses of order 43 Rule 1. Thus the serious question to be decided in this case
and which is indeed a highly vexed and controversial one is as to what is the
real concept and purport of the word 'judgment' used in cl. IS of the Letters
Patent. The meaning of the word 'judgment' has been the subject matter of
conflicting decisions of the various High Courts raging for almost a century
and in spite of such length of time, unfortunately, no unanimity has so far
been reached. As held by us earlier it is high time that we should now settle
this controversy once for all as far as possible.
We now proceed to deal with the main
controversy as to what is the true scope, meaning and purport of the word
'judgment' used in cl. 15 of the Letters Patent. Numerous authorities on both
sides were cited before us in the course of the very able arguments advanced by
counsels for the parties and it appears that there are three leading judgments
which have spelt out certain tests to determine as to when an order passed by a
Trial Judge can be said to be a 'judgment' within the meaning of. cl IS of the Letters
Patent. A very narrow view on this point was taken by a Division Bench 239 Of
the Calcutta High Court in the case of The Justice of the Peace for Calcutta
(supra) where Sir Couch, C.J. On an interpretation of cl. 15 of the Letters
Patent observed thus:
"We think that "judgment" in
clause 15 means a decision which affects the merits of the question between the
parties by determining some right or liability. It may be either final, or
preliminary, or interlocutory, the difference between them being that a final
judgment determines the whole cause or suit, and a preliminary or interlocutory
judgment determines only a part of it, leaving other matters to be
determined." An analysis of the observations of the Chief Justice would
reveal that the following tests were laid down by him in order to decide
whether or not an order passed by the Trial Judge would be a judgment:
(1) a decision which affects the merits of
the question between the parties;
(2) by determining some right or liability;
(3) the order determining the right or
liability may be final, preliminary or interlocutory, but the determination
must be final or one which decides even a part of the controversy finally
leaving other matters to be decided later.
Thus, examining the tests laid down by Sir
Richard Couch, C.J,, it seems to us that the view taken by the learned Chief
Justice appears to place a very strict and narrow interpretation on the word
'judgment' under which orders deciding matters of moment or valuable right of
the parties without finally deciding the suit may not amount to a judgment and
hence, not appealable. In giving this interpretation the learned Chief Justice
was guided by two considerations: (I) that a liberal interpretation may allow
vexed litigants to carry any discretionary order of the Trial Court in appeal,
and (2) that it would confer more extensive right to appeal against the Judge
sitting on the original side than the right of appeal given to a Trial Judge
sitting in the mofussil. We are doubtless impressed with the argument of the
Chief Justice and fully appreciate the force of the reasons given by him but we
feel that despite those considerations the law must be interpreted as it stands
and a court is not 240 justified in interpreting a legal term which amounts to
a complete distortion of the word 'judgment' so as to deny appeals even against
unjust orders to litigants having genuine grievances so as to make them
scapegoats in the garb of protecting vexatious appeals. In such cases, a just
balance must he struck so as to advance the object of the statute and give the
desired relief to the litigants, if possible. Although it is true that this
decision is practically the locus classic us so far as the Calcutta High court
is concerned and has been consistently followed by later decisions at the same
time it cannot be denied that in a number of cases the conscience of the Judges
was so shocked that they tried to whittle down or soften the rigours of this
decision so much so that in one case the observations of the Chief Justice were
not only not followed but were described as antiquated and in other cases the
Judges strongly expressed themselves that the High court should give up its
fondness to stick to the principles laid down by the learned Chief Justice. It
is not necessary for us to burden this judgment with later decisions of the
Calcutta High court in trying to comment on the correctness of the principles
laid down by sir Couch, c J. but a few instances may be quite revealing.
In Chandi Charan Saha v. Jnanendra Nath Bhattacharjee
and Ors.,(l) Sir Asutosh Mookerjee in his leading judgment modified the strict
rule of interpretation of 'judgment' laid down by sir Couch, C.J. and pointed
out that the words 'merits of the question between the parties by determining a
right of liability' were not to be confined or restricted to the controversy in
a suit itself but could take within its fold any right involved in any
application which puts an end to the suit or the proceeding. sir Mookerjee, J.
has widened the scope of the observations of sir Couch, c.J and adopted some of
the observations of Sir White, C.J. in Tuljaram Row's case (supra) and in this
connection observed thus:- "It is plain that the expression 'some right or
liability is not restricted to the right in controversy in the suit itself on
the other hand, if we adopt the wider definition formulated by White C.J. in
the case of Tuljaram Row v. Alagappa Chettiar (ILR 35 Mad. 1), the decision is
unquestionably a judgment within the meaning of the Letters Patent. The test
is, not what the form of the adjudication is, but what is its effect in the
suit or proceeding in which 241 it is made. If its effect, whatever its form
may be and whatever may be the nature of the application on which it is made,
is to put an end to the suit or proceeding so far as the Court before which the
suit or proceeding is pending is concerned, or if its effect, if it is not
complied with, is to put an end to the suit or proceeding, the adjudication is
a judgment: Mathura v. Haran (1915 ILR 43 Cal. 857)." In Lea Badin's case
(supra), the following observations were made:
"To remove the incongruity which appears
in the decision of this Court and to lay down some definite rule by which
orders might be tested when it has to be determined whether or not they are
'judgments' within the meaning of the clause, this Court will someday have to
abandon its fond adherence to the antiquated definition of Couch, C.J., and
boldly acknowledge its allegiance to the tests laid down by White, C.J."
(Emphasis supplied) After making these observations the Court further
reiterated the position in the following words.
"In more decisions than one of this
Court this definition of 'Judgment' given by Couch, C.J. has been described as
classical, and yet in a long course of decisions this Court has repeatedly
expressed the view that the definition is absolutely exhaustive. Treating this
definition as not of an inflexible character and yet not expressly purporting
to extend it, the Court has in numerous cases emphasised the necessity of
scrutinizing the nature of the decision in each particular case in order to
find out whether the decision amounts to a 'judgment' within the meaning of the
Clause.
In Shorab Merwanji Modi and Anr. v. Mansata
Film Distributors and Anr., the following observations were made:
"On a strict construction of the
Calcutta test, the Tight or liability must mean some right or liability which
is 242 a subject-matter of controversy in the suit or proceeding but in its
application to individual cases, that strict construction has not been adhered
to and was indeed often departed from by Couch, J., himself who was the author
of the test. Orders concerning the jurisdiction of the Court to entertain a
suit, as distinguished from matters of the actual dispute between the parties,
were held by him to come within the category of judgments." In Mooammed
Felumeah v. S. Mondal & Ors. the Court pithily observed as follows:
"Now, so far as this Court is concerned,
there is a considerable body of judicial opinion, which, while holding that Sir
Richard Couch's above definition is classical and of pre-eminent practical
importance and usefulness, has consistently refused to regard it as, in any
sense. exhaustive or inflexible. Indeed, in essence and truth, it has been accepted
merely as the starting point on a broad open field, stretched in front of it in
all its vastness and immense magnitude, and Judges have always endeavoured to
extend it and expand the different aspects of the term and to give it a wide
and extended meaning, though, of course, within certain limits." The other
leading case which puts even a narrower interpretation and in our opinion, a
clearly wrong one, on the word 'judgment' is the Full Bench decision of the
Rangoon High Court In Re Dayabhai Jiwandas's case (supra) where the following
observations were made:
"I am of opinion that in the Letters
Patent of the High Court’s the word judgment' means and is a decree in a suit
by which the rights of the parties at issue in the suit are determined."
With due respect to the learned Chief Justice and the Judges who agreed with
him, we are unable to accept the interpretation of the word judgment' given by
the Chief Justice which runs counter to the very spirit and object of the word
'judgment' appearing in cl. 15 of the Letters Patent. The learned Chief Justice
seems to 243 have fallen into the error of equating the word 'judgment' with
'decree' as used in the Code of Civil Procedure when, as pointed out above, the
words 'judgment' and 'decree' used in the Code cannot form a safe basis to
determine the definition of the word 'judgment' in the Letters Patent
particularly when the Letters has deliberately dropped the word 'decree from
judgment.' We are, therefore, unable to hold that the view taken by the Chief
Justice, Sir Page, is correct and accordingly overrule the same.
The next leading case which lays down the
test of a 'judgment' and which seems to have found favour with most of the High
Courts in India is the test laid down by Sir Arnold White, C.J. in Tuljaram
Row's case (supra) where the learned Chief Justice pointedly spelt out various
tests and observed thus:- "The test seems to me to be not what is the form
of the adjudication but what is its effect in the suit or proceeding in which
it is made. If its effect, whatever its form may be, and whatever may be the
nature of the application on which it is made, is to put an end to the suit or
proceeding so far as the Court before which the suit or proceeding is pending
is concerned, or if its effect, if it is not complied with, is to put an end to
the suit or proceeding, I think the adjudication is a judgment within the
meaning of the clause. An adjudication on an application which is nothing more
than a step towards obtaining a final adjudication in the suit is not, in my
opinion, a judgment within the meaning of the Letters Patent." I think,
too, an order on an independent proceeding which is ancillary to the suit (not
instituted as a step towards judgment, but with a view to rendering the
judgment effective if obtained) - e.g., an order on an application for an
interim injunction, or for the appointment of a receiver is a 'judgment' within
the meaning of the clause." Analysing the observations of the learned
Chief Justice it would appear that he has laid down the following tests in
order to assess the import and definition of the word 'judgment' as used in cl.
IS of the Letters Patent :- (1) It is not the form of adjudication which is to
be seen but its actual effect on the suit or proceeding;
244 (2) If, irrespective of the form of the
suit or proceeding, the order impugned puts an end to the suit or proceeding it
doubtless amounts to a judgment;
(3) Similarly, the effect of the order, if
not complied with, is to terminate the proceedings, the said order would amount
to a judgment;
(4) Any order in an independent proceeding
which is ancillary to the suit (not being a step towards judgment) but is
designed to render the judgment effective can also be termed as judgment within
the meaning of the Letters Patent.
So far as this test is concerned, the learned
Chief Justice had in mind orders passed by the Trial Judge granting or refusing
ad-interim injunction or appointing or refusing to appoint a receiver.
(5) An order may be a judgment even if it
does not affect the merits of the suit or proceedings or does not determine any
rights in question raised in the suit or proceedings.
(6) An adjudication based on a refusal to
exercise discretion the effect of which is to dispose of the suit, so far as
that particular adjudication is concerned, would certainly amount to a judgment
within the meaning of the Letters Patent.
Similarly, Krishnaswami Ayyar, J., who agreed
with tile Chief Justice in the above case, pointed out that even an
interlocutory judgment which determines some preliminary or subordinate point
or plea or settles some step without adjudicating the ultimate right of the
parties may amount to a judgment. With due respect we think that if the
observations of Krishnaswamy Ayyar, J. are carried to its logical limit every
interlocutory order would have to be held to be appealable.
So far as the tests laid down by White, C.J.,
and as analysed by us, are concerned we are inclined to agree generally with
these tests though we feel that some of the tests laid down are far too 245
wide and may not be quite correct. While the view taken by Sir Richard Couch,
C.J. in The Justice of the Peace for Calcutta (supra) is much too strict, the
one taken by Sir White, C.J. is much too wide. The correct test seems to lie
somewhere in between the tests laid down by the aforesaid jurists.
We might point out that the tests laid down
by the Calcutta High Court have been consistently followed by the Bombay High
Court and also by a large majority of the later decisions of the Calcutta High
Court in Lea Badin v. Upendra Roy Chaudhury, Kumar Gangadhar v. Kanti Chunder
Mukherjee, Shorab Merwanji Modi v. Mansata Film Distributors, Mohammed Felumeah
v. S. Mondal.(supra) Some of the decisions have sounded a discordant note and
have gone to the extent of characterising the view of Sir Couch, C.J, as being
antiquated and have strongly expressed the view that the Calcutta High Court
should give up its fondness for the strict test laid down by Sir Couch in The
Justice of the Peace for Calcutta's case. On the other hand, the tests laid
down by Sir White, C.J. in Tuljaram Row's case have been followed by the Lahore
High Court in Ruldu Singh v. Sanwal Singh and by some other High Courts in
Standard Glass Beads Factory Shri Dhar & Ors. and later decisions of the
Madras High Court as also by Andhra Pradesh High Court in Kuppa Viswappathi v.
Kuppa Venkata Krishua Sastry.
A Full Bench of the Allahabad High Court,
however, in Mt. Shahzadi Begam v. Alak Nath dissented from the view taken by
the Madras High Court and held that the tests laid down by that High Court in
the aforesaid case were rather too wide. In this connection, Sulaiman, C.J.,
speaking for the Court observed as follows :- "We would like to point out
that the test laid down by the learned Chief Justice of the Madras High Court
is put in too wide a language and cannot be accepted as laying down the correct
criterion".
Similarly, in a later Full Bench decision of
the Nagpur High Court in Manohar Damodar Bhoot v. Baliram Ganpat Bhoot,
Hidayatullah. J. (as he then was) who wrote the leading judgment, very pithily
described the essential requisites and the exact meaning 246 of the word
'judgment' as used in the Letters Patent and observed thus:
"A judgment means a decision in an
action whether final, preliminary or interlocutory which decides either wholly
or partially, but conclusively in so far as the Court is concerned, the
controversy which is the subject of the action. It does not include a decision
which is on a matter of procedure, nor one which is ancillary to the action
even though it may either imperil the ultimate decision or tend to make it
effective. The decision need not be immediately executable 'per se' but if left
untouched must result inevitably without anything further, save the determination
of consequential details, in a decree or decretal orders, that is to say, an
executive document directing something to be done or not to be done in relation
to the facts of the controversy. The decision may itself order that thing to be
done or not to be done or it may leave that over till after the ascertainment
of some details but it must not be interlocutory having for its purpose the
ascertainment of some matters or details prior to the determination of the
whole or any part of the controversy".
The pointed observations of the Hon'ble Judge
try to synthesize the conflicting views taken by the Calcutta and the Madras
High Courts and, in our opinion, they represent the true scope and import of
the word 'judgment' as used in the Letters Patent. The learned Judge while
making these observations has made an exhaustive analysis of a large number of
cases.
Having dealt with the main cases of the
various High Courts reflecting different and variant views, we do not think it
necessary to multiply authorities on this subject which have been fully debated
in the decisions we have referred to. We shall now proceed to refer to the
decisions of this Court with respect to the incidental observations made by
them regarding the scope and meaning of the word 'judgment' before giving our
own view of the matter. Before, however, dealing with the cases of this Court
we might indicate that in view of the decisions taken by us regarding the
applicability of s. 104 read with order 43 Rule 1 even to internal appeals in
the High Court, the controversy regarding the meaning of the word 'judgment'
has been largely narrowed down and sufficiently abridged because the orders
mentioned in clauses (a) to (w) of order 43 Rule 1 having 247 been held to be
appealable, there would be only a few cases left in A which the question as to
whether or not the orders passed by the Trial Judge are judgments would arise.
After discussing the decisions of this Court, we shall give a list of
illustrative cases which may justly be described as 'judgment' within the
meaning of the Letters Patent so as to cover almost the entire field though a
few cases still may have to be determined according to the principles laid
down.
The first decision of this Court which is
relevant is Asrumati Debi's case (supra). In this case the only question
involved was whether an order transferring a suit under cl. 13 of the Letters
Patent satisfied the tests of a judgment as mentioned in cl. 15 of the Letters
Patent. This Court referring to the Calcutta and Madras decisions refrained
from giving any particular decision except that they held that the mere order
of transfer under cl. 13 of the Letters Patent could not be said to be a
judgment and was therefore not appealable. This Court pointed out that the
order neither affected the merits of the controversy not did it terminate or
dispose of the suit. In this connection, the Court observed as follows:
"The judgment must be the final
pronouncement which puts an end to the proceeding so far as the court dealing
with it is concerned. It certainly involves the determination of some right or
liability, though it may not be necessary that there must be a decision on the
merits.
... ... ...
We have indicated that the essential features
of a 'judgment' are according to both the, Calcutta and the Madras High Courts
and all that we need say is that, in our opinion, an order under clause 13 of
the Letters Patent does not satisfy the tests of a 'judgment' as formulated by
either of these High Courts".
Apart from this what is more important is
that the Court clearly observed that as an order granting leave under cl. 12 of
the Letters Patent constitutes the very foundation of the suit, hence if by an
order such leave is rescinded the suit automatically comes to an end and there
can be no doubt that such an order would be a judgment. In this connection,
this Court observed as follows:- "Leave granted under clause 12 of the
Letters Patent constitutes the very foundation of the suit which is 248
instituted on its basis. If such leave is rescinded, the suit automatically
comes to an end and there is no doubt that such an order would be a
judgment".
Thus, from this case an important test that
can be spelt out is that where an order which is the foundation of the
jurisdiction of the Court or one which goes to the root of the action, is
passed against a particular party, it doubtless amounts to a judgment. As we
have already pointed out apart from these observations this Court refused to
embark on an enquiry as to in what cases an order passed by a Trial Judge would
be a 'judgment' for purposes of appeal before a larger Bench.
Again in Union of India v. Mohindra Supply
Co. (supra) this Court clearly held that in enacting s. 104 the intention of
the Legislature was to preserve the Letters Patent jurisdiction of the High
Court and provided for a right to appeal from the Trial Judge to the Division
Bench without affecting the provisions of the Code of 1908. In this connection,
the Court observed as follows :- "Under the Code, as amended, the view has
consistently been taken that interlocutory judgments (i.e., decisions though
not amounting to decrees which affect the merits of the questions between the
parties by determining some right or liability) passed by single Judges of
Chartered High Courts were appealable under the Letters Patent".
We might mention here that the observations
of this Court completely demolish the arguments of some of the High Courts that
s. 104 does not apply to internals in the High Court because this Court while
referring to the Code made specific reference to s. 104 in the previous
paragraph.
Apart from this, there is no observation by
this Court regarding essential requisites of a Judgment. In State of U.P. v.
Dr. Vijay Anand Maharaj (supra) the order impugned passed by the Single Judge
was an order dismissing an application filed by the applicant to review the
order of the Trial Judge. The question for determination was whether the order
was a judgment so as to be appealable to the Division Bench. This Court referred
to the observations of Hidayatullah, J. extracted in Manohar V. Baliram (supra)
and though they did not expressly approve this decision they indirectly seem to
have been impressed by the reasons given by Hidayatullah, J. Nothing further
was said by this Court because it held that on the facts of that case the 249
order of the Trial Judge dismissing the application for review was A
appealable. We might mention here that under clause (w) of order 43 Rule 1 an
order granting an application for review is appealable.
On a parity of reasoning, therefore, an order
dismissing an application for review would also be appealable under the Letters
Patent being a judgment though it is not made appealable under order 43 Rule 1.
In Shankarlal Aggarwal's case (supra) while
indicating the divergence of judicial opinion on the subject this Court held
that an order under s. 202 of the Indian Companies Act was a judgment within
the meaning of Letters Patent and therefore appealable. We might mention here
that the Companies Act which confers additional original jurisdiction on the
Trial Judge expressly makes an order passed by the Trial Judge under s. 202
appealable and, therefore, it is manifest that any order passed under s. 202
would have to be appealable under the Companies Act and therefore it was
rightly construed as a judgment.
In Radhey Shyam v. Shyam Behari (supra) the
question was whether in an application under order 21 rule 90 to set aside an
auction sale an order passed by the Court would be a judgment affecting
valuable rights. This Court held that an order in such proceedings affected
valuable rights and was therefore appealable. In this connection, the Court
observed as follows:- "In our view an order in a proceeding under O. XXI,
r. 90 is a "judgment" in as much as such a proceeding raises a
controversy between the parties therein affecting their valuable rights and the
order allowing the application certainly deprives the purchaser of rights
accrued to him as a result of the auction-sale." Thus, the only point
which emerges from this decision is that whenever a Trial Judge decides a
controversy which affected valuable rights of one of the parties, it must be
treated to be a judgment within the meaning of the Letters Patent.
250 The last case of this Court to which our
attention has been drawn is Shanti Kumar R. Canji v. The Home Insurance Co. Of
New York where the court was considering the effect of an order passed by the
Trial Judge allowing amendment of the plaint and the question at issue was
whether such an order would be a judgment within the meaning of the Letters
Patent. The following observations were made by this Court in the aforesaid
case.
"We are in agreement with the view
expressed by the High Court at Calcutta in the M.B. Sirkar's case (AIR 1956
Cal. 630) as to when an order on an application for amendment can become a
judgment within the meaning of clause 15 of the Letters Patent. If an amendment
merely allows the plaintiff to state a new cause of action or to ask a new
relief or to include a new ground of relief all that happens is that it is possible
for the plaintiff to raise further contentions in the suit, but it is not
decided whether the contentions are right. Such an amendment does nothing more
than regulate the procedure applicable to the suit. It does not decide any
question which touches the merits of the controversy between the parties.
Where, on the other hand, an amendment takes away from the defendant the
defence of immunity from any liability by reason of limitation, it is a
judgment within the meaning of clause 15 of the Letters Patent. The reason why
it becomes a judgment is that it is a decision affecting the merits of the
question between the parties by determining the right or liability based on
limitation. It is the final decision as far as the trial court is concerned.
In finding out whether the order is a
judgment within the meaning of clause 15 of the Letters Patent it has to be
found out that the order affects the merits of the action between the parties
by determining some right or liability. The right or liability is to be found
out by the court. The nature of the order will have to be examined in order to
ascertain whether there has been a determination of any right or
liability".
(Emphasis ours) 251 Thus, having noticed the
ratio of some of the cases of this Court referred to above, regarding the tests
to determine the import and meaning of the word 'judgment' we now proceed to
deal with the specific question after interpreting cl.15 of the Letters Patent
of the Bombay High Court and the corresponding clauses of Letters Patent of
other High Courts. We shall endeavour to interpret the connotation and the
import of the word 'judgment' particularly in the light of pertinent and
pointed observations made by this Court on earlier occasions as discussed
above.
The relevant portion of cl. 15 of the Letters
Patent may be extracted thus :- "We do further ordain that an appeal shall
lie to the said High Court of Judicature at Madras, Bombay, Fort William in
Bengal from the judgment.. ....... of one Judge of the said High Court.. "
Clause 15 makes no attempt to define what a judgment is. As Letters Patent is a
special law which carves out its own sphere, it would not be possible for us to
project the definition of the word 'judgment' appearing in s. 2 (9) of the Code
of 1908, which defines 'judgment' into the Letters Patent:
"judgment' means the statement given by
the Judge of the grounds of a decree or order".
In Mt. Shahzadi Begam v. Alak Nath and Ors.,
Sulaiman, C.J., very rightly pointed out that as the Letters Patent were drafted
long before even the Code of 1882 was passed, the word 'judgment' used in the
Letters Patent cannot be relatable to or confined to the definition of
'judgment' as contained in the Code of Civil Procedure which came into
existence long after the Letters Patent were given. In this connection, the
Chief Justice observed as follows :- "It has been held in numerous cases
that as the Letters Patent were drafted long before even the earlier Code of
1882 was passed, the word 'judgment' used therein does not 252 mean the
judgment as defined in the existing Code of Civil Procedure. At the same time
the word 'judgment' does not include every possible order, final, preliminary
or interlocutory passed by a Judge of the High Court".
We find ourselves in complete agreement with
the observations made by the Allahabad High Court on this aspect of the matter.
The definition of the word 'judgment' in
sub-s. (9) of s. 2 of the Code of 1908 is linked with the definition of
'decree' which is defined in sub-s. (2) of s. 2 thus:
"decree" means the formal
expression of an adjudication which, so far as regards the Court expressing it,
conclusively determines the rights of the parties with regard to all or any of
the matters in controversy in the suit and may be either preliminary or final.
It shall be deemed to include the rejection of a plaint and the determination
of any question within section 47 or section 144, but shall not include- (a)
any adjudication from which an appeal lies as an appeal from an order, or (b)
any order of dismissal for default.
Explanation:-A decree is preliminary when
further proceedings have to be taken before the suit can be completely disposed
of. It is final when such adjudication completely disposes of the suit. It may
be partly preliminary and partly final".
Thus, under the Code of Civil Procedure, a
judgment consists of the reasons and grounds for a decree passed by a court. As
a judgment constitutes the reasons for the decree it follows as a matter of
course that the judgment must be a formal adjudication which conclusively
determines the rights of the parties with regard to all or any of the matters
in controversy. The concept of a judgment as defined by the Code of Civil
Procedure seems to be rather narrow and the limitations engrafted by sub-s. (2)
of s. 2 253 cannot be physically imported into the definition of the word
'judgment' as used in cl. 15 of the Letters Patent because the Letters Patent
has advisedly not used the terms 'order' or 'decree' anywhere. The intention,
therefore, of the givers of the Letters Patent was that the word 'judgment'
should receive a much wider and more liberal interpretation than the word
'judgment' used in the Code of Civil Procedure. At the same time, it cannot be
said that any order passed by a Trial Judge would amount to a judgment;
otherwise there will be no end to the number of orders which would be
appealable under the Letters Patent.
It seems to us that the word 'judgment' has
undoubtedly a concept of finality in a broader and not a narrower sense.
In other words, a judgment can be of three
kinds :.
(1) A Final Judgment-a judgment which decides
all the questions or issues in controversy so far as the Trial Judge is
concerned and leaves nothing else to be decided. This would mean that by virtue
of the judgment, the suit or action brought by the plaintiff is dismissed or
decreed in part or in full. Such an order passed by the Trial Judge
indisputably and unquestionably is a judgment within the meaning of the Letters
Patent and even amounts to a decree so that an appeal would lie from such a
judgment to a Division Bench (2) A preliminary judgment-This kind of a judgment
may take two forms-(a) where the Trial Judge by an order dismisses the suit
without going into the merits of the suit but only on a preliminary objection
raised by the defendant or the party opposing on the ground that the suit is
not maintainable. Here also, as the suit is finally decided one way or the
other, the order passed by the Trial Judge would be a judgment finally deciding
the cause so far as the Trial Judge is concerned and therefore appealable to
the larger Bench. (b) Another shape which a preliminary judgment may take is
that where the Trial Judge passes an order after hearing the preliminary
objections raised by the defendant relating to maintainability of the suit,
e.g., bar of jurisdiction, res Judicata, a manifest defect in the suit, absence
of notice under section 80 and the like, and these objections are decided by
the Trial Judge 254 against the defendant, the suit is not terminated but
continues and has to be tried on merits but the order of the Trial Judge
rejecting the objections doubtless adversely affects a valuable right of the
defendant who, if his objections are valid, is entitled to get the suit
dismissed on preliminary grounds. Thus, such an R order even though it keeps
the suit alive, undoubtedly decides an important aspect of the trial which
affects a vital right of the defendant and must, therefore, be construed to be
a judgment so as to be appealable to larger Bench.
(3) Intermediary or Interlocutory
judgment-Most of the interlocutory orders which contain the quality of finality
are clearly specified in clauses (a) to (w) of order 43 Rule 1 and have already
been held by us to be judgments within the meaning of the Letters Patent and,
therefore, appealable. There may also be interlocutory orders which are not
covered by o. 43 R.1 but which also possess the characteristics and trappings
of finality in that, the orders may adversely affect a valuable right of the
party or decide an important aspect of the trial in an ancillary proceeding.
Before such an order can be a judgment the adverse effect on the party
concerned must be direct and immediate rather than indirect or remote. For
instance, where the Trial Judge in a suit under order 37 of the Code of Civil
Procedure refuses the defendant leave to defend the suit, the order directly
affects the defendant because he loses a valuable right to defend the suit and
his remedy is confined only to contest the plaintiff's case on his own evidence
without being given a chance to rebut that evidence. As such an order vitally
affects a valuable right of the defendant it will undoubtedly be treated as a
judgment within the meaning of the Letters Patent so as to be appealable to a larger
Bench. Take the converse case in a similar suit where the trial Judge allows
the defendant to defend the suit in which case although the plaintiff is
adversely affected but the damage or prejudice caused to him is not direct or
immediate but of a minimal nature and rather too remote because the plaintiff
still possesses his full right to show that the defence is 255 false and
succeed in the suit. Thus, such an Order passed by the Trial Judge would not
amount to a judgment within the meaning of cl. 15 of the Letters Patent but
will be purely an interlocutory order.
Similarly, suppose the Trial Judge passes an
Order setting aside an exparte decree against the defendant, which is not
appealable under any of the clauses of O. 43 R.1 though an order rejecting an
application to set aside the decree passed exparte falls within O. 43 R.l cl.
(d) and is appealable, the serious question that arises is whether or not the
order first mentioned is a judgment within the meaning of Letters Patent. The
fact, however, remains that the order setting aside the ex-parte decree puts
the defendant to a great advantage and works serious injustice to the plaintiff
because as a consequence of the order, the plaintiff has now to contest the
suit and is deprived of the fruits of the decree passed in his favour. In these
circumstances, therefore, the order passed by the Trial Judge setting aside the
ex parte decree vitally affects the valuable rights of the plaintiff and hence
amounts to an interlocutory judgment and is therefore, appealable to a larger
Bench.
In the course of the trial, the Trial Judge
may pass a number of orders whereby some of the various steps to be taken by
the parties in prosecution of the suit may be of a routine nature while other
orders may cause some inconvenience to one party or the other, e.g., an order
refusing an adjournment, an order refusing to summon an additional witness or
documents, an order refusing to condone delay in filing documents, after the
first date of hearing an order of costs to one of the parties for its default
or an order exercising discretion in respect of a procedural matter against one
party or the other. Such orders are purely interlocutory and cannot constitute
judgments because it will always be open to the aggrieved party to make a
grievance of the order passed against the party concerned in the appeal against
the final judgment passed by the Trial Judge.
Thus, in other words every interlocutory
order cannot be regarded as a judgment but only those orders would be judgments
which decide matters of moment or affect vital and valuable rights 256 of the
parties and which work serious injustice to the party concerned. Similarly,
orders passed by the Trial Judge deciding question of admissibility or
relevancy of a document also cannot be treated as judgments because the
grievance on this score can be corrected by the appellate court in appeal
against the final judgment.
We might give another instance of an
interlocutory order which amounts to an exercise of discretion and which may yet
amount to a judgment within the meaning of the Letters Patent. Suppose the
Trial Judge allows the plaintiff to amend his plaint or include a cause of
action or a relief as a result of which a vested right of limitation accrued to
the defendant is taken away and rendered nugatory. It is manifest that in such
cases, although the order passed by the trial Judge is purely discretionary and
interlocutory it causes gross injustice to the defendant who is deprived of a
valuable right of defence to the suit. Such an order, therefore, though
interlocutory in nature contains the attributes and characteristics of finality
and must be treated as a judgment within the meaning of the Letters Patent.
This is what was held by this Court in Shanti Kumar's case (supra), as
discussed above.
Let us take another instance of a similar
order which may not amount to a judgment. Suppose the Trial Judge allows the
plaintiff to amend the plaint by adding a particular relief or taking an
additional ground which may be inconsistent with the pleas taken by him but is
not barred by limitation and does not work serious injustice to the defendant
who would have ample opportunity to disprove the amended plea taken by
plaintiff at the trial. In such cases, the order of the Trial Judge would only
be a simple interlocutory order without containing any quality of finality and
would therefore not be a judgment within the meaning of cl. 15 of the Letters
Patent The various instances given by us would constitute sufficient guidelines
to determine whether or not an order passed by the Trial Judge is a judgment
within the meaning of the Letters Patent. We must however hasten to add that
instances given by us are illustrative and not exhaustive.
We have already referred to the various tests
laid down by the Calcutta, Rangoon and Madras High Courts. So far as the
Rangoon High Court is concerned we have already pointed out that the strict
test that an order passed by the Trial Judge would be a judgment only if it
amounts to a decree 257 under the Code of Civil Procedure, is legally erroneous
and opposed to the very tenor and spirit of the language of the Letters Patent.
We, therefore, do not approve of the test laid down by the Rangoon High Court
and that decision therefore has to be confined only to the facts of that
particular case because that being a case of transfer, it is manifest that no
question of any finality was involved in the order of transfer. We would like
to adopt and approve of generally the tests laid down by Sir White, C.J. in
Tuljaram Row's case (supra) (which seems to have been followed by most of the
High Court’s) minus the broader and the wider attributes adumbrated by Sir
White, C.J. Or more explicitly by Krishnaswamy Ayyar, J. as has been referred
to above.
Apart from the tests laid down by Sir White,
C.J., the following considerations must prevail with the court:
(1) That the Trial Judge being a senior court
with vast experience of various branches of law occupying a very high status
should be trusted to pass discretionary or interlocutory orders with due regard
to the well settled principles of civil justice. Thus, any discretion exercised
or routine orders passed by the Trial Judge in the course of the suit which may
cause some inconvenience or, to some extent, prejudice one party or the other
cannot be treated as a judgment otherwise the appellate court (Division Bench)
will be flooded with appeals from all kinds of orders passed by the Trial
Judge. The courts must give sufficient allowance to the Trial Judge and raise a
presumption that any discretionary order which he passes must be presumed to be
correct unless it is ex facie legally erroneous or causes grave and substantial
injustice.
(2) That the interlocutory order in order to
be a judgment must contain the traits and trappings of finality either when the
order decides the questions in controversy in an ancillary proceeding or in the
suit itself or in a part of the proceedings.
(3) The tests laid down by Sir White, C.J. as
also by Sir Couch, C.J. as modified by later decisions of the Calcutta High
Court itself which have been dealt with by us elaborately should be borne in
mind.
258 Thus, these are some of the principles
which might guide a Division Bench in deciding whether an order passed by the
Trial Judge amounts to a judgment within the meaning of the Letters Patent. We
might, however, at the risk of repetition give illustrations of interlocutory
orders which may be treated as judgments:
(1) An order granting leave to amend the
plaint by introducing a new cause of action which completely alters the nature
of the suit and takes away a vested right of limitation or any other valuable
right accrued to the defendant (2) An order rejecting the plaint.
(3) An order refusing leave to defend the
suit in an action under Order 37, Code of Civil Procedure.
(4) An order rescinding leave of the Trial
Judge granted by him under clause 12 of the Letters Patent.
(5) An order deciding a preliminary objection
to the maintainability of the suit on the ground of limitation, absence of notice
under s. 80, bar against competency of the suit against the defendant even
though the suit is kept alive.
(6) An order rejecting an application for a
judgment on admission under order 12 Rule 6.
(7) An order refusing to add necessary
parties in a suit under s. 92 of the Code of Civil Procedure.
(8) An order varying or amending a decree.
(9) An order refusing leave to sue in forma
pauperis.
(10) An order granting review.
(11) An order allowing withdrawal of the suit
with liberty to file a fresh one.
(12) An order holding that the defendants are
not agriculturists within the meaning of the special law.
(13) An order staying or refusing to stay a
suit under s. 10 of the Code of Civil Procedure.
259 (14) An order granting or refusing to
stay execution of the decree.
(15) An order deciding payment of court fees
against the plaintiff.
Here, it may be noted that whereas an order
deciding the nature of the court fees to be paid by the plaintiff would be a
judgment but this order affects only the plaintiff or the Government and not
the defendant. Thus, only the plaintiff or the Government as the case may be
will have the right to file an appeal in the Division Bench and not the
defendant because the question of payment of court fees is a matter between the
Government and the plaintiff and the defendant has no locus in this regard.
We have by way of sample laid down various
illustrative examples of an order which may amount to judgment but it is not
possible to give such an exhaustive list as may cover all possible cases. Law
with its dynamism, pragmatism and vastness is such a large ocean that it is
well-nigh impossible for us to envisage or provide for every possible
contingency or situation so as to evolve a device or frame an exhaustive
formula or strategy to confine and incarcerate the same in a straitjacket. We,
however, hope and trust that by and large the controversy raging for about a
century on the connotation of the term 'judgment' would have now been settled
and a few cases which may have been left out, would undoubtedly be decided by
the court concerned in the light of the tests. Observations and principles
enunciated by us.
In the instant case, as the order of the
Trial Judge was one refusing appointment of a receiver and grant of an ad-interim
injunction, it is undoubtedly a judgment within the meaning of the Letters
Patent both because in view of our judgment, order 43 Rule 1 applies to
internal appeals in the High Court and apart from it such an order even on
merits contains the quality of finality and would therefore be a judgment
within the meaning of cl. 15 of the Letters Patent. The consistent view taken
by the Bombay High Court in the various cases noted above or other cases which
may not have been noticed by us regarding the strict interpretation of cl. 15
of the Letters Patent are hereby overruled and the Bombay High Court is
directed to decide the question in future in the light of our decision. We,
therefore, hold that the order passed by the Trial Judge in the instant case
being a judgment within the meaning of cl. 15 of the 260 Letters Patent, the
appeal before the Division Bench was maintainable and the Division Bench of the
High Court was in error in dismissing the appeal without deciding it on merits.
We have already directed the High Court to decide the appeal on merits by our
formal order dated April 22, 1981.
Before closing this judgment we may indicate
that we have refrained from expressing any opinion on the nature of any order
passed by a Trial Judge in any proceeding under Art. 226 of the Constitution
which are not governed by the Letters Patent but by rules framed under the Code
of Civil Procedure under which in some High Courts writ petitions are heard by
a Division Bench. In other High Court writ petitions are heard by a Single
Judge and a right of appeal is given from the order of the Single Judge to the
Division Bench after preliminary hearing, In the circumstances we make no order
as to costs.
AMARENDRA NATH SEN, J. The only question
which falls for determination in this appeal by special leave is whether an
order passed by a Single Judge on the original side of the Bombay High Court
refusing to grant an injunction or to appoint a receiver in an interlocutory
application made in the suit, is appealable or not ? In other words, the
maintainability of an appeal filed before a Division Bench of the Bombay High
Court against an order of a learned single Judge of the High Court dismissing
an interlocutory application for injunction and for appointment of a receiver
by way of interim relief pending final disposal of the suit in the original
side of the High Court, forms the subject- matter of the present appeal.
The question is of some importance, as there
appears to be no uniformity of the view amongst the various High Courts on the
competence and the maintainability of such an appeal.
The appellant has filed in the original side
of the Bombay High Court a suit for specific performance of an agreement dated
12th January, 1979. In the said suit the appellant, as plaintiff in the suit,
took out a notice of motion seeking the following reliefs:- (a) that pending
the hearing and final disposal of the suit, the respondent i.e. the defendant
in the suit, be restrained by an order and injunction from in any 261 manner
dealing with or disposing of or alienating or A encumbering the right, title
and interest in respect of the said lands and the said land or any part thereof
or parting possession of the said land or any part thereof;
(b) that pending the hearing and final
disposal of the suit, the Court receiver High Court Bombay or some other fit
and proper person be appointed receiver of the said lands which forms the
subject-matter of the agreement, with all powers under 0.40, rule I of the Code
of Civil Procedure;
(c) ad-interims in terms of prayers (a) (b);
and (d) for such further and other reliefs as the nature and circumstances of
the case may require.
A learned single Judge dealing with the said
application of the appellant on the original side of the Bombay High Court
dismissed the said application. Against the order of the learned single Judge,
the appellant preferred an appeal to the High Court of Bombay. A preliminarily
objection has been raised before the appellate Court as to the maintainability
of the appeal on the ground that no appeal lay from the order of the learned
Single Judge on the original side of the High Court, as the order could not be
considered to be a 'judgment' within the meaning of cl. IS of the Letters
Patent and the appeal was incompetent and not maintainable. The appellate Court
for reasons recorded in the Judgment upheld the said preliminary objection,
holding that the order under appeal was not a judgment and no appeal would lie
from the said order and the appeal, therefore was incompetent and not maintainable.
Against the order of the Division Bench of
the Bombay High Court, the appellant has preferred this appeal by special leave
granted by this Court.
After the hearing of the appeal was
concluded, this Court in view of the urgency of the matter passed an order
allowing the appeal and remanding the matter to the Bombay High Court for
decision of the appeal on merits and this Court observed at the time of the
passing of the order that this Court would state reasons later on. The full
text of the order has been set out in the judgment of my learned brother Fazal
Ali. J.
262 I have had the benefit of reading the
judgment of my learned brother Fazal Ali, J. in advance. I concur generally
with the views expressed by my learned brother. 1, however, propose to state my
own reasons for the order earlier passed by us.
The learned counsel appearing on behalf of
the respective parties invited us only to decide the question of appealability
of the order under appeal without going into the merits of the case. The
learned counsel for the parties have submitted before us that there is a
conflict of decisions on the question of appealability of an order of this kind
and maintainability of an appeal from such an order and this Court should
resolve the conflict and decide the question of appealability of such an order
and necessarily the maintainability of the appeal to a Division Bench of the
High Court. It has been further submitted before us that in the event of this
Court holding that an appeal lay from the order in question and an appeal to
the Division Bench from the order was competent and maintainable, this Court
should remand the appeal to the High Court for decision on merits and should
not in this appeal go into the merits of the case. The learned counsel for the
parties, in view of the aforesaid submissions made, did not advance any
arguments on the merits of the case before us.
The only question with which we are concerned
in this appeal, as I have already indicated, therefore, is whether the order of
the learned Single Judge refusing to grant an injunction or to appoint a
receiver on the interlocutory application of the appellant, is appeal able or
not; or, whether the appeal against the order of the learned Single Judge to
the Division Bench of the High Court is competent and maintainable or not.
Mr. Sorabjee, learned counsel appearing on
behalf of the appellant, has raised two principal contentions. The first
contention urged by Mr. Sorabjee is that in view of the provisions contained in
S. 104 of the Code of Civil Procedure read with order 43 thereof, the order is
appealable under the Code and an appeal from the order becomes clearly
maintainable. The other contention raised by Mr. Sorabjee is that the order
should in any event be considered to be a judgment within the meaning of clause
IS of the Letters Patent, bearing in mind the provisions contained in S. 104 of
the Code of Civil Procedure and also order 43 thereof.
In support of his first contention, Mr.
Sorabjee has argued that an appeal is a creature of statute and in the absence
of any 263 statutory provisions making any other appealable no appeal will A
normally lie against any order passed by a single Judge. Mr. Sorabjee contends
that cl. I S of the Letter Patent makes such provision for an appeal being
filed against any order passed by a learned Single Judge on the original side
of the High Court. It is the contention of Mr. Sorabjee that as Cl. 15 of the
Letters Patent makes provision for preferring an appeal against an order passed
by a learned Single Judge on the original side, provided the conditions laid
down in the said clause are satisfied, Code of Civil Procedure and various
other Statutes also make provision regarding appeal from orders passed by a
learned Single Judge. Mr. Sorabjee has submitted that the Code of Civil
Procedure confers substantive rights of preferring appeals against particular
orders specified in the Code. In this connection Mr. Sorabjee has drawn our
attention to S.
104 and also order 43 of the Code of Civil
Procedure. Mr. Sorabjee argues that the Code of Civil Procedure confers a right
of appeal on a litigant in respect of the orders which have been made
statutorily appealable by the provisions contained in S. 104 and order 43 of
the Code of Civil Procedure. It is the argument of Mr. Sorabjee that the Code
of Civil Procedure makes inter-alia general provisions with regard to appeals
and also specifically confers on the litigant a right in respect of various
orders, just as various other statutes make special or specific provisions with
regard to the right of appeal in respect of any order under the particular
statute. Mr. Sorabjee has submitted that S. 104 of the Civil Procedure Code and
order 43 thereof clearly apply to the original side of a High Court. In support
of these submissions, Mr. Sorabjee has drawn our attention to the various
provisions of the Code and particularly to Ss. 4, 98-104, 116 to 120, and S.
122 and to order 43 rule 1 thereof. Mr. Sorabjee in this connection has also
relied on the following decisions :-
1. Mathura Sundari Dass v. Haran Chandra
Shall(1)
2. Lea Badin v. Upendra Mohan Roy Choudhary
(2)
3. Union of India v. Mohindra Supply Co. (3)
4. Kumar Gangadhar Bagla v. Kanti Chander
Mukherji (4)
5. Sonbai v. Ahmedbhai Habibhai (5) 264 Mr.
Sorabjee has criticised the view expressed by the Bombay High Court that S. 104
of the Code of Civil Procedure and order 43 thereof do not apply to an order
passed by a learned Single Judge on the original side of the High Court and an
order passed by a learned Single Judge on the original side can only become
appealable if the order can be said to be a 'judgment' within the meaning of
cl. 15 of the Letters Patent. Mr. Sorabjee comments that cl. IS of the Letters
Patent does not, in any way, seek to control or curb the provisions contained
in S. 104 and order 43 of the Code of Civil Procedure. He submits that a plain
reading of the various sections of the Code of Civil Procedure make it clear
that the pro visions contained in S. 104 and order 43 of the Code are
applicable to the original side of the High Court. It is his submission that
the provisions of the Code and the provisions contained in cl. 15 of the
Letters Patent are not at all in conflict, as, clause IS of the Letters Patent
may make such orders which may not be appealable under the Code, still
appealable as judgment under cl. 15 of the Letters. Patent. In other words, it
is the submission of Mr. Sorabjee that cl. IS of the Letters Patent and the
provisions of the Code are indeed supplementary to each other.
Mr. Sorabjee has fairly submitted that before
the Division Bench of the Bombay High Court this argument that the order is
appealable under the provisions of the Code and the appeal is, there- t fore,
competent was not advanced. It is his submission that this argument was not
advanced before the Division Bench of the Bombay High Court, as the view of the
Bombay High Court has been that the provisions of S. 104 and of order 43 of the
Code of Civil Procedure do not apply to the original side of the Bombay High
Court. Mr. Sorabjee has argued that though in this appeal this aspect was not
argued before the Division Bench of the Bombay High Court, he is entitled to
urge this point before this Court as this point is a pure point of law.
Mr. Sorabjee has next contended that in any
event the order under appeal should be considered to be a judgment within the
meaning of cl. 15 of the Letters Patent. He argues that the word 'judgment' in
clause 15 of the Letters Patent should be construed liberally so as to include
within its fold any order which has been made appealable by virtue of the
provisions contained in the Code or in any other statute. He submits that such
an interpretation will be in conformity with the principles of justice and will
truly reflect intention of the Legislature and will avoid any kind of conflict
265 between the provisions contained in cl. 15 of the Letters Patent and A the
provisions contained in the Code of Civil Procedure and in any other statute.
It is his submission that the word 'judgment' in cl. 15 of the Letters Patent
may include various other orders which may not otherwise be appealable under
the provisions of the Code or any other Statute but may still become appealable
as 'judgment' by virtue of the provisions contained in the Letters Patent. In
other words, it is the contention of Mr. Sorabjee that the expression
'judgment' in cl. 15 of the Letters Patent should be so construed as to include
necessarily all orders which are appealable under any statute and also in appropriate
cases various other orders which are not expressly made appealable by any
statute. He contends that the provisions of the Code contained S. 104 and order
43 or in any other statute with regard to the appealability of any order do not
have the effect of curtailing or affecting the special jurisdiction and power
of the Court of entertaining an appeal from any other order, if the Court is
satisfied that the order is in effect a judgment within the meaning of cl.
15 of the Letters Patent. Mr. Sorabjee has
submitted that as to the true meaning, effect and import of the word 'judgment'
in cl. 15 of the Letters Patent, there is a divergence of judicial opinion, and
the word `judgment' has come up for consideration before various Courts in many
cases. In this connection, Mr. Sorabjee has referred to the following decisions
:-
1. The Justice of the Peace for Calcutta v.
The Orientatal Gas Co. Ltd. (1)
2. T.V. Tulzaram Row v. M.K.R.V.
Allagappachettiar (2)
3. Ruldu Singh v. Sanwal Singh (3)
4. Shah Hari Dial & Sons v. Sohnamal
Beliram (4)
5. In Re: Dayabhai Jiwandas and Ors. v.
A.M.M. Muru- gappa Chettiar (5)
6. Abdul Samad & Ors. v. State of J.
& K. (6) 266
7. Standard Glass Beads Factory v. Shri Dhar
& Ors.(1)
8. Sri Raja Vallanki Venkata Chinnayamma Rao
Bahadur Zimidarni Garu v. Sri Raja Kotagiri Subemma Rao Bahadur Zimidarni Garu
(2)
9. Chitaranjan Mandal v. Shankar Prosad
Sahani (3)
10. Manohar Damadar Bhoot v. Baliram Ganpat
Bhoot (4)
11. Masanta Film Distributors Calcutta v.
Sorab Marwanji Modi (5)
12. J.K. Chemicals Ltd. v. Kreba and Co.(6)
13. Kedar Nath Mitter v. Denobandhu Shaha(7)
14. Shorab Merwanji Modi and Anr. v. Mansata
Film Distributors and Anr.(8)
15. M.B. Sarkar and Sons v. Powell and Co.(9)
16. Asrumati Devi v. Kumar Rupendra Deb Rai
and Ors.(10)
17. State of U.P. v. Dr. Vijay Anand
Maharaj(11)
18. National Bell Co. v. Metal Goods Co. (P)
Ltd.(12)
19. Shanti Kumar R. Canji v. The Home
Insurance Co. Of New York(13) Mr. Sorabjee has submitted that this Court should
lay down the guidelines or enumerate the principles to remove the confusion and
resolve the conflict in the sphere of judicial determination as 267 to what
constitutes 'judgment' within the meaning of cl 15 of the Letters Patent.
Mr. Kapadia and Mr. Venugopal, learned counsel
for the Respondents, have submitted that the provisions of the Code of Civil
Procedure contained in S. 104 and order 43 thereof are not applicable to the
original side of the Bombay High Court which is a Chartered High Court in view
of the provisions contained in cl. 15 of the Letters Patent. They have argued
that special jurisdiction has been conferred in the matter of preferring an
appeal against an order of a Single Judge on the original side of a Chartered
High Court by cl. 15 of the Letters Patent and this special jurisdiction of the
High Court cannot in any way be affected by the provisions of the Code. In
support of this contention reference has been made to Ss. 3 and 4 of the Code
of Civil Procedure and particular reliance has been placed on S. 4.
They have also strongly relied on the
decision of the Bombay High Court in the case of Vaman Raoji Kulkarni v. Nagesh
Vishnu Joshi(1) and also on the decision of the same High Court in the case of
J.K. Chemicals Ltd. v. Kreba and Co.
(supra). They have submitted that these
judgments for cogent reasons recorded therein represent correct law and the
view expressed by the Bombay High Court to the effect that S. 104 and order 43
of the Code of Civil Procedure do not apply to the original side of the Bombay
High Court, has been consistently followed by the Bombay High Court and should
be upheld by this Court. They have also relied on the following observations of
the Judicial Committee in the case of Hurrish Chunder Chowdhry v. Kali Sundari
Debia(2) at p. 17:- "It only remains to observe that their Lordships do
not think that sec. 588 of Act X. Of 1877, which has the effect of restricting
certain appeals, applies to such a case as this, where the appeal is from one
of the Judges of the Court to the full Court." They have argued that if
the provisions of the Code are not held to be applicable to the original side
of the Bombay High Court, then the appeal from the order of the learned Single
Judge can only be maintained if the order becomes a 'judgment' within the
meaning 268 of cl. 15 of the Letters Patent. They have contended that an order
on an interlocutory application refusing to grant an injunction or appoint a
receiver cannot be considered to be a 'judgment within the meaning of cl. 1 S
of the Letters Patent, as such an order virtually does not decide anything and
does not in any way affect the merits of the suit. They have also relied on the
decisions which were cited by Mr. Sorabjee and they have placed particular
reliance on the decision of the Bombay High Court in the case of J.K. Chemicals
Ltd. v. Kreba and Co. (supra). Mr. Kapadia and Mr. Venugopal have both pointed
out to us that the question of appealability of the order under the provisions
of the Code was not argued before the High Court in the instant case and was
sought to be argued for the first time in this Court.
Both of them, however, have fairly stated
that the question is one of law and one of of considerable importance and the
Court should decide the same.
I propose to deal with the question of
applicability of the provisions contained in S. 104 and order 43 of the Code of
Civil Procedure to the original side of the Bombay High Court in the first
instance. Before I deal with the contentions urged by the counsel for the
respective parties, it will be convenient to consider the relevant provisions
of the Code. S. I of the Code makes it clear that the Act is applicable to
whole of India excepting the places mentioned in the said section and the Act,
therefore, applies to Maharashtra. S. 3 of the Code provides that for the
purpose of this Code, the District Court is subordinate to the High Court, and
every Civil Court of a grade inferior to that of a District Court and every
Court of Small Causes is subordinate to the High Court and District Court.
S. 4 of the Code reads:- "(1) In the
absence of any specific provision to the contrary, nothing in this Code shall
be deemed to limit or otherwise affect any special or local law now in force or
any special jurisdiction or power conferred, or any special form of procedure
prescribed, by or under any other law for the time being in force.
(2) In particular and without prejudice to
the generality of the proposition contained in sub- section (1), nothing in
this Code shall be deemed to limit or otherwise 269 affect any remedy which a
landholder or landlord may have under any law for the time being in force for
the recovery of lent of agricultural land form the produce of such land."
S. 5 of the Code deals with the applicability of the provisions of the Code to
Revenue Courts. S. 100 of the Code deals with appeals from Appellate Decree and
S. 100-A which has been introduced into the Code w.e.f. 1.2.1977 by the
Amending Act, 104 of 1976 provides that notwithstanding anything contained in
Letters Patent for any High Court or in any other instrument having the force
of law or in any other law for the time being in force, where any appeal from
an appellate decree or order is heard and decided by a single Judge of a High
Court, no further appeal shall lie from the judgment, decision or order of such
Single Judge in such appeal or from any decree passed in such appeal. The
material provisions of S. 104 are:- "S. 104 (1); An appeal shall lie from
the following orders, and save as otherwise expressly provided in the body of
this Code or by any law for the time being in force, from no other orders :- x
x x x x x x x (ff) an order under S. 35A;
(fa) an order under S. 91 or S. 92 refusing
leave to institute a suit of the nature referred to in S.
91 or S. 92 as 'the case may be;
(g) an order under S 95;
(h) an order under any of the provisions of
this Code imposing a fine or directing the arrest or detention in the Civil
prison of any person except where such arrest or detention is in execution of a
decree;
(i) any order made under rules from which an
appeal is expressly allowed by rules;
Provided that no appeal shall lie against any
order specified 270 in clause (i) save on the ground that no order, or an order
for the payment of a less amount, ought to have been made.
(2) No appeal shall lie from any order passed
in appeal under this section. " Sections 105 and 106 may also be quoted:-
"(1) Save as otherwise expressly provided no appeal shall lie from any
order made by a Court in the exercise of its original or appellate
jurisdiction; but, where a decree is appealed from, any error, defect or
irregularity in any order, affecting the decision of the case, may be set forth
as a ground of objection in the memorandum of appeal;
(2) Notwithstanding anything contained in
sub-section (1), where any party aggrieved by an order of remand from which an
appeal lies does not appeal the reform, he shall thereafter be precluded from
disputing its correctness.
S. 106: Where an appeal from any order is
allowed it shall lie to the Court to which an appeal would lie from the decree
in the suit in which such order was made, or where such order is made by a
court (not being a High Court) in the exercise of appellate jurisdiction, then
to the High Court.'' Special provisions relating to the High Courts, not being
the court of a Judicial Commissioner, are made in para IX of the Code which
consists of five sections namely Ss.
116 to 120 and the said sections are as
follows:- "S. 116: This Part applies only to High Courts not being the
Court of a Judicial Commissioner.
S. 117: Save as provided in this Part or in
part X or in rules, the provisions of this Court shall apply to such High
Courts.
S. 118: Where any such High Court considers
it necessary that a decree passed in the exercise of its original civil
jurisdiction should be executed before the amount of 271 the costs incurred in
the suit can be ascertained by taxation, the Court may order that the decree
shall be executed forthwith, except as to so much thereof as relates to the costs:
and, as to so much thereof as relates to the
costs, that the decree may be executed as soon as the amount of the costs shall
be ascertained by taxation.
S. 119: Nothing in this Code shall be deemed
to authorise any person on behalf of another to address the Court in the
exercise of its original civil jurisdiction, or to examine witnesses, except
where the Court shall have in the exercise of the power conferred by its
charter authorised him so to do, or to interfere with the power of the High
Court to make rules concerning advocates, vakils and attorneyes.
S. 120: The following provisions shall not
apply to the High Court in the exercise of its original civil jurisdiction,
namely, secs. 16, 17 and 20.
S. 122 empowers the High Courts, not being
the Court of a Judicial Commissioner to make rules regulating their own
procedure and the procedure of the Civil Courts subjects to their
superintendence. S. 129 further provides:
"Notwithstanding anything in this Code,
any High Court not being the Court of a Judicial Commissioner may make such
rules not inconsistent with the Letters Patent or order or other law
establishing of it to regulate its own procedure in the exercise of its
original civil jurisdiction as it shall think fit, and nothing herein contained
shall affect the validity of any such rules in force at the commencement of
this Code.
The material provisions contain in O. XLIII
of the Code of Civil Procedure may be set out:
"An appeal shall lie from the following
orders under the provisions of S. 104, namely:- x x x x x x x x 272 (q) an
order under rule 2, rule 3 or rule 6 of order XXXVIII:
(r) an order under rule 1, rule 2, rule 2A,
rule 4 or rule 10 of O. XXXIX;
(s) an order under rule 1, or rule 4 of order
XL.
x x x x
2. The rules of O. XLI shall apply, so far as
may be, to appeals from orders." On a proper analysis of the relevant
provisions of the Code there cannot be, in my opinion, any manner of doubt that
S. 104 and order 43 of the Code of Civil Procedure apply, to the original side
of the Bombay High Court. It is not in dispute and it cannot be disputed that
the Code of Civil Procedure applies to the High Court. S. 1 of the Code which
provides for territorial extent of the operation of the Code makes this
position abundantly clear. The argument is that S. 104 and order 43 of the Code
do not have any application to the original side of the High Court, although
various other provisions of the Code may apply to the High Court-including its
original side. This argument, as we have earlier noticed, is made mainly on the
basis of the provisions contained Ss. 3 and 4 of the Code. S. 3 of the Code
deals with subordination of Courts. It is no doubt true that a learned Single
Judge dealing with any matter on the original side discharges his duties as a
Judge of the High Court, and he can, therefore, be in no way subordinate to the
High Court. When a division Bench of a High Court hears an appeal from any
decree, order or judgment of any Single Judge of the High Court in its original
side there can be no question of any subordination of the Judge, presiding over
a Bench on the original side of the High Court to the High Court. An appeal
admittedly lies to a division Bench of the High Court from any order passed by
a learned single Judge on the original side under cl. 15 of the Letters Patent,
if the order is a 'Judgment' within the meaning of the said clause. An appeal
also admittedly lies from a decree passed by a Single Judge on the original
side of the High Court to a division Bench of the High Court. A division Bench,
properly constituted, is perfectly competent to hear an appeal from any such
order which may constitute a judgment within the meaning of cl. 15 and from any
decree by a Single Judge on the original side of the 273 High Court. In the same
way, in case of any other order in respect of which right to prefer any appeal
has been conferred by a statute, a division Bench of the High Court will be
competent to hear such an appeal. S.3 of the Code, in my opinion, has really no
bearing on the question and creates no bar to the competence and
maintainability of an appeal from an order passed by a Judge on the original
side, if the order is otherwise appealable. S. 4 of the Code has been enacted
to preserve any special or local law in force.
An analysis of the material part of this
section clearly indicates that in the absence of any specific provision to the
contrary, no provision in the Code shall be deemed to limit or otherwise affect
any special or local law in force or special jurisdiction or power conferred or
any special form of procedure prescribed by or under any Jaw for the time being
in force. The argument that S. 104 and order 43 of the Code affect the special
jurisdiction or power conferred on the High Court under cl. 15 of the Letters Patent
is, to my mind, untenable. Cl. 15 of the Letters Patent was enacted to provide
for an appeal from the Courts of original jurisdiction to the High Court in its
appellate jurisdiction and the said clause undoubtedly confers power for the
hearing of an appeal from a judgment of any judge on the original side of the
High Court. Though cl. 15 makes special provisions in relation to appeal from a
judgment of a learned single Judge on the original side, yet it cannot be said
that the side clause intended to lay down that in no other case an appeal will
lie from an order passed by any learned Judge on the original side, even if any
specific provision is made in any other statute making any other order
appealable. An appeal, it has to be remembered, is a creature of a statute and
litigant generally does not have a right of appeal against any decision of a
competent Court unless a right of appeal has been specifically conferred on the
litigant by law. Cl. 15 of the Letters Patent confers on the litigant a right to
prefer an appeal against any judgment. Any order which is considered to be a
'judgment' will be appealable by virtue of the provisions contained in cl. 15
of the Letters Patent. In the same way other statutes may confer on the
litigant the right to prefer an appeal against an order; and by virtue of the
provisions of the statute such an order shall become appealable. If any other
statute confers on the litigant any right to prefer an appeal in respect of any
other order, it cannot be said that such a provision creating a right of appeal
in any way affects the provisions contained in cl. 15 of the Letters Patent.
The special power and jurisdiction of the High court under cl. 15 to entertain
an appeal from any judgment is in no way affected and is fully retained;
274 and in addition to the said power, a High
Court may be competent to entertain other appeals by virtue of specific
statutory provisions. S. 4 of the Code cannot, therefore, be said to be in
conflict with the provisions contained in cl.
15 of the Letters Patent and S. 4 of the Code
does not limit or otherwise affect the power and jurisdiction of the High Court
under cl. 15 of the Letters Patent. On the other hand, the Code contains
specific provisions which go to indicate in which case or to which Court the
provisions of the Code, may or may not be applicable. S. S of the Code makes
specific provisions regarding the nature and manner of applicability of the
Code to Revenue Courts and the Revenue Court has also been defined in the said
section. On the other hand, in Ss. 116 to 120 it is convincingly indicated that
S. 104 and order 43 of the Code of Civil Procedure apply to the original side
of a High Court. Ss. 116 to 120 are contained in part IX of the Code which
makes special provisions relating to High Courts (not being the Court of
Judicial Commissioner). S. 117 specifically provides that the provisions of the
Code shall apply to High Court save as provided in part IX or in part X. S. 120
contained in part IX lays down that the provisions contained in Ss. 16, 17 and
20 of the Code shall not apply to the High Court in the exercise of its
original civil jurisdiction. Part X which deals with rules and manner of
framing thereof does not have any material bearing on the question of
applicability of S. 104 and order 43 of the Code to the original side of the
High Court. The effect of the special provisions contained in part IX relating
to High Courts, therefore, clearly appears to be that the provisions of the
Code have as provided in Part IX or Part X or in rules, apply to the original
side of the High Court and Ss. 16,17 and 20 of the Code do not apply to the
High Court in the exercise of its original civil jurisdiction. S. 104 of the
Code is contained in part VII which deals with appeals. Part VII of the Code
dealing with appeals consists of the sections commencing from Ss. 96 to 112.
This part VII dealing with appeals makes provisions for an appeal from original
decrees, appeals, appellate decrees, appeals from orders, general provisions
relating to appeals and also appeals to the Supreme Court.
S. 104 of the Code provides for appeals from
orders and clearly stipulates that an appeal shall lie from the orders
mentioned therein and save as otherwise expressly provided in the body of the
Code or by any law for the time being in force, from no other order. Order 43
which is attracted by S. 104 of the Code clearly provides that an appeal shall
lie from the orders mentioned in rule 1 of o. 43 under the provisions of S. 104
and the orders referred to therein particularly in (q), (r) and (s) clearly 275
indicate that the order in question is an appealable order.
As I have earlier observed that an appeal is
a creature of a statute and the right to appeal is only enjoyed, if law confers
any right. The Code of Civil Procedure clearly makes the order in question an
appealable one. The legislature has thought it fit to confer a right on the
litigant to prefer an appeal in respect of the orders mentioned in S. 104 of
the Code read with order 43 thereof. A Court will be slow to deprive a litigant
of the statutory right merely on the ground that the order in question has been
passed by a learned Judge on the original side of the High Court. It may
further be pointed out that S. 104 which makes the order under appeal and also
various other orders referred to therein appealable under the Code, recognises
that apart from the order made appealable under the Code there may be other
orders appealable by any law for the time being in force and further provides
that no appeal will lie from any orders other than the orders expressly
provided in the body of the Code or by any other law in force. The right of
appeal against a judgment of a learned single Judge on the original side under
cl. 15 of the Letters Patent is a right conferred by any other law in force. It
may be pertinent to point out in this connection that by incorporating S. 100A
in the Code (by the Amending Act 104 of 1976, S. 38), the Legislature has
thought it fit to interfere with the right of appeal in certain cases, even if
such right had been conferred by Letters Patent or any other law.
This right of appeal under cl. 15 of the
Letters Patent is in no way curtailed or affected by S. 104 of the Code of
Civil Procedure and S. 104 seeks to confer the right of preferring an appeal in
respect of the various orders mentioned therein. In other words, by virtue of
the provisions contained in S. 104(1), a litigant enjoys the right of
preferring an appeal in respect of various orders mentioned therein, even
though such orders may or may not be appealable under cl. 15 of the Letters
Patent as a judgment and the right of appeal under cl. 15 of the Letters Patent
remains clearly unimpaired. In this connection the following observations of
this Court in the case of Union of India v. Mohindra Supply Co. (supra) at p.
511 may be usefully quoted:- "The intention of the legislature in enacting
the sub-s.(1) of S. 104 is clear: the right to appeal conferred by any other
law for the time being in force is expressly preserved This intention is
emphasised by s. 4 which provides that in the absence of any specific provision
to the contrary 276 nothing in the Code is intended to limit or otherwise
affect any special jurisdiction or power conferred by or under any other law
for the time being in force. The right to appeal against judgments (which did
not amount to decrees under the Letters Patent, was therefore not affected by
s. 104(1) of the Code of Civil Procedure, 1908".
It will be apt in this connection to bear in
mind the view expressed by the Privy Council in the case of Mt. Savitri
Thakurain v. Savi and Anr.,(1) the Judicial Committee held at p. 82-83 as
follows:- "The orders and rules under the Code are by Section 121 given
the same effect as if they had been enacted in the Code, and therefore order
41, Rule 10, is one of the pro visions of the Code. It applies to appeals in
the High Court, including the present appeal, unless any particular section of
the Act can be found to exclude it. Section 104(1) is the section relied on for
this purpose It prescribes what orders shall be appealable and enumerates them,
and among the orders enumerated there is not included such an order as that
made by Choudhary, J. Out of the operation of Section 104 there are, however,
expressly excepted matters, which are otherwise expressly provided for in the
body of the Code. In order to appreciate the full effect of section 104 it
should be compared with the corresponding section of the Act of 1882, Section
588.
The earlier section enacted that appeals should
lie in certain cases, which it enumerated, 'and from no other such orders.'
This raised this question nearly whether an appeal, expressly given by Section
15 of the Letters Patent and not expressly referred to in Section 588 of the
Code of 1882, could be taken away by the general words of the section 581 and
in the wording of section 104 of the Act of 1908 is significant for it runs,
'and same as otherwise expressly provided....by any law for the time being in
force, from the other orders'.
Section 15 of the Letters Patent is such a
law, and what it expressly provides namely, an appeal to the High Court's
appellate jurisdiction from a decree of the High 277 Court in its original
ordinary jurisdiction, is thereby saved. Thus regulations duly made by orders
and Rules under the Code of Civil Procedure, 1908 are applicable to the
jurisdiction exercisable under the Letters Patent, except that they do not
restrict the express Letters Patent appeal." The effect of sub-section (1)
S. 104, therefore, is clearly not to affect any existing special or local law
or any special jurisdiction or power conferred and to preserve any existing
right of appeal whether under any statute or the Letters Patent and to create a
further right of preferring an appeal in respect of the orders enumerated
therein. C In the case of Mathura Sundari Dassi v. Haran Chandra Shaha and Ors.
(supra), Sanderson, C.J. Observed at p. 362 as follows:
"I would be very to hold that this order
is not a 'judgment' within the meaning of cl. 15 of the Letters Patent, but it
is not necessary in my judgment to give a definite opinion upon it because I
think, on the second point, the Code does give a right of appeal.
By clause 14 of the Letters Patent it is
provided as follows: 'And we do further ordain and declare that all the
provisions of these our Letters Patent are subject to the legislative powers of
the Governor-General in Council, exercised at meetings for the purpose of
making law and regulations'. By the terms of S. 117 the code is made applicable
to the High Court, and o. 43.
R. 1, gives a right of appeal in the very
case under discussion. But it is said that this Code and the rules made under
it do not apply to an appeal from a learned Judge of the High Court. I cannot
follow that argument.
It is part of the defendant's case that O.9,
R. 8 applies. That order is in effect a part of the Civil Procedure Code. It
seems to me strange that the plaintiff should be subjected to O.9, R. 8, and be
liable to have his suit dismissed for want of appearance, yet when he has had
his suit dismissed under one of the rules of the Code and wants to call in aid
another of the rules which- when his application for reinstatement has been
refused gives him a right of appeal against that refusal, he is met with the
argument that he cannot call in aid that rule because there is no appeal from
the learned Judge of the High Court under the Civil Procedure Code. I think
this 278 is not a true view or a reasonable construction to put upon the Code
and the Rules made under it. In my judgment, the Code and the rules do apply
and the plaintiff has a right of appeal." Sri Aushotosh Mookherji in his
judgment in the same case at pp. 364-365 held as follows:
"The question, consequently, arises
whether O,43, r. 1, clause (c), is applicable to an order under o. IX, r. 9,
made by a Judge on the original side of this Court.
On behalf of the appellant, reliance has been
placed upon S. 117 of the Code which lays down that 'save as provided in this
part or in part X or in rules, the High Court established under the Indian High
Courts Act, 1961.' The only provision in Part IX, which may have any possible
hearing is that contained in S.
120 which obviously does not touch the
present question. The provision in Part X, which deal with the matter, is
contained in S. 129: this also does not militate against the contention of the
appellant. The term 'rule', which finds a place in S. 117, is defined in clause
18 of S. 2 of the Code to mean 'a rule contained in the first Schedule or made
under S. 122 or S. 125'. Our attention has not been drawn to any such rule
which makes o. 43, R. 1, Clause (e), inapplicable.
On the other hand O.49, R. 3, which excludes
the operation of other rules, lends support to the contention of the appellant
that o. 43, r. 1, cl. (c) is applicable to the present appeal.
But it has been argued on behalf of the
respondents, on the authority of the decision of the Judicial Committee in
Hurriah Chandra Choudhary v. Kali Sudari Dasi that the Civil Procedure Code, in
so far as it provides for appeals, does not apply to an appeal preferred from a
decision of one Judge of a High Court to the Full Court. The true effect of the
decision of the Judicial Committee was considered by this Court in Toolses
Money Dassesv. Sudevi Dasses (1890) 25 Cal.
361) but it is not necessary for my present
purpose to determine its hearing in all its implications, because in my
opinion, the law has been substantially altered since that decision was
pronounced. S. 104 279 Of the Code of 1908 is materially different from S. 588
of Code of 1882. It provides that an appeal shall lie from the orders mentioned
in the first clause of that section, and save as otherwise expressly provided
in the body of the Code or by any law for the time being in force, from no
other orders'. The effect of S. 104 is thus, not to take away a right of appeal
given by clause IS of the Letters Patent, but to create a right of appeal in
cases even where clause 15 of the Letters Patent is not applicable. I may here
observe perethically that in the case of Tooles Money Dasses v.
Sudevi Dasses. Princep J. felt pressed by the
argument that if an appeal was deemed to have been allowed by the Code of Civil
Procedure, there was no provision for the Constitution of a Court to which such
an award might be preferred. S. 106 of the Code, however, lays down that
"where an appeal from any order is allowed, it shall lie to the Court to
which an appeal would lie from the decree in the suit in which such order was
made.' Consequently, where a right of appeal has been so given, it would be the
duty of this Court to constitute a Court of Appeal under S. 13 of the Indian
High Courts Act. 1 hold accordingly that this appeal is competent under cl.
tc), R. 1, o. 43 of the Civil Procedure Code." In the case of Lea Badin v.
Upendra Mohan Roy Chaudhry (supra), a Division Bench of the Calcutta High Court
held at p. 37 as follows:
"But there is another and far simpler
ground on which it must he held that an appeal is competent. The order in the
present case is one for which a right of appeal ii provided in cl. (s). R. 1,
o. 43 of the Code.
Under the pre sent Code (Act 5 of 1908) it
cannot be contended that the Code and the Rules made under it do not apply to
an appeal from a learned Judge of the High Court; such a contention was
elaborately dealt with and repelled in the case of 1918 Cal. 361(4)".
On a plain reading of the various provisions
of the Code and on a proper construction thereof I have no hesitation in
holding that S. 104 of the Code of Civil Procedure applies to the original side
of the High Court and the order in question is clearly appealable by virtue of
the provisions contained in S. 104(1) read with order 280 43 thereof. The
authorities to which I have referred also lend support to the view that I have
taken. A contrary view expressed by any High Court must necessarily be
considered to be wrong and incorrect. The leading decision of the Bombay High
Court in the case of Baman Rao Kulkarini v. Naresh Vishnu Joshi (supra)
proceeds on an incorrect appreciation and interpretation of the provisions of
the Code. As I have earlier discussed, there is no question of S. 104 of the
Code of Civil Procedure purporting to control of cl. 15 of the Letters Patent.
It may, on the other hand, be said that S. 104 of the Code seeks to supplement
cl. 15 of the Letters Patent by conferring a right of appeal in the case of
various orders mentioned in sub-section (1) of S. 104, which brings in its
purview S. 43 of the Code. The further approach of the Bombay High Court in
that case as to subordination of a judge of the High Court sitting singly on
the original side, is fallacious and untenable. An appeal under cl. 15 of the
Letters Patent from a judge sitting singly on the original side of the High
Court becomes competent to a division Bench and a learned judge against whose
judgment the appeal is preferred does not become subordinate to the High Court.
There is in fact no question of subordination at all.
The observations of the Judicial Committee in
the case of Hurish Chandra Choudhary v. Kali Sudari Dasi (supra) at p. 17
relied on by the learned counsel for the Respondents are of no material
assistance to them. I have already quoted the said observations of the Judicial
Committee. The said observations made in relation to the provisions of S. 588
of the Act 10 of 1877 only go to lay down that the said section which has the
affect of restricting certain appeals does not have the affect of restricting
the right of appeal under cl. 15 of the Letters Patent and does not apply to a
case where an appeal is one under cl. 15 of the Letters Patent. It may further
be noted that the law has since they said decision been substantially altered
and S. 104 of the Code of Civil Procedure of 1908 is materially different from
S. 588 of the Code of 1882. This decision of the Judicial Committee has already
come up for consideration by a division Bench of the Calcutta High Court in the
Mathura Sudari Dassi v. Haran Chandra Shaha (supra).
I, therefore, accept the first contention of
Mr. Sorabjee that the order in question is appealable under S. 104 (1) of the
Code read with order 43 thereof and the said provisions of the Code apply to
the original side of the Bombay High Court and the appeal preferred 281 from
the order of the learned single judge to the Division Bench of A the Bombay
High Court was competent and maintainable.
In view of my accepting the first contention
of Mr. Sorabjee it does not really become necessary for me to consider the
other contention raised by him, namely, that the order in question is also
appealable as a 'judgment' under cl. 15 of the Letters Patent. As elaborate
arguments have been advanced on this aspect and various decisions have been
cited, my learned brother Fazal Ali, J. has in his judgment also considered
this aspect and has dealt with various cases, in deference to the submissions
made from the bar that this Court should lay down guidelines as to what will
constitute a 'judgment' within the meaning of cl. l S of the Letters Patent.
An order which is appealable under the Code
or under any other statute becomes appealable as the statute confers a right on
the litigant to prefer an appeal against such an order. Such an order may or
may not be appealable as 'judgment' under cl. 15 of the Letters Patent. An
order which may be appealable under cl. IS of the Letters Patent as a
'judgment' becomes appealable as Letters Patent confers on the litigant a right
of appeal against such an order as 'judgment'. An order appealable under the
Letters Patent may or may not be appealable under the Code. A right of appeal
is a creature of Statute. A litigant does not have an inherent right to prefer
an appeal against an order unless such a right is conferred on the litigant by
law. Certain orders become appealable under the Code, as the Code makes such
orders appealable. Other Statutes may confer a right of appeal in respect of
any order under the Statute. The Letters Patent by cl. 15 also confers a right
to prefer an appeal against a 'judgment'. An order which satisfies the requirements
of 'judgment' within the meaning of cl. 15 becomes appealable under the Letters
Patent. What kind of an order will constitute a 'judgment' within the meaning
of cl. 15 of the Letters Patent and will become appealable as such much
necessarily depend on the facts and circumstances of each case and on the
nature and character of the order passed. The question whether a particular
order constitutes a judgment within the meaning of cl. 15 of the Letters Patent
to be appealable under the provisions thereof has come up for consideration
before the various Courts in a number of decision. Very many decisions have
been cited in the present case and they have been considered by my learned
brother, Fazal Ali, J. in his judgment. The question indeed, is not free from
difficulties and divergent views have been expressed by different Courts and by
various learned 282 Judges. This Court had also the occasion to consider as to
what may constitute a judgment within the meaning of cl. 15 of the Letters
Patent in certain cases. In the case of Shanti Kumar R. Canji v. The Home
Insurance Co. Of New York (Supra) this Court referring to the earlier decision
of this Court in the case of Asrumati Debi v. Kumar Rupendra Deb Rajkot &
ors (supra), observed at p. 550-"This Court in Asrumati Debi's case said
that a judgment within the meaning of cl. 15 of the Letters Patent would have
to satisfy two tests. First, the judgment must be the final pronouncement which
puts an end to the proceedings as far as the Court dealing with it is
concerned. Second, the judgment must involve the determination of some right or
liability though it may not be necessary that there must be a decision on
merits". This Court further observed at p. 555-"The view of the High
Courts of Calcutta and Madras with regard to the meaning of 'judgment' are with
respect preferred to the meaning of 'judgment' given by the Rangoon and Nagpur
High Court." This Court also held at p. 556-"In finding out whether
the order is a 'judgment' within the meaning of cl. IS of the Letters Patent it
has to be found out that the order affects the merits of the action between the
parties by determining some right or liability. The right or liability has to
be found out by a Court. The nature of the order will have to be examined in
order to ascertain whether there has been a determination of any right or
liability." In my opinion, an exhaustive or a comprehensive definition of
'judgment' as contemplated in ch IS of the Letters Patent cannot be properly
given and it will be wise to remember that in the Letters Patent itself, there
is no definition of the word 'judgment'. The expression has necessarily to be
construed and interpreted in each particular case. It is, however, safe to say
that if any order has the effect of finally determining any controversy forming
the subject- matter of the suit itself or any part thereof or the same affects
the question of Court's jurisdiction or the question of limitation, such an
order will normally constitute 'judgment' within the meaning of cl. IS of the
Letters Patent. I must not, however, be understood to say that any other kind
of order may not become judgment within the meaning of cl. IS of the Letters
Patent to be appealable under the provisions thereof. As already stated, it is
not necessary to decide in the present case whether the order in question would
be appealable under cl. IS of the Letters Patent as judgment; and I, therefore,
refrain from expressing any opinion on this question.
P.B. R.
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