Devidayal
Rolling Mills Vs. Prakash Chimanlal Parikh & Ors [1993] INSC 153 (24 March 1993)
Kasliwal, N.M. (J) Kasliwal, N.M. (J) Venkatachala N. (J)
CITATION:
1993 AIR 1982 1993 SCR (2) 611 1993 SCC (2) 470 JT 1993 (2) 626 1993 SCALE
(2)190
ACT:
Constitution
of India 1950.
Articles
136, 142-Special Leave Petition-Involving tenancy of property-petition
dismissed-Interlocutory application by third party after 12 years alleging
title to said property and fraud in transaction relating thereto-Held application
cannot be entertained in exercise of powers either under Article 136 or Article
142 or under Section, 47 C.P.C in disposed of Special Leave Petition.
HEAD NOTE:
Father
of respondents no.1 and 2 was the owner of the plot in dispute and respondent
no.3 was the tenant therein.
Respondents
no.1 and 2, after the death of their father, obtained a decree for eviction
against respondent no.3. In the execution proceedings the petitioners (in
S.L.P.
No.4925/77)
intervened contending that they had purchased the business along with interest
in the property in dispute from respondent no.3. They filed a declaratory suit
for being declared tenant in the said property. Their application for interim
injunction to restrain respondents 1 and 2 from executing the decree was
rejected and the revision thereupon was also dismissed by the High Court.
Their
special leave petition was dismissed on 13.12.1977.
However,
respondents no. 1 and 2 agreed not to execute the decree before 1.1.1980 on the
undertakings to be given by the petitioners and respondent no. 3. Later, an
application was riled for declaring the order dated 13.12.1977 as complied with
inasmuch as the petitioners and respondent no.3 had handed over the possession
of the property to Respondents no.1 and 2. It was also stated that a fresh
tenancy had been granted in favour of the petitioners with effect from
25.6.1978. As no objection was riled, the prayer was allowed by this Court's
order dated 11.12.1978.
Another
company (the applicant company) riled the Interlocutory Application on
23.1.1990 in the dismissed S.L.P. no.4925/77 stating that the property in
dispute belonged to a private limited company of which respon 612 dents no.1
and 2 were the only directors; that by an agreement of sale dated 31.7.1979 the
applicant company purchased 100% shares of the company of respondents no.1 and
2 and took over the entire estates of the said company. It was contended that
the property in dispute being the property of the company, shares of which were
purchased by the applicant company, respondents 1 & 2 had no right and
authority to create fresh tenancy in favour of the petitioners on 25.6.1978;
that respondents no.1 and 2 practiced a fraud upon this Court in obtaining the
order dated 11.12.1978 be making a false representation that they were owners
of the property in dispute. It was prayed inter alia that the applicant-company
be impleaded as respondent no.4 In S.L.P. No. 4925/77, the order. dated
11.12.1978 be recalled and an order of inquiry about the fraud practiced upon
this Court be made.
This
Court by its order dated 2.4.1990 directed the High Court to decide the
question of title to the property In dispute and submit Its findings to this
Court. The High Court held that the property in dispute belonged to respondents
no.1 and 2 and the applicant company was not the owner. The applicant company
filed objections to the findings recorded by the High Court and the petitioners
riled a counter to applicant's objections.
The
petitioners raised a preliminary objection to the maintainability of the
application (1. & No.1 of 1990) contending that the interlocutory
application In the dismissed special leave petition could not be filed by the
applicant company under any provision of law after a lapse of more than 12
years; that besides the lease dated 25.6.1978 never being the subject matter of
any proceedings, the applicant company was never a party to the suit or the
proceedings arising out of it and giving rise to the special leave petition.
The
applicant company contended that the application was maintainable under Section
47 C.P.C and/or under Articles 136 and 142 of the Constitution inasmuch this
Court has appellate powers from every decision of every Court or Tribunal and
Article 142 gives power to this Court to do justice In any cause or matter
raised even in a special leave petition already disposed of-, that the
petitioners having not filed any review application against the order dated
2.4.1990 were bound by the principles of acquiescence, waiver and estoppel;
that the order dated 2.4.1990 had become final and it would cause Irreparable
injury to the applicant company if that order was recalled.
613
Dismissing the interlocutory application, this Court,
HELD:
1.1.
The question of title to or fraud in any transaction in respect of an immovable
property raised for the first time by a third party by way of an interlocutory
application in a disposed of special leave petition, can not be gone into by
this Court either in exercise of its power under article 136 or Article 142 of
the Constitution or under Section 47 of the Code of Civil Procedure. [p p. 625
C-D; 626 F; 627 E] 1.2. The interlocutory application riled by the applicant
company on 23.1.1990 in the special leave petition dismissed as long ago as 12
years, was totally misconceived and there was no provision under which the same
could have been entertained by this Court. Controversy regarding title to the
property or the question of alleged fraud had no relevance even remotely with
the question raised in the special leave petition. According to the applicant
company's own case, they had made an agreement of purchasing 100% shares of the
private limited company of respondents no.1 and 2 on 31.7.1979 and thereafter
the applicant company took over the entire assets. Thus the applicant company
cannot be said to have anything to do with the two orders passed by this Court
on 13.12.1977 and 11.12.1978 nor could it be regarded as one in any way
adversely affected by the agreement dated 25.6.1978 of new tenancy as till then
It had not taken any steps of purchasing the said shares. [pp. 625 B-C; 626
A-D] Union Carbide Corporation and Others v. Union of India and Others, [1991]
4 S.C.C. 584; inapplicable.
2.1.
The orders dated 2.4.1990 neither decided any issue finally nor did it grant
implement prayed by the applicant company nor can the order be considered as
binding or operative as res judicata or otherwise. The order appears to have
been passed under a clear misconception that it will aid the final decision on
the application. There was no proceeding pending at all before this Court in
respect of the special leave petition, in which the application could have been
riled after a lapse of 12 years. [pp. 625 D-F; 627E-F] Satyadhyan Ghosal &
Ors. v. Sm. Deorajin Debi & Anr., [1960] 3 S.C.R. 590 and Y.B. Patil &
Ors. v. Y.L. Patil [1977] 1 S.C.R. 320, distinguish. Arjun Singh v. Mohindra
Kumar & Ors., [1964] 5 S.C.R. 947, referred to. 614 2.2. There Is no
question of any acquiescence, waiver or estoppel against a party where the
error is committed by this Court itself This Court is under a bounden duty to
correct its own mistake. [p. 626 F] 2.3. Accordingly, the entire proceedings in
the High Court including the findings recorded on the question of title are non
est and not binding on any of the parties concerned. [p. 627 G]
3. So
far as the question of rendering justice in a civil litigation is concerned, it
can only be known after the final culmination of such litigation and the party
succeeding can be adequately compensated by way of costs.
[627
C-D]
CIVIL
APPELLATE JURISDICTION : Interlocutory Application No.1 of 1990.
IN
Special Leave Petition No.4925 of 1977.
From
the Judgment and Order dated 13.10.1977 of the Bombay High Court in Special
Civil Application No.742 of 1977.
Ram Jethmalani,
S.K. Dholakia, P. Chidambaram, Ms. Bina, P.H. Parekh, A.L. Pandya, Ms Seita Vaidyalingam,
Ms. Rina Agarwal, Anant Palli, Atul Sharma and E.C. Agarwal for the appearing
parties.
The
Judgment of the Court was delivered by KASLIWAL, J. A Plot of land measuring
2000 sq. yards situated at Syani Road Bombay is the subject matter of this
litigation. One part of the case is that the above property belonged to Chitnanlal
D. Parikh. He executed a will on 20.10.1952 in favour of his minor sons Prakash
Chimanlal Parikh and Pankaj Chimanlal Parikh (hereinafter referred to as
respondent Nos.1 and 2). Chimanlal D. Parikh died on 5.12.1952. Devidayal
Rolling and Refineries Pvt. Ltd. (hereinafter referred to as respondent No.3) was
in occupation of the said property as a tenant. Smt. Mayadevi widow of Chimanlal
D. Parikh and executors named in the will dated 20th October, 1952 acting on behalf of respondent Nos.1 and 2 filed a suit
No.344 of 1958 for eviction against respondent No.3 in the Bombay High Court.
On 31.10.1961 a consent decree for eviction was passed in the above suit with
615 the condition that-the decree shall not be executed for a period of 12
years i.e. upto 31.10.1973. The respondent Nos.1 and 2 in order to execute the
said decree submitted an application under Order 21 rule 16 and Order 21 rule
22 C.P.C. in the Bombay High Court. The said applications were allowed and
respondent Nos.1 and 2 were substituted as decree holders by an order of the
High Court dated 10.12.1973. M/s Devidayal Rolling Mills (hereinafter referred
to as "the petitioners") appeared in the execution proceedings and
contended that they had purchased the business along with interest in the
disputed property from Devidayal Rolling and Refineries Private Limited, the
respondent No.3. The petitioners also filed a declaratory suit in January, 1974
in the Small Causes Court at Bombay for
being declared as tenants in the above property. The petitioners also filed an
interlocutory application for restraining the respondent Nos.1 and 2 from
executing the decree for eviction. The respondent Nos.1 and 2 denied any
tenancy having been created in favour of the petitioners.
The
Small Causes Court rejected the grant of any injunction in favour of the
petitioners and a revision filed against the said order was also dismissed by
the High Court. The petitioners then filed a Special Leave Petition No.4925 of
1977 in this Court, after the disposal of which, the present interim
application No.1 has been filed.
A
Bench of three Judges of this Court on 13.12.1977 dismissed the Special Leave
Petition but respondent Nos.1 and 2 agreed not to execute the decree before 1st January, 1980 on an usual undertaking to be given
by the petitioners as well as respondent No.3. The order dated 13.12.1977
having an important bearing in the case is reproduced as under:- UPON hearing
counsel, the Court passed the following, ORDER "Special Leave Petition is
dismissed.
However,
Respondents 1 and 2 agree not to execute the decree before the 1st of January, 1980, on the undertaking given by Mr. Nariman
on behalf of the petitioners and respondent No.3 that the petitioners and
respondent No.3 shall hand over vacant and peaceful possession of the premises
to respondents 1 and 2 on or before the said date. The petitioners and respondent
3 further undertake that they will not raise 616 any contention hereafter that
they were or are in possession of the premises either as licensee or tenants of
respondents 1 and 2 under the unamended or the amended Rent Act.
Arrears
of compensation according to the consent decree shall be paid within four weeks
from today and further compensation shall be paid before the 10th of every
month at the rate of Rs.4000 per month. All other terms of the consent decree
will remain. The petitioner and respondent No.3 shall file through their
Managing Director an affidavit in terms of this order, within two weeks".
In
pursuance to the above order, undertakings were filed on 15.1-2.1977.
Subsequently an application C.M.P. No.18403 of 1978 was submitted on 8.8.1978
to the effect that after the filing of the undertakings the petitioners and
respondent No.3 had handed over peaceful and vacant possession of the premises
of respondent Nos.1 and 2 on 25th June, 1978. It was further submitted that on
25th June, 1978 itself a fresh tenancy had been granted by respondent Nos.1 and
2 in favour of the petitioners. A copy of the agreement granting fresh tenancy
was also filed along with the application. The above application was filed in
view of the fresh agreement of tenancy warranting the obtaining of discharge of
the undertaking filed before this Court. The following prayer was made in the
said application:
(a)
That it may be declared and recorded that the petitioners and respondent No.3
have duly complied with the order of this Hon'ble Court dated 13th December,
1977 Exh. 'A' hereto and the undertakings recorded in the said order as well as
the undertakings given by Kewal Kishan Agarwal and Bankey Kishan Agarwal in
their affidavits dated 15th December, 1977;
(b)
That the petitioners, respondent No.3, the said Kewal Kishan Agarwal and the
said Bankey Kishan Agarwal be relieved on their respective undertaking given by
them to this Hon'ble Court and recorded in the said order dated 13th December,
1977 Ex. 'A' hereto and the said affidavits of Kewal Kishan Agarwal and Bankey Kishan
Agarwal dated 15th December, 1977 and 617
(c)
for such further and other reliefs as the nature and circumstances of the case
may, require for which act of kindness as the petitioners have in duty bound
shall ever pray.
The
above application came up for consideration on 11.12.1978 and was disposed of
by the following order:
UPON
hearing counsel, the Court passed the following order:
The
other side has no objection. Order made as prayed for'.
This
concludes one part of the case.
Second
part of the case is that after a lapse of nearly 12 years of disposal of the
Special Leave Petition the above I.A. No.1 of 1990 has been filed on 23.1.1990
by one Jugal Kishore Gupta and for convenience we shall hereinafter mention
this application as having been filed by 'the applicant company'. It has been
submitted on behalf of the applicant company that originally Chimanlal D.
Parikh was the sole proprietor of a firm M/s Jayant Metal Manufacturing Company
(in short 'JMMC'). On 21.11.1952 the said Chimanlal D. Parikh converted it into
a partnership firm of himself and his Mayadevi.
Chimanlal
D. Parikh died on 5.12.1952. On 22.10.1963 a deed of partnership was made
between Mayadevi and her sons, respondents Nos.1 and 2. The business of JMMC
was taken over and continued by this partnership firm. On 7.12.1966 Mayadevi
retired from the above partnership firm and respondent Nos.1 and 2 alone
continued as partners. On 13.12.1971 a private limited company was incorporated
of which the respondent Nos.1 and 2 alone were the directors.
On
1.9.1973 this private limited company also became a partner in the partnership
firm of JMMC of which respondent Nos.1 and 2 were the only partners. By an
agreement of sale dated 31.7.1979 the applicant company purchased 100% shares
of the private limited company of respondent Nos.1 and 2.
After
the aforesaid agreement Jugal Kishore Gupta on behalf of the applicant company
also took over the entire-assets of the company of respondent Nos.1 and 2 on
23.4.1980.It has been further submitted on behalf of the applicant company 618
that the disputed property had become the property of the private limited
company floated by respondent Nos.1 and 2 in 1971 and respondent Nos.1 and 2
had no right to deal with the property in their individual capacity. They had
so right and authority to create a fresh tenancy in favour of the petitioners
on 25.6.1978 and they practised a fraud before this Hon'ble Court in obtaining
the order dated 11.12.1978 by making a deliberate and intentional false
misrepresentation that they were owners of the property in dispute and had a
right to create fresh tenancy in favour of the petitioners in their individual
capacity. It has been further submitted that the applicant company came to know
of the above facts only after the advocate for the applicant.
made
inspection of papers on 20th
January, 1990. In the
above circumstances the applicant company has filed the I.A. No.1 and has made
the following prayers.:
The
Court may be pleased to (a) direct that the applicant be impleaded as
respondent No.4 in the Special Leave Petition No.4925 of 1977;
(b)
order an enquiry about the fraud practiced by the petitioner and the
respondents upon this Hon'ble Court and about any other point or points on
which this Hon'ble Court deems fit to order an enquiry;
(c)
clarify that the Undertakings given by the petitioner and respondent No.3 was
to hand-over the possession to respondent Nos.1 and 2 for and on behalf of the
applicant as its Directors;
(d) take
action against the petitioner and respondent Nos. 1 and 3 for perjury;
(e) vacate
the order dated 11th December, 1978 inasmuch as respondent Nos.1 and 2 were not
competent to enter into Tenancy Agreement dated 25th June, 1978 creating
tenancy in favour of the petitioner;
(f)
direct the petitioner and respondent No.3 to forthwith handover vacant and
peaceful possession of the suit premises to the applicant; and 619 (g) pass
such other and further order or orders as this Hon'ble Court may deem fit and
proper in the circumstances of the case.
This
application came up for consideration before this Court and the following order
was passed on 2.4.1990:
"After
hearing learned counsel for the parties, we find that in the present
proceedings it is difficult to decide the question of title to the disputed
property which includes an approximate area of 2000 sq . yds. of Plot No.581
Part and 582 Part in TPS Scheme IV, Mahim, Bombay, at present in the possession
of M/s Devidayal Rolling Mills who are claiming to be protected tenants, under
the Rent Act. Title to this property is being claimed by M/s Jayant Metal
Manufacturing Company Private Ltd., as well as by M/s Prakash Chimanlal Parikh
& Pankaj Chimanlal Parikh from whom M/s Devidayal Rolling Mills are claiming
to be tenants. Since this deputed question cannot be decided in the present
proceedings we remit the issue relating to the title to the aforesaid property
to the High Court, Bombay with a direction that the question of tide will be
decided after given opportunity to the parties concerned to file affidavits,
discovery and leading evidence, etc. After hearing the parties and examining
the witnesses the High Court will record findings and forward the same to this
Court for further orders. The findings may be remitted to this Court within six
months. After the report is submitted to this Court the parties are free to
file objections, if any, within three weeks thereof. Thereafter the matter will
be listed for further orders".
In
compliance of the aforesaid order of this, Court the High Court framed the
following two issues:
(1) whether
the property admeasuring approx.
2000
sq. yds. of plot No.581 (pt) & polt No.582 (pt) of TPS IV, Mahim Division,
Bombay belongs to Prakash Chimanlal Parikh and Pankaj Chimanlal Parikh? 620 (2)
whether M/s Jayant Metal Manufacturing Co. Pvt. Ltd. are owners of the property
mentioned in Issue no.1? The High Court after discussing the entire evidence,
recorded the finding on issue No.1 in the affirmative and that of issue No.2 in
the negative. As a result of the above findings, the High Court has held that
the property admeasuring approximately 2000 sq. yds. belonged to Prakash Chimanlal
Parikh and Pankaj Chimanlal Parikh (respondent Nos.1 and 2) and that M/s JMMC
Pvt. Ltd. (the applicant company) were not the owners. The High Court has sent
the report dated 13-14-16-17.8.1991. The applicant company has filed objections
on 29.10.1991 to the findings recorded by the High Court and the petitioners
have filed a counter on 23.11.1991 to the objections filed by the applicant
company.
Mr. Jethmalani,
learned senior counsel on behalf of the applicant company wanted to challenge
the findings recorded by the High Court on the question of title of the
disputed property. Mr. Chidambaram, learned senior counsel appearing on behalf
of the petitioners raised a preliminary objection that the present
interlocutory application filed by the applicant company is not maintainable
and the order passed by this Court on 2.4.1990 was passed under a misconception.
It was
submitted that in spite of the findings recorded by the High Court in their favour,
he was raising the preliminary objection that the interlocutory application
filed by the applicant company itself was not maintainable and as such the
order passed by this Court dated 2.4.1990 as well as the entire proceedings
taken in pursuance to the said order and the findings recorded by the High
Court were without jurisdiction. It was further contended that the Special
Leave Petition No.4925 of 1977 had itself been dis- missed by order dated
13.12.1977 and no application could have been filed under any provision of law
by the applicant company in the said Special Leave Petition after a lapse of
more than 12 years. In view of the above preliminary objection raised on behalf
of the petitioners, we called upon Mr. Jethmalani to make submissions on the
preliminary objection. After hearing learned counsel for the parties at length
on the preliminary objection, we consider it neces- sary to decide the preliminary
objection first and we are disposing of the same by this order.
It was
vehemently contended by Mr. Jethmalani, learned senior counsel that such
application was maintainable under Articles 136 and 142 of the Constitution. It
was contended that in this application apart from 621 the prayer for impleadment
in the Special Leave Petition No.4925 of 1977 a prayer was made that the fraud
alleged against the petitioners should also be enquired. It was submitted that
this Hon'ble Court while passing the order dated 2.4.1990 had allowed the
prayer for impleadment by implication and the second prayer expressly when this
Court had framed the issue of title and had directed the High Court to send its
findings after giving an opportunity to the parties to file affidavits,
discovery and leading evidence etc. It was also submitted that apart from the
above reliefs it was also prayed that the order dated 11th December, 1978
regarding the satisfaction of the decree be also set aside. It was submitted
that this Hon'ble Court has appellate powers from every decision of every Court
or Tribunal and Art.142 of the Constitution gives power to this Hon'ble Court
to do justice in any cause or matter raised even in a Special Leave Petition
already dismissed or disposed of Reliance is placed on the decision of this Hon'ble
Court in Union Carbide Corporation Ltd Others v. Union of India and Others,
[1991]4 S.C.C. 584. It was contended that the application is covered by Section
47 of the Code of Civil Procedure or within the principles of justice
underlying Section 47 C.P.C. read with Art.142 of the Constitution.
It was
also contended that by order dated 2.4.1990 this Hon'ble Court had granted two
prayers made in the, application. Firstly, this Hon'ble Court had impleaded the
applicant company and had recorded its right of being heard in the matter and
secondly, had decided to make an enquiry into the fraud complained of by the
applicant company by directing the High Court to make a report on the question
of tide..-The order dated 2.4.1990 had been passed after hearing the parties.
It would cause an irreparable injury to the applicant company in case the order
dated 2.4.1990 is recalled. The applicant company has already been put to
enormous costs and expenses in conducting the proceedings before the High Court
and a long and valuable judicial time has also been spent. It was submitted
that the parties have already suffered a protracted hearing and it would be a
travesty of justice if the parties would now be told to start their legal
remedy from the lowest court of competent jurisdiction. It would bring justice
into disrepute and would prove the dictum 'justice delayed is justice denied'.
The
order dated 2.4.1990 is neither per-incuriam not without jurisdiction and the
same being passed by this Hon'ble Court itself after full application of mind
and hearing the parties ought to be sustained.
It was
further contended that even after the passing of the order 622 dated 2.4.1990
by this Hon'ble Court, the petitioners had raised the plea of correctness of
the said order dated 2.4.1990 before the High Court. The High Court rejected
the said contention by a specific order dated 21.8.1990. The High Court further
granted an opportunity to the petitioners to seek a review of the order dated 2.4.1990
from this Hon'ble Court, but the petitioners did not avail
of the said opportunity and continued with the proceedings before the High
Court. Under these circumstances the order dated 2.4.1990 having become final
cannot be impeached now in these very proceedings. It was submitted that the
principle of res judicata applies also as between two stages in the same
litigation and any question having been decided at an earlier stage in one way
or the other cannot be allowed to be reagitated by the parties at a subsequent
stage of the same proceedings. Once a matter is decided it is certainly final
as regards that Court is concerned. Reliance in support of the above contention
is placed on Satyadhyan Ghosal & Ors. v. Sm. Deorajin Debi & Anr.,
[1960] 3 S.C.R. 590 and Y.B. Patil & Ors. v. Y.L. Patil [1977] 1 S.C.R.
320.
It was
further contended that the application in question is also maintainable under
Section 47 of the Code of Civil Procedure. It is submitted that a dispute
between a decree holder and a person claiming adverse to the decree holder
which affects the judgment debtor falls within the purview of Section 47 of the
Code of Civil Procedure. It is contended that the consent decree dated
31.10.1961 was modified and merged in the order of this Hon'ble Court dated
13.12.1977. By the said order dated 13.12.1977 the time for execution of the
consent decree was extended upto 1.1.1980. By another order dated 11.12.1978
this Hon'ble Court recorded satisfaction of the
executable order dated 13.12.1977 by discharging the undertakings given by the
petitioners and respondent No.3. It has thus been contended that the applicant
company being the true and absolute owner of the disputed property was entitled
to the benefit of the modified decree dated 13.12.1977. In view of the
satisfaction recorded by this Hon'ble Court by order dated 11.12.1978, the
applicant company was justified in submitting the present application under
Section 47 of the Code of Civil Procedure for setting aside the order of
satisfaction of the decree for eviction recorded by this Court. The respondent
Nos.1 and 2 destroyed such right of the applicant company by entering into a
transaction acting as proprietors and committed a fraud by seeking an order
dated 11.12.1978. Hence, this Hon'ble Court
alone can go into the question of such fraud.
623 it
was also contended that the petitioners are also bound by the principle of
acquiescence, waiver and estoppel in view of the fact that they did not file
any review application against the order dated 2.4.1990, instead participated
in the proceedings before the High Court for a long period of 78 days. It was
also submitted that no prejudice has been occasioned to the petitioners on
account of the order dated 2.4.1990 as the finding on the question of title has
been recorded by the High Court in favour of the petitioners and it is the
applicant company who wants to assail the same and get the question of title to
be decided finally by the Apex Court to shorten the litigation.
On the
other hand it was submitted by Mr. Chidambaram, learned senior counsel for the
parties that the order dated 2.4.1990 being merely an interim order, the same
can always be varied or modified by this Court. at any later stage of the
proceedings. The prayer in the application for impleadment filed by the
applicant company has itself not been granted so far and by the order dated
2.4.1990 no question has been decided nor has any right been conferred thereby
on the applicant company. This Hon'ble Court had passed the order dated
2.4.1990 under a clear misconception of both facts as well as law and as such
the same can always be recalled at a subsequent stage in the proceedings. The
application is not maintainable under any provision of law including Section 47
C.P.C. The applicant company was neither a party to the suit in which the
decree for eviction was passed nor has it come forward as a representative of
any party to the suit much less the representative of the decree holder. It has
been contended that the respondent Nos.1 and 2 had filed an application under
Order 21 rule 16 and Order 21 rule 22 C.P.C. for being substituted as decree
holders and the executing court had allowed the applications in their favour
and as such they alone were competent to execute the decree.
It was
also argued on behalf of the petitioners that judgments which have the force of
a decree are to be distinguished from other interlocutory orders which are a
step towards the decision of the dispute between the parties by way of a decree
or a final order. Thus it has been contended that the nature of the order dated
2.4.1990 was merely a step towards the decision of the application filed by the
applicant company which itself is of an interlocutory nature. It was also
argued that the lease granted by respondent Nos.1 and 2 in favour of the petitioners
w.e.f. 25.6.1978 was not the subject matter of the prayers in C.M.P. No.18403
of 1978 nor the 624 subject matter of the order made by this Hon'ble Court on 11.12.1978. The fresh lease
granted in favour of the petitioners has never been the subject matter of any
proceedings in any court of law, including this Hon'ble Court. Thus it is not open to the applicant company by moving the
above interlocutory application No.1 of 1990 to question in any matter the
fresh lease granted w.e.f 25.6.1978 or to allege that the said lease is
fraudulent or is vitiated in any other manner. Even if for arguments sake the
applicant company now wishes to challenge the aforesaid lease granted as far
back as on 25.6.1978, the applicant company is bound to institute separate and
substantive proceedings challenging the said lease.
It has
also been argued on behalf of the petitioners that in R.A.D.718 of 1974 the
applicant company being a defendant had filed a written statement in November,
1986 in which it had referred and questioned the grant of fresh lease dated
25.6.1978 by respondent Nos.1 and 2. Thus the stand now taken by the applicant
company that it came to know about the aforesaid lease only after its advocate
took inspection of papers on 20th January, 1990 is totally false and the applicant company having not come with clean
hands and also after a long delay the application is liable to be dismissed on
these grounds alone.
We
have given our thoughtful consideration to the arguments advanced on behalf of
the parties and have carefully gone through the record as well as the written
arguments. As already mentioned above the respondent Nos.1 and 2 were
substituted as decree holders by an order of the High Court dated 10.12.1973.
The petitioners having purchased the business from Devidayal Rolling Mills,
(the respondent No.3) had filed a declaratory suit in January, 1974 in the
Small Causes Court at Bombay. In the said suit the interlocutory
application restraining the respondent Nos.1 and 2 from executing the decree
for eviction was dismissed. The revision filed by the petitioners was also
dismissed by the High Court and against that order the petitioners had come
before this Court by filing the above Special Leave Petition No.4925 of 1977.
The said Special Leave Petition was also dismissed on 13.12.1977 and the time
was granted to vacate the property in dispute before the 1st January, 1980. In pursuance to the order dated
13.12.1977 some undertakings were given by the petitioners as well as respondent
No.3 on 15.12.1977 and thereafter the petitioners and respondent No.3 handed
over the possession of the property in dispute to 625 respondent Nos.1 and 2 on
25.6.1978 and on the same day a fresh agreement of lease was granted by
respondent Nos.1 and 2 in favour of the petitioners. We are thus totally at a
loss to understand as to how any question of its title as sought to be raised
by the applicant company against respondent Nos.1 and 2 or any question of
fraud, if any, in granting a fresh lease dated 25.6.1978 by respondent Nos.1
and 2 could at all be brought up before this Court straight away. These
questions now sought to be raised by the applicant company in the present
application have nothing to do with the controversy raised in the main Special Leave
Petition itself which also came to be dismissed long back on 13.12.1977. In our
view such controversy regarding the alleged applicant company's title to the
property or the question of alleged fraud in respect of creating a fresh
tenancy dated 25.6.1978 in respect of that property had no relevance even
remotely with the question raised in the Special Leave Petition. Such questions
of title or fraud could neither be gone into in a Special Leave Petition in
exercise of its jurisdiction under Art. 136 or 142 of the Constitution nor
could the same be raised under Section 47 of the Code of Civil Procedure in the
disposed of Special Leave Petition nor by way of any interlocutory application.
The
order dated 2.4.1990 appears to have been passed under a clear misconception
that it will aid the final decision on the application. This Court while
passing the order dated 2.4.1990 did not decide any controversy nor did it
grant the application for impleadment filed by the applicant company.
There
was no proceeding pending at all before this Court in respect of the above
Special Leave Petition in which the present application could have been filed
after a lapse of 12 years and it was an apparent and obvious mistake on the
part of this Court in entertaining such application. We cannot accept the
submission made on behalf of the applicant company that the order dated
2.4.1990 is final and binding so as to compel us to decide the question of
title.
The
Special Leave Petition itself was filed by the petitioners who were claiming as
tenants in the property in dispute against the order of the High Court
affirming the order of the Small Causes Court refusing to grant interim injuction
against the execution of the decree for eviction.
Thus
the controversy, if any, raised, in the main special Leave Petition itself had
nothing to do with the question of any dispute of title between the respondent
Nos.1 and 2, and the applicant company.
526 It
may be noted that according to the applicant company's own case they had made
an agreement of purchasing the 100% shares of the private limited company of
respondent Nos.1 and 2 on 31.7.1979 and thereafter Jugal Kishore Gupta on
behalf of the applicant company took over the entire assets on 23.4.1980. Thus
the applicant company cannot be said to have anything to do with the two orders
passed by this Court on 13.12.1977 and on 11.12.1978 nor could the applicant
company be regarded as one in any way adversely affected by the agreement dated
25.6.1978 of new tenancy as till then it had not taken any steps of purchasing
the said shares.
There
was no scope or even any semblance of any controversy now sought to be raised
by the applicant company which could have been raised or decided in the main
Special Leave Petition itself. That apart a Bench of three Judges of this Court
on 13.12.1977 had dismissed the Special Leave Petition and so far as the order
dated 11.12.1978 is concerned it neither decided any controversy nor changed
its earlier order of dismissal of the Special Leave Petition. We are clearly of
the view that this interlocutory application filed by the applicant company on
23.1.1990 in the dismissed Special Leave Petition as back as on 13.12.1977, was
totally misconceived and there was no provision under which the same could have
been entertained by this Court.
It is
no doubt true that on account of the order dated 2.4.1990 both the parties have
been put to an enormous cost but this cannot be a justification for
entertaining a controversy which did not arise even remotely in the main Special
Leave Petition and which could only be decided by way of regular substantive
proceedings. in the lowest court of competent jurisdiction. This Court cannot
entertain and decide the question of tide in respect of an immovable property
raised for the first time before this Court by way of an interim application in
a dismissed Special Leave Petition. There is no question of any acquiescence,
waiver or estoppel against a party where the error is committed by the Court
itself. This Court is under a bounden duty to correct its own mistake. So far
as the case of Union Carbide Corporation v. Union of India, (supra) is
concerned the same has no relevance and can be of no assistance at all to the
applicant company in the facts and circumstances of the present case.
The
principle laid down in Satyadhyan's case (supra) and YB. Patil & Ors. (supra)
is to the effect that the principle of res-judicata can be 627 invoked not only
in separate subsequent proceedings but they can also get attracted in
subsequent stage of the same proceedings. There cannot be any difference of
opinion in the said view. However, this question would depend on the facts and
circumstances of each case and the nature of the order passed at an earlier
stage of the proceedings. In Arjun Singh v. Mohindra Kumar & Ors., [1964] 5
S.C.R. 947 it was observed as under:
"Where
the principles of res-judicata is invoked in the case of the different stages
of proceedings in the same suit the nature of the proceedings, the scope of the
enquiry which the adjectival law provides for the decision being reached as
well as the specific provision made on matters touching such decisions are some
of the factors to be considered before the principle is held to be
applicable".
So far
as the question of rendering justice in a civil litigation is concerned, it can
only be known after the final culmination of such litigation and the party
succeeding can be adequately compensated by way of costs.
It has
been rightly said that "cost is a panacea in law which heals every sore in
litigations. In the present system of adversarial civil litigation between the
parties it may turn out to be costly as well as time consuming, if either of
the parties decide to bring all or any controversy for decision upto the Apex Court. In our considered view the
question of title to an immovable property or fraud in any transaction relating
to it cannot be entertained by this Court in an interlocutory application filed
by a third party in a Special Leave Petition dismissed as long ago as 12 years
discarding all procedural requirements. We are thus clearly of the view that
the order dated 2.4.1990 did not decide any issue finally nor can it be
considered as binding or operative as res-judicata or otherwise.
It is
true that the High Court has recorded a finding in favour of the petitioners
and against the applicant company and as such the applicant company is
prejudiced if the said finding remains in tact. However, in view of the fact
that we are upholding the preliminary objection, it is necessary in the
interest of justice to declare the entire proceedings in the High Court
including the findings recorded on the question of title as non-est and not
binding on any of the parties concerned. We order accordingly. Although we have
refrained from making any observations on the merits of the issues 628 raised
in the I.A. regarding the questions of alleged title and alleged fraud we make
it clear that this Judgment or any observations made therein will not in any
manner prejudice the rights of any of the parties with regard to the title of
the property in dispute or any question of fraud sought to be raised by the
applicant company in an appropriate forum.
Subject
to the above, we dismiss Interlocutory Application No.1 of 1990 with no order
as to costs.
R.P.
Application dismissed.
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