Shiv
Kumar Chadha Vs. Municipal Corporation of Delhi & Ors [1993] INSC 257 (4 May 1993)
Singh
N.P. (J) Singh N.P. (J) Venkatachalliah, M.N.(Cj) Sawant, P.B.
CITATION:
1993 SCR (3) 522 1993 SCC (3) 161 JT 1993 (3) 238 1993 SCALE (2)772
ACT:
% Code
of Civil Procedure, 1908:
Section
9-Civil Court's jurisdiction- Ouster when.
Delhi
Municipal Corporation Act, 195:
Sections
343,347E-Suits in connection with orders passed or proceedings initiated for
demolition of constructions- Maintainability of-Directions of Supreme Court.
Code
of Civil Procedure, 1908:
Order
39, Rule 3, proviso Temporary injunction-Granting of- When-Court's duty-Reasons
for grant of injunction-Mandatory to record-Supreme Court's directions.
HEAD NOTE:
In
respect of some private dispute between two neighbors a writ application was
filed in the High Court. On the material produced in the case it was treated as
a Public Interest Litigation and the High Court was to rind out a solution in
respect (if unauthorised constructions alleged to have been made by different
owners/occupiers/builders without sanctioned plans or by making deviations from
the sanctioned plans. The High Court wanted to ensure that such unauthorised
constructions were not perpetuated on the basis of interim orders of injunction
passed by the Civil Courts-.
The
High Court disposed of the petition holding that the owners/ occupiers/builders
were to be given liberty to file fresh building plans and that the Municipal
Corporation was to examine such building plans in accordance with law and that
the Corporation was to seal and to demolish those constructions which were
beyond the compoundable limits.
The
High Court also directed that no civil suit would be entertained by any Court
in Delhi in respect of any action taken or proposed
to be taken by the Corporation with regard to the sealing and/or demolition of
any building or any part thereof. The High Court directed further that person
aggrieved by an order of sealing or demolition had the right to file an appeal
to the Appellate Tribunal under the Delhi Municipal Corporation Act, 1957.
522
523 Against the High Court's order the present appeals were filed by special
leave.
On the
question, "whether the jurisdiction of the Court has been statutorily
barred in respect of suits in connection with the orders passed or proceedings
initiated for demolition of constructions, which have been made without
sanction or by deviating from the sanctioned plans", allowing the appeals,
this Court,
HELD:1.1.
With the increase in the number of taxing statutes, welfare legislations and
enactments to protect a class of citizens,a trend can be noticed that most of
such legislations confer decision making powers on various authorities and they
seek to limit or exclude Court's power to review those decisions. The result is
that the power of the Court under section 9 of the Code is being denuded and
curtailed by such special enactments, in respect of liabilities created or
rights conferred. The ouster of the jurisdiction of the Court is upheld on the
finding that the rights or liabilities in question had been created by the Act
in question and remedy provided therein Was adequate.
(535-D-F)
1.2.The
situation will be different where a statute purports to curb and curtail a
pre-existing common law right and purports to oust the jurisdiction of the
Court so far remedy against the orders passed under such statute are concerned.
In
such cases,the courts have to be more vigilant, while examining the question as
to whether an adequate redressal machinery has been provided, before which the
person aggrieved may agitate his grievance. (535-G) 1.3.In spite of the bar
placed on the power of the Court, orders passed under such statutes can be
examined on "jurisdictional question". A suit will be-maintainable.
(536-F)
Katikara Chiniamani Dora v. Guatreddi Annamanaidu, AIR 1974 SC 1069; Desika Charyutttu
v. State of Andhra Pradesh, AIR 1964 SC 807; PYX Granite Co. Ltd. v. Ministry
of Housing and Local and Government, 1960 A.C. 260 and Anisminic Ltd. v.
Foreign Compensation Commission, 1969 2 AC 147, relied on.
Wolverhampton New Waterworks Co. v. Hawkesford,
[1859] 6 524 C.B. (N.S.) 336; Neville v. London "Express" Newspaper Limited. [1919] Appeal Cases 368; Baraclough
v. Brown, [1897] Appeal Cases 615; Secretary of State v. Mask & Co., AIR
1940 P.C. 105; Firm Seth Radha Kishan v. Administrator.
Municipal
committee, Ludhiana, AIR 1963 SC 1547; Finn of Illuri Subbayya Chetty and Sons
v. State of Andhra Pradesh, AIR 1964 SC 322; M/s. Kamala Mills Ltd. v. State of
Bombay, AIR 1965 SC 1942; Ram Swarup and Ors. v. Shikar Chand, AIR 1966 SC 893;
State of Kerala v. M/s. N. Ramaswami Iyer and sons, AIR 1966 SC 1738; Rain Gopal
Reddy v. Additional Custodian Evacuee Property, Hyderabad, [1966]3 SCR 214;
Custodian of Evacuee Property, Punjab &
Ors. v. Jafran Begum, [1967]3 SCR 736; Dhulabhai v. Stale of Madhya Pradesh,
AIR 1969 SC 78; The Premier Automobiles Ltd. v. Kamlaker Shantarm Wadke, AIR
1975 SC 2238=[1976] 1 SCC 496;
Bata
Shoe Co. Ltd. v. Jabalpur Corporation, AIR 1977 SC 955= [1977] 2 SCC 472; Munshi
Ram v. Municipal Commitee, Chheharta, AIR 1979 SC 1250= [1979]3 SCC 83; Rain
Singh v. Grain Panchayat, Mehal Kalan, AIR 1986 SC 2197=[1986]4 SCC 364; Raja
Ram Kumar Bhargava v. Union of India, AIR 1988 SC 752= [1988] SCC 681 and Sushil
Kumar Mehta v. GobindRam Bohra, [1990] 1 SCC 193, referred to.
1.4.
The Delhi Municipal Corporation Act purports
to regulate the common law right of the citizens to erector construct buildings
of their choice. This right existed since time immemorial. But with the urbanisation
and development of the concept of planned city, regulations, restrictions, on
such common law right have been imposed.
But as
the provisions of the Act intend to regulate and restrict a common law right,
and not any right or liability created under the Act itself, it cannot be said
that the right and the remedy have been given unoflatu e.g. "in the same
breath". (537-E)
1.5.
In spite of the bar prescribed under sub-sections (4) and (5) of section 343
and section 347E of the Corporation Act over the power of the Courts, under
certain special circumstances, the Court can examine, whether the dispute falls
within the ambit of the Act. But once the Court is satisfied that either the
provisions of the Act are not applicable to the building in question or the
basic procedural requirements which are vital in nature, have not been
followed, it shall have jurisdiction, to enquire and investigate while
protecting the common law rights of the citizens. (537-C)
1.6.
The regulations and bye-laws in respect of buildings, are meant to 525 serve
the public interest. But at the same time it cannot be held that in all
circumstances, the authorities entrusted with the demolition of unauthorised
constructions, have exclusive power, to the absolute exclusion of the power of
the Court. In some special cases where "jurisdictional error" on the
part of the Corporation is established, a suit shall be maintainable. (538-C)
1.7.
The Court should not ordinarily entertain a suit in connection with the
proceedings initiated for demolition by the Commissioner, in terms of section
343 (1) (of the Corporation Act. The Court should direct the persons aggrieved
to pursue the remedy before the Appellate Tribunal and then before the
Administrator in accordance with the provisions of the said Act. (538-D)
1.8.
The Court should entertain a suit questioning the validity of an order passed
under section 343 of the Act, only if the Court is of prima facie opinion that
the order is nullity in the eyes of law because of any "jurisdictional
error" in exercise of the power by the Commissioner or that the order is
outside the Act. (538-E)
2.1. A
party is not entitled to an order of injunction as a matter of right or course.
Grant of injunction is within the discretion of the Court and such discretion
is to he exercised in favour of the plaintiff only if it is proved to the
satisfaction of the Court that unless the defendant is restrained by an order
of injunction, an irreparable loss or damage will be caused to the plaintiff
during the pendency of the suit. (538-H)
2.2.The
purpose of temporary injunction is, to maintain the status quo. The Court
grants such relief according to the legal principles- ex debite justitiae.
Before any such order is passed the Court must be satisfied that a strong prima
facie case has been made out by the plaintiff including on the question of
maintainability of the suit and the balance of convenience is in his favour and
refusal of injunction would cause irreparable injury to him. (539B)
2.3.
'The Court should be always willing to extend its hand to protect a citizen who
is being wronged or is being deprived of a property without any authority in
law (or without following the procedure which are fundamental and vital in
nature. But at the same time the judicial proceedings cannot be used to protect
or to perpetuate a wrong committed by a person who approaches the Court. (539-
1)) 526
2.4.
Power to grant injunction is an extra-ordinary power vested in the Court to he
exercised taking into consideration the facts and circumstances of a particular
case. The Courts have to be more cautious when the said power is being
exercised without notice or hearing the party who is to he affected by the
order so passed. (539-E)
2.5.
In spite of the statutory requirement, in order 39, Rule 3 the Courts have been
passing orders of injunction before issuance of notices or hearing the parties
against whom such orders are to operate without recording the reasons for
passing such orders. It is said that if the reasons for grant of injunction are
mentioned, a grievance can be made by the other side that Court has prejudged
the issues involved in the suit. This is a misconception about the nature and
the scope of interim orders. Any opinion expressed in connection with an
interlocutory application has no bearing and shall not affect any party,, at
the stage of the final adjudication. Apart from that now in view of the proviso
to Rule 3 of Order 39, there is no scope for any argument. When the statute
itself requires reasons to he recorded, the Court cannot ignore that
requirement by saying that if reasons are recorded, it may amount to expressing
an opinion in favour of the plaintiff before hearing the defendant (539-H,
540-H)
2.6.
Proviso to Rule 3 of Order39 of the Code, attracts the principle, that if a
statute requires a thing to he done in a particular manner, it should be done
in that manner or not all.
Taylor v. Taylor, (1875)1 Ch. D. 426; Nazir
Ahmed v. Emperor, AIR 1936 PC 253 and Ramachandra Keshar Adke v. Gavind Joti Chavare,
AIR 1975 SC 915, relied on.
2.7.
Whenever a Court considers it necessary in the facts and circumstances of a
particular case to pass an order of injunction without notice to other side, it
must record the reasons for doing so and should take into consideration, while
passing an order of injunction, all relevant factors, including as to how the
object of granting injunction itself shall be defeated if an exparty order is
not passed. But any such exparty order should be in force up to a particular
date before which the plaintiff should be required to serve the notice on the
defendant concerned. (541-C) Supreme Court Practice 1993, Vol. 1, at page 514,
referred to.
527
2.8.The
Court should first direct the plaintiff to serve a copy of the application with
a copy of the plaint along with relevant documents on the counsel for the
Corporation or any competent authority of the Corporation and the order should
be passed only after hearing the parties. (541-F) 2.9.If the circumstances of a
case so warrant and where the Court is of the opinion, that the object of
granting the injunction would be defeated by delay, the Court should record
reasons for its opinion as required by proviso to Rule 3 of Order 39 of the
Code, before passing an order for injunction. The Court must direct that such
order shall operate only for a period of two weeks, during which notice along
with copy of the application, plaint and relevant documents should be served on
the competent authority or the counsel for the Corporation. Affidavit of
service of notice should be filed as provided by proviso to Rule 3 of Order 39
aforesaid. If the Corporation has entered appearance, any such ex parte order
of injunction should be extended only after hearing the counsel for the
Corporation. (541-H, 542- A) 2.10.While passing an exparte order of injunction
the Court shall direct the plaintiff to give an undertaking that he will not
make any further construction upon the premises till the application for
injunction is finally heard and disposed of. (512-C)
CIVIL
APPELLATE JURISDICTION: Civil Appeal Nos. 2531-33 of 1993.
From
the Judgment and Order dated 19.2.1991 of the Delhi High Court in C.W.P. No.
3499 of 1989.
R.M. Bagai,
V. Shekhar, Ms. Bina Gupta and Ms. Monika Mohil for the Appellants.
Kapil Sibal,
Ranjit Kumar and R.P. Sharma for the Respondents.
The
Judgment of the Court was delivered by N.P. SINGH. J. Special leave granted.
These
appeals have been filed against an order passed by the Delhi High Court
directing the Municipal Corporation of Delhi (hereinafter referred to as
"the Corporation") to issue appropriate notices to the
owners/occupiers/builders of the building where illegal constructions have been
made.
A
liberty has been given to 528 the owners/occupiers/builders to file fresh
buildings plans with the Corporation in conformity with the existing bye- laws.
The building plans as filed are to be examined in accordance with the law. The
Corporation has been directed that if it finds that the constructions are
beyond the compoundable limits, then to seal the same and to demolish
thereafter.
The
appellants have no grievance so far as the aforesaid part of the order is
concerned. They have sought interference of this Court with the other part of
the order, where it has been said that "no civil suit will be entertained
by any court in Delhi in respect of any action taken or proposed to be taken by
the Corporation with regard to the sealing and/or demolition of any building or
any part thereof. Any person aggrieved by an order of sealing or demolition
which is passed shall, however, have the right of filing an appeal to the
Appellate Tribunal under the Municipal Act. The Appellate Tribunal is the only
forum which has the jurisdiction to grant interim relief." The other part
of the order in respect of which objection has been taken is where the Court
has directed the Corporation to approach those courts which have already issued
injunction "for variation and vacation of the injunction orders in the
light of" the said order.
Initially
a writ application was filed in respect of some private dispute between two neighbours.
In due course on the material produced by one party or the other it was treated
as a Public Interest Litigation and by the impugned order the High Court has
purported to find out a solution in respect of unauthorised constructions
alleged to have been made by different owners/ occupiers/builders in the
different parts of the city without sanctioned plans or by making deviations
from the plans which had been sanctioned.
The
Court has also purported to ensure that such unauthorised constructions are not
perpetuated on the basis of interim orders of injunction passed by Civil
Courts.
It
cannot be disputed that by the impugned order the jurisdiction of any Court in
Delhi to entertain any suit in connection with demolition of any part of any
building which, according to the Corporation, is unauthorised and illegal has
been ousted.
The
Delhi Municipal Corporation Act, 1957 (hereinafter referred to as "the
Corporation Act") has made provisions for the constitution of the
Corporation and has prescribed the procedure for election of the councillors,
levy of taxes, sanitation and public health. Chapter XVI contains provisions
regarding erection of buildings within the Corporation area. Section 331
defines the expression "to erect a building". Section 332 says
that" no person shall erect or commence to erect 529 any building or
execute any of the works specified in section 334 except with the previous
sanction of the Commissioner". The relevant part of section 343 is as
follows:- "343. Order of demolition and stoppage of buildings and works in
certain cases and appeal ....................................
(2)Any
person aggrieved by an order of the Commissioner made under sub-section (1) may
prefer an appeal against the order to the Appellate Tribunal within the period
specified in the order for the demolition of the erection or work to which it
relates.
(3)Where
an appeal is preferred under sub-section(2)against an order of demolition, the
Appellate Tribunal may, subject of the provisions of sub-section (3) of section
347 C, stay the enforcement of that order on such terms, if any, and for such
period, as it may think fit:
Provided
that where the erection of any building or execution of any work has not been
completed at the time of the making of the order of demolition, no order
staying the enforcement of the order of demolition shall be made by the
Appellate Tribunal unless security, sufficient in the opinion of the said Tribunal
has been given by the appellant for not proceeding with such erection or work
pending the disposal of the appeal.
(4)No Court shall entertain any suit,
application or order proceeding for injunction or other relief against the
Commissioner to restrain him from taking any action or making any order in
pursuance of the provisions of this section.
(5)Subject
to an order made by the Administrator on appeal under section 347 D, every
order made by the Appellate Tribunal on appeal under this section, and subject
to the orders of the Administrator and the Appellate Tribunal on appeal. the
order of demolition nude by the Commissioner shall be final and
conclusive".
Section
344 vests power in the Commissioner to stop the construction of the 530
building where the erection of such building or execution of any work has been
commenced or is being carried on either without sanction or contrary to
sanction so granted or in contravention of any condition subject to which
sanction has been accorded. Under section 345A, the Commissioner at any time,
before or after making an order of demolition under section 343 or of the
stoppage of the erection of any building or execution of any work under section
343, can make an order directing the sealing of such erection or work or of the
premises in which such erection or work is being carried or has been completed.
A further appeal has been.
provided
under section 347D to the Administrator against the order of the Appellate
Tribunal. Section 347E says:- "347E. Bar of jurisdiction of courts.
(1)
After the commencement of section 7 of the Delhi Municipal Corporation
(Amendment) Act, 1984, no court shall entertain any suit, application or other
proceedings in respect of any order or notice appealable under section 343 or
section 347B and no such order or notice shall be called in question otherwise
then by preferring an appeal under these sections.
(2)Notwithstanding
anything contained in sub-section (1), every suit, application or other
proceeding pending in any court immediately before the commencement of section
(7) of the Delhi Municipal Corporation (Amendment) Act, 1984, in respect of any
order or notice appealable under section 343 or section 347B, shall continue to
be dealt with and disposed of by that court as if the said section had not been
brought into force." Because of sub-sections (4) and (5) of section 343
and section 347E aforesaid the stand of the Corporation is that the Courts have
been debarred from entertaining suits, applications or proceedings for injunction,
against any order or notice for demolition and the order of demolition passed
by the Commissioner, subject to appeals before the Appellate Tribunal and
Administrator shall be deemed to be final and conclusive.
In
spite of several pronouncements of this Court during the last four decades, the
question as to whether the jurisdiction of the Court has been statutorily
barred in respect of suits in connection with the orders passed or proceedings
initiated for demolition of constructions, which have been made without
sanction or by deviating from the sanctioned plans, has to be answered.
531
Section 9 of the Code of Civil Procedure, (hereinafter referred to as "the
Code") says that Courts shall have jurisdiction to try all suits of civil
nature "except suits of which their cognizance is either express Iyor
impliedly barred". According to the Corporation once the jurisdiction of
the Court to try a suit in which the validity of any order passed under the
provisions of the Corporation Act or the notice issued thereunder has been
specifically barred and an internal remedy has been provided for redressal of
the grievances of the persons concerned, there is no scope for Court to
entertain a suit.
In the
olden days the source of most of the rights and liabilities could be traced to
the common law. Then statutory enactments were few. Even such enactments only
created rights or liabilities but seldom provided forums for remedies. The
result was that any person having a grievance that he had been wronged or his
fight was being affected, could approach the ordinary Civil Court on the
principle of law that where there is a right there is a remedy-ubi jus ibi remedium.
As no internal remedy had been provided in the different statutes creating
rights or liabilities, the ordinary Civil Courts had to examine the grievances
in the light of different statutes. With the concept of the Welfare State, it
was realised that enactments creating liabilities in respect of payment of
taxes obligations after vesting of estates and conferring rights on a class of
citizens, should be complete codes by themselves. With that object in view,
forums were created under the Acts themselves where grievances could be
entertained on behalf of the persons aggrieved. Provisions were also made for
appeals and revision to higher authorities.
Then a
question arose as to where a particular Act had created a right or liability
and had also provided a forum for enforcement of such right or for protection
from enforcement of a liability without any authority in law, whether a citizen
could approach a Court. It may be pointed out that many statutes have created
certain rights or liabilities and have also provided the remedial measures in
respect thereof. But such statutes have not touched the common law rights of the
citizen. But there are some statutes, which in public interest affect even the
common law rights or liabilities of toe citizen, which were in the nature of
existing rights. The distinction between the two types of rights or liabilities
is subtle in nature but at the same time very vital.
In one
of the earliest case of Volverhampton New Waterworks Co. v. Hawkesford, (1859)
6 C.B. (N.S.) 336, Willes, J, said:- "There are three classes of cases in
which a liability may be 532 established founded upon a statute. One is, where
there was a liability existing at common law, and that liability is affirmed by
a statute which gives a special and peculiar form of remedy different from the
remedy which existed at common law: there, unless the statute contains words which
expressly or by necessary implication exclude the common-law remedy, and the
party suing has his election to pursue either that or the statutory remedy. The
second class of cases is, where the statute gives the right to sue merely, but
provides no particular form of remedy: there, the party can only proceed by
action at common law. But there is a third class, viz. where a liability not
existing at common law is created by a statute which at the same time gives a
special and particular remedy for enforcing it. The present case falls within
this latter class, if any liability at all exists. The remedy provided by the
statute must be followed, and it is not competent to the party to pursue the
course applicable to cases of the second class."
The
same view was reiterated by the House of Lords in Neville v. London "Express" Newspaper
Limited, (1919) Appeal Cases 368. In Barraclough v. Brown, (1897) AC 615, it
was said:- "I do not think the appellant can claim to recover by virtue of
the statute, and at the same time insist upon doing so by means other than
those prescribed by the statute which alone confers the right." It was
further pointed out "The right and the remedy are given uno flatu, and the
one cannot be dissociated from the other." In the well-known case of
Secretary of State v. Mask & Co., AIR 1940 Privy Council 105, this question
was considered in connection with Sea Customs Act (1878). It was said:-
"It is settled law that the exclusion of the jurisdiction of the Civil
Courts is not to be readily inferred, but that such exclusion must either be
explicitly expressed or clearly implied. It is also well settled that even if
jurisdiction is so excluded, the Civil Courts have jurisdiction to examine into
cases where the provisions of the Act have not been complied with, or the
statutory tribunal has not acted in conformity with the fundamental principle
of judicial procedure." 533 But having enunciated the general principle in
respect of ouster of the jurisdiction of the Civil Court it was said:-
"But, in their Lordships' opinion, neither Sec, 32 nor the principle
involved in the decision in 401 A 48, affect the validity of an Act of the
Indian Legislature which creates an obligation and provides an exclusive Code
for its determination such an obligation is not covered by sub s. (2) of
Section 32."
In
connection with the imposition of Terminal Tax on salt under the Punjab
Municipal Act. In Firm Seth Radha Kishan v. Administrator, Municipal committee.
Ludhiana, AIR 1963 SC 1547, it was said that
where a statute created a liability and provided a remedy, party aggrieved
should pursue the remedy provided under the Act. A Constitution Bench of this
Court in Firm of Illuri Subbaya Chetty and Sons v. State of Andhra Pradesh, AIR
1964 SC 322, considered the provisions of Madras General Sales Tax Act and the
exclusion of the jurisdiction of the Civil Court. It was pointed out that there
was an express and unambiguous prohibition and no suit could be entertained by
a Civil Court. In connection with the Bombay
Sales Tax Act the same view was reiterated by a Constitution Bench of this
Court in M/s. Kamala Mills Ltd. v. State of Bombay AIR 1965 SC 1942.
In Ram
Swarup and ors. v. Shikar chand, AIR 1966 SC 893, a Constitution Bench examined
the bar on the jurisdiction of the Civil Court in connection with the House and
Tenants U.P. (Temporary) control of Rent and Eviction Act, and came to the
conclusion that a special statute had excluded the jurisdiction in clear and
unambiguous words and it had provided an adequate and satisfactory alternative
remedy to a party. That may be aggrieved by the relevant order and as such the
jurisdiction of the Civil
Court had been
ousted.
This
very question was examined in State of Kerala v. MI s N. Ramaswami Iyer and
sons, AIR 1966 SC 1738, in connection with the Travancore-Cochin General Sales
Tax Act and it was held that the jurisdiction of the Civil Court would be
deemed to have been excluded because the legislature had set up a special
tribunal to determine the question relating to rights or liabilities. which had
been created by the statute.
Again
in connection with the provisions of the Evacuee Property Act, in Ram Gopal Redd),
v. Additional Custodian Evacuee Property Hyderabad, [1966] 3 SCR 214 and
Custodian of Evacuee Property Punjab & Ors. v. Jafran Begum, [1967] 3 SCR
736, it was held that complete machinery for adjudication of all claims had
been provided under the Act and there being a bar on the jurisdiction of any
court, the Act over-rides other laws, including Section 9 of the Code of Civil
Procedure and there was no scope for the Civil Court to entertain any suit.
The
Constitution Bench in Dhuilabhai v. State of Madya Pradesh, AIR 1969 534 SC 78,
said:- "Where there is an express bar of the jurisdiction of the court, an
examination of the scheme of the particular Act to find the adequacy or the
sufficiency of the remedies provided may be relevant but is not decisive to
sustain the jurisdiction of the civil court.
Where
there is no express exclusion the examination of the remedies and the scheme of
the particular Act to find out the intendment becomes necessary and the result
of the inquiry may be decisive. In the latter case it is necessary to see if
the statute creates a special right or a liability and provides for the determination
of the right or liability and further lays down that all questions about the
said right and liability shall be determined by the tribunals so constituted
and whether remedies normally associated with actions in civil courts are
prescribed by the said statute or not." In connection with the Industrial
Disputes Act, in The Premier Automobiles Ltd. v. Kamlakar Shantaram Wadke. AIR
1975 SC 2238 = [1976] 1 SCC 496, it was pointed out that "the Civil Court will have no jurisdiction to try
and adjudicate upon an industrial dispute, if it concerned enforcement of
certain right or liability created only under the Act. " The jurisdiction
of the Civil Court in connection with the levy of octroi duty under the C.P.
and Barar Municipalities Act, 1922 was examined by this Court in Bata Shoe Co.
Ltd. v. Jabalpur Corporation, AIR 1977 SC 955 1 9771 2 SCC 472, and held it was
barred.
Whether
the Court can hear and determine suits relating to levy of professional tax
under the Punjab Municipal Act, 1971 was examined in the case of Munshi Ram v.
Municipal Committee. Chheharta, AIR 1979 SC 1250 = [1979] 3 SCC 83, and it was
held:- Where a Revenue Statute provides for a person aggrieved by an assessment
thereunder, a particular remedy to be sought in a particular forum, in a
particular way, it must be sought in that forum and in that manner, and all
other forums and modes of seeking it are excludes." It was pointed out in
Ram Singh v. Gram Panchayat, MehalKalan, AIR 1986 SC 2197 = [1986] 4 SCC 364,
that when by a special statute rights have been created and jurisdiction of the
Court has been barred then the jurisdiction of the 535 Court to try such suits
has been taken away. In the case of Raja Ram Kumar Bhargava v. Union of India,
AIR 1988 SC 752 = [1988] 1 SCC 68 1, it was said:- "... Wherever a right,
not preexisting in common-law is created by a statute and that statute itself
provided a machinery for the enforcement of the right, both the right and the
remedy having been created uno flatu and a finality is intended to the result
of the statutory proceedings, then, even in the absence of an exclusionary
provision the civil courts'jurisdiction is impliedly barred." The
jurisdiction of Civil Court to entertain a suit for ejectment was examined in Sushil
Kumar Mehta v. GobindRam Bohra, [1990] 1 SCC 193, and it was held that the Rent
Control Act was a complete Code and the jurisdiction to try a case for ejectment
was exclusive under that Act.
With
the increase in the number of taxing statutes, welfare legislations and enactments
to protect a class of citizens, a trend can be noticed that most of such
legislations confer decision making powers on various authorities and they
seeks to limit or exclude Court's power to review those decisions.
The
result is that the power of the Court under section 9 of the Code is being
denuded and curtailed by such special enactments, in respect of liabilities
created or rights conferred. This Court in the judgments referred to above has
upheld the ouster of the jurisdiction of the Court on examination of two
questions
(1)
Whether the right or liability in respect whereof grievance has been made, had
been created under an enactment and it did not relate to a pre-existing common
law right?
(2)
Whether the machinery provided for redressal of the grievance in respect of
infringement of such right or imposition of a liability under such enactment,
was adequate and complete?
The
ouster of the jurisdiction of the Court was upheld on the finding that the
rights or liabilities in question had been created by the Act in question and
remedy provided therein was adequate.
But
the situation will be different where a statute purports to curb and curtail a
pre-existing common law right and purports to oust the jurisdiction of the
Court so far remedy against the orders passed under such statute are concerned.
In
such cases, the courts have to be more vigilant, while examining the question
as to whether an adequate redressal machinery has been provided, before which
the, person aggrieved may agitate his grievance. In the case of katikara Chintamani
Dora v. Guatreddi Annamanaidu, AIR 1974 SC 1069, this Court after referring to
the case of Desika Charyulu v. State of Andhra Pradesh, AIR 1964 SC 807,
observed:- 536 "It was pertinently added that this exclusion of the
jurisdiction of the Civil Court would be subject to two limitations. First, the
Civil Courts have jurisdiction to examine into cases where the provisions of
the Act have not been complied with or the statutory tribunal has not acted in
conformity with the fundamental principles of judicial procedure. The second is
as regards the exact extent to which the powers of statutory tribunals are
exclusive. The question as to whether any particular case falls under the first
or the second of the above categories would depend on the purpose of the
statute and its general scheme, taken in conjunction with the scope of the
enquiry entrusted to the tribunal set up and other relevant factors." It
was held that a suit for declaration that "the decision of the Settlement
Officer/Tribunal holding certain properties to be an 'estate' under section
3(2) (d) of the 1908 Act was void, was maintainable on the ground that the suit
property was not an'inam village'.
In Pyx
Granite Co. Ltd. v. Ministry of Housing and Local Government, [1960] A.C. 260,
the appellants sought a declaration of their common law right to quarry their
land without the need to obtain planning permission under the Town and Country
Planning Act, 1947. In that connection it was said:- "The appellant
company are given no new right of quarrying by the Act of 1947. Their right is
a common law right and the only question is how far it has been taken away.
They do not uno flatu claim under the Act and seek a remedy elsewhere. On the
contrary, they deny that they come within its purview and seek a declaration to
that effect." In spite of the bar placed on the power of the Court. orders
passed under such statutes can be examined on "jurisdictional
question". To illustrate-, a special machinery has been provided for removal
of the encroachments from public land' under different enactments in different
states and the jurisdiction of the Court has been barred in respect of the
orders passed by such special tribunals or authorities constituted under such
Acts. Still a suit will be maintainable before a Court on a plea that the land
in question shall not be deemed to be public land within the meaning of the
definition of public land given in the Act in question, and as such provisions
thereof shall not be applicable.
In the
case of Anisminic Lid. v. Foreign Compensation Commission, (1969) 2 AC 147, a
wide interpretation has been given to the word 'jurisdiction' by the House of
Lords. It was pointed out that in many cases where although the Tribunal 537
has jurisdiction to enter upon an enquiry, it has done or failed to do
something in the course of such enquiry which is of such a nature that its
decision becomes a nullity.
By
mere reference to different provisions of the Corporation Act it shall appear
that the Act does not create any right or liability. Chapter XVI of the Act
only purports to regulate the erection of the buildings within the Corporation
area, so that erections of the buildings within the Corporation area are
systematic, planned and do not adopt the character of mushroom growth. In view
of the Provisions of the Act, whenever it is discovered that erection of any
building or execution of any work has been commenced or is being carried or has
been completed, either without sanction or contrary to the sanction or in
contravention of any condition subject to which such sanction had been
accorded, the Commissioner can make an order directing that such erection or
work shall be demolished. Any person aggrieved by an order has been given a
right to prefer an appeal before the Appellate Tribunai and thereafter to the
Administrator. Subject to any order passed by the Appellate Tribunal and the
Administrator, the order for demolition shall be deemed to be final and
conclusive.
According
to us, it cannot be urged that the provisions of the Act have created any right
or liability and for enforcement thereof remedy has been provided under the Act
itself. The Act purports to regulate the common law right of the citizens to
erect or construct buildings of their choice. This right existed since time immorial.
But with the urbanisation and development of the concept of planned city,
regulations, restrictions, on such common law right have been imposed. But as
the provisions of the Act intend to regulate and restrict a common law right,
and not any right liability created under the Act itself, it cannot be said
that the right and the remedy have become given uno flatu e.g. "in the
same breath". Most of the cases of this Court referred to above related to
statutes creating rights or liabilities and providing remedies at the same
time. As such the principles enunciated therein, shall not be fully applicable
in the present case. In spite of the bar prescribed under sub-sections (4) and
(5) of section 343 and section 347E of the Corporation Act over the power of
the Courts, under certain special circumstances, the Court can examine, whether
the dispute falls within the ambit of the Act. But once the Court is satisfied
that either the provisions of the Act are not applicable to the building in
question or the basic procedural requirements which are vital in nature, have
not been followed, it shall have jurisdiction, to enquire and investigate while
protecting the common law rights of the citizens. Can a Court hold a suit to be
not maintainable, although along with the plaint materials are produced to show
that the building in question is not within the Corporation limits, or that the
constructions were made prior to coming into force of the relevant provisions
of 538 the Act? We are conscious of the fact that persons who make unauthorised
constructions by contravening and violating the building bye-laws or
regulations often run to Courts, with pleas mentioned above, specially that no
notice was issued or served on them, before the Corporation has ordered the
demolition of the construction.
It is
well-known that in most of the cities building regulations and bye-laws have
been framed, still it has been discovered that constructions have been made
without any sanction or in contravention of the sanctioned plan, and such
constructions have continued without any intervention.
There
cannot be two opinions that the regulations and bye- laws in respect of
buildings, are meant to serve the public interest. But at the same time it
cannot be held that in all circumstances, the authorities entrusted with the
demolition of unauthorised constructions, have exclusive power, to the absolute
exclusion of the power of the Court.
In
some special cases where "jurisdictional error" on the part of the
Corporation is established, a suit shall be maintainable. According to us,
(1)The Court should not ordinarily entertain a suit in connection with the
proceedings initiated for demolition, by the Commissioner, in terms of section
343 (1) of the Corporation Act. The Court should direct the persons aggrieved
to pursue the remedy before the Appellate Tribunal and then before the
Administrator in accordance with the provisions of the said Act.
(2)The
Court should entertain a suit questioning the validity of an order passed under
section 343 of the Act.
only
if the Court is of Prima facie opinion that the order is nullity in the eyes of
law because of any "jurisdictional error" in exercise of the power by
the commissioner or that the order is outside the Act.
TEMPORARY
INJUNCTION
It
need not be said that primary object of filing a suit challenging the validity
of the order of demolition is to restrain such demolition with the intervention
of the Court.
In
such a suit the plaintiff is more interested in getting an order of interim
injunction. It has been pointed out repeatedly that a party is not entitled to
an order of injunction as a matter of right or course., Grant of injunction is
within the discretion of the Court and such discretion is to be exercised in favour
of the plaintiff only if it is proved to the satisfaction of the Court that
unless the defendant is restrained by an order of injunction, an irreparable
loss or damage will be caused 539 to the plaintiff during the pendency of the
suit. The purpose of temporary injunction is, thus, to maintain the status quo.
The Court grants such relief according to the legal principles--ex debite justitiae.
Before any such order is passed the Court must be satisfied that a strong primafacie
case has been made out by the plaintiff including on the question of
maintainability of the suit and the balance of convenience is in his favour and
refusal of injunction would cause irreparable injury to him.
Under
the changed circumstance with so many cases pending in Courts, once an interim
order of injunction is passed, in many cases, such interim orders continue for
months; if not for years. At final hearing while vacating such interim orders
of injunction in many cases, it has been discovered that while protecting the
plaintiffs from suffering the alleged injury, more serious injury has been
caused to the defendants due to continuance of interim orders of injunction
without final hearing. It is a matter of common knowledge that on many
occasions even public interest also suffers in view of such interim orders of
injunction, because persons in whose favour such orders are passed are
interested in perpetuating the contraventions made by them by delaying the
final disposal of such applications. The court should be always willing to extent
its hand to protect a citizen who is being wronged or is being deprived of a
property without any authority in law or without following the procedure which
are fundamental and vital in nature.
But at
the same time the judicial proceedings cannot-be.
used
to protect or to perpetuate a wrong committed by a person who approaches the
Court.
Power
to grant injunction is an extraordinary power vested in the Court to be
exercised taking into consideration the facts and circumstances of a particular
case. The Courts have to be more cautious when the said power is being
exercised without notice or hearing the party who is to be affected by the
order so passed. That is why Rule 3 of Order 39 of the Code requires that in
ail cases the Court shall, before grant of an injunction, direct notice of the
application to be given to the opposite party, except where it appears that
object of granting injunction itself would be defeated by delay. By the Civil
Procedure Code (Amendment) Act, 1976, a proviso has been added to the said rule
saying that "where it is proposed to grant an injunction without giving
notice of the application to the opposite party, the Court shall record the
reasons for its opinion that the object of granting the injunction would be
defeated by delay......
It has
come to our notice that in spite of the aforesaid statutory requirement, the
Courts have been passing orders of injunction before issuance of notices or
hearing the parties against whom such orders are to operate without recording
the reasons for passing such orders. It is said that if the reasons for grant
of injunction 540 are mentioned, a grievance can be made by the other side that
Court has prejudged the issues involved in the suit.
According
to us, this is a misconception about the nature and the scope of interim
orders. It need not be pointed out that any opinion expressed in connection
with an interlocutory application has no bearing and shall not affect any
party, at the stage of the final adjudication.
Apart
from that now in view of the proviso to Rule 3 aforesaid, there is no scope for
any argument. When the statute itself requires reasons to be recorded, the
Court cannot ignore that requirement by saying that if reasons are recorded, it
may amount to expressing an opinion in favour of the plaintiff before hearing
the defendant.
The
imperative nature of the proviso has to be judged in the context of Rule 3 of
Order 39 of the Code. Before the Proviso aforesaid was introduced, Rule 3 said
"the Court shall in all cases, except where it appears that the object of
granting the injunction would be defeated by the delay, before granting an
injunction, direct notice of the application for the same to be given to the
opposite party".
The
proviso was introduced to provide a condition, where Court proposes to grant an
injunction without giving notice of the application to the opposite party,
being of the opinion that the object of granting injunction itself shall be
defeated by delay. The condition so introduced is that the Court "shall
record the reasons" why an ex parte order of injunction was being passed
in the facts and circumstances of a particular case. In this background, the
requirement for recording the reasons for grant of ex parte injunction, cannot
be held to be a mere formality. This requirement is consistent with the
principle, that a party to a suit, who is being restrained from exercising a
right which such party claims to exercise either under a statute or under the
common law, must be informed why instead of following the requirement of Rule
3, the procedure prescribed under the proviso has been followed. The party who
invokes the jurisdiction of the Court for grant of an order of restraint
against a party, without affording an opportunity to him of being heard, must
satisfy the Court about the gravity of the situation and Court has to consider
briefly these factors in the ex parts order.
We are
quite conscious of the fact that there are other statutes which contain similar
provisions requiring the Court or the authority concerned to record reasons
before exercising power vested in them. In respect of some of such provisions
it has been held that they are required to be complied with but non-compliance
there of will not vitiate the order so passed. But same cannot be said in respect
of the proviso to Rule 3 of Order 39. The Parliament has prescribed a
particular procedure for passing of an order of injunction without notice to
the other side, under exceptional circumstances. Such ex parte orders have far
reaching effect, as such a conditions has been imposed that Court must record
reasons before passing such order. If it is held that the compliance of the
proviso aforesaid is optional and not obligatory, then the introduction of the
proviso by the Parliament shall be a futile exercise and that part of Rule 3
will be 541 a surplusage for all practical purpose. Proviso to Rule 3 of Order
39 of the Code, attracts the principle, that if a statute requires a thing to
be done in a particular manner, it should be done in that manner or not all.
This principle was approved and accepted in well-known cases of Taylor v. Taylor. (1875) 1 Ch. D. 426, Nazir
Ahmed v. Emperor, AIR 1936 PC 253. This Court has also expressed the same view
in respect of procedural requirement of the Bombay Tenancy and Agricultural
Lands Act in the case of Ramachandra Keshav Adke v. Govind Joti Chavare, AIR
1975 SC 915.
As
such whenever a Court considers it necessary in the facts and circumstances of
a particular case to pass an order of injunction without notice to other side.
It must record the reasons for doing so and should take into consideration,
while passing an order of injunction, all relevant factors, including as to how
the object of granting injunction itself shall be defeated if an ex parte order
is not passed. But any such ex parte order should be in force upto a particular
date before which the plaintiff should be required to serve the notice on the
defendant concerned. In the Supreme Court Practice 1993, Vol. 1, at page 514,
reference has been made to the views of the English Courts saying:- "Exparte
injunctions are for cases of real urgency where there has been a true
impossibility of giving notice of motion....
An ex parte
injunction should generally be until a certain day, usually the next motion
day. . . ." Accordingly we direct that the application for interim
injunction should be considered and disposed of in the following manner:- (i)The
Court should first direct the plaintiff to serve a copy of the application with
a copy of the plaint along with relevant documents on the counsel for the
Corporation or any competent authority of the Corporation and the order should
be passed only after hearing the parties.
(ii)If
the circumstances of a case so warrant and where the Court is of the opinion,
that the object of granting the injunction would be defeated by delay, the
Court should record reasons for its opinion as required by proviso to Rule 3 of
order 39 of the Code, before passing an order for injunction. The Court must
direct that such order shall operate only for a period of two weeks, during
which notice along 542 with copy of the application, plaint and relevant
documents should be served on the competent authority or the counsel for the
Corporation. Affidavit of service of notice should be filed as provided by
proviso to Rule 3 of order 39 aforesaid If the Corporation has entered
appearance, any such exparte order of injunction should be extended only after
hearing the counsel for the Corporation.
(iii)While
passing an ex parte order of injunction the Court shall direct the plaintiff to
give an undertaking that he will not make any further construction upon the
premises till the application for injunction is finally heard and disposed of.
In the
result, the appeals are allowed to the extent indicated above. In the
circumstances of these cases, there shall be no order as to costs.
VPR.
Appeals allowed.
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