Friday, 25 July 2014

Whether third party can get impleaded in land acquisition proceeding before court?


 In Ajjam Linganna & Ors. v. Land Acquisition Officer, RDO, Nizamabad & Ors., (2002) 9 SCC 426, this court made observations to the effect that it is not open to the parties to apply directly to the Reference Court for impleadment, and to seek enhancement under Section 18 for compensation.
It is well established that the Reference Court gets jurisdiction only if the matter is referred to it under Section 18 or Section 30 of the Act by the Land Acquisition Officer and if the Civil Court has got the jurisdiction and authority only to decide the objections referred to it. The Reference Court cannot widen the scope of its jurisdiction or decide matters which are not referred to it.
While deciding the said case, the Court placed
reliance on the
judgments in Parmatha Nath Malik Bahadur v. Secretary of State, AIR 1930 PC 64; andMohammed Hasnuddin v. The State of Maharashtra, AIR 1979 SC 404.
(See also: Kothamasu Kanakarathamma & Ors. v. State of Andhra Pradesh & Ors., AIR 1965 SC304)
It is evident from the above, that a person who has not made an application before the Land Acquisition Collector, for making a reference under Section 18 or 30 of the Act, 1894, cannot get himself impleaded directly before the Reference Court.
20. In view of the above, the legal issues involved herein, can be summarised as under:-
(i) An application under Order IX Rule 13 CPC cannot be filed by a person who was not initially a party to the proceedings; (ii) Inherent powers under Section 151 CPC can be exercised by the Court to redress only such a grievance, for which no remedy is provided for under the CPC;
(iii) In the event that an order has been obtained from the Court by playing fraud upon it, it is always open to the Court to recall the said order on the application of the person aggrieved, and such power can also be exercised by the appellate court;
(iv) Where the fraud has been committed upon a party, the court cannot investigate such a factual issue, and in such an eventuality, a party has the right to get the said judgment or order set aside, by filing an independent suit.
(v) A person aggrieved may maintain an application before the Land Acquisition Collector for reference under Section 18 or 30 of the Act, 1894, but cannot make an application for impleadment or apportionment before the Reference Court.
                                                                  REPORTABLE
                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION


                         CIVIL APPEAL NO.629 of 2004




      Ramji Gupta & Anr.                           … Appellants


                                   Versus


      Gopi Krishan Agrawal (D) & Ors.                          … Respondents


                                  With


                         CIVIL APPEAL NO. 630 of 2004


Citation: 2014II AD (S.C.) 188, AIR2013SC3099, 2013(4)ALD178, 2013(4) ALJ 466., 2013 (99) ALR 66, 2013(5)ALT12, 2013 3 AWC2782SC, 116(2013)CLT447, 2013(3)CTC98, 2013(2)J.L.J.R.341, JT2013(10)SC443, 2013-3-LW305, 2013(3)PLJR1, 2013(2)RCR(Civil)898, 2013(5)SCALE665, (2013)9SCC438



                            


      Dr. B.S. Chauhan, J.





      C.A. No.629 of 2004
      1.    This appeal has been preferred against the  judgment  and  order
      dated 6.9.2002, passed by the High Court of Allahabad in CMWP No.25785
      of 2002, by way of which,  the  High  Court  has  dismissed  the  writ
      petition of the appellants, affirming the judgment and decree  of  the
      Small Causes Court  dated  20.4.2001,  which  stood  affirmed  by  the
      Revisional Court, vide judgment and  decree  dated  13.5.2002.   Civil
      Appeal No.630 of 2004 has been filed against the  judgment  and  order
      dated 25.2.2003, in Review Application No.206905 of 2002 of  the  High
      Court of Judicature at Allahabad, dismissing the review petition.   In
      the  aforesaid  judgments,  the  courts  below  have  held,  that  the
      relationship of a landlord and tenant did not exist between respondent
      nos.1 and 2 and the appellants.


      2.    Facts and circumstances giving rise to this appeal are that:
      A.    The dispute pertains to the  ownership  of  shop  no.53/11  (old
      number) corresponding to its new number, i.e. 53/8, Nayayaganj, Kanpur
      Nagar.  Janki Bibi (Ist) daughter of Har Dayal,  was  married  to  one
      Durga Prasad, son of Dina Nath.  Radhey Shyam was the adopted  son  of
      Durga Prasad, whose son Shyam Sunder was married to Janki Bibi  (2nd).
      Shyam Sunder died in the year 1914.  Thus, Radhey Shyam created a life
      interest in the property in favour of  Janki Bibi (2nd), by way of  an
      oral Will, which further provided that she would  have  the  right  to
      adopt a son only with the consent of Mohan Lal, the grand son  of  Har
      Dayal.  Gopi Krishan, the great grand son of Mohan Lal, claims to have
      been adopted by Janki Bibi (2nd), with the consent of Mohan  Lal,  and
      as regards the same, a registered document was also prepared.
      B.    Gopi Krishan filed a Regular Suit No.45  of  1956  against  Smt.
      Janki Bibi (2nd) in the Court of the Civil  Judge,  Mohanlal  Ganj  in
      Lucknow, seeking the relief of declaration, stating  that  Janki  Bibi
      was only a life estate holder in respect of the  properties  shown  in
      Schedule ‘A’, and that further, she was not entitled  to  receive  any
      compensation or rehabilitation grant bonds with respect to the village
      Nawai Perg, Jhalotar Ajgain, Tehsil  Hasangunj,  District  Unnao.   He
      stated all this, while claiming himself to be her adopted son.


      C.    Janki Bibi (2nd)  contested  the  suit,  denying  the  aforesaid
      adoption.  However, the suit was  decreed  vide  judgment  and  decree
      dated 23.4.1958, holding that while Smt. Janki Bibi (2nd) was in  fact
      the life estate holder  of  Radhey  Shyam’s  property,  she  was  also
      entitled to receive the said compensation, in respect of the  property
      in question herein.


      D.    The suit shop was under the tenancy of one  Shri  Badri  Vishal.
      However, Janki Bibi (2nd)  transferred  the  same  in  favour  of  the
      appellant’s mother Smt. Ram Kumari, wife of Shri  Badri  Vishal,  vide
      registered sale deed dated 7.5.1974.   The  said  tenant,  Shri  Badri
      Vishal died on 23.1.1986, and the tenancy was hence inherited  by  the
      appellants.  They thus, continued to pay rent to the vendee  Smt.  Ram
      Kumari.  Smt. Janki Bibi (2nd) died on 27.2.1996.


      E.    Respondent no.1 Gopi Krishan, filed SCC Suit No.77  of  1989  on
      21.2.1989, alleging that the appellants had defaulted  in  making  the
      payment of rent, and that a sum of Rs.2,768.62 was outstanding against
      them, as rent payable between the time period 17.2.1986 to  13.8.1988,
      and also damages for the period 14.8.1988 to 21.2.1989, amongst  other
      amounts due.  During the pendency  of  the  suit,  Shri  Gopi  Krishan
      respondent no.1, sold the said suit property to Smt. Vidyawati Rathaur
      respondent no.2, vide registered sale deed dated  3.8.1989.   In  view
      thereof, respondent no.2 got herself impleaded as  plaintiff  no.2  in
      Suit No.77 of 1989.


      F.    The appellants contested the suit on various  grounds,  claiming
      themselves to be the owners of the property on the  basis  of  a  sale
      deed.  Smt. Vidyawati Rathaur respondent no.2, also filed Suit  No.792
      of 1995 before the Civil Court, Kanpur, seeking permanent  injunction,
      restraining  the  appellants   from   causing   any   addition(s)   or
      alteration(s) in the shop in dispute. The said suit is still  pending.




      G.    The Small Causes Court, Kanpur, dismissed  Suit  No.77  of  1989
      vide judgment and decree dated 10.5.1999, holding that no relationship
      of landlord and tenant existed between respondent nos.1 and 2 and  the
      appellants.  However, the said judgment and decree was  set  aside  by
      the Revisional Court, vide judgment and decree dated 8.3.2000, and the
      case was remanded to the Judge, Small Causes Court  for  deciding  the
      same afresh.


      H.    After such remand, the suit was decreed vide judgment and decree
      dated 20.4.2001, holding that the suit property had been  acquired  by
      Gopi Krishan Agrawal, plaintiff/respondent, by virtue of the  judgment
      in Suit No.45 of 1956, which was decided on 23.4.1958,  and  that  the
      relationship of a landlord and tenant, could in fact be deemed to have
      been created between the parties. The appellants/defendants had hence,
      been in default of payment of rent.


      I.    Aggrieved, the appellants filed Revision No.57  of  2001  before
      the learned District Judge, Kanpur, which was dismissed vide  judgment
      and order dated 13.5.2002.  The  said  judgment  and  order  has  been
      affirmed by the High Court, dismissing the writ petition vide judgment
      and order dated 6.9.2002.
      J.    Aggrieved, the appellants preferred a review petition, which has
      also  been  dismissed  by  the  impugned  judgment  and  order   dated
      25.2.2003.
                 Hence, this appeal.


      3.    Shri D.K. Garg, learned counsel appearing  for  the  appellants,
      has submitted  that  the  Small  Causes  Court  has  no  jurisdiction/
      competence, to determine the issue of title  over  the  property,  and
      that all the courts below have erred, as they  have  adjudicated  upon
      the issue of title.  Such a course is not  permissible  in  collateral
      proceedings, as the issue of title can be adjudicated  upon,  only  by
      the Civil Court.  Moreover, the judgment  and  order  dated  23.4.1958
      could not be given effect, in view of the provisions of Section  14(2)
      of the Hindu Succession Act, 1956  (hereinafter  referred  to  as  the
      ‘Act, 1956’).  Therefore, the appeal deserves to be allowed.


      4.    Per contra, Shri Rakesh Dwivedi, learned senior counsel and Shri
      Arvind Kumar, learned counsel, appearing  for  the  respondents,  have
      opposed the appeals, contending that the courts below have not touched
      upon or determined the issue of title. It was necessary for the courts
      below, to rely upon the said  judgment  and  decree  dated  23.4.1958,
      wherein it was categorically held that Smt. Janki  Bibi  (2nd)  was  a
      life estate holder, and that as she had not  acquired  absolute  title
      over the property, the sale deed executed by her in favour of Smt. Ram
      Kumari, was null  and  void.   The  said  judgment  and  decree  dated
      23.4.1958, was also relied upon  in  collateral  proceedings,  wherein
      Smt. Ram Kumari, mother of the appellants and vendee in the sale  deed
      dated 7.5.1974, had taken several pleas, all of which  were  rejected,
      and such findings have been affirmed by the  High  Court.   Thus,  the
      appeal has no merit, and is hence, liable to be dismissed.


      5.    We have considered the rival submissions made by learned counsel
      for the parties, and perused the record.


      6.    In Shivdev Kaur (D) by L.Rs. & Ors. v. R.S. Grewal (Civil Appeal
      Nos.5063-5065 of 2005, decided on 20.3.2013), this  Court  dealt  with
      the issue of Section 14(2) of the Act 1956 and held :-
           “Thus, in view of the  above,  the  law  on  the  issue  can  be
           summarised to the effect that if a Hindu female has  been  given
           only a “life interest”, through  Will   or  gift  or  any  other
           document referred to in Section 14 of the  Act  1956,  the  said
           rights would not stand crystallised  into the absolute ownership
           as interpreting the provisions to  the  effect  that  she  would
           acquire absolute ownership/title into the property by virtue  of
           the provisions of Section 14(1) of the Act 1956, the  provisions
           of Sections 14(2) and 30 of the Act 1956 would become otios.


                 Section 14(2) carves out an exception to rule  provided  in
           sub-section (1)  thereof,  which  clearly  provides  that  if  a
           property has been acquired by a Hindu female by a Will or  gift,
           giving her only a “life interest”, it would remain the same even
           after commencement of the Act 1956,  and  such  a  Hindu  female
           cannot acquire absolute title.”

                While  deciding  the  said  issue,  this  Court  has  placed
      reliance upon various previous judgments of this Court, including Mst.
      Karmi v. Amru & Ors., AIR 1971 SC 745; Navneet Lal @ Rangi v. Gokul  &
      Ors., AIR 1976 SC 794; Sadhu Singh v. Gurdwara Sahib  Narike  &  Ors.,
      AIR 2006 SC 3282; and Jagan Singh (Dead) Through LRs. v.  Dhanwanti  &
      Anr., (2012) 2 SCC 628.
      (See also: Muniananjappa & Ors. v. R. Manual & Anr., AIR 2001 SC 1754;
      Sharad Subramanyan v. Soumi Mazumdar & Ors., AIR  2006  SC  1993;  and
      Gaddam Ramakrishnareddy & Ors. v. Gaddam Ramireddy & Anr.,   (2010)  9
      SCC 602).


      7.    In order to operate as res judicata, the finding must  be  such,
      that it disposes of a matter that is  directly  and  substantially  in
      issue in the former suit, and that the said issue must have been heard
      and finally decided by the court trying such suit.  A matter which  is
      collaterally or incidentally in issue for the purpose  of  deciding  a
      matter which is directly in issue in the  case,  cannot  be  made  the
      basis for a plea of res judicata. A  question  regarding  title  in  a
      small  cause  suit,  may  be  regarded  as  incidental  only  to   the
      substantial issue in the  suit,  and  therefore,  when  a  finding  as
      regards title to immovable property is  rendered  by  a  Small  Causes
      Court, res judicata cannot be pleaded  as  a  bar  in  the  subsequent
      regular suit, for the determination or enforcement  of  any  right  or
      interest in the immovable property. (Vide: Dhulabai etc. v.  State  of
      M.P. & Anr., AIR 1969 SC 78; Smt. Gangabai w/o Rambilas Gilda v.  Smt.
      Chhabubai w/o Pukharajji  Gandhi,  (1982)  1  SCC  4;  Life  Insurance
      Corporation of India v. M/s. India Automobiles & Co. & Ors., AIR  1991
      SC 884; and Rameshwar Dayal v. Banda (Dead) through His L.Rs.  &  Anr.
      (1993) 1 SCC 531).


      8.    In Nirmal Jeet Singh Hoon v. Irtiza Hussain &  Ors.,  (2010)  14
      SCC 564, this Court has held, that the Small Causes Court has no right
      to adjudicate upon the title of the property, as  Section  23  of  the
      Provincial Small Cause Courts Act, 1887 (hereinafter  referred  to  as
      the Act, 1887) reads:
           “Return of plaints in suits  involving  questions  of  title-(1)
           Notwithstanding anything in the foregoing portion of  this  Act,
           when the right of a plaintiff and the relief claimed by him in a
           Court of Small Cause depend upon the  proof  or  disproof  of  a
           title to immovable property or other title which  such  a  Court
           cannot finally determine, the Court may  at  any  stage  of  the
           proceedings return the plaint to be presented to a Court  having
           jurisdiction to determine the title.
            (2)   xx         xx         xx         xx”
                                               (Emphasis added)
           Thus, it is evident from the above, that the Small Causes  Court
      cannot adjudicate upon  the  issue  of  title.  In  the  instant  case
      therefore, the trial court has rightly refused to go into such  issue,
      and neither can any fault be found with the findings recorded  by  the
      courts below in this regard. Furthermore, as it is  an  admitted  fact
      that defendant nos.1 and 2 were tenants of  the  original  plaintiffs,
      the question of title could not be adjudicated at the  behest  of  the
      appellants under any circumstance.


      9.    While dealing with the provisions of  Section  23  of  the  Act,
      1887, this Court in Budhu Mal v. Mahabir Prasad & Ors.,  AIR  1988  SC
      1772 held, that a  question  of  title  could  also  be  decided  upon
      incidentally, and that any finding recorded by a Judge,  Small  Causes
      Court in this behalf, could not operate as  res  judicata  in  a  suit
      based on title.
            Furthermore, the procedure adopted in the trial of a case before
      the Small Causes Court is summary in nature. Clause (35)  of  Schedule
      II to the Act 1887, has made the Small Causes Court a court of limited
      jurisdiction.  Certain  suits  are  such,  in  which  the  dispute  is
      incapable of being decided in a summarily.


      10.   We have further examined the record of the case, and  the  Court
      of Small Causes, while determining the issues  involved  therein,  has
      taken note of the result of the earlier Suit No.45  of  1956,  decreed
      vide judgment and decree dated 23.4.1958, and also  of  the  Execution
      Appeal No.64 of 1965, in the matter of Smt. Bibi Devi v.  Janki  Bibi,
      wherein it was held, that Janki Devi (2nd), being a life estate holder
      had no right to transfer the property.  In Execution Appeal  No.64  of
      1965, Smt. Ram Kumari, mother of the  appellants  was  made  a  party,
      however, so far  as  the  issue  of  title  by  the  courts  below  is
      concerned, the trial court held as under:
           “This  court  cannot  determine   the   question   relating   to
           proprietary right/ownership of the parties.  On this point, this
           court has limited jurisdiction to decide  as  to  whether  there
           exists the relationship of house-owner and  tenants  in  between
           the parties or not.  As per the judgment passed by the competent
           court,  Smt. Janakibibi had the right in the  disputed  property
           during her life time only. She had no right or authority to sale
           or transfer the disputed  property.   This  court  is  bound  to
           accept the aforesaid conclusion. Therefore, if  Smt.  Janakibibi
           has transferred the disputed property, contrary to  her  rights,
           to the defendant no. 4 – Smt. Ramkumari on  7th  of  May,  1974,
           then  because  of  that,  no  rights  are  established  to  Smt.
           Ramkumari. Such document is a nullity and  no  legal  cognizance
           can  be  taken  in  account.”                          (Emphasis
           added)




                 The said finding has been upheld by all the courts.


      11.   We are not inclined to  enter  into  the  controversy  regarding
      Section 34 of the Specific Relief Act, 1963, as it has been  submitted
      that the remedy of declaration envisaged by the said provisions is not
      exhaustive, and that there can be a declaration even outside the scope
      of  the  said  Section  34.   In  support  of  the  said   contention,
      submissions have been made on the basis of the judgments of this Court
      in Radha Rani Bhargava v.  Hanuman  Prasad  Bhargava  (deceased)  thr.
      L.Rs. & Ors., AIR 1966 SC 216; and M/s. Supreme General Films Exchange
      Ltd. v. His Highness Maharaja Sir Brijnath Singhji  Deo  of  Maihar  &
      Ors., AIR 1975 SC 1810.


      12.   In view of the above,  we  do  not  see  any  cogent  reason  to
      interfere with the impugned judgments.  The appeal lacks merit and  is
      accordingly,  dismissed.


      C.A. No. 630 of 2004
            In view of the judgment in C.A.  No.629  of  2004,  no  specific
      order is required in this appeal.  It is accordingly dismissed.


                          ….……………………………...................................J.
                            (Dr. B.S. CHAUHAN)






                         …..……………………………...................................J.
                                          (FAKKIR MOHAMED IBRAHIM KALIFULLA)


      NEW DELHI;
      April 11, 2013.















                                                                  REPORTABLE
                        IN THE SUPREME COURT OF INDIA
                        CIVIL APPELLATE JURISDICTION


                        CIVIL APPEAL NO.2798 of 2013




      Ram Prakash Agarwal & Anr.                   … Appellants


                                   Versus


      Gopi Krishan  (Dead through L.Rs.) & Ors.                … Respondents




                                     And




                        CIVIL APPEAL NO. 2799 of 2013






      Hari Prakash Agarwal & Anr.                  … Appellants


                                   Versus


      Gopi Krishan  (Dead through L.Rs.) & Ors.                … Respondents






                              J  U D G M E N T


      Dr. B.S. Chauhan, J.




      1.    These appeals have been preferred against the impugned  judgment
      and order, dated 20.10.2011, passed by the High  Court  of  Allahabad,
      (Lucknow Bench) in Writ Petition No.764 of 2002 (MS), by way of which,
      the High Court has set aside  the  order  of  the  trial  court  dated
      20.2.2002 by which it had rejected the application under Order IX Rule
      13 read with  Section  151  of  the  Code  of  Civil  Procedure,  1908
      (hereinafter referred to as the ‘CPC’), for setting aside the judgment
      and decree dated 22.5.2000 in Misc. Case No. 66 of 1999.


      2.    Facts and circumstances giving rise to these appeals are that:
      A.    The dispute pertains to the  ownership  of  shop  no.53/11  (old
      number) corresponding to its new number, i.e. 53/8, Nayayaganj, Kanpur
      Nagar.  Janki Bibi (Ist) daughter of Har Dayal,  was  married  to  one
      Durga Prasad, son of Dina Nath.  Radhey Shyam was the adopted  son  of
      Durga Prasad, whose son Shyam Sunder was married to Janki Bibi  (2nd).
      Shyam Sunder died in the year 1914.  Thus, Radhey Shyam created a life
      interest in the property in favour of  Janki Bibi (2nd), by way of  an
      oral Will, which further provided that she would  have  the  right  to
      adopt a son only with the consent of Mohan Lal, the grand son  of  Har
      Dayal.  Gopi Krishan, the great grand son of Mohan Lal, claims to have
      been adopted by Janki Bibi (2nd), with the consent of Mohan  Lal,  and
      as regards the same, a registered document was also prepared.
      B.    Gopi Krishan filed Regular Suit No.45 of 1956 against Smt. Janki
      Bibi (2nd), in the Court of the Civil Judge Mohanlal  Ganj,   Lucknow,
      seeking the relief of declaration, stating that Janki Bibi was only  a
      life estate holder in respect of the properties shown in Schedule ‘A’,
      and that further, she was not entitled to receive the compensation  or
      rehabilitation grant bonds with respect to the  village  Nawai  Perg.,
      Jhalotar Ajgain, Tehsil Hasangunj,  District  Unnao.   He  stated  all
      this,  claiming himself to be her adopted son.


      C.    Janki Bibi (2nd)  contested  the  suit,  denying  the  aforesaid
      adoption.  However, the suit was  decreed  vide  judgment  and  decree
      dated 23.4.1958, holding that while Smt. Janki Bibi (2nd) was in  fact
      the life estate holder  of  Radhey  Shyam’s  property,  she  was  also
      entitled to receive the said compensation in respect of  the  property
      in question herein.


      D.    That the property bearing no.264/1-53 admeasuring 17  bighas,  2
      biswas, 2 biswansi and 19  kachwansi  to  the  extent  of  half  share
      situated in village Suppa Rao, Pargana  Tehsil, District Lucknow,  was
      owned by Radhey Shyam.  The aforesaid suit land was  acquired  by  the
      State  Government  for  Uttar  Pradesh  Avas   Evam   Vikas   Parishad
      (hereinafter referred to as, the ‘Parishad’), for the  development  of
      the Talkatora Road Scheme, Lucknow, vide notification under Section  4
      of the Land Acquisition Act, 1894 (hereinafter  referred  to  as  `the
      Act, 1894’) dated 20.10.1962.  The possession of  the  said  land  was
      taken on 30.12.1971, after completion of certain formalities.


      E.     Gopi  Krishan  approached  the   Nagar   Mahapalika   Tribunal,
      constituted under the Municipal Corporation Act, 1959, under  Sections
      18/30 of the Act, 1894, by filing Misc. Case No.269 of 1983,  claiming
      compensation in respect of the properties acquired  by  the  State  of
      U.P., on the ground that he possessed the legal right to do so,  as  a
      vested remainder, under the judgment and decree dated  23.4.1958.   In
      the said case, Smt. Janki Bibi (2nd) was a party and after her  death,
      Madhuri Saran and  his  legal  heirs  were  also  brought  on  record,
      pursuant to the Will of Janki Bibi as a legatee.


      F.    In the meanwhile, Madhuri Saran, predecessor in interest of  the
      present appellants, filed a Reference under Section  18  of  the  Act,
      1894 which was registered as Miscellaneous Case  No.66  of  1999,  for
      enhancement of compensation in respect of half share in the  aforesaid
      suit land.  During the pendency of the aforesaid proceedings,  Madhuri
      Saran died and  his  legal  heirs  were  substituted.   Gopi  Krishan,
      respondent no.1 was not impleaded  as  a  party.   The  Tribunal  vide
      judgment and order dated 22.5.2000 held that the opposite parties were
      entitled to receive compensation (including enhancement)  relating  to
      the aforesaid property.  In pursuance of the said Reference award, the
      appellants applied for withdrawal of the enhanced compensation.   When
      respondent no.1 learnt about the order dated 22.5.2000,  he  filed  an
      application under Order IX Rule 13 read with Section 151 CPC, for  the
      purpose  of  setting  aside  the  said  award  dated  22.5.2000.   The
      Tribunal, vide order dated 20.2.2002, rejected the  said  application,
      on the ground that an application under Order IX Rule 13 can  only  be
      filed by a person who was a party to the proceedings in which such  an
      order was passed, and that such an application was not maintainable at
      the behest of a stranger.


      G.    Aggrieved, the respondents preferred a writ petition before  the
      High Court, which has been allowed by the Court holding, that while an
      application under Order IX Rule 13  was  not  maintainable,  the  said
      award should have been set aside  in  exercise  of  its  powers  under
      Section 151 CPC, as the same was required to be done, in order  to  do
      substantial justice between the parties.  Hence, these appeals.
      3.    We have heard  Shri S. Naphade and  Shri  Pradip  Kant,  learned
      counsel appearing for the appellants and Shri Rakesh Dwivedi,  learned
      senior counsel appearing for the respondents, as regards  the  issues,
      particularly with respect to the extent that the provisions of the CPC
      are applicable to these proceedings,  and  further,  in   relation  to
      whether an application under Order IX Rule 13 CPC can be maintained by
      a person who was never a party to the suit, and lastly, in  the  event
      that such an application is not maintainable, whether such relief  can
      be granted in exercise of the inherent powers under Section 151 CPC.


      4.    In Smt. Santosh Chopra v. Teja Singh & Anr., AIR 1977  Del  110,
      the Delhi High Court dealt with the issue with respect  to  whether  a
      non-party/stranger has any locus standi to move an  application  under
      Order IX Rule 13 CPC, to get an ex-parte decree set aside, he would be
      adversely affected by  such  decree.   In  the  said  case,  the  Rent
      Controller had held, that it would  be  patently  unjust  to  bar  any
      remedy for such a landlord, since the applicant was  the  assignee  of
      the rights of the previous landlord, therefore,  he  could  apply  for
      setting aside of the decree as such.  The Delhi High Court came to the
      conclusion that the statutory provisions  of  Order  IX  Rule  13  CPC
      itself, refer to the defendant in an action, who  alone  can  move  an
      application under Order IX Rule 13 CPC.  Therefore, a  person  who  is
      not a party, despite the fact that he might be interested in the suit,
      is not entitled to move an application under the rule.  In fact he had
      no locus standi to have the order set aside.  Such an order could  not
      be passed even under Section 151  CPC.  In  view  thereof,  the  order
      passed by the Rent Controller was reversed.


      5.    In Smt. Suraj Kumari v. District Judge,  Mirzapur  &  Ors.,  AIR
      1991 All 75, the Allahabad High Court dealt with a similar issue,  and
      rejected the contention that at the instance of a stranger,  a  decree
      could be reopened in an application under Order IX Rule 13  read  with
      Section 151 CPC, even if such decree is based on a compromise, or  has
      been obtained by practising fraud upon the court, to the prejudice  of
      the said stranger.


      6.    However, in Dulhim Suga Kuer & Anr. v. Deorani Kuer & Ors.,  AIR
      1952 Pat 72, the Patna High Court dealt with the provisions of Section
      146 CPC, which contemplate a change of title after the decree has been
      awarded and held that, the true test  is  whether  the  transferee  is
      affected by the order or decree in question.  Where, the  transfer  is
      subsequent to the ex parte decree, the transferee would  certainly  be
      interested in setting aside the ex parte decree.


      7.    In Surajdeo v. Board of Revenue U.P. Allahabad & Ors., AIR  1982
      All 23, the  Allahabad  High  Court  dealt  with  an  issue  where  an
      application was filed by a non-party, under Order IX Rule  13  CPC  to
      set aside the ex parte decree. The Court held:
           “the petitioner was vitally interested in the decree  passed  in
           favour of the contesting opposite parties which he wants  to  be
           vacated.  If the decrees in favour of  the  contesting  opposite
           parties remain intact, the petitioner’s right of irrigating  his
           fields from the disputed land shall  be  vitally  affected.   In
           such a circumstance even if the petitioner is assumed to have no
           locus standi to move the application for setting  aside  the  ex
           parte decrees in favour of the contesting opposite  parties,  it
           cannot be said that the trial court had no jurisdiction  to  set
           aside the ex parte decrees which were against the provisions  of
           law and were the result of collusion and fraud practiced by  the
           plaintiff and the defendants  in  the  suits  in  which  decrees
           recognizing the claim of the contesting opposite parties in  the
           disputed land as Sirdar were passed.”

      (Emphasis added)




      8.     Section 151 CPC is not a substantive provision that confers the
       right to get any relief  of  any  kind.   It  is  a  mere  procedural
      provision which enables a party to have the proceedings of  a  pending
      suit conducted in a manner that is consistent with justice and equity.
      The court can do justice between the parties  before  it.   Similarly,
      inherent powers  cannot  be  used  to  re-open  settled  matters.  The
      inherent powers of the Court must, to  that  extent,  be  regarded  as
      abrogated by the Legislature. A  provision  barring  the  exercise  of
      inherent power need not be express, it may even be implied.   Inherent
      power cannot be used to restrain the execution  of  a  decree  at  the
      instance of one who was not a party to suit.  Such power is absolutely
      essential for securing the  ends  of  justice,  and  to  overcome  the
      failure of justice. The Court under Section  151  CPC  may  adopt  any
      procedure to do justice, unless the same is expressly prohibited.
           The consolidation of suits has not been provided for  under  any
      of the provisions of the Code, unless there is a  State  amendment  in
      this regard. Thus, the same can be done  in  exercise  of  the  powers
      under Section 151 CPC, where a common question of fact and  law  arise
      therein, and the same must  also  not  be  a  case  of  misjoinder  of
      parties.  The non-consolidation of two or more suits is likely to lead
      to a multiplicity of suits being filed,  leaving  the  door  open  for
      conflicting decisions on the same issue, which may be  common  to  the
      two  or  more  suits  that  are  sought  to  be  consolidated.    Non-
      consolidation may, therefore, prejudice a party,  or   result  in  the
      failure of  justice.  Inherent  powers  may  be  exercised  ex  debito
      justitiae in those cases, where there is no express provision in  CPC.
      The said powers  cannot  be  exercised  in  contravention  of,  or  in
      conflict with, or upon ignoring express and specific provisions of the
      law.  (See: B.V. Patankar & Ors. v. C.G. Sastry, AIR 1961 SC 272;  Ram
      Chandra Singh v. Savitri Devi & Ors., AIR 2004 SC  4096;  Jet  Plywood
      Pvt. Ltd. v. Madhukar Nowlakha, AIR 2006 SC 1260; State Bank of  India
      v. Ranjan Chemicals Ltd. & Anr., (2007) 1 SCC 97;  State of Haryana  &
      Ors. v. Babu Singh, (2008) 2 SCC 85; Durgesh Sharma v.  Jayshree,  AIR
      2009 SC 285; Nahar Industrial Enterprises Ltd. v. H.S.B.C. etc.  etc.,
      (2009) 8 SCC 646; and Rajendra Prasad Gupta v. Prakash Chandra  Mishra
      & Ors., AIR 2011 SC 1137).


      9.     In  exceptional  circumstances,  the  Court  may  exercise  its
      inherent powers, apart from Order IX CPC to  set  aside  an  ex  parte
      decree.
            An  ex-parte decree passed due to the  non  appearance  of  the
      counsel of a party, owing to the fact that the party was not at fault,
      can be set aside in an appeal preferred against it.  So is  the  case,
      where the absence of a defendant is caused on account of a mistake  of
      the Court.  An application under Section 151 CPC will be maintainable,
      in the event that an ex parte order has been obtained  by  fraud  upon
      the court or by collusion. The provisions of Order IX CPC may  not  be
      attracted, and in such a case the Court may either restore  the  case,
      or set aside the ex parte  order  in  the  exercise  of  its  inherent
      powers.
           There may be an order of dismissal of  a  suit  for  default  of
      appearance of the plaintiff, who was in fact dead at the time that the
      order was passed. Thus, where  a  Court  employs  a  procedure  to  do
      something that it never intended to do, and there  is  miscarriage  of
      justice, or an abuse of the process of Court, the  injustice  so  done
      must be remedied, in accordance with  the  principle  of  actus  curia
      neminem gravabit  - an act of the Court shall prejudice no person.


      10.   In Manohar Lal Chopra v. Rai Bahadur Rao Raja Seth Hiralal,  AIR
      1962 SC 527, this Court examined the issue with  respect  to  whether,
      the court is competent to grant interim relief under Section 151  CPC,
      when the same cannot be granted under Order XXXIX Rules 1 & 2 CPC, and
      held :
           “There is difference of opinion between the High Courts on  this
           point. One view is  that  a  Court  cannot  issue  an  order  of
           temporary injunction if the circumstances do not fall within the
           provisions of Order 39 of the Code…… the other view  is  that  a
           Court can issue an interim injunction under circumstances  which
           are not covered by Order 39 of the Code,  if  the  Court  is  of
           opinion that the interests of justice require the issue of  such
           interim injunction;……We are of opinion that the latter  view  is
           correct and that the Court have inherent jurisdiction  to  issue
           temporary injunction in circumstances which are not  covered  by
           the provisions of Order 39, C.P.C., there is  no  expression  in
           Section 94 which expressly  prohibits  the  issue  of  temporary
           injunction in circumstances not covered by Order 39  or  by  any
           rule made under the Code. It is well-settled that the provisions
           of the Code are not exhaustive, for the simple reason  that  the
           Legislature is  incapable  of  contemplating  all  the  possible
           circumstances  which  may  arise  in   future   litigation   and
           consequently for providing the procedure for them. The effect of
           the expression ‘ if it is so prescribed’ is only this that  when
           the rule prescribes the circumstances  in  which  the  temporary
           injunction can be issued, ordinarily the Court is not to use its
           inherent powers to make the necessary orders in the interests of
           justice, but is merely to see whether the circumstances  of  the
           case bring it within the prescribed rule. If the  provisions  of
           Section 94 were not there in the Code,  the  Court  could  still
           issue temporary injunction, but it could do that in the exercise
           of its inherent jurisdiction. No party has a right  to  inherent
           jurisdiction only when it considers it absolutely necessary  for
           the ends of justice to do so. It is  in  the  incidence  of  the
           exercise of the power of the Court to issue temporary injunction
           that the provisions of Section 94 of the Code have their  effect
           and not in taking away the right of the Court  to  exercise  the
           inherent power.”
                                        (Emphasis added)
      11.   In Indian Bank v. M/s. Satyam Fibres (India) Pvt. Ltd., AIR 1996
      SC 2592, this Court dealt with a similar case and observed, that fraud
      not only affects the solemnity,  regularity  and  orderliness  of  the
      proceedings of the court, but that it also amounts  to  abuse  of  the
      process of court.  The Court further  held,  that  “the  judiciary  in
      India also possesses inherent powers, specially under Section 151 CPC,
      to recall its judgment or order if the same has been obtained by fraud
      upon the court.  In the case of fraud upon a  party  to  the  suit  or
      proceedings, the court  may  direct  the  affected  party  to  file  a
      separate suit for setting aside the decree obtained by fraud.”


      12.   Similarly, in Dadu Dayal  Mahasabha  v.  Sukhdev  Arya  &  Anr.,
      (1990) 1 SCC 189, this Court examined a issue as to whether the  trial
      court  has  the  jurisdiction  to  cancel  an  order  permitting   the
      withdrawal of the suit under its inherent powers, if it is  ultimately
      satisfied that the suit has been withdrawn by  a  person  who  is  not
      entitled to withdraw the same. The court held that  “the  position  is
      well established that a court has the inherent power  to  correct  its
      own proceedings when it is satisfied  that  in  passing  a  particular
      order it was misled by one of the parties”. However, the Court pointed
      out that there is a distinction between cases  where  fraud  has  been
      practised upon the court and where fraud has  been  practised  upon  a
      party, while observing as under:
           “If a party makes an application before the  court  for  setting
           aside the decree on the ground that he did not give his consent,
           the court has the power and duty to investigate the  matter  and
           to set aside the decree if it is satisfied that the consent as a
           fact was lacking and the court was induced to pass the decree on
           a fraudulent representation  made  to  it  that  the  party  had
           actually consented to it. However, if  the  case  of  the  party
           challenging the decree is that he was in fact  a  party  to  the
           compromise petition filed in the case but his consent  has  been
           procured by fraud, the court cannot investigate  the  matter  in
           the exercise of its inherent power, and the only remedy  to  the
           party is to institute  a  suit”.                       (Emphasis
           added)




      13.   In view of the above, the law on this issue  stands  crystalised
      to the effect that the inherent powers enshrined under Section 151 CPC
      can be exercised only where no remedy has been  provided  for  in  any
      other provision of the CPC.  In the event that a party has obtained  a
      decree or order by playing a fraud upon the court, or where  an  order
      has been passed by a mistake of the court, the court may be  justified
      in rectifying such mistake, either by recalling the said order, or  by
      passing any other appropriate order. However, inherent  powers  cannot
      be used in conflict of any other existing  provision,  or  in  case  a
      remedy has been provided for by  any  other  provision  of   the  CPC.
      Moreoveer, in the event that a fraud has been played upon a party, the
      same may not be a case where inherent powers can be exercised.


      14.   Be that as it may, the Tribunal decided the case of compensation
      filed by the appellants on 22.5.2000, and the application filed by the
      respondents under Order IX Rule 13 CPC was dismissed vide order  dated
      20.2.2002. The respondents challenged the said order dated  20.2.2002,
      by filing Writ Petition No. 764 of 2002 in the  High  Court,  and  the
      same stood dismissed in default. The  same  was  restored,  heard  and
      disposed of vide order dated 12.12.2005, by way of which the said Writ
      Petition was dismissed, in view of the alternative remedy  of  appeal.
      Such an order was passed in view of the fact that the order passed  by
      the Tribunal was appealable  under  Section  381  of  the  U.P.  Nagar
      MahaPalika Adhiniyam, 1959, to the High Court. The  respondents  filed
      an appeal to recall the said order, the court  heard  such  appeal  on
      merits. However, the said application  for  recall  was  dismissed  in
      default vide order dated 12.1.2009. A second  application  for  recall
      was then filed, which was also dismissed in default vide  order  dated
      15.3.2010. A third application was finally filed, and has been allowed
      vide impugned order.
      15.   In fact, while passing its  final  order,  the  High  Court  was
      convinced that the appellants had committed a fraud upon the court  by
      not disclosing before the Tribunal, that at a prior stage, the  matter
      had been adjudicated upon, with respect  to  the  entitlement  of  the
      respondents, and also in respect of some other properties therein, the
      High Court had made certain observations against the respondents,  and
      that the matter had ultimately come before this Court in Civil  Appeal
      No. 3871 of 1990, wherein this Court had passed the following order:
           “Having considered the entire matter, we are of  the  view  that
           special leave petition is fit to be dismissed.   However,  there
           may  be  some   mis-apprehension   with   respect   to   certain
           observations made in the impugned  judgment  as  having  finally
           decided the adjudicated  issues  between  the  parties  and  we,
           therefore make it clear that those  observations  shall  not  be
           treated to have finally adjudicated upon  any  of  the  disputed
           points. The appeal is disposed of accordingly.”




      16.   In  the  instant  case,  we  have  to  bear  in  mind  that  the
      proceedings stood concluded so far as the court of first  instance  is
      concerned, and that the respondent was not the party before  the  said
      court. Permitting an application under Order IX Rule 13 CPC by a  non-
      party, would amount to adding a party to the case, which  is  provided
      for under Order I Rule 10 CPC, or setting aside the ex-parte  judgment
      and decree, i.e. seeking a declaration that the  decree  is  null  and
      void for any reason, which can  be  sought  independently  by  such  a
      party. In the instant case, as the fraud, if any, as alleged, has been
      committed upon a party, and not upon the court, the same is not a case
      where Section 151 CPC could be resorted to by the court, to rectify  a
      mistake, if any was made.


      17.   The matter basically relates to the apportionment of the  amount
      of compensation received for the land acquired.  This  Court,  in  May
      George v. Special Tahsildar & Ors., (2010) 13 SCC 98, has held, that a
      notice under Section 9 of the Act, 1894, is not mandatory, and that it
      would not by any means vitiate the land acquisition  proceedings,  for
      the  reason  that  ultimately,  the  person   interested   can   claim
      compensation for the acquired land.   In  the  event  that  any  other
      person  has  withdrawn  the  amount  of  compensation,   the   “person
      interested”, if so aggrieved, has a right  either  to  resort  to  the
      proceedings under the provision of Act 1894, or he may file a suit for
      the recovery of his share.  While deciding the said case, reliance has
      been placed upon a large number of judgments of this Court,  including
      Dr. G.H. Grant v. State of Bihar, AIR 1966 SC 237.
      18.   The said case is required to be  examined  from  another  angle.
      Undoubtedly, the respondents did not make any application either under
      Section 18 or Section 30 of the Act,  1894  to  the  Land  Acquisition
      Collector. The jurisdiction of the Reference Court, vis-à-vis “persons
      interested” has been explained by this Court in Shyamali Das  v.  Illa
      Chowdhry & Ors., AIR 2007 SC 215, holding  that  the  Reference  Court
      does not have the jurisdiction to entertain  any  application  of  pro
      interesse suo,  or in the nature thereof. The Court held as under:
           “The Act is a complete code by itself. It provides for  remedies
           not only to those whose lands have been  acquired  but  also  to
           those who claim the awarded amount or any apportionment thereof.
           A Land Acquisition Judge derives its jurisdiction from the order
           of reference. It  is  bound  thereby.  His  jurisdiction  is  to
           determine adequacy and otherwise of  the amount of  compensation
           paid under the award made by the Collector”. Thus holding  that,
           “It is  not within his domain to entertain  any  application  of
           pro interesse suo or in the nature thereof.”


           The plea of  the  appellant  therein,  stating  that  the  title
      dispute be directed to be decided by the Reference Court itself, since
      the appellant was not a person interested in the award,  was  rejected
      by this Court, observing that the Reference Court does  not  have  the
      power to enter into an application under Order I Rule 10 CPC.


      19.   In Ajjam Linganna &  Ors.  v.  Land  Acquisition  Officer,  RDO,
      Nizamabad & Ors., (2002) 9 SCC 426, this court  made  observations  to
      the effect that it is not open to the parties to apply directly to the
      Reference Court for impleadment, and to seek enhancement under Section
      18 for compensation.
            In Prayag Upnivesh Awas  Evam  Nirman  Sahkari  Samiti  Ltd.  v.
      Allahabad Vikas Pradhikaran & Anr., (2003) 5 SCC 561, this Court  held
      as under:
           “It  is  well  established  that  the   Reference   Court   gets
           jurisdiction only if the matter is referred to it under  Section
           18 or Section 30 of the Act by the Land Acquisition Officer  and
           if the Civil Court has got the jurisdiction and  authority  only
           to decide the objections referred to  it.  The  Reference  Court
           cannot widen the scope of its  jurisdiction  or  decide  matters
           which are not referred to it.”


           While   deciding   the   said    case,    the    Court    placed
















                                                         reliance   on   the
      judgments in Parmatha Nath Malik Bahadur v. Secretary  of  State,  AIR
      1930 PC 64; and Mohammed Hasnuddin v. The State  of  Maharashtra,  AIR
      1979 SC 404.
      (See also: Kothamasu Kanakarathamma & Ors. v. State of Andhra  Pradesh
      & Ors., AIR 1965 SC304)
            It is evident from the above, that a person who has not made  an
      application before  the  Land  Acquisition  Collector,  for  making  a
      reference under Section 18 or 30 of the Act, 1894, cannot get  himself
      impleaded directly before the Reference Court.


      20.   In view of the above, the legal issues involved herein,  can  be
      summarised as under:-
      (i)   An application under Order IX Rule 13 CPC cannot be filed  by  a
      person who was not initially a party to the proceedings;
      (ii)  Inherent powers under Section 151 CPC can be  exercised  by  the
      Court to redress only  such  a  grievance,  for  which  no  remedy  is
      provided for under the CPC;
      (iii) In the event that an order has been obtained from the  Court  by
      playing  fraud upon it, it is always open to the Court to  recall  the
      said order on the application of the person aggrieved, and such  power
      can also be exercised by the appellate court;
      (iv)  Where the fraud has been  committed  upon  a  party,  the  court
      cannot investigate such a factual issue, and in such an eventuality, a
      party has the right to get the said judgment or order  set  aside,  by
      filing an independent suit.
      (v)   A person aggrieved may maintain an application before  the  Land
      Acquisition Collector for reference under Section 18 or 30 of the Act,
      1894, but cannot make an application for impleadment or  apportionment
      before the Reference  Court.


      21.   The instant case has been examined in  light  of  the  aforesaid
      legal propositions.   We  are  of  the  considered  opinion  that  the
      impugned judgment and order of the High Court cannot be  sustained  in
      the eyes of law, and is hence liable to be set aside.
            In view of the above, the appeals succeed and are allowed.   The
      judgment and order impugned herein are set aside.  The respondents are
      at liberty to seek appropriate remedy,  by  resorting  to  appropriate
      proceedings, as permissible in law.


                          ….……………………………...................................J.
                            (Dr. B.S. CHAUHAN)




                         …..……………………………...................................J.
                                          (FAKKIR MOHAMED IBRAHIM KALIFULLA)


      NEW DELHI;
      April 11, 2013.
-----------------------
33



Print Page

No comments:

Post a Comment