Sunday, 14 November 2021

Whether Appellate court can stay operation of Judgment while granting stay as per O 41 R 5 of CPC?

Going by the plain meaning of Order XLI Rule 5,

it provides for only stay of the proceedings

under a decree or stay of execution of the

decree. The provision does not empower the

appellate court to stay the operation of the

judgment. Stay of operation of the judgment is

not the same as staying the operation of the

proceedings under a decree or staying the

execution of a decree. An order staying the

operation of the judgment will amount to staying

the findings in the judgment, which cannot be

done at the stage of admission.

6. In the impugned order, the appellate

court has indicated the reasons for granting the

order of stay. Therefore, I do not find any

force in the submission that the order is bad for

application of mind and lack of reasons. At the

same time, even on being convinced of the reasons

for granting stay, the appellate court could have

stayed only the proceedings under the decree or

execution of the decree and not, the operation of

the judgment.

IN THE HIGH COURT OF KERALA AT ERNAKULAM

PRESENT

 MR.JUSTICE V.G.ARUN

OP(C) NO. 963 OF 2021

RAVEENDRAN Vs  LALITHA

Dated this the 1st day of November, 2021

The petitioner was the plaintiff in

O.S.No.37 of 2014 on the files of the Principal

Munsiff's Court, Kollam. The prayer in the suit

was for a permanent prohibitory injunction

restraining the respondents/defendants from

trespassing into plaint B schedule pathway and

from taking vehicles through the pathway or

parking vehicles therein. The suit was decreed

with cost. Aggrieved, the second respondent filed

appeal (AS No.86 of 2020) before the Additional

District Court-IV, Kollam. While admitting the

appeal, the appellate court passed Ext.P3 order,

staying the operation of the decree and judgment

till the disposal of the appeal.

2. When this original petition came up for


admission, it was pointed out that the petitioner

had filed I.A.No.3 of 2021 before the appellate

court seeking review of Ext.P3 order. Therefore,

by order dated 25.08.2021, the appellate court

was directed to pass orders on that interlocutory

application. By Ext.P4 order, the appellate court

dismissed I.A.No.3 of 2021, finding that on the

facts of the case, an order staying the operation

of the judgment and decree is highly essential.

3. Adv.H.Vishnudas, learned Counsel for the

petitioner assailed Ext.P3 order by contending

that Order XLI Rule 5 of the Code of Civil

Procedure, empowers the appellate court to only

stay the proceedings and execution of a decree

and the court is not clothed with the power to

stay the operation of the judgment and decree. It

is contended that as per Order XLI Rule 5, mere

filing of an appeal shall not operate as a stay

of proceedings under a decree, except so far as

the appellate court may order and further that,

execution of a decree shall not be stayed by

reason of an appeal having been preferred. Even

stay of execution of a decree can only be for

sufficient cause. According to the learned

Counsel, the caption “stay of proceedings and of

execution” to Order XLI Rule 5 clearly indicates

the intention of the legislature. Going by the

provision, the appellate court can do nothing

other than staying the proceedings under the

decree or staying execution of the decree.

Moreover, stay of operation of a judgment will

have the effect of relegating the parties to the

pre-suit stage. To support the contentions,

reliance is placed on the following decisions;

Sulochana Peter v. Chellamma Swarnamma [2011

(1) KLT 93], Harish Premshankar Bhatt and another


v Kailasbhai K. Sabaria [2015 KHC 2887].

4. It is contended that the impugned Ext.P3

order was passed without considering these

crucial aspects and the precedents. Even though,

the fundamental flaw was brought to the notice of

the appellate court by filing I.A.No.3 of 2021,

the learned Judge refused to review the order.

5. Order XLI Rule 5 of CPC reads as under;

“5. Stay by Appellate Court.—(1) An

appeal shall not operate as a stay of

proceedings under a decree or order appealed

from except so far as the Appellate Court

may order, nor shall execution of a decree

be stayed by reason only of an appeal having

been preferred from the decree; but the

Appellate Court may for sufficient cause

order stay of execution of such decree.

3[Explanation.—An order by the Appellate

Court for the stay of execution of the

decree shall be effective from the date of

the communication of such order to the Court

of first instance, but an affidavit sworn by

the appellant, based on his personal

knowledge, stating that an order for the

stay of execution of the decree has been

made by the Appellate Court shall, pending

the receipt from the Appellate Court of the

order for the stay of execution or any order

to the contrary, be acted upon by the Court

of first instance.]

(2) Stay by Court which passed the decree.—

Where an application is made for stay of


execution of an appealable decree before the

expiration of the time allowed for appealing

therefrom, the Court which passed the decree

may on sufficient cause being shown order

the execution to be stayed.

(3) No order for stay of execution shall be

made under sub-rule (1) or sub-rule (2)

unless the Court making it is satisfied—

(a) that substantial loss may result to the

party applying for stay of execution unless

the order is made;

(b) that the application has been made

without unreasonable delay; and

(c) that security has been given by the

applicant for the due performance of such

decree or order as may ultimately be binding

upon him.

(4) [Subject to the provision of sub-rule

(3)], the Court may make an ex parte order

for stay of execution pending the hearing of

the application.

[(5) Notwithstanding anything contained in

the foregoing sub-rules, where the appellant

fails to make the deposit or furnish the

security specified in sub-rule (3) of rule

1, the Court shall not make an order staying

the execution of the decree.”

Going by the plain meaning of Order XLI Rule 5,

it provides for only stay of the proceedings

under a decree or stay of execution of the

decree. The provision does not empower the

appellate court to stay the operation of the

judgment. Stay of operation of the judgment is


not the same as staying the operation of the

proceedings under a decree or staying the

execution of a decree. An order staying the

operation of the judgment will amount to staying

the findings in the judgment, which cannot be

done at the stage of admission.

6. In the impugned order, the appellate

court has indicated the reasons for granting the

order of stay. Therefore, I do not find any

force in the submission that the order is bad for

application of mind and lack of reasons. At the

same time, even on being convinced of the reasons

for granting stay, the appellate court could have

stayed only the proceedings under the decree or

execution of the decree and not, the operation of

the judgment.

7. Pursuant to the order of this Court, the

appellate court considered and dismissed the


review application (I.A.No.3 of 2021), relying on

Order 41 Rule 33 of CPC. It is pertinent to note

that the appellate court is not expected to

exercise the power under Order 41 Rule 33 CPC,

while admitting an appeal. Such power can be

exercised while considering the appeal on merits.

The position needs no further clarification in

the light of the dictum laid down in Sulochana

Peter, the relevant portion of which is extracted

hereunder;

“The power enjoined under such Rule

cannot be invoked by the Appellate Court

to admit an appeal, which is found not

entertainable. Needless to point out,

invoking the powers under R.33 of O. XLI

of the Code for exercise of the

extraordinary powers vested with the

Appellate Court would come into play, if

so satisfied by the facts presented, only

at the stage of consideration of the

appeal on merits, at the time or hearing,

but not before, at any rate, not at the

stage of considering or determining the

entertainability and admissibility of an

appeal.”


In the result, the original petition is

allowed, Exts.P3 and P7 orders are set aside and

the appellate court is directed to consider the

application for stay (I.A.No.1 of 2020) afresh

and to pass orders thereon, after affording an

opportunity of hearing to the parties.

Sd/-

V.G.ARUN

JUDGE


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