SHAH PRABHUDAS ISHWARDAS v. SHAH BHOGILAL NATHALAL CO-PARCENERS OF A JOINT HINDU FAMILY
1967-04-11
A.R.BAKSHI, P.N.BHAGWATI
body1967
DigiLaw.ai
A. R. BAKSHI, P. N. BHAGWATI, J. ( 1 ) THIS revision application arises out of a suit filed by the plaintiffs against the defendants to recover a sum of Rs. 3 600 being the amount of three instalments due and payable by the defendants to the plaintiffs under a document Exhibit 4/1 executed by defendants Nos. 1 and 2 in favour of the plaintiffs. The plaintiffs also relied on another document Exhibit 4/2 in support of this claim though the claim was rested primarily on the document Exhibit 4/1. The defendants amongst various defences raised by them in the written statement urged that the documents Exhibits 4/1 and 4/2 were promissory notes and since they were inadequately stamped they were not admissible in evidence. One of the issues framed by the trial Court namely issue No. 3 therefore raised the question whether the documents Exhibits 4/1 land 4/2 were promissory notes and hence inadmissible in evidence. At the trial of the suit when the plaintiffs partner Chimanlal Jagjivandas was in the witness-box and was being examined in chief the documents Exhibits 4/1 and 4/2 were sought to be tendered in evidence and an objection was therefore raised on behalf of the defendants against their admissibility. The trial Court heard the arguments on the question whether the documents Exhibits 4/1 and 4/2 were promissory notes and by an order dated 20th February 1962 held that the said documents were promissory notes and being inadequately stamped they were inadmissible in evidence. Issue No. 3 was accordingly answered against the plaintiffs. The plaintiffs thereupon preferred the present revision application challenging the decision of the trial Court. ( 2 ) WHEN the revision application first reached hearing before me as a single Judge a preliminary objection was raised on behalf of the defendants and the preliminary objection was that the revision was incompetent as the case did not fall within the four corners of sec. 115 of the Code of Civil Procedure. The determination of the preliminary objection obviously depended on the true scope and ambit of sec. 115 and I felt that the question of construction of sec. 115 raised by the preliminary objection was a question of some importance which may be decided by a Division Bench of this Court and I therefore referred the revision application to a Division Bench.
115 and I felt that the question of construction of sec. 115 raised by the preliminary objection was a question of some importance which may be decided by a Division Bench of this Court and I therefore referred the revision application to a Division Bench. That is bow the revision application has now come up for hearing before us. The revision application is directed against the decision of the trial Court in regard to both the documents Exhibits 4/1 and 4/2 but there is no distinction in principle between the case relating to the document Exhibit 4/1 and that relating to the document Exhibit 4/2 and therefore whatever we say in regard to the decision of the trial Court relating to the document Exhibit 4/1 will apply equally to the decision relating to the document Exhibit 4/2. ( 3 ) THE first question that arises for consideration is and that is the question which necessitated the reference of the present revision application to a Division Bench whether a revision application lies against the decision of the subordinate Court holding that the document Exhibit 4/1 on which the suit is brought by the plaintiffs is a promissory note and not being adequately stamped it is not admissible in evidence. The determination of the question depends on the interpretation of the provision of sec. 115 which is the section which confers revisional jurisdiction on the High Court. Sec. 115 says :-115 The High Court may call for the record of any case which has been decided by any Court subordinate to such High Court and in which no appeal lies hereto and if such subordinate court appears- (a) to have exercised a jurisdiction not vested in it by law or (b) to have failed to exercise a jurisdiction so vested or (c) to have acted in the exercise of its jurisdiction illegally or with material irregularity the High court may make such order in the case as it thinks fit. A plain reading of the section shows that two conditions are necessary to be fulfilled in order to attract the revisional jurisdiction of the High Court.
A plain reading of the section shows that two conditions are necessary to be fulfilled in order to attract the revisional jurisdiction of the High Court. The first condition is that there must be a case decided by a subordinate Court and no appeal must lie against such decision to the High Court and the second condition is that the subordinate Court must have exercised jurisdiction not vested in it by law or failed to exercise jurisdiction so vested or acted in the exercise of its jurisdiction illegally or with material irregularity. The High Court cannot interfere in revision with the decision of the subordinate Court unless both these conditions are fulfilled. It therefore becomes necessary to consider whether these two conditions are fulfilled in the present case. If either of these two conditions is not fulfilled the revision would be incompetent and the preliminary objection would prevail ( 4 ) TURNING to the first condition what it requires is that there must be a case decided by a subordinate Court. The power of the High Court in revision is exercisable only in respect of any case which has been decided. Now what is a case decided within the meaning of the section ? There was never any doubt that the expression case is not restricted to a litigation in the nature of a suit in a civil Court : Balkrishna Udayar v. Vasudeva Aiyar 44 I. A 261 : it includes a proceeding in a civil Court in which the jurisdiction of the Court is invoked for the determination of some claim or right legally enforceable. But there was a serious conflict of opinion amongst the different High Courts and there were differences even amongst the different Benches of the same High Court as to whether an order of a Court which does not finally dispose of the suit or proceeding amounts to a case decided. One view which was accepted by a majority of the High Courts was that the expression case includes an interlocutory proceeding relating to the rights and obligations of the parties and the expression record of any case includes so such of the proceeding as relates to the order disposing of the interlocutory proceeding.
One view which was accepted by a majority of the High Courts was that the expression case includes an interlocutory proceeding relating to the rights and obligations of the parties and the expression record of any case includes so such of the proceeding as relates to the order disposing of the interlocutory proceeding. The other view was that the expression case does not include an issue or a part of a suit or proceeding and therefore an order on an issue or a part of a suit or proceeding is not a case decided and the High Court has no power to revise such an order. This divergence of views led to several conflicting decisions resulting in confusion and it was therefore necessary that this conflict should be set at rest by the highest Court in the land. The occasion to do so arose in S. S. Khanna v. F. J. Dillon A. I. R. 1964 S. C. 497. In that case the Supreme Court was called upon to consider as to which of the two conflicting views represented the correct law and after examining the nature of the jurisdiction conferred by sec. 115 and the purpose for which the High Courts were invested with it the Supreme Court pronounced in favour of the former view which gave a wider and more liberal interpretation to the expression case. The order impugned in revision in that case was an order passed by the subordinate Court holding that Dillons suit against Khanna was not maintainable and the Supreme Court held that though that order was not a final order disposing of the suit it was yet a case decided within the meaning of sec. 115 and therefore revisable under that section. Shah J. speaking on behalf of Sarkar J. and himself said :-THE expression case is a word of comprehensive import : it includes Civil proceedings other than suits and is not restricted by anything contained in the section to the entirety of the proceeding in a civil court.
115 and therefore revisable under that section. Shah J. speaking on behalf of Sarkar J. and himself said :-THE expression case is a word of comprehensive import : it includes Civil proceedings other than suits and is not restricted by anything contained in the section to the entirety of the proceeding in a civil court. To interpret the expression case as an entire proceeding only and not a part of a proceeding would be to impose a restriction upon the exercise of the powers of superintendence which the jurisdiction to issue writs and the supervisory jurisdiction are not subject and may result in certain cases in denying relief to an aggrieved litigant where it is most needed and may result in the preparation of gross injustice. Hidayatullah J. also observed to the same effect in a concurring judgment -. . . . AND the word case does not mean a concluded suit or proceeding but each decision which terminates a part of the controversy involoving a matter of jurisdiction. These observations clearly show that a case decided within the meaning of sec. 115 is not confined to an entire suit or proceeding but includes an issue or a part of a suit or proceeding and if an order decides an issue or a part of a suit or proceeding it would be a case decided within the meaning of sec. 115. If an order decides some right or obligation which is in controversy between the parties in the suit or proceeding a part of the suit or proceeding whether it forms the subject matter of a separate issue or not would be decided and that would be a decision of a case as contemplated by sec. 115. Such an order may decide the right or obligation expressly in so many terms or it may decide the right or obligation as a matter of direct and necessary consequence as in the case before the Supreme Court. But in either case it would be a case decided as the right or obligation would be determined and a part of the suit or proceeding relating to the controversy as to such right or obligation would be decided. ( 5 ) APPLYING this test let us see whether the order impugned in the present case can be said to be a case decided within the meaning of sec.
( 5 ) APPLYING this test let us see whether the order impugned in the present case can be said to be a case decided within the meaning of sec. 115 Does the order decide an issue or a part of the suit by determining some right or obligation in controversy between the parties in the suit ? The answer must clearly be in the affirmative. The question whether the document Exhibit 4/1 was a promissory note and. therefore inadmissible in evidence by reason of insufficiency of stamp formed the subject matter of issue No. 3 and the decision of this question had a direct bearing on the right of the plaintiffs to recover the settled amount from the defendants. The document Exhibit 4/1 being the foundation of the plaintiffs claim the direct and inevitable consequence of the plaintiffs claim must fail and the order therefore determined by its direct and immediate impact the right of the plaintiffs to recover the amount claimed by them from the defendants which right was in controversy in the suit. The order thus decided issue No. 3 or in any event a major part of the suit and consequently it was a case decided within the meaning of sec. 115 and the first condition of applicability of the section was fulfilled. ( 6 ) MR. K. M. Parikh on behalf of the defendants however relied on a decision of Raju J. in Bachibai v. Shah Virji Devji (1963) IV G. L R. 1032 where it has been held by the learned Judge :similarly when the Court allows a document to be admitted evidence or the Court refuses to allow it that does not amount to deciding the case but it amounts to deciding a question regarding the admissibility of certain evidence. Therefore when the Court decides question under the Evidence Act it is not deciding a case and therefore its decision cannot be the subject matter of revision under sec. 115 C. P. Code. This statement of the law is certainly true as a general proposition but like all general propositions it is not universally true. It is necessary to make one qualification to this general proposition.
115 C. P. Code. This statement of the law is certainly true as a general proposition but like all general propositions it is not universally true. It is necessary to make one qualification to this general proposition. Where the question of admissibility arises in regard to a document which constitutes the foundation of some right or obligation is controversy between the parties in the suit or proceeding so that the decision of the question of admissibility would by its direct and immediate consequence of its own force determine such right and obligation it would not be correct to say that the decision of the question of admissibility is merely a decision of a question under the Evidence Act : since it decides a part of the suit or proceeding by determining the right or obligation in controversy between The parties it would amount to a decision of a case within the meaning of sec. 115. The statement of the law laid down by Raju J. would not be correct in its application to such a case. Ordinarily it is true that a decision of a question of admissibility of a document would be nothing more than a decision of a question under the Evidence Act and would not amount to a decision of a case but there may be cases where such a decision may decide an issue or a part of a suit or proceeding as in the present case and in such cases the decision would certainly be a case decided. ( 7 ) THAT takes us to a consideration of the second condition requisite for the applicability of sec. 115. What is the true scope and meaning of this condition has been the subject matter of judicial pronouncement in several decisions of the Supreme Court and the position may now be regarded as fairly settled. As observed by the Privy Council in Balkrishna Udayar v. Vasudeva Aiyar (supra) in a passage quoted with approval by the Supreme Court in Abbasbhai v. Gulamnabi A. I. R. 1964 S. C. 1341 :. . . . THE section (sec 115 of the Code of Civil Procedure) applies to jurisdiction alone the irregular exercise or non-exercise of it or the illegal assumption of it. The section is not directed against conclusions of law or fact in which the question of jurisdiction is not involved.
. . . THE section (sec 115 of the Code of Civil Procedure) applies to jurisdiction alone the irregular exercise or non-exercise of it or the illegal assumption of it. The section is not directed against conclusions of law or fact in which the question of jurisdiction is not involved. If a subordinate Court has jurisdiction to decide a question before it it may decide it rightly or wrongly whether the question be one of law or fact; that would not bring the case within the section. It is only where the error of law or fact has relation to the jurisdiction of the subordinate Court to try the dispute that the section would be attracted. To take an example of an error of law affecting the jurisdiction of the Court it is well-settled that a plea of limitation or a plea of res judicata is a plea of law which concerns the jurisdiction of the Court trying the proceeding. A finding on these pleas in favour of the party raising them would oust the jurisdiction of the Court and so an erroneous decision on these pleas can be said to be concerned with the question of jurisdiction of the Court. If the erroneous decision is in favour of the party raising the pleas the Court would be refusing to exercise jurisdiction vested in it and if on the other hand the erroneous decision is against the party raising the pleas the Court would be clutching at jurisdiction it does not possess. In either case the section would be attracted : clause (b) in the former case and clause (a) in the latter. On principle this proposition would appear to be unquestionable and no authority is necessary to support it but if any authority were needed it is to be found in the following observations of Sir John Beaumont in the Privy Council case of Joy Chand Lal v. Kamalaksha Chaudhury 76 I. A. 131 which were quoted with approval by the Supreme Court in Manindra Land and Building Corporation v. Bhutnath A. I. R. 1964 S. C. 1336 :. . . . . IF the erroneous decision results in the subordinate Court exercising a jurisdiction not vested in it by law or failing to exercise a jurisdiction so vested a case for revision arises under sub-sec. (a) or sub-sec. (b) and sub-sec. (c) can be ignored. . . .
. . . . IF the erroneous decision results in the subordinate Court exercising a jurisdiction not vested in it by law or failing to exercise a jurisdiction so vested a case for revision arises under sub-sec. (a) or sub-sec. (b) and sub-sec. (c) can be ignored. . . . . The cases of Babu Ram v. Munna Lal I. L. R. 49 All. 454 and Hari Bhikaji v. Naro Vishvanath I L. R. 9 Bom 432 may be mentioned as cases in which a subordi nate Court by its own erroneous decision (erroneous that is in the view of the High Court) in the one case on a point of limitation and in the other on a ques tion of res judicata invested itself with a jurisdiction which in law it did not possess and the High Court held wrongly their Lordships think that it had no power to interfere in revision to prevent such a result. The position would be the same where there is an error of fact having relation to the jurisdiction of the Court. Such a case would arise where the jurisdiction of the Court depends on the existence or non-existence of a collateral fact and by an erroneous decision of that fact the Court assumes jurisdiction not vested in it or deprives itself of jurisdiction so vested. In such a case the High Court would be entitled to revise the erroneous decision under clause (a) or clause (b) of sec. 115. Examples of this kind of cases may be found in Joy Chand Lal v. Kamalaksha Chaudhury (supra) where the erroneous decision related to the question whether the loan was a commercial loan and Choube Jagadish Prasad v. Ganga Prasad A. I. R. 1959 S. C. 492 where the erroneous decision related to the question whether the date of construction of the building was before or after 30th June 1946. In both these cases the decisions impugned in revision were decisions of collateral facts on the determination of which depended the jurisdiction of the subordinate Court and the Privy Council in the one case and the Supreme Court in the other therefore held that the High Court had jurisdiction to interfere in revision.
In both these cases the decisions impugned in revision were decisions of collateral facts on the determination of which depended the jurisdiction of the subordinate Court and the Privy Council in the one case and the Supreme Court in the other therefore held that the High Court had jurisdiction to interfere in revision. In the latter case the Supreme Court pointed out the distinction between collateral jurisdictional facts on the determination of which depends the jurisdiction of the subordinate Court and facts in issue which are left exclusively to the determination of the subordinate Court. In one case the subordinate Court decides a question pertaining to jurisdiction and by a wrong decision it clutches at jurisdiction or refuses to exercise jurisdiction while in the other the subordinate Court decides a question within the jurisdiction. The former being a decision having relation to the jurisdiction. It must therefore be concluded that while exercising jurisdiction under sec. 115 it is not competent to the High Court to correct errors of fact or even errors of law however gross or egregiously wrong they may be unless they have relation to or are concerned with the jurisdiction of the Court to try the dispute. Vide pandurang v. Maruti A. I. R. 1966 S. C. 153. ( 8 ) BUT the question may then be asked : What about clause (c) of sec. 115 ? That clause empowers the High Court to interfere where the subordinate Court has acted illegally or with material irregularity in the exercise of jurisdiction. Can the High Court not interfere in revision under this clause where it finds that the subordinate Court has wrongly decided a question of law in the exercise of its jurisdiction ? If the question is asked in general terms the answer is plainly No. Sec. 115 is not directed towards correcting errors of law in the exercise of jurisdiction. As held by the Supreme Court in Pandurang v. Maruti (supra) it is only if the error of law has relation to the exercise of jurisdiction illegally or with material irregularity by the subordinate Court that the High Court can correct such error of law in revision. What then is the meaning of the expression has acted illegally or with material irregularity in the exercise of Jurisdiction? This question is also no longer open to doubt or debate.
What then is the meaning of the expression has acted illegally or with material irregularity in the exercise of Jurisdiction? This question is also no longer open to doubt or debate. In Keshardeo Chamaria v. Radhakisan Chamaria A. I. R. 1953 S. C. 23 the Supreme Court quoted with approval the observations of Bose J. in his order of reference in Narayan Soneji v. Sheshrao Vithoba A. I. R. 1948 Nagpur 258 and observed that;. . . THE words illegally and material irregularity do not cover either errors of fact or law. They do not refer to the decision arrived at but to the manner in which it is reached. The errors contemplated relate to material defects of procedure and not to errors of either law or fact after the formalities which the law prescribes have been complied with. It will be clear from these observations that a mere error of law in the exercise of jurisdiction is not enough. What is necessary is that the subordinate Court must have acted illegally that is in breach of some provision of law or with material irregularity that is by committing some error of procedure in the course of the trial which is material in that it may have affected the ultimate decision. Vide also Venkatagiri Ayyangar v Hindu Religious Endowments Board Madras 76 I. A. 67. This is the test which must be applied in order to determine whether the case falls within clause (c) of sec. 115. ( 9 ) HAVING examined the scope and ambit of sec. 115 we will now proceed to consider whether the present case can be brought within any of the three clauses of the section. The question whether the document Exhibit 4/1 was a promissory note and was therefore by reason of inadequacy of stamp inadmissible in evidence was clearly a question within the jurisdiction of the trial Court and the decision of this question one way or the other did not have any relation to the jurisdiction of the trial Court. It cannot be said that by erroneous decision of this question the trial Court clutched at jurisdiction it did not possess or refused to exercise jurisdiction vested in it by law.
It cannot be said that by erroneous decision of this question the trial Court clutched at jurisdiction it did not possess or refused to exercise jurisdiction vested in it by law. Nor can it be said that the trial Court in arriving at the decision acted in breach of any provision of law or committed any error of procedure in the course of the trial which could be regarded as material. Of course it must be conceded that if the decision of the trial Court was erroneous the error committed by the trial Court was undoubtedly an error of law for the decision turned on the question whether the document Exhibit 4/1 was a promissory note within the meaning of sec. 2 (22) of the Stamp Act which would be clearly a question of law but this error of law did not have relation to and was not concerned with the jurisdiction of the subordinate Court and therefore none of the three clauses of sec. 115 was attracted in the present case. The revision application was. therefore incompetent and the preliminary objection raised on behalf of the defendants must prevail. In this view of the matter it is not necessary to go into the merits of the controversy raised in the revision application. ( 10 ) THE revision application therefore fails and the rule is discharged with costs. Rule discharged. .