BHANU KUMAR JAIN v. ARCHANA KUMAR AND ANR

Citation: [2004] SUPP. 6 S.C.R. 1104

Court: Supreme Court of India

Bench: N. SANTOSH HEGDE, B.P. SINGH, S.B. SINHA

Case summary

BHANU KUMAR JAIN v. ARCHANA KUMAR AND ANR.pdf

Judgment text

BHANU KUMAR JAIN v. ARCHANA KUMAR AND ANR. DECEMBER 17, 2004 [N. SANTOSH HEGDE, B. P. SINGH AND S. B. SINHA, JJ. ] Code of Civil Procedure, 1908 : Section 96(2), Order IX rules 7 & 13, Order 22 rule 10 and order 1 rule 10 Section 96(2)-Appeal against Ex parte decree-Maintainability- Application under 09 r. 13 for setting aside ex parte decree dismissed till Supreme Court-Held, Appeal maintainable on merits-Contention raised in the application under 09 r. 13 can't be raised. Order 9 r. 7-Applications under-Stage of-Application under rule 7 when an order posting a suit for ex-parte hearing is passed only and not when the hearing is complete. Res judicata-Applicability-Applicable in different stages ofthe same proceeding-Debars a court from exercising its jurisdiction. Doctrines : Doctrine of issue estoppel-Applicability-lssue decide against a party-Estopped from raising the same in the latter proceeding.

Doctrine of 'cause of action' estoppel-Applicability of-Identical issues raised in two different proceeding-Latter proceeding to be dealth with similarly as done in the previous proceeding. Plaintiff filed suit for partition of suit premises. On the date fixed for evidence, nobody appeared for the defendants even after adjournments whereafter application was filed by the plaintiff that he had closed his evidence. Cost of Rs. 200 was imposed on the defendants with stipulation that it cost was not paid, the right ofcross-examination will be closed. On the next date defendant No. 1 was again absent, the case was posted ex parte against her and, cost having not been paid, the right B. K. JAIN v. ARCHANA KUMAR 1105 to cross examine was forfeited. On the date fixed for final argument, the defendant No.

1 did not appear and the case was posted for delivery of judgment, on which date an application under 09 r7 was filed by the defendants (Respondents herein) for setting aside the order by which the suit was posted for ex parte hearing. The said application wa-: rejected and a preliminary decree for partition in favour of the plaintiff was passed. Application under 09 rl3 for setting aside the ex parte decree was dismissed and the appeal under 043 rl thereagainst as well. The special leave petition filed against the appellate order came to be dismissed as withdrawn. Thereafter, the defendants filed regular First appeal in the High Court which was allowed. In the meanwhile the plaintiff transferred his right, title and interest in favour of the present appellant. Hence, this appeal. It was contended by the appellant that subject matter of the application under 09 R13 and the regular First appeal being the same,.

allowing two parallel to continue is against public policy and, in any event, the claim of the respondent was hit by the Doctrine of issue Estoppel. As regards the counter claim of the respondent No. 2 it was contended that it was directed only against his mother in law and thus it could not have been enforced against plaintiff. The respondents, on the other hand, contended that they were entitled to maintain an appeal against the ex parte decree and, in any event, were entitled to assail the judgment on merit of the matter. As regards the counter claim of respondent No. 2, it was contended that even if no written statement was filed the court may direct the parties to adduce evidence in which event the court may pass a decree only upon the satisfaction that the plaintiff has been able to prove his case. The restricted statutory right. upon a party to the suit under Section 96(2) will always be available to assail the judgment if the plain tiff fails to prove his case.

Contention on the issue that the appellant has no locus standi to maintain this appeal, as upon the death of the original plaintiff he has not been substituted in his place (in the proceeding pending. before the High Court) was also advanced. Allowing the appeal, the Court held HELD : 1. 1. Order 9 Rule 7 of the Code postulates an application for allowing a defendant to be heard in answer to the suit when an order posting a suit for ex-parte hearing was passed only in the event the suit had not been heard as in a case where hearing of the suit was complete and the court had adjourned a suit for pronouncing the judgment, an application under Order 9 Rule 7 would not be maintainable. [1115-D] Arjun Singh v. Mahindra Kumar and Others, AIR (1964) SC 993, relied upon. Vijay Kumar Madan and Others v. R. N. Gupta Technical Education Society and Others, (2002) 5 SCC 30 and Ramesh Chand Ardawatiya v. Anil Panjwani, [2003) 7 SCC 350, referred to. 1. 2.

In an application under Order 9 Rule 13 of the Code, however, apart from questionin_g the correctness or otherwise of an order posting the case for ex-parte hearing, it is open to the defendant to contend that he had sufficient and cogent reasons for not being able to attend the hearing of the suit on the relevant date. (1117-G-H] 2. 1. The contention raised before the High Court in the first Appeal, having not been raised in the earlier application under Order 9, Rule 13 of the Code and even in the Misc. Petition and the Revision Application filed in the High Court, such a question having not been raised the appellant is disentitled from raising the said contention yet against before the High Court in the First Appeal. (1115-H; 1116-A] 2. 2.

An appeal against an ex-parte decree in terms of Section 96(2) of the Code could be filed on the following grounds : (i) The materials on record brought on record in the ex-parte proceedings in the suit by the plaintiff would not entail a decree in his favour, and (ii) The suit could not have been posted for ex-parte hearing. [1117-F-G] 2. 3. When an ex-parte decree is passed, the defendant (apart from filing a review petition and a suit for setting aside the ex-parte decree on the ground of fraud) has two clear options, one, to file an appeal and another to file an application for setting aside the order in terms ofOrder B. K. JAIN v. ARCHANA KUMAR 1107 9, Rule 13 of the Code.

He can take recourse to both the proceedings simultaneously but in the event the appeal is dismissed as a result whereof the ex-parte decree passed by the Trial Court merges with the order passed by the appellate court, having regard to Explanation appended to Order 9, Rule 13 ofthe Code a petition under Order 9, Rule 13 would not be maintainable. However, when an application under Order 9, Rule 13 ofthe Code is dismissed, the defendant can only avail a remedy available thereagainst, viz, to prefer an appeal in terms ofOrder 43, Rule 1 of the Code. Once such an appeal is dismissed, the Appellant cannot raise the same contention in the First Appeal. [1118-A-B; 1120-F] 2. 4.

There may not be a statutory bar to,avail two remedies simultaneously and an appeal as also an application for setting aside the exparte decree can be filed, one after the other; on the ground of public policy the right of appeal conferred upon a suitor under a provision of statute cannot be taken away if the same is not in derogation or contrary to any other statutory provisions. A right to question the correctness of the decree in a First Appeal is a statutory right. Such a right shall not be curtailed nor any em~argo thereupon shall be fixed unless the statute expressly or by necessary_ implication say so. (1118-D-E; 1120-D-E] Badvel Chinna Asethu and Another v. Vettipalli Kesavayya and Another, AIR (1920) Madras 962; Munassar Bin Jan Nisar Yarjung (died) his L. Rs. Marian Begum and Others v. Fatima Begum and Others, AIR (1975) AP 366; Mis. Mangilai Rungta, Calcutta v. Manganese Ore (India) Limited, Nagpur, AIR (1987) Bombay 87 and Dr. MK. Gourikutty andEtc. v. MK.

Raghavan and Others, AIR (2001) Kerala 398, referred to. Deepal Girishbhai Soni v. United India Insurance Co. Ltd. ,· [2004) 5 SCC 385 and Chandravathi P. K. and Others v. C. K. Saji and Others, [2004] 3 sec 734, relied. 2. 3. Defendant would not be permitted to raise a contention as regards the correctness or otherwise of the order posting the suit for exparte hearing by the Trial Court and/or existence of a sufficient case for non-appearance of the defendant before it, it would be open to him to argue in the First Appeal filed by him against Section 96(2) of the Code on the merit of the suit so as to ena~le him to contend that the materials brought on record by the plaintiffs were not sufficient for passing a decree in his favour or the suit was otherwise not maintainable. Lack ofjurisdiction of the court can also be a possible plea in such an appeal. The 'Explanation' appended to Order 9 Rule 13 of the Code, however, has to be strictly construed.

[1120-H; 1121-A-B] Rani Choudhury v. Lt. Col. Sura} Jit Choudhury, (1982] 2 SCC 506, P. K. Kiran Kumar v. A. S. Khaadar & Others, [2002] 5 SCC 161 and Shyam Sundar Sarma v. Pannalal Jaiswal and Others, (2004) 9 SCALE 270, referred to. 3. 1. It is now well-settled that principles of res-judicata applies in different stages of the same proceedings. [1116-B] Satyadhyan Ghosal and Others v. Smt. Deorajin Debi and Another, AIR (1960) SC 941 and Prahlad Singh v. Col. Sukhdev Singh, [1987) 1 sec 727, relied upon. YB. Patil and Others v. YL. Patil, (1976] 4 SCC 66, Vijayabai and Others v. Shriram Tukaram and Others, (1999] 1 SCC 693 and Hope ; Plantations Ltd. v. Taluk Land Board, Peermade and Another, [1999) 5 sec 590, referred to. 3. 2. Res judicata debars a court from exercising its jurisdiction to determine the lis if it has attained finality between the parties. It creates a different kind of estoppel viz. Estoppel by Accord. [1118-FJ 4. 1.

Doctrine issue estoppel is invoked against the party. Ifsuch an issue is decided against him, he would be estopped from raising the same in the latter proceeding. (1118-F] / YB. Patil and Others. v. Y. L. Patil, (1976) 4 SCC 66; Vijayabai and Others v. Shriram Tukaram and Others, (1999) 1 SCC 693 and Hope Plantations Ltd. v. Taluk Land Board, Peermade and Another, [1999) 5 sec 590, referred to. 4. 2. "Cause of action estoppel" prevents a party to an action from asserting or denying, as against the other party, the existence of a particular cause of action, the non-existence or existence of which has been determined by a court of competent jurisdiction in previous litigation between the same parties. (1118-H; q19-A] Thoday v. Thoday, [1964) 1 All. ER 341; Barber v. Staffordshire Country Council, [1996] 2 All ER 748 and C (a minor) v. Hackney London Borough Council, [1996) 1 All ER 973, referred to. 5. 1.

In terms of Order 22, Rule 10 of the Code of the transferee from the plaintiff can be substituted in place of the plaintiff. Even if not substituted in terms of the aforementioned provision, an application under Order 1, Rule 10 of the Code his behalf was maintainable, as he become the legal representative of the original plaintiff. [1121-D-E) CIVIL APPELLATE JURISDICTION : Civil Appeal No. 8246 of 2004. From the Judgment and Order dated 19. 12. 2002 ofthe Madhya Pradesh :0 High Court in F. A. No. 109 of 1986. Anup G. Choudhari, Mrs. June Chaudhari, Shri Pal Jain and Badri Prasad Singh for the Appellant. Ranjit Kumar, S. N. Kumar and Ms. Shobha for the Respondents. The Judgment of the Court was delivered by S. B. SINHA, J. : Leave granted.

The remedies available to a defendant in the event of an ex-parte decree being passed against him in terms of Order 9 Rule 13 of the Code ofCivil Procedure (Code) and the extent and limitation thereof is in question before us in this appeal which arises out of a judgment and order dated 19. 12. 2002 passed by the High Court ofMadhya Pradesh at Jabalpur in First Appeal No. 109 of 1986. The fact ofthe matter relevant for the purpose ofthis appeal is as under: '• • One Shri N. N. Mukherjee was the owner of the premises in suit. He died leaving behind his wife Smt. Suchorita Mukherjee, (original defendant No. 1), son Shri P. P. Mukherjee, (original plaintiff) and daughter Smt. Archana Kumar, (original defendant No. 2). The family is said to be governed by Dayabhag School of Hindu Law. The original plaintiff filed . ; a suit for partition in the year 1976. The original defendants filed their written statements. Respondent No. 2 herein, Surender Nath Kumar who is husband of Smt.

Archana Kumar, Respondent No. 1 herein also filed a written statement and counterclaim by setting up a plea of mortgage by deposit ohitle deeds in respect of property in suit said to have been created by his mother in law (original defendant No. 1). Smt. Suchorita Mukherjee died on 15. 9. 1984 whereupon Respondent No. 1 herein was transposed as defendant No. 1; whereas Respondent No. 2 was transposed as defendant No. 2 therein. In the suit, the defendant No. 1 did not file any document. Respondent No. 2 also did not file any document in support of his purported counter claim. Having regard to the rival contentions raised in the pleadings of the parties, the following issues were framed: "l(a) Whether partition of property owned by late Shri NN Mukherjee had taken place during his life time? (b) If so, what property was available for partition? (c) What were the shares allotted to the Plaintiff and the defendant No. 1 in the said partition?

(d) Whether the Plaintiff had separated from his father during his life time and was in separate possession ofhis share in the property? . r 2. Whether the Plaintiff is entitled to Y:z share and separate possession of his share in the property described in para 3 of the plaint? 3. Whether the plaintiff is entitled to claim mesne profits for the income derived by the defendant No. 1 from the share in the property? If so, at what rate and to what sum? 4. Whether the claim in suit is barred by limitation? 5. Whether the decision in Civil Suit No. 63-A of 1972 decided on 22. 11. 75 by Ilnd Civil Judge, Class II, Jabalpur will operate as resjudicata in the present case? (a) Whether the suit is not maintainable as no reliefhas been sought against defendant No. 2? (b) Whether at the request of Defendant No. l, Defendant No. 3 spent Rs. 21000 till 31. 10. 74 on construction and alteration of the suit property and the interest as on 31. 10. 74 came to Rs. 10,000. 00?

(c) Whether in order to secure the above amount defendant No. l deposited the title deeds of the suit property with defendant No. 2 and created a mortgage by deposit of title deeds in favour of defendant No. 3 and the suit property stands mortgaged with the defendant No. 3 ? (d) Whether defendant No. 3 further spent Rs. 9500 in the year 1976, 1977 and 1980 and defendant No. 2 spent Rs. 10500. 00 ? (e) Whether defendant No. 3 is entitled to get declaration shown as in para 6(A)(B)(C) of the written statement of defendant No. 3? (f) Whether the mother ofdefendant No. 2 had made will in favour of defendant No. 2 and thus, after the death of mother defendant No. 2 became absolute owner and plaintiff has no right? (g) Whether the plaintiff had already separated in the year 1951 and thus he has no right over the suit property? 6. Relief & Costs? " An additional issue was framed on 13. 6. 1985 and the case was fixed for evidence on 3. 8. 1985. On 3. 8.

1985 nobody was present on behalf of the defendant but the plaintifrs advocate was present whereupon, the case was directed to be placed after some time. At 2. 35 p. m. a request was made for adjournment on the ground that the defendant could not come from Delhi whereafter an application was filed by the plaintiff that he had closed his evidence. It was further contended that the burden to prove the additional issue rested on the defendant and ifany evidence is to be adduced, he should adduce evidence first. lt appears that the plaintiff was also not crossexamined by Respondent No. 1 herein. As the plaintiff was attending to the court proceedings from Calcutta, a cost of Rs. 200/- was imposed on the ·defendants. It was further directed that if the costs were not paid, the right of cross-examination will be closed. The matter was again posted on 7. 10. 1985 on which day again the counsel for the defendant was not present. Even the costs awarded against them was not paid.

Having regard to the fact that the Respondent No. 1 herein was absent and did not cross-examine the plaintiff; the case was directed to be posted ex-parte against her and the right of cross-examination was forfeited. The case was fixed for final argument on 11. 10. 1985. Yet again on 11. 10. 1985 the plaintiff was present but the defendants were not. Allegedly, owing to strike of the advocates the case was adjourned for 14. 10. 1985. On 14. 10. 1985 the learned Judge . ~ fixed the case for 25. 10. 1985 for delivery of judgment. The judgment, however, was not pronounced on 25. 10. 1985. However, on the next date, viz. , 30. l 0. 1985, an application was filed by where in two different proceedings identical issues are raised, in which event, the latter proceedings between the same parties shall be dealt with similarly as "'as done in the previous proceedings. In such an event the bar is absolute in relation to all points decided save and except allegation of fraud and collusion. [See C.

(a minor) v. Hackney London Borough Council, [1996) 1 All ER 973. It is true that the Madras High Court in Badvel Chinna Asethu (supra) held that two alternative remedies in succession are not permissible stating: ' "Assuming that it is open to a defendant in the appeal against the exparte decree to object to the decree on the ground that he had not sufficient opportunity to adduce e_vidence in a case where he did not choose to avail himself of the special procedure, it does not by any means follow that, where he did actually avail himself of the special procedure and failed, still it would be open to him to have the same question reagitated by appealing against the decree. " Oldfield, J. in his concurring judgment stated: "... No case has been cited before us in which the question now under consideration, whether a party against whom a decree Has been passed ex parte can proceed in succession under 0. 9, R.

13, as well as by taking objection to the order placing him ex parte in his appeal against the substantive decree has been dealt with. On principle it would appear that he could only do so at the expense of the rules as to res judicata; and there can be i:io reason why the adjudication on his application under 0. 9, R. 13, if there were one should not be conclusive against him for the purpose of any subsequent appeal. In the present case it is suggested that the facts that his application under 0. 9, R. 13, was not carried further than the District Munsifs Court and that he acquiesced in the District Munsi:fa unfavourable order, would make a difference to his right to appeal against the decree on this ground. The answer to this is that the D:istrict Munsifs order not having bee~ appealed against, has become final.

It seems to me that it would be a matter for great regret if a party could pursue both of two alternative remedies in succession and·that the recognition of a right to do so would be a unique incident in our procedure. I am accordingly relieved to find that such a right has not been recognized by authority... " The aforementioned view was reiterated in the subsequent decisions of different High Courts in Marian Begum (supra) Mis. Mangilal Rungta, Calcutta (supra) and Dr. MK Gourikutty (supra). However, it appears that in none of the aforementioned cases, the question as regard the right of the defendant to'assail the judgment and decree on merit ofthe suit did not fall for consideration. A right to question the correctness of the decree in a First Appeal is a statutory right. Such a right shall not be curtailed nor any embargo thereupon shall be fixed unless the statute expressly or by necessary implication say so. [See Deepal Girishbhai Soni v. United India Insurance Co. Ltd.

, [2004] 5 SCC 385 and Chandravathi P. K. and Others v. C. K. Saji and Others, [2004] 3 SCC 734]. We have, however, no doubt in our mind that when an application under Order 9, Rule 13 of the Code is dismissed, the defendant can only avail a remedy available thereagainst, viz, to prefer an appeal in terms of Order 43, Rule I of the Code. Once such an appeal is dismissed, the Appellant cannot raise the same contention in the First Appeal. If it be held that such a contention can be raised both in the First Appeal as also in the proceedings arising from an application under Order 9, Rule 13, it may lead to conflict of decisions which is not contemplated in law. The dichotomy, in our opinion, can be resolved by holding that whereas the defendant would not be permitted to raise a contention as regards the correctness or otherwise of the order posting the suit for ex-parte hearing by the Trial Court and/ or existence of a sufficient <:ase for non-appearance 8. K. JAIN v.

ARCHANA KUMAR [SINHA, J. ] 1121 of the defendant before it, it would be open to him to argue in the First Appeal filed by him against Section 96(2) of the Code on the merit of the suit so as to enable him to contend that the materials brought on record by the plaintiffs were not sufficient for passing a decree in his favour or the suit was otherwise not maintainable. Lack of jurisdiction of the court can also be a possible plea in such an appeal. We, however, agree with f\1r. Choudhari that the 'Explanation' appended to Order 9 Rule, 13 of the Code shall receive a strict construction as was held by this court in Rani Choudhury (supra), P. Kiran Kumar (supra) and Shyam Sundar Sarma v. Pannalal Jaiswal and Others, [2004 (9) SCALE 270].

We, therefore, are of the opinion that although the judgment of the High Court cannot be sustained on the premise on which the same is ba$ed, the Respondents herein are entitled to raise their contentions as regards merit of the plaintiffs case in the said appeal confining their contentions to the materials which are on records of the case. We, however, do not agree with Mr. Ranjit Kumar that the Appellant herein has no locus standi to maintain this appeal. In terms of Order 22, Rule 10 of the Code he could have been substituted in place ofthe plain,tiff. Even if he was not substituted in terms of the aforementioned provision, an application under Order 1, Rule 10 of the Code on his behalf was maintainable as he became the legal representative of the original plaintiff. For the view we have taken, it is not necessary for us to examine the claim of the original plaintiff for partition of suit properties or claim ofthe Respondent No.

2 herein as regard creation ofa mortgage in relation thereto by the original defendant No. 1 and/ or efficacy thereof. We refrain ourselves from even considering the submission of Mr. Ch0udhari to the effect that even otherwise the Respondent No. 2 herein could not have raised a counter claim in the partition suit vis-a-vis the plaintiff and the effect, if any, as regards his non-filing ofan appeal relating to his counter claim. We may notice that Mr. Choudhari has further contended that in terms of Order 17, Rule 2 of the Code in the event, in the suit which was adjourned and if on the date of adjourned date the defendant did not appear, the court has no other option but to proceed ex-parte. Ti}e High Court, in our opinion; should be allowed to examine all aspects of the matter.

For the reasons aforementioned, we are of the opinion that although the judgment of the High Court is not sustainable as the reasons in support thereof cannot be accepted, the High Court for the reasons assigned hereinbefore must examine the Respondents' claim on merit of the matter. The Appeal is, therefore, allowed, the impugned judgment is set aside and the case remitted to the High Court for consideration of the case of the parties on merit of the matter. As the suit is pending since 1976, we would request the High Court to dispose of the appeal at an early date and preferably within a period of three months from the date of communication of this order. No costs. B. K. Appeal allowed. - ....