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Registration — Family settlement — Document reciting past events need not be registered — Registration Act, section 17(1) (b), 49.

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[ Ram Singh v. Smt. Kesar Kanwar & Ors., AIR 2011 Rajasthan 24]

The petitioner-plaintiff was not allowed to exhibit two documents in a suit, namely, family settlement and a map annexed thereto on the ground that the same were not registered and duly stamped. The petitioner contented that it was not required for a settlement to be registered with the Office of the Registrar as these documents were simply a recitation of past events.

The Court relying on the decision of Roshan Singh v. Zile Singh, AIR 1988 SC 881, held that while an instrument of partition which operates or is intended to operate as a declared volition constituting or severing ownership and causes a change of legal relation to the property divided amongst the parties to it, requires registration u/s. 17(1)(b) of the Act, a writing which merely recites that there has in time past been a partition, is not a declaration of will, but a mere statement of fact, and it does not require registration. The essence of the matter is whether the deed is a part of the partition transaction or contains merely in incidental recital of a previously completed transaction. The use of the past tense does not necessarily indicate that it is merely a recital of a past transaction. It is equally well settled that a mere list of properties allotted at a partition is not an instrument of partition and does not require registration. Section 17(1)(b) lays down that a document for which registration is compulsory should by its own force, operate or purport to operate to create or declare some right in immovable property. Therefore, a mere recital of what has already taken place cannot be held to declare any right and there would be no necessity of registering such a document.

Two propositions therefore flow : Firstly, a partition may be effected orally; but if it is subsequently reduced into a form of a document and that document purports by itself to effect a division and embodies all the terms of bargain, it will be necessary to register it. If it be not registered, section 49 of the Act will prevent its being admitted in evidence. Secondly, evidence of the factum of partition will not be admissible by reason of section 91 of the Evidence Act, 1872. Partition lists which are mere records of a previously completed partition between the parties, will be admitted in evidence even though they are unregistered to prove the fact of partition.

In view of the aforesaid, the Court allowed the writ petition.

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Muslim Law — Properties purchased by female exclusively belongs to her and can be divided only between her children — No concept of jointness of nucleus.

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[ Mukhtar Ahmad and Anr. v. Mahmudi Khatoon & Anr., AIR 2011 Jharkhand 28]

The appellant and respondents (1-6) are brothers and sisters and are governed by Hanife School of Muslim Law. The other respondents are sons and daughters of second wife and other relatives. The suit was filed by one of the sisters against the brother and other sisters to get partition with respect to certain properties.

The properties in dispute were recorded in the name of mother Bibi Jainab (first wife). The father of the appellants and defendants had executed one of the properties to his wife in lieu of dawar debt. The Trial Court held that the plaintiff was entitled to get partition. The appeal was filed contending that the Trial Court has wrongly decided the issue considering the principles of Hindu law, where a property is not the absolute property of a female, if the source, from which the property has been purchased, is proved to be of the joint family or by the husband, then it will not be considered to the property of the female. But in the Muslim law, all the properties in the name of muslim lady belong to her, irrespective of source of money, from which it was purchased. The plaintiff is the full-blood sister of the defendants, thus, the plaintiff and the defendants are the legal heirs and successors of their deceased father, Md. Yakub and deceased mother, Jainab Khatoon. The partition suit was filed for preparing of separate ‘takhta’ for the plaintiff after granting a decree of 1/12th share in the properties of her father, Md. Yakub and her mother, Jainab.

The defendant alleged that no property is joint as claimed by the plaintiff. They also claimed that after the death of their parents, the parties have amicably settled their properties and the defendant and the plaintiff was allotted specific share.

The Court referred to certain salient features of Muslim law of succession which distinguish it from modern Hindu law of inheritance, the Muslim law of succession is basically different from the parallel indigenous systems of India. The doctrine of janmswatvavada (right by birth), which constitutes the foundation of the Mitakshara law of succession, is wholly unknown to Muslim law. The law of inheritance in Islam is relatively close to the classical Dayabhaga law, though it differs also from that on several fundamental points. The modern Hindu law of succession as laid down in the Hindu Succession Act, 1956 is, however, much different from both the aforesaid classical systems; it has a remarkable proximity, in certain respects, to the Muslim law of inheritance.

Whatever property one inherits (whether from his ancestors or from others) is, at Muslim law, one’s absolute property — whether that person is a man or a woman. In Muslim law, so long as a person is alive, he or she is the absolute owner of his or her property; nobody else (including a son) has any right, whatsoever, in it. It is only when the owner dies and never before that the legal rights of the heirs accrue. There is, therefore, no question of a would-be heir dealing in any way with his future right to inherit.

The Indian legal concepts of ‘joint’ or ‘undivided’ family, ‘coparcenary’, karta, ‘survivorship’, and ‘partition’, etc., have no place in the law of Islam. A father and his son living together do not constitute a ‘joint family’; the father is the master of his property. The same is the position of brothers or others living together.

Unlike the classical Indian law, female sex is no bar to inherit property. No woman is excluded from inheritance only on the basis of sex. Women have, like men, right to inherit property independently, not merely to receive maintenance or hold property ‘in lieu of maintenance’. Moreover, every woman who inherits some property is, like a man, its absolute owner; there is no concept of either streedhan or a woman’s ‘limited estate’ reverting to others upon her death. The same scheme of succession applies whether the deceased was male or a female.

Since all properties in the name of a female belongs to her exclusively and there is no concept of jointness of nucleus or any concept that the property is purchased from joint nucleus of the head of the joint family, hence, all the properties which are exclusively purchased by sale deed by Bibi Jainab in her name can be divided only between her children. Thus, the plaintiff would be granted 1/10th share in the property belonging to Bibi Jainab. A property which was belonging to the father will be divided amongst all the 17 parties in the ratio of 1/17th each and a separate takhta would be carved out.

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Legal representative — Not legally wedded wife — Right to apply for compensation — Civil Procedure Code, section 2(11).

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[ Heeralal Giri v. Ramratan & Ors., AIR 2011 Chhattisgarh 22]

Seema Bai (since deceased), was dashed by the driver of Marshal Jeep by driving the said vehicle rashly and negligently, due to which she succumbed to the injuries sustained in the said accident.

The Tribunal on a close scrutiny of the evidence led, material placed and submissions made, held that deceased Seema Bai was not legally wedded wife of the appellant; the appellant not being legal representative of the deceased; nor was the appellant dependent upon her, is not entitled to file claim petition u/s. 166 of the Motor Vehicles Act, and dismissed the claim petition. The appeal was filed by the appellant claiming compensation for the death of deceased Seema Bai.

The Court observed that the fact that deceased Seema Bai was not legally married wife of the appellant is not in dispute. Admittedly, one Kaushalya Bai is the legally wedded wife residing with the appellant. It was also not in dispute that the appellant was not dependant upon the deceased.

As per section 5(i) of Hindu Marriage Act, 1955, a marriage may be solemnised between any two Hindus if neither party has a spouse living at the time of marriage.

U/s. 166 of the MV Act, an application for compensation arising out of an accident of the nature specified in Ss.(i) of section 165 may be made where death has resulted from the accident, by all or any of the legal representative of the deceased.

According to section 2(11) of the Code of Civil Procedure, ‘legal representative’ means a person who in law represents the estate of a deceased person, and includes any person who intermeddles with the estate of the deceased and where a party sues or is sued in a representative character the person on whom the estate devolves on the death of the party so suing or sued. Almost in similar terms is the definition of legal representative under the Arbitration and Conciliation Act, 1996, i.e., u/s. 2(1)(g). The term legal representative has not been defined in the Motor Vehicles Act.

The word ‘legal representative’ occurring in section 166 of the MV Act, has the same meaning as defined u/s. 2(11) of the Code of Civil Procedure. Now if the same definition of legal representative is applied to the facts and circumstances of the present case, it was crystal clear that the appellant, admittedly was not dependent upon the deceased, is neither a person who in law represents the estate of deceased Seema Bai, nor is a successor in interest of the deceased. Therefore, if the definition of legal representative as provided u/s. 2(11) of the Code of Civil Procedure is taken in its widest amplitude even then the appellant cannot be termed as a legal representative of the deceased entitled to file claim petition before the Tribunal under the MV Act and thus, the order of the Tribunal was upheld.

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Evidence — Tape-recorded conversation — Admissible in evidence.

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[Havovi Kersi Sethna v. Kersi Gustad Sethna, 2011 Vol. 113(1) Bom. L.R. 0479]

Parties are wife and husband. The petition for divorce between the parties and other ancillary reliefs was pending trial. The wife, who is the petitioner, is under cross-examination. The husband relies upon certain handwritten diaries of the wife as well as a compact disk (CD) on which conversation between the wife and the husband has been recorded by the husband on certain dates. The husband has produced the transcript of the said conversation. The wife admits the handwriting in her diaries. The parties are at dispute with regard to the taped conversation on the CD. It is contended on behalf of the wife that the taped conversation cannot be relied upon as a document. It is also contended by the wife that the affidavit of documents was not filed and the instrument on which the initial conversation was recorded is not produced. The wife has neither admitted nor denied the conversation. The husband seeks to use it in her cross-examination.

The Court referred to the elementary principle of recording evidence which must be first considered. Evidence consists of examination-in-chief and cross-examination. A party is required to offer for inspection and produce the documents relied upon by him in support of his case. This is required in his examination-in-chief. This contains the oral and documentary evidence.

The Court further observed that the accuracy of the tape-recorded conversation is of utmost importance since the document, which is a CD having tape-recorded conversation, is liable to erasure or mutilation. Thus it would be for the defendant to show that it was the original recording. This could be done by producing the initial record or the original electronic record. This original electronic record, which is primary evidence, is the instrument on which the original conversation is recorded. The defendant has not produced that evidence. The defendant has not shown the mechanical/ electronic process by which the CD was obtained. The defendant has relied upon the CD per se. That, being a copy, is secondary evidence. At the stage at which the CD is sought to be produced (that is in the cross-examination of the plaintiff), the defendant is permitted not to produce the original electronic record. The copy of such record, being the CD, can itself be used for confrontation in the cross-examination. Much will depend upon the answers in the cross-examination by the plaintiff. If however, the defendant desires to set up a specific case, for which the evidence is contained in the CD, he would be required to satisfy the test of accuracy by producing the original electronic record.

It must be mentioned that evidence is to be considered from three aspects; admissibility of evidence, recording of evidence and appreciation of evidence. It is settled law that tape-recorded conversation is admissible in evidence. What must be of importance is how the tape-recorded conversation is to be recorded as evidence and appreciated thereafter. Recording can be in the cross-examination of the other side and/or in the evidence of the recorder himself. The appreciation of evidence would require consideration of the aforesaid three requirements; identification, relevancy and accuracy. It is left to the defendant to pass those tests. If the tests are not passed, the tape-recorded conversation would be of no use in effect ultimately.

The requirement of sealing the recorded conversation would not be applicable in this case. That requirement is of essence in a criminal case where during investigation the conversation of a party is recorded by the investigating officer. He would certainly be required to seal the tape-recorded conversation and keep it in a safe custody so as to play before the Court at the time of the trial. It has nevertheless to be shown to be accurate and untampered with.

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Adoption — Validity — Will proved by examination of attesting witness and scribe of Will — Hindu Adoption and Maintenance Act, section 6 and section 16, Succession Act section 63.

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[ Saroja v. Santhilkumar & Ors., AIR 2011 SC 642]

It was the case of the plaintiffs that plaintiff No. 2 who was the daughter of late Arumugha Mudaliar and plaintiff No. 1 was the son of plaintiff No. 2, i.e., grandson of late Arumugha Mudaliar. Arumugha Mudaliar had three children, namely, Mangalam, Saraswathi and Jayasubramanian. Jayasubramanian, the only son had expired in 1982. As the son of late Arumugha Mudaliar had expired, he had adopted Santhilkumar, his grand-son, the son of his daughter Saraswathi and plaintiff No. 1, by executing an adoption deed after doing necessary rituals required to be performed under Hindu Law. Late Arumugha Mudaliar had thereafter executed a registered Will whereby the properties referred along with other properties had been bequeathed and properties referred to in the schedule attached to the plaint had been disposed of in favour of his daughter Saraswathi and his grandson Santhilkumar, i.e., the plaintiffs.

As the defendants i.e., the present appellant and respondent Nos. 3 and 4 were interfering with or were likely to interfere with the possession of the properties referred to, a suit was filed by Saraswathi and her son Santhilkumar who was minor at the relevant time. The said suit was dismissed for the reason that the Trial Court did not believe that Santhilkumar was properly adopted by late Arumugha Mudaliar and the properties which had been bequeathed in the will were ancestral properties and, therefore, late Arumugha Mudaliar did not have absolute right to dispose of the same.

On appeal the Court observed that so far as the adoption of Santhilkumar was concerned, the said adoption had been duly established before the Trial Court. Late Arumugha Mudaliar had followed the rituals required as per the provision of Hindu Law while adopting Santhilkumar as his son. There was sufficient evidence before the Trial Court to establish that Santhilkumar had been validly adopted by late Arumugha Mudaliar. Shri Kandasamy , a witness, had been examined in detail, who had placed on record photographs taken at the time of the ceremony. The said witness had given details about the rituals performed and the persons who were present at the time of the adoption ceremony and the deed of adoption had also been registered. The aforestated facts leave no doubt in mind that the adoption was valid. Even the photographs and negatives of the photographs which had been taken at the time of adoption are forming part of the record. In such a set of circumstances, there was no reason to disbelieve the adoption. Therefore, it was held that Santhilkumar was the legally adopted son of late Arumugha Mudaliar.

So far as execution of the Will was concerned, the said Will had been duly registered. For the purpose of proving the Will, one of the attesting witnesses of the Will, namely, Umar Datta had been examined. In his deposition, he had stated that he was present when the said Will was being written by Kalyanasundaram. The scribe of the Will had also been examined. Thus the Will was proved. The decree of the Trial Court was set aside.

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Scheme of Amalgamation — Sanction of Court — Companies Act, section 391(2), 394.

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[Sesa Industries Ltd. v. Krishna H. Bajaj & Ors., AIR 2011 SC 1070]

A resolution was passed by the Board of Directors of SIL to amalgamate SIL with SGL, effective from 1st April, 2005. In pursuance thereof, SIL and SGL filed respective company applications in the Bombay High Court seeking the Court’s permission to convene a general body meeting. In the year 2006 the High Court allowed SIL and SGL to convene meetings for seeking approval of shareholders. The shareholders of SIL & SGL by 99% majority approved the scheme of amalgamation. Only the respondent No. 1 was the sole shareholder who had objected. Petitions were filed in the High Court for according approval to the scheme. Official Liquidator also filed his report. The objection of report were dismissed and subsequent appeals against the same were dismissed. Thereafter the Company Judge sanctioned the scheme of amalgamation. Aggrieved by the above order the Respondent No. 1 filed an appeal whereby the Division Bench set aside the Company Judge order. Hence the appeals were filed by SLP before the Apex Court.

The Court observed that when a scheme of amalgamation/ merger of a company is placed before the Court for its sanction, in the first instance the Court has to direct holding of meetings in the manner stipulated in section 391 of the Act. Thereafter before sanctioning such a scheme, even though approved by a majority of the concerned members or creditors, the Court has to be satisfied that the company or any other person moving such an application for sanction under sub-section (2) of section 391 has disclosed all the relevant matters mentioned in the proviso to the said sub-section. First proviso to section 394 of the Act stipulates that no scheme of amalgamation of a company, which is being wound up, with any other company, shall be sanctioned by the Court unless the Court has received a report from the Company Law Board or the Registrar to the effect that the affairs of the company have not been conducted in a manner prejudicial to the interests of its members or to public interest. Similarly, second proviso to the said section provides that no order for the dissolution of any transferor company under clause (iv) of subsection (1) of section 394 of the Act shall be made unless the official liquidator has, on scrutiny of the books and papers of the company, made a report to the Court that the affairs of the company have not been conducted in a manner prejudicial to the interests of its members or to public interest. Thus, section 394 of the Act casts an obligation on the Court to be satisfied that the scheme of amalgamation or merger is not prejudicial to the interest of its members or to public interest.

Therefore, while it is trite to say that the Court called upon to sanction a scheme of amalgamation would not act as a court of appeal and sit in judgment over the informed view of the concerned parties to the scheme, as the same is best left to the corporate and commercial wisdom of the parties concerned, yet it is clearly discernible from a conjoint reading of the aforesaid provisions that the Court before whom the scheme is placed, is not expected to put its seal of approval on the scheme merely because the majority of the shareholders have voted in favour of the scheme. Since the scheme which gets sanctioned by the Court would be binding on the dissenting minority shareholders or creditors, the Court is obliged to examine the scheme in its proper perspective together with its various manifestations and ramifications with a view to finding out whether the scheme is fair, just and reasonable to the concerned members and is not contrary to any law or public policy.

An Official Liquidator acts as a watchdog of the Company Court, is reposed with the duty of satisfying the Court that the affairs of the company, being dissolved, have not been carried out in a manner prejudicial to the interests of its members and the interest of the public at large. It, therefore, follows that for examining the questions as to why the transferor-company came into existence; for what purpose it was set up; who were its promoters; who were controlling it; what object was sought to be achieved by dissolving it and merging with another company, by way of a scheme of amalgamation, the report of an official liquidator is of seminal importance and in fact facilitates the Company Judge to record its satisfaction as to whether or not the affairs of the transferor company had been carried on in a manner prejudicial to the interest of the minority and to the public interest.

In the instant case concurrent finding of fact was recorded that information supplied was sufficient. However, the official liquidator failed to incorporate contents of inspection report u/s.209A in his affidavit. The official liquidator thereby failed to discharge the statutory burden placed on him under the second proviso to section 394(1) of the Act.

However the sanction of scheme cannot be held up merely because the conduct of official liquidator is blameworthy. In the instant case the findings in the report u/s.209A of the Act were placed before the Company Judge, and he had considered the same while sanctioning the scheme of amalgamation. Therefore, in the facts and circumstances of the instant case, the Company Judge had, before him, all material facts which had a direct bearing on the sanction of the amalgamation scheme, despite the aforestated lapse on the part of the Official Liquidator. The Company Judge, having examined all material facts, was justified in sanctioning the scheme of amalgamation.

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Powers of Attorney — Right of audience before Court — Power of Attorney Act, 1882, section 2.

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[Varsha A. Maheshwari (Mrs) v. M/s. Bhushan Steel Ltd. & Anr., AIR 2011 Bombay 58.]

Shri Ajay Maheshwari, holding the power of attorney on behalf of the appellant Mrs. Varsha Maheshwari, his wife, claimed to be heard on her behalf. Shri Maheshwari asserted his right to be heard by the Court on the basis of the power of attorney executed by his wife. His contention was that since the Power of Attorney empowered him ‘to act and appear’ on behalf of his wife, it conferred a right of audience before the Court.

Shri Maheshwari, holder of power of attorney, relied upon the judgment of the Supreme Court in the case of Janki Vashdeo Bhojwani & Anr. v. Indusind Bank Ltd., reported at 2005 SCC 439, where the Supreme Court held that the right of power of attorney is to appear, plead and act on behalf of the party and can state on oath whatever knowledge he has about the case, but he cannot become a witness on behalf of the party. He can only appear in his personal capacity.

As to the circumstances in which a person may be permitted by the Court to appear, act and plead, the Bombay High Court referred to a judgment of the Supreme Court delivered by Justice V. R. Krishna Iyer, in the case of Harishankar Rastogi v. Girdhari Sharma & Anr., reported at AIR 1978 SC 1019, wherein the Supreme Court held that a private person who was not an advocate, has no right to barge into the Court and claim to argue for a party. He must get the prior permission of the Court for which the motion must come from the party himself.

In the later judgment in the case of T. C. Mathai v. District & Sessions Judge, reported at (1999) 3 SCC 614, the Supreme Court had followed the view in Harishankar Rastogi v. Girdhari Sharma & Anr., (supra) and upheld it.

The Court held that a person holding a power of attorney on behalf of a party authorising him to appear, act or plead for him before a Court of law is not entitled to a right of audience before a Court of law and cannot be heard as a representative of the party unless specifically permitted by the Court to do so upon a proper application moved by the party himself. As regards the application of the appellant Mrs. Varsha Ajay Maheshwari was concerned, having regard to the fact that the person seeking to represent her was her husband who was well versed with the circumstances of the case and being a person who had entered into all transactions relevant for the decision of the present dispute, he was permitted to address the Court in the matter.

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Doctrine of merger — Precedent — Maintainability of review petition before High Court — When SLP dismissed by Apex Court against the main judgment of High Court — Constitution of India, Article 136.

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[Gangadhara Palo v. Revenue Divisional Officer, (2011) (266) ELT 3 (SC)]

The main judgment of the High Court was dated 19th June, 2001 dismissing the writ petition of the appellant herein, the appellant thereafter filed a special leave petition to the Apex Court which was dismissed on 17th September, 2001.

The order of the Apex Court dismissing the special leave petition simply states “The special leave petition is dismissed”. Thus, the order gives no reasons.

Thereafter a review petition was filed before the High Court. The question arose as regards the maintainability of the review petition. The review petition was dismissed by the High Court.

On appeal to Supreme Court it was observed that it will make no difference whether the review petition was filed in the High Court before the dismissal of the special leave petition or after the dismissal of the special leave petition. The important question really was whether the judgment of the High Court has merged into the judgment of the Supreme Court by the doctrine of merger or not.

When the Apex Court dismisses a special leave petition by giving some reasons, however meagre (it can be even of just one sentence), there will be a merger of the judgment of the High Court into the order of the Supreme Court dismissing the special leave petition. According to the doctrine of merger, the judgment of the Lower Court merges in to the judgment of the Higher Court. Hence, if some reasons, however meager, are given by the Apex Court while dismissing the special leave petition, then by the doctrine of merger, the judgment of the High Court merges into the judgment of the Apex Court and after merger there is no judgment of the High Court. Hence, there can be no review of a judgment which does not even exist.

The situation is totally different where a special leave petition is dismissed without giving any reasons whatsoever. It is well settled that special leave under Article 136 of the Constitution of India is a discretionary remedy, and hence a special leave petition can be dismissed for a variety of reasons and not necessarily on merits. One cannot say what was in the mind of the Court while dismissing the special leave petition without giving any reasons. Hence, when a special leave petition is dismissed without giving any reasons, there is no merger of the judgment of the High Court with the order of this Court. Hence, the judgment of the High Court can be reviewed since it continues to exist, though the scope of the review petition is limited to errors apparent on the face of the record. If, on the other hand, a special leave petition is dismissed with reasons, however meagre (it can be even of just one sentence), there is a merger of the judgment of the High Court in the order of the Supreme Court.

A judgment which continues to exist can obviously be reviewed, though of course the scope of the review is limited to errors apparent on the face of the record, but it cannot be said that the review petition is not maintainable at all.

A precedent is a decision which lays down some principle of law. A mere stray observation of the Court, would not amount to a precedent. Thus, a stray observation of the Court while dismissing the SLP was not a precedent.

The power of review cannot be taken away as that has been conferred by the statute or the Constitution. The review petition was remanded back to the High Court to decide on merits in accordance with law.

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Inherent powers of Court — Every procedure is permissible for a Court for doing justice unless express prohibited — CPC section 151.

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[Rajendra Prasad Gupta v. Prakash Chandra Mishra and Others, (2011) 2 SCC 705]

The appellant was the plaintiff in a suit filed before the Court of the Civil Judge, Varanasi. He filed an application to withdraw the said suit. Subsequently he changed his mind and before an order could be passed in the withdrawal application he filed an application praying for withdrawal of the earlier withdrawal application. The second application was dismissed and that order was upheld by the High Court.

The Supreme Court held that rules of procedure are handmaids of justice. Section 151 of the Code of Code of Civil Procedure gives inherent powers to the Court to do justice. That provision has to be interpreted to mean that every procedure is permitted to the Court for doing justice unless expressly prohibited, and not that every procedure is prohibited unless expressly permitted. Courts are not to act upon the principle that every procedure is to be taken as prohibited unless it is expressly provided for by the Code, but on the converse principle that every procedure is to be understood as permissible till it is shown to be prohibited by the law. As a matter of general principle prohibition cannot be presumed. There is no express bar in filing an application for withdrawal of the withdrawal application.

The application praying for withdrawal of the withdrawal application was maintainable.

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Foreign judgment — Decision on merits would be conclusive — Hence enforceable in India — CPC, section 13(b).

Foreign judgment — Decision on merits would be conclusive — Hence enforceable in India — CPC, section 13(b).

[Karnail Singh Sandhar v. M/s. Sandhar and Kang Ltd., AIR 2011 (NOC) 69 (P & H)]

The petitioner filed a claim against Sandhar & Kang Ltd. & Ors. in the High Court of Justice, Chancery Division, UK. The petitioner and defendant had establish a business partnership for trading in food retails. In or about 1986, the petitioner and defendants fell out, the petitioner resigned as a director and shareholder of the company and was paid £350,000 for his shareholding in the company. However, the petitioner remained registered as a holder of the legal estate in the property and the Chester Road property with defendants in equal shares. After his resignation, the petitioner left UK and settled at Canada and obtained Canadian citizenship. Without the knowledge and consent of the petitioner, the defendants sold the property. The petitioner returned to the UK and discovered the aforesaid transfers. The petitioner filed necessary proceeding against the defendants in respect of the property.

On 3-5-2007, the High Court of Justice issued a judgment by way of a minute of order whereby the petitioner was directed to pay the costs. On 14-2-2008, the Appellate Court dismissed the appeal by way of an order and directed the petitioner to pay costs incurred by the defendants in relation to the Court of Appeal proceedings related to the Court of Appeal order. That after the aforesaid orders passed by the Courts at UK, the respondent/decree-holder filed an execution in the Court at Ontario, Canada as the petitioner was a citizen of Canada. The said execution was pending but no recovery could be effected. Nothing could be recovered from the petitioner even in UK.

Litigation between the parties on execution in India.

On 11- 6-2008, the respondent filed an execution in the Court of learned District Judge, Sangrur for execution of the decrees to recover costs of £ 50,000 as the property of the petitioner is situated at Sangrur. The learned District Judge, Sangrur, vide its impugned order dated 26-2-2010 rejected the plea raised by the petitioner and held that the application for execution of the foreign judgments is maintainable.

The petitioner invoked the revisional jurisdiction of the Court under Article 227 of the Constitution of India to challenge the impugned order dated 6-2-2010 upholding the maintainability of the execution application filed by the respondent who had sought to execute foreign judgments at Sangrur in India.

The Court held that section 13(b) of the Civil Procedure Code (CPC) provides that a foreign judgment shall be conclusive as to any matter thereby directly decided between the parties, but there are certain exceptions which are provided in clause (a) to (f) in which clause (b) provides that a judgment shall not be conclusive if it is not rendered on the merits of the case.

It was held that the judgment passed by the High Court of Justice and the Court of Appeal of the U.K., which were sought to be executed in the present case, were judgments on merits and it is also held that in order to decide a case on merits in a case which is decided under a summary procedure after considering the evidence available on record led by the parties, it would be a decision on merits to be covered u/s.13(b) of the CPC.

Hence, in view of it was held that costs order imposing costs a foreign Court was a decree which could be executed in the Court in India u/s.44-A of the CPC. Simultaneous execution petition in India and Foreign Court not barred specially when decree holder has stated that nothing has been recovered from execution filed in other Court.