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Friday, April 27, 2012

A compromise between two sects of community for performing pujas to their Gods by each contributing every year and by getting appointing trustees from both sects.Decree passed in the year 1933. E.P. filed on 2000 stating that the violation of compromise decree for the first time happen in the year 1999 - with in one year E.P. filed. - held that the E.P. is with in time. But as no violation occurred execution is not maintainable


THE HON'BLE SRI JUSTICE K.G. SHANKAR      

CRP No.5224 of 2005

06.01.2012

Kamatam Sangalappa and 2 others  

Kapadam Sngalappa and 6 others  

Counsel for the petitioner:  K.G. Krishna Moorthy

Counsel for the Respondents:   J. Ugra Narasimha N. Aswartha Narayana for R-7


? Cases referred:
1. AIR 1966 SC 153
2. AIR 1978 SC 1341
3. AIR 1984 SC 1894
4. AIR 1986 SC 446
5. AIR 1987 SC 1782
6. (1998) 7 SCC 383
7. (2002) 6 SCC 1
8. AIR 2007 SC 1103
9. AIR 1963 SC 698
10. (2004) 5 SCC 1
11. AIR 1932 Privy Council 165
12. (1899) 22 ILR Mad. 68 (at p.80)
13. (2010) 9 SCC 642
14. 1988 (1) ALT 689
15. (2001) 7 SCC 573


THE HON'BLE SRI JUSTICE K.G. SHANKAR      

C.R.P.No.5224 of 2005

Date:   06.01.2012

Between:

Kamatam Sangalappa,  
R/o. Yerrayapalli Village, Bathalapalli Mandal,
Anantapur District,
and 2 others                                            ... Petitioners/
                                                          Judgment debtors
                               
        AND

Kapadam Sangalappa,  
R/o. Gangalakunta Village,
Anantapur District,
and 6 others
                                ... Respondents/
Decree holders


THE HON'BLE SRI JUSTICE K.G. SHANKAR      

C.R.P.No.5224 of 2005

ORDER:
The revision is continuation of age-old lis in O.S.No.15 of 1933 on the file of
the Sub-Judge, Anantapur.  E.P.No.59 of 2000 was laid by the alleged decree
holders in E.P.No.15 of 1933. The dispute revolves round Kapadam families on the
one side and Kamatam families on the other side. Kapadam families are residents
of Gangulakunta village.  Kamatam families reside in Yerrayapalli village.  The
dispute more or less is a dispute between Gangulakunta and Yerrayapalli
villages.  Lord Sangalappa is the common deity of the Kapadam sect of
Gangulakunta and Kamatam sect of Yerrayapalli. Both the people belong to Koraba
community, which is said to be a herding community in Anantapur District.

2.      This revision is loaded with questions of law such as question of
limitation, maintainability of the revision under Section 115 of the Civil
Procedure Code (CPC, for short) and the locus standi of the decree holders to
lay the execution petition.  It is, however, necessary to know the outlines of
the case.

3.      Gangulakunta and Yerrayapalli villages have their own temples.  However,
they have the custom of exchanging or rotating the paraphernalia periodically.
The revision is laid by Kamatam sect of Yerrayapalli questioning the order in
E.P.No.59 of 2000.  Kapadam family of Gungulakunta laid the execution petition
as the decree holders, arraying the Kamatam family as the judgment debtors.
However, O.S.No.59 of 1933 was laid by the Kamatam family against Kapadam  
family.
The parties shall be referred to hereinafter as they are arrayed in E.P.No.59 of
2000 as decree holders and judgment debtors.

        4.      As already pointed out, there is a very long legal background for
this case. The judgment debtors initially laid O.S.No.486 of 1927 on the file of
the District Munsif Court, Anantapur.  It was a suit for custody of pooja
articles of insignificant value but of extraordinary sentimental and religious
implications.  The property in respect of which O.S.No.486 of 1927 was laid more
or less is identical with the E.P. schedule property, such as bronze horses
etc., including the idols of Lord Sangalappa Swamy.

        5.      The decree holders resisted the suit.  The suit ultimately was
dismissed.  An appeal in A.S.No.114 of 1928 was preferred before the District
Judge, Anantapur.  The appeal was also dismissed. In the appeal, the learned
District Judge made an observation that a suit can be laid in the representative
capacity under Section 92 CPC as a scheme suit.  Subsequently, O.S.No.1 of 1931
was laid by the judgment debtors in the District Court, Anantapur.  It was later
transferred to the Subordinate Judge, Anantapur and was renumbered as O.S.No.15
of 1933.  O.S.No.15 of 1933 was the suit laid in terms of the observations in
A.S.No.114 of 1928 on the file of the District Court, Anantapur.
       
6.      While the suit was pending before the Sub-Court, Anantapur, apparently
wise counsel prevailed over the parties. The rival groups entered into a
compromise.  It was observed that the decree holders had been performing pooja
till the date of compromise and had been meeting the expenditure for performing
pooja.
The decree ordained that the judgment debtors should pay a sum of ` 2,000/-
towards their half share of pooja expenditure.
       
7.      The compromise further recorded that the decree holders and the judgment
debtors should appoint two trustees each who should look after the performance
of pooja and other activities and account to both sides.  Clause 2 of the
compromise envisaged that the idols of the God should be installed for six
months at Yerrayapalli and for the remaining six months at Gangulakunta in a
year. Apart from that each sect should lead the performance of poojas for three
months at a time to be taken over by the other side for three months thereafter
to be followed once again by the first side for another three months, so on and
so forth.
       
8.      Hopefully, the dispute had a quietus with the compromise decree. However,
troubles erupted. According to the decree holders, Kamatam sect of judgment
debtor refused to rotate the paraphernalia in 1999, so much so, it became
necessary for Kapadam sect to file E.P.No.59 of 2000 as decree holders.
       
9.      This is not the end of the matter.
The judgment debtors laid counter initially in E.P.No.59 of 2000 and later
attempted to amend the same.  They laid E.A.No.686 of 2001 in E.P.No.59 of 2000.
When E.A.No.686 of 2001 was dismissed, the judgment debtors preferred
C.R.P.No.2777 of 2002.  It was the fist revision in the series of cases in this
lis.  The orders in the revision allowed the judgment debtors to amend the
counter.  E.A.No.686 of 2001 was remitted to the execution Court.  A specific
direction, however, was issued to the execution Court in C.R.P.No.2777 of 2002
that the execution Court should frame a point regarding the maintainability of
the E.P. and decide the same.
       
10.     On the basis of the orders in C.R.P.No.2777 of 2002, a preliminary issue
was framed regarding the maintainability of the execution Court.  The execution
Court held that the E.P. was maintainable, through orders dated 14.10.2003.
Then arose the second revision in C.R.P.No.6055 of 2003 laid by the judgment
debtors once again. The revision in C.R.P.No.6055 of 2003 was dismissed on
12.04.2005.
       
11.     Three questions were raised in C.R.P.No.6055 of 2003 viz., i) whether the
E.P. was barred by limitation; ii) whether the decree holders can execute the
decree; and iii) whether Section 42 of the Andhra Pradesh Charitable and Hindu
Religious Institutions and Endowments Act, 1987 (Endowments Act, for short) bars
the jurisdiction of the Civil Court.  The High Court held that the execution
petition was maintainable in view of Section 9, C.P.C.  It was also held in
C.R.P.No.6055 of 2003 that Section 42 of the Endowments Act did not oust the
jurisdiction of the execution Court.  The question of limitation and the
competence of the decree holders to execute the decree were left open to the
execution Court to decide.  Inter alia, it was observed in C.R.P.No.6055 of 2003
that the terms of compromise in O.S.No.15 of 1933 were not inconsistent with
Section 42, Endowments Act.

        12.     The case then came up before the execution Court.  As rightly
submitted by Sri J. Ugra Narasimha, learned counsel for the decree holders, the
execution Court conducted E.P.No.59 of 2000 like a trial.
It recorded as many as five points for consideration, recorded the evidence of
PW.1 and RW.1 and marked Exs.A.1 & A.2 and Ex.B.1.  The E.P., however, was    
allowed.  The judgment debtors were directed to return the E.P. schedule
articles to the decree holders within one month from the date of the order,
failing which warrant under Order XXI Rule 31 CPC was directed to be issued for
the seizure of the E.P. schedule articles.  Assailing the same, the present
revision is laid by the judgement debtors.

        13.     I may make it clear that I have been using the terms, judgment
debtors and the decree holders for the purpose of convenience only. Kapadam
family of Gangulakunta, who are the defendants in O.S.No.15 of 1933, laid the
E.P. describing themselves as decree holders.  They were arrayed as defendants
in O.S.No.15 of 1933.  Kamatam sect of Yerrayapalli, who are described as
judgment debtor in E.P.No.59 of 2000, laid O.S.No.15 of 1933.  In other words,
the plaintiffs are arrayed as judgment debtors and the defendants are arrayed as
decree holders.
       
14.     In fact, the confusion does not end there.  None of the decree holders and
the judgment debtors as arrayed in E.P.No.59 of 2000 was a party in O.S.No.15 of
1933.  It would appear that the then heads of the family are no more.  One of
the grounds urged by Sri K.G. Krishna Murthy, learned counsel for the revision
petitioners/judgment debtors is that the present E.P. is not maintainable by the
present decree holders.  I shall examine this question at the appropriate time.
I referred to this contention to point out that none of the original parties to
O.S.No.15 of 1933 is a party to the present revision.

        15.     The following questions arise for consideration:
i) Whether this revision is maintainable u/s.115 CPC?
ii) Whether the execution petition is barred by limitation?
iii) Whether the decree holders have locus standi to lay the execution petition?
and
iv) What is the appropriate relief?

Question No.(i):

16.     This very revision was disposed of by this Court on 22.12.2006.  The High
Court unfortunately took the revision in a lighter vein.  While the tempers
between the two sects of Kuruba reached the boiling point, the High Court
considered that as the dispute effects large number of people hailing from
different sects, it would be desirable for the Lok Adalat to settle the dispute
amicably after a detailed discussion, deliberations and interaction with rival
claimants.  This court disposed of the revision and referred the case to the Lok
Adalat, Anantapur District Unit with a direction to the Presiding Officer and
Member of the Lok Adalat to go into the rival contentions and resolve the
dispute.  It is obvious that the dispute between the rival groups cannot be
resolved by amicable understanding where emotions have been dominating both
groups. The learned Secretary, District Legal Services Authority, Anantapur
wrote back to the this Court that the attempt on the part of the Lok Adalat to
settle the dispute did not succeed, so much so, the case came up before me once
again for fresh consideration.

17.     Sri J. Urga Narasimha,  learned counsel for the decree holders submitted
that the revision is not maintainable and that the same deserves to be dismissed
in limini.  On the other hand, Sri K.G. Krishna Murthy, learned counsel for the
judgment debtors advanced the view that the revision is perfectly maintainable.

18.     It may be noticed that this revision was laid u/s.115 CPC and not under
Article 227 of the Indian Constitution.  Sec.115 CPC reads:
"115. Revision:--- (1) 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 thereto, 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:

Provided that the High Court shall not, under this section, vary or reverse any
order made, or any order deciding an issue, in the course of a suit or other
proceeding, except where the order, if it had been made in favour of the party
applying for revision, would have finally disposed of the suit or other
proceedings.

(2) The High Court shall not, under this section, vary or reverse any decree or
order against which an appeal lies either to the High Court or to any Court
subordinate thereto.

(3)     A revision shall not operate as a stay of suit or other proceeding before
the Court except where such suit or other proceeding is stayed by the High
Court."

        19.     The learned counsel for the judgment debtors contended that the
execution Court exercised the jurisdiction, which did not vest in it (on account
of the bar of limitation and the principles of locus standi), that in the
alternative, the execution Court acted perversely leading to illegality and
material irregularity in exercising its jurisdiction and that the revision
consequently is maintainable u/s.115 (1) CPC.
       
20.     I may refer to the march of law with reference to the cases relied upon by
both sides.
       
21.     In Pandurang Dhondi Chougule v. Maruti Hari Jadhav1, the Supreme Court re-
examined Sec.115 CPC.  Indeed, after 1977 amendments and 2002 amendments to CPC,      
the scope of Sec.115 CPC had drastically been narrowed down.  This decision of
the Supreme Court was pre-amendment of Sec.115 CPC scenario.  The Supreme Court    
observed in para 10:
"The provisions of S.115 of the Code have been examined by judicial decisions on
several occasions.  While exercising its jurisdiction under S. 115, it is not
competent to the High Court to correct errors of fact, however gross they may
be, or even errors of law, unless the said errors have relation to the
jurisdiction of the Court to try the dispute itself.  As Cls. (a), (b) and (c)
of S.115 indicate, it is only in cases where the subordinate Court has exercised
a jurisdiction not vested in it by law, or has failed to exercise a jurisdiction
so vested, or has acted in the exercise of its jurisdiction illegally or with
material irregularity that the revisional jurisdiction of the High Court can be
properly invoked.  It is conceivable that points of law may arise in proceedings
instituted before subordinate Courts which are related to question of
jurisdictions.  It is well-settled that a plea of limitation or a plea of re
judicata is a plea of law which concerns the jurisdiction of the Court which
tries the proceedings.  A finding on these please 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 questions of jurisdiction which
fall within the purview of S. 115 of the Code.  But an erroneous decision on a
question of law reached by the subordinate Court which has no relation to
questions of jurisdiction of that Court, cannot be corrected by the High Court
under S. 115."
               
22.     The learned counsel for the judgment debtors contended that where the
judgment debtors contend that the order passed by the execution Court is not
sustainable on account of the bar of limitation and also on account of the
absence of locus standi to the decree holders, the revision, which arises these
questions of law, is maintainable.  The Supreme Court observed that such
questions, which oust the jurisdiction of the Court, can be assailed in a
revision on the ground that the order in question was an erroneous decision.
       
23.     In Sher Sing v. Joint Director of Consolidation2, Section 48 of the Uttar
Pradesh Consolidation of Holding Act came up for consideration.  The Supreme
Court held that Sec.48 of the said Act was in pari materia with Sec.115 CPC. So
holding, the Supreme Court observed that the revisional jurisdiction of the High
Court was confined to cases of illegal or irregular exercise or non-exercise or
illegal assumption of the jurisdiction by the subordinate courts and that if the
subordinate court possessed jurisdiction to decide the matter, it could not be
said that the subordinate courts exercise the jurisdiction illegally or with
material irregularity even if such subordinate court decided the matter wrongly.
The Supreme Court clarified that it would not be open to the High Court u/s.115
CPC to correct errors of fact or even errors of law unless the errors have
relation to the jurisdiction of the court to try the dispute itself.  It is the
contention of the learned counsel for the decree holders that the revisional
Court cannot go into fact finding exercise and that the present revision is not
maintainable.  It may be noticed that the Supreme Court observed in this case
that the alleged errors committed by the subordinate court must be related to
the jurisdiction of the court to try the dispute itself for the revisional Court
to entertain the revision.  The judgment debtors, who laid this revision, have
specifically taken the plea that the execution court had no jurisdiction to
entertain the execution application as the same was barred by limitation and
also as the decree holders had no locus to file the execution petition.  Thus,
the alleged error on the part of the execution court was with reference to the
jurisdiction of the execution court.  The decision in the cited cases,
therefore, does not debar the revisional jurisdiction of this court to entertain
the present application.
       
24.     In M/s. Bhojraj Kunwarji Oil Mill and Ginning Factory v. Yograjsinha
Shankersinha Parihar3 the respondents obtained a decree for possession against
the appellants. The decree for eviction was sought to be executed.  The
possession of the property was delivered to the respondents. The appellants,
subsequently, sought for their re-induction into the possession of the property.
As there was delay in filing application u/s.17 of the Bombay Rents, Hotel and
Lodging House Rates (Control) Act, 1947, the trial court condoned the delay in
filing the petition.  In the revision arising therefrom, the High Court held
that the delay was not satisfactorily explained.  The delay consequently was not
condoned. The aggrieved party preferred civil appeal by special leave before the
Supreme Court.  Inter alia, the revisional powers of the High Court came up for
consideration in the appeal before the Supreme Court.  The Supreme Court held
that if the trial court had jurisdiction to condone the delay, there was no
material to hold that there was no impropriety in exercising the said
jurisdiction. The approach of the High Court in interfering with the order of
the trial court in the condonation of the delay was criticised by the Supreme
Court. The learned counsel for the decree holders contended that the revisional
court has no jurisdiction to interfere with the execution order.  I am afraid
that the contention cannot be countenanced where questions of law were raised by
the judgment debtors before the execution court and where the execution court
erroneously disallowed the questions of law raised by the judgment debtors.
       
25.     In Manick Chandra Nandy v. Debdas Nandy4, the Supreme Court clarified that
the exercise of the revisional jurisdiction was confined to the questions of
jurisdiction.  The Supreme Court pointed out that in a first appeal, the
appellate court was free to decide all questions of law and fact that arises in
the case and that in the exercise of the revisional jurisdiction, the High
Court, however, was not entitled to re-examine and
re-assess the evidence on record and substitute its own findings on facts for
those of the subordinate court.
The learned counsel for the decree holders contended that assuming that the
order of the execution court was incorrect, the same cannot be interfered with
in exercise of the powers u/s.115 CPC.  I am afraid that the contention of the
learned counsel for the decree holders cannot be countenanced.  Where the
controversy is relating to the very jurisdiction of the execution court,
erroneous or alleged erroneous findings can be questioned before the revisional
court, in view of the decisions already cited.
       
26.     The learned counsel for both sides placed reliance upon further decisions
in support of their respective cases.
       
27.     In Helper Girdharbhai v. Saiyed Mohmad Mirasaheb Kadri5, it was observed
that the fact that the High Court could have taken a different view from the
findings adopted by the trial Court would not entail the aggrieved party to
invoke the revisional jurisdiction.
       
28.     It was observed by the Supreme Court in Patel Valmik Himatlal v. Patel
Mohanlal Muljibhai6 that mere fact that a different view was possible on re-
appreciation of the evidence was not a ground for the High Court to substitute
its own findings in exercise of the revisional jurisdiction.
        29.     In Nalakath Sainuddin v. Koorikadan Sulaman7, it was held that once
a revision is entertained by the High Court, the limitation that operates would
be that the order or proceedings sought to be scrutinized must be from a
subordinate authority.  This question, however, deserves to be considered
separately.
       
30.     It was held in G.L. Vijain v. K. Shankar8 that the revisional jurisdiction
more or less was identical with the appeal jurisdiction.
       
31.     Way back in 1961, in Hari Shankar v. Rao Girdhari Lal Chowdhury9, the
Supreme Court recognized the distinction between the appeal and the revision.
The Supreme Court held that the distinction was real.
It pointed out that u/s.115 CPC, the powers of the High Court are limited to
examine whether there had been an assumption of jurisdiction where none existed
or where refusal to exercise jurisdiction where it did and that Section 115 CPC
did not apply to other cases.  Be that as it may, it may be noticed that the
judgment debtors contended that the trial Court exercised jurisdiction which it
did not possess and that a revision, therefore, would lie.
        32.     In Tirupati Balaji Developers (P) Ltd., v. State of Bihar10, it was
held thus in para 11:
"The very conferral of appellate jurisdiction carries with it certain
consequences. Conferral of a principal substantive jurisdiction carries with it,
as a necessary concomitant of that power, the power to exercise such other
incidental and ancillary powers without which the conferral of the principal
power shall be rendered redundant. As held by their Lordships of the Privy
Council in Nagendra Nath Dey v. Suresh Chandra Dey11 (Sir Dinshaw Mulla speaking
for the Bench of five), an appeal is an application by a party to an appellate
Court asking it to set aside or revise a decision of a subordinate Court. The
appeal does not cease to be an appeal though irregular or incompetent. Placing
on record his opinion, Subramania Ayyar, J. as a member of Full Bench (of five
judges) in Chappan v. Moidin Kutti12, stated inter alia that appeal is "the
removal of a cause or a suit from an inferior to a superior Judge or court for
re-examination or review". According to Wharton's Law Lexicon such removal of a
cause or suit is for the purpose of testing the soundness of the decision of the
inferior Court. "In consonance with this particular meaning of appeal,
'appellate jurisdiction' means "the power of a superior Court to review the
decision of an inferior Court".
"Here the two things which are required to constitute appellate jurisdiction,
are the existence of the relation of superior and inferior court and the power
on the part of the former to review decisions of the latter. This has been well
put by Story:
"The essential criterion of "appellate jurisdiction is, that it revises and
corrects the proceedings in a cause already instituted and does not create that
cause.
In reference to judicial tribunals an appellate jurisdiction, therefore,
necessarily implies that the subject-matter has been already instituted and
acted upon by some other Court, whose judgment or proceedings are to be
revised," (Section 1761, Commentaries on the Constitution of the United
States)."

        33.     The Supreme Court very recently was more elaborate with reference to
the principles of appeal in James Joseph v. State of Kerala13.  The Supreme
Court held:
"We may therefore formulate the following principles with reference to appeals:
(i) An appeal is a proceeding where an higher forum reconsiders the decision of
a lower forum, on questions of fact and questions of law, with jurisdiction to
confirm, reverse, modify the decision or remand the matter to the lower forum
for fresh decision in terms of its directions.
(ii) The appellate jurisdiction can be limited or regulated by the legislature
and its extent has to be decided with reference to the language employed by the
statute conferring the appellate jurisdiction.
(iii) The width of jurisdiction or the limitations on jurisdiction with
reference to an appeal, does not depend on whether the appeal is a first appeal
or a second appeal, but depends upon the limitations, if any, placed by the
statute conferring the right of appeal.
(iv) If the Legislature's intention is to limit the jurisdiction in an appeal,
it may indicate such limits in the provision providing for appeal.
Alternatively, it may expressly or impliedly incorporate the provisions of
Section 100 of the Code, into the provision for appeals.
(v) Generally statutory provisions for appeals against original orders or
decrees (that is, first appeals) will not have any limitations and therefore
rehearing on both law and fact is contemplated; and statutory provisions for
appeals against appellate orders (that is, second appeals) will be restricted to
questions of law. But such restriction is not on account of any legal principle
that all second appeals should always be with reference to questions of law, but
would depend upon the wording of the statute placing the restrictions upon the
scope of second appeal.
(vi) Where the statute does not place any limitations or restrictions in regard
to the scope and width of the appeal, it shall be construed that the appeal
provides a right of rehearing on law as well as facts. If the Legislature enacts
a self contained provision for second appeals, without any limitation upon the
scope of the second appeal and excludes the possibility of reading the provision
of section 100 of the Code, into such provision, then, it will not be
permissible to read the limitations of Section 100 of the Code into the special
provision."
        34.     The question, therefore, is whether the present revision is
maintainable or not in the light of the decisions referred to.  I had already
pointed out that the judgment debtors raised fundamental question regarding the
jurisdiction of the execution Court in trying to execute the decree.  The
questions are pure questions of law, viz., the locus standi and the question of
limitation.  They fall within the purview of Sec. 115 CPC as it stands now after
amendments. Consequently, the present revision is maintainable.  I would hasten
to add that it is not as though the execution court had no jurisdiction to
entertain the execution petition as the same was barred by limitation and that
the decree holders had no locus standi to lay the execution petition.  These
questions are to be considered on merits in this case.  Accordingly, the
question No.(i) is answered in favour of the judgment debtors and against the
decree holders, holding that this revision petition is maintainable.
Question No.(iii):

35.     The learned counsel for the judgment debtors inter alia contended that
neither the defendants filed the execution petition nor the plaintiffs were
arrayed as judgment debtors, so much so, the execution petition was not
maintainable.  He contended that the decree holders were not the defendants
albeit Kapadam family of Gangulakunta were the defendants in O.S.No.15 of 1933.
Similarly, while Kamatam sect of Yerraipalli were the plaintiffs in O.S.No.15 of
1993, none of the plaintiffs was a judgment debtor in this case.  It is not even
described in the execution petition that the decree holders and the judgment
debtors are the legal representatives of the deceased-plaintiffs and the
deceased-defendants.
The learned counsel for the judgment debtors contended that the very execution
petition is not maintainable, as it was not laid by the parties to the suit or
their legal representatives.

36.     The Gram Panchayat filed CRP MP No.8666 of 2006 under Order 1 Rule 10 CPC    
to implead it as seventh respondent in the revision.  The proposed party claimed
that the Gram Panchayat has been performing poojas to Sangalappa Swamy temple  
situate in Yerraipalli village, that the compromise decree had never been
enforced and that the execution petition was not maintainable.  The third party
further contended that the decree holders of Gangulakunta were not entitled to
mange the temple and that the temple had been indeed under the management of the
Gram Panchayat, Sanjeevapuram. Considering that the seventh respondent was an  
intervener and a necessary party, CRP MP No.8666 of 2006 was allowed.  The Gram
Panchayat, Sanjeevapuram was brought on record as the seventh respondent.

37.     Sri N. Aswartha Narayana, learned counsel for the seventh respondent
contended that the seventh respondent, in fact, is the Gram Panchayat for
Yerraipalli also and that the seventh respondent has been managing Sangalappa
Swamy temple.  He further contended that in December 2006, Yerraipalli village
passed a resolution that the seventh respondent should perform poojas in the
temple.  It is the contention of the learned counsel for the seventh respondent
that in view of the resolution, the seventh respondent took over the
administration of the temple and that neither the decree holders nor the
judgment debtors can interfere with the same.

38.     I am afraid that this contention cannot be countenanced.  The very power
of the seventh respondent to administer the temple is on account of a resolution
in December, 2006 by Kamatam sect of Yerraipalli.
The seventh respondent, therefore, cannot contend that it acquired right to
administer the temple to the exclusion of the judgment debtors.

39.     Further, the rivalry in the present case is between the sects belonging to
Yerraipalli and Gangulakunta.  The Gram Panchayat having territorial control
over the Yerraipalli cannot assume jurisdiction over the administration of the
temple and act as though there was no controversy in the case.  The controversy
whether the judgment debtors shall hand over the sacred articles and
paraphernalia covered by the E.P. schedule to the decree holders cannot be
answered by holding that the seventh respondent took over the administration of
the temple at Yerraipalli.  While the seventh respondent indeed plays a role in
helping the court in arriving at the truth and solution to the problem, I am
afraid that the execution petition cannot be dismissed, more so,
in limini, on the ground that the seventh respondent took over the management of
the temple and that there cannot be any controversy in this regard.

40.     The question whether the decree holders are entitled to seek for the
execution of the decree needs to be addressed.

41.     It is contended by the learned counsel for the decree holders that the
suit was filed in representative capacity u/s.92 CPC.  The decree in O.S.No.15
of 1933 does not show that the suit was a representative suit u/s.92 CPC.  The
pleadings in O.S.No.15 of 1933 are not available to consider this aspect.
However, the contention of the decree holders in this regard deserves to be
accepted where the judgment debtors do not deny that they (the judgment debtors)
laid the suit in O.S.No.15 of 1933 u/s.92 CPC.  Accordingly, I hold that the
suit was u/s.92 CPC.

42.     U/s.92 CPC, two or more persons interested in a religious institute can
lay a suit, inter alia, for the management of the institute. Further, the
learned counsel for both sides drew my attention to Sec.42 of the Endowments
Act. Sec.42 of the Endowments Act has overriding effect on other provisions of
the Act, as observed by this court in L. Laxmana Rao v. Assistant Commissioner
of Endowments, Eluru14.  The very scheme of Endowments Act envisages that any  
person interested in the religious institution is entitled to approach the court
for redressal. Sec.2 (18) of Endowments Act defines "person having interest" in
a religious institute and other institutions.

43.     The learned counsel for the decree holders also contended that Sec.146,
CPC envisages that execution can be initiated against any person claiming
through a person who participated in the proceedings. As rightly submitted by
the learned counsel for the decree holders, these provisions empower the decree
holders to institute the execution proceedings against the judgment debtors.
Whether the decree holders are entitled to the relief claimed by them is a
different issue.  Primarily, the judgment debtors cannot resist the execution
petition on the ground that the decree holders do not have locus standi to lay
the execution petition where the suit admittedly was a representative suit
u/s.92 CPC and where the decree holders are persons having interested in the
religious institution, as defined u/s.2 (18) of the Endowment Act. Consequently,
Question No.(iii) is answered in favour of the decree holders and against the
judgment debtors holding that the decree holders have locus standi to seek for
the execution of the compromise decree in O.S.No.15 of 1933.
Question No.(iv):
        44.     The decree holders seek for the return of E.P. schedule articles
from the judgment debtors. The learned counsel for the judgment debtors
contended that if there is anybody who can seek for the execution of the consent
decree, it is the judgment debtors and not other way round.  It may be recalled
that the judgment debtors are the plaintiffs and the decree holders are the
defendants.  The consent decree reads that the defendants/decree holders had
been performing pooja till that date meeting the expenditure. The decree
directed the plaintiffs to meet half of the pooja expenditure evaluated at `
2,000/- and that the defendants/decree holders should allow the pooja by the
plaintiffs/judgment debtors by receiving
` 2,000/-. The plaintiffs, consequently, could pay
` 2,000/- to the defendants and demand to permit them to render pooja to the
God.  The plaintiffs, however, did not choose to comply with the conditions and
did not pay ` 2,000/- as ordained by clause-1 of the consent decree.  As the
plaintiffs did not fulfil the conditions imposed, the plaintiffs were not
entitled to seek the execution of the decree.  It is the contention of the
learned counsel for the plaintiffs/judgment debtors that the plaintiffs could
not ask for the execution of the decree and that the defendants also cannot seek
for the execution of the decree, as there is no decree executable by the
defendants.
       
45.     The learned counsel for the defendants/decree holders referred to clause-2
of the consent decree.
The plaintiffs and the defendants agreed to appoint two trustees by each of them
to look after the nitya pooja (daily prays) and accounts. The clause further
contemplates that the idols (perhaps the paraphernalia like wooden horses etc.,)
should be installed for six months at Yerraipalli and for the remaining six
months at Gangulakunta for worship.  It is the contention of the decree holders
that the consent decree granted equal rights to the plaintiffs and the
defendants and that the defendants are as much entitled as plaintiffs are to
implement the consent decree.  I may point out that clause-2 of the consent
decree conferred equal powers upon the plaintiffs-judgment debtors and
defendants-decree holders to perform pooja, appoint trustees, supervise daily
rituals and maintain accounts apart from rotating idols once in six months
between the two villages. The contention of the learned counsel for the judgment
debtors that the decree can be executed only by the judgment debtors and not by
the decree holders, therefore, is not sustainable.

46.     The next contention of the judgment debtors is that the idols and
paraphernalia have been with the decree holders and not with the judgment
debtors so much so the decree holders cannot seek for the execution of the
decree. My attention was drawn to clause-1 of the consent decree. Clause-1 reads
that the defendants-decree holders were performing pooja and were meeting the
expenditure as on the date of the decree.  It is the contention of the learned
counsel for the judgment debtors that when the defendants/decree holders were
performing pooja, it is sine quo non that the idols were with the defendants,
lest pooja should not have been possible without the idols.  It is the
contention of the learned counsel for the judgment debtors that as the pooja
articles remained with the decree holders, the decree holders cannot seek for
the possession of the idols and paraphernalia and that the execution petition is
not maintainable.  On the other hand, the learned counsel for the
defendants/decree holders contends that after the consent decree, the idols and
paraphernalia were rotated between the plaintiffs and the defendants from time
to time till the plaintiffs refused to exchange the paraphernalia in 1999
necessitating the defendants to file the present executing petition.

47.     A question of fact arose between the rival contentions.  The decree
holders indeed examined the first decree holder while the judgment debtors
examined third judgment debtor in support of their respective cases.  The first
and third petitioners in the execution petition deposed in support of their
respective claims.
I am afraid that the evidence of both sides is merely an oath against oath. The
oral evidence of neither side is worthy of preference to the evidence of the
other side.  The primary onus in this petition lies on the decree holders to
establish that the judgment debtors violated the decree and that the decree
holders are not entitled to execute the same.  The learned counsel for the
judgment debtors contends that the judgment debtors upon whom the initial burden
lies failed to prove that the judgment debtors violated the terms of the decree
and that the judgment debtors, consequently, are not entitled to seek for the
execution of the decree.  It is further contended by the judgment debtors that
the idols and paraphernalia are not with the judgment debtors and that it is
impossible for the judgment debtors to return the same, as the E.P. schedule
items are not in possession of the judgment debtors.  Inter lia, it is submitted
that over a period of time, the plaintiffs and the defendants set up their own
idols and paraphernalia, so much so, neither the judgment debtors nor the decree
holders looked at the other side to receive the idols for a period of six months
in an year, that each side has its newly procured idols and paraphernalia round
the year and that the execution petition was filed only with the political
vengeance.

48.     The learned counsel for the judgment debtors contended that the claim of
the decree holders that the judgment debtors did not part with the idols
including the deity from April 1999 had not been proved.
He further pointed out that PW.1 did not even state that ` 2,000/- was paid by
the judgment debtors to the decree holders for continuous operation of the
decree.  As rightly submitted by the learned counsel for the judgment debtors,
there is no evidence that the articles and the idols are with the judgment
debtors.  Equally true is the fact that there is no evidence that the judgment
debtors paid ` 2,000/- to the decree holders as ordained through clause-1 of the
consent decree.  The learned counsel for the judgment debtors, however,
contended that as the controversy between Yerraipalli and Gangulakunta is
bitter, Gangulakunta people of Kapadam sect would have raised hue and cry, if
the judgment debtors did not comply with the terms of the compromise decree.

49.     In fact, Gangulakunta villagers filed execution petition contending that
the judgment debtors violated the terms and conditions of the consent decree.
However, it is the case of the decree holders that the violation occurred in
1999.  The question of the decree holders complaining earlier, therefore, did
not arise.
I regret my inability to agree with the contention of the learned counsel for
the judgment debtors that Kapadam sect (of Gangulakunta) would have approached
the court long ago had the judgment debtors violated the decree.
The question of limitation indeed arises in this connection which shall be
answered under question No.(ii). The main dispute is that the idols and the
articles are with the decree holders themselves and that the decree holders,
therefore, cannot execute the decree.

50.     The learned counsel for the decree holders contended that there was no
proof that the idols had been with the decree holders.  It was recited in
clause-1 of the consent decree that the decree holders were performing pooja
till the date of the decree.  I, therefore, agree with the contention of the
learned counsel for the judgment debtors that by the date of the decree on
01.11.1933, the idols were with Kapadam family of Gangulakunta.  What transpired
thereafter and whether the two sects had been rotating the idols and other
paraphernaliac articles is anybody's guess, as there was no evidence in this
context.  The evidence let in by the decree holders is not sufficient to hold
that the idols and the paraphernalia covered by the schedule to the E.P. are
with the judgment debtors and that the judgment debtors are liable to return the
same to the decree holders by way of rotation.

51.     It is the contention of the learned counsel for the judgment debtors that
although the judgment debtors had been performing pooja, it was to the idols
subsequently installed by the villagers and not to the disputed idols.  The
learned counsel for the judgment debtors, however, further contended that the
disputed idols as of 1933 were given a go by long ago and that each village
presently has its own deity and accompanying paraphernalia. This contention once
again has no proof.  However, it is for the decree holders to show that the
judgment debtors violated the conditions of the decree for the execution of the
decree and not other way round.  It may be recalled that the judgment debtors
contended that the decree was never acted upon.  One of the instances cited by
the judgment debtors in proof of this contention is that the villagers did not
appoint two trustees on each side, as directed by clause-2 of the consent
decree.  Indeed, there is no evidence that the decree holders and the judgment
debtors had elected/appointed two trustees each to administer the management of
the temple. I am afraid that the problems encountered leading to the present
execution petition would not have arisen had the decree holders and the judgment
debtors appointed trustees, as directed in the decree.
52.     Sri J. Ugra Narasimha, learned counsel for the decree holders states that
both sides have appointed trustees indeed to manage the affairs of the deity.
However, there is no record in support of this claim.
I agree with the contention of the learned counsel for the judgment debtors that
there was no occasion for either village to appoint trustees in terms of clause-
2 of the consent decree.
53.     The learned counsel for the judgment debtors contended that although the
execution court examined the objections, findings of the execution court were
perverse and that the revision, therefore, is maintainable.  I have already
reached the conclusion with reference to question No.(i) that this revision is
maintainable.

54.     The defence of the judgment debtors that Kamatam sect of Yerraipalii did
not pay ` 2,000/- to Kapadam sect of Gangulakunta and did not take custody of
the idols was sought to be countered by the execution court holding that where
the conflict between the parties was so bitter, the judgment debtors would not
have kept quiet without complying the decree. I am afraid that the execution
court was assuming that the consent decree was acted upon without proper proof.
The contention of the decree holders that the decree was acted upon was not
proved and cannot be accepted as an assumption.  The trial court did not believe
RW.1 on the ground that RW.1 was not aware of the fact.  As already pointed out,
the parties to the execution petition are not parties to the suit. Obviously,
RW.1 (first judgment debtor) could not have been aware what happened in 1933.
The trial court indeed was justified in not placing reliance upon RW.1.  The
trial court, however, considered that there was exchange of the idols without
any proof thereof. The learned counsel for the decree holders contended that if
the decree holders were in possession of the idols, there would have been no
need for the decree holders to institute the execution petition.  I am afraid
that the decree holders are trying to state that the very filing of the
execution petition is proof of the case of the decree holders.  Where the decree
holders failed to prove their case otherwise through cogent evidence, mere
filing of the case does not establish the case of the petition.
I, therefore, consider that there was no evidence to hold that the judgment
debtors violated the terms of the decree and that the decree is executable
against the judgment debtors. Accordingly, question No.(iv) is answered in
favour of the judgment debtors and against the decree holders.
Question No.(ii):
55.     The execution petition was filed in 2000.
The decree was passed in 1933.  The learned counsel for the judgment debtors
contended that the execution of the decree is barred by time and cannot be
executed now. The learned counsel for the decree holders, on the other hand,
contended that the decree was violated in April, 1999 and that the execution
petition, consequently, was laid in 2000.  The execution court considered that
the breach of the terms of the decree occurred in 1999 and that the execution
petition, which was filed within one year thereafter, was perfectly
maintainable.  Article 136 of the Limitation Act deals with the execution of the
decree.  Article 136 of the Limitation Act provides the period of 12 years for
the execution of any decree or order.  The period of 12 years commences from the
date when the decree or order becomes enforceable and that an application for
the enforcement of the execution of a decree granting a perpetual injunction is
not subject to any period of limitation.  In V. Hucheswaran v. M/s. Madras
Hardware Mart15 a final decree was passed in a partition suit. The execution
petition was filed beyond 12 years from the date of the decree. The execution
court dismissed the execution petition. The High Court, however, condoned the
delay in filing the execution petition belatedly and remitted the case to the
execution court.  The Supreme Court held that the condonation of the delay by
the High Court was sustainable. The learned counsel for the decree holders
contends that the question of executing the decree arises when the judgment
debtors violated the same and that as the judgment debtors violated the decree
in 1999, it became necessary for the decree holders to seek for the execution.
The compromise decree recorded by the trial court is, indeed, not a decree for
perpetual injunction. At the same time, it is not as though the decree is
capable of one time performance.
It is an order, which shall be implemented continuously for all future occasions
from the date of the decree.  What is to be executed is the violation of the
decree.
The question of the violation arises when one of the parties to the consent
decree did not abide by the decree.  It is the case of the decree holders that
the judgment debtors violated the terms of the decree with effect from
01.04.1999.  I wholly agree with the contention of the learned counsel for the
decree holders that the period of limitation commences to run from 01.04.1999
and would run for a period of 12 years.  I am constrained to make it clear that
the period of 12 years envisaged by Article 136 of the Limitation Act commences
from the date of violation of the decree and has no reference to the date of the
decree, more particularly so when the decree is not for the recovery of the
money.  In that view of the matter, this execution petition is within time and
cannot be dismissed on the ground that it is barred by limitation.
I answer the question No.(ii) accordingly in favour of the decree holders and
against the judgment debtors.
Conclusion:
56.     It is found that this revision is maintainable u/s.115 CPC and that the
same is not barred by limitation.  It is also found that the decree holders have
locus standi to lay the execution petition.  However, it is found on the
circumstances of the case under question No.(iv) that the execution petition is
not maintainable on facts, since the judgment debtors did not violate the terms
of the consent decree. Consequently, this execution petition cannot be ordered.
The execution court unfortunately went by the assumption that the judgment
debtors violated the terms of the decree and proceeded to order for the
execution of the same.
The approach of the execution court is incorrect and is liable to be set aside.

57.     Accordingly, the Civil Revision Petition is allowed.  The orders in
E.P.No.59 of 2000 in O.S.No.15 of 1933 on the file of the Principal Senior Civil
Judge, Anantapur are hereby set aside.  There shall, however, be no order as to
costs.

________________  
K.G. SHANKAR, J  
Date:   06.01.2012

The petitioner, who is aged about 72 years, states in the affidavit that he was a freedom fighter as he had participated in the freedom struggle against Nizams for liberation of Hyderabad State and Goa from Portuguese. It is stated that at a young age, inspired and attracted by the call given by the freedom fighters, he had participated in the Hyderabad Lwith a consequential direction to the respondents to sanction the freedom fighters' pension under the 'Swatantrata Sainik Samman Pension Scheme, 1980'. when the participation of petitioner in freedom struggle and his fitness into the scheme itself is not in dispute, he cannot be deprived of freedom fighters' pension. It appears, when there were large number of false claims, based on the recommendations made by the Committee headed by Sri Ch.Rajeshwar Rao, the Government of India, as an extra measure, has addressed the State Government and also has prescribed certain guidelines including the age factor, for the purpose of screening genuine claims. But, as held by the Hon'ble Supreme Court in the aforesaid judgment, in exceptional cases where the participation of claimant is abundantly proved, it is not open for the respondents to reject the claim of such claimant merely on the ground that he was below the age of 15 years, so as to deprive such a patriotic person, of pension under the scheme. 12. For the aforesaid reasons, the impugned letter, dated 29th June 2006, addressed by the 2nd respondent in Proceedings No.18649/FF- II/A2/A2/2006, to the 1st respondent, and all other proceedings rejecting the claim of the petitioner for sanction of freedom fighters' pension, are hereby quashed, with a direction to the 2nd respondent to send its recommendations to the 1st respondent within a period of two months from today as per the scheme, without reference to the objection that the petitioner was aged below 15 years at the time of freedom struggle. On receipt of such recommendations from the 2nd respondent, the 1st respondent is directed to forthwith consider the claim of petitioner for grant of pension and pass appropriate orders, as expeditiously as possible, preferably within a period of three months from the date of receipt of recommendations from the 2nd respondent-State Government.


HON'BLE SRI JUSTICE R. SUBHASH REDDY        

WRIT PETITION No.2055 of 2007  

03.01.2012

R. Ramaiah.
The Secretary, Ministry of Home Affairs, Government of India & another.
For the petitioner:     Sri A.K.Jayaprakash Rao, Advocate.
For the Respondent No.1  : Sri Ponnam Ashok Goud, Asst. Solicitor
General.
For Respondent No.2        :       G.P. for Revenue.

?  CITATIONS:  (2010) 8 SCC 796 C/15

ORDER :
        In this writ petition, the petitioner has questioned the
proceedings, dated 29.06.2006, issued by the 2nd respondent, in Letter
No.1864/FF-II/A2/A2/2006, with a consequential direction to the
respondents to sanction the freedom fighters' pension under the
'Swatantrata Sainik Samman Pension Scheme, 1980'.  
       
2.      The petitioner, who is aged about 72 years, states in the
affidavit that he was a freedom fighter as he had participated in the
freedom struggle against Nizams for liberation of Hyderabad State
and Goa from Portuguese.  It is stated that at a young age, inspired
and attracted by the call given by the freedom fighters, he had
participated in the Hyderabad Liberation struggle and did his best for
liberation of Hyderabad State.
       
3.      During the Silver Jubilee year of independence, a central
scheme for grant of pension to freedom fighters and their eligible
dependants was introduced by the Government of India with effect
from 15th August 1972.  The said scheme was further liberalized and
re-named as 'Swatantrata Sainik Samman Pension Scheme, 1980' and  
is made effective from 1st August 1980.  As per the said scheme, all
the persons who had participated in the freedom movement in some
way or the other, are not eligible for pension, but only certain
categories of freedom fighters, who fit into the criteria notified, are
eligible for grant of pension under the above said scheme.  Petitioner
had been making applications for grant of above said pension from
1997 onwards, and though the recommendations are in his favour for
grant of pension, he is deprived of the pension only on the ground that
he was below 15 years of age at the time of freedom struggle, as such,
as per the guidelines, his case was not considered.
       
4.      When the petitioner has submitted his representation, inquiries
were conducted and the Collector and District Magistrate, Hyderabad
District, has addressed a letter, dated 4th December 2002 in letter
No.D5/1520/1999, to the Secretary to Government, Revenue (FF.II)
Department.  In the aforesaid letter, it is stated that though the
petitioner was aged below 15 years, as he was inspired by patriotism
and Nationalism, jumped into the freedom struggle and risked his life
and he was also presented a banner as a best Cadet Corp on 27th
January 1958 by Late Sri Pandit Jawaharlal Nehru, Former Prime
Minister of India.  In the aforesaid letter, it is also stated that on the
occasion of Golden Jubilee Celebrations of Hyderabad liberation, held
on 17th September 1998, Sri L.K.Adwani, the Hon'ble Home Minister,
Government of India, has honoured the petitioner as a patriot and
freedom fighter and presented him a memento with a citation in his
honour as a recognition of his active participation in Hyderabad
Liberation struggle.  While stating that the petitioner has participated
in the freedom struggle against the Nizam's Feudal during the period
from 15th August 1947 to September 1948 and also participated in
Goa Liberation Struggle in 1955, recommended for grant of pension
by relaxing the age restriction.  In this writ petition, it is the case of
the petitioner that there is no such restriction of age in the scheme, but
in view of the guidelines issued by the respondents, though there is an
overwhelming evidence in support of his participation in freedom
struggle for liberation of Hyderabad State and Goa from Portuguese,
he is deprived of pension on untenable grounds.
       
5.      Respondents have filed separate counter affidavits.  In the
counter affidavit filed by the 1st respondent, while giving the salient
features of the scheme in detail and denying the allegations of the
petitioner, it is categorically stated that the Central scheme per se does
not prescribe any minimum age limit for being eligible for grant of
Samman Pension.  However, it is unlikely that any person, who was a
minor at relevant time, would have been imprisoned or faced with a
warrant of arrest.  Therefore, consideration of the age of applicant is
implicit in the conditions of eligibility prescribed under the scheme.  It
is stated that in the claims pertaining to the cases recommended by the
Committee headed by Sri Ch. Rajeshwar Rao in 1998, as a matter of
requisite administrative appropriateness, an age of 15 years as in
March 1947, was fixed in June 1998 as one of the conditions to
examine such claims for grant of freedom fighters pension.  It is stated
that the claim of the petitioner would be considered in the light of the
aforesaid condition, and decision would be taken.
6.      In the counter affidavit filed by the 2nd respondent, while
referring to the report of the Collector, Hyderabad District, without
disputing the participation of petitioner in the freedom struggle, it is
stated that the claim of the petitioner is rejected for sanction of
freedom fighters' pension, on the ground that he had not attained the
age of 15 years in March 1947.

7.      Heard learned counsel for petitioner Sri A.K.Jayaprakash Rao,
Sri Ponnam Ashok Goud, Assistant Solicitor General appearing for
the 1st respondent and the learned Government Pleader for Revenue,
appearing for the 2nd respondent.

8.      It is contended by Sri A.K.Jayaprakash Rao, learned counsel for
petitioner that the petitioner has participated in the freedom struggle
for liberation of Hyderabad and also Goa liberation movement from
Portuguese, as such, he is entitled for grant of freedom fighters'
pension.  It is submitted that in the absence of any restriction on age in
the scheme notified by the Government, it is not open for the
respondents to reject the claim of petitioner without recommending it
to the Central Government merely on the ground that he was below
the age of 15 years in March 1947.  The learned counsel, in support of
his argument, has placed reliance on a judgment of Supreme Court in
the case of State of Orissa Vs. Choudhuri Nayak .
       
9.      On the other hand, it is submitted by the learned Assistant
Solicitor General and the learned Government Pleader for Revenue,
appearing for respondents that in view of large number of false
claims, certain guidelines are fixed for grant of freedom fighters'
pension, and in that view of the matter, though there is evidence to
show that the petitioner has participated in the freedom struggle, his
claim is rejected as he was below 15 years of age in March 1947.

10.     Having heard the learned counsel for the parties, I have also
perused the salient features of the scheme.  Initially, the scheme for
grant of freedom fighters' pension was introduced in the year 1972 i.e.
in the Silver Jubilee year of independence, and subsequently, a
liberalized pension scheme is introduced in 1990, which is called as
'Swatantrata Sainik Samman Pension Scheme, 1980'.  In the said
scheme, there is no restriction as such, with regard to the minimum
age for grant of freedom fighters' pension.  It appears, when there
were certain complaints with regard to false claims, against the cases
recommended by Sri Ch.Rajeshwar Rao Committee, the Committee    
which was constituted for scrutinizing the applications, it was decided
in 1998 to get the genuineness of all the cases verified by the State
Government.  For the purpose of screening the false claims, the
1st respondent-Central Government appears to have instructed the
State Governments to insist for production of certificates to show that
the claimants were not below the age of 15 years at the time of
Hyderabad Liberation Movement.  A copy of such letter addressed by
the Government of India is also placed on record and I have perused
the same.  In this case, from the proceedings of the District Collector,
Hyderabad and the earlier recommendations made by the 2nd
respondent-Government in Letter No.371/83/FF.II-A(1)/2003-1, dated
19th May 2004, referring to various documentary evidence, it is clear
that the 2nd respondent-Government has also recommended the case of  
petitioner for grant of pension, stating that such claim is genuine one.
When the claim was again referred for re-verification, only on the
ground that the petitioner was aged below 15 years in March 1947, his
claim is rejected.

11.     In the judgment relied on by the learned counsel for petitioner
in the case of State of Orissa (1 supra), the Hon'ble Supreme Court,
while referring to the earlier case law on the subject in the case of
Mukund Lal Bhandari Vs. Union of India (1993 Supp (3) SCC 2),
while referring to the object of the freedom fighters' pension scheme,
reiterated the criteria to be adopted to consider the claims under the
scheme.  In the aforesaid judgment, it is categorically held that the
criteria for grant of pension under the scheme is not age, but
participation in the freedom struggle.  The freedom fighters' pension
can, therefore, in exceptional cases, be granted even to those who
were minors at the time of struggle, if evidence clearly showed that
they had participated in the freedom struggle and fulfilled the
recommendations of the scheme.  The aforesaid judgment of the
Hon'ble Supreme Court fully supports the case of the petitioner
having regard to the facts and circumstances of the present case.  In
the present case also, it is to be noticed that the participation of
petitioner in the Hyderabad Liberation Movement is not at all in
dispute.  When reports were called for on the application filed by the
petitioner, in clear terms, the Collector, Hyderabad District in Letter
No.D5/1520/1999, dated 4th December 2002, addressed to the
Government, had clearly stated that the petitioner is eligible for grant
of freedom fighters' pension, and hence, recommended his case for
grant of such pension.  Even on earlier occasion, when the matter was
considered by the State Government having regard to the
recommendations made by the District Collector, the State
Government has also made a specific recommendation to the 1st
respondent-Union of India that the petitioner is entitled for pension
and that the claim of the petitioner is genuine.  In that view of the
matter, when the participation of petitioner in freedom struggle and
his fitness into the scheme itself is not in dispute, he cannot be
deprived of freedom fighters' pension.  It appears, when there were
large number of false claims, based on the recommendations made by
the Committee headed by Sri Ch.Rajeshwar Rao, the Government of  
India, as an extra measure, has addressed the State Government and
also has prescribed certain guidelines including the age factor, for the
purpose of screening genuine claims.  But, as held by the Hon'ble
Supreme Court in the aforesaid judgment, in exceptional cases where
the participation of claimant is abundantly proved, it is not open for
the respondents to reject the claim of such claimant merely on the
ground that he was below the age of 15 years, so as to deprive such a
patriotic person, of pension under the scheme.

12.     For the aforesaid reasons, the impugned letter, dated 29th June
2006, addressed by the 2nd respondent in Proceedings No.18649/FF-
II/A2/A2/2006, to the 1st respondent, and all other proceedings
rejecting the claim of the petitioner for sanction of freedom fighters'
pension, are hereby quashed, with a direction to the 2nd respondent to
send its recommendations to the 1st respondent within a period of two
months from today as per the scheme, without reference to the
objection that the petitioner was aged below 15 years at the time of
freedom struggle.  On receipt of such recommendations from the 2nd
respondent, the 1st respondent is directed to forthwith consider the
claim of petitioner for grant of pension and pass appropriate orders,
as expeditiously as possible, preferably within a period of three
months from the date of receipt of recommendations from the 2nd
respondent-State Government.

13.     Writ petition is allowed with the directions as indicated above.
No order as to costs.
______________________  
R. SUBHASH REDDY, J    
3rd January 2012

1. "Whether the Appellate Tribunal is justified in holding that development of software amounts to manufacture of an article or goods and the export of such goods secure the benefit of deduction to the assessee u/s.80HHC of the I.T. Act ? 2. Whether the Appellate Tribunal is justified in not holding that insertion of Sec. 80HHE of the I.T. Act w.e.f. 1.4.1991 providing for grant of deduction on software development only w.e.f. 1.4.1991 militates against grant of such deduction u/s.80HHC for the anterior period ?"


A.P.HIGH COURT

THE HON'BLE THE CHIEF JUSTICE SHRI MADAN B. LOKUR
AND HON'BLE SRI JUSTICE SANJAY KUMAR
         
ITTA No.42 of 1999

2-1-2012

The Commissioner of Income Tax, A.P.-I,Hyderabad

M/s. Ajay Automation (P) Ltd., Hyderabad

COUNSEL FOR PETITIONER: Shri S.R. Ashok, Senior Standing    
Counsel for Income Tax

COUNSEL FOR RESPONDENT:    -      

JUDGMENT:  (per the Hon'ble the Chief Justice Shri Madan B. Lokur)

        This appeal under Section 260A of the Income Tax Act, 1961 (for short,
'the Act') has been admitted on the following two substantial questions of law:-
1. "Whether the Appellate Tribunal is justified in holding that development of
software amounts to manufacture of an article or goods and the export of such
goods secure the benefit of deduction to the assessee u/s.80HHC of the I.T. Act
?
2. Whether the Appellate Tribunal is justified in not holding that insertion of
Sec. 80HHE of the I.T. Act w.e.f. 1.4.1991 providing for grant of deduction on
software development only w.e.f. 1.4.1991 militates against grant of such
deduction u/s.80HHC for the anterior period ?"

3.      The assessee carries on the business of developing computer software.  For
the relevant assessment year 1989-90, it claimed a deduction to the extent of
Rs.21.55 crores under Section 80HHC of the Act.
4.      The assessing officer accepted the claim made by the assessee, but the
Commissioner of Income Tax, exercising powers under Section 263 of the Act,
revised the order of the assessing officer on the ground that computer software
recorded on magnetic tapes cannot be considered as "goods" for the purposes of
Section 80HHC of the Act.  The Commissioner also took note of the fact that
Section 80HHE was introduced in the Income Tax Act with effect from 1.4.1991 and
that Section specifically intended to cover exports of computer software.
5.      The Commissioner was, therefore, of the view that first of all computer
software recorded on magnetic tapes was not "goods" within the meaning of
Section 80HHC of the Act and in any event, in view of the introduction of
Section 80HHE in the Act, the view that he had taken that computer software
recorded in magnetic tapes was not covered under Section 80HHC of the Act was
fortified.  Accordingly, the order of the assessing officer was set aside.
6.      Feeling aggrieved, the assessee preferred an appeal before the Income Tax
Appellate Tribunal (for short, 'the Tribunal') and the appeal was allowed.  This
has led to the filing of the present appeal under Section 260A of the Act.
7.      For the sake of convenience, Section 80HHC(1) of the Act, which is
relevant, is extracted below:-
        "80HHC (1). Where an assessee, being an Indian company or a person (other
than a company) resident in India, is engaged in the business of export out of
India of any goods or merchandise to which this Section applies, there shall, in
accordance with and subject to the provisions of this Section, be allowed, in
computing the total income of the assessee, a deduction to the extent of
profits, referred to in sub-section (1B), derived by the assessee from the
export of such goods or merchandise:

           Provided that ... ... ..."

8.      The first question that arises in this regard is whether the computer
software recorded on magnetic tapes is goods or not?
9.      Learned counsel for the Revenue very frankly states that in view of the
decision of the Supreme Court in Tata Consultancy Services v. State of A.P.1 ,
it must now be held that computer software, if it is recorded on magnetic tapes
or otherwise and is marketable, it becomes "goods" susceptible to sales tax.
Learned Counsel for the Revenue also frankly states that in view of the decision
of the Supreme Court in Bharat Sanchar Nigam Ltd. V. Union of India2, the
question is no longer res integra.  It is submitted that marketable computer
software is goods because of its utility, capability of being bought and sold
and its capability of being transmitted, transferred, delivered, stored and
possessed.
10.     On a reading of the aforesaid two judgments of the Supreme Court, it is
frankly stated by learned counsel for the Revenue that marketable computer
software has the attributes of goods for the purposes of Sales Tax and also for
the purposes of the Income Tax Act, particularly Section 80HHC thereof.
11.     This view has also been taken by the Madras High Court in Commissioner of
Income Tax v. Superstar Music and another3.
12.     We see no error in the concession given by learned counsel for the Revenue
inasmuch as it is quite clear that for the purposes of Section 80HHC (1) of the
Act, computer software recorded on magnetic tapes or floppies, discs or CDs
etc., would amount to goods or merchandise.
13.     Under these circumstances, the first substantial question of law raised in
this appeal must be answered in the affirmative, in favour of the assessee and
against the Revenue.
14.     Insofar as the insertion of Section 80HHE of the Act is concerned, the
relevant provision is Section 80HHE(1), which reads as follows:-
80HHE. (1) Where an assessee, being an Indian company or a person (other than a
company) resident in India, is engaged in the business of ,--
(i) export out of India of computer software or its transmission from India to a
place outside India by any means;
(ii) providing technical services outside India in connection with the
development or production of computer software,
there shall, in accordance with and subject to the provisions of this section,
be allowed, in computing the total income of the assessee, a deduction to the
extent of the profits, referred to in sub-section (1B), derived by the assessee
from such business:

Provided that ... ... ..."

15.     It is quite clear that on a comparison of the provisions of Section 80HHC
(1) and Section 80HHE (1) of the Act, there is no substantial or material
difference.
16.     At this stage, it is necessary to note that a similar provision was
introduced in the Income Tax Act with regard to export or transfer of film
software under Section 80HHF of the Act.  While interpreting Section 80HHF, the
Madras High Court relied upon an earlier decision of the Bombay High Court in
Abdulgafar A. Nadiadwala v. Assistant Commissioner of Income Tax4  and held that
despite a specific provision having been introduced in the Income Tax Act
(Section 80HHF) for the purposes of export or transfer of film software, that
did not exclude the provisions of Section 80HHC of the Act prior to the
introduction of Section 80HHF.  All that transpired was that so far as the
assessee is concerned, it could specifically claim a deduction under Section
80HHF of the Act instead of having to fall back on the general provision of
Section 80HHC thereof.
17.     In our opinion, this rationale would apply to the interpretation of
Section 80HHE of the Act.  Merely because Section 80HHE specifically deals with
the export of computer software with effect from 1.4.1991, it does not mean that
the operation of Section 80HHC of the Act is excluded prior to 1.4.1991.  The
provisions of Section 80HHC(1) are more general in nature while Section 80HHE(1)
of the Act are more specific, but since the latter provisions operate with
effect from 1.4.1991 the provisions of the former would continue to operate
until then.
18.     As mentioned above, we are concerned with the assessment year 1989-90.
Since the assessment year we are concerned with is prior to introduction of
Section 80HHE of the Act, we are of the opinion that the Tribunal was right in
coming to the conclusion that the assessee was entitled to the benefit of
Section 80HHC of the Act for the purposes of claiming a deduction for export of
computer software.
19.     Under the circumstances, the second substantial question of law is also
answered in the affirmative, in favour of the assessee and against the Revenue.
20.     The appeal is disposed of on the above terms.



__________________  
MADAN B. LOKUR, CJ    


_______________  
   SANJAY KUMAR, J  
2-1-2012

SPECIFIC RELIEF ACT – Whether court has power to extend the time for more than 30 days for payment of the balance sale consideration after decree under sec.28(1) of Specific performance Act – yes . Whether sec.148 of civil procedure code applies in this situation – No. Whether the delay of 4 years asking for extention of time for depositing the amount is mainatainable – No.


HON'BLE SRI JUSTICE C.V. NAGARJUNA REDDY        

C.R.P.No.4825 of 2011

25-1-2012

Ali Jaffar s/o. R.A. Mahmood

V. Venkat Reddy s/o. Narsimha Reddy  

 Counsel for petitioner : Sri D.V. Srinivasa Rao

 Counsel for respondent : --

? CASES REFERRED:    
1. AIR 2010 Madras 129
2. (1997) 9 SCC 217
3. AIR 1980 S.C. 512
4.  (1994) 2 SCC 642
5.  (1997) 3 SCC 1
6.  (1996) 5 SCC 589
7.  (2003) 10 SCC 390
8.  (1995) 5 SCC 115
9. AIR 1999 S.C. 918
10. (1997) 3 SCC 1
11. AIR 1952 Madras 389
12.  (2011) 9 SCC 147
ORDER:
        The decree-holder in O.S.No.11/2006 filed this Civil Revision Petition
assailing order dated 6-9-2011 in I.A.No.5/2011 in O.S.No.11/2006 on the file of
the learned XI Junior Civil Judge, City Civil Court, Secunderabad (for brevity
"the lower Court").
        The facts, in nutshell, are that the petitioner filed the above mentioned
suit for specific performance of agreement of sale against the respondent.
After the respondent was set exparte, an exparte decree was passed by the lower
court on 28-11-2006.  One of the conditions stipulated therein was that the
petitioner shall deposit the balance sale consideration of Rs.16,640/- into the
Court within one month from the date of decree.  The petitioner did not deposit
the balance sale consideration as per the said condition.  He has, however,
filed I.A.No.5/2011 for condoning the delay of 1417 days and extension of time
for deposit of balance sale consideration.
        In support of his application, the petitioner has averred that he has left
to his native village Amaravathi in Chandapur District, Maharashtra and that his
Advocate was not aware of his whereabouts, due to which he could not comply with
the decretal condition regarding deposit of the balance sale consideration.  The
petitioner further averred that he was under the impression that the suit was
pending and his Advocate was looking after the suit proceedings and that
recently he came back to Hyderabad and came to know about the passing of the
exparte decree through his counsel.
        The respondent resisted the petitioner's application by filing a counter-
affidavit wherein he has questioned the bonafides of the petitioner in filing
the application with the huge delay of 1417 days and prayed for dismissal of the
application.
        The lower Court has dismissed the application of the petitioner mainly on
two grounds, namely, that the petitioner remained quiet for about four years
after passing the exparte decree and that his averments relating to his leaving
for his native place and staying there all those years, were not supported by
any evidence.  The lower Court further held that the petitioner failed to give
satisfactory explanation for the inordinate delay of 1417 days in filing the
application and that having obtained the decree for specific performance, it is
the duty of the petitioner to pursue the case with diligence.  The second ground
on which the lower Court declined the relief is that as per the amended
provisions of Section 148 of the Code of Civil Procedure, 1908 (for short "the
Code"), the Court cannot enlarge the time beyond 30 days.
        At the hearing, Sri D.V. Srinivasa Rao, learned counsel for the
petitioner, submitted that the lower Court has committed a serious
jurisdictional error in dismissing the petitioner's application for extension of
time for depositing the balance sale consideration.  He submitted that the lower
Court is vested with the power to extend time for payment of the balance sale
consideration under Section 28(1) of the Specific Relief Act, 1963 (for short
"the Act") and that therefore the lower Court has misdirected itself in holding
that it has no power to extend the time beyond 30 days as stipulated under
Section 148 of the Code.  In support of his submission that the petitioner is
entitled to extension of time, the learned counsel has placed reliance on the
Judgment of Madras High Court in B.V. Gururaj Vs. M.R. Rathindran1 and also on
various Judgements of the Supreme Court, which found reference in the said
Judgment.
        I have carefully considered the submissions of the learned counsel for the
petitioner and perused the record.
        As per the condition contained in the decree, the petitioner is liable to
deposit the balance sale consideration within one month.  Admittedly, the
petitioner neither complied with the said condition nor filed an application
seeking extension of time before the expiry of the time stipulated by the lower
Court.  The petitioner filed an application seeking condonation of delay of 1417
days, which is equivalent to almost four years.
Let me first deal with the conclusion drawn by the lower Court that it has no
power to extend the period beyond 30 days for depositing the balance sale
consideration, in view of Section 148 of the Code, as amended by Act 46/1999
w.e.f. 1-7-2002.
Section 148 of the Code, after its amendment, reads as under :
"Enlargement of time: Where any period is fixed or granted by the Court for the
doing of any act prescribed or allowed by this Code, the Court may, in its
discretion, from time to time, enlarge such period not exceeding thirty days in
total, even though the period originally fixed or granted may have expired."

Section 28(1) of the Act, which is relevant for the present purpose, is as
follows:
        "Where in any suit a decree for specific performance of a contract for the
sale or lease of immovable property has been made and the purchaser or lessee
does not, within the period allowed by the decree or such further period as the
court may allow, pay the purchase money or other sum which the court has ordered
him to pay, the vendor or lessor may apply in the same suit in which the decree
is made, to have the contract rescinded and on such application the court may,
by order, rescind the contract either so far as regards the party in default or
altogether, as the justice of the case may require."

While dealing with the jurisdiction of the Court to deal with the case after
grant of decree for specific performance, the Supreme Court, in Sardar Mohan
Singh Vs. Mangilal2, at para-4, held as under:
        "From the language of sub-section (1) of Section 28, it could be seen that
the court does not lose its jurisdiction after the grant of the decree for
specific performance nor it becomes functus officio.  The very fact that Section
28 itself gives power to grant order of rescission of the decree would indicate
that till the sale deed is executed in execution of the decree, the trial court
retains its power and jurisdiction to deal with the decree of specific
performance.  It would also be clear that the court has power to enlarge the
time in favour of the judgment-debtor to pay the amount or to perform the
conditions mentioned in the decree for specific performance, in spite of an
application for rescission of the decree having been filed by the judgment-
debtor and rejected.  In other words, the court has the discretion to extend
time for compliance of the conditional decree as mentioned in the decree for
specific performance....."

In K. Kalpana Saraswathi Vs. P.S.S. Somasundaram Chettiar3, the Supreme Court  
held that under Section 28 of the Act, it is perfectly open for the trial Court
to extend time for deposit and that in appropriate cases, such extension can be
made even at the appellate stage by the Supreme Court.  This view was reiterated
in Ramankutty Gutan Vs. Avara4.
        The ratio that could be culled out from the above noted Judgments of the
Apex Court is that the power to extend the time for payment of balance sale
consideration is vested in the Court under Section 28 of the Act.  A fortiori,
an application filed for extension of time is traceable to the said provision.
The language of Section 148 of the Code would reveal that it enables the Court
to enlarge the period prescribed or allowed by the Code for doing any act.  In
my opinion, in the present case, the obligation of the petitioner to pay the
balance sale consideration arose under the decree.  The petitioner is not
required to do any act within the time stipulated by the Code.  Therefore, ex
facie, Section 148 of the Code is not attracted to an application filed by a
decree-holder for extension of time for deposit of balance consideration
stipulated in a decree for specific performance of agreement of sale.  As
Section 28 of the Act being the substantive provision, any such application for
extension of time for deposit of balance sale consideration is traceable to the
said provision.  It, therefore, necessarily follows that the maximum time limit
of 30 days stipulated under Section 148 of the Act does not bar the Court from
extending time beyond the period of 30 days.  If the Court is satisfied that the
applicant has made out a case for enlargement of time, it can enlarge the time
in exercise of its power under Section 28 of the Act, regardless of the
provisions of Section 148 of the Code.  As such the finding of the lower Court
that it has no power to extend the time beyond 30 days for deposit of balance
sale consideration, in view of Section 148 of the Code, cannot be sustained.
        The crucial question which remains to be considered in the present case is
whether the petitioner is entitled for extension of time for depositing the
balance sale consideration?
It is trite that the relief of specific performance is purely a discretionary
relief and the Court is not bound to grant the same merely because there was a
valid agreement of sale.  It is an equitable remedy which lies purely in the
discretion of the Court, which of course, has to be exercised according to the
settled principles of law (See: K.S. Vidyanadam Vs. Vairavan5, Lourdu Mari David
Vs. Louis Chinnaya Arogiaswamy6 and Manjunath Anandappa Vs. Tammanasa7).      
In N.P. Thirugnanam (Dead) by L.Rs. Vs. Dr. R. Jagan Mohan Rao8 the Supreme  
Court held that the Court must take into consideration the conduct of the
plaintiff prior and subsequent to the filing of the suit along with other
attending circumstances.
In V.S. Palanichamy Chettiar Firm Vs. C. Alagappan9, the Supreme Court has dealt
with a case where execution petitions filed by the decree-holder were dismissed
by the trial court.  In the revision petitions filed by the decree-holders
before the Madras High Court, the decree-holders filed separate applications
seeking extension of time granted under the decrees by the trial court for
deposit of balance sale consideration.  The High Court has remitted the cases to
the executing Court with a direction to treat the said applications as
Interlocutory Applications in the execution proceedings and to dispose them off
in accordance with law.  Questioning the said remand order, the judgment-debtor
approached the Supreme Court.  The Supreme Court, after a thorough discussion of
the case law on Section 28 of the Act, allowed the appeals filed by the
judgment-debtor by holding that the decree-holders failed to assign any reason
whatsoever in not depositing the balance sale consideration within the
stipulated time under the decrees.  The Supreme Court has referred to Article 54
of the Limitation Act, 1963, which prescribed three years period for filing the
suit for specific performance of agreement of sale from the date of agreement or
when the cause of action arose and observed that merely because the suit is
filed within the prescribed period of limitation, it does not absolve the vendee
from showing that he was ready and willing to perform his part of the agreement
of sale and if there was non-performance, the same was on account of any
obstacle created by the vendor. It was further observed that the provisions to
grant specific performance of an agreement are quite stringent and that
equitable considerations come into play.  The Supreme Court further held that
the Court has to see all the attendant circumstances including, if the vendee
has conducted himself in a reasonable manner under the contract of sale.
Drawing the same analogy, the Supreme Court has posed a question as to whether a
Court can as a matter of course allow extension of time for making payment of
balance amount of consideration in terms of a decree after five years of its
passing by the trial court and three years of its confirmation by the appellate
Court?  While answering this issue in the negative, it was observed :
        "....It is not the case of the respondent-decree-holder that on account of
any fault on the part of the vendor-judgment-debtor, the amount could not be
deposited as per the decree.  That being the position, if now time is granted,
that would be going beyond the period of limitation prescribed for filing of the
suit for specific performance of the agreement though this provision may not be
strictly applicable.  It is nevertheless an important circumstance to be
considered by the Court.  That apart, no explanation whatsoever is coming from
the decree-holder-respondents as to why they did not pay the balance amount of
consideration as per the decree except what the High Court itself thought fit to
comment which is certainly not borne out from the record.  Equity demands that
discretion be not exercised in favour of the decree-holder-respondents and no
extension of time be granted to them to comply with the decree."

        In the present case, the pleadings of the petitioner, as noted
hereinbefore, would disclose that except making an averment in the affidavit
that he has left for his native village in Maharashtra and that he was not even
aware of the passing of the decree, no effort is made by him to show that he was
diligent in pursuing the case.  While the petitioner's plea in this regard
remained wholly unsubstantiated (the petitioner has not even examined himself as
a witness), even accepting the same as it is, it discloses utter lack of
diligence on his part in pursuing his case further in pursuance of the exparte
decree.  Even going by his version, having entrusted his case to his counsel in
the year 2006, the petitioner did not bother to verify the stage of the case for
nearly four years.  As observed by the Supreme Court in V.S. Palanichamy
Chettiar Firm (9-supra), while the limitation for filing a suit for specific
performance itself is three years, even in cases where a suit is filed within
the limitation period, still the Court will not grant the decree for specific
performance unless the plaintiff satisfies the Court that he was always ready
and willing to perform his part of the contract.  The same considerations were
held to be applicable even while considering an application for extension of
time for deposit of the balance sale consideration.  Not even an attempt is made
by the petitioner to state that he was ready and willing to comply with the
condition imposed by the Court below in the exparte decree.  No person, who is
interested in seeking specific performance of a contract, is expected to display
such a lethargic and laidback approach as the petitioner has displayed by
delightfully forgetting his case for nearly four years.
        In K.S. Vidyanadam Vs. Vairavan10, the Supreme Court held that in cases of
urban properties in India, it is well known that the prices are going up sharply
over the last few decades particularly after 1973.  The Supreme Court while
disagreeing with the view of the Madras High Court in S.V. Sankaralinga Nadar
Vs. P.T.S. Ramaswami Nadar11, that mere rise in price is no ground for denying
relief of specific performance, held that the Court cannot be oblivious of the
reality of the constant and continuous rise in the value of urban properties.
This view is reiterated in Citadel Fine Pharmaceuticals Vs. Ramaniyam Real
Estates Pvt.Ltd.12.
        The subject matter of the suit is situated in Lalaguda, which is a part of
the city of Hyderabad.  The agreement of sale is of the year 1985.  The
petitioner filed the suit 21 years after entering into the agreement of sale.
The whole face of the city has undergone a radical change during the last decade
leading to huge increase in land prices.  It will be nothing short of windfall
for the petitioner if his exparte decree is allowed to be executed at this
length of time.  Conversely, serious prejudice will be caused to the interests
of the respondent as he will be compelled to lose his valuable property for a
pittance.  If any relief is granted to the petitioner, that would amount to
placing a premium on his indolence and total lack of diligence and lethargy.
The lower Court is therefore completely justified in dismissing the petitioner's
application for extension of time for deposit of balance sale consideration, on
the ground of inordinate delay.
        The Judgment in B.V. Gururaj (1-supra), on which reliance is placed by the
learned counsel for the petitioner, does not in any manner advance the
petitioner's case.  That was a case where the decree-holder was all through
diligent in filing applications for extension of time.  Moreover, the
application filed by the judgment-debtor under Section 28(1) of the Act for
rescission of the contract was dismissed and taking into consideration the facts
and circumstances of the case and the conduct of the parties, the Madras High
Court has extended the time.  Hence, the said Judgment is of no help to the
petitioner.
        On the premises as above, the Civil Revision Petition is dismissed.

________________________  
Justice C.V. Nagarjuna Reddy
Date : 25-1-2012

Thursday, April 26, 2012

INTELLECTUAL PROPERTY APPELLATE BOARD The appellant opposed the registration of the mark LIVOSIN claiming user from 4-4-1974under No 478108. This was advertised before acceptance on 16.10.1994, in class 5 for medicinal preparation. The opposition was disallowed. 2. The appellants are the proprietors of the mark LIVOGEN as of 14-12-1942. They claim that the impugned mark is identical and deceptively similar to theirs. According to them the adoption of the mark was dishonest and it should not be allowed to be registered. 14. Almost all the decisions submitted by the learned Counsel for the respondent related to medicinal preparations. The Court had considered the marks to see if there is likelihood of confusion. For liver preparation there are many medicinal products which start with the drug “LIV” and so on and therefore as a medicinal preparation it is also common for the trade to have a common suffix or prefix. The differing suffixes ‘SIN’ or ‘GEN’ are not similar and the Registrar was of the opinion that the impression created on the whole by the two marks would not cause confusion. We do not think that this decision is arbitrary or totally unacceptable warranting interference. We are also of the view that the two marks are not likely to cause confusion or deception.


INTELLECTUAL PROPERTY APPELLATE BOARD
Guna Complex Annexe-I, 2nd Floor, 443, Anna Salai, Teynampet, Chennai-600018

CIRCUIT SITTING AT KOLKATA

M.P. No.94/2007 in TA/7/2005/TM/KOL
AND
TA/7/2005/TM/KOL
(TMA/11/1997)

FRIDAY, THIS THE 20th DAY OF APRIL, 2012


Hon’ble Smt. Justice Prabha Sridevan                             …   Chairman
Hon’ble Shri V. Ravi                                                               …  Technical Member (Trade Marks)
                                                                                                             

Merck Limited
Shiv Sagar Estate “A”
Worli
Dr. Annie Besant Road
MUMBAI-400018.                                                                       …  Appellant

(substituted by Order dated 20.4.2012 in M.P. No.94/2007)


(By Advocate:  Shri Gautam Chakraborty and R.K. Khanna)

                                                            Vs.


1.         M/s. Jupiter Pharmaceuticals Limited
            25, Eden Hospital Road
            Calcutta-700073.
    

2.         The Registrar of Trade Marks
                       
3.         Deputy Registrar of Trade Marks
             
4.         Assistant Registrar of Trade Marks
            Trade Marks Registry
            Kolkata.                                                                         … Respondents



                                      (By Advocate: Shri H.P. Shukla)


ORDER(No.92/2012)

Hon’ble Smt. Justice Prabha Sridevan:

The appellant opposed the registration of the mark LIVOSIN claiming user from 4-4-1974under No 478108. This was advertised before acceptance on 16.10.1994, in class 5 for medicinal preparation. The opposition was disallowed.

2.         The appellants are the proprietors of the mark LIVOGEN as of 14-12-1942. They claim that the impugned mark is identical and deceptively similar to theirs. According to them the adoption of the mark was dishonest and it should not be allowed to be registered.

3.         The respondent filed its counter statement stating that they have been in the business of manufacture and sale of Ayurvedic preparations for many years and they market products bearing brand names like Glycoseptol, Terex, Livosin etc.

4.         The mark was invented and adopted on 4-4-1974. They have advertised their products extensively. Their mark Livosin has acquired a huge reputation. There are hundreds of marks with the prefix ‘Livo’ and the two marks will never conflict with each other.

5.         The appellant produced evidence to show their sales and promotional expenditure and they contended that the overall effect of the two marks would result in confusion. The respondent also produced evidence to show their sales and advertisement materials and contended that suffix ‘SIN’ and ‘GEN’ will never be confusing. The Registrar disallowed the opposition.

6.         The learned counsel for the appellant submitted that the words “deceptively similar” have been used repeatedly in the Act with an intent; and that the likelihood of causing confusion will not disappear merely because the mark has remained long in the register.

7.         The question of the assignee’s right to be heard had been raised in the proceedings, so the learned counsel for the appellant referred to 2000 RPC 536 - Pharmedica GMBH’S Trade Mark Application.

8.         M.P.No.94/2007 has been filed for amendment of the Memorandum of Appeal in view of the assignment of the trade mark “LIVOGEN” in favour of Merck Ltd. It is opposed by the respondent who has filed the affidavit in opposition stating that once it has been transferred the appellant has nolocus standi as the cause title and interest in respect of the mark stands transferred which has taken place in December, 2000 and the application was made in August 2007, and that it is barred by limitation. 

9.         In 2009 (41) PTC 385 (Del.) – Classic Equipments (P) Ltd. , Petitioner Vs. Johnson Enterprises & Ors., Respondents, the Hon’ble Delhi High Court held that the Registrar cannot go behind the terms of the assignment and he is only required, to satisfy himself about the true construction of the assignment.

10.       In the present case, the respondent does not deny the transfer of rights. According to him, because of the assignment, the appellants herein had lost their right in the mark. But the appellants are bound by law to protect whatever rights they had even after its transfer. As regards the controversy on hand, in the impugned order, the Registrar held that the opponent, namely, the appellant herein had failed to point out any dishonest attempt made on the part of the applicant (the respondent herein) to adopt the impugned mark. The Registrar also found that the respondent was using the mark extensively. The Registrar had looked at both the marks and compared them and found that “LIVOSIN” and “LIVOGEN” are not deceptively similar. From the evidence the Registrar also found that there is no likelihood of deception or confusion. The learned Counsel for the appellant submitted that when the impugned order was passed, the Cadila judgment – (2001) 5 SCC 73 - Cadila Health Care Ltd., Appellants Vs. Cadila Pharmaceuticals Ltd., Respondent was not decided. This made a difference with regard to the stricter approach to be adopted while deciding deceptive similarity of medicinal products as compared to other goods. The learned Counsel also submitted that the definition of “deceptively similar” under Section 2(d) of the Trade and Merchandise Marks Act, 1958 used the phrase “likely to deceive” or “cause confusion”. Therefore, the mere passage of time cannot exclude the possibility of likelihood of confusion. He mainly urged that the matter be remanded back to enable the Registrar to consider the case in the light of the Cadila case(cited supra)

11.       The learned counsel for the respondent objected to the right of the appellant to be heard and referred to Rule 94.  He then referred to the IPAB decision on I-VIT and K-VIT - M.P.No.02/2007 in OA/01/2007/TM/KOL, “Meromer” and “Meronem” - 2007 (34) PTC 469 (DB) (Del.) – Astrazeneca UK Ltd. & Anr., Appellants Vs. ORCHID Chemicals & Pharmaceuticals Ltd., Respondent,“MICROTEL” and “MICRONIX” - 1994 (14) PTC 260 (SC) – J.R. Kapoor, Petitioner Vs. Micronix India, Respondent and submitted in all such matters it was held that the common features must be ignored and the distinctive part should be considered.

12.       It is brought to our notice by the appellant that they have filed an affidavit of H.U. Shenoy, Company Secretary of Merck Ltd. to show that Glaxo India Limited was registered as the proprietor of the trade mark “LIVOGEN” from 1st July, 1968.  It has been renewed from time to time. By the deed of assignment dated 28.12.2000, E. Merc (India) Ltd. whose corporate name has changed to Merck Limited has become the subsequent proprietor. Their case is that appropriate forms have been filed and by communication dated 27.11.2006 the Registrar of Trade Marks had informed the appellant that the necessary entry had been made in the register.
            The following decisions were cited:

(i)         2001 5 SCC 73 – Cadila Health Care Ltd., Appellant Vs. Cadila Pharmaceuticals Ltd., Respondent – The two marks were “Falcigo” and “Falcitab”.  They observed as follows:
“25.     The drugs have a marked difference in the compositions with completely different side effects, the test should be applied strictly as the possibility of harm resulting from any kind of confusion by the consumer can have unpleasant if not disastrous results.  The courts need to be particularly vigilant where the defendant’s drug, of which passing-off is alleged, is meant for curing the same ailment as the plaintiff’s medicine but the compositions are different.  The confusion is more likely in such cases and the incorrect intake of medicine may even result in loss of life or other serious health problems…”

It was submitted that Courts must be particularly vigilant in cases where medicine is concerned since incorrect intake of medicine may result in loss of life. This is the reason why the learned Counsel for the appellant requested us to send the matter back to the Registrar to decide the matter in the light of the Cadila case. 

(ii)        [1963] 2 SCR 484 – Amritdhara Pharmacy Vs. Satyadeo Gupta –
“It was held that the question whether a trade name is likely to deceive or cause confusion by its resemblance to another already registered is a matter of first impression and one for decision in each case and has to be decided by taking an over all view of all the circumstances.  The standard of comparison to be adopted in judging the resemblance is from the point of view of a man of average intelligence and imperfect recollection – It was held further that the two names as a whole should be considered for comparison and not merely the component words thereof separately.”

(iii)       2000 RPC page 536 – Pharmedica GMBH’S Trade Mark Application was relied on to show that the Registrar has powers to substitute an opponent. 

13.       The respondent referred to the order of the IPAB in –

(i)         M.P.No.02/2007 in OA01/2007/TM/KOL – Semit Pharmaceuticals & Chemicals, Appellant Vs. The Deputy Registrar of Trade Marks, Kolkata and another in relation to the mark I-VIT and K-VIT.  Both the marks were used in medicine business and the Board held that there was no likelihood of confusion.

(ii)        They also relied on 2007 (34) PTC 469 (DB) (Del.) – Astrazeneca UL Ltd. & Anr., Appellants Vs. ORCHID Chemicals & Pharmaceuticals Ltd., Respondent where the marks were “Meromer” and “Meronem”. Those were also medicinal preparations and the Court held that the prefix was part of the molecule “Meropenem” and was used by a number of preparations in the market and that there was no phonetic or deceptive similarity. 

(iii)       In 1994 (14) PTC 260 (SC) – J.R. Kapoor, Petitioner Vs. Micronix India, Respondent , the Supreme Court held that “MICROTEL” and “MICRONIX” were totally dissimilar and the word ‘micro’ was a common or general name, descriptive of the products sold.

(iv)       In 1998 3 MLJ 214 – Indo Pharma Pharmaceutical Works Ltd., Appellants Vs. Citadel Fine Pharmaceuticals Ltd., Respondent  “ENERGJEX” and “ENERJASE” were the two marks and the Madras High Court held that the suffix ‘jex’ and ‘jase’ were totally different.

14.       Almost all the decisions submitted by the learned Counsel for the respondent related to medicinal preparations. The Court had considered the marks to see if there is likelihood of confusion. For liver preparation there are many medicinal products which start with the drug “LIV” and so on and therefore as a medicinal preparation it is also common for the trade to have a common suffix or prefix. The differing suffixes ‘SIN’ or ‘GEN’ are not similar and the Registrar was of the opinion that the impression created on the whole by the two marks would not cause confusion. We do not think that this decision is arbitrary or totally unacceptable warranting interference.  We are also of the view that the two marks are not likely to cause confusion or deception.


15.       The appellant has produced the documents to show how the interest has devolved. The Miscellaneous Petition No.94/2007 is allowed.

16.       For all the above reasons, the appeal TA/7/2005/TM/KOL is dismissed.   There will be no order as to costs.



(V. Ravi)                                                                 (Justice Prabha Sridevan)
Technical Member (Trade Marks)                   Chairman




(This order is being published for present information and should not be taken as a certified copy issued by the Board.)