"That the plaintiff is aware of the fact that the jurisdiction
of the civil court is barred under Haryana Public Moneys
(Recovery of Dues) Act, 1979. But he is also aware of the law
laid down by the Hon'ble 5 Judges of the Apex Court of India
reported in AIR 1969 SC 78 that in case the Statutory
Authorities do not act in accordance with the procedure
prescribed in the Statues, then the Civil Court alone has the
jurisdiction to entertain and try every suit. The present suit
is no exception to the law laid down by the Hon'ble Supreme
Court of India."
On receipt of the notice of the suit, the defendants
entered appearance and filed an application under Order VII Rules
10 & 11 read with Section 21 of the Code of Civil Procedure, 1908
(hereinafter referred to as "the Code"). Defendant No.1 contended
that the suit of this nature for claiming the aforementioned
reliefs was not maintainable by virtue of express bar contained in
Section 3(4) of the Act, which in clear terms provided that no
Civil Court shall have jurisdiction to entertain or adjudicate upon
any case relating to the recovery of any sum due from the defaulter
and if any such suit is pending at the commencement of the Act in
any Civil Court then it shall abate. Defendant No.1, therefore,
contended that since the plaintiff has challenged the agreement as
also the recovery notice issued by the Tahsildar under Section 3 of
the Act in the Civil Suit, the same was not maintainable being
barred by Section 3(4) of the Act. It was, therefore, liable to be
dismissed under Order VII Rule 11(d) of the Code read with Section
(3)4 of the Act.
The trial Court, by order dated 16.8.2003, allowed the
application filed by defendant No.1 and, in consequence, dismissed
the suit.
The High Court, by impugned judgment,
dismissed the revision in limine and upheld the order of the trial
court. It is against this judgment/order the plaintiff has filed
this appeal by way of special leave.
The question as to whether a suit is barred by any law or not would
always depend upon the facts and circumstances of each case.
However, for deciding this question, only the averments made in the
plaint are relevant. Since the question of jurisdiction of the
Civil Court to entertain and try the civil suit goes to the very
root of the case and hence it can be raised at any time by the
defendant by taking recourse to the provisions of Order VII Rule 11
of the Code. Indeed, this principle of law is well settled.
So far as the provisions of the Act are concerned,
Section 3 of the Act empowers the Corporation to make recovery of
its outstanding dues from the defaulter as arrears of land revenue
by getting the certificate of recovery of the amount issued from
the competent authority whereas sub-section (4) of Section 3 in
clear terms takes away the jurisdiction of the Civil Court to
entertain or/and adjudicate "any case" relating to the recovery of
any sum due from the defaulter. It also takes away the jurisdiction
of Civil Court to proceed with any pending case involving such
issue. If any such case is pending on the date of commencement of
the Act, such case shall stand abate.
it is clear by mere reading of the plaint that
firstly, the plaintiff was a "defaulter" as defined under Section
2(c) of the Act; secondly, the investment made by defendant No.1-
Corporation pursuant to an agreement dated 16.07.1996 was in the
nature of the "financial assistance" as defined under Section 2 (d)
of the Act; thirdly, the demand raised by the respondent was in
relation to the amount given by way of financial assistance under
Section 3 of the Act and lastly, the subject matter of the suit
viz., challenge to the legality of the agreement and the demand
fell under Section 3(4)(a) and (b) of the Act.
In the light of the four aforementioned facts, which
are clearly discernable from the averments made in the plaint, we
are of the considered opinion that the provisions of the Act get
attracted to the case in hand which, in turn, attract the bar
contained in sub-section (4) of Section 3 in filing the civil suit
by the defaulter. The suit is, therefore, apparently barred by
virtue of bar contained in Section 3(4) of the Act. It was thus
rightly dismissed by the courts below by taking recourse to Order
VII Rule 11 (d) of the Code.=2015 S.C. MSKLAWREPORTS