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Showing posts with label partition. Show all posts
Showing posts with label partition. Show all posts

Sunday, December 9, 2012

Code of Civil Procedure, 1908: ss.2(20) and 54, O. 20 r.18, O. 26 r.13 - Partition suit - Preliminary decree passed - Application for final decree - Resisted on the ground of limitation - DECREE - Preliminary decree and final decree - Concept of, in the context of partition suits and mortgage suits - SUIT: Suit for partition - Partition - Concept of - LEGISLATION: Suit - Filing of suit and securing relief to litigant - Proceedings in between - Need for legislation to avoid multiplicity of proceedings - HELD: Where an application does not invoke the jurisdiction of court to grant any fresh relief based on a new cause of action, but merely reminds or requests the court to do its duty by completing the remaining part of the pending suit, there is no question of any limitation - Such an application is not one to which Limitation Act would apply - As declaration of rights or shares is only the first stage in a suit for partition, a preliminary decree does not have the effect of disposing of the suit - Suit continues to be pending until partition, that is, division by metes and bounds, takes place by passing a final decree - An application requesting the court to take necessary steps to draw up a final decree effecting a division in terms of the preliminary decree is neither an application for execution (falling under Article 136 of Limitation Act) nor an application seeking a fresh relief (falling under Article 137 of Limitation Act) - Code does not contemplate filing of an application for final decree - Therefore, when a preliminary decree is passed in a partition suit, the proceedings should be continued by fixing dates for further proceedings till a final decree is passed -It is the duty and function of the court which in the normal course has to be performed by the court itself as a continuation of the preliminary decree - Performance of such function does not require a reminder or nudge from the litigant - The mindset should be to expedite the process of dispute resolution - The application filed by plaintiff for drawing up of a final decree was rightly held to be not subject to any period of limitation - Court concerned would expedite the final decree proceedings - Limitation. Lalta Prasad v. Brahma Din AIR 1929 Oudh 456; Ramabai Govind v. Anant Daji AIR 1945 Bom. 338; Abdul Kareem Sab v. Gowlivada S. Silar Saheb AIR 1957 AP 40; A. Manjundappa v. Sonnappa & Ors. AIR 1965 Kar. 73; Sudarsan Panda & Ors. v. Laxmidhar Panda & Ors. AIR 1983 Orissa 121; Laxmi v. A.Sankappa Alwa AIR 1989 Ker. 289; Phoolchand vs. Gopal Lal AIR 1967 SC 1470; Hasham Abbas Sayyad v. Usman Abbas Sayyad & Ors. 2007 (2) SCC 355; and Bikoba Deora Gaikwad v. Hirabai Marutirao Ghorgare 2008 (8) SCC 198, relied on HELD: There is a fundamental difference between mortgage suits and partition suits - In a preliminary decree in a mortgage suit (whether a decree for foreclosure under r.2 or a decree for sale under r.4 of O 34 CPC), the amount due is determined and declared and the time within which the amount has to be paid is also fixed and the consequence of non- payment within the time stipulated is also specified - A preliminary decree in a mortgage suit decides all the issues and what is left out is only the action to be taken in the event of non-payment of the amount - When the amount is not paid, plaintiff gets a right to seek a final decree for foreclosure or for sale - On the other hand, in a partition suit the preliminary decree only decides a part of the suit and, therefore, an application for passing a final decree is only an application in a pending suit, seeking further progress - In partition suits, there can be a preliminary decree followed by a final decree, or there can be a decree which is a combination of preliminary decree and final decree or there can be merely a single decree with certain further steps to be taken by the court - In fact several applications for final decree are permissible in a partition suit - The application for final decree as and when made is considered to be an application in a pending suit for granting the relief of division by metes and bounds - Therefore, the concept of final decree in a partition suit is different from the concept of final decree in a mortgage suit - Consequently, an application for a final decree in a mortgage suit is different from an application for final decree in a partition suit. HELD: `Partition' is a re-distribution or adjustment of pre-existing rights, among co-owners/coparceners, resulting in a division of lands or other properties jointly held by them, into different lots or portions and delivery thereof to the respective allottees - The effect of such division is that the joint ownership is terminated and the respective shares vest in them in severalty - A partition of a property can be only among those having a share or interest in it - A person who does not have a share in such property cannot obviously be a party to partition - `Separation of share' is a species of `partition' - When all co-owners get separated, it is a partition - Separation of share/s refers to a division where only one or only a few among several co-owners/coparceners get separated, and others continue to be joint or continue to hold the remaining property jointly without division by metes and bounds - In a suit for partition or separation of a share, the prayer is not only for declaration of plaintiff's share in the suit properties, but also division of his share by metes and bounds - This involves three issues (i) whether the person seeking division has a share or interest in the suit property/properties; (ii) whether he is entitled to the relief of division and separate possession; and (iii) how and in what manner the property/properties should be divided by metes and bounds. HELD: Cases have been found where a suit is decreed or a preliminary decree is granted within a year or two and the final decree proceeding and execution takes decades for completion - This is an area which contributes to considerable delay and consequential loss of credibility of the civil justice system - Courts and lawyers should give as much importance to final decree proceedings and executions, as they give to the main suits - A conceptual change regarding civil litigation, is required so that the emphasis is not only on disposal of suits, but also on securing relief to the litigant - It is hoped that the Law Commission and Parliament will bestow their attention on this issue and make appropriate recommendations/amendments so that the suit will be a continuous process from the stage of its initiation to the stage of securing actual relief - The present system involving a proceeding for declaration of the right, a separate proceeding for quantification or ascertainment of relief, and another separate proceeding for enforcement of the decree to secure the relief, is outmoded and unsuited for present requirements - The Code of Civil Procedure should provide for a continuous and seamless process from the stage of filing of suit to the stage of getting relief - In so far final decree proceedings are concerned, there is no reason for even legislative intervention - As the provisions of the Code stand as on date, initiation of final decree proceedings does not depend upon an application for final decree for initiation (unless the local amendments require the same) - Practice and Procedure. Case Law Reference: AIR 1929 Oudh 456 relied on para 8 AIR 1945 Bom. 338 relied on para 8 AIR 1957 AP 40 relied on para 8 AIR 1965 Kar. 73 relied on para 8 AIR 1983 Orissa 121 relied on para 8 AIR 1989 Ker. 289 relied on para 8 AIR 1967 SC 1470 relied on para 8 2007 (2) SCC 355 relied on para 8 2008 (8) SCC 198 relied on para 8 CIVIL APPELLATE JURISDICTION : SLP (Civil) No. 17932/2009. From the Judgment and Order dated 15.1.2009 of the High Court of Judicature at Patna in C.R. No. 2216/2008. S.B. Sanyal and Subhro Sanyal for the Petitioner.


                                                                Reportable
                 IN THE SUPREME COURT OF INDIA

                  CIVIL APPELLATE JURISDICTION

         SPECIAL LEAVE PETITION [C] NO.17932 OF 2009



Shub Karan Bubna @ Shub Karan
Prasad Bubna                                               ... Petitioner

Vs.

Sita Saran Bubna & Ors.                             ... Respondents


                                ORDER

R. V. RAVEENDRAN, J.


      The first respondent and his mother filed a suit for partition against

petitioner and two others in the year 1960 in the court of the First

Additional Judge, Muzaffarnagar, for partition and separate possession of

their one-third share in the plaint schedule properties and for rendition of

accounts. The suit was in respect of three non-agricultural plots and some

movables. After contest the suit was decreed on 25.2.1964 directing a

preliminary decree for partition be drawn in regard to the one-third share

of the plaintiffs in the said plots and a final decree be drawn up through

appointment of a Commissioner for actual division of the plots by metes

and bounds.
                                      2


2.       Feeling aggrieved the petitioner (and others) filed an appeal before

the Patna High Court which was dismissed on 29.3.1974. The first

respondent filed an application on 1.5.1987 for drawing up a final decree.

The petitioner filed an application on 15.4.1991 to drop the final decree

proceedings as it was barred by limitation.
The said application was

dismissed by the trial court holding that
once the rights/shares of the

plaintiff had been finally determined by a preliminary decree, there is no

limitation for an application for affecting the actual partition/division in

accordance with the preliminary decree, as it should be considered to be

an application made in a pending suit. 
The said order was challenged by

the petitioner in a revision petition which was dismissed by the High

Court order dated 15.1.2009.
The petitioner has filed this special leave

petition seeking leave to appeal against the said decision of the High

Court.


3.       The appellant contends that
when a preliminary decree is passed in

a partition suit, a right enures to the plaintiff to apply for a final decree for

division of the suit property by metes and bounds; that whenever an

application is made to enforce a right or seeking any relief, such

application is governed by the law of limitation;
 that an application for
                                    3


drawing up a final decree would be governed by the residuary Article 137

of Limitation Act, 1963 (`Act' for short) which provides a period of

limitation of three years;
that as such right to apply accrues on the date of

the preliminary decree, any application filed beyond three years from the

date of preliminary decree (that is 12.3.1964) or at all events beyond three

years from the date when the High Court dismissed the defendant's appeal

(that is 29.3.1974) would be barred by limitation. 
Reliance was placed by

the petitioner on the decision of this Court in Sital Parshad v. Kishori Lal

[AIR 1967 SC 1236], the decision of the Privy Council in Saiyid Jowad

Hussain v. Gendan Singh [AIR 1926 PC 93] and a decision of the Patna

High Court in Thakur Pandey v. Bundi Ojha [AIR 1981 Patna 27] in

support of his contention.


The issue:


4.    `Partition' is a re-distribution or adjustment of pre-existing rights,

among co-owners/coparceners, resulting in a division of lands or other

properties jointly held by them, into different lots or portions and delivery

thereof to the respective allottees. 
The effect of such division is that the

joint ownership is terminated and the respective shares vest in them in

severalty. 
A partition of a property can be only among those having a
                                      4


share or interest in it. A person who does not have a share in such

property cannot obviously be a party to a partition. `
Separation of share'

is a species of 'partition'.
When all co-owners get separated, it is a

partition. Separation of share/s refers to a division where only one or only

a few among several co-owners/coparceners get separated, and others

continue to be joint or continue to hold the remaining property jointly

without division by metes and bounds.
For example,
where four brothers

owning a property divide it among themselves by metes and bounds, it is

a partition. But if only one brother wants to get his share separated and

other three brothers continue to remain joint, there is only a separation of

the share of one brother. 
In a suit for partition or separation of a share,

the prayer is not only for declaration of plaintiff's share in the suit

properties, but also division of his share by metes and bounds.
This

involves three issues:
(i) whether the person seeking division has a share

or interest in the suit property/properties; 
(ii) whether he is entitled to the

relief of division and separate possession; and 
(iii) how and in what

manner, the property/properties should be divided by metes and bounds?



5.    In a suit is for partition or separation of a share, the court at the first

stage decides
whether the plaintiff has a share in the suit property and
                                         5


whether he is entitled to division and separate possession. 
The decision

on these two issues is exercise of a judicial function and results in
first

stage decision termed as `decree' under Order 20 Rule 18(1) and termed

as `preliminary decree' under Order 20 Rule 18(2) of the Code.
The

consequential division by metes and bounds, considered to be a

ministerial or administrative act requiring the physical inspection,

measurements, calculations and considering various permutations/

combinations/alternatives of division is referred to the Collector under

Rule 18(1) and is the subject matter of the final decree under Rule 18(2).

The question is
whether the provisions of Limitation Act are inapplicable

to an application for drawing up a final decree.



6.    Rule 18 of Order 20 of the Code of Civil Procedure (`Code' for

short) deals with decrees in suits for partition or separate possession of a

share therein which is extracted below:

        "18. Decree in suit for partition of property or separate
        possession of a share therein.--
Where the Court passes a decree for
        the partition of property or for the separate possession of a share
        therein, then, --

        (1)     if and in so far as the decree relates to an estate assessed to
        the payment of revenue to the Government, the decree shall declare
        the rights of the several parties interested in the property, but shall
        direct such partition or separation to be made by the Collector, or
        any gazetted subordinate of the Collector deputed by him in this
                                         6


        behalf, in accordance with such declaration and with the provisions
        of section 54;

        (2)     if and in so far as such decree relates to any other immovable
        property or to movable property, the Court may, if the partition or
        separation cannot be conveniently made without further inquiry, pass
        a preliminary decree declaring the rights of the several parties,
        interested in the property and giving such further directions as may
        be required."


The terms 'preliminary decree' and 'final decree' used in the said rule are

defined in Explanation to section 2(2) of the Code and reads thus :

        
"
A decree is preliminary when further proceedings have to be taken
        before the suit can be completely disposed of. 
It is final when such
        adjudication completely disposes of the suit. It may be partly
        preliminary and partly final."


Section 54 of the Code dealing with partition of estate or separation of

share, relevant for purposes of Rule 18(1) reads thus:

       "Where the decree is for the partition of an undivided estate assessed
       to the payment of revenue of the government, or for the separate
       possession of a share of such an estate, the partition of the estate or
       the separation of the share shall be made by the Collector or any
       gazetted sub-ordinate of the Collector deputed by him in this behalf,
       in accordance with the law (if any) for the time being in force
       relating to the partition, or the separate possession of shares, of such
       estates."


Rule 13 of Order 26 of the Code dealing with Commissions to make

partition of immovable property, relevant for purposes of Rule 18(2)

reads thus :
                                       7


        "Where a preliminary decree for partition has been passed, the Court
        may, in any case not provided for by section 54, issue a commission
        to such person as it thinks fit to make the partition or separation
        according to the rights as declared in such decree."


7.    We may now turn to the provisions of the Limitation Act, 1963.

Section 3 of the Act provides that subject to sections 4 to 24, every suit

instituted, appeal preferred and application made after the prescribed

period shall be dismissed. 

The term 'period of limitation' is defined as the

period of limitation prescribed for any suit, appeal or application by the

Schedule to the Act (vide clause (j) of section 2 of the Act).
The term

"prescribed period" is defined as the period of limitation computed in

accordance with the provisions of the said Act.

The Third Division of the

Schedule to the said Act prescribes the periods of limitation for

Applications.

The Schedule does not contain any Article prescribing the

limitation for an application for drawing up of a final decree.

Article 136

prescribes the limitation for execution of any decree or order of civil

court as 12 years when the decree or order becomes enforceable.

Article

137 provides that for any other application for which no period of

limitation is provided elsewhere in that division, the period of limitation

is three years which would begin to run from the time when the right to

apply accrues.

It is thus clear that every application

which seeks to
                                   8


enforce a right or seeks a remedy or relief on the basis of any cause of

action in a civil court, unless otherwise provided, will be subject to the

law of limitation.

But 

where an application does not invoke the

jurisdiction of the court to grant any fresh relief based on a new cause of

action, but merely reminds or requests the court to do its duty by

completing the remaining part of the pending suit, there is no question of

any limitation. 

Such an application in a suit which is already pending,

which contains no fresh or new prayer for relief is not one to which

Limitation Act, 1963 would apply. 

These principles are evident from the

provisions of the Code and the Limitation Act and also settled by a series

of judgments of different High Court over the decades (See : for example,

Lalta Prasad vs. Brahma Din [AIR 1929 Oudh 456], Ramabai Govind v.

Anant Daji [AIR 1945 Bom. 338], Abdul Kareem Sab vs. Gowlivada S.

Silar Saheb [AIR 1957 AP 40], A. Manjundappa v. Sonnappa & Ors.

[AIR 1965 Kar. 73], Sudarsan Panda & Ors. v. Laxmidhar Panda & Ors.

[AIR 1983 Orissa 121], Laxmi v. A.Sankappa Alwa [AIR 1989 Ker. 289].

We may also draw support from the judgments of this Court in

Phoolchand vs. Gopal Lal [AIR 1967 SC 1470], Hasham Abbas Sayyad

v. Usman Abbas Sayyad & Ors. [2007 (2) SCC 355] and Bikoba Deora

Gaikwad v. Hirabai Marutirao Ghorgare [2008 (8) SCC 198].
                                     9


8.    Once a court passes a preliminary decree, it is the duty of the court

to ensure that the matter is referred to the Collector or a Commissioner

for division unless the parties themselves agree as to the manner of

division.

This duty in the normal course has to be performed by the court

itself as a continuation of the preliminary decree.

Sometimes either on

account of the pendency of an appeal or other circumstances, 

the court

passes the decree under Rule 18(1) or 

a preliminary decree under

Rule 18(2) and the matter goes into storage to be revived only 

when an

application is made by any of the parties, drawing its attention to the

pending issue and the need for referring the matter either to the Collector

or a Commissioner for actual division of the property.

Be that as it may.



9.    The following principles emerge from the above discussion

regarding partition suits :


9.1) In regard to estates assessed to payment of revenue to the

government (agricultural land), the court is required to pass only one

decree 

declaring the rights of several parties interested in the suit property

with a direction to the Collector (or his subordinate) to effect actual

partition or separation in accordance with the declaration made by the
                                    10


court in regard to the shares of various parties and deliver the respective

portions to them, in accordance with section 54 of Code. 

Such

entrustment to the Collector under law was for two reasons.

First is that

Revenue Authorities are more conversant with matters relating to

agricultural lands.

Second is to safeguard the interests of government in

regard to revenue. (The second reason, which was very important in the

19th century and early 20th century when the Code was made, has now

virtually lost its relevance, as revenue from agricultural lands is

negligible). 

Where the Collector acts in terms of the decree, the matter

does not come back to the court at all.

The court will not interfere with

the partitions by the Collector, except to the extent of any complaint of a

third party affected thereby.



9.2) In regard to immovable properties (other than agricultural lands

paying land revenue), that is buildings, plots etc. or movable properties:

      (i)    where the court can conveniently and without further
      enquiry make the division without the assistance of any
      Commissioner, or where parties agree upon the manner of
      division, the court will pass a single decree comprising the
      preliminary decree declaring the rights of several parties and
      also a final decree dividing the suit properties by metes and
      bounds.

      (ii) where the division by metes and bounds cannot be
      made without further inquiry, the court will pass a preliminary
                                    11


      decree declaring the rights of the parties interested in the
      property and give further directions as may be required to
      effect the division. In such cases, normally a Commissioner is
      appointed (usually an Engineer, Draughtsman, Architect, or
      Lawyer) to physically examine the property to be divided and
      suggest the manner of division. The court then hears the
      parties on the report, and passes a final decree for division by
      metes and bounds.


The function of making a partition or separation according to the rights

declared by the preliminary decree, (in regard to non-agricultural

immovable properties and movables) is entrusted to a Commissioner, as

it involves inspection of the property and examination of various

alternatives with reference to practical utility and site conditions.

When

the Commissioner gives his report as to the manner of division, the

proposals contained in the report are considered by the court; and after

hearing objections to the report, if any, the court passes a final decree

whereby the relief sought in the suit is granted by separating the property

by metes and bounds. It is also possible that if the property is incapable

of proper division, the court may direct sale thereof and distribution of

the proceeds as per the shares declared.



9.3) As the declaration of rights or shares is only the first stage in a suit

for partition, a preliminary decree does not have the effect of disposing of
                                      12


the suit. The suit continues to be pending until partition, that is division

by metes and bounds, takes place by passing a final decree. 

An

application requesting the court to take necessary steps to draw up a final

decree effecting a division in terms of the preliminary decree, is neither

an application for execution (falling under Article 136 of the Limitation

Act) nor an application seeking a fresh relief (falling under Article 137 of

Limitation Act).

It is only a reminder to the court to do its duty to appoint

a Commissioner, get a report, and draw a final decree in the pending suit

so that the suit is taken to its logical conclusion.


10.   The three decisions relied on by the petitioner (referred to in para 3

above) are not relevant for deciding the issue arising in this case. 

They all

relate to suits for mortgage and not partition.

There is a fundamental

difference between mortgage suits and partition suits.

 In a preliminary

decree in a mortgage suit (whether a decree for foreclosure under Rule 2

or a decree for sale under Rule 4 of Order 34 of the Code),

the amount

due is determined and declared and the time within which the amount has

to be paid is also fixed and the consequence of non payment within the

time stipulated is also specified.

A preliminary decree in a mortgage suit

decides all the issues and what is left out is only the action to be taken in
                                    13


the event of non payment of the amount. 

When the amount is not paid

the plaintiff gets a right to seek a final decree for foreclosure or for sale.

On the other hand, 

in a partition suit the preliminary decrees only decide

a part of the suit and therefore an application for passing a final decree is

only an application in a pending suit, seeking further progress. 

In

partition suits, there can be a preliminary decree followed by a final

decree, or there can be a decree which is a combination of preliminary

decree and final decree or there can be merely a single decree with certain

further steps to be taken by the court.

In fact several applications for final

decree are permissible in a partition suit.

A decree in a partition suit

enures to the benefit of all the co-owners and therefore, it is sometimes

said that there is really no judgment-debtor in a partition decree.

A

preliminary decree for partition only identifies the properties to be

subjected to partition, defines and declares the shares/rights of the parties.

That part of the prayer relating to actual division by metes and bounds

and allotment is left for being completed under the final decree

proceedings. 

Thus the application for final decree as and when made is

considered to be an application in a pending suit for granting the relief of

division by metes and bounds.

Therefore, the concept of final decree in a

partition suit is different from the concept of final decree in a mortgage
                                     14


suit.

Consequently an application for a final decree in a mortgage suit is

different from an application for final decree in partition suits.


A suggestion for debate and legislative action

11.   The century old civil procedure contemplates judgments, decrees,

preliminary decrees and final decrees and execution of decrees.

They

provide for a `pause' between a decree and execution.

 A 'pause' has also

developed by practice between a preliminary decree and a final decree.

The `pause' is to enable the defendant to voluntarily comply with the

decree or declaration contained in the preliminary decree.

The ground

reality is that defendants normally do not comply with decrees without

the pursuance of an execution.

In very few cases, the defendants in a

partition suit, voluntarily divide the property on the passing of a

preliminary decree. In very few cases, defendants in money suits, pay the

decretal amount as per the decrees.

 Consequently, it is necessary to go to

the second stage that is levy of execution, or applications for final decree

followed by levy of execution in almost all cases.


12.     A litigant coming to court seeking relief is not interested in

receiving a paper decree, when he succeeds in establishing his case. What

he wants is relief. If it is a suit for money, he wants the money. If it is a
                                   15


suit for property, he wants the property. He naturally wonders why when

he files a suit for recovery of money, he should first engage a lawyer and

obtain a decree and then again engage a lawyer and execute the decree.

Similarly, when he files a suit for partition, he wonders why he has to

first secure a preliminary decree, then file an application and obtain a

final decree and then file an execution to get the actual relief.

The

common-sensical query is: why not a continuous process?

The litigant is

perplexed as to why when a money decree is passed, the court does not

fix the date for payment and if it is not paid, proceed with the execution;

when a preliminary decree is passed in a partition suit,

why the court does

not forthwith fix a date for appointment of a Commissioner for division

and make a final decree and deliver actual possession of his separated

share. 

Why is it necessary for him to remind the court and approach the

court at different stages?


13.   Because of the artificial division of suits into preliminary decree

proceedings, final decree proceedings and execution proceedings, many

Trial judges tend to believe that adjudication of the right being the

judicial function, they should concentrate on that part. 

Consequently,

adequate importance is not given to the final decree proceedings and
                                   16


execution proceedings which are considered to be ministerial functions.

The focus is on disposing of cases, rather than ensuring that the litigant

gets the relief. But the focus should not only be on early disposal of

cases, but also on early and easy securement of relief for which the party

approaches the court.

 Even among lawyers, importance is given only to

securing of a decree, not securing of relief. Many lawyers handle suits

only till preliminary decree is made, then hand it over to their juniors to

conduct the final decree proceedings and then give it to their clerks for

conducting the execution proceedings.

Many a time, a party exhausts his

finances and energy by the time he secures the preliminary decree and has

neither the capacity nor the energy to pursue the matter to get the final

relief.

As a consequence, we have found cases where a suit is decreed or a

preliminary decree is granted within a year or two, the final decree

proceeding and execution takes decades for completion.

This is an area

which contributes to considerable delay and consequential loss of

credibility of the civil justice system. Courts and Lawyers should give as

much importance to final decree proceedings and executions, as they give

to the main suits.
                                    17


14.   In the present system, when preliminary decree for partition is

passed, there is no guarantee that the plaintiff will see the fruits of the

decree.

The proverbial observation by the Privy Council is that the

difficulties of a litigant begin when he obtains a decree.

It is necessary to

remember that success in a suit means nothing to a party unless he gets

the relief. Therefore to be really meaningful and efficient, the scheme of

the Code should enable a party not only to get a decree quickly, but also

to get the relief quickly. This requires a conceptual change regarding civil

litigation, so that the emphasis is not only on disposal of suits, but also on

securing relief to the litigant. We hope that the Law Commission and

Parliament will bestow their attention on this issue and make appropriate

recommendations/amendments so that the suit will be a continuous

process from the stage of its initiation to the stage of securing actual

relief.

The present system involving a proceeding for declaration of the

right, a separate proceeding for quantification or ascertainment of relief,

and another separate proceeding for enforcement of the decree to secure

the relief, is outmoded and unsuited for present requirements. If there is a

practice of assigning separate numbers for final decree proceedings that

should be avoided.

Issuing fresh notices to the defendants at each stage

should also be avoided. The Code of Civil Procedure should provide for a
                                     18


continuous and seamless process from the stage of filing of suit to the

stage of getting relief. In money suits and other suits requiring a single

decree, the process of suit should be a continuous process consisting of

the first stage relating to determination of liability and then the second

stage of execution and recovery, without any pause or stop or need for the

plaintiff to initiate a separate proceedings for execution.

In suits for

partition and other suits involving declaration of the right and

ascertainment/quantification of the relief, the process of the suit should be

continuous, consisting of the first stage of determination and declaration

of the right, second stage of ascertainment/division/quantification, and the

third stage of execution to give actual relief.


Conclusion


15.   In so far final decree proceedings are concerned, we see no reason

for even legislative intervention. As the provisions of the Code stand at

present, initiation of final decree proceedings does not depend upon an

application for final decree for initiation (unless the local amendments

require the same). As noticed above, the Code does not contemplate filing

an application for final decree. Therefore, when a preliminary decree is

passed in a partition suit, the proceedings should be continued by fixing
                                     19


dates for further proceedings till a final decree is passed. It is the duty and

function of the court. Performance of such function does not require a

reminder or nudge from the litigant. The mindset should be to expedite

the process of dispute resolution.



16.   In view of the foregoing, we are of the view that the application

filed by the plaintiff in this case for drawing up of a final decree, was

rightly held to be not subject to any period of limitation. We therefore

dismiss this special leave petition as having no merit, with a request to

expedite the final decree proceedings.




                                                    .............................J.
                                                          (R. V. Raveendran)



                                                    ............................J.
                                                       (B. Sudershan Reddy)
New Delhi;
August 21, 2009.
20

Monday, December 19, 2011

Code of Civil Procedure, 1908 - Order XVI, Rules 1 and 2 r/w s.151 - Partition suit - Defendants filed application for permission to file a list of witnesses, which included the name of the plaintiff's Advocate - Trial Court granted the defendants the leave to file the list of witnesses but rejected their prayer for permission to cite the plaintiff's advocate as a witness on ground that no reason therefor was assigned in the application - Justification of - Held: Justified - If the parties to the litigation are allowed to file list of witnesses without indicating the purpose for summoning the particular person(s) as witness(es), the unscrupulous litigants may create a situation where the cases may be prolonged for years together - Such litigants may include the name of the advocate representing the other side as a witness and if the Court casually accepts the list of witnesses, the other side will be deprived of the services of the advocate - Therefore, it would be a prudent exercise of discretion by the Court to insist that the party filing the list of witnesses should briefly indicate the purpose of summoning the particular person as a witness - In the instant case, the concerned advocate was engaged by the plaintiffs almost 11 years prior to the filing of application by the defendants - During this long interregnum, the defendants never objected to the appearance of the plaintiff's advocate by pointing out that he was interested in the subject matter of the suit - The prayer made by the defendants for being allowed to cite the plaintiff's advocate as a witness was not only misconceived but also mischievous ex-facie with an oblique motive of boarding him out of the case. Constitution of India, 1950 - Articles 226 and 227 - Interlocutory order passed by Subordinate Court - Challenge to - Exercise of powers under Arts. 226 and 227 - Scope - Held: In the instant case, the High Court totally ignored the principles and parameters laid down by this Court for exercise of power u/Articles 226 and 227 of the Constitution qua an interlocutory order passed by the Subordinate Court and set aside the order of the trial Court without assigning any tangible reason. Advocates - Relationship between lawyer and his client - Duty imposed upon an Advocate - Discussed - Held: An Advocate cannot ordinarily withdraw from engagement without sufficient cause and without giving reasonable and sufficient notice to the client - If an Advocate has reason to believe that he will be a witness in the case, he should not accept a brief or appear in the case - Principles of `uberrima fides' - Bar Council of India Rules, 1975 - Rules 12, 13, 14 and 15 of Section II, Chapter II of Part IV. Appellant Nos.1 to 3 and one other person filed suit for partition and separate possession of 1/6th share each in the suit property and also for grant of a declaration that sale deed dated 10.7.1997 executed by appellant Nos.4 to 6 was not binding on them. Respondent Nos.1 and 2 filed written statement, and subsequently, also filed an application under Order XVI Rule 1(1) and (2) read with Section 151 C.P.C. supported by an affidavit of respondent No.1 for permission to file the list of witnesses, which included the name of `NRK', the Advocate who had been representing the appellants in the suit from the very beginning. The trial Court partly allowed the application of respondent Nos.1 and 2 and granted them leave to file the list of witnesses but rejected their prayer for permission to cite `NRK' as a witness on ground that no reason therefor was assigned in the application. The respondents challenged the order of the trial Court by filing a petition under Articles 226 and 227 of the Constitution insofar as their prayer for citing `NRK' as a witness was rejected. The High Court allowed the petition and set aside the order of the trial Court holding that reasons were not required to be assigned to justify the summoning of a particular person as a witness. In the instant appeal, the questions arising for consideration were: 1) whether the High Court committed serious error by interfering with the order of the trial Court without recording a finding that the said order was vitiated due to want of jurisdiction or any patent legal infirmity in exercise of jurisdiction; and 2) whether a litigant filing the list of witnesses is bound to indicate, howsoever briefly, the relevance of the witness to the subject matter of the suit etc., and, in any case, one party to the proceedings cannot cite the advocate representing the other side as a witness and thereby deprive the latter of the services of the advocate without disclosing as to how his testimony is relevant to the issues arising in the case. =Allowing the appeal, the Court HELD:1. The High Court totally ignored the principles and parameters laid down by this Court for exercise of power under Articles 226 and 227 of the Constitution qua an interlocutory order passed by the Subordinate Court and set aside the order of the trial Court without assigning any tangible reason. [Para 10] [427-H; 428-A-B] Surya Dev Rai v. Ram Chander Rai and others (2003) 6 SCC 675 and Shalini Shyam Shetty v. Rajendra Shankar Patil (2010) 8 SCC 329 - relied on. 2.1. The relationship between a lawyer and his client is solely founded on trust and confidence. A lawyer cannot pass on the confidential information to anyone else. This is so because he is a fiduciary of his client, who reposes trust and confidence in the lawyer. Therefore, he has a duty to fulfill all his obligations towards his client with care and act in good faith. Since the client entrusts the whole obligation of handling legal proceedings to an advocate, he has to act according to the principles of uberrima fides, i.e., the utmost good faith, integrity, fairness and loyalty. [Para 12] [428-F-G] 2.2. The duties of an advocate to the Court, the client, opponent and colleagues are enumerated in Chapter II of Part IV of the Bar Council of India Rules, 1975. Rules 12, 13, 14 and 15 of Section II, Chapter II of Part IV of the Rules, regulate the duty of an advocate to the client. An analysis of the above Rules show that one of the most important duty imposed upon an advocate is to uphold the interest of the client fearlessly by all fair and honourable means. An advocate cannot ordinarily withdraw from engagement without sufficient cause and without giving reasonable and sufficient notice to the client. If he has reason to believe that he will be a witness in the case, the advocate should not accept a brief or appear in the case. [Paras 13, 14] [428-H; 429-A-B; H; 430-A] 2.3. If the prayer made by the respondents for being allowed to cite `NRK' as a witness is critically scrutinized in the backdrop of the duties of an advocate towards his client, it is clear that the same was not only misconceived but was mischievous ex-facie. Neither in the written statement nor the additional written statement filed by them before the trial Court, the respondents had attributed any role to `NRK' in relation to the subject matter of the suit. The concerned advocate was engaged by the plaintiffs- appellants in 1996 i.e. almost 11 years prior to the filing of application by the respondents under Order XVI Rule 1(1) and (2) read with Section 151 CPC. During this long interregnum, the respondents never objected to the appearance of `NRK' as an advocate of the appellants by pointing out that he was interested in the subject matter of the suit. Notwithstanding this, the respondents cited him as a witness in the list filed along with the application. The sole purpose of doing this was to create a situation in which the advocate would have been forced to withdraw from the case. Luckily for the appellants, the trial Court could see the game plan of the respondents and frustrated their design by partly dismissing the application. The Single Judge of the High Court ignored that the respondents had included the name of `NRK' in the list of witnesses proposed to be summoned by them with an oblique motive of boarding him out of the case and passed the impugned order by recording one line observation that the respondents were not required to give reasons for summoning the particular person as a witness. [Para 15] [430-G-H; 431- A-D] 2.4. If the parties to the litigation are allowed to file list of witnesses without indicating the purpose for summoning the particular person(s) as witness(es), the unscrupulous litigants may create a situation where the cases may be prolonged for years together. Such litigants may include the name of the advocate representing the other side as a witness and if the Court casually accepts the list of witnesses, the other side will be deprived of the services of the advocate. Therefore, it would be a prudent exercise of discretion by the Court to insist that the party filing the list of witnesses should briefly indicate the purpose of summoning the particular person as a witness. The impugned order of the High Court is set aside and the one passed by the trial Court is restored. The respondents shall pay cost of Rs.50,000/- to the appellants. [Para 16] [431-E-H] Mange Ram v. Brij Mohan (1983) 4 SCC 36 and V. C. Rangadurai v. D. Gopalan (1979) 1 SCC 308 - relied on. Case Law Reference: (2010) 8 SCC 329 relied on Para 6, 9 (1983) 4 SCC 36 relied on Para 6, 11 (2003) 6 SCC 675 relied on Para 7, 8 (1979) 1 SCC 308 relied on Para 14 CIVIL APPELLLATE JURISDICTION : Civil Appeal No. 2015 of 2011. From the Judgment & Order dated 24.2.2010 of the High Court of Karnataka at Bangalore in W.P. No. 2610 of 2007 (GM-CPC). Krian Suri for the Appellants. S.N. Bhat for the Respondents.

1 REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO(s).2015 OF 2011 (Arising out of SLP(C)No.20821/2010) KOKKANDA B. POONDACHA AND OTHERS Appellant(s) VERSUS K.D. GANAPATHI AND ANOTHER Respondent(s) J U D G M E N T Leave granted. Whether the respondents (defendant Nos.5 and 6 in the suit filed by the appellants), could cite the advocate representing the appellants as a witness in the list filed under Order XVI Rule 1 (1) and (2) read with Section 151 of the Code of Civil Procedure (CPC) without giving an iota of indication about the purpose of summoning him in future is the question which arises for consideration in this appeal filed against order dated 24.02.2010 passed by the learned Single Judge of the Karnataka High Court whereby he set aside the order passed by the trial Court partly dismissing the application of the respondents. 2 Appellant Nos.1 to 3 and one Parvathy filed suit, which came to be registered as O.S. No.75 of 1996, for partition and separate possession of 1/6th share each in the suit property and also for grant of a declaration that sale deed dated 10.7.1997 executed by defendant Nos.2 to 4, who were, later on, transposed as plaintiff Nos.5 to 7 (appellant Nos.4 to 6 herein), was not binding on them. Defendant Nos.5 to 7 (including respondent Nos.1 and 2 herein) filed written statement on 19.2.1998. Respondent Nos.1 and 2 filed additional written statement on 9.8.2002. After two years and seven months, they filed an application dated 11.3.2005 under Order XVI Rule 1 (1) and (2) read with Section 151 C.P.C. supported by an affidavit of respondent No.1 for permission to file the list of witnesses, which included the name of Shri N. Ravindranath Kamath, Advocate, who was representing the appellants in the suit from the very beginning. The trial Court partly allowed the application of respondent Nos.1 and 2 and granted leave to them to file the list of witnesses but rejected their prayer for permission to cite Shri N. Ravindranath Kamath as witness No.1. The reasons assigned by the trial Court for partially declining the prayer of respondent Nos.1 and 2 are extracted below: "......................While citing advocate of the opposite party as a witness, the defendants 3 3 and 4 ought to have given reason for what purpose they are citing him as a witness and examining him in their favour. Once the advocate for the opposite party is cited as a witness in the list, the opposite party losses precious service of his advocate. In that circumstances, the party will suffer. Under the circumstances, so as to know for what purpose the defendant no.2 and 3 are citing and examining the N.R. Kamath advocate for the plaintiff in their favour have to assign reason. The Court has to very cautious and careful while considering such an aspect of the matter of examining and citing the advocate for the opposite party in their favour. The Court has to determine as to whether the evidence of said advocate is material for the decision of the case or not? Unless defendant no.2 and 3 assigned reason in the application or in the affidavit as to why they are citing the advocate for the opposite party and examining in their favour, the application filed by defendant no.2 and 3 is not maintainable and the said application is not sustainable under law. In the above said Judgment, in para 2, it is clearly held that, "but appellants then filed a petition seeking permission to cite the advocate of the respondents as a witness". But herein this case, the defendant no.2 and 3 are not seeking permission to cite the advocate for the plaintiff as a witness. Defendant no.2 and 3 not only have to seek permission of this Court to cite the advocate for the Plaintiff as a witness, but also he has to give good reasons for what purpose he is citing him as a witness and examining in his favour. Without assigning any reasons and without seeking permission to cite the advocate for the Plaintiff as a witness in the witness list, application to that extent is not tenable and same is liable to be dismissed to that extent." The respondents challenged the order of the trial Court by filing a petition under Articles 226 and 227 of the Constitution insofar as their prayer for citing Shri N. Ravindranath Kamath as a witness was rejected. The learned 4 Single Judge allowed the petition and set aside the order of the trial Court by simply observing that reasons are not required to be assigned to justify the summoning of a particular person as a witness. Mrs. Kiran Suri, learned counsel for the appellants relied upon the judgment of this Court in Shalini Shyam Shetty vs. Rajendra Shankar Patil (2010) 8 SCC 329 and argued that the order under challenge is liable to be set aside because the High Court committed serious error by interfering with the order of the trial Court without recording a finding that the said order is vitiated due to want of jurisdiction or any patent legal infirmity in the exercise of jurisdiction and that refusal of the trial Court to permit the respondents to cite Shri N. Ravindranath Kamath as a witness had prejudiced their cause. She further argued that the respondents are not entitled to cite and summon as a witness the advocate representing the appellants because in the application filed by them, no justification was offered for doing so. In support of this argument, Mrs. Suri relied upon the judgment of this Court in Mange Ram vs. Brij Mohan (1983) 4 SCC 36. Shri S.N. Bhatt, learned counsel for the respondents argued that even though his clients had filed application belatedly, the trial Court was not justified in 5 declining their prayer for citing Shri N. Ravindranath Kamath as a witness merely because he was representing the appellants. Learned counsel submitted that at the stage of filing the list of witnesses, the plaintiffs or for that reason the defendants are not required to disclose the nature of the evidence to be given by the particular witness or its relevance to the subject matter of the suit etc. and the trial Court had grossly erred in not granting leave to the respondents to cite Shri N. Ravindranath Kamath as one of their witnesses. Shri Bhatt relied upon the judgment in Surya Dev Rai v. Ram Chander Rai and others (2003) 6 SCC 675 and argued that even after amendment of Section 115, C.P.C., the High Court can, in exercise of supervisory power under Article 227, correct the error of jurisdiction committed by the Subordinate Court. We have considered the respective submissions. We shall first consider the question whether the High Court could interfere with the order of the trial Court without considering the question whether the said order was vitiated due to want of jurisdiction or the trial Court had exceeded its jurisdiction in deciding the application of the respondents and the order passed by it has resulted in failure of justice. In Surya Dev Rai's case (supra), the two Judge Bench, after detailed analysis of the various 6 precedents on the scope of the High Court's powers under Articles 226 and 227 of the Constitution culled out nine propositions including the following:- "(2) Interlocutory orders, passed by the courts subordinate to the High Court, against which remedy of revision has been excluded by CPC Amendment Act 46 of 1999 are nevertheless open to challenge in, and continue to be subject to, certiorari and supervisory jurisdiction of the High Court. (3) Certiorari, under Article 226 of the Constitution, is issued for correcting gross errors of jurisdiction i.e. when a subordinate court is found to have acted (i) without jurisdiction - by assuming jurisdiction where there exists none, or (ii) in excess of its jurisdiction - by overstepping or crossing the limits of jurisdiction, or (iii) acting in flagrant disregard of law or the rules of procedure or acting in violation of principles of natural justice where there is no procedure specified, and thereby occasioning failure of justice. (4) Supervisory jurisdiction under Article 227 of the Constitution is exercised for keeping the subordinate courts within the bounds of their jurisdiction. When the subordinate Court has assumed a jurisdiction which it does not have or has failed to exercise a jurisdiction which it does have or the jurisdiction though available is being exercised by the Court in a manner not permitted by law and failure of justice or grave injustice has occasioned thereby, the High Court may step in to exercise its supervisory jurisdiction. (5) Be it a writ of certiorari or the exercise of supervisory jurisdiction, none is available to correct mere errors of fact or of law unless the following requirements are satisfied: (I) the error is manifest and apparent on the face of the proceedings such as when it is based on clear ignorance or utter disregard of the provisions of 7 law, and (ii) a grave injustice or gross failure of justice has occasioned thereby." In Shalini Shyam Shetty vs. Rajendra Shankar Patil (supra), the Court again examined the scope of the High Court's power under Article 227 of the Constitution and laid down the following proposition: "Article 227 can be invoked by the High Court suo motu as a custodian of justice. An improper and a frequent exercise of this power will be counterproductive and will divest this extraordinary power of its strength and vitality. The power is discretionary and has to be exercised very sparingly on equitable principle. This reserve and exceptional power of judicial intervention is not to be exercised just for grant of relief in individual cases but should be directed for promotion of public confidence in the administration in the larger public interest whereas Article 226 is meant for protection of individual grievances. Therefore, the power under Article 227 may be unfettered but its exercise is subject to high degree of judicial discipline. The object of superintendence under Article 227, both administrative and judicial, is to maintain efficiency, smooth and orderly functioning of the entire machinery of justice in such a way as it does not bring it into any disrepute. The power of interference under Article 227 is to be kept to the minimum to ensure that the wheel of justice does not come to a halt and the fountain of justice remains pure and unpolluted in order to maintain public confidence in the functioning of the tribunals and courts subordinate to the High Court." The learned Single Judge of the High Court totally ignored the principles and parameters laid down by this Court for exercise of power under Articles 226 and 227 of the Constitution qua an interlocutory order passed by the 8 Subordinate Court and set aside the order of the trial Court without assigning any tangible reason. The next question which needs consideration is whether a litigant filing the list of witnesses is bound to indicate, howsoever briefly, the relevance of the witness to the subject matter of the suit etc., and, in any case, one party to the proceedings cannot cite the advocate representing the other side as a witness and thereby deprive the latter of the services of the advocate without disclosing as to how his testimony is relevant to the issues arising in the case. In Mange Ram vs. Brij Mohan (supra), this Court interpreted Order XVI Rule 1 (1),(2) and (3) CPC and observed: "If the requirements of these provisions are conjointly read and properly analysed, it clearly transpires that the obligation to supply the list as well as the gist of the evidence of each witness whose name is entered in the list has to be carried out in respect of those witnesses for procuring whose attendance the party needs the assistance of the court." At this stage, we may also advert to the nature of relationship between a lawyer and his client, which is solely founded on trust and confidence. A lawyer cannot pass on the confidential information to anyone else. This is so because he is a fiduciary of his client, who reposes trust and confidence in the lawyer. Therefore, he has a duty to fulfill all his obligations towards his client with care 9 and act in good faith. Since the client entrusts the whole obligation of handling legal proceedings to an advocate, he has to act according to the principles of uberrima fides, i.e., the utmost good faith, integrity, fairness and loyalty. The duties of an advocate to the Court, the client, opponent and colleagues are enumerated in Chapter II of Part IV of the Bar Council of India Rules, 1975 (for short, "the Rules"). Rules 12, 13, 14 and 15 of Section II, Chapter II of Part IV of the Rules, which regulate the duty of an advocate to the client, read as under: "12. An advocate shall not ordinarily withdraw from engagements, once accepted, without sufficient cause and unless reasonable and sufficient notice is given to the client. Upon his withdrawal from a case, he shall refund such part of the fee as has not been earned. 13. An advocate should not accept a brief or appear in a case in which he has reason to believe that he will be a witness, and if being engaged in a case, it becomes apparent that he is a witness on a material question of fact, he should not continue to appear as an advocate if he can retire without jeopardising his client's interests. 14. An advocate shall, at the commencement of his engagement and during the continuance thereof, make all such full and frank disclosures to his client relating to his connection with the parties and any interest in or about the controversy as are likely to affect his client's judgment in either engaging him or continuing the engagement. 15. It shall be the duty of an advocate fearlessly to uphold the interests of his client by all fair and honourable means without regard to 10 any unpleasant consequences to himself or any other. He shall defend a person accused of a crime regardless of his personal opinion as to the guilt of the accused, bearing in mind that his loyalty is to the law which requires that no man should be convicted without adequate evidence." An analysis of the above reproduced Rules show that one of the most important duty imposed upon an advocate is to uphold the interest of the client fearlessly by all fair and honourable means. An advocate cannot ordinarily withdraw from engagement without sufficient cause and without giving reasonable and sufficient notice to the client. If he has reason to believe that he will be a witness in the case, the advocate should not accept a brief or appear in the case. In V. C. Rangadurai v. D. Gopalan (1979) 1 SCC 308, A.P.Sen, J. outlined the importance of the relationship of an advocate with his client in the following words: "Nothing should be done by any member of the legal fraternity which might tend to lessen in any degree the confidence of the public in the fidelity, honesty and integrity of the profession. Lord Brougham, then aged eighty-six, said in a speech, in 1864, that the first great quality of an advocate was 'to reckon everything subordinate to the interests of his client'. What he said in 1864 about 'the paramountcy of the client's interest', is equally true today. The relation between a lawyer and his client is highly fiduciary in its nature and of a very delicate, exacting, and confidential character requiring a high degree of fidelity and good faith. It is purely a personal relationship, involving the highest personal trust and confidence which cannot be delegated without consent. A lawyer when 11 entrusted with a brief, is expected to follow the norms of professional ethics and try to protect the interests of his clients, in relation to whom he occupies a position of trust. The appellant completely betrayed the trust reposed in him by the complainants." If the prayer made by the respondents for being allowed to cite Shri N. Ravindranath Kamath as a witness is critically scrutinised in the backdrop of the above noted statement on the duties of an advocate towards his client, we have no hesitation to hold that the same was not only misconceived but was mischievous ex-facie. Neither in the written statement nor the additional written statement filed by them before the trial Court, the respondents had attributed any role to Shri N. Ravindranath Kamath in relation to the subject matter of the suit. The concerned advocate was engaged by the plaintiffs-appellants in 1996 i.e. almost 11 years prior to the filing of application by the respondents under Order XVI Rule 1(1) and (2) read with Section 151 CPC. During this long interregnum, the respondents never objected to the appearance of Shri N. Ravindranath Kamath as an advocate of the appellants by pointing out that he was interested in the subject matter of the suit. Notwithstanding this, the respondents cited him as a witness in the list filed along with the application. The sole purpose of doing this was to create a situation in which the advocate would have been forced to withdraw from 12 the case. Luckily for the appellants, the trial Court could see the game plan of the respondents and frustrated their design by partly dismissing the application. The learned Single Judge ignored that the respondents had included the name of Shri N. Ravindranath Kamath in the list of witnesses proposed to be summoned by them with an oblique motive of boarding him out of the case and passed the impugned order by recording one line observation that the respondents were not required to give reasons for summoning the particular person as a witness. We may add that if the parties to the litigation are allowed to file list of witnesses without indicating the purpose for summoning the particular person(s) as witness(es), the unscrupulous litigants may create a situation where the cases may be prolonged for years together. Such litigants may include the name of the advocate representing the other side as a witness and if the Court casually accepts the list of witnesses, the other side will be deprived of the services of the advocate. Therefore, it would be a prudent exercise of discretion by the Court to insists that the party filing the list of witnesses should briefly indicate the purpose of summoning the particular person as a witness. In the result, the appeal is allowed, the impugned 13 order is set aside and the one passed by the trial Court is restored. The respondents shall pay cost of Rs.50,000/- to the appellants. ........................J. (G.S. SINGHVI) ........................J. (ASOK KUMAR GANGULY) NEW DELHI, FEBRUARY 22, 2011.