Supreme Court Dismisses Special Leave Petition in Civil Suit Abatement Matter Under Code of Civil Procedure, 1908. Suit Abates as a Whole Where Decree Against One Defendant Became Final and Further Proceedings Would Yield Inconsistent Findings on Fraud and Collusion.

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Case Note & Summary

The matter arose from a dispute over a house property allotted by a cooperative housing society. The petitioner claimed to have entered into an oral agreement of sale with the first respondent, Dwaraka Prasad Mathur, for purchase of the house for Rs.20,000 subject to obtaining permission for transfer from the Society. The petitioner alleged that he paid dues and became a member of the Society, but before obtaining possession, a decree of specific performance dated 11 October 1976 had been obtained by the second respondent in O.S.No.77-A of 1976. Aggrieved, the petitioner filed Civil Suit No.121-A of 1984 alleging fraud and collusion between the two respondents to obtain a collusive decree. During pendency of the suit, both original defendants died. The first defendant's widow, Shakuntala, was brought on record as legal representative; the second defendant's son, Prakash Chand Saxena, was brought on record as legal representative and was the decree-holder in the earlier suit. Shakuntala also died during the suit and no legal representative was substituted, causing the suit to abate as against the first defendant. The petitioner filed First Appeal No.17 of 1989 before the Madhya Pradesh High Court, Gwalior Bench. The High Court dismissed the appeal on the ground that the suit had abated as a whole. The petitioner then filed a special leave petition before the Supreme Court. The Supreme Court considered whether an appeal could be filed against a dead person and whether the legality of the decree against the second defendant could be examined when the decree against the first defendant had become final. It also examined the applicability of Order 22 Rule 4(4) of the Code of Civil Procedure, 1908, as amended by the CPC Amendment Act 1976. The petitioner's counsel argued that under the amended rule, the suit need not abate as a whole because a counsel could give notice of death and bring legal representatives on record. The Supreme Court rejected this argument. The Court noted that when the death of Shakuntala was brought to the notice of the petitioner's counsel, an application was filed to delete the name of the first defendant from the array of parties, and the deletion was allowed. Consequently, the decree as against the first defendant in O.S.No.121-A of 1984 became final. Since the suit was based on a plea of fraud and collusion to avoid the earlier decree in O.S.No.77-A of 1976, any finding given by the High Court in the appeal against the second defendant would be inconsistent with the final decree as against the first defendant. Therefore, the suit as a whole stood abated. The Court held that Order 22 Rule 4(4) CPC was clearly inapplicable to the facts because the application to delete the name was filed and allowed, making the decree final qua the first defendant. The Court found no merit in the special leave petition and dismissed it, affirming the High Court's dismissal of the appeal.

Headnote

A) Civil Procedure - Abatement of Suit - Suit Abates as a Whole When Decree Against One Defendant Becomes Final and Further Proceedings Would Create Inconsistent Findings - Code of Civil Procedure, 1908, Order 22 Rule 4 - The petitioner filed a suit to avoid an earlier decree on grounds of fraud and collusion; after the first defendant's legal representative died without substitution, the suit abated against the first defendant and the decree against him became final - The Supreme Court held that since any decision against the remaining defendant would be inconsistent with the final decree against the first defendant, the entire suit abated and the High Court rightly dismissed the appeal - Held that suit No.121-A/84 as a whole stands abated. (Paras Not mentioned)

B) Civil Procedure - Order 22 Rule 4(4) CPC - Non-Applicability When Application to Delete Deceased Defendant Filed and Allowed - Code of Civil Procedure, 1908, Order 22 Rule 4(4) as amended by CPC Amendment Act, 1976 - The petitioner contended that under the amended rule, counsel can give notice of death and legal representatives can be brought on record, so the suit need not abate as a whole - The Supreme Court rejected this argument because an application to delete the name of the first defendant was filed and allowed, making the decree final against him; therefore Order 22 Rule 4(4) CPC is clearly inapplicable - Held that the special leave petition is dismissed. (Paras Not mentioned)

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Issue of Consideration

Whether an appeal can be filed against a dead person, whether the legality of a decree against the second defendant can be examined when the decree against the first defendant has become final, and whether Order 22 Rule 4(4) CPC as amended by CPC Amendment Act 1976 is applicable to the facts

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Final Decision

The Supreme Court dismissed the special leave petition, holding that the suit No.121-A/84 as a whole stood abated. The High Court rightly dismissed the appeal. Order 22 Rule 4(4) CPC is inapplicable because application to delete the name of the first defendant was filed and allowed, making the decree against first defendant final; any finding against second defendant would be inconsistent with that final decree.

Law Points

  • Suit abates as a whole when decree against one defendant has become final and further proceedings would lead to inconsistent findings
  • Order 22 Rule 4(4) CPC as amended by CPC Amendment Act 1976 is not applicable when application to delete deceased defendant is filed and allowed
  • non-substitution of legal representative of deceased defendant makes decree final against that defendant
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Case Details

1996 LawText (SC) (08) 102

1996-08-14

K. Ramaswamy, S.B. Majmudar

JT 1996 (7) 460, 1996 SCALE (6) 189

Mr. Sushil Mr. Jain, Shri Bagga

SATGURU SHARAN SHRIVASTAVA

DWARKA PRASAD MATHUR [DEAD] THROUGH LRS. A ORS.

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Nature of Litigation

Civil suit seeking to avoid a decree of specific performance obtained in an earlier suit, alleging fraud and collusion, followed by special leave petition against High Court order dismissing appeal due to abatement.

Remedy Sought

Petitioner sought to challenge High Court order dismissing First Appeal No.17/89 and to pursue suit No.121-A of 1984 to avoid decree in O.S.No.77-A of 1976.

Filing Reason

Petitioner claimed oral agreement to purchase house, paid dues to society, became member; then discovered collusive decree of specific performance obtained by second respondent; filed suit alleging fraud to avoid that decree.

Previous Decisions

Original suit No.77-A of 1976 resulted in decree dated October 11, 1976 for specific performance in favor of second respondent. Petitioner filed suit No.121-A of 1984; both defendants died; legal representatives of first defendant initially brought on record but later died and no LR substituted, suit abated as against first defendant; High Court dismissed First Appeal No.17/89 holding suit abated as a whole.

Issues

Whether an appeal can be filed against a dead person Whether the legality of the decree against the second defendant (decree-holder) can be examined when the decree against the first defendant (judgment-debtor) has become final Whether Order 22 Rule 4(4) CPC as amended by CPC Amendment Act 1976 is applicable to the facts

Submissions/Arguments

Petitioner's counsel argued that by operation of Order 22 Rule 4(4) CPC as amended by 1976 Act, it is not necessary that suit should abate as a whole; counsel can give notice of death and LRs can be brought on record. Respondents took notice through counsel; no detailed submissions recorded.

Ratio Decidendi

Where a suit is filed to avoid an earlier decree on ground of fraud and collusion, and the decree against one of the necessary parties has become final (due to abatement on failure to bring legal representatives), the suit as a whole abates because any decision against the remaining party would result in inconsistent or contradictory decrees. Order 22 Rule 4(4) CPC as amended does not assist when an application to delete the name of the deceased defendant was filed and allowed, thereby making the decree final as against that defendant.

Judgment Excerpts

The question that arises is whether the appeal could be filed against dead person, namely, the first respondent? Under those circumstances, the suit No.121-A/84 as a whole stands abated. (As a consequence) the high court rightly has dismissed the appeal. Order 22, Rule 4(4), CPC is clearly inapplicable to the facts. The special leave petition is accordingly dismissed.

Procedural History

1. O.S.No.77-A of 1976: decree of specific performance dated October 11, 1976 in favor of second respondent. 2. Petitioner filed civil suit No.121-A of 1984 alleging fraud and collusion to avoid that decree. 3. Pending suit, both defendants died. First defendant's widow Shakuntala brought on record as LR; second defendant's son Prakash Chand Saxena brought on record as LR. 4. Shakuntala also died pending suit; no legal representative of her came on record and suit No.121-A/84 abated as against first defendant. 5. In appeal before High Court (First Appeal No.17/89), an application was filed to delete name of first defendant, allowed; High Court dismissed appeal on ground suit abated as a whole. 6. Petitioner filed special leave petition before Supreme Court, which dismissed it on 14-08-1996.

Acts & Sections

  • Code of Civil Procedure, 1908 (CPC): Order 22 Rule 4(4)
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