Supreme Court Allows Appeal in CPC Revision, Sets Aside High Court Orders Due to Lack of Jurisdictional Error. The High Court had exceeded its revisional jurisdiction under Section 115 of the Code of Civil Procedure, 1908, by treating the revision as an appeal and reversing a stay order without finding any illegality or material irregularity.

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Case Note & Summary

The dispute arose from an agreement dated August 9, 1963, under which the appellant company agreed to purchase 264 kanals and 12 marlas of land from the respondents. A suit for specific performance was filed on April 15, 1967, but was dismissed on August 13, 1968, by the Senior Subordinate Judge, Gurgaon. An appeal against the dismissal was pending in the High Court. In the meantime, part of the land was acquired under the Land Acquisition Act, 1894, and a compensation award was enhanced to over Rs. 2 lakhs by the District Court in May 1968. A dispute regarding apportionment of compensation was referred under Section 30 of the Land Acquisition Act. The Additional District Judge initially stayed the reference proceedings pending the decision of the specific performance suit. After the suit's dismissal, the respondents applied for continuation and payment; the Additional District Judge, on August 30, 1968, continued the stay pending the appeal. The respondents then filed a revision in the High Court under Section 115 CPC. On March 18, 1969, a learned Single Judge set aside the stay and directed that a sum of Rs. 1,78,000 be paid to the respondents, with the balance retained pending the appeal. The Additional District Judge, after hearing both parties, interpreted this order to mean that payment would be made only after the decision of the reference under Section 30. The respondents then moved an application under Sections 151/141 CPC, and on May 8, 1969, the High Court passed an ex parte order directing immediate payment without notice to the appellant. The appellant company obtained special leave to appeal to the Supreme Court. The Supreme Court held that the High Court's first order exceeded its revisional jurisdiction under Section 115 CPC, as there was no jurisdictional error or material irregularity in the Additional District Judge's stay order; the High Court had improperly treated the revision as an appeal. The Court further held that the ex parte clarificatory order under Sections 151/141 CPC could not be sustained, as it effectively reversed a judicial order without affording an opportunity to the affected party. Both High Court orders were set aside, and the appeal was allowed in favour of the appellant.

Headnote

A) Civil Procedure - Revision - Section 115, Code of Civil Procedure, 1908 - Scope of revisional jurisdiction - The High Court in exercise of its revisional power under Section 115 CPC cannot correct errors of fact or law unless they relate to the jurisdiction of the subordinate court. Clauses (a) and (b) of Section 115 require that the subordinate court must have exercised a jurisdiction not vested in it or failed to exercise a jurisdiction vested in it; clause (c) covers only illegality or material irregularity in the manner of reaching a decision, not errors in the decision itself. In this case, the Additional District Judge stayed reference proceedings under the Land Acquisition Act pending disposal of the appeal; no jurisdictional error or material irregularity was shown. The High Court treated the revision as if it were an appeal and reversed the stay, thereby exceeding its jurisdiction. Held that the High Court's order dated March 18, 1969 had to be set aside. (Para 5)

B) Civil Procedure - Inherent Powers - Sections 151 and 141, Code of Civil Procedure, 1908 - Ex parte order reversing a judicial order - An application for clarification under Sections 151/141 CPC cannot be used to obtain an order that effectively reverses a judicial order made after hearing both sides. The Additional District Judge had judicially interpreted the High Court's earlier order, and the High Court, without notice to the affected party, passed an ex parte order directing immediate payment. Held that such an order could only be made on appeal or revision after notice, and the ex parte order dated May 8, 1969 was unsustainable. (Para 5)

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Issue of Consideration

Whether the High Court exceeded its revisional jurisdiction under Section 115 of the Code of Civil Procedure, 1908 in reversing the stay order of the Additional District Judge; and whether the ex parte clarificatory order under Sections 151 and 141 of the Code was sustainable.

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Final Decision

Supreme Court allowed the appeal, set aside both High Court orders dated March 18, 1969 and May 8, 1969. Held that the High Court exceeded its revisional jurisdiction under Section 115 CPC in the first order, and the ex parte clarificatory order under Sections 151/141 CPC could not be sustained. The Additional District Judge's stay order was restored.

Law Points

  • Legal points not extracted
  • Under Section 115 CPC
  • High Court cannot correct errors of fact or law unless they relate to jurisdiction
  • Clauses (a) and (b) require jurisdictional error
  • Clause (c) covers only illegality or material irregularity in procedure
  • Revision cannot be treated as appeal
  • Ex parte order under Sections 151/141 CPC reversing judicial order without notice is impermissible
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Case Details

1969 LawText (SC) (09) 46

Civil Appeal No. 1575 of 1969

1969-09-12

I.D. Dua, C.A. Vaidyialingam

Citation not available, 1971 AIR 2324, 1970 SCR (2) 368, 1969 SCC (3) 807

S.V. Gupte, Ravinder Narain, K.R. Chaudhuri

D.L.F. Housing & Construction Company Private Ltd., New

Sarup Singh and Others

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Nature of Litigation

Civil appeal by special leave against High Court orders in revision and clarificatory application under CPC

Remedy Sought

Appellant company sought setting aside of High Court's orders that reversed stay of land acquisition reference proceedings and directed immediate payment

Filing Reason

High Court exceeded revisional jurisdiction under Section 115 CPC and passed ex parte order without notice, contrary to law

Previous Decisions

Additional District Judge stayed reference proceedings pending suit; after suit dismissal, continued stay pending appeal; High Court reversed stay in revision and ordered partial payment; in clarificatory application, High Court directed immediate payment ex parte

Issues

Whether the High Court exceeded its jurisdiction under Section 115 CPC in reversing the stay order of the Additional District Judge Whether the High Court's ex parte order under Sections 151/141 CPC, effectively reversing the Additional District Judge's interpretation, was sustainable

Submissions/Arguments

Appellant argued that High Court's first order was without jurisdiction as no jurisdictional infirmity existed in the Additional District Judge's stay order, and the ex parte order violated natural justice Respondents sought continuation of reference proceedings and immediate payment of compensation

Ratio Decidendi

Under Section 115 CPC, the High Court in exercise of revisional jurisdiction cannot correct errors of fact or law unless they relate to the jurisdiction of the subordinate court; it cannot treat a revision as an appeal. An ex parte order under Sections 151/141 CPC that effectively reverses a judicial order passed after hearing both sides is impermissible, and such course can only be adopted in appeal or revision after notice to the affected party.

Judgment Excerpts

The position is firmly established that while exercising its jurisdiction under s. 115, it is not competent to the High Court to correct errors of fact however gross or even errors of law unless the errors have relation to the jurisdiction of the Court to try the dispute itself. The ex-parte order dated May 8 1969 was equally difficult to sustain. The High Court had proceeded to make an order virtually and in effect reversing the judicial order made by the learned Additional Judge in favour of the appellant. This could, more appropriately be done only on appeal or revision after notice to the party affected and not on an application under ss. 151/141 C.P.C.

Procedural History

Agreement for sale of land dated August 9, 1963. Land acquisition notifications under sections 4 and 6 of Land Acquisition Act in 1966; compensation enhanced to over Rs. 2 lakhs in May 1968. Dispute as to apportionment referred under section 30; Additional District Judge stayed reference proceedings on February 28, 1968 pending decision of specific performance suit filed on April 15, 1967. Suit dismissed on August 13, 1968; appeal filed in High Court. Respondents applied for continuation; Additional District Judge continued stay on August 30, 1968 pending appeal. Revision filed by respondents; High Court on March 18, 1969 reversed stay and directed partial payment. Additional District Judge on April 19, 1969 interpreted order to mean payment only after decision of reference. Respondents filed application under sections 151/141 CPC; High Court on May 8, 1969 passed ex parte order directing immediate payment. Appeal by special leave to Supreme Court against both High Court orders.

Acts & Sections

  • Code of Civil Procedure, 1908: 115, 151, 141
  • Land Acquisition Act, 1894: 4, 6, 30
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