Bombay High Court Full Bench Examines Whether Small Cause Court is Subordinate to High Court on Original Side Under Section 41(b) of Specific Relief Act. Reference Arises from Appeals Against Rejection of Injunctions to Restrain Proceedings Under Maharashtra Rent Control Act in Small Causes Court.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The Bombay High Court constituted a Full Bench to answer a reference on the question of law: whether a Small Cause Court under the Presidency Small Cause Courts Act is a court subordinate to the Bombay High Court on its original side within the meaning of Section 41(b) of the Specific Relief Act, 1963. This reference arose from two appeals filed by Export Credit Guarantee Corporation of India Ltd. against the refusal of a single judge of the High Court to grant temporary injunctions restraining the respondents from filing proceedings under the Maharashtra Rent Control Act, 1999 in the Small Causes Court. The appellant had instituted two suits on the original side of the High Court for specific performance of lease agreements. In those suits, notices of motion were taken out seeking temporary injunction; the single judge rejected them by a common order dated 26 September 2006. The appellant then filed Appeal Nos. 295/2007 and 296/2007. When these appeals came for admission before a Division Bench on 19 April 2007, the Bench noted that a similar issue had arisen in Notice of Motion No. 1259/2005 in Suit No. 7/2004 and that the matter had been directed to be placed before a larger bench. The Division Bench admitted the appeals and directed that they be placed before the Hon'ble Chief Justice for constitution of a larger bench. Meanwhile, in another suit (Suit No. 514/1984, Aderbad Co-op. Hsg. Society), a learned single judge had framed questions regarding the power to grant injunction against proceedings before the Deputy Registrar under the Maharashtra Co-operative Societies Act, 1960 and had referred them to a larger bench. That Notice of Motion (No. 828/2005) was later dismissed as infructuous on 12 August 2009, leaving only the present appeals for consideration. The Full Bench accordingly framed the precise question of law quoted above. The appellant contended that the Small Causes Court is subordinate to the High Court on its original side by virtue of the provisions of the Presidency Small Cause Courts Act, 1882, the Constitution of India, the Letters Patent and the Civil Procedure Code. Reliance was placed on judgments including William Jacks & Co. (India) Ltd. v. Nilima Dinesh Prasad, AIR 1992 Bom 126; Narayan Vithal Samant v. Jankibai Sitaram Samant, AIR 1915 Bom 146; Naresh Shridhar Mirajkar v. His Lordship the Honourable Mr. Justice Tarkunde, 67 BLR 214; and Pirbhai Khimji v. The Bombay, Baroda and Central India Railway Company, (1872) 8 Bom HCJ 59. The respondents submitted that Section 41 of the Presidency Small Cause Courts Act confers exclusive jurisdiction on the Small Causes Court, making it a court of coordinate jurisdiction and not subordinate to the High Court on its original side. They relied on Raizada Topandas v. Gorakhdas Gokalchand, AIR 1964 SC 1348 and Cotton Corporation of India v. United Industrial Bank Ltd., AIR 1983 SC 1272. The Full Bench commenced its analysis with Article 225 of the Constitution, which preserves the jurisdiction and law administered in existing High Courts immediately before the commencement of the Constitution. The court then referred to Clause 12 of the Letters Patent, which grants ordinary original civil jurisdiction to the High Court to receive, try and determine suits of every description subject to certain conditions. The judgment text provided is truncated before the reasoning is completed and the final decision is rendered, so the outcome of the reference remains unknown.

Headnote

A) Civil Procedure - Subordination of Courts - Section 41(b) of the Specific Relief Act, 1963 - The Full Bench was constituted to decide whether a Small Cause Court under the Presidency Small Cause Courts Act is a court subordinate to the Bombay High Court on its original side, thus enabling the High Court to grant an injunction restraining proceedings in such Small Cause Court. The court examined Article 225 of the Constitution, Clause 12 of the Letters Patent, and Section 41 of the Presidency Small Cause Courts Act, 1882. The appellant argued subordination based on these provisions, while the respondent contended that the Small Cause Court has exclusive jurisdiction and is a coordinate court. The judgment excerpt ends before the court's final determination. (Paras 1-8)

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Issue of Consideration

With reference to the provisions of Section 41(b) of the Specific Relief Act, whether Small Cause Court constituted under the Presidency Small Cause Courts Act is a Court subordinate to the Bombay High Court on its original side?

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Final Decision

The judgment text provided is truncated and does not contain the final determination of the Full Bench on the referred question.

Law Points

  • Interpretation of Section 41(b) of the Specific Relief Act
  • 1963
  • determination of subordination of Small Cause Court to High Court
  • Letters Patent original jurisdiction
  • Article 225 of Constitution
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Case Details

2010 LawText (BOM) (08) 53

Appeal No. 295 of 2007 in Notice of Motion No. 1487 of 2001 in Suit No. 2178 of 2001 and Appeal No. 296 of 2007 in Notice of Motion No. 1488 of 2001 in Suit No. 2177 of 2001 (along with Notice of Motion No. 1259 of 2005 in Suit No. 7 of 2004)

2010-08-27

D. K. Deshmukh, J. H. Bhatia, Smt. R. P. Sondurbaldota

Appellant: Dr. Virendra Tulzapurkar, Sr. Advocate with Ms. Soumya Srikrishna, Mr. Faizal Sayyed, Mr. Durgesh Khanapurkar & Mr. Vikram Trivedi instructed by Manilal Kher Ambalal & Co.; Respondents: Mr. Pradeep Sancheti, Sr. Advocate with Mr. Shreeniwas Deshmukh, Mr. Sagar Ghogare & Mr. H. K. Sudhakar instructed by Khaitan & Co.

Export Credit Guarantee Corporation of India Ltd.

Mrs. Annamma Philips & Ors. and Mr. T. Mathew & Ors.

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Nature of Litigation

Civil appeals against refusal of temporary injunctions restraining defendants from filing proceedings under Maharashtra Rent Control Act, 1999 in the Small Causes Court; reference to Full Bench on question of subordination of Small Cause Court to High Court under Section 41(b) of Specific Relief Act, 1963.

Remedy Sought

Appellant sought temporary injunction from single judge of Bombay High Court on its original side to restrain respondents from instituting proceedings under the Maharashtra Rent Control Act, 1999 in the Small Causes Court. Single judge refused; hence appeals and reference.

Filing Reason

Appellant had filed suits for specific performance of lease agreements and in those suits, notices of motion were taken out for temporary injunction; the single judge rejected the notices of motion vide order dated 26 September 2006.

Previous Decisions

Single judge rejected Notices of Motion by common order dated 26-09-2006. Division Bench admitted appeals on 19-04-2007 and referred common question of law to a larger bench. Related Notice of Motion No. 828/2005 in Suit No. 514/1984 was dismissed as infructuous on 12-08-2009.

Issues

Whether a Small Cause Court constituted under the Presidency Small Cause Courts Act is a Court subordinate to the Bombay High Court on its original side within the meaning of Section 41(b) of the Specific Relief Act, 1963?

Submissions/Arguments

Appellant: Small Causes Court is subordinate to Bombay High Court on original side by virtue of provisions of Presidency Small Cause Courts Act, Constitution, Letters Patent and CPC; relied on William Jacks, Narayan Vithal Samant, Naresh Mirajkar, Pirbhai Khimji. Respondent: Small Causes Court has exclusive jurisdiction under Section 41 of Presidency Small Cause Courts Act and is a coordinate court, hence not subordinate; relied on Raizada Topandas v. Gorakhdas Gokalchand and Cotton Corporation of India v. United Industrial Bank Ltd.

Judgment Excerpts

With reference to the provisions of Section 41(b) of the Specific Relief Act, whether Small Cause Court constituted under the Presidency Small Cause Courts Act is a Court subordinate to the Bombay High Court on its original side? Subject to the provisions of this Constitution and to the provisions of any law of the appropriate Legislature made by virtue of powers conferred on that Legislature by this Constitution, the jurisdiction of, and the law administered in, any existing High Court, and the respective powers of the Judges thereof in relation to the administration of justice in the Court, including any power to make rules of Court and to regulate the sittings of the Court and of members thereof sitting alone or in Division Courts, shall be the same as immediately before the commencement of this Constitution.

Procedural History

In two suits for specific performance (CS 2178/2001 and CS 2177/2001), appellant sought temporary injunctions to restrain respondents from approaching Small Causes Court under Maharashtra Rent Control Act, 1999. Single Judge rejected the notices of motion on 26-09-2006. Appellant filed Appeal Nos. 295/2007 and 296/2007. Division Bench on 19-04-2007 admitted the appeals and referred to a larger bench due to similarity with Notice of Motion No. 1259/2005 in Suit No. 7/2004. Meanwhile, in Suit No. 514/1984, a single judge had framed questions on similar issues pertaining to the Deputy Registrar under Maharashtra Co-operative Societies Act, 1960 and referred them to a larger bench; that Notice of Motion was later dismissed as infructuous on 12-08-2009. Consequently, the Full Bench was constituted to decide the question of law in the appeals only.

Acts & Sections

  • Specific Relief Act, 1963: Section 41(b)
  • Presidency Small Cause Courts Act, 1882: Section 41
  • Constitution of India: Article 225
  • Letters Patent (Bombay): Clause 12
  • Maharashtra Co-operative Societies Act, 1960: Section 35
  • Maharashtra Rent Control Act, 1999:
  • Code of Civil Procedure, 1908:
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