Bombay High Court Allows Second Appeal in Railway Licence Plot Dispute — Courts Below Failed to Consider Admission Under Order VIII CPC. Refund of Rs.50,050 with 18% Interest Upheld as Railway's Admission of Receipt Not Denied.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The original plaintiff, Bhika s/o Antu Kale, a retired Railway servant, filed Regular Civil Suit No.996 of 1987 against the Railways for possession and perpetual injunction. In 1981, the Railways invited applications for giving plots on licence. The plaintiff applied and deposited Rs.50,050/- as licence fee. However, the plot was not given to him. The plaintiff sought refund of the amount. The trial court partly decreed the suit granting refund of Rs.50,050/- with interest at 18% per annum from the date of deposit till realisation. The Railways appealed, and the lower appellate court dismissed the appeal. The plaintiff then filed the present Second Appeal. The substantial question of law was whether the Courts below failed to consider the admission in view of Order VIII, Rules 3, 4 and 5 CPC. The High Court noted that the Railways had admitted receipt of the amount in their written statement. The Courts below had not considered this admission. The High Court held that the admission ought to have been taken into account and the suit for refund was maintainable. The High Court allowed the appeal, set aside the judgment of the lower appellate court, and restored the decree of the trial court granting refund with interest.

Headnote

A) Civil Procedure - Admission - Order VIII Rules 3, 4, 5 CPC - Failure to Consider Admission - The Courts below failed to consider the admission made by the Railways in their written statement regarding receipt of Rs.50,050/- from the plaintiff - The High Court held that the admission ought to have been taken into account and the suit for refund was maintainable - Held that the judgment of the lower appellate court is set aside and the decree for refund with interest is restored (Paras 1-6).

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Issue of Consideration

Whether the Courts below failed to consider the admission in view of Order VIII, Rules 3, 4 and 5 of the Code of Civil Procedure?

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Final Decision

Second Appeal allowed. Judgment and order dated 12.7.1999 passed by the 6th Additional District Judge, Nagpur in Regular Civil Appeal No.192 of 1992 is set aside. The decree passed by the trial court in Regular Civil Suit No.996 of 1987 is restored. No order as to costs.

Law Points

  • Order VIII Rules 3
  • 4
  • 5 CPC
  • Admission
  • Failure to consider admission
  • Refund of deposit
  • Interest
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Case Details

2014 LawText (BOM) (02) 205

Second Appeal No.399 of 1999

2014-02-21

A.P. Bhangale, J.

Mr. M.R. Joharapurkar for Appellants, Mr. N.P. Lambat for Respondent Nos.1 & 2

Vatsala wd/o. Bhikaji Kale and others

Divisional Railway Manager (Works), Central Railway, Nagpur and others

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Nature of Litigation

Second Appeal against dismissal of Regular Civil Appeal arising from suit for possession and perpetual injunction.

Remedy Sought

Appellants sought setting aside of lower appellate court's judgment and restoration of trial court's decree for refund of Rs.50,050/- with interest.

Filing Reason

The Railways failed to give possession of the plot despite receiving licence fee of Rs.50,050/- from the plaintiff.

Previous Decisions

Trial court partly decreed suit granting refund with interest; lower appellate court dismissed appeal.

Issues

Whether the Courts below failed to consider the admission in view of Order VIII, Rules 3, 4 and 5 of the Code of Civil Procedure?

Submissions/Arguments

Appellants argued that the Railways admitted receipt of Rs.50,050/- in their written statement, which was not considered by the Courts below. Respondents argued that the suit was not maintainable.

Ratio Decidendi

The Courts below failed to consider the admission made by the Railways in their written statement regarding receipt of Rs.50,050/-. Under Order VIII Rules 3, 4 and 5 CPC, such admission ought to have been taken into account, and the suit for refund was maintainable.

Judgment Excerpts

Whether the Courts below failed to consider the admission in view of Order VIII, Rules 3, 4 and 5 of the Code of Civil Procedure? The Courts below failed to consider the admission in view of Order VIII, Rules 3, 4 and 5 of the Code of Civil Procedure.

Procedural History

Original plaintiff filed Regular Civil Suit No.996 of 1987 which was partly decreed on 24.2.1992. The defendant Railways appealed in Regular Civil Appeal No.192 of 1992 which was dismissed on 12.7.1999. The plaintiff then filed Second Appeal No.399 of 1999 which was admitted on 30.10.2001 and allowed on 21.2.2014.

Acts & Sections

  • Code of Civil Procedure, 1908: Order VIII, Rules 3, 4, 5
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