Bombay High Court Allows Second Appeal, Sets Aside Appellate Decree, and Remands Suit for Fresh Trial Due to Erroneous Rejection of Adjournment and Unexplained Delay in Pronouncing Judgment. Denial of Opportunity to Lead Evidence and Non-Compliance with Section 105 CPC Requirements on Challenging Interlocutory Orders Vitiate the Appellate Judgment.

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

Second Appeals Nos. 340 and 356 of 1999 arose from the judgment and decree of the District Judge, Akola, in Regular Civil Appeal No. 132 of 1988, which confirmed the trial court's decree of eviction in Regular Civil Suit No. 302 of 1979. The original plaintiff-landlady, Sau. Nivedita Jain, had filed the suit in 1979 against M/s. Hindustan Petroleum Corporation Ltd. (defendant No.1) and its sister concerns (defendants No.2 and 3) seeking possession of a plot of land. The property in question had been leased by the original owner to Caltex (India) Ltd. in 1964 for a term of 10 years. Thereafter, it was gifted to the landlady in 1965. After expiry of the lease, the landlady served quit notices in 1978 and 1979, terminating the tenancy, and subsequently filed the eviction suit. During the trial, the plaintiff led her evidence and closed her side in 1987. The defendant HPCL sought adjournments to produce its evidence. Its last adjournment application, Exh.144, was rejected by the trial court on the ground that the counsel was unwell and the witness from Coimbatore could not come. The trial court proceeded to decree the suit ex parte against the defendants. The defendant HPCL filed Regular Civil Appeal No. 132 of 1988 before the District Judge, Akola, raising the ground, among others, that the trial court had erroneously denied it the opportunity to lead evidence. The appeal was heard on 4 February 1999, but the judgment was delivered on 30 June 1999, after a delay of four months and twenty-six days. The lower appellate court dismissed the appeal. In the second appeals before the High Court, the appellants contended that the rejection of the adjournment application had vitiated the trial and that the lower appellate court, due to the long delay in pronouncing judgment, had failed to consider this crucial ground. The respondent landlady argued that the appellants were required to specifically challenge the order rejecting the adjournment in the prayer clause of the appeal memo as per Section 105 CPC, and having not done so, the order had attained finality. She further contended that no purpose would be served by remand after three decades of litigation. The High Court reframed two substantial questions of law: whether the trial court erred in rejecting the adjournment application and whether its non-consideration by the lower appellate court vitiated the judgment; and the correct interpretation of Section 105 CPC. The court held that the rejection of the adjournment application had caused grave prejudice to the defendants by denying them the opportunity to lead evidence, and that the lower appellate court had a duty to examine this ground. The delay of over four months in pronouncing the judgment had resulted in the loss of the major ground of challenge, thereby vitiating the judgment. On the second question, the court held that Section 105 only requires the ground of objection to be set forth in the memo of appeal, not a specific prayer challenging the order, and that the appellate court is empowered to examine the validity of interlocutory orders on its own to do justice. Consequently, the High Court allowed the appeals, set aside the judgment and decree of the lower appellate court, and remanded the appeal to the District Court for fresh decision after affording the defendants an opportunity to lead evidence.

Headnote

A) Civil Procedure - Adjournment and Natural Justice - Denial of opportunity to lead evidence by erroneous rejection of adjournment application vitiates trial - Code of Civil Procedure, 1908, Order XVII Rule 1 - Trial court rejected defendant's adjournment application Exh.144 on grounds of counsel's illness and witness's inability to attend, despite no habitual adjournments; such rejection denied defendant opportunity to present evidence - Held that non-consideration of this ground by lower appellate court, which delivered judgment after 4 months and 26 days, vitiated its judgment and matter requires remand for fresh consideration (Paras 1-10, 15-16).

B) Civil Procedure - Appeal and Interlocutory Orders - Section 105 CPC only requires setting forth ground of objection in memo of appeal and specific prayer challenging interlocutory order is not necessary; lower appellate court is empowered to examine validity of such order to do justice - Code of Civil Procedure, 1908, Section 105 - Appellant raised ground of objection regarding rejection of adjournment in memo of appeal; respondent contended specific challenge in prayer was required for order to survive - Held that Section 105 does not mandate a separate prayer, and lower appellate court can suo motu examine validity of interlocutory orders to ensure justice (Paras 10-16).

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Issue of Consideration

Whether rejection of adjournment application causing denial of opportunity to lead evidence vitiated the trial, and whether non-consideration of that ground by the lower appellate court in a judgment delivered after four months and twenty-six days vitiated its decision; and interpretation of Section 105 CPC regarding requirement to set forth ground of objection versus specific challenge in prayer to memo of appeal.

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Final Decision

The High Court held that the trial court's rejection of the adjournment application was erroneous and that the non-consideration of that ground by the lower appellate court, due to the delay in pronouncing judgment, vitiated its judgment. It answered the substantial questions of law in favour of the appellants. Consequently, the appeals were allowed, the judgment and decree of the lower appellate court were set aside, and the matter was remanded to the District Court for fresh decision on merits after granting the defendants an opportunity to lead evidence.

Law Points

  • denial of opportunity to lead evidence
  • rejection of adjournment
  • delay in pronouncing judgment
  • Section 105 CPC interpretation
  • duty of appellate court to examine interlocutory orders
  • substantial question of law
  • natural justice
  • remand
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Case Details

2014 LawText (BOM) (03) 134

Second Appeal Nos. 340 and 356 both of 1999

2014-03-20

A.B. Chaudhari, J.

Mr. M.G. Bhangde, Senior Adv. with Mr. V.V. Bhangde, Mr. A. Shelat, Mr. R.L. Khapre

M/s. Hindustan Petroleum Corporation Ltd., M/s. Greenland Agencies, M/s. Onkarmal Rungta & Sons

Sau. Nivedita Jain, M/s. Greenland Agencies, M/s. Onkarmal Rungta & Sons

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Nature of Litigation

Second appeal against eviction decree where defendants alleged denial of opportunity to lead evidence due to wrongful rejection of adjournment application and delayed pronouncement of judgment by the lower appellate court.

Remedy Sought

Appellants sought setting aside of the trial court decree and the appellate court judgment, and remand for fresh hearing or opportunity to lead evidence.

Filing Reason

Suit for eviction was filed in 1979; during trial, defendant's adjournment application was rejected, resulting in ex-parte decree; appeal filed was dismissed after an unexplained delay, and the appellate court allegedly failed to consider the ground of denial of opportunity.

Previous Decisions

Trial Court (Civil Judge, Senior Division, Akola) decreed the suit on 01.12.1987; Regular Civil Appeal No. 132 of 1988 was dismissed by the District Judge, Akola on 30.06.1999.

Issues

Whether the Trial Court committed an error in rejecting the adjournment application (Exh.144) and whether non-consideration of that ground by the Lower Appellate Court in its judgment delivered after four months and twenty-six days vitiates the judgment? Whether Section 105 CPC requires a specific prayer to challenge an interlocutory order in the memo of appeal or merely setting forth the ground is sufficient, and whether the Lower Appellate Court can examine the validity of such order itself?

Submissions/Arguments

Appellants: Denial of adjournment caused prejudice and denied natural justice; no habitual adjournment; Lower Appellate Court forgot the major ground due to delay in pronouncing judgment; Section 105 only requires setting forth ground of objection, not specific prayer. Respondent: Order below Exh.144 became final for want of specific challenge in the prayer clause; point was abandoned; no prejudice as lease had expired; matter too old, no remand warranted.

Ratio Decidendi

Rejection of an adjournment application denying a party opportunity to lead evidence without justifiable reasons vitiates the trial; the appellate court must consider such ground if raised; delay of more than three months in pronouncing judgment may vitiate if it results in non-consideration of key grounds; under Section 105 CPC, it is sufficient to set forth the ground of objection in the memo of appeal without a specific prayer challenging the interlocutory order; the appellate court can suo motu examine the validity of such orders.

Judgment Excerpts

The Trial Court should not have rejected that application, and instead could have given a time-bound direction to the defendant for production of evidence rather than going ahead with delivering the judgment and decree. Section 105, CPC, contemplates only setting forth the ground of objection in the Memo of Appeal by the appellant and a specific prayer to challenge such order in the Prayer Clause may not be necessary.

Procedural History

Original owner executed lease deed on 15.07.1964; property gifted to respondent on 16.10.1965; quit notice dated 09.08.1978; suit filed on 06.08.1979; plaintiff closed evidence on 15.01.1987; defendant's last adjournment application Exh.144 rejected on 20.03.1987; trial court decree on 01.12.1987; appellant filed Regular Civil Appeal No. 132 of 1988 on 28.04.1988; appeal heard on 04.02.1999 and judgment delivered on 30.06.1999; second appeals filed and admitted on 19.12.2000; heard by High Court and judgment reserved.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 105
  • C.P. & Berar Rent Control Order, 1949: amended
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