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Smart Summary

Case Summary — Extracted Legal Opinion (Chagla, C.J. and Bhagwati, J.)

Factual and Procedural Background

On May 4, 1945, the Small Cause Court passed an order for ejectment in proceedings initiated by the defendant against A. A. Patil. Patil was given time to vacate by May 14, 1945. A warrant of possession was issued on May 18, 1945, and when the defendant attempted to execute that warrant the plaintiff obstructed execution.

The defendant took out an obstructionist notice on May 22, 1945. The Small Cause Court made that notice absolute in the defendant's favour on December 10, 1945. The plaintiff filed a civil revision to this Court; that revisional application was dismissed on February 17, 1947.

The plaintiff then filed a suit on March 29, 1947 seeking (1) a declaration that he was the tenant of the defendant and therefore entitled to remain in possession of the shop, and (2) a declaration that the defendant was not entitled to execute the warrant of possession obtained from the Small Cause Court.

At trial, Mr. Justice Tendolkar decided a preliminary issue on limitation and held the suit barred under art. 11A of the Indian Limitation Act, dismissing the suit. The plaintiff appealed that dismissal to the Court whose opinion is reproduced here.

Legal Issues Presented

  1. Whether the proceedings in the Small Cause Court (Chapter VII of the Presidency Small Cause Courts Act) and the ejectment order obtained thereunder amount to a "suit" and a "decree" within the meaning of section 2(2) of the Civil Procedure Code, and specifically whether the suit before the High Court is a suit under Order XXI, rule 103, CPC.
  2. Whether article 11A of the Indian Limitation Act applies to the suit filed by the plaintiff (i.e., whether the suit is barred by the one-year limitation period in art. 11A).

Arguments of the Parties

Appellant's (Plaintiff's) Arguments

  • Before the trial court, the plaintiff contended that the period consumed by the civil revision application (filed December 22, 1945 and disposed on February 17, 1947) should be excluded under section 14 of the Indian Limitation Act for purposes of computing limitation.
  • On appeal, the appellant additionally argued that article 11A of the Indian Limitation Act did not apply to his suit (this point was not urged before the trial court).

Respondent's (Defendant's) Arguments

  • Counsel for the respondent (Mr. Laud) argued that the order of the Small Cause Court was a final adjudication of the parties' rights and should be regarded as a decree; on that basis art. 11A would apply and the suit would be barred.
  • It was further argued that the order obtained in the Small Cause Court was executable as if it were a decree, and therefore the Limitation Act provision applicable to suits against persons subject to decretal orders should govern.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Hyder Ali v. Amirudin Held that an ejectment order of the Small Cause Court is not a decree within the meaning of s. 2(2) CPC (Madras decision). The Court relied on and followed this decision as directly applicable and on "all fours" with the present case to support the conclusion that art. 11A does not apply.
Ramkrishna v. Haji Dawood Divisional bench view that proceedings in the Small Cause Court under Chapter VII do not result in a decree (i.e., are not suits producing a decree under s. 2(2) CPC). The Court cited this High Court decision (divisional bench) as authority that proceedings under Chapter VII are not suits and their orders are not decrees; the opinion follows that reasoning.
Framroz Dosabhai v. Dalsukbhai Fulchand Divisional bench view that proceedings under Chapter VII of the Small Cause Courts Act are not suits and resultant orders are not decrees. The Court cited and treated this decision as corroborative authority for the proposition that Small Cause ejectment proceedings are not suits/decrees.
Bai Meherbai v. Pherozshaw Sorabji Another divisional bench decision of the High Court expressing that Chapter VII proceedings in the Small Cause Court are not suits and orders are not decrees. Adopted as part of consistent High Court authority supporting the conclusion that the ejectment order is not a decree.
Narayan v. Hari Decision of Mr. Justice Patkar relied upon by the trial judge on the question of excluding time under s. 14 of the Limitation Act. The trial judge followed Narayan v. Hari to reject the plaintiff's contention that time occupied by the revisional proceedings should be excluded under s. 14; the appellate court notes that reliance by the trial judge on this decision occurred.

Court's Reasoning and Analysis

The opinion contains two judgments (Chagla, C.J., and Bhagwati, J.) which reach the same conclusion for related but separately reasoned reasons. Their central analytical steps are summarized below, each stated as it appears in the opinion.

Chief Justice Chagla — Analysis

  1. He began by identifying the trial judge's assumption as the critical error: the trial judge treated the proceedings in the Small Cause Court as a "suit" and the order of ejectment as a "decree".
  2. He referred to the Presidency Small Cause Courts Act (Chapter VII) and its scheme: ss. 41 and 43 permit summary ejectment proceedings and an order for possession; s. 48 makes the Code of Civil Procedure applicable to those proceedings; s. 49 states recovery under Chapter VII is no bar to a suit in the High Court to try title.
  3. He then considered the definition of "decree" in s. 2(2) CPC: a decree is the formal expression of an adjudication that determines rights in a suit. Because the Small Cause Court proceedings are not a suit, their order cannot be a decree within s. 2(2).
  4. Chagla, C.J. rejected the contention that a final adjudication in summary proceedings should be treated as a decree; he noted that where legislation creates "statutory suits" and "statutory decrees" it does so expressly, but the Small Cause Courts Act does not make s. 43 ejectment orders decrees.
  5. He relied on the Madras decision in Hyder Ali v. Amirudin and three divisional-bench decisions of their High Court (Ramkrishna, Framroz Dosabhai, Bai Meherbai) taking the same view that Chapter VII proceedings are not suits and orders are not decrees.
  6. Turning to art. 11A, he explained that article 11A applies only to suits filed by a person against whom an order is made for giving up possession to the holder of a decree; since the defendant did not hold a decree in this case, art. 11A cannot be invoked.
  7. Chagla, C.J. emphasized the elementary rule of strict construction of the Limitation Act: limitation provisions cannot be extended by implication; art. 11A must be read as applying only where the order impugned is one made upon the holder of a decree for possession.
  8. Consequently, with art. 11A inapplicable, the suit would fall to be governed by other limitation articles (art. 120 or art. 144), and the plaintiff's suit would be within time.

Justice Bhagwati — Analysis

  1. Bhagwati, J. set out the two questions: (1) whether the suit is a suit under O. XXI, r. 103 CPC; and (2) whether art. 11A applies.
  2. He agreed with the view that proceedings under Chapter VII of the Presidency Small Cause Courts Act are neither suits nor do their resultant orders constitute decrees within s. 2(2) CPC; they are summary proceedings with an order as the result.
  3. He observed that s. 48 makes, "as far as may be", the procedure of the Civil Procedure Code applicable and by virtue of s. 48, the provisions of O. XXI, rr. 97–103 become applicable to the obstructionist-notice proceedings. Under r. 103 the order made in those proceedings is conclusive except for any suit which may be filed within the meaning of r. 103.
  4. Bhagwati, J. thereby considered the present suit to be the suit contemplated by O. XXI, r. 103 (i.e., a suit filed to challenge the conclusive order), but he proceeded to analyze whether article 11A's one-year limitation applied to such a suit.
  5. Article 11A, he explained, applies only where the order was made upon an application by the holder of a decree for possession. Since the Small Cause Court order was not a decree, the defendant was not a holder of a decree for possession, and article 11A's strict terms were not satisfied.
  6. He reiterated the rule of strict construction of the Limitation Act and concluded that art. 11A cannot be extended to cover orders made under the Small Cause Courts Act which are not decrees.
  7. He noted the trial judge had followed Narayan v. Hari in rejecting the s. 14 exclusion argument, and also observed that the appellant only raised the contention that art. 11A did not apply at the appeal stage (a point of law which the appellate court considered).
  8. In conclusion, Bhagwati, J. agreed that art. 11A did not apply and that, if anything, the suit would fall under art. 120 or art. 144, making it within time.

Holding and Implications

Holding: Appeal allowed. The Court set aside the order of dismissal passed by the learned trial Judge and remanded the suit for disposal according to law.

Direct consequences for the parties (as stated in the opinion):

  • The trial judge's conclusion that the plaintiff's suit was barred under art. 11A of the Indian Limitation Act is reversed.
  • The plaintiff's suit is to proceed on the merits in the High Court (remanded for disposal according to law).
  • As to costs: because the appellant succeeded on a point not urged before the trial Court and not in the memo of appeal, the Court ordered that "the costs of the appeal and the costs of the hearing will be costs in the cause."

Broader implications: The opinion reiterates and applies existing High Court and Madras High Court authority that proceedings under Chapter VII of the Presidency Small Cause Courts Act are not suits and their orders are not decrees for the purposes of s. 2(2) CPC and, consequentially, that article 11A of the Indian Limitation Act (which applies only where a decree-holder seeks possession) does not apply to such orders. The opinion does not purport to establish any novel limitation principle beyond applying these authorities and rules of statutory construction.

Additional Case Management Information from the Opinion

Attorneys for appellant: Satyendra & Co.

Attorneys for respondent: Khanderao Laud & Co.

Appeal allowed.

    Madhavprasad Kalkaprasad Nigam v. S.G. Chanraverkar

    Chagla, C.J:—

    This appeal raises a very short point of limitation. On May 4, 1945, an order was passed by the Small Cause Court in proceedings instituted by the defendant against A.A Patil and this was an order for ejectment against Patil. Time was given to Patil to vacate by May 14, 1945, and a warrant of possession was issued on May 18, 1945, and when the defendant attempted to execute the warrant of possession, he was obstructed by the plaintiff. On May 22, 1945, the defendant took out an obstructionist notice, and on December 10, 1945, the notice was made absolute in favour of the defendant. From that order the plaintiff came to this Court in revision, and this Court dismissed the revisional application on February 17, 1947. The plaintiff then filed this suit on March 29, 1947, for a declaration that he was the tenant of the defendant and that as such tenant he was entitled to remain in possession of the shop. He also sought for a declaration that the defendant was not entitled to execute the warrant of possession which he had obtained from the Small Cause Court. Mr. Justice Tendolkar, before whom the suit came, tried the preliminary issue with regard to limitation, and as he came to the conclusion that the plaintiff's suit was barred, he dismissed the plaintiff's suit. The plaintiff has come to us in appeal from that decision.

    The view that the learned Judge took was that the order passed by the Small Cause Court on December 10, 1945, was an order under O. XXI, r. 103, Civil Procedure Code, and the suit was barred under art. 11A of the Indian Limitation Act, because it was not filed within a year of the passing of that order. Now, with very great respect to the learned Judge, the whole of his judgment proceeds on the assumption that the proceedings instituted by the defendant in the Small Cause Court were a suit and the order that he obtained on May 4, 1945, was a decree. As we shall presently point out, this assumption, which underlies the judgment, is fallacious and, therefore, the conclusion to which the learned Judge arrived at is not correct. The Small Cause Court has no jurisdiction to try suits affecting immovable property, but under Chapter VII of the Presidency Small Cause Courts Act, the Small Cause Court has been given a special jurisdiction to pass orders for ejectment. Under s. 41 when a tenancy has been terminated and when the rent does not exceed Rs. 2,000, a landlord may obtain a summons against his tenant to show cause why possession should not be handed over to him, and under s. 43 the Small Cause Court may make an order in favour of the landlord ordering possession against his tenant. Under s. 48 the Code of Civil Procedure is made applicable to all proceedings under Chapter VII, and under s. 49 it is expressly enacted that the recovery of the possession of any immovable property under Chapter VII should be no bar to the institution of the suit in the High Court for trying the title thereto. Looking to the scheme of the Small Cause Courts Act and of Chapter VII it is clear that the proceedings taken by the defendant in order to eject his tenant were not a suit and the order that he obtained from the Small Cause Court for ejectment was not a decree.

    Mr. Laud has attempted to argue that as the order of the Small Cause Court was a final adjudication with regard to the party's rights, that adjudication must be looked upon as a decree. We are unable to accept that view. If one turns to the definition of a decree under the Civil Procedure Code, s. 2(2), decree is defined as the formal expression of an adjudication which, so far as regards the Court expressing it, conclusively determines the rights of the parties with regard to all or any of the matters in controversy in the suit and may be either preliminary or final. Therefore, a party's rights must be determined not in any proceedings but in a suit, before the result of the suit or the determination of the rights can become a decree. Mr. Laud relies upon various statutory provisions where a Court is enabled to pass a decree in certain proceedings. But those are, what one might call, statutory suits and statutory decrees and there is no provision in the Small Cause Courts Act itself which makes the order of ejectment under s. 43 a decree. It is perfectly clear, if one looks to the Civil Procedure Code, that the order passed by the Small Cause Court is not a decree. That is the view taken of the ejectment order by the Madras High Court in Hyder Ali v. Amirudin. That is also the view of our High Court as given expression to in three decisions: Ramkrishna v. Hap Dawood, Framroz Dosabhai v. Dalsukbhai Fulchand, and Bai Meherbai v. Pheroshaw Sorabji. In Ramkrishna v. Haji Dawood the divisional bench consisting of Sir Lawrence Jenkins, Chief Justice, and Mr. Justice Beamen, took the view that the proceedings in the Small Cause Court did not result in a decree, and in Framroz Dosabhai v. Dalsukhbai Fulchand and Bai Meherbai v. Pherozshaw Sorabji, the divisional benches also of this Court took the view that the proceedings under Chapter VII were not suits. If, therefore, the order of ejectment is not a decree, then the question is, which is the article of the Indian Limitation Act which is applicable. The learned Judge took the view that the suit was barred under art. 11A.

    Now, turning to art. 11A it is clear that applies to a suit filed by a person against whom an order is made for giving up possession to the holder of a decree. It cannot be said in this case that the plaintiff has filed this suit against the defendant, who has obtained possession from him under a decree. Order XXI, r. 103, makes it clear that the procedure under rr. 97 to 103 of that Order are all in the nature of a summary procedure, and r. 103 makes the order passed by the Court on an obstructionist notice conclusive subject to the result of any suit which a person affected by that order may file, and when the proceedings under O. XXI relate to the resistance to delivery of possession to a decree holder, then undoubtedly under art. 11A the suit is to be filed within a year from the date of the order. But in this case the resistance to delivery of possession by the plaintiff is not to a decree holder but to one who has obtained an order of possession passed by the Small Cause Court, and it is only by reason of s. 48 that rr. 97 to 103 of the Civil Procedure Code are made applicable to the obstructionist notice taken out by the defendant against the plaintiff. But while the provisions of the Code are made applicable, it cannot be said that art. 11A has also been made applicable to the case of a person obtaining an order from the Small Cause Court. It is an elementary principle of construction that the scope of the Limitation Act cannot be extended by implication, and a party's right to come to Court cannot be taken away unless the Limitation Act cannot be expressly provides that his right is so barred, and strictly construing art. 11A of the Indian Limitation Act, it is clear that it is only in the case of proceedings taken under a decree that art. 11A would apply. If, therefore, art. 11A does not apply, then this being a suit for a declaration either art. 120 or art. 144 would apply, and it is not disputed that in that case the plaintiff's suit would be within time. This view is in accord with the Madras decision to which I have already referred (Hyder Ali v. Amirudin).

    In my opinion, therefore, the learned Judge was wrong in coming to the conclusion that the plaintiff's suit was barred. We would, therefore, allow the appeal, set aside the order of dismissal passed by the learned Judge and remand the suit for disposal according to law.

    Bhagwati, J.:—Two questions arise for our determination in this appeal: (1) whether the suit is a suit under O. XXI, r. 103, Civil Procedure Code, and (2) whether art. 11A of the Indian Limitation Act applies to this suit.

    The proceedings were initiated under Chapter VII of the Presidency Small Cause Courts Act for recovery of possession of immovable property. They terminated so far as the Small Cause Court was concerned by an order passed in favour of the defendant on December 10, 1945. A civil revision application was filed against that order on December 22, 1945, which application was dismissed on February 17, 1947. This suit was filed on March 29, 1947, asking for a declaration that the plaintiff was a tenant in respect of the suit premises and as such tenant entitled to remain in possession thereof. So far as proceedings under Chapter VII of the Presidency Small Cause Courts Act are concerned, it has been held that they are neither a suit, nor an order passed as a result thereof a decree within the meaning of s. 2(2), of the Civil Procedure Code. They are merely proceedings which are initiated in the Small Cause Court by virtue of the provisions of Chapter VII thereof, and the best that can be said with regard to the same is that the result of these proceedings is an order in favour of the party, who obtains the same in his favour. The proceedings are not a suit, the order is not a decree, and it is too late in the day now to contend, in view of the various decisions of our High Court, which are reported in Ramkrishna v. Haji Dawood, Framroz Dosabhai v. Dalsukbhai Fulchand and Bai Meherbai v. Pherozshaw Sorabji, that these proceedings are a suit and the order made therein is a decree. Section 48 of the Presidency Small Cause Courts Act provides that in all proceedings under Chapter VII the Small Cause Court shall, as far as may be and except as therein otherwise provided, follow the procedure prescribed for a Court of first instance by the Code of Civil Procedure, and it is by virtue of this provision in s. 48 of the Act that the provisions of the Civil Procedure Code contained in O. XXI, rr. 97 to 103, are made applicable to these proceedings. If these provisions contained in O. XXI, rr. 97 to 103, are thus made applicable, it is clear in my opinion that the results which are laid down in r. 103 also do follow, that is, the order made these proceedings is conclusive, save for any suit which may be filed within the meaning of r. 103 itself. That is the suit which was filed by the plaintiff in order to have a declaration of his title in his favour, and it is clear therefore that this suit was a suit contemplated by and within the provisions of O. XXI, r. 103 of the Civil Procedure Code.

    The next point, therefore, to determine is whether art. 11A of the Indian Limitation Act would apply to the suit as filed. Curiously enough, when the matter came to be argued before the learned trial Judge, counsel on behalf of both the parties assumed that art. 11A applied, as appears from this passage from the judgment of the learned Judge himself:

    “There is no dispute that the period of limitation applicable would be under art. 11A of the Schedule to the Limitation Act, one year from the date of the order.”

    The only way in which the plaintiff wanted to get out of the bar of limitation was by arguing that the period which was taken up in the disposal of the civil revision application, which was filed on December 22, 1945, and was disposed of on February 17, 1947, should be excluded under s. 14 of the Indian Limitation Act. That contention was negatived by the learned trial Judge following a decision of Mr. Justice Patkar in Narayan v. Hari. That was the only contention which was urged before the learned trial Judge, and when the matter came to be argued by the appellant before us, the contention which was taken up by the appellant was that art. 11A of the Indian Limitation Act did not apply at all. No doubt, it being a point of law it is open to the appellant to urge the same. The fact, however, remains and it will be relevant when we come to decide the question of the costs that no such contention was raised by the appellant before the learned trial Judge.

    Considering, therefore, this aspect of the question, we have got to consider how far the terms of art. 11A of the Indian Limitation Act apply to the suit before us. Article 11A prescribes the period of limitation in respect of a suit by a person against whom an order has been made under the Code of Civil Procedure, 1908, upon an application by the holder of a decree for possession of immovable property, and the period of limitation prescribed is one year from the date of the order. It is an essential prerequisite to the application of this art. 11A that the order must have been made upon an application by the holder of a decree for possession of immovable property. We have got, therefore, to come to the conclusion, before the application of this art. 11A can be attracted, that the defendant in this case was a holder of a decree for possession of immovable property, but as I have pointed out before, the proceedings which were initiated in the Small Cause Court were neither a suit nor was the order a decree. If that was so, it could not be said that the defendant was the holder of a decree for possession of immovable property, and if he was not such holder of a decree, it could not be urged that the plaintiff was a person against whom an order had been made under the Code of Civil Procedure upon an application by the holder of a decree for possession of immovable property within the meaning of that article. Mr. Laud urged that the order which was made as a result of the proceedings initiated in the Small Cause Court was executable as a decree, if not a decree in terms of the defination thereof in s. 2(2) of the Civil Procedure Code. Even there the argument does not help the appellant at all. The terms of the Indian Limitation Act cannot be extended in this manner. The provisions have got to be strictly construed, and unless the defendant comes within the description of the holder of a decree for possession of immovable property, art. 11A cannot help the appellant at all. The case which was cited by Mr. Purshottam for the appellant, Hyder Ali v. Amiruddin, is a case on all fours with the present one, and I need not dilate any more on the propositions which have been laid down therein, except to say that we are in perfect accord with the reasoning of that decision. Following the reasoning of that decision it is clear that the present suit is not a suit which is covered by art. 11A of the Indian Limitation Act. If at all it would fall within art. 120 or art. 144 as the case may be, in which the suit which is filed is clearly within time.

    For the reasons above stated, therefore, I agree with the order proposed by my Lord the Chief Justice.

    Chagla, C.J:—As Mr. Purshottam has succeeded on a point which was not urged before the trial Court and which does not even find a place in the memo, of appeal here, we think the fairest order to make with regard to the costs would be that the costs of the appeal and the costs of the hearing will be costs in the cause.

    Attorneys for appellant: Satyendra & Co.

    Attorneys for respondent: Khanderao Laud & Co.

    Appeal allowed.
    A.J.P
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    Comments

    Madhavprasad Kalkaprasad Nigam v. S.G. Chanraverkar
    (Aug 24, 1948)