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The Maharashtra State Road Transport Corporation v. Raoji Hari Lad .

Bombay High Court
Apr 23, 1976
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Factual and Procedural Background

The present judgments arise from Special Civil Suit No. 48 of 1964 in the Court of the Civil Judge, Senior Division, Nasik. The plaintiff was an employee of the Maharashtra State Road Transport Corporation working as a cashier-cum-reservation clerk. His date of birth was 24 October 1905 and he was liable to retire on 24 October 1963 under the corporation's rules. He was, however, dismissed by the Corporation on 15 July 1953.

The plaintiff challenged the dismissal by filing Regular Civil Suit No. 257 of 1957 on 14 March 1957. That suit was dismissed by the trial judge on 26 August 1959. On appeal the appellate Court, by judgment and decree dated 12 December 1961, decreed the plaintiff's suit and declared that he continued to be in service until 14 March 1957, awarding arrears of salary and incidental reliefs. The Corporation preferred a Second Appeal (Appeal No. 440 of 1962) to this Court, which dismissed the appeal by judgment and decree dated 9 January 1964 (subject to a variation as to the amount of arrears).

Thereafter the plaintiff instituted Special Suit No. 48 of 1964 seeking recovery of Rs. 24,324.02 as arrears of pay, provident fund, gratuity, bonus and other benefits, or alternatively for accounts. The trial judge allowed part of the claim, decreeing Rs. 5,963.13 being emoluments for the period of three years prior to the date of the suit, but refused arrears prior to that three-year period. The Corporation appealed (First Appeal No. 381 of 1967) and the plaintiff also appealed (First Appeal No. 617 of 1969). The present opinion disposes of those companion appeals.

Legal Issues Presented

  1. Whether the Special Suit No. 48 of 1964 was barred by operation of the provisions of the Payment of Wages Act and the Rules framed thereunder (and/or the Minimum Wages Act and rules framed thereunder), as contended by the Corporation.
  2. Whether the plaintiff could claim exemption from the statutory period of limitation by invoking a general principle of suspension of limitation or right of action on account of the pendency of the Second Appeal in this Court.
  3. Whether the applicable limitation period for recovery of arrears of salary is the three-year period under Article 7 of the Limitation Act (corresponding to Articles 7 and 102 of the 1908 Act), as applied to the plaintiff's claim.

Arguments of the Parties

Appellant (Maharashtra State Road Transport Corporation)

  • Contended that the suit was barred under the provisions of the Payment of Wages Act and the Rules framed thereunder because the plaintiff had preferred an application under that Act which was pending in the Court of the Joint Civil Judge, Senior Division, Nasik.
  • The challenge included reliance on provisions of the Payment of Wages Act and also raised the provisions of the Minimum Wages Act (and rules framed thereunder) as relevant to the bar issue.

Respondent (Plaintiff)

  • Admitted that the claim was not advanced under Section 13 or Section 15 of the Limitation Act, but invoked a broader principle of “suspension of limitation or right of action” on equitable grounds.
  • Argued that because the Corporation preferred a Second Appeal to this Court (between 12 December 1961 and 9 January 1964), the period during which that appeal was pending should be excluded from the computation of limitation and that the plaintiff should not be deprived of claims for the earlier period for awaiting the decision in the Second Appeal.
  • Relied on judicial authority (a Division Bench decision of the Allahabad High Court in Murlidhar v. Ram Saran Das) supporting general suspension principles, while conceding there is contrary authority.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Murlidhar v. Ram Saran Das (AIR 1947 All 256) Held that even if Section 15 of the Limitation Act did not apply, the plaintiff could benefit from general principles of suspension of limitation or right of action where a party was prevented by circumstances from enforcing rights. The court noted this decision was relied on by the plaintiff's counsel but rejected its applicability. The court expressed inability to follow the Allahabad High Court's view in the light of the Limitation Act and higher authority.
Bachan Singh v. Dhian Dass ((1973) 2 SCC 109 : AIR 1974 SC 708) Noted by the Supreme Court in relation to the Murlidhar decision; the Supreme Court left open the question addressed by the Allahabad Division Bench. The opinion records that the Supreme Court noticed the Allahabad decision in this case but left the question open; the court treats that as not resolving the issue in favour of a general suspension principle.
Maqbul Ahmad v. Onkar Pratap Narain Singh (AIR 1935 PC 85) Authority rejecting the notion that courts possess a general discretion outside the statutory scheme of the Limitation Act to relieve litigants from the Act's provisions. The court relied on the Privy Council's observations to support its conclusion that no general discretionary power exists outside the express provisions of the Limitation Act and therefore general suspension cannot be invoked.
India Electric Works Ltd. v. James Mantosh ((1971) 1 SCC 24 : AIR 1971 SC 2313) Affirmed that questions of limitation must be decided by the provisions of the Limitation Act and courts cannot go beyond them. The court cited the Supreme Court's dictum to reinforce that the Limitation Act is a complete code and that courts may not travel beyond its provisions to create exceptions such as general suspension.
Sakal Deep Sahai Srivastava v. Union of India ((1974) 1 SCC 338 : AIR 1974 SC 338) Considered whether Article 102 (or 120) of the Limitation Act, 1908 applied to claims for arrears of salary and held that Article 102 applied. The court referred to this decision to support the proposition that claims for recovery of salary fall under the Article corresponding to Article 7 of the Limitation Act, 1963 (a three-year period), and applied Article 7 to limit the plaintiff's recovery to three years prior to the suit.
Shri Madhav Laxman Vaikunthe v. State of Mysore (AIR 1962 SC 8) Earlier decision referred to by the Supreme Court in the context of which the applicability of the Article to arrears of salary was considered. The court recorded that the Supreme Court in Sakal Deep Sahai referred to this earlier decision and used the line of authority to conclude Article 7 (corresponding Article) applied to salary arrears.

Court's Reasoning and Analysis

The court proceeded in two principal strands of analysis: (A) the Corporation's contention concerning statutory bars under wage legislation, and (B) the plaintiff's contention for suspension of limitation.

A. Payment of Wages Act / Minimum Wages Act issue

  • The Corporation argued the suit was barred because the plaintiff had an application pending under the Payment of Wages Act in the Court of the Joint Civil Judge, Senior Division, Nasik.
  • The trial judge addressed this point in paragraph 24 of his judgment, considered the relevant statutory provisions and answered the issues against the Corporation.
  • This Court reviewed the trial judge's reasoning, found no infirmity, and expressly held that, having regard to the Payment of Wages Act and the facts, the present suit was not barred by the provisions of the Payment of Wages Act or its Rules, nor by the provisions of the Minimum Wages Act or its rules.
  • Accordingly, the Court dismissed the Corporation's appeal on that ground.

B. Limitation / Suspension of Limitation issue

  • The plaintiff sought to avail himself of a general principle of suspension of limitation (equitable relief) because the Corporation had prosecuted a Second Appeal in this Court between 12 December 1961 and 9 January 1964.
  • The court first stated the Limitation Act (Limitation Act of 1963) is both codifying and amending, and is a complete code. Section 3 is peremptory and requires dismissal of suits outside the prescribed period; gateways or exceptions are only those provided expressly by Sections 4 to 24.
  • The court held that no independent or extraneous principle (i.e., a free-standing doctrine of general suspension of limitation or right of action) could be invoked to supplement, abrogate or nullify the Limitation Act where the Act does not provide for it.
  • To support that view the court relied on authoritative dicta: Privy Council in Maqbul Ahmad (rejecting implied discretion outside the Act) and the Supreme Court in India Electric Works (stating limitation questions must be decided by the Act and courts cannot travel beyond it).
  • The court noted that Article 7 of the Limitation Act (corresponding to Articles 7 and 102 of the 1908 Act) applied to the plaintiff's claim for arrears of salary, relying on Sakal Deep Sahai Srivastava in which Article 102 was held applicable to such claims.
  • Applying Article 7, the prescribed limitation period is three years; thus the plaintiff was entitled to recover arrears only for three years prior to the suit.
  • The court considered the pendency of the Corporation's Second Appeal but observed there was no stay of the appellate decree; therefore there was no reason the plaintiff could not have filed the present suit immediately after the appellate judgment. Even if it might have been imprudent to enforce the decree while an appeal was pending, that prudence cannot furnish a ground for exemption from the statutory limitation bar.
  • The court expressly rejected the plaintiff's submission that equitable hardship or special circumstances could obviate the statutory bar, and recorded its dissent from the contrary view taken in the Allahabad High Court decision in Murlidhar's case.

Holding and Implications

Core Ruling: Both First Appeals are dismissed; the judgment and decree of the trial Court are confirmed.

Direct consequences for the parties:

  • The trial court's decree in favour of the plaintiff for Rs. 5,963.13 (being emoluments for three years prior to the suit) is confirmed; the plaintiff is entitled to arrears for only the three-year period prescribed by Article 7 of the Limitation Act.
  • The plaintiff's prayer for arrears prior to that three-year period is rejected on limitation grounds.
  • There will be no order as to costs in both appeals, but because the plaintiff was unsuccessful on a technical plea of limitation, the court ordered that the court-fees payable on the appeals should be borne by the Corporation and a certificate should be issued to the Collector accordingly.

Broader legal implication(s):

  • The Court affirmed the view that the Limitation Act is a complete code and that courts cannot invoke a free-standing general principle of suspension of limitation or right of action unless such an exception is expressly or by necessary implication provided in the Limitation Act (Sections 4–24). The court rejected the extension of equitable relief to displace express statutory limitation provisions and expressly dissented from the contrary view in the Allahabad High Court's Murlidhar decision.

No other reliefs were granted. The appeals are finally disposed of by the orders stated above.

Show all summary ...

Mridul, J.:— These two companion appeals arise out of the judgment and decree dated 30th November, 1966, rendered in Special Civil Suit No. 48 of 1964, filed in the Court of the Civil Judge, Sr. Dn., at Nasik. By the said judgment and decree, the claim of the plaintiff was partially allowed against the defendant.

2. The plaintiff was an employee of the Maharashtra State Road Transport Corporation, (hereinafter referred to as “the said corporation”), and was working as a cashier-cum-reservation clerk. The date of birth of the plaintiff being 24th October, 1905, under the rules of the corporation, the plaintiff was liable to retire on 24th October, 1963. The plaintiff, however, was dismissed by the Corporation on 15th July, 1953. Aggrieved by the dismissal, the plaintiff filed a Regular Civil Suit No. 257 of 1957 on 14th March, 1957, inter alia claiming a declaration that the order of dismissal was wrong and for consequential reliefs. The said suit was dismissed by the learned trial Judge on 26th August, 1959. In appeal preferred therefrom, the appellate Court by its judgment and decree dated 12th December, 1961, decreed the plaintiff's suit. It gave a declaration in favour of the plaintiff that he continued to be in service till the date of the filing of the said suit i.e till 14th March, 1957. The appellate Court also granted a decree in favour of the plaintiff for arrears of salary and certain other incidental charges and costs of the suit. The matter did not rest there. The unsuccessful Corporation sought to have the appellate decree reviewed in appeal by this Court by preferring a Second Appeal being Appeal No. 440 of 1962. This Court, however, by its judgment and decree dated 9th January, 1964, dismissed the said Second Appeal, subject to a variation in the decree of the appellate Court as to the amount of arrears of pay. The said variation, however, is not material for the purposes of the present appeal.

3. The plaintiff filed the present suit being Special Suit No. 48 of 1964, inter alia for recovering a sum of Rs. 24,324-02 ps., being the amount payable to him as arrears of pay, provident fund, gratuity, bonus and other benefits as an employee of the Corporation. In the alternative, the plaintiff prayed for accounts in respect of the said claims. Several issues were raised before the learned Judge. Having regard to the limited con troversy that is raised before us, it is unneces sary to notice all the issues or the findings relating thereto. Suffice it to observe, that the learned Judge passed a decree in favour of the plaintiff for a sum of Rs. 5,963-13 ps. being the emoluments for the period of 3 years prior to the date of the suit. The learned Judge did not grant to the plaintiff arrears prior to the three years from the date of the suit. Aggrieved by the said judgment and decree, the Corporation filed the above mentioned First Appeal No. 381 of 1967. The plaintiff also preferred an appeal being the abovementioned First Appeal No. 617 of 1969, challenging the refusal of the learned Judge to grant him his claim over and above the one which was decreed in his favour. Shri C.J Sawant, the learned counsel for the Corporation, assails the decree on the ground that the suit was barred under the provisions of the Payment of Wages Act and the Rules framed thereunder. This chal lenge is based upon fact that the plaintiff had preferred an application under the said Act and the said application was pending in the Court of the Joint Civil Judge, Sr. Dn., Nasik. The learned Judge has in paragraph, 24 of his judgment dealt with the said contention exhaustively. After noticing the relevant provisions of law, the learned Judge answered the issues against the Corporation. We have carefully analysed the discussion of the learned Judge and we do not find any infirmity in the reasoning of the learned Judge. We are also of the opinion that having regard to the provisions of the Payment of Wages Act and the facts and circumstances of the instant case, it must be held that the present suit was not barred by any of the provisions of the Payment of Wages Act or the Rules framed thereunder or under the provisions of the Minimum Wages Act or the rules framed thereunder. No other point having been urged by the learned counsel for the Corporation we take the view that the appeal preferred by the Corporation is liable to be dismissed.

4. Shri N.G Gandhi, the learned counsel for the plaintiff, in support of the claims of the plaintiff for a period prior to three years from the date of the suit, fairly concedes that the plaintiff's case for exemption from the rigours of law of limitation is not based either on Section 13 or 15 of the Limitation Act. However, the learned counsel urges that the plaintiff, in the facts and circumstances of the case is entitled to “general principles of suspension of limitation or right of action.” The learned counsel emphasises that in view of the second appeal preferred by the Corporation, the plaintiff should not be denied his claims if he awaited the decision of this Court in the said second appeal. He asserts that the period which was taken for the disposal of the said Second appeal must be excluded from consideration and arrears of salary should be decreed upon the said footing. It is the submission of the learned counsel that in cases where a party is prevented by reason of certain valid circumstance from taking any action and enforcement of his right, the Courts relax the rigour of the bar of limitation on the principle of suspension of limitation or right of action.

5. Reliance is placed upon a Division Bench judgment of the Allahabad High Court in Murlidhar v. Ram Saran Das reported in AIR 1947 All 256. In that case after holding that the plaintiff therein was not entitled to the benefit of Section 15 of the Limitation Act, 1908, the Division Bench of the said High Court nevertheless took a view beneficial to the plaintiff therein on the basis of general principles of suspension of limitation or right of action in cases where a party is prevented under certain circumstances from taking action in enforcement of his rights. The learned counsel fairly concedes that there is cleavage of judicial opinion in regard to the said question. He is fair enough to draw attention to a judgment of the same High Court where a contra view was taken. The learned counsel also draws attention to the fact that the said judgment of the Allahabad High Court has been noticed by the Supreme Court in Bachan Singh v. Dhian Dass reported in (1973) 2 SCC 109 : AIR 1974 SC 708. After noticing the said decision of the Allahabad High Court, the Supreme Court, however, left the said question open.

6. We are unable to accept the sub mission of the learned counsel for the plaintiff that it is open to a Court of law to obviate the bar of limitation upon a general principle of suspension of limitation or right of action.

7. The Limitation Act is founded on public policy. The Limitation Act of 1963 is not only a codifying Act but also an amending Act. The provisions of the limitation act are a Code complete in themselves. Section 3 of the Limitation Act enjoins a Court to dismiss every suit, appeal or application which is not within the prescribed period. Gateways from the peremptory provisions of section 3 are provided by Sections 4 to 24. It follows from the provisions of the limitation act and the principles enshrined therein that no Court is entitled to invoke any principle for holding a claim as not barred by Law of Limitation if such a principle is not to be found expressly or by necessary implication in the provisions of the limitation act. No separate or independent principle can be invoked to add to or supplement, much less abrogate tr nullify the provisions of the limitation act. In our opinion, the Limitation Act is conclusive in what it provides and what it forbids. The Act does not confer any inherent powers in a Court to relieve a litigant from its rigour except in cases covered by Sections 4 to 24 thereof.

8. We are fortified in our, view by the observations of the Privy Council in Maqbul Ahmad v. Onkar Pratap Narain Singh reported in AIR 1935 PC 85. It was a case where the provisions of Section 14 of the Limitation Act, 1908 were invoked. The in vocation proved futile. The argument then was that there was a discretion in the Court to relieve litigants in cases of the hardship, from the operation of the Limitation Act. In repelling the said argument it was observed by the Privy Council at page 88 as follows:—

“In their Lordships' opinion it is impossible to hold that in a matter which is governed by Act, an Act which in some limited respects gives the Court a statutory discretion, there can be implied in the Court, outside the limits of the Act, a general discretion to dispense with its provisions.

9. It is to be noted that this view is supported by the fact that Section 3 of the Act is peremptory and that the duty of the Court is to notice the Act and give effect to it, even though it is not referred to in the pleadings.”

10. In a similar vein is the observation made by the Supreme Court in India Electric Works Ltd. v. James Mantosh reported in (1971) 1 SCC 24 : AIR 1971 SC 2313. The Supreme Court at page 2317 observed:

“x x x all questions of limitation must be decided by the provisions of the Act and the Courts cannot travel beyond them”.

11. It is not disputed before us that the article which is applicable to the plaintiff's claim in suit is Article 7 of the Limitation Act, 1963. The said Article corresponds to Articles 7 and 102 of the Act of 1908. A claim for recovery of salary under Art. 102 came up for consideration before the Supreme Court in Sakal Deep Sahai Srivastava v. Union of India reported in (1974) 1 SCC 338 : AIR 1974 SC 338. In that case the question that was posed before the Court was whether Article 102 or 120 of the Limitation Act, 1908 applied to a claim for arrears of salary. The Supreme Court referred its earlier decision in Shri Madhav Laxman Vaikunthe v. State Of Mysore, reported in AIR 1962 SC 8, and held that Article 102 of the Limitation Act applied to such a case.

12. Under Article 7, the period prescribed is 3 years. Consequently, the plaintiff was entitled to the arrears of salary for 3 years only from thei date of the suit. The plaintiff seeks exemption on the ground of pendency of the said second appeal in this Court between 12th December, 1961 and 9th January, 1964. It is true that the plaintiff cannot be denied his salary for the earlier period if the pendency of the said Second Appeal in this Court can be a relevant consideration. Since there was no stay of the operation of the decree of the First Appellate Court passed in his favour there is no reason why he could not file the instant suit immediately thereafter. At thd highest it might have been more prudent on his part not to have enforced his claims based on the said decree when it was under appeal in this Court, but it cannot furnish a ground for exemption from the lethal limitational bar.

13. It is difficult for us to follow the decision of the Allahabad High Court in Murlidhar's case (AIR 1947 All 256) (supra) having regard to the provisions of the Limi tation Act and the scheme thereof as also dicta of the Privy Council in Maqbul Ahmad's case (AIR 1935 PC 85) (supra) and of the Supreme Court in India Electric Works Ltd.'s case ((1971) 1 SCC 24 : AIR 1971 SC 2313) (supra), We respectfully dissent from the view taken by the Allahabad High Court. We have no hesitation in rejecting the contention that the plaintiff is entitled to relaxation of the rule of limi tation by reason of any hardship or special circumstances of the case. In our opinion, there can be no obviation of the bar of limitation on the ground of general suspension of limitation or right of action.

14. In the result, both the First Appeals are dismissed. The Judgment and decree of the trial Court are confirmed. There will be no order as to costs in both the appeals.

15. As the plaintiff is unsuccessful on a technical plea of limitation, we think, that the proper order to be made is that the court fees payable on the appeal should be borne by the Corporation. Accordingly, the court-fees payable on appeal should be recovered from the Corporation, and a certificate should be issued to the Collector accordingly.

16. Appeals dismissed.