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  • Section 205(1) of the Government of India Act, 1935. Mukherjea
  • Section 205(1) of the Government of India Act.
  • Section 19 of the Indian Arbitration Act
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Citation Codes
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citation codes
Case Number
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  • Section 205(1) of the Government of India Act, 1935. Mukherjea
  • Section 205(1) of the Government of India Act.
  • Section 19 of the Indian Arbitration Act
Smart Summary

Factual and Procedural Background

This is an application for leave to appeal to the Supreme Court against the decision of this Court in Appeal No. 698 of 1948. The underlying litigation began as a suit for partition instituted by the respondent in the Court of the Subordinate Judge at Narasapur. The present petitioner (the first defendant in the suit) and his wife (the second defendant) were defendants in that suit. The plaintiff alleged that he had been taken in adoption by the defendants on 7 April 1932 and, as an adopted son, claimed a half share in the family properties.

The first defendant had, on 6 July 1940, sold some of the suit properties to the second defendant by a sale deed (Ex. D-7) and had settled other properties on her by a settlement deed dated 25 October 1944 (Ex. D-10). The plaintiff maintained that those deeds were not binding on him and that he was entitled to a half share in the properties comprised in those deeds. The defendants denied the adoption, asserted the validity and binding character of Exs. D-7 and D-10, pleaded limitation and raised several other defences. Twenty-five issues were ultimately framed; of these issues 1–3 (limitation, adoption, and twelve years' exclusion/adverse possession) were treated as preliminary.

The Subordinate Judge held for the plaintiff on issues 1 and 3 (limitation aspects) but found that the plaintiff had not proved the adoption (issue 2) and dismissed the suit. The plaintiff appealed to this Court (Appeal No. 698 of 1948). In a judgment dated 12 November 1952 this Court differed from the Subordinate Judge and held that the plaintiff had established his adoption; however, agreeing with the Subordinate Judge on the limitation point, the Court remanded the case for trial of the remaining issues. The petitioner (first defendant) filed the present petition seeking leave to appeal to the Supreme Court against that order of remand. The central procedural question raised is whether the remand order of 12 November 1952 is a "final order" within Article 133 of the Constitution and therefore appealable.

Legal Issues Presented

  1. Whether the order of this Court dated 12-11-1952 (which held the plaintiff to be adopted but remanded the suit for trial of other issues) is a "final order" within the meaning of Article 133 of the Constitution and therefore appealable to the Supreme Court.
  2. Whether the word "judgment" in Article 133 of the Constitution can be read in the sense of the definition of "judgment" in Section 2(9) of the Civil Procedure Code (i.e., the statement of reasons given by a judge) so as to make the said order appealable as a "judgment" even if it is interlocutory in character.

Arguments of the Parties

Petitioner's Arguments (as recorded)

  • The petitioner (through Mr. P. M. Srinivasa Aiyangar) argued that because this Court decided issue 2 in favour of the plaintiff (finding that the plaintiff had been adopted by the defendants), the judgment was in effect final: on that finding the plaintiff would be entitled to a half share in the family properties and therefore the order should be appealable as a final order under Article 133.
  • The petitioner attempted to distinguish prior authorities which treated remand orders as interlocutory by arguing that many of those authorities dealt with preliminary findings of law, whereas the present case involved a preliminary finding of fact (adoption) based on evidence; the petitioner contended that this factual determination should make the order final.
  • The petitioner further contended that even if the order were not a "final order", it should be appealable as a "judgment" under Article 133 because the term "judgment" should be read in the sense of Section 2(9) of the Civil Procedure Code (i.e., the judge's statement of reasons), which would bring the present decision within Article 133.

Other Parties

The opinion does not contain a detailed account of the respondent's separate submissions on the application for leave. The Court's reasoning reflects the legal positions it adopted in response to the petitioner's arguments and the authorities cited.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Firm Ramchand Nanjimal v. Firm Goverdandas Vishandas Ratanchand, AIR 1920 PC 86 The test of finality: an order is final only if it finally disposes of the rights of the parties; remand orders that leave rights to be determined later are not final. Relied upon as establishing the fundamental test of finality; used to support the conclusion that the remand order was not final because it left substantive rights to be determined later.
Abdul Rahman v. D.K. Cassim & Sons, AIR 1933 PC 58 Reiterated the principle that a preliminary decision which leaves the suit alive and its rights to be determined is not a "final order" for appeal purposes. Applied to show that even important or vital preliminary decisions do not amount to finality if the suit remains to be tried; the Court treated this authority as supporting non-appealability of remand orders.
Kuppuswami Rao v. The King, AIR 1949 FC 1 To be final, an order must determine points in dispute so as to dispose of the proceedings; interlocutory determinations which leave proceedings to continue are not final. Followed as authority reinforcing the test of finality; used to support the conclusion that the order of remand was interlocutory.
Mohamed Amin Bros. Ltd. v. Dominion of India, AIR 1950 FC 77 Decision that an order deciding an important issue is not final if the proceeding remains alive and must be tried in the ordinary way. Relied on to emphasize that importance or vitality of an issue does not make an order final where the suit continues; used to reject petitioner's contention.
Ramaswami Chettiar v. Official Receiver Ramanathapuram, AIR 1951 Mad 1051 Adopted the general principle that finality requires final disposition of parties' rights. Referenced as a decision of this Court applying the established principle on finality; supports the Court's conclusion.
Chandanmull & Co. v. Mohanlal M. Mehta, AIR 1953 Mad 727 Applied the test of finality — an order must finally dispose of rights to be appealable as final. Referenced as another local authority adopting the same principle and reinforcing the Court's position.
Saiyid Muzhar Hossain v. Mst Bodha Bibi, 17 All 112 (Privy Council) Held that where a decision resolves the "cardinal point" of the suit (here the validity of a will) so that the point cannot be disputed again, the order may be final despite subordinate inquiries remaining. Considered and distinguished. The Court noted the case but distinguished it on the basis that it was decided under the old CPC (1882) whose provisions differed materially from the Code of 1908; consequently it did not support the petitioner's contention under the present law.
Sriramamurthi Naidu v. Satyanarayana Naidu, AIR 1949 Mad 220 Distinguished Saiyid Muzhar Hossain and held that reversal of a preliminary finding of fact depending on evidence, followed by remand, does not create a final order. Followed by the Court as directly applicable and as authority against the petitioner's argument that a factual preliminary finding should render the order final.
Mangayya v. Venkataramanamurthi, AIR 1919 Mad 893 Referenced in the context of arguments about appealability under older practice; relied upon by petitioner in submissions. Mentioned as part of the authorities relied upon by petitioner; the Court treated the body of authorities and distinctions and did not accept that they rendered the remand order final under the present law.
AIR 1935 P.C. 54 Cited in the course of distinguishing earlier Privy Council authority decided under the old procedural code. Used in the Court's reasoning to support the view that earlier Privy Council authority under the pre-1908 CPC does not control the appealability question under the present Code and Constitution.
AIR 1950 FC 77 (Federal Court decision cited on "judgment") Held that the word "judgment" in the relevant constitutional provision is used in the sense of a decree or order (i.e., final determination), not in the technical CPC sense of a judge's statement of reasons. Applied to reject the petitioner's contention that the Court's reasons (i.e., the judge's statement) could be treated as a "judgment" appealable under Article 133 even if the order were interlocutory.

Court's Reasoning and Analysis

The Court identified the narrow legal question raised by the petition: whether its judgment dated 12 November 1952 — which found that the plaintiff had been validly adopted but remanded the suit for trial of other issues — was a "final order" within Article 133 of the Constitution and therefore appealable to the Supreme Court.

The Court proceeded by stating and applying the established test of finality: an order is final only if it "finally disposes of the rights of the parties" in the suit. The Court surveyed a line of authorities (Privy Council, Federal Court and decisions of this Court) which consistently applied that test and reiterated the principle that the mere decision of an important or vital issue does not make an order final if the suit remains "alive" and requires trial on other substantial issues.

Applying that test to the facts before it, the Court observed that the finding of adoption, although important, did not finally dispose of the rights in dispute because other substantial questions remained unresolved — specifically the validity and binding effect of sale deed Ex. D-7 (6-7-1940) and settlement deed Ex. D-10 (27-10-1944), which were the subject of issues 4, 5 and 6. Until those issues were determined, a final adjudication of the parties' rights could not be made and a preliminary decree for partition could not properly be entered. For that reason the Court concluded that its judgment was interlocutory, not final.

The Court rejected the petitioner's attempt to distinguish precedent on the basis that the present case involved a factual finding (adoption) rather than a question of law. The Court held that the distinction between fact and law is immaterial for the finality inquiry: what matters is whether the order leaves the suit alive and the rights of the parties yet to be determined.

The Court considered the Privy Council decision in Saiyid Muzhar Hossain v. Mst Bodha Bibi (where a decision on a cardinal point was held final despite subordinate inquiries), but distinguished it on procedural grounds — namely that it was decided under the old Civil Procedure Code, 1882, whose relevant provisions differed materially from those of the later Code; and it noted that Indian appellate courts have treated that Privy Council decision as not controlling under the present law. The Court followed the local decisions (including Sriramamurthi Naidu) which rejected the petitioner's reliance on Saiyid Muzhar Hossain.

Finally, addressing the alternative contention that the order should be appealable as a "judgment" (because "judgment" might be read in the narrower CPC sense of a judge's statement of reasons), the Court relied on a Federal Court authority holding that the term "judgment" in the constitutional context is to be read as equivalent to a decree or final order (i.e., a final determination of rights), and not merely the statement of reasons under Section 2(9) of the CPC. Consequently, an interlocutory judgment or order is not brought within Article 133 by such a semantic reading.

Holding and Implications

Holding: The Court held that the judgment dated 12-11-1952 is not a final order within the meaning of Article 133 of the Constitution and is further not a "judgment" for the purposes of Article 133 in the sense that would render it appealable. The petition for leave to appeal to the Supreme Court was dismissed.

Immediate consequences for the parties: The consequence of the Court's holding is that the remand order stands and the underlying suit must proceed in the Subordinate Court on the remaining issues (including the validity and binding effect of Exs. D-7 and D-10). The petition for leave to appeal to the Supreme Court was dismissed with costs.

Broader implications: The opinion applies and reiterates existing authorities on the test of finality (that appealability under the constitutional provision depends on whether the order finally disposes of the parties' rights). The opinion does not purport to create a new principle of law beyond the established test; it follows precedent in concluding that an order which leaves the suit alive for determination of substantial issues is interlocutory and not appealable under Article 133.

    Mulugu Raghavacharyulu v. Mulugu Sri Venkata Ramanuja Charyulu And Others

    Venkatarama Aiyar, J.:— This is an application for leave to appeal to the Supreme Court against the decision of this Court in App. No. 698 of 1948. That appeal arose out of a suit for partition instituted by the respondent in the Court of the Subordinate Judge of Narasapur. The present petitioner was the first defendant in the suit. His wife was the second defendant. The plaintiff alleged that he had been taken in adoption by the defendants on 7th April, 1932 and that as adopted son he was entitled to a half share in the family properties. On 6-7-1940 the first defendant had sold some of the suit properties to the Second defendant under Ex. D-7 and settled other properties on her on 25-10-1944 under Ex. D-10. The plaintiff contended that these deeds were not binding on him and that he was entitled to a half share in the properties comprised in those deeds. The defendants contested the suit on several grounds. They denied that they took the plaintiff in adoption. They contended that the deeds Exs. D-7 and D-10 were valid and binding on him. They also pleaded that the suit was barred by limitation. They raised several other pleas. On these pleadings, as many as 25 issues were framed.

    2. Of these, issues 1 to 3 are alone now material. They are as follows:

    “1. Whether the suit is barred by limitation because it is filed more than three years after plaintiff attained majority?

    2. Whether defendants 1 and 2 adopted plaintiff on 7-4-1932 as alleged?

    3. Whether the claim of plaintiff, if true, is defeated by exclusion for 12 years or adverse possession of first defendant?”

    3. At the hearing of the suit, these issues were fried as preliminary issues. The Subordinate Judge held in favour of the plaintiff on issues 1 and 3 on the question of limitation. But he held on the second issue that the plaintiff had not proved the adoption set up by him. On that he dismissed the suit. The plaintiff preferred an appeal against that decision to this court, appeal No. 698 of 1948, and in our judgment dated 12-11-1952, we held, differing from the Subordinate Judge, that the plaintiff had established his adoption. Agreeing with the Subordinate Judge on the question of limitation, we remanded the case for trial of the other issues. The first defendant has filed the present application for leave to appeal to the Supreme Court against this order. The point for decision is whether the order of remand dated 12-11-1952 is a final order within the meaning of Art. 133 of the Constitution. It is contended by Mr. P.M Srinivasa Aiyangar, the learned advocate for the petitioner, that as we have decided on issue 2 that the plaintiff was adopted by defendants 1 and 2, our judgment would be a final order, because on that finding the plaintiff would be entitled to a half share in the family properties. But the truth of the adoption was not the only question in controversy between the parties. If that had been so, on our finding on issue 2, we should have passed a preliminary decree for partition, and that would have been open to appeal as a decree under Art. 133. There are other and substantial questions on which the parties are at Issue. For example, the plaintiff contends that the sale deed, Ex. D-7, dated 6-7-1940 and the settlement deed Ex. D-10 dated 27-10-1944 are not binding on him. The defendants, however, plead that they are valid and binding on him. I Issues 4, 5 and 6 relate to this contention. Unites these issues are determined, there cannot be a final adjudication of the points in dispute in the suit. No doubt the issue as to adoption is an important one, and by reason of our finding on that issue, one obstacle to the plaintiff obtaining a decree is removed. But before he can obtain a preliminary decree for partition, other issues also must be determined. Therefore, our judgment is interlocutory in character, not final.

    4. There is considerable and high authority interpreting the precise meaning of the words “final order”. In — ‘Firm Ramchand Nanjimal v. Firm Goverdandas Vishandas Ratanchand’, AIR 1920 PC 86 (A), the question arose with reference to an order passed under the Indian Arbitration Act. The defendant in an action applied for stay under Section 19 of the Indian Arbitration Act and that was granted. The Judicial Commissioner of Sind set aside that order and remanded the case for disposal on the merits. Leave to appeal against his order was granted on the ground that it was a final order. Before the Privy Council, an objection was taken that the order under appeal was not a final order. In upholding this objection, Viscount Cave, after referring to the English authorities on the subject, observed as follows:

    “The effect of those and other judgments is that an order is final if it finally disposes of the rights of the parties. The orders now under appeal do not finally dispose of those rights, but leave them to be determined by the courts in the ordinary way. In their Lordships' view, the orders were not final, and accordingly the appeals cannot proceed.”

    5. In — ‘Abdul Rahman v. D.K Cassim & Sons’, AIR 1933 PC 58 (B), the facts were these: The firm of Cassim and Sons had filed a suit for damages against the defendants on the ground that they had conspired to ruin their business. Pending the action, the plaintiffs were adjudicated insolvents. The Official Assignee declined to continue the action, and thereupon Cunliffe J. dismissed the action on the ground that the cause of action had vested in the Official Assignee and that the plaintiffs could not continue the suit. That order was set aside on appeal by Page C.J and Das J. on the ground that the cause of action was personal to the insolvents, and did not pass to the Assignee. The learned Judges however granted leave to appeal to the Privy Council against this order on the ground that it was a final order.

    6. An objection having been raised that this was not a final order and therefore not appealable under Section 109 of the CPC, Sir George Loundes, after reviewing the authorities, held that the preliminary objection was well founded and that the order in question was not a final order. He observed:

    “It remains to consider whether the order in question was a ‘final order’ within the meaning of S. 109(a) and this question is, their Lordships think, concluded by the judgment of this Board delivered by Lord Cave in) — ‘AIR 1920 PC 86 (A)…… Lord Cave, in delivering the judgment of the Board laid down, as the result of an examination of certain cases decided in the English Courts, that the test of finality is whether the order ‘finally disposes of the rights of the parties’, and be held that the order then under appeal did not finally dispose of those rights, but left them ‘to be determined by the courts’ in the ordinary way’.

    It should be noted that the appellate court in India was of opinion that the order it had made ‘went to the root of the suit, namely, the jurisdiction of the court to entertain it’, and it was for this reason that the order was thought to be final and the certificate granted. But this was not sufficient. The finality must be a finality in relation to the suit. If, after the order the suit is still a live suit in which the rights of the parties have still to be determined, no appeal lies against it under S. 109(a) of the Code…… The effect of the order from which it is here sought to appeal was not to dispose finally of the rights of the parties. It no doubt decided an important, and even a vital, issue in the case, but it left the suit alive and provided for its trial in the ordinary way.”

    7. This question came up for consideration by the Federal Court in — Kuppuswami Rao v. The King’, AIR 1949 FC 1 (C). There, one Kuppuswami Rao had been charged with criminal misappropriation of funds and with signing false certificates of payments of cheques. While the trial was actually in progress, he raised objections to the maintainability of the prosecution on the ground that the consent of the Governor had not been obtained for the institution of criminal proceedings and that the requirements of Section 197 of the Cr PC had not been complied with. This court overruled the objections and dismissed the application with the result that the trial had to go on before the Magistrate. Against that order, the accused preferred an appeal to the Federal Court. Kania C.J after referring to the authorities, English and Indian on the point, held that to constitute a final order there must be such a determination of the points in dispute as would dispose of the proceedings.

    8. The question was again considered by the Federal Court in — ‘Mohamed Amin Bros. Ltd. v. Dominion of India’, AIR 1950 FC 77 (D). The question for determination there was whether an order passed in the course of winding up proceedings was a final order as defined in Section 205(1) of the Government of India Act, 1935. Mukherjea J. delivering the judgment of the Court, held that it was not a final order, and after considering the authorities, observed;

    “The fact that the order decides an important and even a vital issue is by itself not material. If the decision on an issue puts an end to the suit, the order will undoubtedly be a final one, but if the suit is still left alive and has got to be tried in the ordinary way, no finality could attach to the order.”

    9. It is, therefore, well settled that an order can be held to be a final order only if it finally disposes of the rights of the parties in the suit or proceeding. It is this principle that was adopted by this Court in the decisions in — ‘Ramaswami Chettiar v. Official Receiver Ramanathapuram’, AIR 1951 Mad 1051 (E), and ‘Chandanmull & Co. v. Mohanlal M. Mehta’, AIR 1953 Mad 727 (F).

    10. On the same principle, it has been held that when an action is dismissed by the court of first instance on the ground that it is barred by limitation or that it is ‘res judicata’ or that it is barred by Or. II rule 2 or that the suit is not maintainable and the dismissal is reversed on appeal and the case remanded for trial on the merits, the order is not a final one within the meaning of S. 109. Judged by these tests, the order sought to be appealed against will only be an interlocutory order and not a final order.

    11. Mr. P.M Srinivasa Aiyangar sought to distinguish the above authorities on the ground that the preliminary findings in the above cases were on questions of law; but that where the determination was on a question of fact depending upon evidence the order must be held to be final. On principle, it is difficult to see now it will make a difference whether the preliminary finding is on an issue of fact or law, so long as that finding leaves the suit alive and undisposed of. The strongest case in support of the contention of the petitioner is the decision of the Privy Council in — ‘Saiyid Muzhar Hossain v. Mst Bodha Bibi’, 17 All 112 (G). There, the plaintiff filed a suit to recover certain properties on the-ground that he had purchased them from certain persons who were entitled to them under a will of one Ibn Ali. The defendants disputed the will and raised other contentions besides. The subordinate Judge held that the will was not valid and dismissed and action without trying the other issues.

    12. On appeal by the plaintiff the High Court of Allahabad upheld the will and remanded the case for disposal on the other issues. The defendant applied for leave to appeal to the Privy Council but that was refused by the High Court on the ground that the order of remand was not a final order. The defendant moved the Privy Council for grant of leave and contended that the order in question was a final order and was-appealable under Section 595 of the CPC of 1882. This contention was upheld. Lord Hobhouse observed:

    “In this case the Will of Ibn Ali is the cardinal point of the suit, and as after the decision of the High Court that can never be disputed again, their order is final, notwithstanding, that there may be subordinate inquiries to make.”

    13. In AIR 1933 P.C 58 (B), this decision was relied on in support of the contention that the order which was there under appeal was a final order. But it was distinguished on the ground that the case was decided with reference to the Civil Procedure Code, 1882 in which the wording of the relevant section differed materially from that of the Code of 1908 and that, under the latter Code the order would not have been, appealable. This observation goes directly against the contention of the petitioner. This question was considered by this court in — ‘Sriramamurthi Naidu v. Satyanarayana Naidu’, AIR 1949 Mad 220 (H). There, the subordinate Judge dismissed a suit for partition on the ground that there had been a prior suit for partition. On appeal, this court came to the conclusion that there was no prior partition and remanded the case for trial on the other issues. An application was filed for leave to appeal to the Federal Court on the ground that the older of the High Court was a final order. Reliance was placed on the decision in — ‘17 All 112 (P.C) (G)’, as also on the decision in Mangayya v. Venkataramanamurthi’, AIR 1919 Mad 893 (I).

    14. Horwill and Panchapagesa Sastri JJ. distinguished the case in — ‘17 All 112 (P.C) (G), as one under the old Civil Procedure Code, and held, following the observations in — ‘AIR 1935 P.C 54 (B), that the order was not appealable as a final order. As the reversal in this case was of a preliminary finding of fact depending on evidence it is a direct authority against the contention of the petitioner. Following these authorities, we must hold that the order of this court dated 12-11-1952 is not a final order open to appeal under Art. 133 of the Constitution.

    15. Mr. P.M Srinivasa Aiyangar also raised the contention that even if the judgment dated 12-11-1952 was not a final order, it would be appealable as a judgment under Art. 133.

    16. This argument is based on the view that the word “judgment” is used in Art. 133 of the Constitution in the sense which it bears under the definition in Section 2(9) of the CPC and that it means “the statement given by the judge of the ground of a decree or order”. But it has been held by the Federal Court in — ‘AIR 1950 FC 77 (D)’ that the word “judgment” in Art. 133 is used in the sense of a decree or order and not in the sense in which it is used in the Civil Procedure Code.

    17. Mukherjea J. observed:

    “Lastly it was urged by Mr. Setalvad, though somewhat faintly, that even if the order appealed against is not a final one, it could still be regarded as a judgment, and as such would come within the purview of Section 205(1) of the Government of India Act. In English Courts, the word ‘judgment’ is used in the same sense as a decree in the Civil Procedure Code and it means the declaration or final determination of the rights of the parties in the matter brought before the Court: Vide — ‘AIR 1949 FC 1 (C)’. According to the definition given in the Civil Procedure Code a judgment is the statement of reasons given by a Judge on which a decree or order is based. If the order which is made in this case is an interlocutory order, the judgment must necessarily be held to be an interlocutory judgment, and the collocation of the words “judgment, decree or final order” in Section 205(1) of the Government of India Act makes it clear that no appeal is provided for against an interlocutory judgment or order.”

    18. We accordingly hold that our judgment dated 12-11-1952 is not a judgment for the purpose of Art. 133. In the result, this petition fails and is dismissed with costs.

    A/D.H.Z

    19. Petition dismissed.

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    Mulugu Raghavacharyulu v. Mulugu Sri Venkata Ramanuja Charyulu And Others
    (Jul 30, 1953)