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Judgment Summary — H.L. Anand, J.

Factual and Procedural Background

The petitioner (an appellant in the underlying appeal) filed this petition under Article 227 of the Constitution of India challenging an order of the appellate court which declined to grant an ex-parte interim injunction while admitting the appeal. The dispute arises from a leasehold piece of land on Deshbandhu Gupta Road, Paharganj, where the petitioner and other stall-holders had a structure that was destroyed in a fire in March 1972 and later repaired.

The Corporation issued a demolition order in respect of the structure. The petitioner challenged the demolition notice before the Additional District Judge and succeeded; the matter was remanded to the Corporation for decision after giving the petitioner an opportunity to be heard. The Corporation asked the petitioner to attend the office of the Zonal Engineer on 22 March 1974 with documentary evidence; the petitioner alleges the Zonal Engineer was not available and that the demolition order was issued without affording him an opportunity to be heard. The Stall Holders Association sent a representation dated 28 March 1974 protesting the action.

In April 1974 the petitioner filed a suit for a permanent injunction restraining demolition on the ground that Section 343 of the Delhi Municipal Corporation Act had not been complied with (no opportunity of being heard and no service of the order). An interlocutory application for an interim injunction was dismissed by the trial court on 6 September 1975, which found that the petitioner had been given an opportunity of being heard and that the demolition notice had been served; the trial court held the suit was barred by Section 343(4) since the demolition notice was not illegal or without jurisdiction.

The appellate court admitted the appeal to regular hearing but declined to grant an ex-parte interim injunction on the ground that "prima facie there is no ground" for such injunction. The petitioner challenged that appellate order by this petition under Article 227.

Legal Issues Presented

  1. Whether the appellate court erred in refusing to grant interim protection (an ex-parte injunction) while admitting the appeal to a regular hearing.
  2. Whether the trial court exceeded its limited function at the interlocutory stage by deciding contested questions of fact (i.e., whether the petitioner was given an opportunity of being heard and whether the demolition notice was served), instead of determining only whether a prima facie case requiring investigation was made out.
  3. Whether the suit was barred by Section 343(4) of the Delhi Municipal Corporation Act (i.e., whether the demolition order had been made in accordance with Section 343(1) so as to render the suit not maintainable), as a matter capable of determination at the interlocutory stage.

Arguments of the Parties

Petitioner's (Appellant's) Arguments

  • The appellate court's order is not a speaking order and gives no reasons why there was "no ground" for an injunction.
  • The trial court transgressed its function at the preliminary stage by deciding issues of fact instead of deciding whether there was a prima facie case requiring investigation at trial.
  • The trial court erred in expecting documentary proof at the interlocutory stage when such proof and evidence can only properly be adduced at trial.
  • The trial court's finding that the demolition notice was served and that the petitioner had replied was incorrect and appeared to be based on confusion, because the Corporation's case was that the notice had been pasted outside the shop and there was no case of a personal service or a reply sent.

Corporation's (Respondent's) Arguments

  • The orders of the trial court and appellate court are justified on the grounds stated by the trial court (that the petitioner had not established non-compliance with Section 343(1)).
  • Since the trial court returned definite findings that the requirements of Section 343(1) had been satisfied, the suit was not maintainable under Section 343(4), and this court should not exercise its superintendence to interfere.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Gopal Krishan Kapoor v. Ramesh Chander Nijhawan, I.L.R. 1974 1 Delhi 253 Explained the meaning of "prima facie case" and the limited function of a court when considering an application for interim protection — namely, to determine whether the material placed before the court requires investigation and not to decide contested issues of fact or pre-judge the plaintiff's case. The court relied on this precedent to hold that the trial court had transgressed its function by deciding questions of fact at the interlocutory stage and that the appellate court's refusal to grant interim protection without reasons was unjustified where the appeal had been admitted to regular hearing.

Court's Reasoning and Analysis

The court began by recalling the legal principle from Gopal Krishan Kapoor (supra) regarding the limited role of a court when considering whether a plaintiff has a prima facie case for interim protection. The principle states that the court's function at that stage is limited to deciding whether the material before it requires investigation and that it must not subject the plaintiff's material to close judicial scrutiny or decide contested factual issues — doing so would amount to pre-judging the case.

Applying that principle, the court examined the allegations and material placed before the trial court: the petitioner's claim that he and other stall-holders attended at the Zonal Engineer's office with documentary evidence but the Zonal Engineer was not available; the Association's representation (dated 28 March 1974) which recorded those allegations; and the petitioner's assertion that the demolition order was not served on him.

The trial court had gone beyond the appropriate interlocutory scrutiny by making findings on whether the petitioner had attended the Zonal Engineer's office and whether service of the demolition notice had occurred. The appellate court, while admitting the appeal to regular hearing, refused an interim injunction without giving reasons. The court found that refusal incompatible with admitting the appeal: if an appeal against an interlocutory order refusing injunction is admitted to hearing, ordinarily interim relief should be given to protect the status quo pending adjudication, otherwise an appellant may be deprived of effective relief if demolition is carried out before the appeal is decided.

The court also addressed the contention that it should not interfere under its superintendence because the trial court made findings of fact. It held that when the trial court transgresses its limited jurisdiction at the interlocutory stage by deciding contested facts, that error is a jurisdictional one and warrants interference under Article 227; the proper function at that stage was only to ascertain whether a case requiring investigation had been made out.

Given these considerations, and the parties' agreement at the conclusion of the hearing that injunctive relief could be extended until the suit is decided (and that the suit should be disposed of on a time-bound schedule), the court concluded that the petitioner must succeed.

Holding and Implications

PETITION ACCEPTED; INTERIM INJUNCTION GRANTED

Direct holding and orders:

  • The petition under Article 227 is accepted.
  • The impugned orders of the trial court and of the first appellate court are set aside.
  • The petitioner is granted the injunction as prayed until the decision of the suit (i.e., interim protection continues through the trial).
  • The appeal filed by the petitioner is rendered infructuous and is consigned to the records.
  • The trial court is directed to hear and decide the suit within four months. The petitioner agreed to produce his entire evidence on any date fixed for that purpose, and no adjournment will be granted for the petitioner's evidence; the petitioner may, however, seek the aid of the court's process to produce evidence.
  • No costs are awarded in the circumstances of the case.

Implications:

The immediate effect is preservation of the status quo by restraining the Corporation from demolishing the structure until the suit is decided. The decision does not purport to decide the substantive merits of the suit on the question whether Section 343(1) was complied with; rather, it restores the correct interlocutory approach (i.e., the requirement of a prima facie case) and prevents pre-judgment of factual questions at the interlocutory stage. The judgment also directs expedited trial so that the substantive issues are determined on evidence within the prescribed timeframe.

    Sahib Dayal Chaman Lal v. Municipal Corporation Of Delhi .

    H.L Anand, J.:— By this petition under Article 227 of the Constitution of India, the petitioner, an appellant in the appeal out of which it has arisen, challenges an order of the appellate court declining to grant ex-parte injunction to the appellant even while admitting to hearing the appeal of the appellant against the order of trial court, dismissing an application of petitioner for an injunction to restrain the Corporation from demolishing the premises in dispute during the pendency of this suit for a permanent injunction.

    2. According to the petitioner, the petitioner obtained on lease a piece of land on Deshbandhu Gupta Road, Paharganj, on which a structure was raised, which was destroyed in March 1972 in a fire which devastated a large number of other structures in the vicinity.

    3. According to the petitioner, the super-structure was repaired by the petitioner and a large number of other stall holders who were members of the stall holders Association, on the assurance of the authorities, and when the super-structure was sought to be demolished, the petitioner challenged the notice of demolition before the Additional. District Judge in appeal which was eventually accepted and the matter was remanded to the Corporation for decision according to law after giving the petitioner an opportunity of being heard. Pursuant to the aforesaid direction, the petitioner was asked by the Corporation to appear before the Zonal Engineer on March 22, 1974 along with the documentary evidence in support of his contention. According to the petitioner, the petitioner along with a number of other affected stall holders went to the office of the Zonal Engineer, but the Zonal Engineer was not available until 4 P.M on which the petitioner and the other stall holders called on the Chairman of the Sub Zonal Committee of the Corporation and apprised him of the fact. According to the petitioner he came to know that a demolition order had been issued on which the Association sent a letter of March 28, 1974 to the Corporation protesting against the action and seeking opportunity for its members of being heard. In April 1974, the petitioner filed the suit, out of which the petition arose, praying for a permanent injunction restraining the Corporation from demolishing the structure, inter alia, on the ground that the threatened demolition was contrary to law inasmuch as the petitioner had neither been given an opportunity of being heard nor had the order of demolition been served on the petitioner as required by Section 343 of the Delhi Municipal Corporation Act. Along with the suit, the petitioner filed an application for an interim injunction seeking to restrain the Corporation from demolishing the structure during the pendency of this suit. By an order of September; 6, 1975, the trial court dismissed the application after notice to the Corporation and after hearing the parties on the ground, repelling the contention of the petitioner to the contrary, that the petitioner had been granted a reasonable opportunity of being heard before the demolition order was made and the demolition order had been duly served on the petitioner and that the demolition notice being neither illegal nor without jurisdiction the suit of the petitioner was not maintainable by virtue of Section 343 (4) of the Corporation Act and that the proper remedy of the petitioner was to file an appeal against the notice of demolition. In the course of the order the trial court noticed the contention of the petitioner that when the petitioner went to the office of the Zonal Engineer on March 22, 1974, the Zonal Engineer was not available and that the petitioner along with other stall holders went to the Chairman of the Zonal Committee at 4. P.M and that the petitioner was therefore, never heard before the order was made. The trial court also noticed the further contention of the petitioner that at no stage was the demolition order served on the petitioner. The trial court, however, repelled the contention of the petitioner on the first question on the ground that the petitioner had “not filed any document on record to show” that he had attended the office of the Zonal Engineer and held that “in the absence of any record this plea of the plaintiff does not hold any water”. On the second question the trial court held that “admittedly demolition notice was served upon the plaintiff and plaintiff has filed reply to that demolition notice. The trial court further held that by virtue of the provisions of Section 343(4) of the Act the suit would be barred unless the threatened demolition was sought to be carried out otherwise than in accordance with the provisions of Section 343(1) of the Act, and in view of conclusion that there had been no non-compliance, it was further held that the suit was not maintainable. It, however, hastened to add that nothing in the order would “tantamount to expression of opinion on merits”. The order was challenged in appeal and the appellate court even while admitting the appeal to a regular hearing declined to grant the ex-parte interim injunction on the ground that “prima facie there is no ground” to grant such on injunction. It is this order that the petitioner seeks to challenge.

    4. Learned counsel for the petitioner assails the order of the first appellate court on the ground that it is not a speaking order and does not give any reasons as to why there was no ground for the grant of an injunction. He has also assailed the order of the trial court on the ground that while determining the question if the petitioner had a prima facie case it has transgressed the limit of its function in deciding the question raised by the petitioner in the suit rather than determine if the petitioner raised a question that required consideration at the trial. The conclusion of the trial court that the petitioner had failed to establish a prima facie case by any document on record was assailed on the ground that the petitioner could not have given evidence at the preliminary stage of the proceedings and such evidence could have been given only at the trial of the suit. The further conclusion of the trial court that the demolition notice had admittedly been served on the petitioner and he had replied to it was also assailed on the ground that this was because of a confusion in the mind of the trial court because it was not even the case of the Corporation that notice had been served on the petitioner personally because, according to the Corporation, a demolition order had been pasted outside the shop and it was nobody's case that a reply to it had been sent.

    5. Learned counsel for the Corporation sought to justify both the orders on the ground on which the order of the trial court purports to be based and urged that since the trial court has returned a definite finding the requirements of Section 343(1) of the Act had been fully satisfied, the suit itself was not maintainable and that this court should not therefore, interfere in exercise of its power of superintendence.

    6. After hearing learned counsel for the parties, it appears to me that the petitioner must succeed. In case of Gopal Krishan Kapoor v. Ramesh Chander Nijhawan . I.L.R 1974 1 Delhi 253., I had occassion to consider the meaning of the expression “prima facie case” and the precise function of the court when called upon to consider if a plaintiff had a prima facie case for the grant of an interim protection. This is how I looked at the question:

    “The function of the Court when called upon to consider if the plaintiff has a prima facie case for the grant of an interim protection or not is to determine the limited question if the material placed before the court would require investigation but it is not open to the. Court to either subject the material to closer judicial scrutiny for the purpose of deciding if on account of any inherent characteristics of the situation or the probabilities, the plaintiff may not succeed in this contention. Such an investigation would be clearly a transgression of the limits of the functions of the Court and would be both unreasonable and unfair because the suit being at a preliminary stage, the plaintiff has had no opportunity to support his contention by evidence and re-enforce the material brought by the plaintiff to the Court by additional evidence and to do that would amount to pre-judging the case of the plaintiff.”

    7. In the present case, the petitioner went to the court on the allegation that although he went to the office of the Corporation along with the documentary evidence in support of his claim, the Zonal Engineer was not available and that the demolition order was, therefore, made without affording any opportunity to the petitioner of being heard. The petitioner made the further allegation that the demolition order was never served on the petitioner and that the demolition order having been made in disregard of the provisions of Section 343(1) of the Act. the petitioner was entitled to a permanent injunction to restrain the Corporation from carrying out the same. At the hearing of the application for injunction in the suit a copy of the representation of the Stall Holders Association dated March 28, 1974, was produced, in the course of which the Association had protested to the Corporation that the petitioner along with various other stall holders had gone to the aforesaid office on the aforesaid date, but the Zonal Engineer was not available and the Association had heard that adverse orders had been made for the demolition of the structures. The allegations of the petitioner were denied by the Corporation and it was contended that the petitioner never attended the office of the Corporation on the aforesaid date and the matter was, therefore, decided on the material available in the absence of the petitioner. While considering the question if the petitioner had a prima facie case for interim protection the trial court had to look at the allegations in the plaint the material on the record in support of the allegations, and to find if the allegations and whatever material may be available, disclosed a case, which required investigation. It was not the function of the trial court at the preliminary stage to proceed to decide the question or to expect the petitioner to prove the allegations by documentary or other evidence. By proceeding to decide the two questions the trial court clearly transgressed the limits of its functions and the infirmity in the order is not saved merely because it hastened to add that the conclusions arrived at by it would not prejudice the trial of the suit. Whether or not the pettioner went with the necessary material to the office of the Zonal Engineer as alleged raises a question of fact which will have to be established by proper evidence at the trial of the suit. At the preliminary stage at which the order was sought the petitioner could not have given any other material to the court apart from his allegations and the affidavit in support of it as indeed the representation of the Association, where these allegations had in terms been made. It would be unfair to expect the petitioner at that preliminary stage to produce any further material. The question whether the suit was maintainable or not by virtue of the bar incorporated in Section 343 (4) of the Act would depend on the decision of the question if the demolition order had been made in accordance with the provisions of that section, and no question as to the maintainability of the suit could be decided until that question of fact had been gone into. Such a question cannot obviously be gone into unless the parties have had an opportunity to produce their respective evidence. The order of the appellate court suffers from the further infirmity that it discloses no reasons at all. It is difficult to understand how an injunction could be refused even while the appeal against the interlocutory order refusing injunction has been admitted to a regular hearing. If in such a case the injunction is refused and the demolition is carried out what happens where the appeal ultimately succeeds. Where the appeal has, therefore, been admitted to a hearing, the proper course for the appellate court would be to give the necessary interim protection, and if, according to the appellate court, the petitioner had no prima facie case for an injunction because the finding of the trial court were justified, where was the question of admitting the appeal to a regular hearing.

    8. The contention that this court would not interfere in exercise of its power of superitendence because the trial court has returned a finding of fact on the two questions raised by the petitioner is devoid of force. The trial court was not required to return any finding of fact at the preliminary stage of the proceedings where the. limited scope of its function was to find if the petitioner raised a case in the plaint which required consideration and which was not bound to fail on account of any technical error or otherwise. It was not open to the trial court to go into the questions raised at the preliminary stage of the proceedings. Where the trial court transgresses the limits of its functions at the preliminary stage of the proceedings when called upon to consider the question if the plaintiff had a prima facie case, it does not raise a mere question of correctness of the decision or its proprietary, but one of jurisdiction, and in such a situation this court is fully empowered, as indeed duty bound, to interfere and give the necessary protection to the petitioner until the question has been gone into at the trial. To hold to the contrary would be to permit the courts below to pre-judge the entire suit, even while the petitioner had no opportunity of producing any evidence.

    9. Ordinarily I would have modified the order of the appellate court so as to give the interim injunction to the petitioner which may injure during the pendency of the appeal leaving the appellate court still free to decide the question as to the petitioner's entitlement to interim protection during the pendency of the suit. On the conclusion of the appeal learned counsel for the parties, however, desired that such a course would be unnecessary, and that if 1 was granting the injunction on the ground that the petitioner had a prima facie case, it need not be confined to the period until the decision of the appeal but may inure till the decision of the suit. Learned counsel for the Corporation further sought that in that event it would be reasonable and proper that a time-bound schedule is fixed for the disposal of the suit so that the petitioner is not able to take undue advantage of the interim protection being given to him.

    10. In the result, the petition succeeds. The impugned orders of the trial court and of the first appellate court are set aside. The petitioner would have the injunction as prayed till the decision of the suit. The appeal of the petitioner would be rendered infructuous and be consigned to the records. It is, however, reasonable and proper that the suit is heard and disposed of at an early date. The trial court would hear and decide the suit within 4 months. The petitioner has agreed to produce his entire evidence on any date that may be fixed for the purpose. No adjournment would be granted to the petitioner for the purpose. The petitioner would, however, be entitled to seek the aid of the process of the court to produce his evidence.

    11. In the peculiar circumstances of the case there would be no costs.

    12. Petition accepted.

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    Sahib Dayal Chaman Lal v. Municipal Corporation Of Delhi .
    (May 18, 1976)