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citation codes
Case Number
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  • Article 163 or by Article 181 of the Limitation Act.
  • Section 104(1)(i) and Order 43 Rule 1 C. P. C.
  • Order 43 Rule 1(c), that Section 141
  • Article 163 of the Limitation Act.
  • Order 9 Rule 9 C. P. C. Section 141
  • Order 9 Rule 9 C. P. C.
  • Order 9 Rule 8 C. P. C.
  • Order 43 Rule 1(c).
  • Section 141 C. P. C.,
  • Section 151 C. P. C.
  • Order 9 Rule 9;
  • Order 9 Rule
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Cites
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Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • Article 163 or by Article 181 of the Limitation Act.
  • Section 104(1)(i) and Order 43 Rule 1 C. P. C.
  • Order 43 Rule 1(c), that Section 141
  • Article 163 of the Limitation Act.
  • Order 9 Rule 9 C. P. C. Section 141
  • Order 9 Rule 9 C. P. C.
  • Order 9 Rule 8 C. P. C.
  • Order 43 Rule 1(c).
  • Section 141 C. P. C.,
  • Section 151 C. P. C.
  • Order 9 Rule 9;
  • Order 9 Rule
Smart Summary

Factual and Procedural Background

This matter was referred by Tare J. for a decision on the period of limitation applicable to an application for restoration of an application under Order 9 Rule 9, Civil Procedure Code (C.P.C.), where the application for restoration itself had been dismissed in default.

The petitioner, Pooranchand, had a suit dismissed for default under Order 9 Rule 8 C.P.C. He applied under Order 9 Rule 9 for restoration of the suit; that application for restoration was dismissed for default on 3 September 1959. On 30 November 1959 the petitioner applied to set aside the dismissal of his application for restoration. The trial Court rejected that application on the ground of limitation, relying on Pitambar Lal v. Dodee Singh (ILR 46 All 319; AIR 1924 All 503), which treated such an application as governed by Article 163 of the Limitation Act.

The specific question referred was whether an application to invoke the inherent powers of the Court under Section 151 C.P.C. to set aside the dismissal of an application for restoration is governed by Article 163 or Article 181 of the Limitation Act.

Legal Issues Presented

  1. What is the period of limitation for an application to set aside the dismissal in default of an application for restoration made under Order 9 Rule 9 C.P.C.?
  2. Whether an application invoking the inherent powers of the Court under Section 151 C.P.C. (to set aside such a dismissal) is governed by Article 163 or by Article 181 of the Limitation Act (or any other article of the Limitation Act)?

Arguments of the Parties

Opponent's Arguments (as recorded)

  • Counsel for the opponent (Shri Verma) submitted that the Nagpur decision (Brijmohan v. Raghoba) had expressed a doubt on whether an application to set aside the dismissal for default of an application to restore a suit was maintainable under Section 151 C.P.C.; and he relied on that point.
  • He further argued that an application invoking the inherent powers under Section 151 should be subject to the limitation prescribed by Article 163 of the Limitation Act.

The opinion does not contain a detailed account of the petitioner's specific legal arguments before the Court.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Pitambar Lal v. Dodee Singh, ILR 46 All 319 (AIR 1924 All 503) Held that an application for setting aside the dismissal in default of an application for restoration under Order 9 Rule 9 could be treated as an application for restoration of the suit and would be governed by Article 163 of the Limitation Act. The trial Court relied on this case to reject the petitioner's application for being time-barred; the instant Court distinguished and disagreed with that application of Pitambar Lal for the reasons set out in the opinion.
Brijmohan v. Raghoba, 28 Nag LR 83 (AIR 1932 Nag 101) Held that no appeal lies from an order rejecting an application to set aside the dismissal for default of an application for restoration of a suit; and that the dismissal of such an application can be set aside under Section 151 C.P.C. The Court adopted and endorsed this view as correct: Order 9 Rule 9 is substantive, Section 141 is procedural, and the dismissal in default of an application for restoration can be set aside under the inherent powers of the court (Section 151).
Prem Shankar v. Rampyarelal, ILR (1944) Nag 558 (AIR 1944 Nag 317) Followed the decision in Brijmohan v. Raghoba. The Court noted this case as a follow-up authority supporting the Brijmohan view.
Sitaram v. Bapurao, 1953 Nag LJ 144 (AIR 1953 Nap 153) Support for the proposition that Order 9 in terms applies only to suits and that the remedy under Order 9 Rule 9 is not merely procedural. Relied upon to reinforce the Court's conclusion that Rule 9 confers a substantive right and therefore cannot be applied to confer procedural rights in proceedings to set aside dismissal of an application for restoration.
Doma Chandhary v. Ram Naresh Lal, AIR 1959 Pat 121 (Full Bench) Held that an appeal lies under Order 43 Rule 1(c) from an order rejecting for default an application under Rule 9. The Court mentioned this decision as one of the authorities that have held otherwise, but observed that such decisions overlooked the distinction between substantive rights and mere procedural application of the Code (Section 141).
Sha Mulchand and Co. Ltd. v. Jawahar Mills Ltd., AIR 1953 SC 98 Held that Article 181 of the Limitation Act governs only applications under the Code of Civil Procedure and should be read as if the words "under the Code" were added; it limits Article 181 to applications that set the Code's machinery in motion. The Court relied on this Supreme Court authority to conclude that Article 181 does not apply to applications invoking inherent powers under Section 151, since those are not applications "under the Code."
Goverdhan v. Hemrajsingh, ILR (1944) Nag 408 (AIR 1944 Nag 335) Cited on the point that there is no limitation period for invoking the inherent powers of the Court, subject to the requirement of diligence. Used as supportive authority to fortify the view that Section 151 applications are not governed by the Limitation Act's articles applicable to Code-based applications; parties invoking inherent powers must, however, act without laches.
Annada Prasad v. Sushil Kumar, AIR 1942 Cal 390 Authority cited in support of the position that inherent powers are not subject to a specific limitation period. Relied on as one of several decisions confirming that inherent jurisdiction is not time-barred by Limitation Act articles applicable to Code applications, though diligence is required.
Shyam Sunder v. Nilakantha Das, AIR 1956 Orissa 165 Cited as further precedent supporting that inherent powers are not governed by limitation articles of the Limitation Act. Referred to as additional support for the conclusion that Section 151 jurisdiction is not fettered by the Limitation Act; parties must still avoid laches.

Court's Reasoning and Analysis

The Court proceeded in a stepwise manner, grounded in statutory distinction and precedent analysis:

  1. Determine the proper provision under which an application to set aside the dismissal (in default) of an application for restoration under Order 9 Rule 9 is maintainable. The Court examined prior decisions (notably Brijmohan v. Raghoba) and statutory provisions to identify whether such relief is by appeal, by application under the Code, or by inherent powers under Section 151 C.P.C.
  2. The Court accepted the reasoning in Brijmohan: Order 9 applies to suits; the remedy under Order 9 Rule 9 is substantive and not merely procedural. Section 141 C.P.C. is procedural and cannot confer substantive rights such as the right to restore a suit. Consequently, Section 141 cannot be used to make Order 9 Rule 9 applicable to proceedings against the dismissal of an application for restoration; the right to seek restoration in that context is to be found, in the absence of express provision, in the inherent power under Section 151.
  3. Because the dismissal (of the application for restoration) operates in the exercise of the Court's inherent powers, the same inherent powers (Section 151) can be used to set aside that dismissal. Therefore, the dismissal is not an order whose remedy is by appeal under Order 43 Rule 1(c).
  4. Turning to limitation, the Court reasoned that Section 151 is not a provision prescribing applications or procedures under the Code; rather, it recognises an inherent jurisdiction to act ex debito justitiae. As such, an application to invoke Section 151 is not an "application under the Code" and therefore is not governed by Article 181 (or other articles) of the Limitation Act that apply specifically to applications made under the Code. The Court expressly relied on Sha Mulchand (Supreme Court) for the proposition that Article 181 must be read as limited to Code-based applications.
  5. The Court rejected the opponent's contention that Article 163 applied to an application invoking Section 151: Article 163 prescribes limitation for applications to set aside dismissal of suits and not for an application to set aside dismissal of an application for restoration under Order 9 Rule 9. Moreover, where Section 151 is properly invoked, the Limitation Act articles that govern Code applications are inapplicable.
  6. The Court reinforced its conclusion by reference to decisions (Goverdhan; Annada Prasad; Shyam Sunder) that supported the proposition that there is no specific limitation for invoking inherent powers, while emphasising that the applicant must act diligently and not be guilty of laches.

Holding and Implications

Holding: The Court held that the dismissal for default of an application for restoration of a suit under Order 9 Rule 9 C.P.C. can be set aside in the exercise of the inherent powers of the Court under Section 151 C.P.C., and that the exercise of those inherent powers is not fettered by any rule of limitation in the Limitation Act applicable to applications made "under the Code."

Implications and immediate consequences:

  • The direct legal consequence is that an application invoking Section 151 to set aside the dismissal in default of an application for restoration is not governed by Article 181 or Article 163 of the Limitation Act (as those articles apply to Code-based applications), and therefore is not subject to the specific limitation periods contained in those articles.
  • The Court emphasised a practical limitation: although there is no statute-prescribed limitation period for invoking Section 151, the applicant must act with diligence and must not be guilty of laches. Delay and laches may therefore be relevant to the exercise of the inherent jurisdiction.
  • The opinion distinguishes and disagrees with authorities that treated such applications as falling within Articles of the Limitation Act applicable to Code applications (for example, trial reliance on Pitambar Lal and other decisions that treated the matter as governed by Article 163 or permitted appeal under Order 43 Rule 1(c)).

    Pooranchand Mulchand Jain v. Komalchand Beniprasad Jain

    1. This matter comes up before us on a reference by our learned brother Tare J. for decision on the question as to the period of limitation for an application for restoration of an application under Order 9 Rule 9 C. P. C. which itself has been dismissed in default.

    2. The petitioner Pooranchand's suit was dismissed for default in appearance under Order 9 Rule 8 C. P. C. He then filed an application under Rule 9 for restoration. This application for restoration was itself dismissed for default of appearance on 3rd September 1959. Thereupon on 30th November 1959 the petitioner made an application for setting aside the dismissal of his application for restoration. This application was rejected by the trial Court on the ground of limitation relying on Pitambar Lal v. Dodee Singh, ILR 46 All 319: (AIR 1924 All 503). In the Allahabad case it was held that an application for setting aside the dismissal in default of an application for restoration under Order 9 Rule 9 could itself be treated as an application for restoration of the suit and would be governed by Article 163 of the Limitation Act.

    3. From what the learned Judge has said in the order of reference, it appears that before him it was not disputed that an application for setting aside the dismissal in default of an application for restoration under Order 9 Rule 9 was competent under Section 151 C. P. C. The controversy centred round the question as to whether an application for invoking the inherent powers of the Court under Section 151 was governed by Article 163 or by Article 181 of the Limitation Act. The learned Single Judge thought it necessary to make this reference, as in his opinion, the question was of frequent occurrence and was not covered by any decision of this Court or any other High Court.

    4. Before answering the question as regards limitation posed by the learned Single Judge, it is necessary to determine the provision under which an application for setting aside the dismissal for default of an application for restoration under Order 9 Rule 9 C. P. C. is maintainable. In Brijmohan v. Raghoba, 28 Nag LR 83 : (AIR 1932 Nag 101) it has been held by a Division Bench of the Nagpur Judicial Commissioner's Court that no appeal lies from an order rejecting an application to set aside the dismissal for default of an application for restoration of a suit dismissed in default, and that the dismissal of such an application can be set aside under Section 151.

    The learned Judges based this conclusion on the reasoning that Section 104(1)(i) and Order 43 Rule 1 C. P. C. did not provide for an appeal against an order of dismissal for default of an application for restoration of a suit under Order 9 Rule 9; that the right of appeal being a substantive right could not be inferred by the application of Section 141 which only made the procedure in the Code applicable, in so far as it could be, in all proceedings in any court of civil jurisdiction and did not give any substantive right; and that, therefore, an under of dismissal for default of an application for restoration of a suit under Order 9 Rule 9 was not appealable under Order 43 Rule 1(c). On the same reasoning the learned Judges treating the remedy under Order 9 Rule 9 as a substantive one held that it was not available by resorting to Section 141 C. P. C., for setting aside the dismissal in default of an application for restoration of a suit under Order 9 Rule 9. This decision was followed by a Single Judge of the Nagpur High Court in Prem Shankar v. Rampyarelal, ILR (1944) Nag 558: (AIR 1944 Nag 317).

    5. We entirely agree with the view expressed in 28 Nag LR 83: (AIR 1932 Nag 101) (supra). Order 9 in terms applies only to suits. The remedy under Order 9 Rule 9 C. P. C. is not a matter of procedure (See Sitaram v. Bapurao, 1953 Nag LJ 144: (AIR 1953 Nap 153). The rule gives a substantive right of applying for restoration of a suit dismissed for default and this right cannot be conferred by Section 141 when it is made applicable to proceedings initiated on an application for setting aside the dismissal in default of an application for restoration of a suit under Order 9 Rule 9 C. P. C. Section 141 deals only with procedure and not with any substantive right. It docs no more than provide the procedure to be adopted by courts of civil jurisdiction in dealing with matters before them. It does not provide that the Code is to be applied in its entirety to such proceedings so as to confer the right of appeal or any other substantive right in those proceedings. Order 9 Rule 9 cannot, therefore, be invoked for setting aside the dismissal in default of an application for restoration of a suit under that rule. On the same principle an order dismissing in default an application for restoration of a suit under Order 9 Rule 9 is not open to appeal under Order 43 Rule 1(c). The dismissal of such an application for default is in the exercise of the inherent powers of the court. That being so, the dismissal can be set aside by the exercise of the same inherent powers.

    It seems to us unnecessary to examine some decisions in which it has been held that an appeal lies under Order 43 Rule 1(c) from an order rejecting for default an application udder Rule 9, (See Doma Chandhary V. Ram Naresh Lal, AIR 1959 Pat 121 (FB) and cases noted in Chitale's Civil Procedure Code, volume II, under note (2) to Order 9 (General). These decisions and others making Order 9 Rule 9 applicable for setting aside an order rejecting for default an application for restoration of a suit under Order 9. Rule 9 C.P.C. overlook the position that when an appeal is preferred against an order rejecting for default an application under Rule 9 for the restoration of a suit, the appeal is not against the order to set aside the dismissal of a suit within the meaning of Order 43 Rule 1(c), that Section 141 deals with procedure alone and not with any substantive rights, and that the remedy under Order 9 Rule 9 C.P.C. is not a matter of procedure but is a substantive right.

    6. Shri Verma, learned counsel appearing for the opponent, said that in 28 Nag LR 83 :(AIR 1932 Nag 101), (supra) a doubt was expressed as to whether an application for setting aside the dismissal for default of an application to restore a suit under Order 9 Rule 9 C.P.C. was maintainable under Section 151 C. P. C. We do not find any such doubt expressed in the opinion delivered by the learned Judges in Brijmohan's case, 28 Nag LR 83 :(AIR 1932 Nag 101) (supra). The doubt that was expressed by Niyogi, A. J. C., was on the question whether an application to set aside the dismissal of an application for restoration of a suit dismissed for default could be regarded as an 'original matter' to which Section 141 C. P. C. could be applied. But the learned Judges were emphatic on the point that even if Section 141 were to be made applicable to cases of applications to set aside the dismissal of an application for restoration of a suit dismissed in default, that would not give the substantive right of making an application for restoration under Order 9 Rule 9, and that in the absence of any express provision in the Code the right to make such applications is implied in Section 151.

    7. Now, if as we think, the dismissal in default of an application for the restoration of a suit under Order 9 Rule 9 C. P. C. can be set aside by resort to Section 151, C. P. C., then there is no question of any limitation for an application made to invoke the inherent powers of the Court. Section 151 does not deal with any application, nor docs it lay down procedure for any application. It is a provision recognising the inherent power of the court to act ex debito justitiae. An application invoking this power is not one which a party is required to make under any provisions of the Code for setting in motion any machinery of the Court. Therefore it is not governed by Article 181 or any other article of the limitation act. As has been held by the Supreme Court in Sha Mulchand and Co. Ltd. v. Jawahar Mills Ltd., AIR 1953 SC 98 Article 181 governs only the applications under the Code of Civil Procedure and has to be read as if the words 'under the Code' were added in the first column of the article. It follows therefore that the application contemplated by Article 181 is one which a party has to make for the machinery of the Court to be set in motion under the provisions of the Code and the application has to be made within three years from the date when the right to apply accrues.

    8. Learned counsel for the opponent said that an application invoking the inherent powers under Section 151 would be subject to the limitation prescribed by Article 163 of the Limitation Act. We do not agree. As an application made to invoke the inherent powers of the Court under Section 151 is not an application under the Code which a party is required to make, Article 163 has no applicability. That apart, reading Articles 163 and 164 together it is clear that Article 163 prescribes limitation for an application to set aside the dismissal for default of a suit and not for an application to set aside the dismissal for default of an application for restoration of a suit under Order 9, Rule 9, C. P. C. The view that an application invoking the inherent powers of the Court under Section 151, C. P. C. is not governed by Article 181 or any other article of the limitation act is fortified by the decisions in Goverdhan v. Hemrajsingh, ILR (1944) Nag 408:

    (AIR 1944 Nag 335), Annada Prasad v. Sushil Kumar. AIR 1942 Cal 390, and Shyam Sunder v. Nilakantha Das, AIR 1956 Orissa 165. Though there is no limitation for invoking the inherent powers of the court under Section 151, the party invoking that jurisdiction must be diligent and not guilty of laches.

    9. For all these reasons, our answer to the question referred to by the learned Single Judge is that the dismissal for default of an application for restoration of a suit under Order 9 Rule 9, C. P. C.

    can be set aside in exercise of the inherent powers of the Court under Section 151, C. P. C. and that the exercise of inherent powers is not fettered by any rule of limitation.

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    Pooranchand Mulchand Jain v. Komalchand Beniprasad Jain
    (Jul 11, 1961)