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V.N.N Panicker v. Narayan Pati And Others Opp. Parties.

Orissa High Court
Jul 21, 2006
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Structured Summary of the Opinion (Letters Patent Appeal)

Factual and Procedural Background

Dipika English Medium School Society (the plaintiff), a society registered under the Societies Registration Act and represented by its Principal Secretary, filed Civil Suit No. 131 of 2005 in the court of the Learned Civil Judge (Senior Division), Rourkela. The plaint sought a declaratory decree that defendants 1 to 10 were not entitled to interfere in the management and administration of the plaintiff's school, declared the constitution of a Managing Committee among defendants 1 to 10 on 25.7.2005 illegal and unlawful, and consequentially sought a permanent injunction restraining defendants 1 to 10 from interfering with management, dealing with scheduled bank accounts and from forcibly evicting the plaintiff from school premises.

Along with the plaint, the plaintiff filed an application under Order 39, Rules 1 & 2 CPC (registered as CMA No. 43 of 2005) seeking an ad interim injunction restraining the opposite parties (defendants) from interfering with management and from taking possession of moveable and immovable assets. The Trial Court allowed the interim application and by ad interim injunction restrained opposite parties 1 to 8 from interfering with management, from taking possession of assets and from dealing with the bank accounts specified in the schedule. The Trial Court further restrained forcible eviction and directed that, until disposal of the suit, opposite parties 9 and 10 (the Senior Headmistress of the Primary Section and the Principal) operate the bank account in question in accordance with law under the guidance of the old Managing Committee and under the control of the plaintiff-society.

Defendant No. 1 challenged the interim order by preferring FAO No. 298 of 2005 before the High Court. By order dated 9.9.2005 the Learned Single Judge (disposing FAO No. 298 of 2005) confirmed the first part of the Trial Court's order but modified aspects of the direction concerning the operation and control of the school: opposite parties 9 and 10 were directed to carry on day-to-day work and operate the bank account in accordance with law but not take policy decisions; the Single Judge set aside the direction that they act under guidance of the old Managing Committee and instead directed that they should seek guidance from the Managing Director, Rourkela Steel Plant, if any exigency arises. The Single Judge also directed the Trial Court to dispose of Civil Suit No. 131 of 2005 preferably within six months and asked parties to cooperate.

The plaintiff (who had been respondent No. 1 in the FAO) filed this Letters Patent Appeal under Clause 10 of the Letters Patent (Patna) Act against the Single Judge's order dated 9.9.2005. The maintainability of this Letters Patent Appeal was contested and became the central issue addressed by the Court.

Legal Issues Presented

  1. Whether a Letters Patent Appeal is maintainable against an order of a Single Judge disposing an appeal under Section 104, CPC, in view of Section 100-A, CPC as amended with effect from 1.7.2002.
  2. Whether the ratio of the Supreme Court's decision in P.S. Sathappan (dead) by L.Rs. v. Andhra Bank Ltd. (2004) (and related Division Bench authority of this Court) applies to the present facts to render the Letters Patent Appeal maintainable.

Arguments of the Parties

Appellant's Arguments (counsel: Mr. A.P. Bose)

  • Despite the insertion/amendment of Section 100-A, CPC, the Letters Patent Appeal is maintainable.
  • Relied upon the Supreme Court decision in P.S. Sathappan (2004) 11 SCC 672 : AIR 2004 SC 5152.
  • Also relied on a Division Bench decision of this Court in LPA No. 26 of 2005 (Birat Chandra Dagra v. Taurian Exim Pvt. Ltd.), disposed on 20.4.2005, which, relying on P.S. Sathappan, held that a Letters Patent Appeal is maintainable.

Respondent's Arguments (counsel: Mr. Patnaik)

  • The Letters Patent Appeal is not maintainable because Section 100-A, CPC as amended and brought into effect from 1.7.2002 bars a Letters Patent Appeal.
  • The ratio of P.S. Sathappan does not apply to the present case because the Trial Court order appealed before the Single Judge was passed after insertion of Section 100-A (i.e., after 1.7.2002), and therefore the statutory bar applies.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
P.S. Sathappan (dead) by L. Rs. v. Andhra Bank Ltd., (2004) 11 SCC 672 : AIR 2004 SC 5152 The decision explains that an appeal under the Letters Patent is an appeal provided by the law for the time being in force and that Section 104(1)'s saving must be read as a whole with Section 104(2); a Letters Patent Appeal is saved by Section 104(1) unless there is an express exclusion. The judgment also illustrates that when the Legislature intended to exclude a Letters Patent Appeal it did so expressly (for example, by Section 100-A after amendment), and that the law applicable is the law in force at the relevant time. The Court applied the ratio to hold that maintainability of a Letters Patent Appeal depends on when the original order (which was the subject of the appeal under Section 104 CPC) was passed. If that original order was passed before the insertion of Section 100-A (1.7.2002), the Letters Patent Appeal may be maintainable; if it was passed after, Section 100-A creates a bar.
Birat Chandra Dagra v. Taurian Exim Pvt. Ltd., LPA No. 26 of 2005 (Division Bench of this Court, disposed 20.4.2005) Used by counsel to demonstrate a High Court Division Bench applying P.S. Sathappan and holding that a Letters Patent Appeal was maintainable. The opinion records that the appellant relied on this Division Bench decision as a supporting authority for maintainability; the Court noted its existence but applied the controlling principle from P.S. Sathappan to the facts (i.e., maintainability depends on timing relative to insertion of Section 100-A).

Court's Reasoning and Analysis

The Court focused on the single dispositive question of maintainability of the Letters Patent Appeal in light of Section 100-A, CPC as amended effective 1.7.2002 and the Supreme Court's decision in P.S. Sathappan.

The Court distilled the principle from P.S. Sathappan that whether a Letters Patent Appeal is barred depends on the statutory scheme and the law in force at the relevant time. P.S. Sathappan explained that Section 104(1) contains a saving for appeals provided "by any other law for the time being in force" (which includes Letters Patent Appeals) and that Section 104(2)'s finality cannot be read to override express savings in subsection (1) unless there is an express exclusion. The P.S. Sathappan judgment further observed that the Legislature, when intending to exclude Letters Patent Appeals, has sometimes done so expressly (for example by the language used in Section 100-A after amendment).

Applying that ratio, the Court concluded that maintainability of a Letters Patent Appeal against an order of a Single Judge disposing an appeal under Section 104 CPC depends on when the original Trial Court order that was the subject of the Section 104 appeal (i.e., the FAO) was passed. If that original Trial Court order was passed before the insertion/amendment of Section 100-A (1.7.2002), Section 100-A would not bar the Letters Patent Appeal; if it was passed after that date, Section 100-A operates to bar such an appeal.

The Court then examined the facts: the order of the Learned Trial Court impugned before the Learned Single Judge in the FAO was passed in 2005, which was after the insertion of Section 100-A (effective 1.7.2002). On that basis the Court held that Section 100-A barred the maintainability of a Letters Patent Appeal in the present case.

The Court therefore applied the P.S. Sathappan ratio to the chronology of the orders before it and concluded that the Letters Patent Appeal was not maintainable because the relevant Trial Court order was passed after 1.7.2002 when Section 100-A had come into force.

Holding and Implications

Holding: The Letters Patent Appeal is not maintainable and is DISMISSED.

Implications:

  • Direct effect on the parties: the Letters Patent Appeal brought by the plaintiff (who had been respondent No. 1 in FAO No. 298 of 2005) was dismissed; thus the Single Judge's order dated 9.9.2005 stands.
  • The Trial Court remains directed, as per the Single Judge's order, to dispose of Civil Suit No. 131 of 2005 as expeditiously as possible, preferably within six months, subject to any impediments.
  • This opinion applies the existing principle from P.S. Sathappan concerning temporal application of Section 100-A and does not purport to create a new exception; the Court treated the resolution as an application of established doctrine to the chronology of the orders in this case. The text of the opinion does not state that it establishes a new precedent beyond applying the cited authority.

Bench note: The opinion records that Justice L. Mohapatra agreed with the result. The formal concluding line records "LPA dismissed."

Show all summary ...

M.M Das, J.:— This Letter Patent Appeal has been filed against the order dated 9.9.2005 passed by the Learned Single Judge in FAO No. 298 of 2005.

2. Dipika English Medium School Society, a society registered under the Societies Registration Act being represented through its Principal Secretary has filed Civil Suit No. 131 of 2005 which is pending before the Learned Civil Judge (Sr. Division), Rourkela. It appears from the prayer made in the plaint that the plaintiff has claimed for a declaratory decree declaring that the defendants 1 to 10 are not entitled to interfere in the management and administration of the plaintiff's School and further declaring that the constitution of the Managing Committee of the said School amongst defendants 1 to 10 on 25.7.2005 is illegal and unlawful and not binding on the plaintiff. A consequential relief in the form of permanent injunction restraining the defendants 1 to 10 from interfering with the management and administration of the school and from dealing with the Bank Accounts as per the schedule given in the plaint and from forcibly evicting the plaintiff from the School premises has also been sought for. Along with the plaint, a petition under Order 39, Rules 1 & 2 of the Code of Civil Procedure was also filed by the plaintiff praying for an ad interim injunction restraining the opp. parties 1 to 4 who were defendants in the suit, from interfering with the management and administration of the School and from taking possession of moveable and immoveable assets of the said School from the plaintiff-petitioner. The said application was registered as CMA No. 43 of 2005. The said interim application was taken up for hearing by the Trial Court and after hearing the Learned Counsel for the parties and considering to the materials available on record, the Learned Trial Court allowed the said Misc. Case filed by the plaintiff, restraining the opp. parties 1 to 8 by way of an ad interim order of injunction, from interfering with the management and administration of the plaintiff-School and from taking possession of the moveable and immovable assets of the said School and further from dealing with the Bank Accounts as described in the schedule of the Misc. Case Petition. They were also restrained from forcibly evicting the plaintiff from the premises and were directed that till disposal of the suit, the opp. parties 9 and 10 in the said Misc. Case who happen to be the Senior Headmistress of the Primary Section of the said School and Principal of the School respectively, would operate the Bank Account in question, in accordance with law under guidance of the old Managing Committee of the School and under the control of the plaintiff-society.

3. Being aggrieved by the said interim order of injunction the defendant No. 1 preferred FAO No. 298 of 2005 before this Court. The said appeal has been disposed of by the Learned Single Judge by his order, dated 9.9.2005 with the following directions and observations:

“Accordingly, while confirming the first part of the impugned order, I direct that opposite parties 9 and 10, i.e, the Senior Headmistress of the said school and the Principal of the School respectively shall carry on the day-to-day work of the school, and shall operate the bank account in question in accordance with law but then shall not take any policy decisions. This Court also fells that it would be just and proper that the aforesaid opposite parties 9 and 10 seek guidance from the Managing Djrector, Rourkela Steel Plant, if any exigency arises and I so direct. The direction that they shall act under the guidance of the old Managing Committee is set aside.

With the aforesaid observations/directions, the appeal is disposed of. The Trial Court is directed to dispose of Civil Suit No. 131 of 2005 as expeditiously as possible, preferably within a period of six months hen-ce, if there is no other impediment. The parties are directed to cooperate with the Trial Court”.

4. This letters patent appeal has been filed by the plaintiff who was the respondent in the FAO, against the order dated 9.9.2005 passed by the Learned Single Judge.

5. The question of maintainability of this letters patent appeal was raised by the Learned Counsel for the respondent and, as such, we have heard the matter at length on the question of the maintainability of the letters patent appeal.

6. The plaintiff who was the respondent No. 1 in the FAO being aggrieved by the directions and observations given by the Learned Single Judge while disposing of the said FAO has preferred this letters Patent Appeal under Clause 10 of the Letters Patent (Patna) Act.

7. Mr. Patnaik, Learned Counsel for the respondent No. 1 relying upon section 100-A, CPC as amended with effect from 1.7.2002 submitted that the Letters Patent Appeal is not maintainable.

8. Mr. A.P Bose, Learned Counsel appearing for the appellant submitted that notwithstanding the provisions of section 100-A, CPC as it stands, the appeal is maintainable. In support of his submission, he relied upon the decision of the Supreme Court in the Case of P.S Sathappan (dead) by L. Rs. v. Andhra Bank Ltd., (2004) 11 SCC 672 : AIR 2004 SC 5152 and further submitted that a Division Bench of this Court in LPA No. 26 of 2005 (Birat Chandra Dagra v. Taurian Exim Pvt. Ltd.) disposed of on 20.4.2005, relying upon the above decision of the Supreme Court has held that the Letters Patent Appeal is maintainable.

9. Mr. Patnaik, Learned Counsel for the respondent No. 1 submitted that the ratio of the decision in the Case of P.S Sathappan (supra) so far as it relates to maintainability of the appeal will not be applicable to the facts of the present case for the simple reason that the impugned order of the trial Court which was under challenged in the FAO before the Learned Single Judge was passed after the amendment/insertion of Section 100-A, CPC which was given effect to from 1.7.2002 and, therefore, an appeal under the Letters Patent Appeal would be barred as per section 100-A, CPC as it stands.

10. In the Case of P.S Sathappan (supra), the Supreme Court has held as follows:

“An appeal provided under the Letters Patent of the High Court is an appeal provided by the law for the time being in force. As such, an appeal is expressly saved by Section 104(1), Sub-clause (2) of Section 104 cannot apply to such an appeal. Section 104 has to be read as a whole. Merely reading Sub-clauae (2) by ignoring the saving clause in Sub-section (1) would lead to a conflict between the two Sub-clauses. Read as a whole and on well established principles of interpretation it is clear that Sub-clause (2) can only apply to appeals not saved by Sub-clause (1) of Section 104. The finality provided by Sub-clause (2) only attaches to orders passed in appeal under Section 104, i.e, those orders against which an appeal under ‘any other law for the time being in force’ is not permitted. Section 104(2) would not thus bar a Letters Patent Appeal. Effect must also be given to legislative intent of introducing Section 4, CPC and the words ‘by any other law for the time being in force’ in Section 104(1). As appeals under ‘any other law for the time being in force undeniably include a letters Patent Appeal, such appeals are now specifically saved. Section 104 must be read as a whole and harmoniously. If the intention was to exclude what is specifically saved in Sub-clause (1), then there had to be a specific exclusion. A general exclusion of this nature would not be sufficient. However, when Section 104(1) specifically saves a letters Patent Appeal then the only way such an appeal could be excluded is by express mention in Section 104(2) that a Letters Patent Appeal is also prohibited. A specific exclusion may be clear from the words of a statute even through no specific reference is made to letters Patent. But where there is an express saving in the statute/section itself, then general words to the effect that an appeal would not lie or ‘order will be final’ are not sufficient. In such cases, i.e, where there is an express saving, there must be an express exclusion. Sub-clause (2) of Section 104 does not provide for any express exclusion. In this context, reference may be made to Section 100-A. The present Section 100-A was amended in 2002. It is thus to be seen that when the Legislature wanted to exclude a letters Patent Appeal, it specifically did so. The words used in Section 100-A are not by way of abundant caution. By the Amendment Acts of 1976 and 2002, a specific exclusion is provided as the Legislature knew that in the absence of such words a Letters Patent Appeal would not be barred. The Legislature was aware that it had incorporated the saving clause in Section 104(1) and incorporated in Section 4 in the CPC. Thus, now a specific exclusion was provided. To be noted that here again the Lagistature has provided for a specific exclusion. It must be stated that now by virtue of Section 100-A No. Letters Patent Appeal would be maintainable. However, it is an admitted position that the law which would prevail would be the law at the relevant time. At the relevant time neither Section 100-A nor Section 104(2) barred a Letters Patent Appeal. Applying the above principle to the facts of this case, the appeal under Clause 15 of the Letters Patent is an appeal provided by a law for the time being in force. Therefore, the finality contemplated by Sub-section (2) of Section 104 did not attach to an appeal passed under such law.”

(Emphasis Supplied)

11. Thus we are of the view that maintainability of the Letters Patent Appeal against an order of the Learned Single Judge passed in an appeal under Section 104, CPC depends on the facts as to when the original order appealed against before the Learned Single Judge, was passed. If the same was passed before amendment/insertion of Section 100-A, CPC. which specifically bars a Letters Patent Appeal, the said bar will not stand on the way of maintaining such an appeal. In the present case, however, as already noted above, the order impugned before the Learned Single Judge in the FAO was passed in the year 2005, by which time, Section 100-A, CPC was already inserted thereby creating a bar for filling the Letters Patent Appeal.

12. Applying the ratio of the decision in the Case of P.S Sathappan (supra), we have no hesitation in coming to the conclusion that by virtue of Section 100-A, CPC no Letters Patent Appeal would be maintainable if the order of the Learned Trial Court which was appealed against, in an appeal, filed under Section 104, CPC was passed after the amendment/insertion of Section 100-A, CPC. which came into force with effect from 1.7.2002 In the present case, the order impugned before the Learned Single Judge which was passed by the Learned Trial Court being much after the said date, i.e, 1.7.2002, we hold that this Letters Patent Appeal is not maintainable. The LPA is, therefore, dismissed.

L. Mohapatra, J.:— I agree.

14. LPA dismissed.