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Basudevanand v. Raghubir Saran Rastogi And Others Opposite Party.

Patna High Court
Aug 5, 1953
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Structured Summary of the Opinion

Factual and Procedural Background

This is an application for a certificate under Article 133 of the Constitution of India, seeking leave to appeal to the Supreme Court. In execution proceedings before the Subordinate Judge at Hazaribagh an objection was taken that the execution could not continue owing to the provisions of section 4(d) of the Bihar Land Reforms Act. The Subordinate Judge upheld the objection and ordered the dropping of the execution proceedings.

On appeal to the High Court, the High Court held that section 4(d) of the Land Reforms Act did not bar the execution proceedings having regard to the facts and circumstances of the case. The High Court also held that the objection based on section 4(d) was concluded by the principle of constructive res judicata in light of an earlier order of the District Judge of Patna dated 6 December 1952 which declared that section 4(d) was not a bar. The High Court set aside the Subordinate Judge's order of 8 December 1952 and held that the appellant, Raghubir Saran Rastogi, was entitled to execute the mortgage decree by attaching Rs. 83,000 being compensation paid by the Central Government for four villages (Mahal Gaddi Masnodih).

The present application asks the High Court to certify under Article 133 that the case satisfies the requirements for an appeal to the Supreme Court.

Legal Issues Presented

  1. Whether the order of this Court in the appeal (which reversed the Subordinate Judge and kept the execution proceedings alive) is a "final order" within the meaning of Article 133 of the Constitution, thereby qualifying for a certificate for appeal to the Supreme Court.
  2. Whether the monetary threshold and other formal prerequisites of Article 133 are satisfied (the opinion notes that the value in dispute exceeds Rs. 20,000 and that the order was an order of reversal).
  3. Whether the explanation to Article 132 (which defines "final order" for the purposes of Article 132) can be applied to the interpretation of "final order" in Article 133, as was argued by an applicant.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Kuppuswami Rao v. The King, AIR 1949 PC 1 Explains the meaning of "judgment" and "decree" (quoting CPC definitions); distinguishes judgment (grounds) from decree (formal expression conclusively determining rights). The Court used this authority to clarify that the order under consideration was a judgment and order but not a decree, and to guide construction of "judgment, decree or final order" in Article 133.
Gaya Electric Supply Co. Ltd. v. State of Bihar, AIR 1951 Pat 619 Reviewed English and Indian decisions on what constitutes a "final order". The decision and its review of authorities were used to place the present case in the context of tests of finality; the Court relied on the principles discussed therein to decide that the order was not final.
Salaman v. Warner, (1891) 1 QBD 734 Lord Esher's test: an order is final if, whichever way the decision goes, it will finally dispose of the matter; if one outcome disposes and the other allows the action to continue, it is interlocutory. The Court applied Lord Esher's formulation directly: because the Subordinate Judge's decision would have finally disposed the matter but the High Court's contrary decision allowed proceedings to continue, the High Court's decision is not final.
Abdul Rahman v. D.K. Cassim and Sons, AIR 1933 PC 58 Sir George Lowndes' statement that finality must be in relation to the suit: if after the order the suit remains a live suit with rights to be determined, the order is not final for appeal purposes under the provision equivalent to s.109. The Court followed this view: because the execution proceedings remained alive and the rights of the parties were yet to be finally determined, the High Court's order was not final.
Firm Ramchand Manjimal v. Firm Goverdhandas Vishindas Ratanchand, AIR 1920 PC 86 Lord Cave's observation that the test of finality is whether the order finally disposes of the rights of the parties; deciding jurisdictional or root matters is not sufficient if the suit remains live. Cited (via Abdul Rahman) to support the proposition that an order is not final merely because it goes to jurisdiction; finality must be in relation to the suit. The Court applied this to hold the present order not final.
AIR 1949 FC 1 (Federal Court decision referenced / Kania, C.J.) Reiterates that deciding an important issue is not sufficient for finality; the decision must not keep the matter alive for trial in the ordinary way. The Court relied on this authority in concluding that the High Court's decision, although addressing a vital issue, did not finally determine the parties' rights and thus was not a final order under Article 133.

Court's Reasoning and Analysis

The Court proceeded in a series of logical steps, relying only on the authorities and facts recorded in the opinion:

  1. Threshold and procedural facts: The Court observed that the value in dispute exceeded Rs. 20,000 and that the High Court's order was an order of reversal.
  2. Central question identified: The main question was whether the High Court's order was a "final order" under Article 133, entitling the applicant to a certificate to appeal to the Supreme Court.
  3. Meaning of "judgment" and "decree": The Court referred to the Federal Court's exposition (Kuppuswami Rao) and CPC definitions to clarify that a judgment gives grounds, while a decree is a formal expression conclusively determining rights; the definitions are for the Code but the general meaning as used in appellate contexts was considered.
  4. Nature of the underlying proceedings: The subject matter before the subordinate court was execution of a decree. Execution proceedings admit various objections; in this case the executing court had dropped the proceedings on the ground that section 4(d) of the Land Reforms Act barred further execution, but the High Court reversed that finding.
  5. Effect of the High Court's decision on finality: The High Court's reversal kept the execution proceedings alive — it did not finally determine the rights of the parties in the execution proceedings. There was no specific remand order, but the practical effect of setting aside the order that had dropped proceedings was to allow the execution to continue.
  6. Application of the finality tests from authorities: The Court surveyed authorities (Salaman v. Warner; Abdul Rahman; Firm Ramchand Manjimal; Gaya Electric review; and Federal Court dicta) and distilled the guiding principle: an order is final for appeal purposes only if it finally disposes of the rights in relation to the suit. If the suit (or proceeding) remains live and the rights are still to be determined, the order is not final.
  7. Specific application of tests: Using Lord Esher's test, the Court found the High Court's decision interlocutory because the Subordinate Judge's decision would have finally disposed the matter but the High Court's contrary decision permitted the action (execution) to proceed. Following Sir George Lowndes' approach, a decision going to the root (e.g., jurisdiction) is not sufficient; finality must be final in relation to the suit. The High Court's decision did not put an end to the execution proceedings.
  8. Interpretation of Articles 132 and 133: The Court rejected the argument that the explanation to Article 132 (which defines "final order" for Article 132) should be read into Article 133. The Court held the explanation to Article 132 applies only for the purposes of Article 132 and that the words in Article 133 must be construed as done in the Federal Court decisions cited (i.e., consistent with the tests of finality applied above).
  9. Certificate under Article 133(1)(c): The Court considered and rejected the submission that a certificate under Article 133(1)(c) could be granted simply because the order decided an important question of law; in the Court's view, it was not possible to grant such a certificate in this case.

Based on these reasoned steps, the Court concluded that the High Court's appellate order was not a "final order" for the purposes of Article 133 and therefore refused to grant the certificate sought.

Holding and Implications

DISMISSED. The application for a certificate under Article 133 was dismissed and leave to appeal to the Supreme Court was refused.

Direct consequences for the parties:

  • The application for certification to appeal to the Supreme Court under Article 133 was refused; leave to appeal was denied.
  • The High Court's order setting aside the Subordinate Judge's order has the effect of keeping the execution proceedings alive; the rights of the parties in those execution proceedings are still to be finally determined in the ordinary course.
  • The applicant was ordered to pay costs and a hearing fee of Rs. 80/- (the opinion states: "I would accordingly dismiss the application with costs. Hearing fee Rs. 80/-.").

Broader implications: The opinion does not purport to set a new precedent; it applies established tests of finality from prior authorities and concludes that because the execution proceedings remain live the order is not a "final order" for Article 133 purposes.


End of summary — prepared strictly on the basis of the text of the provided opinion. No outside facts or inferences were introduced.

Show all summary ...

Imam, Ag.C.J:— This is an application for a certificate under Article 133 of the Constitution of India that the case fulfills the requirements of the said Article and is otherwise a fit case for appeal to the Supreme Court. It is unnecessary to state the facts which are to be found in the order of this Court. For the purpose of the present application, however, it is sufficient to state that in an execution proceeding in the court of the Subordinate Judge at Hazaribagh an objection was taken that the proceedings in execution could no longer proceed in view of the provisions of section 4(d) of the Bihar Land Reforms Act. The Subordinate Judge found in favour of the objection and ordered the dropping of the execution proceedings.

2. Against his order there was an appeal to this Court and it was held here that the provisions of section 4(d) of the Land Reforms Act did not stand in the way of the execution proceedings having regard to the facts and the circumstances appearing in the case. It was further held by this court that the objection that section 4(d) of the Land Reforms Act stood in the way of the continuance of the execution proceedings could not be raised on the ground of constructive res judicata, having regard to the order of the District Judge of Patna, dated the 6th of December 1952, declaring that the provisions of section 4(d) of the Land Reforms Act was not a bar to the execution proceedings. This Court accordingly held that Raghubir Saran Rastogi, appellant, was entitled to execute the mortgage decree by attaching the amount of Rs. 83,000/-, being the compensation money paid by the Central Government for the four villages of Mahal Gaddi Masnodih, and set aside the order of the Subordinate Judge dated the 8th of December, 1952, by which he held that the execution proceedings could not proceed in view of the provisions of section 4(d) of the Land Reforms Act.

3. There can be no question that the value of the subject matter of the dispute in the court of first instance and still in dispute in the appeal is not less than Rs. 20,000/-. There can also be no question that the order of this Court in the appeal was an order of reversal. The main consideration which arises in this case is as to whether the order of this Court is a final order. In Article 133 of the Constitution, it is provided that an appeal shall lie to the Supreme Court from any judgment, decree or final order in a civil proceeding if the High Court grants the requisite certificate. The order of this Court in the appeal was certainly not a decree; it certainly was a judgment and an order. As to what is the meaning of the words “judgment” and “decree” was considered by the Federal Court in — ‘Kuppuswami Rao v. The King’, AIR 1949 PC 1 (A), and the decision of the Federal Court as expressed by Kania, C.J was in the following words:

“In India, for civil suits, the words ‘judgment and decree’ are defined in Section 2 of the CPC, 1908. A judgment means the statement given by the Judge of the grounds of a decree or order passed by the Court. A decree is defined ‘as the formal expression of an adjudication which, so far as regards the Court expressing it, conclusively determines the rights of the parties with regard to all or any of the matters in controversy in the suit and may be either preliminary or final.’

As a judgment is only the grounds for an order, it is not the order, and this distinction is maintained by omitting the word judgment from Section 109 of the CPC, which deals with the right of appeal to the Judicial Committee from the High Court. In that section a right of appeal is given against the decree or final order only. The definitions given in the Code are, however, for the purposes of the Code only. In our opinion, the decisions of the Courts in India show that the word judgment, as in England, means the determination of the rights of the parties in the matter brought before the Court.”

4. The effect of the decision of this Court was to keep the execution proceedings alive and in those proceedings the rights of the parties have yet to be finally determined. The matter before the court of first instance was a proceeding for the execution of a decree. In execution proceedings various objections can be taken having regard to the particular circumstances of a case. In the present case an objection was taken that the execution proceedings could no longer proceed in view of the provisions of section 4(d) of the Land Reforms Act. The executing court thought that the objection was a valid one and dropped the execution proceedings. This Court, however, held that the objection was not a valid one having regard to the interpretation given to the various provisions of the Land Reforms Act and also because the objection was concluded by the application of the principle of constructive ‘res judicata’. Although a vital issue was determined by this Court, the decision of this Court did not finally determine the rights of the parties in the execution proceedings. Although there was no specific order of remand made by this Court, the effect of the decision was to keep alive the execution proceedings because the order of the Subordinate Judge dropping the execution proceedings was set aside. There is, therefore, no judgment of this Court determining the rights of the parties in the matter brought before the Court, nor is there a final order to that effect.

5. In the case of — ‘Gaya Electric Supply Co. Ltd. v. State Of Bihar*’, AIR 1951 Pat 619 (B) various decisions in England and in India were reviewed in which it has been decided as to what is the meaning of the expression “final order”. In — ‘Salaman v. Warner’, (1891) 1 QBD 734 (C) Lord Esher M.R dealing with the meaning of the expression “final order” observed:

“If their decision, whichever way it is given, will, if it stands, finally dispose of the matter in dispute, I think that for the purposes of these rules it is final. On the other hand, if their decision, if given in one way, will finally dispose of the matter in dispute, but if given in the other, will allow the action to go on, then I think it is not final, but interlocutory.”

These observations of Lord Esher amply cover the present case, because on the objection raised the decision of the Subordinate Judge finally disposed of the matter, but the decision of this Court to the contrary allowed the execution proceedings to continue.

6. In the case of — ‘Abdul Rahman v. D.K Cassim and sons’, AIR 1933 PC 58 (D). Sir George Lowndes expressing the opinion of the Judicial Committee referred to the observations of Lord Cave in — ‘Firm Ramchand Manjimal v. Firm Goverdhandas Vishindas Ratanchand’, AIR 1920 PC 86 (E) and observed:

“The objection was upheld and the appeals were dismissed. 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 he 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 section 109(a) of the Code. Their Lordships would only add that the enforcement of this principle involves no practical hardship, inasmuch as, in a proper case, it is always open, to the appellate court to give a special certificate under Section 109(c). It was pointed out in argument that there is some divergence in the views expressed in the English cases upon which the judgment in — ‘Ramchand Manjimal's case (E)’ founds; that no doubt is so, but the rule deduced for guidance under the Indian Act is clear and unambiguous and must, their Lordships think, be decisive in all cases where the question is whether an order is appealable to His Majesty in Council under the provisions of the section in question.”

7. The view expressed by Sir George Lowndes has been consistently followed in India. Sir George Lowndes did not regard a decision as to whether the point raised went to the root of the suit, namely, the jurisdiction of the court to entertain it, as sufficient, and he thought that the finality must be a finality in relation to the suit. In the present suit the finality of the decision of this Court must be considered in relation to the execution proceedings. As the decision of this Court did not put an end to those proceedings, it could not be said that the decision was final in relation to the execution proceedings. After the decision of this Court the execution proceedings are still live proceedings in which the rights of the parties have still to be determined.

8. In ‘AIR 1949 FC 1 (A)’ Kania, C.J relied on the observations of Sir George Lowndes in holding that to constitute a final order it was not sufficient to decide an important or even a vital issue in the case, but the decision must not keep the matter alive and provide for its trial in the ordinary way. In my opinion, the decision of this Court was not a final order, nor was it a judgment which determined the rights of the parties in the matter brought before the Court.

9. It was, however, argued that the expression “final order” is also to be found in Article 132 of the Constitution and that the explanation to that Article states that the expression “final order” includes an order deciding an issue which if decided in favour of the appellant would be sufficient for the final disposal of the case. It is, however, to be noticed that the explanation is only for the purposes of the said Article. Article 132 of the Constitution provides for an appeal to the Supreme Court from any judgment, decree or final order of a High Court, whether in a civil, criminal or other proceeding, where the case involves a substantial question of law as to the interpretation of the Constitution. I do not think that the explanation to Article 132 stating as to what the expression “final order” means can be applied to the provisions of Article 133. The words “judgment, decree or final order” in Article 133 of the Constitution must be construed in the same manner as they were done in — ‘AIR 1949 FC 1 (A)’ and the expression “final order” must be construed in the same manner as was done by Lord Cave and Sir George Lowndes.

10. It was next urged that this was a fit case in which a certificate for leave to appeal to the Supreme Court could be granted under Article 133(1)(c) of the Constitution. Although the order of this Court decides an important question of law, I do not think it is possible to grant such a certificate.

11. I would accordingly dismiss the application with costs.

12. Hearing fee Rs. 80/-.

13. Narayan, J.:— I agree.

A/K.S.B

14. Leave refused.