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Dinbandhu Ghosh v. Tasawar Hussain And Another Opposite Party.
Factual and Procedural Background
In 1965 the petitioner (landlord) filed a title suit seeking eviction of opposite party No. 1 (tenant) on the ground of personal requirement of the premises. The trial Court decreed the suit and the tenant filed Title Appeal No. 8 of 1965. On 15-7-1969 the petitioner (landlord) applied under Section 11-A of the Bihar Buildings (Lease, Rent and Eviction) Control Act, 1947 for an order directing the tenant to deposit arrears of rent from May 1963 at Rs. 25 per month and to deposit current and future rent at the same rate. By an order dated 29-11-1971 the learned Subordinate Judge allowed that petition and imposed a condition that failure to deposit would result in dismissal of the memorandum of appeal.
The tenant challenged that order in Civil Revision No. 1361 of 1971. This Court, by order dated 2-12-1971, at the admissible stage directed the learned Subordinate Judge to modify the penalty portion in light of a Bench decision in Sheikh Mohammad Rasool v. Sheikh Anisur Rahman (1967 BLJR 108), which held that the proper penalty for failure to comply with an order under Section 11-A is to strike out the defence to ejectment and give effect to the consequences, not to dismiss the appeal. Meanwhile the tenant had defaulted and the Court of appeal below dismissed the appeal on 9-12-1971; that dismissal was later set aside and the appeal restored pursuant to this Court's direction.
On 6-1-1975 the tenant filed an application to modify the earlier order dated 9-12-1971, relying on the Full Bench decision of this Court in Ram Nandan v. Mt. Maya Devi (AIR 1975 Pat 283) which interpreted "arrears of rent" under Section 11-A to be confined to rent accruing during the pendency of the suit (i.e., after institution) and not to rent accruing before institution. The learned Subordinate Judge modified its earlier order in accordance with that Full Bench view; the petitioner then brought the present application challenging that modification.
Legal Issues Presented
- Whether a final order made under Section 11-A of the Bihar Buildings (Lease, Rent and Eviction) Control Act, 1947 directing deposit of arrears of rent (including arrears prior to institution) — once affirmed by this Court — can be reopened and modified by the subordinate court in consequence of a subsequent change in the law (specifically the Full Bench decision in Ram Nandan Sharma's case).
- Whether the principle of res judicata prevents reopening or modification of an interlocutory but final order between the same parties at a later stage of the same proceedings on the ground of a subsequent change of judicial view.
- Whether the learned Subordinate Judge had jurisdiction to modify an order which had been challenged and confirmed (with modification) by this Court in Civil Revision No. 1361 of 1971.
Arguments of the Parties
Petitioner's Arguments (Mr. S. C. Ghose)
- The order dated 23-11-1971 directing deposit of arrears of rent from May 1963 was affirmed by this Court in Civil Revision No. 1361 of 1971 and, being a final decision at that stage, could not be reopened or modified by the Subordinate Judge even if it contained illegality. The order is binding on the parties in subsequent proceedings.
- Relied on the principle stated in Satyadhyan Ghosal v. Smt. Deorajin Debi (AIR 1960 SC 941) that the principle of res judicata applies between stages in the same litigation so that a matter once decided will not be re-agitated subsequently.
- Supported by this Court's earlier application of the same principle in Prabhu Halwai v. Fulchand (AIR 1969 Pat 16).
Opposite Party No. 1's Arguments (Mr. Sanyal)
- Relied upon Mathura Prasad Sarjoo Jaiswal v. Dossibai N.B. Jeejeebhoy ((1970) 1 SCC 613 : AIR 1971 SC 2355) to contend that a question relating to the jurisdiction of a Court — or an erroneous interpretation of a statute as to jurisdiction — cannot be treated as finally determined by an erroneous earlier decision and therefore need not operate as res judicata; accordingly, earlier orders could be reopened where they were rendered in error of law relating to jurisdiction or similar grounds.
- Placed reliance on the Madras High Court decision in Palaniappa Chettiar v. Parvathi Bai (AIR 1972 Mad 52) for the proposition that a former decision rendered according to the then-prevailing case law can be reopened when a later change in case law renders the former decision erroneous.
- Asserted that in light of the Full Bench decision in Ram Nandan Sharma's case (AIR 1975 Pat 283), the order requiring deposit of pre-institution arrears could not be sustained and therefore the Subordinate Judge was justified in modifying the earlier order.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Sheikh Mohammad Rasool v. Sheikh Anisur Rahman (1967 BLJR 108) | Even at the appellate stage, failure to carry out an order under Section 11-A should attract the penalty of striking out the defence as against ejectment and giving effect to the consequences, rather than dismissal of the appeal. | This Court earlier directed the Subordinate Judge to modify the penalty portion of its order in line with this ruling (see order dated 2-12-1971). |
| Ram Nandan v. Mt. Maya Devi (AIR 1975 Pat 283) (Full Bench) | Interpreted "arrears of rent" under Section 11-A as confined only to rent accruing after institution and during the pendency of the suit, and not to rent prior to institution. | The Court below relied upon this Full Bench decision to hold that the earlier order directing deposit of time-barred (pre-institution) arrears could not be sustained; the present Court considered that reliance when deciding whether the Subordinate Judge could reopen a final order. |
| Bhola Nath Tewary v. Kuer Rup Narain Singh Trust (1967 BLJR 397) | Held (by Untwalia, J.) that the Court has no concern with the law of limitation while making an order under Section 11-A. | Referenced as part of the historical sequence of conflicting views on interpretation of "arrears of rent" under Section 11-A. |
| Managing Committee v. Tripurary Charan Palit (AIR 1973 Pat 60) | Affirmed the view that the Court has no concern with limitation while making an order under Section 11-A. | Referenced as part of the earlier line of authority that was later overruled by subsequent decisions and the Full Bench. |
| Sashadhar Das v. Harihar Prasad (AIR 1973 Pat 361) | Division Bench held that under Section 11-A only such arrears which accrued prior to the institution of the suit and could be legally recovered (i.e., not barred) might be ordered to be deposited; it held that arrears could not be claimed beyond three years from institution. | Referred to as one of the intermediate conflicting positions on the meaning of "arrears of rent" prior to the Full Bench decision. |
| Satyadhyan Ghosal v. Smt. Deorajin Debi (AIR 1960 SC 941) | Established that the principle of res judicata applies between stages of the same litigation so that a court which earlier decided a matter will not allow parties to re-agitate the same matter at a subsequent stage of the same proceedings. | Relied on by the petitioner to argue that the earlier order once finally determined was binding and could not be reopened; the Court accepted the applicability of this principle to interlocutory orders rendered final in the strict sense. |
| Prabhu Halwai v. Fulchand (AIR 1969 Pat 16) | Applied the principle that res judicata applies between stages of the same litigation where an earlier decision is final in the strict sense. | Relied on by the petitioner in support of the res judicata contention; cited as consistent with the Supreme Court authority. |
| Mathura Prasad Sarjoo Jaiswal v. Dossibai N.B. Jeejeebhoy ((1970) 1 SCC 613 : AIR 1971 SC 2355) | Held that a question relating to the jurisdiction of a Court (or an erroneous interpretation as to jurisdiction) cannot be deemed to have been finally determined by an erroneous decision and thus may not operate as res judicata; also discussed exceptions where earlier decisions may be reopened. | Relied upon by the respondent (tenant) to argue that earlier orders could be reopened in the light of subsequent authoritative change; the Court distinguished and held this exception did not apply to the present facts. |
| Palaniappa Chettiar v. Parvathi Bai (AIR 1972 Mad 52) | Held that a former decision rendered in accordance with then-prevailing case law can be reopened by parties at a subsequent stage where a later change in case law renders the former decision erroneous. | Relied on by the respondent; the Court considered this authority but distinguished it on the ground that it related to jurisdictional questions and did not support reopening in the present factual matrix. |
| Mahabir Ram v. Shiva Shanker Prasad (AIR 1968 Pat 415) (Full Bench) | Held that an order under Section 11-A is subject to variation only if the House Controller determines during the pendency of the suit the fair rent of the premises at a figure different from that used for deposits. | Cited by the Court to underscore that, save for the contingency of a House Controller's determination of fair rent during pendency, an order under Section 11-A once final is not open to subsequent variation. |
| Gyan Mohan Das v. Hariram Maharaj (1970 BLJR 370) | Followed Mahabir Ram regarding the limited circumstances in which Section 11-A orders may be varied. | Referenced as confirming the Mahabir Ram position that final Section 11-A orders are not to be reopened except in the limited situation described. |
Court's Reasoning and Analysis
The Court traced the long line of conflicting authority on the meaning of "arrears of rent" under Section 11-A, noting earlier decisions that took different positions and the eventual Full Bench ruling in Ram Nandan Sharma's case which confined "arrears of rent" to the period after institution and during pendency of the suit.
The Court accepted the petitioner's contention that the earlier order dated 23-11-1971 (directing deposit of arrears from May 1963) had been affirmed by this Court in Civil Revision No. 1361 of 1971 (with a modification limited to the penalty) and thereby had become a final decision between the parties in the strict sense. Relying upon the Supreme Court's principle in Satyadhyan Ghosal (AIR 1960 SC 941) and this Court's application in Prabhu Halwai (AIR 1969 Pat 16), the Court held that the principle of res judicata applies to interlocutory orders which are final in the strict sense and that such final orders cannot be reopened simply because there has been a subsequent change in judicial view.
The Court considered the respondent's reliance on Mathura Prasad Sarjoo Jaiswal ((1970) 1 SCC 613 : AIR 1971 SC 2355) and Palaniappa Chettiar (AIR 1972 Mad 52), which allow reopening in cases involving jurisdictional errors or comparable exceptional circumstances. The Court distinguished those authorities on the facts: the Subordinate Judge in the present case was competent to make the original order under Section 11-A and did not err in a manner that fell within the exceptions recognized by the Supreme Court; thus the Mathura Prasad exception was not attracted.
The Court further reasoned that permitting reopening of every interlocutory order following a later change of law would produce widespread uncertainty and unfairness — including claims for rehearing in numerous cases where consequences (such as striking off defences and decrees) had already followed. To avoid such chaotic consequences, the Court applied res judicata to preserve finality in litigation where an order had been finally determined.
The Court also held that an order under Section 11-A is ordinarily not subject to subsequent variation except where the House Controller determines a different fair rent during the pendency of the suit (as laid down in Mahabir Ram v. Shiva Shanker Prasad and followed in Gyan Mohan Das v. Hariram Maharaj). Finally, the Court concluded that the Subordinate Judge lacked jurisdiction to modify an order which had been challenged and confirmed by this Court in Civil Revision No. 1361 of 1971, so that the modification effected by the Subordinate Judge was improper.
Holding and Implications
Core Ruling: The application succeeds; the impugned order passed by the learned Subordinate Judge modifying the earlier Section 11-A order is set aside and the application is allowed with costs. Hearing fee is assessed at Rs. 110/-.
Direct consequences: The Subordinate Judge's modification of the order dated 23-11-1971 (and the subsequent order dated 9-12-1971) is invalidated. The earlier order, which had been affirmed by this Court in Civil Revision No. 1361 of 1971 (subject to the limited modification directed by this Court), remains binding on the parties. The Subordinate Judge had no jurisdiction to reopen and modify that final order in the circumstances of this case.
Broader implications: The opinion applies established principles of res judicata to interlocutory orders that have become final in the strict sense, and it emphasizes that a subsequent change in judicial interpretation of a statutory provision will not automatically entitle parties to revisit final orders except in recognized and limited exceptions (for example, where House Controller determines a different fair rent during pendency). The Court did not purport to lay down a new precedent beyond applying existing authorities to the facts before it.
1. This application by the plaintiff arises out of an order passed by the Court of appeal below modifying an earlier order passed by it under Section 11-A of the Bihar Buildings (Lease, Rent and Eviction) Control Act, 1947 (briefly the ‘Act’).
2. The petitioner filed a suit in the year 1965 for eviction of the opposite party No. 1 from the premises in question on the ground that he required the same for his personal use and occupation. The suit was decreed on contest and opposite party No. 1 filed Title Appeal No. 8 of 1965 in the Court below. In that appeal, he made an application on 15-7-1969 under the provisions of Section 11-A of the Act for a direction to opposite party No. 1 to deposit all the arrears of rent from May, 1963 at the rate of Rs. 25/- per month and also current and future rents at the same rate. By his order dated 29-11-1971, the learned Subordinate Judge allowed the petition of the petitioner and directed the opposite party No. 1 to deposit the arrears of rent from May, 1963 as well as the current and future rents in terms of Section 11-A of the Act, failing which the memorandum of appeal itself was to stand dismissed. This order was challenged by opposite party No. 1 in Civil Revn. No. 1361 of 1971, and this Court by its order dated 2-12-1971 at the admissible stage itself, directed the learned Subordinate Judge to modify its above order with regard to the penalty which should follow for the failure of the defendant appellant to deposit the arrears of rent or current or future rent in terms of a Bench decision of this Court in Sheikh Mohammad Rasool v. Sheikh Anisur Rahman, (1967 BLJR 108), where it has been laid down that even at the appellate stage, on failure to carry out the order passed under Section 11-A of the Act, the penalty should be to strike out the defence as against ejectment and to give effect to the ensuing consequences, and not to dismiss the appeal itself. Default had, however, already been committed by the opposite party No. 1 in the meantime and the Court of appeal below had dismissed the appeal by an order dated 9-12-1971 before the order of this Court was communicated, but it was restored in view of the order of this Court on the application of opposite party No. 1.
3. On 6-1-1975, opposite party No. 1 filed a petition for modification of the order passed under Section 11-A of the Act on 9-12-1971 stating that in view of the Full Bench decision of this Court in Ram Nandan v. Mt. Maya Devi, (AIR 1975 Pat 283) (FB), he was not required to deposit the arrears of rent for the period before the date of institution of the title suit. The learned Subordinate Judge by the impugned order has modified the said order dated 9-12-1971, which is under challenge in this application.
4. The provision of Section 11-A of the Act has fallen for consideration before this Court on times without number and the views of this Court changed from time to time. According to this provision, a landlord may make an application at any stage of the suit for order on the tenant to deposit monthly rent at a rate at which it was last paid and also “arrears of rent”. The expression “arrears of rent”, as already indicated above, has been the subject-matter of great controversy from time to time and received different interpretation until it was finally settled by the Full Bench decision in Ram Nandan Sharma's case (AIR 1975 Pat 283) (FB) (supra). Earlier Untwalia, J. (as he then was) in Bhola Nath Tewary v. Kuer Rup Narain Singh Trust, (1967 BLJR 397), while considering this question had ruled that “Court has no concern with the law of limitation while making an order under Section 11-A of the Act”. The learned Judge affirmed his above view again in the case of the Managing Committee v. Tripurary Charan Palit, (AIR 1973 Pat 60). A Division Bench of this Court in Sashadhar Das v. Harihar Prasad, (AIR 1973 Pat 361), however, overruled the above decisions and held that under this section only such arrears of rent which accrued due prior to the institution of the suit may be ordered to be deposited which could be legally recovered by the landlord and is not barred by any law. It was, accordingly, held that arrears of rent under the said provision could not be claimed for a period beyond three years from the date of institution of the suit. This view held the field for a long time, but it was again changed and ultimately the question was referred to a Full Bench and the Full Bench in Ram Nandan Sharma's case (supra) overruled the earlier views of this Court and firmly held that the expression “arrears of rent” was confined only to the period after the institution and during the pendency of the suit, and not earlier to that. The Court below while modifying its earlier order has taken the view that in view of the above Full Bench decision “the order of this Court directing the defendant appellant to deposit the time barred arrears of rent cannot be sustained because on the face of it the order is wrong and erroneous now”
5. Mr. S.C Ghose appearing for the petitioner challenged the order of the learned Subordinate Judge on the ground that the earlier order dated 23-11-1971 directing the opposite party No. 1 to deposit the arrears of rent from May 1963, which was affirmed by this Court in Civil Revision No. 1361 of 1971, as indicated earlier, could not be modified even if any illegality was committed in the said order and the said order would be binding on both the parties in this proceeding. Reliance was strongly placed upon the decision of the Supreme Court in the case of Satyadhyan Ghosal v. Smt. Deorajin Debi, (AIR 1960 SC 941), where it has been observed:
“The principle of res judicata applies also as between two stages in the same litigation to this extent that a Court, whether the trial Court or a higher Court, having at an earlier stage decided a matter in one way will not allow the parties to reagitate the matter again at a subsequent stage of the same proceedings.”
6. Following the above decision, a Bench of this Court in Prabhu Halwai v. Fulchand, (AIR 1969 Pat 16) held that “apart from Section 11, the principle of res judicata applies also between two stages in the same litigation to this extent that a Court, whether the final Court or a higher Court, having at an earlier stage decided the matter in one way will not allow the parties to reagitate the matter again at a subsequent stage of the same proceeding. But in the earlier stage of the litigation the decision must be final in the strict sense of the term”.
7. In order to meet the above contention, learned counsel for the opposite party No. 1 placed strong reliance upon a decision of the Supreme Court in the case of Mathura Prasad Sarjoo Jaiswal v. Dossibai N.B Jeejeebhoy, ((1970) 1 SCC 613 : AIR 1971 SC 2355) where it has been observed that “a question relating to jurisdiction of a Court cannot be deemed to have been finally determined by erroneous decision of that Court and if by an erroneous interpretation of the statute a Court holds that it has no jurisdiction, the question would not operate as res judicata. Similarly, by an erroneous decision if the Court assumes jurisdiction which it does not possess under a suit, the question cannot operate as res judicata between the same parties, whether the cause of action in the subsequent litigation is the same or otherwise”. The facts of this case may be noticed very briefly. On an earlier occasion, when an application was filed in the Court of the Civil Judge, Junior Division, Borivli, District Thana, for determination of the standard rent of the land under Section 11 of the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947, the Civil Judge had rejected the application holding that the provision of the said Act did not apply to open land let out for constructing building for residence, etc. This order was confirmed by a single Judge of the Bombay High Court. Later on, the Bombay High Court in a different set of cases held that the provisions of the above Bombay Rents Act did not altogether exclude from its application an open plot. Relying upon this decision, a fresh application was filed in the Court of Small Causes, Bombay, for an order determining the standard rent of the premises as the area in which the land was situate had since been included within the limits of the Greater Bombay Area. The trial Court rejected the application on applying the principle of res judicata and the order was confirmed up to the High Court of Bombay. The matter went to the Supreme Court on special leave. The Supreme Court overruling the view of the Bombay High Court observed that “the doctrine of res judicata belongs to the domain of procedure. It cannot be exalted to the status of a legislative direction between the parties so as to determine the question relating to the interpretation of enactment affecting the jurisdiction of a Court finally between them, even though no question of fact or mixed question of law and fact and relating to the right in dispute between the parties has been determined thereby”. Proceeding further, it was observed that a pure question of law unrelated to facts which give rise to a right, cannot be deemed to be matter in issue. While the Supreme Court still maintained in this decision also that a previous decision on a matter in issue is a composite decision, the decision on law cannot be dissociated from the decision of facts on which the right is founded. A decision on an issue of law will be as res judicata in the subsequent proceeding between the same parties, if the cause of action of the subsequent proceeding be the same as in the previous proceeding. Exceptions have however been made in the following cases; (a) when the cause of action is different, (b) when the law has since the earlier decision been altered by a competent authority, (c) when the decision relates to the jurisdiction of the Court to try the earlier proceeding, and (d) when the earlier decision declares valid a transaction prohibited by law.
8. In a very similar situation, the Madras High Court, following the above decision of the Supreme Court, in Palaniappa Chettiar v. Parvathi Bai, (AIR 1972 Mad 52) held that a former decision between the parties rendered in accordance with the case law then in force can be reopened by any of the parties at a subsequent stage of the proceeding on ground of the latest change in the case law rendering the former decision erroneous.
9. Mr. Sanyal, strongly leaned on this decision and contended that the earlier order passed by the learned Subordinate Judge on 23-11-1971 directing deposit of arrears of rent for a period earlier to the institution of the suit, in view of the earlier decisions of this Court, could now be reopened on account of the latest change in the said view, rendering erroneous.
10. The argument of Mr. Sanyal, although attractive on its face, cannot be accepted as there is a clear fallacy in the same. In the case before the Madras High Court also, the earlier order which was held not to be operative as res judicata, was also with respect to the jurisdiction of the Court in relation to the entertainment of an application under the provision of the Madras Buildings (Lease and Rent Control) Act, 1960, where following the Supreme Court decision, it was held that the question relating to jurisdiction of the Rent Controller cannot be deemed to have been finally determined by an erroneous decision of the Court and that such question of jurisdiction cannot be barred by the principle of res judicata.
11. The point, in my opinion cannot be said to be covered by either of the decisions relied upon by Mr. Sanyal. The Subordinate Judge, in this case was fully competent to pass the order under Section 11-A of the Act, and in course of that he might commit even an illegality of law or fact. That order when it became final, would be binding on the parties and, would be fully covered by the authority of the Supreme Court in AIR 1960 SC 941 (supra) where it was observed that the principle of res judicata was applied by Courts for the purpose of achieving finality in litigation. Even in the case of Mathura Prasad Sarjoo Jaiswal, ((1970) 1 SCC 613 : AIR 1971 SC 2355), the Supreme Court has affirmed its earlier view that a decision of a competent Court on a matter in issue may be res judicata between the same parties. “The matter in issue may be an issue of fact, an issue of law or one of mixed law and fact”. An issue of fact or an issue of mixed law and fact decided by a competent Court is finally determined between the parties and cannot be reopened between them. It is very clearly stated in this decision that a decision on an issue of law will be as res judicata in a subsequent proceeding between the same parties, if the cause of action of the subsequent proceeding be the same, as in the previous proceeding. The learned Judges have indicated the exceptions where this principle would have no application, which I have mentioned earlier. I am afraid, the contention raised by Mr. Sanyal is not covered by any of the exceptions.
12. If the argument of Mr. Sanyal is accepted, its practical consequences, however, would be appalling to contemplate. The default in compliance of the order passed under Section 11-A has been made penal and results in striking off the defence against ejectment of the tenant. In cases where on account of the order passed by subordinate Courts, in terms of the earlier view of this Court, defence has been struck off, decrees have been passed and issues determined; then in all such cases the tenants would claim rehearings of their cases and challenge the old orders striking off their defence on the ground that it was as a consequence of an illegal order and a state of confusion would follow. It is only to guard against such consequences that the principle of res judicata has been applied to interlocutory orders as well. It is since well settled that rights of parties have to be decided and determined in accordance with the law in force at the time when the same is decided, and once the decision becomes final, any subsequent change of law will not entitle any party bound by that decision, to challenge the same in any collateral proceeding.
13. Considering the point canvassed before me, I have no doubt in taking the view that the learned Subordinate Judge has committed an apparent error of jurisdiction in refusing the earlier order in this purported attempt to give effect to the change of view expressed by this Court on a subsequent occasion in the year 1974 in respect of a matter which had already been concluded and the rights of the parties had been determined and consequences followed in pursuance thereof.
14. Any order passed under Section 11-A of the Act by any Court is subject only to variation if the House Controller determines during the pendency of the suit the fair rent of the premises in question somewhat different, as observed by the Full Bench in Mahabir Ram v. Shiva Shanker Prasad, (AIR 1968 Pat 415) (FB) and again in the case of Gyan Mohan Das v. Hariram Maharaj, (1970 BLJR 370) following the said decision and in no other case once the order becomes final.
15. There is yet another ground on which the order of the learned Subordinate Judge must be set aside. The order dated 23-11-1971 had been challenged in this Court in Civil Revision No. 1361 of 1971 and was confirmed only with a slight modification.
16. The learned Subordinate Judge, therefore, had no jurisdiction to modify the said order and, in my opinion, that would amount to a modification by a subordinate Court of an order passed by the Court.
17. For all the aforesaid reasons, this application must succeed and the impugned order passed by the learned Subordinate Judge set aside. The application is accordingly, allowed with costs. Hearing fee is assessed at Rs. 110/- only.
18. Application allowed.
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