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  • provisions of Article 133 or Article 134
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  • provisions of Article 133 or Article 134
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Smart Summary

Structured Summary of the Opinion

Factual and Procedural Background

These proceedings concern four petitions (Civil Misc. Applns. Nos. 772/C, 773/C, 774/C and 775/C of 1954) for leave to appeal to the Supreme Court against four decrees of this Court which had reversed decrees of the Courts below.

The underlying factual matrix (as recorded in Civil Regular Second Appeal No. 465 of 1951) is that the plaintiff brought eleven suits against the Railway claiming various sums as compensation for non-delivery of goods. The trial Court dismissed all the suits; the District Judge affirmed those decrees. Four of those cases were appealed to this Court, which reversed the decrees of the Courts below. The Insurance Company, a party defendant in the proceedings, sought leave to appeal to the Supreme Court and applied to consolidate the pecuniary value of the suits for jurisdictional purposes.

An objection was raised that leave could not be granted as a matter of course because even if consolidation were allowed the aggregated value would not reach the Rs. 20,000 threshold applicable under the Constitution (replacing the earlier Rs. 10,000 limit).

Legal Issues Presented

  1. Whether leave to appeal to the Supreme Court can be granted when the consolidated pecuniary value of suits filed (some before the Constitution) does not reach the Rs. 20,000 threshold specified by Article 133(1)(a) of the Constitution.
  2. Whether parties possess a vested right to appeal to the Supreme Court in the same manner as they previously had to the Privy Council or the Federal Court — i.e., whether an appeal lies irrespective of the change in the pecuniary limit enacted by the Constitution.
  3. Whether Article 135 can operate to supply jurisdiction in cases that do not meet the pecuniary or other requirements of Article 133, particularly for matters where proceedings were not pending in the Federal Court immediately before the commencement of the Constitution.
  4. Whether the case is "fit for appeal" under clause (c) of Article 133(1), permitting leave notwithstanding pecuniary limitations.

Arguments of the Parties

Petitioner's Arguments

  • Counsel for the petitioner (Mr. Shambhu Lal Puri) contended that parties have a vested right to appeal to the Supreme Court in the same manner as they previously had an appeal to the Privy Council or Federal Court, and that this vested right should survive the change in pecuniary limits under the Constitution.
  • The petitioner relied on the decision in Dajisaheb v. Shankarrao Vithalrao (AIR 1952 Bom 303) to argue that the right of appeal under Section 110, Civil Procedure Code, continues for suits filed prior to the coming into force of the Constitution, and that Article 133(1) does not deprive litigants of that right.
  • The petitioner also urged that the matter was "fit for appeal" under clause (c) of Article 133(1), pointing to specified grounds of appeal (paragraphs 3, 7, 8 and 9) as bringing the case within the phrase "fit for appeal to the Supreme Court".

Opposing/Respondent Arguments and Objection

  • An objection was raised (by the opposing side to the leave application) that leave could not be given as a matter of course because, even if the appeals were consolidated, the pecuniary value would not reach the Rs. 20,000 limit required by Article 133(1)(a).
  • Reliance was placed on Nathoo Lal v. Durga Prasad (AIR 1954 SC 355), and on decisions of the Madras and Calcutta High Courts (Veeranna v. Venkanna; Prabirendra Mohan v. Berhampore Bank Ltd.), which were said to support the proposition that Article 133(1) applies to judgments or decrees passed after the commencement of the Constitution and that the valuation limit is Rs. 20,000 (not Rs. 10,000).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Nathoo Lal v. Durga Prasad, AIR 1954 SC 355 Held that the provisions of Article 133 apply to decrees passed after the passing of the Constitution; the Code of Civil Procedure could not determine Supreme Court jurisdiction. Relied upon by the Court to reject the submission that a vested right of appeal (as under the old Code) survives irrespective of Article 133's requirements; supports application of Article 133(1)(a) for post-Constitution decrees.
Veeranna v. Venkanna, ILR (1953) Mad 1079 : AIR 1953 Mad 678 Held that if a judgment is delivered or decree passed after commencement of the Constitution, Article 133(1) is applicable; Article 135 applies only where Articles 133 & 134 do not apply. Cited by the Court as consistent with the view that Article 133 governs appeals for decrees passed after the Constitution.
Prabirendra Mohan v. Berhampore Bank Ltd., AIR 1954 Cal 289 Held that in judgments passed after the coming into operation of the Constitution the valuation limit is Rs. 20,000 and not Rs. 10,000. Used to support the conclusion that the pecuniary limit under Article 133(1)(a) is Rs. 20,000 for post-Constitution decrees.
Dajisaheb v. Shankarrao Vithalrao, AIR 1952 Bom 303 Held that a right of appeal under Section 110, Civil P.C., continues in respect of suits filed prior to the coming into force of the Constitution and that Article 133(1) does not deprive litigants of that right; noted substitution in Section 110 of Rs. 30,000 for Rs. 10,000. Noted by the Court as the principal authority relied upon by the petitioner, but the Court distinguished its reasoning from the Supreme Court's later pronouncements and did not accept it as overriding Article 133 for post-Constitution decrees.
State of Seraikella v. Union of India, 1951 SCR 474 : AIR 1951 SC 253 Statement that the Federal Court was abolished and the Supreme Court created as a new Court with original jurisdiction strictly limited; Supreme Court inherited only some jurisdiction of the Federal Court. Quoted by the Court to support that the Supreme Court is a new institution and that appeals against decrees are governed by the Constitution (Article 133) rather than by pre-Constitution procedural codes.
Canada Cement Co. v. Town of East Montreal, (1922) 1 AC 249 : (Privy Council) Illustrates that where the court to which appeals lay was abolished and no provision made for transferring those appeals, the right of appeal may be lost (the abolished court's remedies did not automatically transfer). Applied by the Court as an example of a situation in which abolition of a court without provision for transfer resulted in the loss of an appeal route; used to explain limitations on "vested" rights of appeal.
Vasudeva Samiar In re, 52 Mad 361 : AIR 1929 Mad 381 Summarizes the Canada Cement principle: when the court to which appeals lay is abolished and no provision for transference of appeals is made, an appeal does not lie to the newly constituted appellate court. Quoted in the opinion to illustrate the principle that abolition of a court without provision for transfer may terminate the right of appeal.
La-chmeshwar Prasad v. Keshwar Lal, (1940) FCR 84 : AIR 1941 FC 5 Held that unless an appeal to the Federal Court had been admitted, the proceeding must be deemed pending before the High Court in respect of which the Federal Court could not exercise jurisdiction. Relied upon (via the Madras judgment) to support the proposition that for the Federal Court to have exercisable jurisdiction in relation to a case, the judgment or decree must have been delivered before the Constitution came into force.
Banarsi Parshad v. Kashi Krishna Narain, 28 Ind App 11 (PC) Rule by Lord Hobhouse concerning what constitutes a question of 'private importance' for the purposes of allowing appeals; private importance must be to both parties. Invoked by the Court when considering whether the present case qualified as a fit case for appeal under clause (c) of Article 133(1); the Court found the case did not meet that test as interpreted in this line of authority.
Raja of Ramnad v. Tiruneelakantam Servai, AIR 1923 Mad 232 Madras High Court interpretation of Banarsi Parshad: a question of private importance must be of private importance to both parties, not only to one. Applied by the Court to determine that the appellant's asserted grounds did not render the matter fit for appeal under Article 133(1)(c).

Court's Reasoning and Analysis

The Court proceeded by first stating the text of Article 133(1)(a), which requires that the amount or value of the subject-matter in dispute in the court of first instance and still in dispute on appeal be not less than twenty thousand rupees (or such other sum as Parliament may specify).

The Court addressed the petitioner's submission that parties had a vested right to appeal to the Supreme Court regardless of the change in pecuniary limits. It rejected that submission, relying on the Supreme Court's own pronouncement in Nathoo Lal v. Durga Prasad (AIR 1954 SC 355) that the right of appeal to the Supreme Court must be determined by the requirements of Article 133(1)(a) and not by any pre-Constitution Code of Civil Procedure.

The Court cited Patanjali Bastri J.'s statement in State of Seraikella v. Union of India that the Federal Court was abolished and the Supreme Court created as a new Court; while the Supreme Court inherited some jurisdiction, appeals against decrees are governed by Article 133(1)(a). From this the Court concluded that where a decree was passed after the Constitution came into force, the appeal is to be governed by Article 133(1)(a) (i.e., the Rs. 20,000 limit), not by the old Section 110 of the Civil Procedure Code.

The Court examined the argument that Article 135 could supply jurisdiction where Article 133 did not apply. It held that Article 135 cannot be used to include cases which do not fulfil the pecuniary or other requirements of Article 133; Article 135 applies to matters to which Articles 133 or 134 do not apply insofar as jurisdiction previously exercisable by the Federal Court is concerned, but it does not convert a case that fails to meet Article 133's requirements into one within Article 133.

The Court relied on the reasoning in the Madras decision (and the La-chmeshwar Prasad case) to the effect that for the Federal Court's jurisdiction to be 'exercisable' in relation to a case immediately before the commencement of the Constitution, the judgment or decree should have been delivered (or the final order passed) before that date. Because the decrees in the present matter were passed after the Constitution's commencement, Article 133(1)(a) governs.

Finally, regarding the contention that the case was "fit for appeal" under clause (c) of Article 133(1), the Court found no basis to classify it as such. The petitioner relied on specified grounds (paras. 3, 7, 8 and 9), but these were not the pleas presented in the Courts below and did not satisfy the test in Banarsi Parshad as interpreted by the Madras decisions: the asserted matters were not of private importance to both parties. On that basis the Court concluded the case did not fall within Article 133(1)(c).

Holding and Implications

Holding: The petitions for leave to appeal were dismissed. In the Court's words, the petitions are dismissed with costs.

Implications:

  • Direct effect on the parties: leave to appeal to the Supreme Court was refused; the Insurance Company's application to consolidate and thereby meet the pecuniary threshold was not sufficient to satisfy Article 133(1)(a) for decrees passed after the Constitution.
  • The Court applied the view that Article 133(1)(a)'s Rs. 20,000 threshold governs appeals from decrees passed after the Constitution, and that Article 135 does not enlarge Article 133's pecuniary requirements for such cases.
  • The opinion does not purport to establish a broader novel precedent beyond applying existing Supreme Court and High Court authorities to these facts; the decision's immediate consequence is the dismissal of these leave petitions with costs.

Concurrence: Falshaw, J. recorded agreement with the judgment ("I agree").

    The Indian Trade And General Insurance Co., Ltd, v. Raj Mal-Pahar Chand And Another,

    1. These are four petitions (Civil Misc. Applns. Nos. 772/0, 773/C, 774/C and 775/C of 1954) for leave to appeal to the Supreme Court against four decrees of this Court reversing the decrees Of the Courts below in the four cases.

    2. The facts of the case are given in the judgment in Civil Regular Second Appeal No. 465 of 1951'. The plaintiff brought eleven suits against the Railway claiming various sums of money as compensation for non-delivery of goods. All the suits were dismissed by the trial Court and those decrees were affirmed by the District Judge. Appeals in four cases were brought to this Court in which the decrees passed by the Courts below were reversed and the Insurance Company which was a party defendant has applied for leave to appeal to the Supreme Court consolidating the pecuniary value of the suits for purposes of Jurisdiction.

    3. An objection is raised that leave cannot be given as a 'matter of course because even If the appeals are allowed to be consolidated the value does not come to Rs. 20,000/- which is the allowable limit. It is not Rs. 10,000/- any longer. Reliance is placed on a judgment of the Supreme Court in Nathoo Lal v. Durga Prasad ., AIR 1954 SC 355 (A). There on review a decree was finally passed in April 1950 when the Jaipur High Court had been abolished and was substituted by the Rajasthan High Court.

    It was held that the provisions of Article 133 apply to decrees passed after the passing of the Constitution of India and it is the requirements of that Article which have to be fulfilled and the Code of Civil Procedure of Jaipur could not determine the jurisdiction of the Supreme Court and had no relevancy to the maintainability of the appeal and as the requirements of Article 133 had been fulfilled the appeal was competent.

    The Madras High Court in Veeranna v. Venkanna, ILR (1953) Mad 1079 : (AIR 1953 Mad 678) (PB) (B) have held that if a judgment is delivered or decree passed after the commencement of the Constitution, then the provisions of Article 133(1) are applicable & that Article 135 applies only where Articles 133 & 134 do not apply. Same view was taken by the Calcutta High Court in Prabirendra Mohan v. Berhampore Bank Ltd. AIR 1954 Cal 289 (C), Where it was held that in judgments passed after the coming into operation of the Constitution the valuation limit is Rs. 20,000/- and not Rs. 10,000/-.

    But counsel for the petitioner relies on a judgment of the Bombay High Court in Dajisaheb v. Shankarrao Vithalrao, AIR 1952 Bom 303 (D) in which it was held that a right of appeal under Section 110, Civil P. C. continues in respect of all suits filed prior to the coming into force of the Constitution and there is nothing in Article 133(1) of the Constitution by which the litigant is deprived of that right and that position is made clear by Section 110, Civil P. C. where Rs. 30,000/- is substituted in place of Rs. 10,000/-.

    The learned Judges also relied upon Article 135 of the Constitution which confers upon the Supreme Court a different and wider jurisdiction than that under Article 133. Right to appeal, therefore, is not lost because of the abolition of the Privy Council or of the Federal Court or because the matter is not covered by Article 133(1).

    4. Article 133(1)(a) provides for leave to appeal to the Supreme Court in the following words:

    "133. (t) An appeal shall lie to the Supreme Court from any judgment, decree or final order In a civil proceeding of a High Court in the territory of India if the High Court certifies--

    (a) that the amount or value of the subject-matter of the dispute in the court of first instance and still in dispute on appeal was and is not less than twenty thousand rupees or such other sum as may be specified in that behalf by Parliament by law";

    Mr. Shambhu Lal Puri has contended that parties to a suit have a vested right to appeal to the Supreme Court in the same manner as they had in regard to their right of appeal to the Privy Council and as after the abolition of the Privy Council there was a vested right to appeal to the Federal Court and the same right continues in regard to appeals to the Supreme Court also and he submits that because before the Constitution came into force an appeal lay to the Federal Court he can appeal to the Supreme Court Irrespective of the change in the limit of valuation.

    Now, in my opinion, that is an argument which is not sustainable after the judgment of the Supreme Court themselves in AIR 1954 SC 355 (A), because they have pointed out that the right of appeal to the Court is not to be determined by any Code of Civil Procedure but an appeal lies when the requirements of Article 133(1)(a) are complied with. This only means that where the value is Rs. 20,000/- or more an appeal would lie and not where the value is less than that amount. In the judgment of Patanjali Bastri J. in State of Seraikella v. Union of India, 1951 SCR 474 at p. 497 : (AIR 1951 SC 253 at p. 261) (E) it 1s said--

    "The Federal Court, in which the suits were pending, and which had exclusive Jurisdiction to deal with them, was abolished and a new Court, the Supreme Court of India, was created with original jurisdiction strictly limited to disputes relating to legal rights between States recognised as such under the Constitution."

    Therefore, the Supreme Court is a new Court although it has inherited some of the jurisdiction of the Federal Court. But in regard to appeals against decrees passed by Courts the Article which Is applicable is Article 133(1) (a) and it cannot be said that in this particular case or in other cases where the suits were filed before the Constitution but were decided after, the limit of pecuniary jurisdiction would continue to be Rs. 10,000/- although the Article itself says that it is Rs. 20,000/-

    In my opinion and I say so with due respect that the view taken by Madras and Calcutta High Courts in the cases which I have mentioned seems to be in keeping with the view taken by the Supreme Court in 1951 SCR 474 : (AIR 1951 SC 253) (E), and the latest pronouncement of their Lordships seems to confirm the view taken by Madras and Calcutta end I would, therefore, hold that the value for purposes of jurisdiction has to be Rs. 20,000/- as provided by the Constitution and not Rs. 10,000/- as provided by the old Civil Procedure Code.

    5. It is then submitted that Article 135 would apply because the provisions of Article 133 do not, but if a specific Article governs the pecuniary limits of an appeal then Article 135 will not be applicable, and I respectfully agree With the Madras view ILR (1953) Mad 1079 : (AIR 1953 Mad 878) (B) that the institution of the suit carries with it the preservation of the vested right of parties in regard to the appeal but with the exception that there is no right of appeal where the right is expressly or impliedly taken away or the Court to which the appeal was to be taken is abolished without there being a provision for appeals which lay to the abolished Court. Canada Cement Co. V. Town of East Montreal, (1922) 1 AC 249 : (AIR 1921 PC 219) (F), was a case of this kind.

    A summary of the Judgment of that Court has been given by Coutts-Trotter C. J. in Vasudeva Samiar In re, 52 Mad 361 : (AIR 1929 Mad 381) (FBI (G) as follows:

    "In that case what was taken away was not the right of appeal but the very Court to which the appeal lay, namely, the Superior Court of Montreal sitting in review. By 10 George v. Chapter 79 (Quebec), the right of appeal was transferred from the abolished Court to the Appellate Side of the Court of King's Bench in Quebec, but no provision was made for the transference of appeals which would have lain to the abolished Court to the newly constituted Appellate Court. In these circumstances their Lordships of the Privy Council held that an appeal from the Circuit Court to the Court of King's Bench did not lie"
    .

    8. When the present suits were filed the final Court of appeal would have been the Federal Court and when this Court was abolished on coming into force of the Constitution the proceedings pending in the Federal Court in regard to appeals stood removed to the Supreme Court but there was no provision made as regards proceedings by way of appeal or otherwise not pending in the Federal Court at the commencement of the Constitution. Nor can Article 135 be taken to supply the lacuna to mean that the words "any matter to which the provisions of Article 133 or Article 134 do not apply" can be construed to include a case which did not fulfil the requirements, pecuniary or otherwise, of Article 133.

    Article 135 when quoted is as under:--

    "Until Parliament by law otherwise provides, the Supreme Court shall also have jurisdiction and powers with respect to any matter to which the provisions of Article 133 or Article 134 do not apply if Jurisdiction and powers in relation to that matter were exercisable by the Federal Court immediately before the commencement of this Constitution under any existing law."

    The decree in the present case was passed after the Constitution and as was pointed out by Raja-mannar C, J. in the Madras case at page 1096 (of ILR Mad) (at p. 683 of AIR)--

    "There is another aspect of the question to which I shall briefly refer. It was held in La-chmeshwar Prasad v. Keshwar Lal, (1940) FCR 84 : (AIR 1941 FC 5) (H), that unless an appeal to the Federal Court had been admitted the proceeding must be deemed to be pending before the High Court in respect or which the Federal Court could not exercise jurisdiction.

    If that be so, how can it be said that a case in which the decree was passed after the commencement of the Constitution is a matter in relation to which jurisdiction and powers were exercisable by the Federal Court immediately before the commencement of the Constitution? In my opinion it is at least necessary that the Judgment should have been delivered or the decree or final order passed before the Constitution to say that the Federal Court had any exercisable jurisdiction and powers in relation to a case.

    Whether it is also necessary that an application for leave should have been filed or granted before that date it is unnecessary to discuss now, as in the present case neither event has happened before the Constitution."

    In my view, therefore, it must be held that in regard to a judgment which is passed after the Constitution came into force the appeal is to be governed by Article 133(1)(a) and not by Section 110, Civil P. C. as it existed before the Constitution.

    7. The next submission of counsel was that leave should be given because it is a fit for appeal under Clause (c) of Article 133(1), i.e. it is a case fit for appeal to the Supreme Court. I cannot find anything in the present case which would bring it within this clause.

    The petitioner says that his grounds of appeal in paras. 3, 7, 8 and 9 bring it within the phrase "fit for appeal to the Supreme Court" but I am unable to agree because it was not his plea in the Courts below that the suit was not barred by time and the points which he wishes to raise now do not fall within the rule laid down by Lord Hobhouse in Banarsi Parshad v. Kashi Krishna Narain, 28 Ind App 11 (PC) (I) as interpreted by the Madras High Court in Ra]a of Ramnad v. Tiruneelakantam Servai, AIR 1923 Mad 232 (J), where it was held that by a question being of private importance is meant private importance to both parties to the litigation and not only to one of them. Therefore, according to the findings of this Court the case is not one which falls within Banarsi Parshad's case (I), and it cannot be Bald that the case is a fit one for appeal to the Supreme Court. I would, therefore, dismiss these petitions with costs.

    Falshaw, J.

    8. I agree.

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    The Indian Trade And General Insurance Co., Ltd, v. Raj Mal-Pahar Chand And Another,
    (Mar 13, 1956)