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Ratanlal v. Bhairudan
Factual and Procedural Background
This matter concerns an application by Ratanlal for a certificate granting leave to appeal to the Supreme Court under Article 133(1)(a), (b) and (c) from a Division Bench judgment of this Court dated 13-5-1952 in Civil Revision No. 41 of 1951.
In 1928 Ratanlal and his brother Ranchhor Dass obtained a monopoly to start a wool press from the former State of Bikaner. Lacking capital, they borrowed from Kaluram Chauthmal. An arbitration award in June 1930 required Ratanlal to pay Rs. 73,000 to Kaluram Chauthmal within a stipulated time; payment would vest the press in Ratanlal and his brother, but default would entitle Kaluram Chauthmal to Rs. 10,000 and ownership of the press. Ratanlal and his brother borrowed Rs. 73,000 (and an additional Rs. 11,000) from Bhairu Dan and paid off Kaluram Chauthmal.
A dispute later arose as to whether the transaction with Bhairu Dan was a sale (claimed by Bhairu Dan for Rs. 84,000) or a mortgage (claimed by Ratanlal and his brother). The Patta of the press was granted to Bhairu Dan and notified on 18-10-1930; Bhairu Dan took possession of most of the building and eventually obtained possession of the remaining two rooms in February 1934.
On 5-2-1936 Ratanlal and his brother petitioned the Bikaner High Court for leave to sue in forma pauperis and for recovery of possession. The Bikaner High Court held they were paupers but dismissed the petition for want of a cause of action while allowing two months to make good the court fee if they wished to proceed. Ratanlal and his brother pursued revision and appeal to the Judicial Committee of the former State of Bikaner; those were dismissed (revision and September 1938 appeal). A later Faryadi petition to the Maharaja resulted in an order dated 31-3-1949 waiving limitation and permitting a suit to be brought on or before 6-4-1949.
On 5-4-1949 Ratanlal petitioned the District Judge of Bikaner for permission to sue in forma pauperis, based on dispossession in February 1934. In December 1950 the District Judge dismissed the petition on the ground that under Order 33, Rule 15, C.P.C. no second petition for leave to sue in forma pauperis lay; nevertheless, the District Judge directed Ratanlal to make good the court-fee within two months so that the suit could be registered. Ratanlal challenged the latter direction in revision, contending that the District Judge lacked jurisdiction to grant time while rejecting the application as not maintainable under Order 33, Rule 15.
A Single Judge of this Court referred the following question to a Division Bench: whether, while rejecting an application for permission to sue as a pauper under Order 33, Rule 15, C.P.C., the court is competent under Section 149, C.P.C. to treat the application as a plaint and allow the applicant to pay the requisite court-fee stamp.
A Division Bench (to which one of the present Bench was a party) held that the document filed was an application for leave to sue in forma pauperis (not a plaint), that a second application under Order 33, Rule 15 does not lie, and therefore the District Judge had no jurisdiction to grant time for making good the court-fee. The Division Bench set aside the part of the District Judge's order granting time but expressly declined to decide whether the suit could be treated as having been filed on the date court-fee or costs were later paid or deposited.
Ratanlal then applied for a certificate for leave to appeal to the Supreme Court under Article 133(1)(a), (b) and (c) against the Division Bench order of 13-5-1952. The application is the subject of the present opinion.
Legal Issues Presented
- Whether the Division Bench order dated 13-5-1952 is a "judgment, decree or final order" within the meaning of Article 133(1) so as to permit the High Court to certify leave to appeal to the Supreme Court under Article 133(1)(a), (b) or (c).
- Whether, when rejecting an application for permission to sue as a pauper under Order 33, Rule 15, C.P.C., the court can, under Section 149, C.P.C., treat the application as a plaint and allow the applicant to make good the requisite court-fee (the referred question to the Division Bench).
- Whether an order refusing leave to sue in forma pauperis can be treated as final for the purpose of appeal to the Supreme Court.
Arguments of the Parties
Applicant's Arguments (Ratanlal)
- The applicant contended that an appeal lies to the Supreme Court from any judgment and that there was a judgment of this Court dated 13-5-1952 from which leave should be granted.
- It had been argued before the Division Bench that the matter before the District Judge was not an application for permission to sue in forma pauperis but was in substance an insufficiently stamped plaint; therefore the District Judge had power under Section 149, C.P.C. to require payment of deficiency of court-fee.
Opposite Parties' Arguments
- The opposite parties' principal contention was that the order dated 13-5-1952 is not a final order, and consequently no leave to appeal can be granted under Article 133(1), which requires a judgment, decree, or final order.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| Firm Ramchand Manjimal v. Firm Goverdhandas Vishandas Ratanchand, AIR 1920 PC 86 | Defines final order: "the order is final if it finally disposes of the rights of the parties" and that orders refusing stays are not final because they do not finally dispose of rights. | The Court relied on this articulation of finality to assess whether the Division Bench order finally disposed of the parties' rights; it supported the conclusion that the order was not final. |
| V.M. Abdul Rahman v. D. K. Cassim & Sons, AIR 1933 PC 58 | Reiterates the test of finality: finality is whether the order finally disposes of the rights of the parties; if the suit remains alive and rights remain to be determined, the order is not final. | The Court used the decision to emphasize that finality must be in relation to the suit and to conclude the impugned order was not final. |
| Dr. Hori Ram Singh v. Emperor, AIR 1939 FC 43 | Observations (Sulaiman J.) on the meaning of 'judgment' in context — used to limit 'judgment' to final decisions in certain contexts. | The Court referred to these observations to reject the applicant's argument that every decision labelled a "judgment" is appealable under Article 133; the Court held 'judgment' must have the quality of finality when used alongside 'decree' or 'final order'. |
| S. Kuppuswami Rao v. The King, AIR 1949 FC 1 | Federal Court view that the term 'judgment' in S.205 of the Government of India Act, 1935, indicates a final decision of the matter in dispute before a court. | The Court cited this authority to support the position that 'judgment' for the purposes of appellate jurisdiction implies finality and cannot be read so widely as to make 'decree' and 'final order' redundant. |
| Ram Prasad Sah v. Mt. Fulpati Kuer, AIR 1927 Pat 175 | Authority that an order refusing leave to appeal in forma pauperis is not a final order. | The Court relied on this and related authorities to hold that an order refusing leave to sue in forma pauperis does not constitute a final order disposing of the suit on the merits. |
| Mt. Sundar Bahu v. Mt. Mahadei, AIR 1925 Oudh 548 | Authority supporting that refusal of leave to sue in forma pauperis is not a final order. | Applied by the Court as part of the established principle that proceedings dismissing applications for leave in forma pauperis are not final orders for appeal purposes. |
| Aisha Bee Bee v. Noor Mohamed, AIR 1932 Rang 192 | Another authority stating that an order refusing leave to sue in forma pauperis is not final. | Used to reinforce the conclusion that the Division Bench's order (which arose out of proceedings for leave to sue in forma pauperis) could not be treated as a final order. |
Court's Reasoning and Analysis
The Court proceeded in a stepwise legal analysis focused on whether the Division Bench order of 13-5-1952 met the threshold of finality required by Article 133(1).
- The Court examined the language of Article 133(1), noting it uses the phrase "judgment, decree, or final order" in each of Clauses (a), (b) and (c). This construction, the Court held, requires that the decision sought to be appealed from must be final in the sense attaching to a decree or final order; thus the High Court must determine whether the impugned order is final before certifying leave.
- The Court considered authorities (Privy Council and Federal Court decisions) which articulate the test of finality as whether the order finally disposes of the rights of the parties and whether, after the order, the suit remains "live" with rights yet to be determined. Those authorities were applied to the facts at hand.
- The Court rejected the applicant's contention that "judgment" in Article 133 should be read so broadly as to include any decision terminating a proceeding; the Court found that reading untenable because it would render the words "decree" and "final order" superfluous. It cited observations in Hori Ram Singh and S. Kuppuswami Rao to show that "judgment" in comparable contexts implies finality.
- The Court then analyzed the content and effect of the 13-5-1952 order: the Division Bench had set aside the part of the District Judge's order that had granted time to make good the court-fee but explicitly declined to express any view on whether the suit could be treated as filed on the date court-fee or costs were later paid or deposited. Because the Division Bench left open that question and the District Judge could still decide whether the suit was deemed filed on a later payment date, the Court found that the 13-5-1952 order did not finally dispose of or bring to an end the litigation.
- The Court further observed that the proceedings were in relation to an application for permission to sue in forma pauperis, and reiterated established authorities holding that an order refusing leave in forma pauperis is not a final order. On that additional basis, the Court concluded the Division Bench order could not be treated as final for purposes of Article 133.
Holding and Implications
Core Ruling: The application for a certificate for leave to appeal under Article 133(1) is dismissed because the order of 13-5-1952 is not a final order within the meaning of Article 133(1), and therefore the applicants are not entitled to leave to appeal under that Article.
Consequences and immediate effect:
- The applicants (Ratanlal) are denied a certificate for leave to appeal to the Supreme Court under Article 133(1) from the order dated 13-5-1952.
- The Division Bench's order of 13-5-1952 remains operative: the part of the District Judge's order granting time to make good court-fee was set aside, but the Division Bench expressly left open whether the suit could be treated as filed upon later payment of court-fee or deposit of costs — that matter remains for the District Judge to decide.
- The Court awarded costs against the applicant: the application for leave to appeal is dismissed with costs.
- No broader or novel precedent was established by this decision; the Court applied existing principles on finality and the non-final character of orders refusing leave in forma pauperis to dispose of the application.
This summary is prepared strictly from the contents of the provided opinion and does not add or infer information beyond that text.
1. This is an application by Ratanlal for grant of a certificate for leave to appeal to the Supreme Court under Article 133(1)(a), (b) and (c) from the judgment of a Division Bench of this Court in Civil Revision No. 41 of 1951 to which one of us was a party, dated 13-5-1952.
2. A short history of the litigation leading up to the present application may be given. Ratanlal, the present applicant, and his brother Ranchhor Dass (now dead) obtained a monopoly to start a wool press from the former State of Bikaner, in 1928. As they had no capital, they took a loan from Kaluram Chauthmal. There was some dispute with respect to that loan, and an arbitration award was made in June, 1930. By that arbitration award Ratanlal had to pay Rs. 73,000/- to Kaluram Ghauthmal within a certain time. If the payment was made, the press was to become the property of Ratanlal and his brother. But if the payment was not made within the time allowed, Kaluram Chauthmal were to pay Rs. 10,000/- to Ratanlal and his brother and were to become the owners of the press. Ratanlal and his brother took Rs. 73,000/- from Bhairu Dan, and paid off Kaluram Chauthmal. They also took a further sum of Rs. 11,000/- from Bhairu Dan.
Later on, a dispute arose between Ratanlal and his brother on the one side, and Bhairu Dan on the other, as to the nature of the transaction between them. Bhairu Dan claimed that the press had been, sold to him for Rs. 84,000/-, while Ratanlal and his brother said that the transaction was only a mortgage. In any case, the Patta of the Press was granted by the former state of Bikaner to Bhairu Dan, and was notified in the Bikaner Gazette on 18-10-1930. Bhairu Dan also got possession of the entire building except two rooms which were retained by Ratanlal arid his brother. Bhairu Dan's case with respect to this was that Ratanlal and his brother were in his service and were allowed to retain the rooms as such. Eventually, Bhairu Dan got possession of these two rooms also in February, 1934.
Then on 5-2-1936 Ratanlal and his brother filed a petition in the Bikaner High Court for leave to sue in 'forma pauperis' and for recovery of possession of the press. The Bikaner High Court held that Ratanlal and his brother were paupers; but they also held that there was no cause of action, and the petition to sue in 'forma pauperis' was dismissed. Two months' time was allowed, however, to make good the court fee if they wanted to proceed with the suit. Ratanlal and his brother went in revision against this order. This revision was dismissed, and an appeal to the Judicial Committee of the former State of Bikaner was also dismissed in September, 1938. Then it is said that there was some Faryadi petition before His Highness the Maharaja of Bikaner. An order was passed on this petition on 31-3-1949, by which His Highness of Bikaner waived limitation, and allowed Ratanlal and his brother to bring a suit on or before 6-4-1949.
On 5-4-1949, Ratanlal filed a petition in the court of the District Judge of Bikaner praying that he be allowed to sue in 'forma pauperis', and the cause of action was based on the dispossession in February, 1934. This petition was disposed of by the District Judge in December, 1950. The District Judge held that in view of Order 33, Rule 15, C. P. C., no second petition for leave to sue in 'forma pauperis' lay. He, therefore, dismissed the petition; but by the same order he directed Ratanlal to make good the court-fee within two months in order that the suit be registered. The latter part of the order was brought in revision to this Court, and it was contended that the District Judge having held that' no second petition for leave to sue in 'forma pauperis' lay had no jurisdiction to grant time to make good the court-fee.
3. The case came up before a learned Single Judge of this Court, who referred the following question to a Division Bench:
"Whether while rejecting the application for permission to sue as a pauper under Order 33, Rule 15, C. P. C., the court is competent under Section 149, C. P. C. to treat the application as a plaint and allow the applicant to pay the requisite court-fee stamp."
This question was considered by a Bench of this Court to which one of us was a party. It was argued before this Court that the matter before the District Judge was not an application for permission to sue in 'forma pauperis', but an insufficiently stamped plaint, and he had power to order deficiency of court-fee being made good under Section 149.
It was held by this Court that the document, which was presented in the court, was not a plaint, tout an application for leave to sue in 'forma pauperis'. After a review of the authorities, we came to the conclusion that a second application under Order 33, Rule 15 does not lie at all, and as this was a second application, there was no jurisdiction in the District Judge to grant time while rejecting the application on the ground that it was not maintainable under Order 33, Rule 15. The Bench, therefore, set aside that part of the order of the District Judge granting time for making good the court-fee, but made it clear that no opinion was expressed on the question whether the court could treat the suit as having been filed on the date on which court-fee was paid or the costs were deposited.
4. The present application is for leave to appeal against the order of 13-5-1952. It has been opposed on behalf of the opposite parties and their main contention is that the order in question is not a final order, and therefore no leave can be granted under Article 133 at all. Article 133(1) reads as follows:
"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; or
(b) that the judgment, decree or final order involves directly or indirectly some claim or question respecting property of the like amount or value; or
(c) that the case is a fit one for appeal to the Supreme Court;
and, where the judgment, decree or final order appealed from affirms the decision of the court immediately below in any case other than a case referred to in Sub-clause (c), if the High Court further certifies that the appeal involves some substantial question of law."
The wording of Article 133 is in one material respect different from Section 109, Civil P. C. Clauses (a) and (b) of Section 109 provide for appeals from any decree or final order, while Clause (c) provides an appeal from any decree or order. But Article 133 uses the words 'judgment, decree, or final order' with respect to all the three Clauses (a), (b) and (c). Therefore, before leave is granted under any of the Clauses (a), (b) and (c) of Article 133, the Court has to see that the order from which leave to appeal is prayed for is final. The contention of the opposite parties before us is that the order of 13-5-1952, cannot be called a final order, and therefore no leave to appeal can be granted from such an order.
5. What is a final order has been considered in two decisions of the Privy Council. In--'Firm Ramchand Manjimal v. Firm Goverdhandas Vishandas Ratanchand', AIR 1920 PC 86 (A), it was held that
"the order is final it it finally disposes of the rights of the parties, and as orders refusing stay of suit do not finally dispose of those rights, but leave them to be determined by the courts in the ordinary way, they are not final orders."
In -- 'V.M. Abdul Rahman v. D. K. Cassim & Sons', AIR 1933 PC 58 (B), it was observed that
"the test of finality is whether the order finally disposes of the rights of the parties. Where the order does not finally dispose of those rights, but leaves them to be determined by the courts in the ordinary way, the order is not final. The finality must be 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)."
Their Lordships further pointed out that no hardship could result from this view as in a proper case it was always open to the appellate court to give a special certificate under Section 109(c). These observations, however, may not apply in the context of Article 133(1), for if leave is granted under Clause (a), (b) or (c), it can only be from a judgment, decree or final order.
6. It was urged on behalf of the applicant that an appeal lies to the Supreme Court from any judgment, and that there is a judgment of 13-5-1952, in this case. We are of opinion that this argument has no force because the word 'judgment' used here cannot be taken in its widest possible sense so as to include every order which terminates a proceeding pending in a High Court. The judgment must partake of the nature of finality attributed to a decree and a final order, when it is used in conjunction with the words 'decree', or 'final order'; otherwise the words 'decree' and 'final order' would become superfluous, as every decision on the High Court in any case or proceeding before it would, be a judgment whether or not it finally puts an end to the litigation between the parties.
In this connection reference may be made to the observations of Sulaiman J. in -- 'Dr. Hori Ram Singh v. Emperor', AIR 1939 FC 43 (C) at pp. 47-48. Further, in -- 'S. Kuppuswami Rao v. The King', AIR 1949 FC 1 (D), the Federal Court was of the view that the term 'judgment' in S. 205 of the Government of India Act, 1935, indicated a final decision of the matter in dispute before a court. When we are dealing with a civil revision or appeal to this Court, the judgment, according to the Civil P. C., is merely a statement given by the Judge of the grounds of the decree or order. In such a case we have to see whether there is a decree or a final order, the judgment containing merely reasons for the decree or order which, follows upon it. It is only in cases of extraordinary civil jurisdiction of this Court, for example under Article 226, that an appeal will lie from the judgment of this Court finally deciding the dispute on the merits.
But in case of civil revisions and civil appeals, it is the decree or the final order which is open to appeal to the Supreme Court, and not the judgment which merely sets out the reasons in support of it. We may also in this connection refer to the words of Article 136(1) which gives power to the Supreme Court to grant special leave to appeal. This special leave can be granted from any judgment, decree, determination, sentence or order in any cause or matter passed or made by any court or tribunal in the territory of India. The language of this article is obviously very wide and gives power to the Supreme Court to grant special leave from any order; but the same cannot be said about the language of Article 133(1), and the High Court, in our opinion, has to see in case of civil revisions whether the order from which leave to appeal is prayed for is a final order or not.
7. We have, therefore, to see whether the order in this case is a final order or not. The order of 13-5-1952, merely sets aside a part of the order of the District Judge, by which he gave time to the present applicant to make good the court-fee. But it was made quite clear that no opinion was being expressed on the question whether the court-fee having been paid and costs having been deposited, the court could treat the suit as having been filed on the date on which the court-fee was paid or the costs were deposited. The order of 13-5-1952, therefore, did not, in our opinion, finally dispose of, or bring to an end, the litigation which was pending before the District Judge. It was left open to the District Judge to decide whether the suit could be treated as having been filed on the date on which the court-fee was paid or the costs were deposited.
In this view of the matter, we are of opinion that the order of 13-5-1952, is not a final order, and therefore the applicants are not entitled to leave under Article 133(1). Further the order of 13-5-1952, was passed in proceedings relating to an application for permission to sue in forma pauperis. It is well settled that an order refusing leave to appeal in forma pauperis is not a final order, see -- Ram Prasad Sah v. Mt. Fulpati Kuer', AIR 1927 Pat 175 (E); -- 'Mt. Sundar Bahu v. Mt. Mahadei', AIR 1925 Oudh 548 (F); -- 'Aisha Bee Bee v. Noor Mohamed', AIR 1932 Rang 192(1) (G). On the same principle, an order in proceedings for leave to sue in forma pauperis, which merely puts an end to the application for permission, to sue in forma pauperis, cannot be treated as a final order disposing of the suit on the merits.
For this reason also, therefore, we must dismiss the application.
8. The application for leave to appeal is hereby dismissed with costs.
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