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Case Number
Disposition
Attorney(S)
Judges
Acts
  • Article 133(1)(b) of the Constitution
  • Article 133 of the Constitution
  • The Code
  • Article 136 of the Constitution
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Cites
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Citation Codes
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Article 133(1)(b) of the Constitution
  • Article 133 of the Constitution
  • The Code
  • Article 136 of the Constitution
Smart Summary

Factual and Procedural Background

The petitioner filed a suit on 2 July 1951 before the Subordinate Judge, First Class, Ajmer, seeking (i) a money decree for Rs 10,665 on account of four dishonoured cheques issued by the respondents, and (ii) rendition of accounts for any further balance arising out of the sale of 104 bales of cotton that the respondents, acting as the petitioner's agents, had sold on 14 May 1948 for Rs 27,267/13/6.

The trial court decreed the suit, ordered an accounting of the entire cotton transaction, and appointed a Commissioner. On appeal, the High Court of Rajasthan reversed the decree and dismissed the suit, holding that the claim arose out of dealings of an unregistered partnership consisting of the petitioner and one Duli Chand, thereby attracting the statutory bar against suits by unregistered firms. The High Court also refused to certify the case for further appeal under Article 133 of the Constitution.

The petitioner then moved the Supreme Court under Article 136, seeking special leave to appeal, contending that the High Court had wrongly declined a certificate and that the matter warranted the Court’s intervention.

Legal Issues Presented

  1. Whether the judgment of the High Court “involves a claim or question respecting property” valued at not less than Rs 20,000 so as to require the High Court to grant a certificate of fitness under Article 133(1)(b) of the Constitution.
  2. Whether, irrespective of Article 133, the case is otherwise fit for the grant of special leave to appeal under Article 136.

Arguments of the Parties

Petitioner’s Arguments

  • The High Court erred in refusing a certificate under Article 133(1)(b) because its judgment involved a question about rights in respect of 104 bales of cotton sold for over Rs 27,000—well above the Rs 20,000 threshold.
  • Alternatively, once the Commissioner’s report (awarding the petitioner Rs 12,089/14/6 plus interest from 14 May 1948) is taken into account, the amount due exceeds Rs 20,000, satisfying Article 133(1)(b).
  • Even if Article 133 does not entitle the petitioner to a certificate, the importance of the issues makes the case fit for special leave under Article 136.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court’s Reasoning and Analysis

The Supreme Court first noted that Article 133(1)(a) was inapplicable because the amount claimed in the trial court was below Rs 20,000. Turning to Article 133(1)(b), the Court emphasised the textual distinction between clauses (a) and (b): clause (a) focuses on the monetary value of the subject-matter of the dispute, whereas clause (b) requires the judgment to involve a claim or question about property other than or in addition to that very subject-matter.

Applying this distinction, the Court held:

  • The 104 bales of cotton were not in dispute; their sale had already occurred and was admitted by both sides. The litigation concerned only the money allegedly due from the respondents as agents. Therefore, the judgment did not involve any claim respecting “property” separate from the monetary subject-matter.
  • The Commissioner’s finding that the petitioner might be entitled to more than Rs 20,000 with accrued interest still concerned the same monetary claim; it did not introduce any additional property of that value. Accordingly, clause (b) was not satisfied.
  • Because the constitutional threshold was unmet and the High Court’s decision rested purely on factual findings about the status of an unregistered firm, no question of general legal importance justified special leave under Article 136.

Holding and Implications

DISMISSED: The petition for special leave to appeal was dismissed with costs.

Implications: The petitioner cannot pursue an appeal to the Supreme Court, and the High Court’s dismissal of the underlying suit stands. The decision clarifies that Article 133(1)(b) applies only when the judgment involves a claim concerning property distinct from the monetary subject-matter of the litigation; it does not set a broader precedent beyond that interpretive point.

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    Chhitarmal v. Shah Pannalal Chandulal .

    Shah, J.— The petitioner applies for special leave to appeal under Article 136 of the Constitution, against the judgment of the High Court of Rajasthan dated December 16, 1963 in Civil First Appeal No. 54 of 1956 on two grounds:

    (1) that the judgment of the High Court involves a claim or question respecting property of not less than Rs 20,000 in value, and the High Court erred in refusing a certificate under Article 133(1)(b) of the Constitution; and
    (2) that the case is otherwise fit for appeal to the Supreme Court.

    2. The material facts bearing on the plea raised are these. The petitioner commenced on July 2, 1951 in the Court of the Subordinate Judge, First Class, Ajmer an action against the respondents claiming a decree for Rs 10,665 and for rendition of accounts in respect of the balance of sale proceeds of 104 bales of cotton purchased by him through the agency of the respondents. The petitioner claimed that 104 bales of cotton purchased by him were sold by the respondents as his agents on May 14, 1948 for Rs 27,267/13/6 and without settling the account the respondents delivered towards that amount a demand draft for Rs 11,000 which was encashed and four cheques of the aggregate value of Rs 13,000 which because of lack of arrangement with the respondents' bankers were not encashed, and the petitioner on that account was entitled to receive from the respondents Rs 10,665 being the amount due on the foot of dishonoured cheques and interest thereon at the rate of 6% per annum between July 2, 1947 to July 1, 1951, less Rs 4000 subsequently received by him. The petitioner also claimed a decree for the balance of the price, after giving credit for commission, dalali and godown charges incurred by the respondents as his agents and as he was not in a “position to know” the amounts due to or disbursed by the respondents, he claimed a decree for rendition of account. The subject-matter of the suit was therefore, a claim for Rs 10,665 due to the petitioner on a cause of action arising on cheques dishonoured, and a claim for the balance of the price due as may be ascertained on taking accounts.

    3. The trial court passed a decree directing that account be taken for ascertaining the amount due in respect of the entire transaction of 104 bales and for taking accounts appointed a Commissioner. The High Court of Rajasthan reversed the decree passed by the trial court and dismissed the suit, holding that the transactions in respect of which the claim was made by the petitioner were those of an unregistered firm constituted by the petitioner and another person named Duli Chand and the suit was barred because the firm was not registered. An application filed by the petitioner for certificate under Article 133 of the Constitution was rejected by the High Court.

    4. The judgment of the High Court proceeds entirely upon appreciation of evidence and on the findings recorded the petitioner's suit must stand dismissed. But counsel for the petitioner urged that the judgment of the High Court directly involves a claim or question respecting property of value not less than Rs 20,000 and he was entitled as a matter of right to a certificate from the High Court under Article 133(1)(b) of the Constitution. This argument is sought to be presented in two ways. It is urged in the first instance that the judgment of the High Court involves a question relating to the right of the petitioner respecting 104 bales of cotton belonging to him and sold by the respondents for an amount exceeding Rs 27,000. Secondly, it is urged that pursuant to the order of the trial court a Commissioner was appointed and the Commissioner reported that Rs 12,089/14/6 with interest at the rate of 6% per annum from May 14, 1948 were due to the petitioner and as the amount due to the petitioner on that footing was not less than Rs 20,000 at the date of the decree of the High Court, the judgment of the High Court involved a claim respecting property of that amount or value. In our view the contention raised by the petitioner under either head has no substance.

    5. It is conceded, and in our judgment counsel is right in so conceding, that the petitioner could not seek a certificate under clause (a) of Article 133(1). The claim in the court of first instance did not reach Rs 20,000 and one of the conditions for a certificate under that clause being absent, the claim could not be maintained. To attract the application of Article 133(1)(b) it is essential that there must be — omitting from consideration other conditions not material — a judgment involving directly or indirectly some claim or question respecting property of an amount or value not less that Rs 20,000. The variation in the language used in clauses (a) and (b) of Article 133 pointedly highlights the conditions which attract the application of the two clauses. Under clause (a) what is decisive is the amount or value of the subject-matter in the court of first instance and “still in dispute” in appeal to the Supreme Court: under clause (b) it is the amount or value of the property respecting which a claim or question is involved in the judgment sought to be appealed from. The expression “property” is not defined in the Code, but having regard to the use of the expression “amount” it would apparently include money. But the property respecting which the claim or question arises must be property in addition to or other than the subject-matter of the dispute. If in a proposed appeal there is no claim or question raised respecting property other than the subject-matter, clause (a) will apply: if there is involved in the appeal a claim or question respecting property of an amount or value not less than Rs 20,000 in addition to or other than the subject-matter of the dispute clause (b) will apply.

    6. In the present case the subject-matter in dispute was a claim for money. A part of that claim was definite and the rest was to be ascertained on taking accounts. The judgment did not involve any claim or question relating to property in addition to or other than the subject-matter in dispute of the value of Rs 20,000. It was admitted by the petitioner in his plaint that the bales of cotton were sold by the respondents as his agents. The right of the respondents to sell the bales was not in dispute. What was challenged was the right of the respondents to retain the price received by them. It cannot be said that a judgment dealing with a claim to money alleged to be due from an agent for price of property belonging to the principal sold by the agent either directly or indirectly involves a claim or question respecting property which is sold.

    7. Nor does the alternative ground assist the petitioner. It is true that by his petition the petitioner claims restoration of the decree of the trial court, and by adding interest at the rate of 6% per annum to the petitioner's claim as awarded under the report of the Commissioner, the claim of the petitioner on appeal exceeds Rs 20,000. But this is still the subject-matter in dispute: the judgment does not involve any claim or question respecting property in addition to or other than the subject-matter of the suit.

    8. The petition therefore fails and is dismissed with costs.

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    Comments

    Chhitarmal v. Shah Pannalal Chandulal .
    (Jan 14, 1965)