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Smart Summary

Factual and Procedural Background

This Civil Revision Petition arises from an order made in a pending suit for damages before the Temporary Additional District Judge of Trivandrum. The plaintiff is a contractor residing at Trivandrum. Defendant 1 is a firm of military contractors in Ludhiana (Punjab) and defendant 2 is a commission agent residing and doing business at Amritsar (Punjab).

On 6-6-1955 defendant 2 applied to the lower Court for the issue of a commission to examine him and three witnesses at their respective places of residence (two witnesses at Ludhiana and one at Amritsar). The plaintiff opposed that application, but the lower Court allowed the application on 1-7-1955, rejecting the plaintiff's objection that the application was mala fide and holding that refusal would be oppressive to defendant 2 and his witnesses.

On 7-7-1955 the plaintiff moved the lower Court to require defendant 2 to deposit Rs. 300 to meet the plaintiff's expenses for proceeding to Amritsar and Ludhiana and for engaging local counsel to examine the witnesses. Purporting to act under Order 26, Rule 15 (O.26, R.15) of the Civil Procedure Code (CPC), the lower Court allowed this application and ordered defendant 2 to deposit Rs. 300.

Defendant 2 filed this Civil Revision Petition challenging the order that required him to deposit the said amount.

Legal Issues Presented

  1. Whether the lower Court had jurisdiction under Order 26, Rule 15 of the CPC to direct an applicant for a commission to deposit prospective expenses of the opposite party (i.e., costs of the opposite party's travel and local counsel) as a condition for issuing a commission.
  2. Whether the lower Court could alternatively sustain such an order under Section 151 of the CPC (the Court's inherent powers) or otherwise by invoking inherent jurisdiction to call for such a deposit.

Arguments of the Parties

Defendant 2 (Applicant in Revision) — Main Contentions

  • The lower Court had no jurisdiction under Order 26, Rule 15 of the CPC to direct the deposit of prospective expenses of the plaintiff (the opposite party).

Plaintiff / Respondent in the Revision — Main Contentions

  • The lower Court had jurisdiction to order the deposit under Order 26, Rule 15 of the CPC.
  • Alternatively, the Court relied on Section 151 of the CPC (inherent powers) as a basis for making such an order; respondent's counsel sought to maintain the order on that ground.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
In re Srinivasulu Naicker, AIR 1955 Mad 179 (A) Held that the expression "expenses of the commission" in O.26, R.15 is wide enough to include expenses of the opposite party (adopted by Ramaswami J.). The lower Court relied on this decision to justify ordering the deposit. The present Court discussed this decision among others and noted it represents a view adopted by some judges but not followed in subsequent authoritative rulings.
Tata Iron and Steel Co. v. Kader Ibrahim, AIR 1955 Mad 654 (B) Held that the expression "expenses of the commission" in O.26, R.15 does not include expenses of the opposite party; the Court further held that the Court has no inherent power to go outside the rule and impose conditions not warranted by statute. The present Court relied on and followed this decision: it concurred with Rajamannar C.J. and Rajagopala Ayyangar J.'s conclusion that O.26, R.15 is not wide enough to cover opposite party's expenses and that the Court cannot travel outside that Rule by inherent power in the circumstances of the present case.
Abdurahiman Settu v. Muhamad Kasam Settu, AIR 1949 Mad 490 (C) Mack J. (obiter) expressed the view that "expenses of the commission" can include expenses of the other parties and that in suitable cases the Court can order deposit of opposite party's expenses by the applicant. The present Court noted that Mack J.'s opinion was obiter and that later decisions have treated this view as not decisive; the Court declined to adopt this wide construction.
Saboora Bivi Ammal v. Julaika Bivi Ammal, AIR 1950 Mad 144 (D) Govinda Menon J. held that "expenses of the commission" in ordinary parlance refers only to what the Commissioner spends (i.e., fees and incidental expenses) and does not extend to expenses of the opposite party. This case was cited as authority supporting a narrow construction of "expenses of the commission." The present Court treated it as an authority contra to Mack J.'s obiter view.
Kanji Karsondas v. Nathubhai, AIR 1953 Bom 390 (E) Held that "expenses of the commission" do not include costs of opponent's pleader or the costs which the opponent may incur to go to the place of examination; denotes only fees paid to the Commissioner and directly incidental expenses. The Bombay decision was relied upon by the Madras Division Bench in Tata (B) and by the present Court as supporting the narrow construction of O.26, R.15.
Jiwibai v. Laxmichand Abashbhai, AIR 1955 Raj 32 (F) Adopted the narrow construction that O.26, R.15 does not cover opposite party's expenses but held that the Court can, under its inherent powers, ask for such a deposit in appropriate circumstances. The present Court noted this decision as reflecting a view that differs from Tata (B) on the availability of inherent powers; it cited the divergence in authorities when discussing whether inherent powers could sustain such an order.
Unreported decision of Balakrishna Iyer J. Concurred with the view of Govinda Menon J. (i.e., narrow construction of "expenses of the commission"). This unreported decision was mentioned among the authorities considered in Tata (B) and by the present Court when surveying the precedents.
Decisions of the High Courts of Calcutta, Patna and Bombay (various) Referenced as part of the body of authorities on the construction of O.26, R.15; collectively considered in Tata (B). The present Court noted these decisions as part of the jurisprudential context considered in Tata (B) and relied upon in reaching its conclusion that O.26, R.15 does not include opposite party's expenses.

Court's Reasoning and Analysis

The Court proceeded by examining the language of Order 26, Rule 15 (quoted in the opinion) and the conflicting authorities on its proper construction. The Rule as reproduced in the judgment states:

"Before issuing any commission under this Order, the Court may order such sum (if any) as it thinks reasonable for the expenses of the commission to be, within a time to be fixed, paid into Court by the party at whose instance or for whose benefit the commission is issued."

The analysis unfolded in the following steps, reflecting the material contained in the opinion:

  1. The Court recognized a conflict in earlier decisions of the Madras High Court and other High Courts. Mack J. (in AIR 1949 Mad 490) suggested (obiter) a wide construction that would include expenses of the opposite party; Govinda Menon J. (AIR 1950 Mad 144) took a narrow view limited to expenses of the Commissioner; Ramaswami J. (AIR 1955 Mad 179) again adopted the wider construction.
  2. The Court then referred to the Division Bench decision in Tata Iron and Steel Co. v. Kader Ibrahim (AIR 1955 Mad 654) where Rajamannar C.J. and Rajagopala Ayyangar J. had considered the prior rulings and concluded that "expenses of the commission" does not include the expenses of the opposite party and that the Court has no inherent power to travel outside O.26, R.15 to impose such conditions.
  3. The present Court agreed with the trend of the decisions adopting the narrow construction — namely, that "expenses of the commission" denote the Commissioner's fee and expenses directly incidental to the issue and execution of the commission, and do not extend to the travel or advocate's fees of the opposite party.
  4. Turning to the asserted alternative basis under Section 151 (inherent powers), the Court articulated the proper scope of inherent powers: they are to be invoked only where the Code does not provide and where necessary for the ends of justice or to prevent abuse of process.
  5. Applying those principles to the facts, the Court found that (a) the lower Court had already determined the application for the commission was not mala fide and that refusing it would be oppressive to defendant 2, and (b) the issuance of the commission was necessary for the ends of justice and not an abuse of process. Given these factual findings, there was no basis for invoking inherent powers to condition the issue of commission on a deposit for the plaintiff's expenses.
  6. Consequently, the Court held that the lower Court had no jurisdiction under O.26, R.15 to make the deposit order, and that the order could not be sustained under Section 151 on the facts of the present case. The Court expressly declined to decide whether, in some other circumstances, inherent powers could be used to require such a deposit.

Holding and Implications

Holding: Revision allowed; the impugned order requiring defendant 2 to deposit Rs. 300 was set aside.

Consequences and immediate effects:

  • The order of the lower Court directing deposit of Rs. 300 for meeting the plaintiff's expenses in connection with the commission was declared to have been passed without jurisdiction and is set aside.
  • The commission already ordered by the lower Court shall be issued without the condition requiring the deposit.
  • The parties will bear their costs in this Court (i.e., costs of the revision proceedings in the High Court).

Broader implications and limits of the decision:

  • The Court adopted and reinforced the view that, as a matter of construction, the phrase "expenses of the commission" in O.26, R.15 of the CPC is confined to the Commissioner's fee and expenses directly incidental to the issue and execution of the commission and does not include the costs or travel or local advocate fees of the opposite party.
  • The Court held that, on the facts of this case, Section 151 (inherent powers) could not be used to validate the deposit order; however, the Court expressly refrained from deciding whether in other, appropriate cases the inherent powers could be exercised to require a deposit for the opposite party's expenses — that question was left open.
  • No broader pronouncement was made that universally bars the use of inherent powers in all circumstances; the judgment emphasizes that such powers operate only where necessary for ends of justice or to prevent abuse of process, and where the Code's express provisions do not apply.

    Asanand Nanak Chand Aggarval v. C.A Ayyathurai .

    The Judgment of the Court was delivered by

    Kumara Pillai, J.:— This Civil Revision Petition arises out of an order in a suit for damages now pending before the Temporary Additional District Judge of Trivandrum. The plaintiff in that suit is a contractor residing at Trivandrum. Defendant 1 is a Firm of Military Contractors doing business at Ludhiana in Punjab and defendant 2 is a commission agent residing and doing business at Amritsar, also in Punjab.

    2. On 6-6-1955, defendant 2 applied to the lower Court to issue a commission to examine him and his three witnesses. Two of these witnesses are persons residing at Ludhiana in Punjab and the remaining witness is a person residing at Amritsar. Defendant 2 himself is residing at Amritsar as has been stated already. These witnesses and defendant 2 were to be examined at their places of residence. The plaintiff opposed the application, but the Court below allowed it on 1-7-1955 expressly overruling the plaintiff's objection that the application was a mala fide move to cause delay and inconvenience to him and holding that it would be oppressive to defendant 2 and his witnesses if the application is not allowed.

    3. Six days later on 7-7-1955 the plaintiff moved the lower Court to make defendant 2 deposit the necessary amount to meet his expenses for proceeding to Amritsar and Ludhiana and instructing counsel at those places to examine the witnesses. Such expenses were to include also the Advocate's fee for the counsel to be engaged in Punjab. Purporting to act under O. 26, R. 15 of the CPC, the lower Court allowed this application and ordered defendant 2 to deposit Rs. 300.

    4. The Civil Revision Petition is filed by defendant 2 against the order calling upon him to deposit the said amount.

    5. The contention urged here on his behalf is that the lower Court had no jurisdiction under O. 26, R. 15 to direct the prospective expenses of the plaintiff to be deposited. The plaintiff's counsel contended that the lower Court had the jurisdiction to pass this order not only under O. 26, R. 15, but also under Section 151 of the CPC. Whether the lower Court had the jurisdiction to pass the order under S. 151 or not, it is clear from the order itself that the lower Court has acted only under O. 26, R. 15. The relevant portion of the order reads:

    “The prayer is opposed. But it is seen from a recent decision of the Madras High Court that the expression ‘expenses of the commission’ used in O. 26, R. 15 is wide enough to include the expenses of the opposite party as well and in proper cases the Court has power to call upon the party demanding the commission to deposit any reasonable sum it deems fit towards expenses of the opposite party, — ‘In re Srinivasulu Naicker’, (S) AIR 1955 Madras 179 (A).”

    6. The decision relied upon by the learned Judge as well as all the prior rulings on the subject have been considered in a later case, — ‘The Tata Iron and Steel Co. v. Kader Ibrahim’, (S) AIR 1955 Mad 654 (B), by Rajamannar C.J, and Rajagopala Ayyangar, J.

    7. Before the decision in the ‘Tata Iron and Steel Co v. Kader Ibrahim (B)’, the Madras High Court had expressed conflicting opinions as to whether the Court had jurisdiction under O. 26, R. 15 of the CPC to call upon an applicant for the issue of a commission to deposit the prospective expenses of the opposite party in connection with his travel to and from the place of the examination of the witnesses and for engaging a new counsel at the place of examination.

    8. Order 26, R. 15 of the CPC provides:

    “Before issuing any commission under this Order, the Court may order such sum (if any) as it thinks reasonable for the expenses of the commission to be, within a time to be fixed, paid into Court by the party at whose instance or for whose benefit the commission is issued.”

    9. Mack J., expressed an opinion in — ‘Abdurahiman Settu v. Muhamad Kasam Settu’, AIR 1949 Mad 490 (C), that the words ‘expenses of the commission’ referred to in the above rule, can be made to include expenses of the other parties to the litigation and that in suitable cases the Court can order under this rule the expenses of the opposite party to be deposited by the party who applies for the issue of a commission.

    10. As pointed out in (S) AIR 1955 Mad 654 (B), the opinion of Mack J. in AIR 1949 Mad 490 (C), was only obiter. Govinda Menon J., has taken a different view in — ‘Saboora Bivi Ammal v. Julaika Bivi Ammal’, AIR 1950 Mad 144 (D), wherein the point came up directly for decision. After referring to the opinion of Mack J., in AIR 1949 Mad 490 (C), Govinda Menon J., has said in that case:

    “It seems to me that this proposition has been very widely stated. The phrase ‘expenses of the commission’ in ordinary parlance would mean only what the Commissioner has to spend for summoning witnesses and for other incidental expenses relating to the examination of the witnesses before him. No authority has been placed before me where the words have been construed in such wide terms.”

    11. In the case referred to in the order of the lower Court (S) AIR 1955 Mad 179 (A), Raniaswami J., differed from the view taken by Govinda Menon J., and adopted the opinion of Mack J. At page 182 of the report Ramaswami J., says:

    ‘It is quite true that even now the proverbial Law's delays troubles and expenses make it impossible for the poorer and weaker party to get justice and courts of law are open to all only in the sense that great hotels like Connemara are open to all. The endeavour of the State and the Courts has always been to minimise these inequities shutting out the courts of justice to aggrieved persons and there is no reason why we should add by an interpretation which does not flow from the plain language of O. 26, R. 15 of the CPC, to these inequities. It seems to me, therefore, that the expression ‘expenses of the commission’ can be construed to include the expenses of the other party to the litigation.”

    12. After referring to these cases and an unreported decision of Balakrisima Iyer J., in which that learned Judge concurred with the opinion of Govinda Menon J., and also to certain decisions of the High Courts of Calcutta, Patna and Bombay, Rajamannar C.J, and Rajagopala Ayyangar J., has said in (S) AIR 1955 Mad 654 (B):

    “Having considered the matter ourselves we respectfully concur in the opinion of the learned Judges of the Bombay High Court. We are, therefore, clearly of the opinion that the expression ‘expenses of the commission’ in O. 26, R. 15 of the CPC, does not include expenses of the opposite party and that the Court has no inherent power to travel outside O. 25, R. 15 of the CPC, and impose conditions not warranted by that or any other specific statutory provisions in that regard.”

    13. The Bombay case referred to by their Lordships is — ‘Kanji Karsondas v. Nathubhai’, AIR 1953 Bom 390 (E). That case also was decided by a Division Bench, and it was held therein:

    “The words ‘expenses of the commission’ in O. 26, R. 15 do not include costs of opponent's pleader or the cost which the opponent himself may have to incur to go to the place where the Commissioner is going to examine the witness. The expression denotes only the fees paid to the Commissioner and other expenses directly incidental to the issue and execution of the commission.”

    14. The same view has been taken by the Rajasthan High Court in — ‘Jiwibai v. Laxmichand Abashbhai’, AIR 1955 Raj 32 (F). But that High Court has also taken the view that though the expenses of the other party cannot be ordered to be deposited under O. 26, R. 15 of the CPC, the Court can ask for such a deposit under its inherent powers.

    15. Thus the trend of the decisions of all the High Courts is that the expression ‘expenses of the commission’ in O. 26, R. 15 of the CPC does not include the expenses of the opposite party and includes only the Commissioner's fee and the expenses incurred by the Commissioner in connection with the execution of the Commission. We are also of the same opinion and consider that the expression cannot be given the wide construction it has received at the hands of Mack, J.

    16. Consequently we hold that the lower Court had no jurisdiction under O. 26, R. 15 of the CPC to pass the order impugned in this Revision Petition.

    17. The respondent's counsel sought to maintain the order as one passed under the inherent powers of the Court. But the order itself purports to be one passed under O. 36, R. 15 and does not purport to be an order under S. 151. Whether the Court has got the power under S. 151 to call upon an applicant for the issue of a commission to deposit the prospective costs of the opposite party or not, we are of the opinion that it had no jurisdiction at all to pass the present order under that section.

    18. The inherent powers of the Court are invoked only in cases not covered by the express provisions of the Code and where the exercise of such powers is necessary for the ends of justice or to prevent the abuse of the process of Court. In the present case, the lower Court has found that the application for the issue of a commission was not actuated by any mala fide motive and that it would be oppressive to defendant 2 to refuse it.

    19. The issue of the commission was therefore absolutely necessary for the ends of justice, and cannot be said to be any abuse of the process of Court. In this case, there was thus no abuse of the process of the Court to be prevented and the ends of justice required that the right to ask for the issue of a commission should be allowed to be freely exercised rather than curtailed.

    20. The fact that the exercise of this lawful right which is so absolutely necessary for the ends of justice will cause some hardship to the plaintiff cannot be taken as constituting sufficient ground for the invocation of the inherent powers of the Court.

    21. We do not desire to express any opinion in this case as to whether in appropriate cases the Court can in exercise of its inherent powers call upon an applicant for the issue of a commission to deposit the expenses of the other party as a condition precedent for allowing the application.

    22. The views of the other High Courts on this question are not uniform. Some have taken the view that in exercise of its inherent powers the Court can call upon the applicant to make this deposit and some have taken the view that the deposit in this respect cannot be ordered to be made under Section 151 of the CPC.

    23. We, however, desire to point out that if the Court considers an application for the issue of a commission to have been made on account of any mala fide motive or for the purpose of harassing the opposite party and delaying the trial of the suit, it is open to the Court to refuse the application and that some of the hardships and difficulties pointed out by Ramaswami J., in (S) AIR 1955 Mad 179 (A), can thus be avoided. For the reasons stated above, we hold that the order of the lower Court calling upon defendant 2 to deposit Rs. 300 for meeting the plaintiff's expenses in connection with the commission is one passed without jurisdiction. We accordingly set it aside and direct that the commission already ordered shall be issued without any such condition. The parties will bear their costs in this Court.

    24. Revision allowed.

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    Asanand Nanak Chand Aggarval v. C.A Ayyathurai .
    (Mar 9, 1956)