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Abdul Rahman Syed Lal v. Aminabi

Bombay High Court
Dec 4, 1942
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Judgment Summary — Beaumont, C.J. (O. XXXIII, r. 15)

Factual and Procedural Background

The opinion arises from an appeal against a decision of the First Class Subordinate Judge of Ahmednagar. A pauper application by the plaintiff was dismissed on August 7, 1937, and the Court ordered payment of the costs of the opponent and the Government Pleader; those costs were taxed. On August 14, 1937, the plaintiff instituted an ordinary suit after payment of Court-fees, but the costs ordered by the August 7 order had not then been paid. A written statement was filed on February 5, 1938, without objection that the suit did not lie for non-payment of those costs. Issues were framed on October 13, 1938. Evidence was recorded in June and July 1939. On August 8, 1939, an objection was taken that the pauper costs had not previously been paid; those costs were then paid after evidence had been completed. The Court heard a preliminary point under Order XXXIII, rule 15 (r. 15) about whether the suit could be instituted without prior payment of the pauper costs, and subsequently proceeded to hear the appeal on merits (the merits are not reported in this opinion). The decree below was varied.

Legal Issues Presented

  1. Whether Order XXXIII, rule 15 makes payment of costs ordered on refusal of a pauper application a condition precedent to the institution of an ordinary suit (i.e., a pre‑jurisdictional requirement).
  2. If such payment is a condition precedent, whether that condition is capable of being waived by the defendant (or by conduct), or is so jurisdictional that it cannot be waived.

Arguments of the Parties

Appellants' Arguments

  • Mr. Shah, for the appellants, took a preliminary point under O. XXXIII, r. 15 that, in view of that rule, the suit did not lie because the costs directed to be paid on the dismissed pauper application had not been paid before institution of the suit.
  • The specific contention advanced (as articulated in the opinion) was that payment of those costs is a condition precedent going to jurisdiction and therefore cannot be waived.

Respondent's / Defendant's Position (as appears in the record)

  • No objection was made in the written statement filed on February 5, 1938, that the suit did not lie for non-payment of the pauper costs, which the Court treated as conduct amounting to waiver of the condition (if any).
  • The trial record shows that when objection was ultimately taken on August 8, 1939, the ordered costs were paid (after evidence had been recorded), and the Court considered that such payment had been waived prior to payment by the defendant's earlier conduct.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Devidutt v. Shiriram Articulation of the general test: whether a precondition is procedural (waivable) or goes to jurisdiction (not waivable). Beaumont, C.J. quoted and relied on this principle as the general guide for deciding whether r. 15 imposes a condition precedent to jurisdiction.
Shiam Sundar Lal v. Savitri Kunwar (Allahabad Full Bench) Interpreted "costs incurred" in r. 15 to mean "costs allowed by the Court"; held that if costs have not been allowed by the Court the prohibition does not apply; obiter: if costs are ordered, they must be paid as a condition precedent. Discussed at length. Beaumont agreed with the Allahabad Court's interpretation that "costs incurred" could mean "costs allowed", but criticized that reading for not giving the full natural meaning to "costs incurred". He recorded the Allahabad Full Bench's obiter view but did not accept the absolute proposition that costs ordered are necessarily a condition precedent to jurisdiction.
Bir Ram v. Lachhmi Rai (Allahabad single Judge) Held "costs incurred" meant "costs actually taxed and allowed by the Court" and that mere dismissal with costs did not activate r. 15 prohibition. Noted as following the same interpretative approach as the earlier Allahabad Full Bench decision.
Ramnabai v. Shripad Held that O. XXXIII, r. 15 imposes a condition precedent; suit must be dismissed if the costs had not been paid before institution. Referred to as a previous view of this Court (Divatia, J.) that supported the condition‑precedent theory; Beaumont distinguished and criticized that view in favour of a contrary conclusion.
Umabai Shankar v. Shankar Hari Held that the direction for payment of costs in r. 15 can be waived by the defendant. Beaumont acknowledged this Court's subsequent decision and, despite reservations about some of its reasoning, agreed with its conclusion that payment is not a condition precedent and may be waived.
Ledgard v. Bull English case used to support that certain formal mistakes are procedural and therefore waivable. Mentioned as one of the authorities relied on in Umabai Shankar; Beaumont noted it was a case about procedure and that its reasoning was of limited applicability to the present rule.
Ghandulal v. Awad bin Umar Sultan Held that a condition precedent to suing a Ruling Prince was waived. Referred to as an authority relied on by Mr. Justice Broomfield in Umabai Shankar; Beaumont regarded it as of doubtful authority in view of a later Privy Council decision.
Gaekwar Baroda State Railway v. Hafiz Habib-Ul-Haq (Privy Council) Later Privy Council decision which, according to the opinion, affected the authority of Ghandulal. Cited to show why Ghandulal's authority is dubious; used by Beaumont to cast doubt on some authorities relied upon in Umabai Shankar.
Moore v. Gamgee (English cases) Considered in relation to whether leave-to-sue requirements constitute jurisdictional bars or mere procedural matters. Referred to as a case used by Mr. Justice Broomfield; Beaumont observed that the decision has been subsequently explained in a manner that undermines the simple procedural waiver reading.
King v. Secretary of State for India Indian case relied upon in Umabai Shankar; later criticized in Devidutt v. Shiriram as wrongly decided. Noted as an authority that was treated as wrongly decided by Devidutt v. Shiriram and hence of doubtful weight for supporting waiver as a general principle.
Ramakrishna v. Vandaya Thevar (Madras High Court) Held that if costs are paid after institution the suit can be treated as having been instituted on the date the costs were paid. Beaumont summarized this Madras approach and rejected it on practical grounds (problems when evidence has already been given before payment).

Court's Reasoning and Analysis

The Court began by recalling the general test from Devidutt v. Shiriram: when a condition must be performed before a Court can entertain a suit, one must decide whether the condition is procedural (waivable) or goes to jurisdiction (non‑waivable). Beaumont examined the precise wording of O. XXXIII, r. 15, noting its two‑part structure: first, refusal of leave to sue as a pauper is a bar to any subsequent similar application; second, the rule states that the applicant shall be at liberty to institute an ordinary suit "provided that he first pays the costs (if any) incurred by the Government and by the opposite party in opposing his application".

Beaumont analysed competing constructions of "costs incurred" and the words "first pays". He surveyed authorities: the Allahabad Full Bench in Shiam Sundar Lal interpreted "costs incurred" as meaning "costs allowed by the Court" and held that if no costs have been allowed, r. 15's prohibition does not apply; that Court also opined (obiter) that if costs were ordered by the Court they must be paid as a condition precedent. Beaumont noted that in a later Allahabad case (Bir Ram) a similar view was taken.

He reviewed this Court's prior conflicting decisions: Ramnabai v. Shripad adopted the view that r. 15 creates a condition precedent to institution (so suit must be dismissed if costs unpaid), while Umabai Shankar v. Shankar Hari concluded that the direction for payment can be waived. Beaumont critically examined the reasoning of Umabai Shankar (noting reliance on authorities of doubtful applicability) but ultimately agreed with its conclusion.

Beaumont gave three primary reasons for holding that payment of pauper costs ordered under r. 15 is not a jurisdictional condition precedent:

  • Textual contrast: the first part of the rule (refusal is a bar to subsequent pauper applications) is direct and specific, whereas the later provision does not expressly say that non‑payment of those costs bars the institution of an ordinary suit.
  • Literal construction difficulties: reading the provision literally would impose on the plaintiff liability to pay costs to which he may not be legally obliged (i.e., the plaintiff might be obligated to pay costs which are not finally determined to be payable by him).
  • Practical problems and involvement of third parties: "costs incurred" (if read literally) requires action by persons other than the plaintiff (opponent and Government) to tax and demand costs; making such a requisite a precondition would enable third parties' delays to bar a plaintiff's suit by operation of limitation, which is problematic.

On this basis Beaumont concluded the payment requirement is not a pre‑jurisdictional condition. Nevertheless, he made clear that the costs must be paid; if they are not paid and the matter is brought to the Court's attention and payment is not waived, the Court should either reject the plaint on presentation or stay the suit pending payment. He expressly rejected a mechanical rule obliging dismissal of the suit where costs were unpaid.

Beaumont also considered and rejected the Madras High Court's approach (Ramakrishna v. Vandaya Thevar) that treats a suit as having been instituted on the date on which the pauper costs are later paid. He explained practical problems with that approach: for example, witnesses who gave evidence before payment might die, or opportunities for cross‑examination might be lost, making it impractical to treat the suit as if it had been instituted after the evidence stage. For these reasons he declined to adopt the Madras solution.

Applying the above to the present facts, Beaumont found that the defendant's earlier conduct — filing a written statement without objection and not raising the point until after evidence — amounted to waiver of the payment requirement in this case; accordingly, the payment made after evidence was accepted as waived before suit and the Court proceeded to hear the appeal on its merits.

Holding and Implications

Holding: The Court held that payment of costs ordered on a dismissed pauper application under Order XXXIII, rule 15 is not a condition precedent to the institution of an ordinary suit and such payment can be waived; in the present case the payment was treated as waived. The decree below was varied.

Implications and immediate consequences:

  • The direct effect on the parties in this case was that the late payment of the pauper costs was treated as having been waived by the defendant's prior conduct (no early objection), permitting the suit to proceed to merits rather than being dismissed for want of jurisdiction.
  • The Court emphasised that although the payment requirement is not jurisdictional, the costs must nonetheless be paid; a party who timely objects may require payment and the Court should reject the plaint on presentation or stay proceedings pending payment if non‑payment persists and is not waived.
  • The Court declined to accept the Madras High Court solution of re‑dating institution to the date of subsequent payment where payment is made after institution, citing practical difficulties in applying that doctrine.
  • No assertion was made in the reported portion of the opinion that this decision established a sweeping new rule beyond the points stated; the holding resolves the immediate procedural question in favour of waiverability and directs how courts should treat unpaid pauper costs when raised during proceedings.
Decree varied.

Reported bench notation: J.G.R.

Show all summary ...

Beaumont, C.J:—

In this appeal from a decision of the First Class Subordinate Judge of Ahmednagar a preliminary point is taken by Mr. Shah for the appellants that, having regard to the terms of O. XXXIII, r. 15, the suit does not lie.

Rule 15 deals with the position arising when an application to sue as a pauper has been refused and subsequently a suit is filed on payment of Court-fees. The rule is in these terms:—

“An order refusing to allow the applicant to sue as a pauper shall be a bar to any subsequent application of the like nature by him in respect of the same right to sue; but the applicant shall be at liberty to institute a suit in the ordinary manner in respect of such right, provided that he first pays the costs (if any) incurred by the Government and by the opposite party in opposing his application for leave to sue as a pauper”.

The material dates are that the pauper application was Audio, dismissed on August 7, 1937, and an order was made for payment of the costs of the opponent and the Government Pleader, which were duly taxed; on August 14, 1937, this suit was filed on payment of Court-fees, but the costs directed to be paid by the order of August 7, had not been paid; on February 5, 1938, written statement was filed and no objection was raised that the suit did not lie because these costs had not been paid; issues were framed on October 13, 1938, and evidence was recorded in June and July, 1939; and on August 8, 1939, an objection being taken that the costs ordered to be paid on the pauper application had not been paid, they were paid, that is to say, they were paid after all the evidence had been recorded. I feel no doubt whatever that if it was competent for the defendant to waive payment of these costs as a condition of suing, such payment was waived. But the argument is that the payment of costs of the pauper application is made a condition precedent to the institution of an ordinary suit, and, being a condition precedent which goes to jurisdiction, it is incapable of waiver.

The general principle applicable was stated by me, accurately I hope, in Devidutt v. Shiriram, when I was considering whether the provisions of cl. 12 of the Letters Patent, which require leave to be obtained for filing a suit in which the cause of action in part arises outside the Original Side jurisdiction, constitute a condition precedent. I stated the principle in these terms (p. 238):

“In cases in which some condition has to be performed before the Court can entertain a suit, the question always arises whether the condition, is a matter of procedure only, so that failure to perform it may be regarded as an irregularity which may be excused or waived; or whether the condition is one going to the root of the Court's jurisdiction in which case the performance of the condition cannot be waived since it is not competent to parties by conduct or contract to enlarge the jurisdiction of the Court.”

It is to be noticed that r. 15 is curiously expressed. It starts by providing that refusal to allow a pauper application is a bar to any subsequent similar application. That is a specific provision. If the rule had stopped there, there was nothing to prevent the plaintiff suing in the ordinary manner on payment of Court-fees, and no permission to institute such a suit would seem to be necessary. But the rule then goes on to give such permission.

“The applicant shall be at liberty to institute a suit in the ordinary manner in respect of such right, provided that he first pays the costs (if any) incurred by the Government and of the opposite party.”

The suggestion is that we must construe that provision as imposing, an implied prohibition against instituting a suit unless the costs incurred by the Government and by the opposite party are paid before the institution of the suit, and that the payment of the costs is a condition precedent to the institution of the suit.

The rule has been discussed in many cases, and it was discussed very recently by a full bench of the Allahabad High Court in Shiam Sundar Lal v. Savitri Kunwar, where a pauper application had been dismissed, but no order had been made for payment of the costs of the opponent or of Government. The Court held that the expression “costs incurred” in r. 15 did not mean what it said, but meant “costs allowed by the Court”, which obviously may be something very different from the costs incurred, and the Court held, therefore, that unless costs have been allowed by the Court, the prohibition under r. 15 has no application. The Court then expressed the opinion (obiter) that if costs were ordered to be paid by the Court, then they must be paid as a condition precedent to the institution of the suit. The judgment says that any other construction involves the omitting of the word “first”, and that it is trite law that every word of a statutory enactment must be given its full meaning and effect. With all respect to the Court, having applied that principle to the construction of the words “first pays”, they ignore it in construing the words “costs incurred”. I do not say that the interpretation put by the Allahabad High Court on those words is wrong, indeed I think it right, but it certainly does not give the full and natural meaning to the words “costs incurred”. In a later Allahabad case, Bir Ram v. Lachhmi Rai, a single Judge of the Allahabad High Court, who had been a party to the previous decision, held that “costs incurred” meant “costs actually taxed and allowed by the Court”, and that the mere dismissal of the pauper application with costs did not bring the prohibition of r. 15 into operation.

The matter has twice come before this Court. In Ramnabai v. Shripad Mr. Justice Divatia in a second appeal took the view that O. XXXIII, r. 15, imposes a condition precedent to the institution of the suit, and that as the costs had not been paid before the institution of the suit, the trial Judge had no option, but to dismiss the suit. In a later case a Bench of this Court in Umabai Shankar v. Shankar Hari held that the direction for payment of costs in r. 15 can be waived by the defendant. The leading judgment was given by Mr. Justice Broomfield, and I must confess that some of his reasoning does not altogether appeal to me. He distinguishes Ramnabai v. Shripad (supra) on the ground that no question of waiver arose in that case; but on Mr. Justice Divatia's view that the payment of the costs was a condition precedent to the Court entertaining the suit, there could be no waiver. Moreover, Mr. Justice Broomfield relied on some cases of doubtful authority. He relied on Ledgard v. Bull, in which a suit had to be instituted in the District Court. It was in fact instituted in a Subordinate Court, but had been transferred to the District Court. It was held that was a mere error of procedure; the suit was heard in the right Court, and the only question was whether it had got there by the right road. That was clearly procedure. Then Mr. Justice Broomfield relied on Ghandulal v. Awad bin Umar Sultan in which a condition precedent to suing a Ruling Prince was held to have been waived. That case is of very dubious authority in view of the later decision of the Privy Council in Gaekwar Baroda State Railway v. Hafiz Habib-Ul-Haq. Then Mr. Justice Broomfield relied strongly on an English case Moore v. Gamgee, which was a case in which the jurisdiction of an English County Court to entertain a suit in which the defendant did not live within the district depended on obtaining the leave of the Court, and a divisional Court held that was a mere matter of procedure. On that basis the decision is right, but, as pointed out by this Court in Devidatt v. Shriram (supra), that case has been explained in the English Court of Appeal on the ground that what was said to be waived was a mere matter of procedure, but the actual decision of the Court of Appeal proceeded on a view inconsistent with the ground on which Moore v. Gamgee was decided. Mr. Justice Broomfield further relied on the Indian case, King v. Secretary of State for India which this Court held in Devidatt v. Shriram (supra) to have been wrongly decided, and a decision of this Court which followed that case was over-ruled. Unfortunately Devidatt v. Shriram (supra) was not brought to the notice of the Court in Umabai Shankar v. Shankar Hari.

However, although, I think, there are those criticisms to be made on Mr. Justice Broomfield's reasoning, I am disposed to agree with the conclusion at which the Court arrived on my opinion, under r. 15 payment of the costs of a pauper application directed to be paid is not made a condition, precedent to the jurisdiction of the Court to entertain an ordinary suit. I do not deny that at first sight the language suggests that is the effect of the rule; but I rely on three considerations which seem to me to show that is not its true effect. First, it will be noticed that there is a marked distinction in the language of the first part of the rule, and the later part. Dismissal of a pauper application is to be a bar to a similar application; but it is not provided in terms that non-payment of the pauper costs is to be a bar to an ordinary suit. Secondly, as already noticed, the latter part of the rule cannot be construed literally without imposing upon the plaintiff liability to pay costs which he may be under no obligation to pay. Thirdly, whatever meaning be placed on the word “cost incurred”, they involve action by persons other than the plaintiff. If they are construed literally, the plaintiff cannot pay the costs incurred until he knows what they amount to, and until they are demanded by the opponent and Government. If the words mean “costs allowed”, the opponent and the Government must bring in their costs of taxation. In any event something has to be done by somebody other than the plaintiff; it is not a question merely of the plaintiff taking some step, such as obtaining leave to sue. He has got to wait for third parties to move first, and it is obvious that by delaying action those third parties may cause the plaintiff's suit to be barred by limitation. In my opinion on these grounds it is legitimate to say that the payment of these costs is not a condition precedent to the institution of the suit. The costs, however, must be paid, and if they are not paid, and the matter is brought to the notice of the Court and the payment is not waived, the Court should reject the plaint on presentation, or subsequently stay the suit pending their payment, but I do not think that it is bound to dismiss the suit.

I may notice that the Madras High Court, has got out of the difficulty by a somewhat novel method. It was held in Ramakrishna v. Vandaya Thevar (which has been followed in a later case) that if the costs are paid after the suit is instituted, the suit can be treated as having been instituted on the date on which the costs are paid, and in that case the Court sent the suit back to the lower Court to decide it on the merits on the basis that it had been instituted on the date on which the costs had been paid. But I can see very serious practical difficulties which may arise in the application of any such doctrine. Supposing, as in this case, the costs are paid after all the evidence has been filed, it may well be that a witness who gave material evidence has died before the costs were paid, and he can hardly be deemed to have given evidence after his death. Or it may be that after the evidence was given, and before the costs were paid, material was discovered which would have enabled very effective cross-examination to be directed against some of the evidence, if given after the costs are paid. I am not see really how you can deal with a suit on the basis that it was instituted after the evidence was closed. I am not, therefore, prepared to accept the view of the Madras High Court, but I think the true view is that the payment of these costs is not a condition precedent, and can be waived, and that in this case the payment before suit was waived.

[The Court further proceeded to hear the appeal on merits which are not material for the purposes of this report.]

Decree varied.
J.G.R