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Kalloli Kunhikannan & Another v. Mannan Paithal & Another

Kerala High Court
Feb 26, 1990
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Concise Analytical Summary of the Opinion

Factual and Procedural Background

By S.R.O. No. 1631/89 (published in the Kerala Gazette on 26-9-1989) the Government of Kerala, exercising the power under clause (a) of sub-section (1) of Section 18 of The Kerala Buildings (Lease and Rent Control) Act, 1965 (the Rent Control Act), conferred on District Judges the powers of the Appellate Authorities for areas in which the Act was extended. The notification superseded earlier notifications on the subject.

Upon the notification coming into force, the High Court on the administrative side issued an Official Memorandum dated 8-9-1989 directing Sub-ordinate Judges, when the notification came into force, to send records of pending cases to the concerned District Judges after issuing notice to counsel/parties and under intimation to the High Court; the District Judges were to take up the cases and pass appropriate orders.

A dispute arose whether appeals that were pending before Sub-ordinate Judges at the time the notification came into force should be transferred to the District Judges. Counsel for the parties argued that the notification was not retrospective and therefore did not apply to pending appeals; accordingly the administrative direction to transfer pending appeals to District Judges was challenged as unsustainable.

The court considered these contentions and issued orders disposing C.R.P. 158/1990 (dismissed) and directing procedural treatment of C.R.P. 2550 of 1989 (to be returned to petitioner for presentation before the District Court within four weeks). The court also issued general directions regarding pending appeals filed before 26-9-1989 and transfers already effected under the Official Memorandum.

Legal Issues Presented

  1. Whether the notification S.R.O. No. 1631/89 (dated 26-9-1989) conferring appellate authority on District Judges under S.18(1) of the Rent Control Act applies retrospectively to appeals that were pending before Sub-ordinate Judges on the date the notification came into force.
  2. Whether the High Court administrative memorandum directing Sub-ordinate Judges to transfer pending appeals to District Judges is legally sustainable.

Arguments of the Parties

Counsel for the parties (general)

  • The notification is not retrospective in operation; therefore it should not apply to appeals that were pending before Sub-ordinate Judges when the notification came into force.
  • Consequently, the administrative direction that Sub-ordinate Judges transfer the pending appeals to District Judges is not sustainable in law.

Counsel for the petitioner (Adv. P.K. Balasubramanyan)

  • Cited a Division Bench ruling in Poulose v. Catholic Syrian Bank Ltd. (1988 (2) K.L.T 599) and suggested that it may be argued that no litigant has a vested right to have his appeal heard by a particular forum or by a particular number of judges.
  • The court treated the Division Bench observation as a casual or obiter remark not necessary to the decision in that case and therefore not binding for the present dispute.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Garikapati Veeraya v. N. Subbiah Choudhry & Others, A.I.R. 1957 S.C. 540 The right of appeal is a substantive, vested right; new enactments are presumed not to operate retrospectively and a vested right of appeal cannot be taken away except by express provision or necessary intendment. The court relied on this authority to support the general rule that appeals pending before Sub-ordinate Judges should continue before them unless the notification expressly or by necessary intendment interferes with that right.
Colonial Sugar Refining Company Ltd. v. Irving, (1905) AC 369 (Privy Council) Doctrine that depriving a suitor in a pending action of an appeal to a superior tribunal (including transferring it to a new tribunal) is an interference with existing rights and statutes should not be held retrospective unless clearly intended. Viewed as the foundational principle underpinning the non-retrospectivity rule applied by the court.
Mohd. Idris v. Sat Narain, A.I.R. 1966 S.C. 1499 Similar principle that pending proceedings continue under the law as existing when instituted unless the legislative intent to alter that is clear. Used to reinforce the conclusion that pending appeals should remain before the Sub-ordinate Judges absent an express provision to the contrary.
Shri Vijaya Lakshmi Rice Mills v. State of A.P., (1976) 3 SCC 37 (A.I.R. 1976 SC 1471) Authority cited in support of the non-retrospectivity principle and continuity of procedure for pending matters. Noted as another apex-court authority consistent with the court's analysis that pending proceedings are not to be interfered with by subsequent statutory changes unless clearly intended.
Amir v. Maniamma, 1979 K.L.T SN 59 Interpretation of Section 20 of the Rent Control Act: the District Court (on revision) is competent to take oral evidence or receive fresh documentary evidence and to remand matters. Relied upon to show that the District Court's powers of revision and remand remain available and are not curtailed by the notification; that feature supports an interpretation that pending appeals need not be transferred.
Joseph v. Malathy Amma, 1989 (2) K.L.T 953 Practice/authority relating to the procedure under the Rent Control Act and revisional powers. Noted as supportive precedent regarding revisional/remand powers; cited to show notification did not interfere with Section 20 powers.
Mathew v. Gilbert, 1990 (1) K.L.T 139 Practice/authority relating to procedure under the Rent Control Act (cited alongside other local precedents). Referred to as further supporting authorities concerning revision and remand under the Rent Control Act.
Poulose v. Catholic Syrian Bank Ltd., 1988 (2) K.L.T 599 Division Bench observation suggesting no vested right to have an appeal heard by a particular forum or number of judges (an observation in that decision). The court treated that observation as obiter (a casual expression) because the point did not arise for decision in that case; therefore it was not regarded as binding for the present matter.

Court's Reasoning and Analysis

The court began by stating the governing presumption that statutes are not to be given retrospective effect. It explained that the right of appeal is substantive — a vested right — and that the law applicable to an action is the law prevailing on the date of institution of the proceeding. A vested right of appeal can be taken away only by a subsequent enactment that does so expressly or by necessary intendment.

The court relied on established authorities (including the Privy Council decision in Colonial Sugar and the Supreme Court decisions cited) to frame this principle. Applying that principle, the court asked whether the notification S.R.O. 1631/89 either expressly or by necessary intendment interfered with the vested right of appeal of litigants whose appeals were pending before Sub-ordinate Judges when the notification came into force on 26-9-1989.

The court analyzed the language of the notification and concluded it did not take away the right of appeal vested in litigants. The court found significant that the notification created the District Judges' appellate power only from 26-9-1989 and that there was no express provision within the notification transferring pending appeals. That circumstance, in the court's view, indicated an intention that Section 4 of The Kerala Interpretation and General Clauses Act (governing application of enactments to pending matters) remain applicable to pending litigations.

The court further considered the statutory scheme under the Rent Control Act, notably Section 20, which empowers the District Court on revision to call records, receive oral and documentary evidence, and remand matters to the appellate authority. The availability of such revisional/remand powers to the District Court (confirmed by local authorities such as Amir v. Maniamma) meant that any procedural restructuring effected by the notification did not necessitate transferring pending appeals — the District Court could obtain and re-examine cases by way of revision and remand if required.

The court also addressed a contrary observation from a Division Bench in Poulose v. Catholic Syrian Bank Ltd., treating that observation as obiter and therefore not authoritative for the present issue.

On these bases the court concluded that the notification neither expressly nor by necessary intendment interfered with pending appeals. Therefore the administrative instruction to transfer the pending appeals to District Judges was unsustainable.

Holding and Implications

Holding:

  • C.R.P. 158/1990 is dismissed.
  • The notification S.R.O. No. 1631/89 does not, either expressly or by necessary intendment, interfere with appeals that were pending before Sub-ordinate Judges on 26-9-1989.
  • Accordingly, the administrative direction requiring Sub-ordinate Judges to transfer pending appeals to the District Judges is not sustainable in law.

Direct consequences and directions issued by the court:

  • Appeals filed before the date of the notification (i.e., before 26-9-1989) and pending before Sub-ordinate Judges shall be heard and disposed of by the Sub-ordinate Judges.
  • Appeals which have already been transmitted to the District Court pursuant to the Official Memorandum referenced in the order shall be retransmitted to the Sub-ordinate Judges.
  • C.R.P. 2550 of 1989 is directed to be returned to the petitioner for presentation before the District Court; the petitioner is given four weeks from the date on which the office returns the revision and connected files to present the revision before the District Court.

Implications beyond these direct effects: The court applied and followed established principles and authorities on non-retrospectivity and vested rights of appeal; the decision implements those principles to the facts at hand and does not purport to lay down a novel principle beyond the cited authorities.

Show all summary ...

1. The Government by notification, S.R.O 1631/89 issued under Section 18(1) of The Kerala Buildings (Lease and Rent Control) Act, 1965, for short The Rent Control Act has conferred on the District Judges having jurisdiction over the areas within which the provisions of the said Act have been extended, the powers of the appellate authorities for the purposes of The Rent Control Act, in the said areas. This notification is in supersession of all of previous notifications on the subject. I shall now read the notification:

“S.R.O No. 1631/89.— In exercise of the powers conferred by clause (a) of sub-section (1) of S. 18 of The Kerala Buildings (Lease and Rent Control) Act, 1965 (2 of 1965) and in supersession of all previous notifications on the subject, the Government of Kerala hereby confer on the District Judges having jurisdiction over the areas within which the provisions of the said Act have been extended, the powers of the Appellate Authorities for the purposes of the said Act, in the said areas”.

2. This notification was published in the Kerala Gazette on 26th September, 1989. As per this notification, on and from 26-9-1989, the District Judges will be the appellate authorities within the meaning of S. 18(1) of The Rent Control Act.

3. On the coming into force of the notification there arose a question as to whether the appeals pending before the sub-ordinate Judges on whom the Government by the previous notification had conferred the power of the appellate authority within the meaning of S. 18(1), should be made over to the District Judges. The High Court on the administrative side issued an Official Memorandum No. D1-46682/86 dt. 8-9-1989, the relevant portion there from reads thus:—

“When the notification comes into force, the Sub-ordinate Judges will send the records of the pending cases to the concerned District Judges after issuing notice to the counsel/parties requesting them to appear before the transferee court on the dates specified therein; under intimation to the High Court……… The District Judges will take up the cases on the notified, dates and, pass appropriate orders”.

4. The learned counsel representing the parties submit that inasmuch as the notification is not retrospective in operation, the notification will not apply to the appeals pending on the coming into force of the notification before the Sub-ordinate Judges and if that be so the direction given by the High Court on the administrative side that the Sub-ordinate Judges shall transfer all the pending appeals to the District Judges is not sustainable.

5. Before I consider the above argument of the learned counsel I shall endeavour to recapitulate the law on the subject. It is axiomatic that every new enactment could affect future and not the past-Nova constitution futuris forman imponere debet non proeteritis. In other words the presumption is not to give retrospective effect to a statute. The right of appeal is more than a matter of procedure; on the other hand, it is a substantive right. The legal pursuit of a remedy, suit, appeal and second appeal are really but steps in a series of proceedings all connected by an intrinsic unity and are to be regarded as one legal proceeding. The institution of the suit carries with it the implication that the right of appeal then in force is preserved to the parties thereto till the rest of the career of the suit. The right of appeal being a vested right, the said right to enter the superior court exists as on and from the date of the commencement of the action and although the said right may actually be exercised only when the adverse judgment is pronounced, the said right is to be governed by the law prevailing at the date of the institution of the proceeding and not by the law that prevails at the date of its decision or at the date of the filing of the appeal. This vested right of appeal can be taken away only by a subsequent enactment provided it so provides expressly or by necessary intendment and not otherwise. (See the decision of the Supreme Court in Garikapati Veeraya v. N. Subbiah Choudhry & Others, A.I.R 1957 S.C 540). The above principles have as their basis the ruling of the Privy Council in Colonial Sugar Refining Company Ltd. Irving (1905 AC 369). The Privy Council there has observed thus regarding the right of a suitor in a pending action of an appeal to a superior tribunal:—

“………To deprive a suitor in a pending action of an appeal to a superior tribunal which belonged to him as of right is a very different thing from regulating procedure. In principle, their Lordships see no difference between abolishing an appeal altogether and transferring the appeal to a new tribunal. In either case there is an interference with existing rights contrary to the well-known general principle that statutes are not to be held ??? retrospectively unless a clear intention to that effect is ???

6. This dictum of the Privy Council has been noted ??? the Supreme Court in Garikapati's case. This principle ??? be said to be the one reflected in section 4 of The Kerala ??? and General Clauses Act.

7. The Supreme Court considering an identical, question has observed thus in Mohd. Idris v. Sat Narain (A.I.R 1966 S.C 1499):—

“The question is whether a different intention appears in either the Abolition Act or the amending Act XVI of 1953, for otherwise the old proceeding could continue before the Munsiff. There is nothing in the Abolition Act which takes away the right suit in respect of a pending action. If there be any doubt, it is removed when we consider that the U.P Agriculturists Relief Act was repealed retrospectively from July 1, 1952 only and it is not, therefore, possible to give the repeal further retrospectivity so as to affect a suit pending from before that date The jurisdiction, of the Assistant Collector was itself created from July, 1, 1952 and there is no, provision in the Abolition Act, that pending cases were to stand transferred to the Assistant Collector for disposal. Such provisions are commonly found in a statute which takes away the jurisdiction of one court and confers it on another. From these two circumstances it is to be inferred that if there is at all any expression of intention, it is to keep S. 6 of the General Clauses Act, applicable to pending litigation……”.

(emphasis supplied)

8. (See also Shri Vijaya Lakshmi Rice Mills v. State of A.P, (1976) 3 SCC 37 : A.I.R 1976 SC 1471).

9. It is therefore clear, going by the above pronouncements of the apex, court, that the appeals pending before the Sub-ordinate Judges at the time of the commence meat of the notification shall, be heard and disposed of by the Sub-ordinate Judges unless the notification by express provision or by necessary intendment interfers with the pending proceedings.

10. The question therefore is, does the notification either expressly or by necessary intendment interfere with the right of appeal vested in the litigant. The language employed in the notification, to my mind, makes it clear that it does not take away the right of appeal vested in the litigant. That it is so is further established by the fact that there ??? provision in the notification that appeals pending before the ??? Judges shall stand transferred to the District Judges on whom ??? Appellate Authority within the meaning of S. 18(1) have ??? is also relevant in this context to note that the District ??? with the power of the appellate authority only by the ??? said power was created only with effect from 26th Page: 411September, 1989. This circumstance would indicate that the intention of the Government was to keep. Section 4 of The Kerala Interpretation and General Clauses Act application to pending litigations. It is also profitable, to note in this connection another circumstance inferrable from the facts stated hereunder. Section 20 of The Rent Control Act enables the party aggrieved by the judgment of the Sub-ordinate Judge to file a revision before the District Court. On the application of such an aggrieved party the District court can call for and examine the records relating to any order passed or proceedings takers under the Act by the appellate authority for the purpose of satisfying itself as to the legality regularity or propriety of such order or proceeding and may pass such order in reference thereto as it thinks fit. Construing this section, this court has even observed that the District Court is competent to take oral evidence or receive fresh documentary evidence. (See Amir v. Maniamma, 1979 K.L.T SN 59). In disposing of the application under Section 20A the revising authority can, if the circumstances warrant, remand the case for fresh disposal according to such directions as it may give. The remand can be made to the appellate authority as well. The District court after receiving fresh evidence can therefore remand the case, to the appellate authority for a denovo consideration of the entire case. This power of remand is not interferred with by the notification. This circumstance would help one to infer that the Notification intends to keep Section 4 of The Kerala Interpretation and General Clauses Act applicable to pending appeals. (See also Joseph v. Malathy Amma, 1989 (2) K.L.T 953 and Mathew v. Gilbert (1990 (1) K.L.T 139).

11. To sum up: The notification does not either expressly or by necessary intendment interfere with the appeals pending before the Sub-ordinate Judges. That means the direction to transfer the said appeals to the District Judges is not sustainable in law.

12. Advocate Sri. P.K Balasubramanyan, the counsel representing the petitioner in C.R.P 158/1990 cited a Division Bench ruling of this court in Poulose v. Catholic Syrian Bank Ltd. (1988 (2) K.L.T 599) and submitted that it may perhaps be argued that no litigant/suitor has a vested right to have his appeal heard by a particular forum or by a particular number of judges. On going through the decision it can be seen that the Division Bench has made such an observation. The said observation however, cannot be placed on a par with a principle laid down by the court, because no question warranting such an observation, did arise for consideration in that decision. The said observation therefore can at best be said to be a casual expression of opinion upon a point which did not arise for consideration in the case. It therefore does not have any binding effect. (See pages 259 and 261 of Law in The Making by C.K Allen, 7th edition). It is relevant in this connection to take note of the facts of that case. The Notification, Page: 412the effect of which was considered by the Division Bench, was one issued under Sec. 5 of The Kerala Shops and Commercial Establishments Act, 1960. The Notification exempted scheduled commercial banks from the purview of The Shops and Commercial Establishments Act. The question as to whether an appeal under Sec. 18 would be available to a dismissed employee of a commercial bank therefore did not arise for consideration at all because the said right of appeal had expressly been taken away by the Notification. Nonetheless the Division Bench made the observation. The observation therefore shall confine to the facts of that case; It is all the more so because the observation, in my view also runs counter to the principle enunciated by the Supreme Court in Garikapati's case.

13. In the light of what is stated above, C.R.P 158/1990 requires to be dismissed. Accordingly the same is dismissed. C.R.P 2550 of 1989, in the light of the above discussion requires to be filed before the District Court. C.R.P 2550 of 1989 therefore is directed to be returned to the petitioner for being presented before the District Court. The petitioner is given four week's time from the date on which the Office returns the revision and the connected files to him to present the revision before the District Court.

14. Accordingly, the following directions are issued in regard to pending matters:—

i. The appeals filed before the date of the notification i.e 26-9-1989 and pending before the Sub-ordinate Judges shall be heard and disposed of by the Sub-ordinate Judges.

ii. Such appeals which have already been transmitted to the District Court pursuant to the Official Memorandum referred to elsewhere in this order shall be retransmitted to the Sub-ordinate Judges.