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  • Article 4 or Article 11 of the Second Schedule to the Provincial Small Cause Courts Act
  • Section 25 of the Small Cause Courts Act
  • Cause Courts Act. Authority
  • Section 102, C.P.C.,
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Citation Codes
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citation codes
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  • Article 4 or Article 11 of the Second Schedule to the Provincial Small Cause Courts Act
  • Section 25 of the Small Cause Courts Act
  • Cause Courts Act. Authority
  • Section 102, C.P.C.,
Smart Summary

Factual and Procedural Background

The plaintiff sued for a sum of money alleged to be due under an ekrarnama dated 28 March 1891. On the same day as the ekrarnama, there was a conveyance of certain land by the predecessor-in-title of the plaintiff to the predecessor of the defendant. The conveyance contained no reference to the ekrarnama. The ekrarnama, executed by the defendant's predecessor-in-title, set out a promise to pay the plaintiff (and his legal representatives) Rs. 20 yearly "for the sheba of the Jugal Kishore Thakur" so long as certain family/zamindari conditions continued. The purchaser who made that promise later conveyed the land to the present defendant. The plaintiff sued the present defendant on the ground that the promise was intended to bind subsequent owners and therefore "ran with the land."

Procedurally, the Munsif of Ranaghat gave a decision in favour of the plaintiff which was reversed by the District Judge of Nadia. The defendant appealed from the decision of the District Judge to the High Court. The litigation history is protracted, with several earlier suits (many in the Small Cause Court) between the parties. A central procedural contention was whether the suit was of a nature cognizable by the Small Cause Court, and if so, whether further appeal to the High Court was barred by Section 102 of the Civil Procedure Code (C.P.C.) and by provisions of the Provincial Small Cause Courts Act.

Legal Issues Presented

  1. Whether the covenant contained in the ekrarnama (a promise to pay Rs. 20 yearly) was intended to and can as a matter of law "run with the land" so as to bind subsequent purchasers.
  2. Whether the suit was cognizable by the Small Cause Court such that appeals to the High Court are restricted or barred (issues arising under Article 4 and Article 11 of the Second Schedule to the Provincial Small Cause Courts Act and Section 102, C.P.C.).
  3. Given the procedural posture (a decree purportedly made without jurisdiction on appeal), whether the High Court should treat the memorandum of appeal as an application in revision and exercise its revisional jurisdiction to set aside the decree made without jurisdiction.
  4. Whether any earlier litigation between the parties (including Small Cause Court proceedings and prior High Court refusal to interfere) constitutes res judicata preventing the present suit or defence.

Arguments of the Parties

Plaintiff's Arguments

  • The promise in the ekrarnama was intended to bind everyone who would come to own the land and therefore the covenant runs with the land; the present defendant, as purchaser, is bound by the predecessor's promise.
  • An objection was also taken by the plaintiff's pleader that, under Section 102 C.P.C., there is no second appeal because the suit was of a nature cognizable by the Small Cause Court.
  • The plaintiff relied on prior litigation outcomes (including earlier suits and a High Court decision refusing to interfere in revision) to support a res judicata argument that the defendant had already been held liable in earlier suits.

Defendant's (Appellant's) Position

  • The defendant argued that there is no such thing, between vendor and purchaser, as a covenant to pay money that runs with the land; the ekrarnama contains a personal covenant and not a covenant creating rent or a charge on the land.
  • On construction, the ekrarnama is a separate document from the conveyance and shows the vendor took a personal covenant from the purchaser intended to bind the purchaser and his family only so long as they held the land.
  • The defendant maintained that, therefore, on the merits there was no legal obligation binding subsequent purchasers.
  • Procedurally, the defendant challenged the jurisdictional validity of prior appeals and decrees, and sought to have the High Court treat the memorandum of appeal as an application in revision to set aside a decree made without jurisdiction.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Tulk v. Moxhay (1848) 2 Ph. 774 Principle governing restrictive covenants: where there is a restrictive covenant and a purchaser takes with notice, the covenantor in whose favour the covenant was made can restrain the purchaser from acting contrary to it. The court held Tulk v. Moxhay to be inapplicable because the ekrarnama did not contain a restrictive covenant; the present case was far removed from that principle.
Shankarbhai v. Somabhai (1900) 25 Bom. 417 Authority cited concerning prohibition of appeal where the subject-matter is cognizable by the Small Cause Court. Applied as authority that, if the suit is cognizable by the Small Cause Court, the first appeal was without jurisdiction and the second appeal to the High Court is barred under the relevant Small Cause Court provisions.
Indra Chandra Mukherjee v. Srish Chunder Banerjee (1913) 40 Cal. 537 Followed the principle in Shankarbhai regarding jurisdictional limitations when Small Cause Court cognizance applies. Cited as a following authority; used to support the proposition that the first appeal was without jurisdiction if the Small Cause Court had cognizance.
Gangadhar v. Sekharbashini (1916) 20 C.W.N. 967 Doctrines concerning setting aside decrees made without jurisdiction (background authority on remedies). Referenced to explain the ordinary rule that a decree made without jurisdiction might be set aside on appeal or revision; but the court noted that Section 102 C.P.C. complicated the availability of a second appeal.
Aduram Haldar v. Nakuleswar Roy (1918) 29 C.L.J. 48 Authority concerning the setting aside of decrees made without jurisdiction. Used alongside Gangadhar as part of the jurisprudential background for the proposition that a decree made without jurisdiction could ordinarily be set aside.
Sita Nath v. Baikunta Nath (1911) 38 Cal. 421 Example where a memorandum of appeal was treated as an application in revision to set aside a decree made without jurisdiction. Relied upon as precedent permitting the High Court to treat the present memorandum of appeal as an application in revision and entertain it to set aside the decree made without jurisdiction.

Court's Reasoning and Analysis

The court's analysis proceeded in two main strands: (A) construction and merits of the ekrarnama and (B) procedural and jurisdictional consequences arising from the long history of litigation in Small Cause Courts and ordinary civil courts.

A. Construction and Merits

  • The court examined the ekrarnama and the contemporaneous conveyance and observed that the conveyance made no reference to the ekrarnama; the two documents were kept separate.
  • On construction, the ekrarnama's language showed a personal promise by the purchaser (and his heirs and legal representatives) to pay Rs. 20 yearly "for the sheba of the Thakur" so long as there were members of his family and so long as he had zemindari rights. The form and separation from the conveyance indicated the promise was a personal covenant taken as part of consideration, not a covenant intended as an encumbrance or charge on the land.
  • The court recalled that at common law covenants did not run with the reversion; statute law allows some covenants to run with terms or reversions in specific contexts. The present covenant was not of a kind that runs with the land — it was not a covenant to pay rent, there was no lessor/lessee relationship, no term and reversion, and no charge on the land.
  • Because Tulk v. Moxhay governs restrictive covenants and equitable obligations enforceable against purchasers with notice, and because the ekrarnama did not impose a restrictive covenant or fall within that doctrine, the court concluded the ekrarnama did not bind subsequent purchasers as a covenant running with the land.
  • Therefore, on the merits, the court found no substance to the plaintiff's claim against the defendant.

B. Procedural and Jurisdictional Analysis

  • The litigation history showed multiple prior suits, many in the Small Cause Court. The plaintiff contended that, under Section 102 C.P.C., no second appeal was available because the suit was of a nature cognizable by the Small Cause Court; the court considered the case on both assumptions (that the Small Cause Court had cognizance and that it did not).
  • If the suit is cognizable by the Small Cause Court: the court found nothing in Article 4 or Article 11 of the Second Schedule to the Provincial Small Cause Courts Act to remove jurisdiction from the Small Cause Court. If so, the first appeal to the District Judge was without jurisdiction; following authorities like Shankarbhai and Indra Chandra Mukherjee, the court held the first appeal would be vitiated and Section 102 C.P.C. would bar a second appeal to this Court.
  • However, the court observed that it has the option to treat the defendant's memorandum of appeal as an application in revision to set aside a decree made without jurisdiction — a procedural device exemplified by Sita Nath v. Baikunta Nath. The court considered whether to exercise this revisional power. Because a decree made without jurisdiction may cause future difficulties and because the court was satisfied that the decree below was wrong on the merits, the court decided to intervene in revision and set aside the decree of the learned District Judge as having been made without jurisdiction.
  • If the suit is not cognizable by the Small Cause Court: a second appeal would lie and the court would be entitled to decide on the merits and on the question of res judicata. The court concluded that earlier proceedings in Small Cause Court (if those courts lacked competence) and the earlier High Court refusal to interfere did not amount to conclusive res judicata preventing the present decision; in particular, prior Small Cause Court judgments and the subsequent High Court decision arising from them could not be treated as res judicata if those forums lacked jurisdiction.
  • On either view, the court found a way to reach the merits and was satisfied the decree of the Court of appeal below was without jurisdiction and incorrect on the merits; it therefore proposed to set the decree aside, treating the memorandum as an application in revision.

Holding and Implications

HOLDING: The High Court set aside the decree of the learned District Judge (the decision of the Court of appeal below) as having been made without jurisdiction and treated the defendant's memorandum of appeal as an application in revision. The court ordered that the decree of the Court below be set aside and awarded costs.

The court declared on the merits that the ekrarnama did not create a covenant that ran with the land and therefore did not bind the present defendant as a purchaser. Procedurally, the court held that if the suit were cognizable by the Small Cause Court, the first appeal was without jurisdiction and the second appeal would be barred by Section 102 C.P.C.; nonetheless, the High Court exercised its revisional power to set aside the decree made without jurisdiction.

Direct effects (as stated in the opinion):

  • The decree of the District Judge (Court of appeal below) was set aside as having been made without jurisdiction.
  • The defendant is entitled to recover his costs in the High Court from the plaintiff; the hearing fee was assessed at two gold mohurs.

The opinion does not claim to establish a broader new precedent beyond applying established principles (it applied existing authorities and statutory provisions to the facts at hand).

Judges: B.B. Ghose, J., and a concurring opinion ("I agree").

    Mohini Mohan Roy v. Ramdas Paramhansa

    1. In this case, the defendant appeals from a decision of the District Judge of Nadia reversing a decision of the Munsif of Ranaghat. The plaintiff brought the suit for a sum of money as duo to him by the terms of a document called ekrarnama. That document is dated the 28th March, 1891, and contemporaneously with it on the same day there was a conveyance of certain land by the predecessor-in-title of the plaintiff to the predecessor of the defendant. The terms of the ekrarnama have been discussed in the judgments of the Courts below and the first question is the question of construction. It is to be observed that the conveyance contains no reference whatever to any such covenant as I am now about to read from the ekrarnama. The ekrarnama which was executed by the defendant's predecessor-in-title was as follows : "When you expressed your dosire to sell your share of the putni and jamai right in mouza Goid, village Salua Parga Ukhara, I had promised before you that, if the above share was sold to me by you, I and my heirs and legal representatives shall pay you and your legal representatives for the sheba of the Jugal Kishore Thakur the sum of rupees twenty yearly, year after year." Later on, those words occur : "Therefore, I make this ekrar that by the grace of Jugal Kishore Thakur as long as there shall be any member in my family and as long as I shall have zemindari right in the above mouza, I and my heirs and legal representatives shall pay you and your legal re-preventatives for the sheba of the Thakur the sum of rupees twenty per year." The conveyance of the same date contains no covenant to an equivalent effect and there is no recital whatever in it of this ekrarnama. Now, what has happened IK this : The purchaser of the property who made the promise contained in the ekrarnama conveyed this land to the present defendant. The present defendant is a purchaser from him. The plaintiff accordingly brought the suit against the do-fondant, and he brought it upon the ground that the present defendant was bound by the promise of the man who had sold the land to him. The plaintiff says that the promise of the predecessor-in-title of the defendant was intended to bind everybody who would come to own that land and that the convenient runs with the land.

    2. Now, in this case, it will be simplest to begin by stating the legal position of the parties. The position of the defendant in the face of a claim of that sort is that he is a person who is sued upon a claim which is unfounded in law. There is no such thing as between a vendor and a purchaser as a covenant to pay money running with the land. In the case of assignment of lease as between any one who may become interested in the term and any one who becomes interested in the reversion it is possible to talk of a covenant running with the land, At common law no covenant ever ran with the reversion. By the statute law, some covenants may run with the term and some with the reversion and the nature of the covenants that can be said in loose language to run with the land has been described in the case-law and in the Convincing Acts and made more or less precise. The present covenant is not one which can run with the land as it is in no way a covenant to pay rent. There is no lessor or lessee, there is no term and there is no reversion. There is no charge on the land. The position of a purchaser of land whose predecessor became bound by a restrictive covenant is dealt with upon the principle of Tulk v. Moxhay (1848) 2 Ph. 774. If there is a restrictive covenant and the purchaser takes with notice of it, then the person in whose favour the covenant is made can restrain the purchaser from acting contrary thereto. The present case is far removed from anything of that sort. When one looks at the terms of the ekrarnama, and at the way in which these two documents of the same date were kept separate, it is abundantly plain that the vendor had a mind to sell the land with a clean title and that, as a part of the consideration, he took a personal covenant from the purchaser which was intended to bind the latter and his family and then only so long as they held the land. There is, therefore, upon the merits, no substance in the case against the defendant and there never was.

    3. Now, the position in this case is only half dealt with when the merits are dealt with. It appears that, in the protracted series of suits-mostly but not all brought in the Small Cause Court, these parties have litigated upon this matter and the defendant has had very poor success. The present appeal is complicated by the further consideration that this suit was not brought in the Small Cause Court.

    4. An objection has been taken by the plaintiff's pleader to the effect that, under section 102 of the code, there is no second appeal because the suit was of a nature cognizable by the Small Cause Court. I propose to deal with the case on both assumptions; but my opinion is that the suit is simply a suit for a sum of money giving a bad reason why the defendant is bound by the covenant. That being so, I see nothing in Article 4 or Article 11 of the Second Schedule to the Provincial Small Cause Courts Act to take away the jurisdiction of the Small Cause Court.

    5. If that be the true view, then the fact that the case was tried by the Munsif in his ordinary jurisdiction does not take away the prohibition of an appeal contained in the Small Cause Courts Act. Authority for that is cited to us from Shankarbhai v. Somabhai (1900) 25 Bom. 417 which has been followed in this Court in the case of Indra Chandra Mukherjee v. Srish Chunder Banerjee (1913) 40 Cal. 537. The result, therefore, on this view is that the first appeal was without jurisdiction. The second result but for Section 102, C.P.C., would be that this appeal would lie to set aside the decree made without jurisdiction on the first appeal. That would be on the well known doctrines that are laid down in such cases as Gangadhar v. Sekharbashini (1916) 20 C.W.N. 967 and Aduram Haldar v. Nakuleswar Roy (1918) 29 C.L.J. 48. But, in this case, there is a further complication that there is a special prohibition against a second appeal. In that view, an objection has been taken by the plaintiff that this appeal is incompetent. In my opinion, on the assumption which I think to be right that the case is cognizable by the Small Cause Court, the present appeal is not competent, and is barred by Section 102, C.P.C. But it is open to the appellant to ask us to treat his memorandum of appeal as an application in revision and to set aside the order made without jurisdiction. This has been done before now. One instance my learned brother points out to me is the case of Sita Nath v. Baikunta Nath (1911) 38 Cal. 421. The question is whether on this assumption we shall exercise our revisional power. Prima facie when a Court is faced with a decree which is made without jurisdiction, it is a very strong thing not to interfere in revision, because otherwise all sorts of troubles may arise. The decree which is a nullity may be con tested hereafter by a suit and that may give rise to infinite difficulties. We have, therefore, to see whether there is any valid reason why the decree under appeal should not be set aside. As to that the position is this :If there was no appeal to the District Judge, the plaintiff who was no suited by the Munsiff might have applied in revision under Section 25 of the Small Cause Courts Act to this High Court. Now it may be that, if we had been of opinion that the plaintiff's case was a very good one on merits, we would not necessarily, in the circumstances of this case, have felt bound now to give leave to apply in revision to set aside the decree of the learned Judge of the Court below That is the position on that hypothesis. We think that the decree of the Court of appeal below is without jurisdiction. We are satisfied that it is wrong on the merits and we propose apart from any question of res judicata to interfere.

    6. The other view may also be considered. It may be said that the case is not cognizable by the Small Cause Court. In that event, what is the position? The position then is this : There is a second appeal and we are entitled to deal with the case upon the facts found. Now, the only case on that footing which the plaintiff can make is the case of res judicata and, on the footing that the case is not cognizable by the Small Cause Court, what is the plaintiff's case for res judicata? It appears that the first suit to which the present defendant was a party, was a Small Cause Court Suit of 1901. Well, if the Small Cause Court was not competent to try this case, there is no res judicata. It so happened that in that first suit an application in revision came up to this High Court, and two learned Judges, for reasons which do not appeal to me, refused to interfere with the decree of the Court below holding that the defendant was liable. I am quite prepared to pay respect to that decision so far as it contains propositions not inconsistent with other decisions. But that judgment is in no way res judicata any more than the Small Cause Court Judge's judgment in connection with which it arose. The next suit was one of 1909 which was a suit in the ordinary Civil Court a decree dated the 26th April, 1901, being made for rent. I entirely demur to the proposition that this case can be governed by any result of a suit for rent. The next case was one of 1916 brought in the Small Cause Court, and there it is perfectly true all points appear to have been canvassed. The defendant was then held liable but on the assumption that the suit was not cognizable by the Small Cause Court, the Judge was not entitled to try the suit. So there is no res judicata. Whichever way, therefore, we look at this matter, in spite of the tangle arising from the procedure adopted in this case and from the procedure adopted in the previous litigation, we see our way to decide this case according to our opinion on the merits. We propose to do so treating the memorandum of appeal presented to this Court by the defendant as an application in revision, and set aside the decree of the learned District Judge with costs in that Court as having boon made without jurisdiction. The defendant is entitled to recover his costs in this Court from the plaintiff. We assess the hearing fee at two gold mohurs.

    B.B. Ghose, J.

    7. I agree.

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    Mohini Mohan Roy v. Ramdas Paramhansa
    (Jul 5, 1923)