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Court Opinion Summary — Civil Revision (Money Suit No. 39 of 1941)

Factual and Procedural Background

This civil revision was filed by the defendant in Money Suit No. 39 of 1941 heard by the Subordinate Judge at Dhanbad. The plaintiffs sued for recovery of rents said to be payable in respect of certain mining (underground) rights in mouza Sabaldi (pergana Jharia, district Hanbhuin). The plaintiffs' claim rested on a kabuliat executed by Hardayal Singh on 12-6-1918 reserving an annual rent of Rs. 972. The defendant contested liability on several factual grounds: that Hardayal was not their farzidar; that neither the defendant nor the defendant's estate knowingly paid rent reserved by the kabuliat; that the kabuliat, if any, was entered into under a mutual mistake and therefore not operative; and that underground rights had always been retained by the proprietors and were not conveyed to the plaintiffs' predecessors-in-interest.

Procedurally, issues were originally framed on 30 May 1941. After the parties opened their cases, the Subordinate Judge re-cast the issues. The defendant sought further issues to be framed; the Subordinate Judge refused and ordered the issues to stand as re-cast. The defendant filed this civil revision challenging that refusal.

Legal Issues Presented

  1. Whether, under Order 14 Rule 5 of the Civil Procedure Code, the Subordinate Judge was obliged to frame all issues "necessary for determining the matters in controversy" and whether his refusal to frame the additional issues proposed by the defendant was erroneous.
  2. Whether the Subordinate Judge's refusal to frame additional issues (including an issue as to whether the kabuliat was vitiated by a mutual mistake and whether the plaintiffs had any right in the underground) amounted to a failure to exercise jurisdiction such that civil revision lies.
  3. Whether the issues concerning the validity of the lease and the parties' respective rights in the underground (and related questions such as benami lease, payments alleged, undue influence, fraud and estoppel) should be specifically framed to enable the parties to present their cases.

Arguments of the Parties

Petitioner's (Defendant's) Arguments

  • The defendant (through Dr. Mitter) argued that Order 14 Rule 5 CPC makes it obligatory for the trial judge to frame such issues as are necessary for determining the controversy between the parties; refusal to frame necessary issues was therefore impermissible.
  • In support the petitioner cited the authority of Shamu Patter v. Abdul Kadir (39 I.A. 2181 at p. 222) for the proposition that the Court is obliged to frame the issues necessary to determine the controversy.
  • The defendant sought specific issues (including one concerning mutual mistake and the validity of the kabuliat and the question whether plaintiffs had rights in the underground) to be added so that the defendant could lead evidence on those pleaded contentions (e.g., that the kabuliat was vitiated by mutual mistake and that underground rights were reserved by proprietors).

Respondents' (Plaintiffs') Arguments / Objections

  • Learned counsel for the respondents raised a preliminary objection that civil revision did not lie: the Subordinate Judge, having jurisdiction to decide whether particular issues are necessary, was entitled to exercise that judicial discretion and his decision (even if erroneous) did not amount to a jurisdictional error justifying revision.
  • The respondents' counsel also argued that the re-cast issues (issues 1 and 2 as re-cast) were comprehensive enough to cover the matters now sought to be raised by the proposed additional issue, including benami and other incidental questions.

Subordinate Judge's Reasoning (as recorded in the order under challenge)

  • The Subordinate Judge characterized the suit as a claim for money (recovery of rent) and considered questions about lease validity or the lessee's ignorance of underground rights to be incidental; he thought it unnecessary to frame specific issues on those points.
  • He did frame specific issues on the lessor-lessee relationship and whether the lease was executed in ignorance of mineral rights, but refused to frame a specific issue on "mutual mistake," reasoning that the defendant could plead ignorance or mistake of his rights but could not attribute such a notion to the plaintiff who was making a claim based on the lease, especially when payments had allegedly been made by the defendant to keep the lease alive.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Shamu Patter v. Abdul Kadir, 39 I.A. 2181 (p. 222) That it is obligatory upon a court to frame such issues as are necessary for determining the controversy between the parties (authority on framing issues under O.14 R.5 CPC). The court relied on this authority to support the proposition that the Subordinate Judge was obliged to frame necessary issues and that refusal to do so could amount to a failure to exercise jurisdiction.
Hari Narayan Singh v. Sriram Chakravarti, 37 I.A. 1362 Used among authorities for the principle that, prima facie, subsoil/mineral rights remain in the proprietor and are not transferred absent express words of conveyance or clear evidence to that effect. The court cited this line of authorities to show that the question whether underground rights remained with the proprietor is a substantial point properly raised by the defendant and thus an issue that ought to be considered (and therefore framed).
Gobinda Narayan Singh v. Sham Lal Singh, 58 I.A. 1253 Also cited as part of the authorities supporting the principle about proprietary reservation of subsoil/mineral rights absent express conveyance. The court treated this as part of the body of authority establishing that the underground-rights question is substantial and legitimately contestable by the defendant; it supported the decision to direct framing of appropriate issues.

Court's Reasoning and Analysis

The court proceeded by examining whether the Subordinate Judge's refusal to frame the defendant's proposed additional issues was permissible under Order 14 Rule 5 CPC and whether that refusal barred revisional interference.

  1. Mandatory nature of O.14 R.5 CPC: The court held that Rule 5 of Order 14 makes it obligatory to frame such issues as are necessary for determining the controversy between the parties. If the Subordinate Judge refuses to frame issues that are necessary, he fails to exercise the jurisdiction vested in him.
  2. Pre-judging and scope of issues: The court criticised the Subordinate Judge's reasoning as amounting to pre-judgment at the stage of framing issues — treating the suit merely as a money claim and thereby constraining the scope of issues despite substantial factual and legal contest (e.g., whether underground rights were conveyed).
  3. Treatment of estoppel and denial of lease: The court analysed the interplay between estoppel (Section 116, Evidence Act) and a defendant's right to deny the existence/validity of a lease. It clarified that the principle of estoppel does not prevent an alleged lessee from denying that he was ever a lessee or that the lease was valid; estoppel operates where a person, acting as a lessee, attempts to deny the lessor's title.
  4. Jurisdictional consequence of erroneous issue-framing: The court rejected the respondents' contention that an erroneous exercise of discretion by the Subordinate Judge in deciding which issues are necessary would not raise a question of jurisdiction. The court held that where refusal to frame necessary issues affects the court's capacity to determine the controversy, such erroneous refusal is, in effect, a failure to exercise jurisdiction and thus open to revisional review.
  5. Practical necessity and clarity: Even though some re-cast issues were comprehensive, the court found the Subordinate Judge's order created ambiguity and potential disability on the defendant's ability to lead evidence on pleaded matters. For clarity and to avoid prejudice, the court directed that the defendant's proposed issue be added and that certain originally framed issues (Nos. 3, 4 and 6 of 30 May 1941) be retained. The court also observed that an issue as to estoppel is relevant and should be raised by the Subordinate Judge if the plaintiff moves for it.

Holding and Implications

Holding: The civil revision is allowed; the order of the Subordinate Judge refusing to frame the additional issues is set aside and the Subordinate Judge is directed to frame/add the necessary issues (including the defendant's proposed issue and retain Issues Nos. 3, 4 and 6 originally framed on 30 May 1941). Costs were ordered to abide the result and a hearing fee of one gold mohur was awarded. The record was to be sent down immediately.

Implications:

  • The direct effect is that the trial court must re-open its issue framing to include the additional issues the defendant sought and to retain certain original issues identified by the revisional court; this will permit the defendant to lead evidence on those pleaded contentions (for example, on whether the kabuliat was vitiated by mutual mistake and whether underground rights were reserved by proprietors).
  • The court recognised that questions about the validity of the lease, mutual mistake, benami allegations, alleged payments, undue influence, fraud/misrepresentation and estoppel are material to the determination of the dispute and therefore should be the subject of specific issues rather than being treated as merely incidental in a suit for money.
  • The opinion emphasises that an erroneous refusal to frame necessary issues may amount to a failure to exercise jurisdiction and thus permit revisional interference; the decision was applied to the facts of this case but the court did not purport to lay down a broader novel rule beyond the operation of Order 14 Rule 5 CPC as interpreted from the cited authorities.
Result recorded in the opinion: "Revision allowed."

Prepared from the text of the provided court opinion. No information beyond that opinion has been introduced.

    Shiba Prasad Singh v. Nilabji Bali

    1. This is civil revision by the defendant in Money Suit no. 39 of 1941 in the file of the Subordinate Judge of Dhanbad. The suit is one for recovery of rents in respect of certain mining rights in mauza Sabaldi in pergana Jharia, district Hanbhuin. The plaintiffs' claim is based upon a kabuliat executed by one Hardayal Singh in favour of the predecessors-in-interest of the plaintiffs on 12-6-1918 reserving the annual rent of Rs. 972/-. The defendant's liability for payment-of rent is based upon certain allegations of fact of which the most relevant ones for the purposes of this civil revision are that the lessee of the aforesaid kabuliat was of arzidar of the defendant, that in pursuance of this transaction and on account of the relationship of landlord and tenant, there had been some payments of rent towards the rent reserved in the kabuliat by the defendant's estate, and, that therefore, the defendant is liable to pay the arrears claimed in the suit. The defendant denied all the necessary allegations, namely that Hardayal was their farzidar and that either the defendant or the defendant's estate ever made any payment knowingly towards the rent reserved in the kabuliat. The defendant further stated that the kabuliat, if any, was entered into under mutual mistake of the parties concerned, and, therefore, it was not operative. It was also stated by the defendant in his written statement that the underground rights in respect of which the rent was claimed did not lay in the plaintiffs or their predecessors-in-interest, it having always been retained by the proprietors as a part of their proprietary interest, and the estate that was carved out in favour of the plaintiffs' predecessors-in-interest did not carry any underground rights.

    2. At first the suit was instituted by some of the plaintiffs who owned seven annas and odd interest in the mouza. The other cosbarers had been made pro forma defendants who have since been transposed to the category of plaintiffs and after this transposition the defendant was called upon to file a supplementary or additional writ, ten statement which has been done. But nothing turns upon that.

    3. In view of the pleadings of the parties a set of issues had been framed by the Subordinate Judge on 30th May 1941, of which those that are relevant for the purposes of this revision are:

    Issue No. 3: “Had the Sikhars the alleged predecessor in interest of the plaintiff any right, title or interest in the underground of mouza Sabaldi?”, Issue No. 4; “Is the allegation of a benami lease as stated in paras. 2 and 3 of tile plaint true? Is there relationship of lessor and lessee between the plaintiff and the defendant? Are the terms of the aforesaid lease binding upon the defendant or enforceable against him?, No. 6: “Is the allegation of the payment of a sum of Rs. 2500 by the defendant or of subsequent payment of the Receiver true? Was there exercise of undue influence upon the defendant's staff or Receiver or fraud and misrepresentation in the matter of such payment, if any, as alleged in the written statement?”.

    4. It may be noticed that the issue as at present proposed, namely whether the kabuliat was vitiated by a mutual mistake of the parties, was not proposed as one of the issues as originally framed. At the date of the first hearing after the parties opened their respective cases, the learned Subordinate Judge changed his mind and recast the issues in terms as follows:

    No. 1. Is there a relationship of lessor and lessee between the patties? No. 2. Was the lease executed in ignorance of the underground right of the lessee? No. 3. Are the plaintiffs entitled to the amount claimed? No. 4. To what relief, if any, are the plaintiffs entitled?

    5. The defendant not being satisfied with the issues as recast, filed an application proposing some further issues so that the matters in controversy between the parties may be finally determined. The learned Subordinate Judge however, rejected this petition and ordered the issues to stand as re-cast by him. This revision is directed against this order of the learned Subordinate Judge, and, in support thereof, it is urged by Dr. Mitter, who appears for the petitioner, that in view of the provisions of O. 14, R. 5 of the CPC, it was not at the option of the Subordinate Judge to refuse to frame such issues as within the meaning of the provision are necessary for determining the matters in controversy between the parties, because the provision says that such issues shall be so made or framed. In support of his contention he has cited the authority of the Privy Council in [Shamu Patter v. Abdul Kadir] 39 I.A 2181 at p. 222 where it is said that it is obligatory upon the Court to frame such issues as are necessary for determining the controversy between the parties.

    6. The learned Subordinate Judge in his order refusing to frame the necessary issues observes:

    “It may be mentioned that it is a claim for money and the question regarding the validity of the lease or the ignorance of the lessee arises incidentally and it is not necessary to frame specific issue on that point. The only issue that really arises in this case is whether the plaintiffs, on the allegations made in the plaint, are entitled to the amount claimed. In spite of it I have framed one specific issue regarding relationship of lessor and lessee between the parties and another whether the lease was executed in ignorance of the mineral rights of the lessee. As it is not a suit for a declaration regarding the validity or otherwise of the lease, no direct issue concerning the lease can be framed. So far as the term ‘mutual mistake’ in the proposed issue is concerned, the defendant can plead his ignorance and mistake of his rights but cannot attribute or force this notion on the plaintiff who has specifically come out with a claim on the basis of the lease which he cannot admit to have been executed under a mistake on his part specially when it is stated that the defendant has been paying rent in order to keep the lease alive.”

    7. I am afraid I do not appreciate this, reasoning of the learned Subordinate Judge. It seems he has pre-judged the suit at a stage when be has to frame issues.

    8. A number of authorities beginning with [Hari Narayan Singh v. Sriram Chakravarti] 37 I.A 1362 down to [Gobinda Narayan Singh v. Sham Lal Singh] 58 I.A 1253 have been cited before me by the learned counsel appearing for the petitioner to show that prima facie the subsoil mineral rights remain in the proprietor and is not affected by any grant carved out of the proprietary right in the absence of express words of conveyance or in the absence of express evidence to that effect. It goes without saying that at this stage I am not inclined to express any opinion with regard to with whom the rights in question in respect of which the rent is sought to be recovered would prima facie lie. But it is quite clear that this is a substantial point which the defendant, who also happens to be a proprietor of the estate within which mouza Sabaldi lies, is entitled to raise. I do not agree with the learned Subordinate Judge that this being a suit for money, in other words this being a suit for recovery of rent, the question of respective rights of the parties to the subject-matter of the lease does not arise. It is true that once a valid and subsisting lease is established between the parties, the lessee may be bound by the principle of estoppel and may be debarred from disputing the question of title of the lessor, but that does not prevent the alleged lessee to deny the lease and to deny his own status as a lessee. He is bound by the rule of estoppel only when he acts as a lessee and in that capacity tries to refute the title of his own lessor. That well established principle of estoppel as between lessor and lessee as enacted in Section 116 of the Evidence Act, does not prevent any defendant to make out the case that he has never been a lessee, and the lease purporting to make him a lessee was never a valid document, and, in that behalf, to plead such circumstances as may invalidate the lease or otherwise make it null and void. Learned counsel appearing for the respondents raised a preliminary objection that no civil revision lies as the Subordinate Judge having had jurisdiction to decide the suit either to frame certain issues or not was well within his jurisdiction and his order so refusing does not involve any question of wrong assumption of jurisdiction or wrongful exercise or non-exercise of jurisdiction. It is urged, therefore, that this Court has no power to interfere.

    9. I cannot accept this contention in this particular case. As I have said before, the provisions of R. 5 of o. 14 make it obligatory upon the Subordinate Judge to frame such issues as are necessary for determining the controversy between the parties, and if he refuses to make such issues as are really necessary for determining the controversy, I must hold that he fails to exercise the jurisdiction which is vested in him. It is further contended that the learned Sub ordinate Judge was the person who had the jurisdiction to decide whether any particular issue is necessary for determining the controversy between the parties, and if he decides that erroneously it raises no question of jurisdiction. I fail to appreciate this argument too because it has been always the well established principle that if the determination of any particular question of fact or law results in affecting the Court's jurisdiction to decide a matter, an erroneous decision of that question of fact or law is also a question of jurisdiction. If the Subordinate Judge has decided wrongly that a particular issue is not necessary for determining the controversy while it is in fact necessary, it is this wrong decision of his which leads him to the position of failing to exercise his jurisdiction of framing necessary issues which he had. In my view, therefore, the civil revision does lie and the Subordinate Judge's refusal to frame the necessary issue, which was obligatory, involves a question of jurisdiction in the sense that he has failed to exercise the jurisdiction vested in him.

    10. In my view, therefore, the issue which is sought to be framed by the defendant in his petition filed before the learned Subordinate Judge should be added to the issues as re-cast by him. I should further direct that some of the issues that had been originally framed on 30th May 1941 should also be retained as in my view, on the pleadings, those are also necessary issues for determining the controversy. I am fully conscious of what the learned Subordinate Judge says and what the learned counsel appearing for the opposite party urges, namely that issues 1 and 2 as recast are comprehensive enough to include the points now sought to be raised by the proposed additional issue and also the question of bename and other incidental questions. But in view of the Subordinate Judge's own order the matter becomes all the more ambiguous and leaves sufficient room for controversy and may lead to certain disability to be east upon the defendant from adducing such evidence as he would otherwise be entitled to adduce on the basis of his pleadings. In order to avoid ambiguity and for the sake of clarity, I should direct that issues 3, 4 and 6 of 30th May 1941, should also form part of the issues now to be framed. Learned counsel for the opposite party says that an issue as to estoppel is also relevant in a case like this. I quite appreciate that, and the Subordinate Judge when moved, in that behalf, by the plaintiff should be well advised to raise an issue as to estoppel. In the result the civil revision is allowed and the order of the Subordinate Judge is set aside. Costs to abide the result. Hearing fee one gold mohur. The record may be sent down immediately.

    D.S/D.H

    11. Revision allowed.

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    Comments

    Shiba Prasad Singh v. Nilabji Bali
    (Jan 9, 1946)