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  • Order 41 Rule 5 read with Section 151 C.P.C
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  • Order 41 Rule 5 read with Section 151 C.P.C
Smart Summary

Factual and Procedural Background

The petitioner was declared blacklisted by the respondents in 1989, which led him to file a writ petition (C.W.J.C No. 4441 of 1989) challenging this action. The writ petition was disposed of with directions that the controversy could not be examined in writ proceedings due to the need for evidence, but the petitioner was given liberty to make a representation or file a civil suit. The petitioner filed Title Suit No. 570/90 in the Subordinate Judge’s court seeking a declaration that the blacklisting was illegal. The trial court decreed the suit on 6.9.1996, holding that the blacklisting was without reasonable grounds and was bad in law. The petitioner then filed another writ petition (C.W.J.C No. 1297/99), which was disposed of on 10.8.1999 with directions to make a representation based on the civil court’s orders. The petitioner filed such a representation on 2.9.1999, but it was refused by the competent authority by letter dated 26.7.2000, citing that the decree was sub judice in appeal and no final order would be passed. The petitioner has now approached the High Court again.

Legal Issues Presented

  1. Whether the respondents are bound to revoke the blacklisting order in light of the declaratory decree granted in favor of the petitioner, despite the pendency of an appeal against that decree.
  2. Whether a declaratory decree can be executed or enforced by the respondents without a formal execution proceeding.
  3. The effect of the absence of a stay on the declaratory decree passed by the trial court pending appeal.

Arguments of the Parties

Petitioner's Arguments

  • The declaratory decree in his favor has not been stayed by the appellate court.
  • The respondents are therefore required to comply with the mandate of the decree and revoke the blacklisting order.

Respondents' Arguments

  • The petitioner must initiate execution proceedings to enforce the decree.
  • Since the decree is declaratory in nature, the respondents are not obligated to take any further action on their own.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Order 41 Rule 5 read with Section 151 C.P.C Effect and operation of declaratory decrees can be stayed by appellate court The court explained that in absence of a stay by the appellate court, the declaratory decree binds the parties and must be given effect.
Order 21 C.P.C Execution of decrees The court noted that Order 21 does not provide a mode for execution of declaratory decrees.

Court's Reasoning and Analysis

The court analyzed the nature of the decree passed by the trial court, recognizing it as a declaratory decree that declares the rights and status of the parties but is not executable under Order 21 C.P.C. The court emphasized that while execution procedures exist for executable decrees, declaratory decrees do not have a direct execution mechanism. However, the appellate court has the power under Order 41 Rule 5 read with Section 151 C.P.C to stay the operation of such decrees. Since the petitioner’s appeal has been filed but no stay granted, the declaratory decree remains operative and binds the parties. Consequently, the respondents' blacklisting of the petitioner is declared bad in law and without effect, and the petitioner’s status must reflect that he is not blacklisted. The court rejected the respondents’ argument that no action is required without execution proceedings, holding that the declaratory decree’s effect is immediate absent a stay.

Holding and Implications

The petition is disposed of.

The court held that in absence of a stay by the appellate court, the declaratory decree in favor of the petitioner is binding and the petitioner’s blacklisting is legally invalid. The respondents must recognize this status. No further execution proceedings are necessary to give effect to the declaratory decree. The decision directly affects the parties by affirming the petitioner’s removal from the blacklist but does not establish any new legal precedent.

    Gopal Vat Industries v. The State Of Bihar & Ors.

    1. Heard learned counsel for the parties.

    2. The facts in nut shell are that the petitioner was declared black listed by the respondents in 1989. The petitioner being aggrieved by the action came to the High Court in C.W.J.C No. 4441 of 1989.

    3. The said writ application was disposed of with the direction that the controversy cannot be examined in the writ proceedings as evidence was so required. However, the petitioner was given liberty either to make representation to the proper authority or if so advised to file civil suit. The petitioner accordingly filed title suit no. 570/90 in the court of Subordinate Judge, 8th Patna, seeking a declaration against the respondents that the order of black listing was per se illegal and deserved to be declared void. The respondents joined the issue. The trial court after recording evidence and hearing the parties vide its judgment and decree dated 6.9.96 decreed the suit and observed that the plaintiff was black listed without any cogent and reasonable ground and reason and on the grounds which were not found correct, the court also observed that the order black listing the petitioner was bad in law. The suit was ultimately decreed. As the petitioner's grievance did not come to an end he filed C.W.J.C No. 1297/99, the matter was finally disposed of on 10.8.99, the petitioner was permitted to make a representation on the basis of the orders obtained by him from the civil court. The petitioner thereafter on 2.9.99 filed a representation before the competent authority which by its letter dated 26.7.2000, as contained in Annexure-5, refused to decide the representation directing inter alia that as the decree passed by the sub-judge was subjudice in appeal no final order shall be passed on the representation made by the petitioner. The petitioner has again come to this Court.

    4. Learned counsel for the petitioner submits that in view of the declaratory decree granted in his favour and the execution of the said decree not stayed by the appellate court, the respondents are required to observe the mandate issue under the decree and issue consequential order and revoke the order of black listing. Learned counsel for the respondents, on the other hand, submits that the petitioner is required to put the decree for its execution and as the decree is declaratory decree the respondents are not required to do anything further.

    5. I have heard the parties.

    6. Undisputedly, the appeal has already been preferred against the judgment and decree granted by the sub-judge in favour of the present petitioner. It is equally true that no stay either has been obtained or granted in favour of the petitioner. A declaratory decree under the law declares the right and status of the parties and, as such, a decree cannot be put into execution. Order 21 C.P.C relates to execution of different decrees but it does not provide any mode for executing a declaratory decree. However, under Order 41 Rule 5 read with Section 151 C.P.C the effect and operation of the declaratory decree can always be stayed by the appellate court. The law on principles of stay and its operation is plain and simple. If the appellate court grants a stay then the operation of the judgment and decree passed by the subordinate court shall remain stayed but if a stay has not been prayed for or stay has not been granted by the appellate court then in cases of executable decrees, the decrees can be executed and in cases of declaratory decrees the parties would be bound by the declaration so issued by the competent courts. In the present case, a competent court has already declared the action of the respondents to be bad meaning thereby that black listing of the present petitioner was bad. If that be so, then in absence of an order of stay passed by the appellate court, the status of the parties would remain to be that the petitioner is not so black listed. Beyond this no further clarification in the matter is required.

    7. The petition is disposed of.

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    Comments

    Gopal Vat Industries v. The State Of Bihar & Ors.
    (Oct 28, 2002)