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  • Art. 181 of the Indian Limitation Act,
  • 24 Civil Rules
  • 71, Civil Rules
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Citation Codes
Equivalent Citations
citation codes
Case Number
Advocates
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  • Art. 181 of the Indian Limitation Act,
  • 24 Civil Rules
  • 71, Civil Rules
Smart Summary

Structured Summary of the Opinion

Factual and Procedural Background

This summary is drawn exclusively from the provided opinion and does not add any facts beyond that text.

The plaintiff brought a suit for possession with mesne profits. The Additional District Munsif of Rajahmundry dismissed that suit. On appeal, the appellate Court decreed the suit on 3 February 1919. Thereafter the plaintiff made an application under Order 20, Rule 12 of the Code of Civil Procedure for the ascertainment of mesne profits:

  • On 30 November 1921 the plaintiff filed an application under O. 20, R. 12 for determination of mesne profits; he paid batta but service of notice was not effected and, on his failure to pay additional batta, the Court dismissed that application.
  • The plaintiff filed another application on 6 December 1922, more than three years after the appellate Court's decree.

The central procedural question before the Court was whether the plaintiff was now debarred from having the mesne profits ascertained, given the timing of the applications and the dismissal of the November 1921 application.

Legal Issues Presented

  1. Whether the application made on 6 December 1922 is barred by Article 181 of the Indian Limitation Act because it was made more than three years after the right to apply accrued.
  2. Whether the earlier application of 30 November 1921 (the November 1921 application) — which was dismissed for failure to pay additional batta after initial steps — remains effective (i.e., may be treated as still subsisting) despite that dismissal.
  3. Whether a Court may lawfully dismiss an application of the decree-holder for ascertainment of mesne profits on the ground of failure to comply with procedural rules (in particular R. 24 of the Civil Rules of Practice), and whether Section 151 of the Code of Civil Procedure supplies authority for such a dismissal where the dismissal is recorded simply as “dismissed” without a considered order applying Sect. 151.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Lachmi Narain Marwari v. Balmakund Marwari (Privy Council / Judicial Committee observations as cited) That a Court should not, without jurisdiction, dismiss proceedings in a manner that deprives a party of the benefits of a decree; the Judicial Committee criticised dismissal "for want of further prosecution" where the dismissal had the effect of putting the plaintiff into an intolerable position and held that an adjournment sine die with liberty to restore on payment of costs would have been proper, but the order made was without jurisdiction. The Court relied on this authority to support the proposition that a bare or unconsidered order of dismissal — particularly one recorded simply as “dismissed” without a finding under Section 151 that such action was necessary for the ends of justice or to prevent abuse of process — cannot be assumed to be valid. It was used to show that depriving a party of the fruits of a decree for mere non-compliance with procedural rules is not justified without a proper exercise of jurisdiction.

Court's Reasoning and Analysis

The opinion contains separate but concordant reasoning by Jackson, J., and by Srinivasa Aiyangar, J. The Court's reasoning is set out below, following the sequence and content of the judgment.

Jackson, J. — Step-by-step analysis

  1. On limitation: The Court accepted that the application made on 6 December 1922 falls within the scope of Article 181 of the Indian Limitation Act and, being three years subsequent to when the right to apply accrued, is "clearly barred."
  2. On the November 1921 application: The November 1921 application was filed within time, and Jackson, J. considered whether the plaintiff could still treat that application as effective despite its dismissal for failure to pay additional batta required for service.
  3. Statutory duty under O. 20, R. 12: The Judge emphasised that O. 20, R. 12 imposes a statutory obligation on the Court to inquire into mesne profits and pass a final decree upon application by the decree-holder. The question posed was whether the Court can avoid that obligation merely because the decree-holder did not pursue the application (refused or failed to pay additional batta).
  4. On the absence of a Code provision for closing proceedings in such circumstances: There is no express provision in the Code of Civil Procedure that authorises dismissing an application so as to close the proceedings for ascertainment of mesne profits where the decree-holder fails to follow procedural steps (such as payment of further batta).
  5. R. 24 Civil Rules of Practice: That rule requires the party, within seven days from admission of a proceeding requiring notice, to bring into Court a stamped application for service. The rule does not state what must happen if the party fails to do so.
  6. Section 151 cannot be assumed: If a Court dismisses the application, it can only properly do so by invoking Section 151 (to act for the ends of justice or to prevent abuse of process). But merely recording “dismissed” without stating that Section 151 was applied, and without setting out how the ends of justice were served or abuse prevented, does not permit an inference that Section 151 was properly invoked.
  7. Application of Lachmi Narain Marwari v. Balmakund Marwari: Jackson, J. relied on the Judicial Committee's observations in that case to show that a Court is not justified in depriving a party of the benefits of its decree on the bare ground of failing to comply with procedure, and that Section 151 must be invoked only after a finding that its conditions are met.
  8. Proper procedure if dismissal is contemplated: If a Court considers dismissal necessary to check neglect or delay, it should call on the party to show cause and then pass a considered order rather than an unconsidered notation of "dismissed" that leaves the basis of the order ambiguous.
  9. Conclusion on effectiveness of November 1921 application: The dismissal of the November 1921 application was not of the character that rendered that application inoperative. Therefore the plaintiff is entitled to proceed upon that earlier application.
  10. Costs and consequential orders: Jackson, J. would mulct the plaintiff in costs throughout because the difficulty arose through his neglect; set aside the order of the lower appellate Court; direct that the execution petition be disposed of according to law; direct that the respondents obtain their costs throughout.

Srinivasa Aiyangar, J. — Concurring analysis (additional points)

  1. Agreement on result: Srinivasa Aiyangar, J. agreed that the appeal should be allowed and that the application for ascertainment of mesne profits made by the decree-holder in 1921 should be treated as still subsisting so that the District Munsif's Court may determine the mesne profits.
  2. Alternate, more fundamental ground of analysis: He did not rest his agreement solely on the continuity or effectiveness of the 1921 and 1922 applications, nor solely on a lack of power to dismiss for non-payment of batta. Instead he addressed the interpretation of O. 20, R. 12 (as amended by addition of Cl. 3) and whether an application by the decree-holder is an absolute, imperative condition precedent to the Court's duty to ascertain mesne profits.
  3. Textual and grammatical analysis of O. 20, R. 12: He observed that the clause speaks of a "final decree being passed" and that the scheme appears to treat the direction for payment and subsequent ascertainment as a preliminary decree followed by a final decree. He noted that if the rule had been intended to make an application always mandatory as a condition precedent, clearer language should have been used, and the grammar of the provision is awkward if interpreted in that expansive manner.
  4. Limited construction: He concluded that the proper reading is that where the duty to ascertain mesne profits is cast on the Court of first instance, the rule states that "the Court of first instance shall, on the application of the decree-holder, inquire and pass the final decree." If one assumes (for argument) that the application is a condition precedent, then an application made within the period of limitation satisfies that condition and casts the obligation on the Court to proceed.
  5. Practical effect: On his reading, once the application is made within the period of limitation, the Court's obligation to ascertain mesne profits arises and the District Munsif should proceed as in any pending suit.
  6. He did not pursue this line further because he agreed with the conclusion reached by Jackson, J.

Holding and Implications

Core Ruling: APPEAL ALLOWED.

The Court held that:

  • The application filed on 6 December 1922 is barred by Article 181 of the Indian Limitation Act (it was filed three years after the right to apply accrued) — as stated by Jackson, J.
  • The earlier application made in 1921 (referred to in the opinion as the November 1921 application by Jackson, J., and referred to as one dated 8 October 1921 by Srinivasa Aiyangar, J.) was within time and should be treated, for present purposes, as still subsisting; the District Munsif's Court should proceed to ascertain the mesne profits.
  • The dismissal of the November 1921 application, recorded simply as “dismissed” for failure to pay additional batta, was not a valid final closure of the plaintiff's right to have mesne profits ascertained; a Court must invoke Section 151 only after finding that doing so is necessary for the ends of justice or to prevent abuse, and where dismissal is contemplated for neglect it should call on the party to show cause and pass a considered order.

Direct consequences for the parties (as set out in the opinion):

  • The order of the lower appellate Court is set aside.
  • The District Munsif's Court is to proceed to determine the mesne profits on the earlier application (dated in 1921 as described in the judgment).
  • The plaintiff is mulcted in costs throughout (as stated by Jackson, J.) for the neglect that produced the difficulty.
  • The respondents are to receive their costs throughout.
  • The execution petition is to be disposed of according to law, in accordance with the direction of the Court.

Broader legal implications: The opinion does not state that it sets a new binding precedent beyond the resolution of the case. The judgment emphasises procedural limits on courts' powers to dismiss applications in a way that would deprive parties of the fruits of a decree without a clear, considered invocation of Section 151 and a finding that such action is necessary for the ends of justice or to prevent abuse of process.

    Alluri Timmaraju v. Alluri Narasimha Raju

    Jackson, J. — Plaintiff sued for possession with mesne profits. The Additional District Munsif of Rajahmundry dismissed his suit. The appellate Court decreed the suit on 3rd February, 1919. On the 30th November, 1921 the plaintiff put in an application under O. 20, R. 12 for the determination of mesne profits. He paid batta but service of notice was not effected and on his failure to pay additional batta, the Court dismissed the application. He applied again on 6th December, 1922 more than three years after the date of the appellate Court decree. The question for determination is whether plaintiff is not now debarred from having the mesne profits ascertained.

    There can be no doubt that the application of December, 1922 is an application within the scope of Art. 181 of the Indian Limitation Act, and, being three years subsequent to the time when the right to apply accrued, it is clearly barred.

    But the application of November, 1921 was within time and it is not so clear that plaintiff may not even now treat it as effective.

    Under O. 20, R. 12 a statutory obligation is laid up on the Court to inquire into mesne profits and pass a final decree on the application of the decree-holder. Can the Court avoid this obligation if the decree-holder makes the application, but does not pursue it by paying additional batta? There is no provision in the Code of Civil Procedure for dismissing an application closing the proceedings in such or similar circumstances. R. 24 Civil Rules of Practice, provides that, within seven days from the admission of any proceeding in respect of which notice is to be issued by the Court to any person, the party shall bring into Court the stamped application for service. It is not, however, laid down what shall happen if the party fail to do so. If the Court then dismisses the application it can only be said to do so by virtue of Sect. 151 of the Code of Civil Procedure for the ends of justice or to prevent abuse of its process. If in these circumstances, a Court deliberately passed proceedings under Sect. 151, Code of Civil Procedure, pointing out how the ends of justice or its own process were safeguarded, it might be hard to say that it acted without propriety or jurisdiction. But when a Court merely records “dismissed” and leaves it to be inferred whether it was or was not acting under Sect. 151, it can hardly be assumed that the only possible inference is in the affirmative.

    In this connection the observations in Lachmi Narain Marwari v. Balmakund Marwari are pertinent. In that case a suit had been remitted to the Court of first instance in order that necessary steps might be taken not for ascertaining mesne profits but to effect a partition already decreed. The Subordinate Judge fixed a day for hearing; the plaintiff failed to appear and the suit was dismissed “for want of further prosecution.” The Subordinate Judge explained this dismissal as meaning:

    “the decree is certainly in existence, but the plaintiff is not entitled to further relief in the present litigation.”

    Upon this the Judicial Committee observes:

    “He puts the plaintiff into an intolerable position, not able to go on with his suit, and yet not in a position to bring a fresh suit. Their Lordships are fully sensible of the necessity of leaving the Judges in India with ample power of discipline and means to check neglect and delay. If, for instance, the Subordinate Judge had made an order adjourning the proceedings sine die, with liberty to the plaintiffs to restore the suit to the list on payment of all costs, it would have been a perfectly proper order. But the order was made without jurisdiction and was rightly set aside by the High Court.”

    Of course this case is not precisely upon all fours with the one before us. The Subordinate Judge dismissed a suit which he had no jurisdiction to dismiss; which does not necessarily imply that he would have no jurisdiction to dismiss an application for failure to pay batta. But the spirit of the ruling would seem to be that a Court is not justified in depriving a party of the benefits of its decree, on the bare ground that he has failed to comply with some rule of procedure. It cannot be argued that the order of dismissal involves no deprivation, because on the next day the party, assuming that the three years have not elapsed, can put in a fresh application. In the same way it was suggested in the Privy Council case that the dismissal was merely in terrorem, and a petition for restitution would have re-opened the procedings. But this argument did not commend itself to their Lordships presumably because an order which is bad in itself cannot be called good because it is liable to be reversed or negatived. It must be considered on its own merits. Can it be said that if it were passed on the last day before limitation set in it would be bad; but if on the penultimate day, thus giving the party a chance to file a fresh application, it would be good? Obviously not. Therefore for the purpose of the argument it must be assumed that the order of dismissal was final, and the question is whether the Court had any right to make such an order. The Code of Civil Procedure and the rules framed under the Code of Civil Procedure give it no such right in terms. Sect. 151 can only give such right if the Court find that it is necessary to act for the ends of justice or to prevent abuse of its process. As the Judicial Committee points out the ends of justice are not served by depriving a party of the fruits of his decree. If the Court purports to prevent an abuse it must find what the abuse is. Mere failure to comply with R. 24 of the Civil Rules of Practice is hardly in every case an abuse of process, but, if the Court considers that it does amount to an abuse, it must find to that effect. Sect. 151 is not a general clause validating every act of a Court which cannot otherwise be justified. It is a section allowing a Court to exercise its powers in specified circumstances, and it cannot exercise that power until those circumstances are established.

    As against this view it may be said that unless a Court have power of summary dismissal on failure to comply with the mandatory provision of R. 24, that rule becomes of no effect. This does not follow. The order indicated by the Judicial Committee in the passage quoted above is one of adjournment sine die, but such order is deprecated in R. 71, Civil Rules of Practice. If in order to exercise discipline and check neglect and delay a Court thinks it incumbent upon itself to dismiss the application, it should call upon the party to show cause, and then pass a considered order of dismissal.

    It cannot pass an unconsidered order of dismissal leaving it to be inferred, firstly, that there were circumstances which would warrant its acting under Sect. 151, and secondly that it did so act.

    I should find therefore that the dismissal of the application of November, 1921, is not such dismissal as can render that application inoperative and plaintiff is entitled to proceed upon it. I would mulct plaintiff in costs throughout, for, the difficulty has arisen entirely through his own neglect.

    The order of the lower appellate Court is set aside. The execution petition should be disposed of according to law.

    The respondednts will get their costs throughout.

    Srinivasa Aiyangar, J.—I agree to the order proposed by my learned brother that the appeal should be allowed and that the application for ascertainment of profits made by the decree-holder on the 8th of October, 1921, should, for the purpose of such ascertainment, be treated as still subsisting and that the District Munsif's Court should now proceed to determine the mesne profits.

    It seems to me however that the order of the lower appellate Court can be regarded as unsustainable, not on the ground that the last application for the ascertainment of the mesne profits, dated 6th December, 1922, may be regarded as a mere continuation of the previous petition for the same, nor on the ground that the Court has no power to dismiss an application because the batta directed to be paid for the purpose of serving the notice of the application has not been complied with, but on a more fundamental ground altogether.

    It is possible that, in enacting amendment to R. 12 of O. 20 by way of addition of Cl. 3 thereto, the rule-making authority intended that there should be always an application by the decree-holder for the ascertainment of mesne profits where such ascertainment had been directed even by the very Court that has to ascertain it. But I am not satisfied that the language of R. 3 is sufficiently apt for that purpose. That clause itself speaks of a final decree being passed and it is clear that the scheme underlying the provision is that the direction for the order for the payment of mesne profits thereafter to be ascertained is in the nature of a preliminary decree and that the final decree has to be passed on such ascertainment being completed. If so, such a scheme clearly imports and necessarily implies the suit itself being regarded as pending till the final decree is passed. This again would necessarily imply that there can be no final disposal of the suit itself till a final decree comes to be passed in the suit. I consider however that, if it was contemplated that in every case before a Court proceeds to ascertain the mesne profits, there should be an application by the decree-holder, much clearer language for that purpose should have been used. But the rule runs thus:

    “Where the appellate Court directs such an enquiry, it may direct the Court of first instance to make the enquiry; and in every case the Court of first instance shall, on the application of the decree-holder, inquire and pass the final decree.”

    The whole thing is made into one sentence. If really the proper meaning of the latter part of this rule is, as it must be, that the expression “in every case” relates to the case of appellate Court ordering the ascertainment of mesne profits and also the Court of first instance ordering such ascertainment, the latter part should have been constituted into a separate grammatical sentence. The latter part of that rule, as it stands, if it should be regarded as referring to every case, must also be properly held to cover cases in which the appellate Court itself directs an enquiry into the mesne profits to be made by itself. In such a case it seems to me that this part of the rule referring to the Court of first instance would be not only meaningless but wrong. However, without being very meticulous about grammar we should assume that the rule refers only to cases where the duty is cast on the Court of first instance to ascertain mesne profits. When the rule says that the Court of first instance shall, on the application of the decree-holder, enquire and pass the final decree, the language is apt only for the purpose of indicating that on such application being made the obligation is peremptorily cast on the Court of first instance to do so. It is one thing however to say that on a condition being satisfied, a peremptory obligation is cast, and another thing altogether to state that the condition is imperative.

    In my view therefore if the true intention of the rule-making authority was that, in every case where the Court of first instance has to ascertain mesne profits, there should be an application made to it before the decree-holder can be entitled to require such ascertainment to be made, the language should be revised and amended. However, assuming for the purpose of the present argument that such an application is really in the nature of a condition precedent, then it would follow that, on such an application being made within the period of limitation prescribed by the Limitation Act, the condition is satisfied and therefore the obligation is cast. It is possible that such an application was regarded as necessary because in cases in which the appellate Court directs the enquiry to be made by the Court of first instance, such a direction should naturally be required to be brought to the notice of the Court of first instance and that can only be by an application by the decree-holder. But having regard to the scheme otherwise of the provisions when there is a preliminary decree for ascertainment of mesne profits and a final decree has to be passed, there is no reason to suppose that the application should be regarded as if that were the proceeding for the ascertainment of mesne profits. The mesne profits come to be ascertained not because of the application but because of the direction to ascertain the same for the purpose of final decree. According to the proper language of the rule, the making of the application can, if at all, be regarded only as a condition precedent.

    I am therefore of the opinion that on the making of the application the condition laid down in the rule is satisfied and the obligation comes to be cast on the Court of first instance to ascertain the mesne profits and it is then for the Court to proceed to ascertain mesne profits as in the case of any other pending suit. I do not however consider that it is necessary for the purposes of the present case to pursue the discussion of this matter further, as, in the result, I have agreed with my learned brother.

    N. R. R.Appeal allowed.

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    Comments

    Alluri Timmaraju v. Alluri Narasimha Raju
    (Dec 19, 1927)