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Summary of the Opinion — Civil Revision Petition (jurisdictional question)

Factual and Procedural Background

The petitioner had originally obtained an ex parte decree in Section C.S. No. 73 of 1937 before the Subordinate Judge's Court at Tiruvarur. The respondent (the first defendant) applied to set aside that ex parte decree and the Subordinate Judge's Court set the decree aside on 31 August 1937 (on terms not material here). A revision petition was filed against that order, and this Court set aside the Subordinate Judge's order and remitted the proceeding for disposal according to law.

Before the remitted proceeding could be disposed of, the Subordinate Judge's Court of Tiruvarur was abolished with effect from 1 November 1938. By District Court proceedings dated 29 October 1938, the application to set aside the ex parte decree was ordered to be transferred to the District Munsif's Court, Tiruvarur, and the transfer was effected on 31 October 1938. The District Munsif, hearing the application on the original side, held there had been sufficient service of summons and dismissed the application. On appeal to the District Court, that Court reversed the District Munsif and set aside the ex parte decree holding there had been no proper service of summons. The present Civil Revision Petition challenges the District Court's order reversing the District Munsif.

Legal Issues Presented

  1. Whether the District Court's transfer and/or the order of the District Munsif must be regarded as proceedings under Section 24(4) of the Civil Procedure Code (i.e., the District Munsif being deemed a Court of Small Causes), such that the District Munsif's order dismissing the application was final under Section 27 of the Provincial Small Cause Courts Act and not subject to appeal.
  2. Alternatively, whether, even if the District Munsif dealt with the application on the original side of its jurisdiction, an appeal lies against an order refusing to set aside an ex parte decree under Order 43, Rule 1(d) of the Civil Procedure Code (specifically the meaning of the qualifying words "in a case open to appeal").

Arguments of the Parties

Petitioner's Arguments

  • The petitioner contended that the District Court's order transferring the respondent's application must be read as made under Section 24 of the Civil Procedure Code; by virtue of Section 24(4) the District Munsif's Court should be deemed to have dealt with the application as a Court of Small Causes, and therefore the District Munsif's order dismissing the application was final under Section 27 of the Provincial Small Cause Courts Act (i.e., not appealable).
  • Alternatively, the petitioner argued that even if the District Munsif dealt with the application on the original side, Order 43, Rule 1(d) provides an appeal against an order rejecting an application to set aside an ex parte decree only "in a case open to appeal" and, since the decree had been made originally by a Court of Small Causes and was not appealable, the order refusing to set aside that decree was also not appealable under Order 43, Rule 1(d).
  • The petitioner relied on the restrictive reading of "in a case open to appeal" and on authorities supporting the proposition that the character of a small cause suit cannot be changed when dealt with after abolition or transfer.

Respondent's Arguments

The opinion does not contain a detailed account of the respondent's separate legal arguments beyond the procedural positions addressed by the Court.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Chockalingam v. Palaniappa (1932) 63 M.L.J. 689 : I.L.R. 55 Mad. 960 Holds that a District Court may transfer proceedings from a Court of Small Causes to a Court without adequate small cause powers and that, under Section 24, the transferee Court is deemed a Court of Small Causes for the purposes of the suit. Cited to show how Section 24 operates and to frame the distinction between transfers under Section 24 and the position under Section 35 of the Provincial Small Cause Courts Act.
Ramaswami Muthirian v. Arunachalam Chettiar (1935) 69 M.L.J. 443 Observation (by Stone, J.) that a suit "remains what it was when it began" — i.e., Section 35 does not change a small cause suit into an original suit (observations largely obiter in that case). The petitioner relied on these observations; the Court treated them as largely obiter, distinguished them on the facts, and found no statutory warrant for the broad proposition urged.
Kollipara Seethapathy v. Kantipati Subbayya (1909) 20 M.L.J. 718 : I.L.R. 33 Mad. 323 (F.B.) Full Bench holding that where the District Munsif who tried the suit had jurisdiction to try it as a small cause, the Court must be regarded as having tried it as a Court of Small Causes. Distinguished by the Court because that case did not arise under Section 35; used to show limits of earlier authority which depended on the transferee Court's small cause jurisdiction.
Gopalakrishna Naicker v. Madhavanayaki Ammal (1937) 1 M.L.J. 14 : 44 L.W. 874 Decision where the Court that ultimately tried the suit had jurisdiction to try it as a small cause suit. Distinguished for the same reason as Kollipara — not a case under Section 35 and therefore not supporting the petitioner's broad contention.
Bhagwati Pande v. Badri Pande (1931) I.L.R. 54 All. 171 (F.B.) Full Bench held that a suit instituted as a small cause suit, if tried as an original suit under the circumstances of Section 35 (where no other Judge in the local area has adequate small cause powers), should be regarded as an original suit and the decree passed would be appealable. The Court expressly agreed with this Full Bench view and relied on it to hold that Section 27 did not bar an appeal in the circumstances of the present case.
Hira Lai v. Jhunni Lal (1922) 20 A.L.J. 208 Single-judge decision supporting a restricted interpretation of the words "in a case open to appeal" in Order 43, Rule 1(d). Cited by the petitioner for the restrictive reading; the Court rejected the restricted interpretation in favor of broader authority.
Selvarayan Samson v. Amalorpavanadham (1927) 55 M.L.J. 262 Bench decision rejecting the restricted interpretation of "a case open to appeal" and holding that the phrase need not be construed only with reference to the decree sought to be set aside. Relied upon by the Court to support a broader interpretation of Order 43, Rule 1(d) and to hold that an appeal lay against the order refusing to set aside the ex parte decree.
Mahendra Chandra Datta Roy v. Basir Uddin I.L.R. (1937) 1 Cal. 135 Approved and followed the view that the phrase "a case open to appeal" is not restricted only to the decree itself. Cited to reinforce the Court's interpretation that an appeal lay under Order 43, Rule 1(d) in the circumstances before it.

Court's Reasoning and Analysis

The Court commenced by identifying two distinct statutory mechanisms relevant to the transfer or continuance of proceedings when a Small Causes Court ceases to have jurisdiction: (a) Section 24 of the Civil Procedure Code (which authorises transfer by the High Court or District Court and includes subsection (4) deeming a transferee Court to be a Court of Small Causes for the purposes of the suit), and (b) Section 35 of the Provincial Small Cause Courts Act (which provides that when a Small Cause Court ceases to have jurisdiction proceedings may be had in the Court which would have jurisdiction to try the suit if it were instituted at that time).

The Court analysed the language and effect of Section 35 and emphasised that Section 35 does not say the Court which is empowered to hear the proceeding must have jurisdiction to try the suit as a Court of Small Causes; it is sufficient that the Court have jurisdiction to try the suit in some character. On the facts, the District Munsif's Court would be the Court that could try the suit if it were instituted at the relevant time, but only on its original side because its small cause jurisdiction was limited.

Applying these provisions, the Court concluded the District Munsif dealt with the respondent's application under Section 35 and therefore in the exercise of its original civil jurisdiction — not as a Court of Small Causes pursuant to Section 24(4). The Court treated the District Court's order of transfer as an administrative direction facilitating the transmission of records rather than an operative transfer under Section 24 which would invoke subsection (4).

The Court next considered authorities relied upon by the petitioner (including the observations of Stone, J., in Ramaswami Muthirian) and distinguished cases where the transferee Court in fact had adequate small cause jurisdiction. The Court accepted the Full Bench view in Bhagwati Pande v. Badri Pande that when a suit instituted as a small cause is tried as an original suit under the circumstances of Section 35, it should be regarded as an original suit and the decree is appealable. On that basis the Court held Section 27 did not bar an appeal in the present circumstances.

Finally, turning to Order 43, Rule 1(d), the Court rejected the petitioner's restricted reading of the qualifying words "in a case open to appeal" (i.e., that those words must be read only with reference to the decree being appealable in its original form). The Court relied on Selvarayan Samson and Mahendra Chandra Datta Roy to hold that the phrase is not necessarily restricted to the decree itself and that once the proceeding was taken up by the District Munsif on the original side it became a case open to appeal (for example, because a fresh decree after re-trial would have been appealable).

Holding and Implications

Holding: The Court held that the appeal to the Court below was competent. The Court therefore DISMISSED the Civil Revision Petition with costs.

Direct implications for the parties:

  • The District Munsif's order refusing to set aside the ex parte decree must be regarded as an order passed in the exercise of the District Munsif's original civil jurisdiction (under Section 35 of the Provincial Small Cause Courts Act), not as an order by a Court of Small Causes under Section 24(4) of the Civil Procedure Code.
  • Section 27 of the Provincial Small Cause Courts Act did not bar an appeal from the District Munsif's order in the circumstances of this case.
  • Order 43, Rule 1(d) of the Civil Procedure Code permitted an appeal against the order refusing to set aside the ex parte decree in this instance (the Court rejected the petitioner's restricted interpretation of "in a case open to appeal").

Broader implications: The opinion explains the legal distinction between transfers under Section 24(4) of the Civil Procedure Code and the operation of Section 35 of the Provincial Small Cause Courts Act, and applies Full Bench authority to hold that proceedings continued under Section 35 may be treated as original suits for appealability purposes. The opinion does not state that it is creating a novel precedent beyond its reasoning and application to these facts.

    Kamalathammal v. Harihara Ayyar

    1. This revision petition raises a question of jurisdiction on which there has been considerable divergence of judicial opinion.

    2. The facts may be briefly stated. The petitioner obtained an ex parte decree in Section C.S. No. 73 of 1937 on the file of the Subordinate Judge's Court of Tiruvarur. The respondent who was the first defendant in the case applied to the Court to set aside the ex parte decree which was set aside on 31st August, 1937, on certain terms which are not material for the purpose of this petition. A revision petition was filed against that order and this Court set it aside and remitted the proceeding for disposal according to law. Before, however, it could be disposed of, the Court of the Subordinate Judge of Tiruvarur was abolished with effect from 1st November, 1938, and by the District Court's proceedings dated 29th October, 1938, the application to set aside the e% parte decree was ordered to be transferred from the Subordinate Judge's Court to the District Munsif's Court, Tiruvarur, and the transfer was accordingly made by the Subordinate; Judge on 31st October, 1938. The District Munsif dealing with the application in due course, held that there was sufficient service of the summons in the suit on the respondent and there was no sufficient cause for his non-appearance on the date of the hearing of the suit and dismissed the application. It may be mentioned here that the small cause jurisdiction of the District Munsif's Court, Tiruvarur, was so limited that it could not have entertained on the small cause side the suit out of which these proceedings arose if such suit were then about to be instituted. On appeal to the District Court, that Court reversed the decision of the District Munsif and set aside the ex parte decree holding that there was no proper service of summons in the suit. This Civil Revision Petition has been preferred against that order.

    3. The main contention for the petitioner before me was that the appeal to the lower Court was incompetent and its order purporting to set aside the ex parte decree was made1' without jurisdiction. This contention was based on two grounds: Firstly, the order of the District Court transferring the respondent's application t6 set aside the ex parte decree from the Subordinate Judge's Court of Tiruvarur where it had been pending after remand by this Court to the Court of the District Munsif of the same place must be taken to have been made under Section 24 of the Civil Procedure Code and by virtue of Sub-section (4) of that section, the District Munsif's Court must be deemed to have dealt with the application as a Court of Small Causes. Therefore, it was said, the order dismissing the application was final under Section 27 of the Provincial Small Cause Courts Act and no appeal lay against such order. Secondly and alternatively, even assuming that the District Munsif's 'Court dealt with the application and made the order on the original side of its jurisdiction, Order 43, Rule 1(d), Civil Procedure Code, provided an appeal against an order rejecting an application to set aside an ex parte decree only "in a case open to appeal" and the decree in this case having admittedly been made by the Subordinate Judge's Court, Tiruvarur, as a Court of Small Causes, it was not a case open to appeal within the meaning of Order 43, Rule 1(d) and no appeal was admissible. Several decisions were cited in the course of arguments on either side but before considering them, I will briefly refer to the relevant statutory provisions bearing on this question. Section 16 of the Provincial Small Cause Courts Act provides that a suit cognizable by a Court of Small Causes shall not be tried by any other Court having jurisdiction within the local limits of the jurisdiction of the Court of Small Causes by which the suit is triable. Section 35(1) provides that:

    Where a Court of Small Causes or a Court invested with the jurisdiction of a Court of Small Causes, has from any cause ceased to have jurisdiction with respect to any case, any proceeding in relation to the case, whether before or after decree, which, if the Court had not ceased to have jurisdiction, might have been had therein, may be had in the Court which, if the suit out of which the proceeding has arisen were about to be instituted, would have jurisdiction to try the suit.

    4. It will be observed that this section does not say that the Court which is empowered thereunder to entertain proceedings owing to a Small Cause Court ceasing to have jurisdiction with reference to the case, should have jurisdiction to try the suit as a Court of Small Causes. It is sufficient if it has jurisdiction to try the suit. It is not disputed that the District Munsif's Court, Tiruvarur, would be the Court having jurisdiction to try the suit out of which these proceedings have arisen, if ihat suit were to be instituted at the time when the application to set aside the ex parte decree was transferred to it, as no other Court had jurisdiction to try it as a Court of Small Causes within the same local limits. The District Munsif's Court, however, was competent to entertain the suit only on its original side, owing to the limitation placed on its small cause powers. Section 24, Civil Procedure Code, empowers the High Court or the District Court to transfer any suit, appeal or other proceeding pending in any Court subordinate to it to any other Court subordinate to it and competent to try or dispose of the same and it is provided in Sub-Section (4) that:

    The Court trying any suit transferred or withdrawn under this section from a Court of Small Causes shall, for the purposes of such suit, be deemed to be a Court of Small Causes.

    5. The section makes it clear - and it has also been decided (vide Chockalingam v. Palaniappa (1932) 63 M.L.J. 689 : I.L.R. 55 Mad. 960) that a District Court may transfer any proceeding from a Court of Small Causes to a Court not having adequate small cause powers to deal with it as a Court of Small Causes. But, nevertheless, the latter Court shall be deemed to be a Court of Small Causes for the purposes of the suit transferred. While, therefore, both under Section 24, Civil Procedure Code and Section 35 of the Provincial Small Cause Courts Act, a Court not invested with adequate small cause powers may properly try a suit which was originally instituted as a small cause suit in a different Court, there is a marked distinction in the character in which it is empowered to-deal with such suit. Under Section 24, Civil Procedure Code, such Court tries the suit as a Court of Small Causes while under the latter provision, it tries the suit in whatsoever character it has-jurisdiction to try it. Now, the question arises: when a District Court purports to transfer a suit or a proceeding from a Small Cause Court which is about to be abolished to a Court which is empowered under Section 35 of the Provincial Small Cause Courts Act even without such transfer, to deal with it, is the decree or order passed by the latter Court to be regarded as one passed by a Court of Small Causes or by a Court exercising original civil jurisdiction? The answer to this question is of considerable practical importance to the parties concerned as on such answer depends their right of appeal.

    6. On a consideration of the provisions referred to above, it appears to me that the order of the District Munsif's Court,. Tiruvarur, refusing to set aside the ex parte decree must be regarded as an order passed by the Court in the exercise of its. original civil jurisdiction. Under Section 35 of the Provincial Small Cause Courts Act, the respondent was entitled to have his application for setting aside the ex parte decree, which was pending in the Subordinate Judge's Court, taken up and disposed of by the District Munsif's Court aforesaid, and that Court dealt with it and could only deal with it, on the original side of its jurisdiction. As already observed, this section does not require that the Court dealing with a proceeding thereunder should be competent to deal with it as a Small Cause Court; nor dots it provide that such Court shall be deemed to be a Court of Small Causes. It is therefore difficult to see how the position could be altered by the District Court purporting to transfer the respondent's application to the same District Munsif's Court. As already indicated, no order of transfer was necessary to enable the latter Court to deal with the respondent's application and the order passed by the District Court must, in the circumstances, be regarded as in the nature of an administrative direction issued to facilitate the transmission of the records of the proceeding, and not as an order under Section 24, bringing Sub-section (4) of that section into operation.

    7. The petitioner argued broadly that the suit having been originally instituted as a small cause suit in a Court having jurisdiction to try it as such, the character of the suit could not be changed though it was subsequently dealt with under Section 35 by another Court as an original suit owing to want of adequate small cause powers. This contention is supported by the observations of Stone, J., in Ramaswami Muthirian v. Arunachalam Chettiar (1935) 69 M.L.J. 443. These observations were however largely obiter, as in that case the Court which finally disposed of the suit was competent to try it as a small cause suit and must be deemed to have dealt with it as such, as it could not have dealt with it otherwise having regard to Section 16 of the Act. No doubt the view adumbrated by the learned Judge, namely, the suit remains what it was when it began has the merit of simplicity but I am unable to find any warrant for it in the relevant statutory provisions., The learned Judge observes:

    Now it was urged that Section 35 of the Provincial Small Cause Courts Act operates to change in some way a small cause suit into an original suit. In my opinion, it does nothing of the sort. What Section 35 does is to invest, a Court which otherwise would be incompetent to bear any, or certain, small cause suits, with power to hear certain of such suits, namely, those pending in that Court at the time that Court's jurisdiction is changed.

    8. This is not entirely correct, as Section 35 provides not only for the continuance of pending proceedings in the same Court when that Court's jurisdiction is changed, but also for their continuance in a different Court on the abolition of the original Court. Apart from this, if, as the learned Judge thinks, there is nothing in Section 35 to turn a small cause suit into an original suit, it is difficult to see anything in it to turn a Civil Court into a Court of Small Causes, so as to attract the application of Section 27 barring appeals in respect of a decree or order made by a Court "of Small Causes. It is significant that Section 35 contains no provision similar to Section 24 (4), Civil Procedure Code. ' It seems to me that the rule laid down by the learned Judge would be an unwarranted extension of the latter provision to cases falling under Section 35, and is not supported by the authorities referred to by him. In the Full Bench case in Kollipara Seethapathy v. Kantipati Subbayya (1909) 20 M.L.J. 718 : I.L.R. 33 Mad. 323 (F.B.), it appears that the District Munsif who tried the suit on the original side had jurisdiction to try it as a small cause suit and it was held that the Court must be regarded as having tried it as a Court of Small Causes. The case was not one under Section 35 and it does not support the wide proposition laid down by the learned Judge. The decision of Cornish, J., in Gopalakrishna Naicker v. Madhavanayaki Ammal (1937) 1 M.L.J. 14 : 44 L.W. 874, is also distinguishable on the same ground, namely, that the Court which ultimately tried the suit had jurisdiction to try it as a small cause suit. Though the learned Judge referred to the decision of Stone, J., in Ramaswami Muthirian v. Arunachalam Chettiar (1935) 69 M.L.J. 443, it is evident that he did not rely upon the wide general observations contained in that case as he referred to the Full Bench decision in Bhagwati Pande v. Badri Pande (1931) I.L.R. 54 All. 171 (F.B.), as not being inconsistent with Ramaswami Muthirian v. Arunachalam Chettiar (1935) 69 M.L.J. 443. This Full Bench held that a suit instituted as a small cause suit, if tried as an original suit in the circumstances mentioned in Section 35 when there was no other Judge in the local areas with adequate small cause powers to try it as a small cause suit, should be regarded as an original suit, and the decree passed in it would be appealable. I respectfully agree with this view and hold that Section 27 of, the Provincial Small Cause Courts Act does not operate in the circumstances of the case to bar any appeal from the order of the District Munsif's Court, Tiruvarur, refusing to set aside the ex parte decree in question.

    9. The question next arises whether an appeal lies from the said order under Order 43, Rule (1)(d). The petitioner contends that the qualifying words "in a case open to appeal" should be understood as referring to the appealability of the decree which is sought to be set aside and as in this case, the decree which was originally passed by a Court of Small Causes, was not appealable, the order refusing to set it aside was also not appealable under this clause. This contention is supported by the decision of a single Judge reported in Hira Lai v. Jhunni Lal (1922) 20 A.L.J. 208, but a Bench of this Court in Selvarayan Samson v. Amalorpavanadham (1927) 55 M.L.J. 262 was not inclined to accept that restricted interpretation of those words. The question was whether an appeal lay against an order refusing to set aside an ex parte decree passed on an application filed under para. 20 of Schedule II of the Civil Procedure Code and registered as a suit. It was argued that no appeal lay as it was not a "case open to appeal" as the decree passed was not in excess of the award and therefore not appealable. The learned Judges observed:

    It cannot be said that the words 'a case open to appeal' should be necessarily construed only with reference to the decree and to no other order.

    10. They held that an appeal lay because there was an order filing the award and an appeal could have been filed against it. This view was approved and followed in Mahendra Chandra Datta Roy v. Basir Uddin I.L.R. (1937) 1 Cal. 135. It seems to me that when the pro, ceeding was taken up by the District Munsif of Tiruvarur on the original side of his jurisdiction, it must be deemed thereafter to be a case open to appeal, as, if the District Munsif had set aside the ex parte decree and passed a fresh decree after re-trial, such decree would have been appealable, in the view I have taken on the first point. If the restricted interpretation contended for by the petitioner must be rejected as untenable, there seems to be no reason why the general words should not be held to include a case of the kind now before me.

    11. For these reasons, I hold that the appeal to the Court below was competent and dismiss this Civil Revision Petition with costs.

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    Kamalathammal v. Harihara Ayyar
    (Aug 30, 1940)