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citation codes
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  • 5 I.C. 742 (under Small Cause Courts Act)
  • Order 23, Rule 1, Civil P.C.
  • Order 43, Rule 1, Civil P.C.
  • Order 23, Rule 1
  • Order 23, Rule
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Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
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Acts
  • 5 I.C. 742 (under Small Cause Courts Act)
  • Order 23, Rule 1, Civil P.C.
  • Order 43, Rule 1, Civil P.C.
  • Order 23, Rule 1
  • Order 23, Rule
Smart Summary

Summary of Opinion — Civil Revision arising from O.S. No. 855 of 1926

Factual and Procedural Background

This opinion arises from a civil revision petition filed by the plaintiffs in O.S. No. 855 of 1926 (District Munsif, Chidambaram). The plaintiffs sought a declaration that a mortgage bond executed by them on 3 February 1926 in favour of defendant 1 for Rs. 800 was not supported by consideration to the extent of Rs. 575 allegedly advanced in cash at the time of the mortgage. The remainder, Rs. 225, was described in the mortgage deed as due to a prior mortgage which defendant 1 undertook to discharge.

The contesting defendant admitted non-payment to the extent of Rs. 275 out of the Rs. 575 but denied non-payment as to the remaining Rs. 300, asserting that the mortgage was supported by consideration. Issues were framed and the case was repeatedly adjourned. A related suit, O.S. No. 818 of 1926, addressed the question of payment of Rs. 300; after its disposal an additional issue (Issue 9) was framed in Suit No. 855 asking whether the plaintiffs could contend that Rs. 300 had not been paid in view of the decision in O.S. No. 818.

Ultimately the plaintiffs applied to the District Munsif for leave to withdraw the suit with liberty to file a fresh suit under Order 23, Rule 1. The District Munsif on 5 November 1927 allowed withdrawal with liberty to sue again and, as to costs, ordered: "under the circumstances of the case no order as to costs." Defendant 1 appealed to the District Court, South Arcot, solely challenging the costs portion of the order. The District Judge held that plaintiffs had no sufficient reason to withdraw at that stage but, since defendant 1 did not challenge the grant of liberty to sue again, modified the order by directing that plaintiffs pay defendant 1's costs within a month. The plaintiffs then filed the civil revision petition now under consideration challenging the District Judge's order.

Legal Issues Presented

  1. Whether an appeal lay to the lower appellate Court (District Court) against the District Munsif's order allowing withdrawal under Order 23, Rule 1, Civil P.C. — specifically whether the costs portion of such an order is appealable when no appeal is provided from the order on the merits.
  2. Whether the District Munsif's decision to make "no order as to costs" upon allowing withdrawal with liberty to sue again was sustainable in the circumstances of this case.
  3. What remedial steps the High Court in revision should take when a lower appellate Court entertains an appeal in a matter in which no appeal lay but the appellate Court's decision produced a just outcome as to costs.

Arguments of the Parties

Petitioners' (Plaintiffs') Arguments

  • The learned advocate for the petitioners contended that no appeal lay to the lower appellate Court against an order passed under Order 23, Rule 1, Civil P.C. because such an order is not a decree and an appeal exists only where expressly provided (e.g., under Section 104 or under Order 43, Rule 1).
  • On that basis the appeal to the lower appellate Court was said to be incompetent and the resulting order should be reversed for want of jurisdiction.

Respondent's (Defendant 1) Arguments

  • The learned advocate for defendant 1 agreed (conceded) that no appeal lay to the lower appellate Court. Independently, defendant 1 argued that the trial Court (District Munsif) erred in not awarding him costs as a condition of granting the plaintiffs liberty to withdraw and sue again.
  • Defendant 1's position before the District Judge was that the plaintiffs should be directed to pay his costs incurred in the now-withdrawn proceedings.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Balkissen Doss v. Lachmeeput Singh [1882] 8 Cal. 91 Principle that an appeal lies against the direction as to costs only when the order itself is appealable as affecting jurisdiction or the merits of the case. Quoted and relied upon to explain that no appeal lies against costs when no appeal lies from the order on the merits; supports petitioners' technical contention that the lower appellate Court had no jurisdiction.
Vasudeo Ramchandra v. Bhavan Jivraj [1892] 16 Bom. 241 Followed the reasoning in Balkissen Doss regarding the scope of appeals as to costs. Noted as following the cited reasoning; observed to be relevant though it did not raise the exact point before the Court.
Shib Kumar v. Sheo Ghulam, A.I.R. 1922 All. 90 Followed the reasoning that costs direction is appealable only where the order itself is appealable. Mentioned as a supporting authority though it did not raise precisely the same question as the present case.
Mulambath Kunhammad v. Parkat Kathusi Kutti [1917] 38 I.C. 373 Discusses what the High Court would do when a lower appellate Court entertains an appeal improperly. Relied on to frame the High Court's approach to regularising proceedings where a lower appellate Court acted without jurisdiction but produced a just result as to costs.
Chengalraya Chetti v. Raghava Ramanuja Dass [1910] 52 I.C. 569 Same thematic use as Mulambath: how High Court should treat proceedings when lower appellate Court entertains an improper appeal. Used as part of the authorities justifying the High Court's revisionary intervention to regularize proceedings.
Andrew Anthony v. Dupant [1882] 4 Mad. 217 Authority that the High Court can interfere under section 622 of the Code without an application by a party to the suit. Quoted to support the proposition that the High Court may exercise revisionary powers even where no party has applied for such interference.
Batcha Saheb v. Abdul Gany, A.I.R. 1914 Mad. 675; Bai Kanta Nath v. Sita Nath [1911] 38 Cal. 421; Fisher v. Kanakasabapathy [1910] 5 I.C. 742; Debi Das v. Ejaz Hussain [1905] 28 All. 72; Puran Mal v. Janaki Pershad Singh [1901] 28 Cal. 680 Instances cited to illustrate the High Court's power to interfere in revision under the relevant statutory provision(s). Grouped and cited as additional supporting authorities for the High Court's jurisdiction to act in revision without a party's application.

Court's Reasoning and Analysis

The Court proceeded in stages, adhering closely to the authorities cited in the text:

  1. Jurisdictional question: The Court accepted the petitioners' technical contention (and the concession of the respondent's counsel) that no appeal lay to the lower appellate Court from the District Munsif's order under Order 23, Rule 1, Civil P.C., because such an order is not a decree and no provision (e.g., Section 104 or Order 43, Rule 1) permitted an appeal from that order. The Court relied on the principle from Balkissen Doss v. Lachmeeput Singh that an appeal against costs lies only where the order itself is appealable.
  2. Merits of the costs order: Separately, on the merits, the Court found the District Munsif's rationale for making "no order as to costs" unsustainable. The Court reasoned that ordinarily when plaintiffs are granted the indulgence of withdrawing with liberty to sue again, and they have caused the defendant to incur time and expense in proceedings later acknowledged to be unnecessary, it is prima facie appropriate to require the plaintiffs to pay the defendant's costs unless special circumstances justify a different order. The Court examined the record and, after discussion with counsel, found no reason to deprive defendant 1 of costs.
  3. Effect of the lower appellate Court's intervention: The Court noted that the lower appellate Court entertained an appeal in a matter where no appeal lay — an error of jurisdiction. However, the appellate Court's order remedied the substantive defect in the District Munsif's costs ruling by directing payment of defendant 1's costs. The High Court considered authorities (Mulambath and Chengalraya) addressing what a High Court should do when an appellate Court acts without jurisdiction but reaches a just outcome on the merits.
  4. Appropriate High Court action in revision: The High Court concluded it should quash the lower appellate Court's order insofar as it was made by a Court lacking jurisdiction, but "regularize" the overall proceedings by exercising its revisionary powers directly against the District Munsif's order dated 5 November 1927. The Court invoked its power to interfere under the relevant statutory provision (section 622 as discussed in the authorities) without requiring an application by the parties.
  5. Relief fashioned: The Court modified the District Munsif's order by adding a proviso requiring the plaintiffs to pay defendant 1's costs incurred in the trial Court within two weeks after the re-opening of the District Munsif's Court of Chidambaram; failure to comply would result in O.S. No. 855 of 1926 standing dismissed with costs.
  6. Incidental costs questions: The Court held that defendant 1, having preferred an appeal to a forum in which no appeal lay (i.e., acting ultra vires), should not recover costs for that appeal; therefore defendant 1 was denied costs of the proceedings in the lower appellate Court. As to costs of the present civil revision petition, the Court noted the petitioners were technically correct on the jurisdictional point but defendant 1 had succeeded on the merits regarding costs; accordingly the Court directed that each party bear their own costs in the High Court.

Holding and Implications

Core Ruling: The High Court quashed the lower appellate Court's order insofar as it was made in a matter where no appeal lay, and MODIFIED the District Munsif's order dated 5 November 1927 by adding a proviso requiring the plaintiffs to pay defendant 1's costs incurred in the trial Court within two weeks after the re-opening of the District Munsif's Court; failure to pay would result in dismissal of O.S. No. 855 of 1926 with costs.

Specific consequential directions given by the Court:

  • Defendant 1 shall not be awarded costs of the appeal to the lower appellate Court (those proceedings were ultra vires and therefore no costs are recoverable for them).
  • Each party shall bear their own costs of the civil revision petition in the High Court.

Implications: The decision directly affects the parties by (a) imposing a conditional costs liability on the plaintiffs (payment of defendant 1's trial-court costs within a specified time, failing which the suit will be dismissed with costs), (b) denying defendant 1 appellate costs for pursuing an appeal in a matter in which no appeal lay, and (c) directing that each party bear their own costs in the High Court. The opinion does not purport to create a new legal precedent beyond application of established authorities on the appealability of costs directions and the High Court's revisionary jurisdiction.

    Somasundaram Pillai v. Muthumanicka Nadar

    1. This is a civil revision petition filed by the plaintiffs in O.S. No. 855 of 1926 on the file of the District Munsif of Chidambaram. They filed the suit against the defendants for a declaration that the mortgage bond executed by the plaintiffs on 3rd February 1926 in favour of defendant 1 for Rs. 800 was not supported by consideration to the extent of Rs. 575 alleged to have been advanced in cash at the time of the mortgage, the remaining Rs. 225 being the amount mentioned in the mortgage deed as due to a prior mortgage which defendant 1 (mortgagee) undertook to discharge himself. The plea of the contesting defendant was that out of Rs. 575 mentioned in the plaint, he did not make payment to the extent of Rs. 275 and to that extent want of consideration was admitted. But in respect of the remaining amount of Rs. 300, the defendants pleaded that the plaintiffs' case was false and that the mortgage was supported by consideration. Issues were framed, and the case was adjourned for trial from time to time. In the meantime, another suit O.S. No. 818 of 1926 on the file of the same Court raised the question as regards the payment of Rs. 300 out of the Rs. 575 which was really the matter in dispute in O.S. No. 855. After the disposal of the Suit No. 818 of 1926, the following additional issue 9 was framed in Suit No. 855 of 1926:

    Is it open to plaintiffs to contend that Rs. 300 have not been paid by defendant 1 to defendant 2 and that it is not binding on them in view of the decision in O.S. No. 818 of 1926 on the file of this Court.

    2. The case was adjourned from time to time, even after the decision in O.S. No. 818 of 1926 was passed and after the additional issue was framed. Finally the plaintiffs applied to the District Munsif for leave to withdraw the suit with liberty to file a fresh suit in respect of the same subject-matter, Under Order 23, Rule 1. It would appear that the contesting defendant did not raise any objection to the plaintiffs' prayer to withdraw the suit being allowed. That probably is the reason why the order passed by the learned District Munsif on 5th November 1927 allowing the plaintiffs to withdraw the suit with liberty to sue again does not contain details as regards the nature of the defect, etc., which necessitated such an application by the plaintiffs. The District Munsif by the order of that date gave the plaintiffs liberty to withdraw the suit with liberty to sue again. As regards costs with which alone we are now concerned, this is the order passed by the District Munsif, "under the circumstances of the case no order as to costs." The mortgagee, defendant 1, felt aggrieved by that order in so far as it did not allow him costs. He therefore preferred an appeal to the District Court, South Arcot, against the order passed by the learned District Munsif regarding costs. On appeal the learned District Judge came to the conclusion that the plaintiffs really had no sufficient reason for being allowed to withdraw the suit at that stage with liberty to sue again. But as defendant 1 did not challenge the order of the lower Court in so far as leave to file a fresh suit was concerned, but was content to attack it only insofar as it did not award him (defendant l), costs, the learned District Judge held that the first Court was in error in not awarding costs to defendant 1 in the case. He accordingly modified the order passed by the District Munsif and directed that the order allowing withdrawal of the suit etc., will be subject to the plaintiffs' paying defendant 1's costs within a month from the date of the District Judge's order. The plaintiffs have preferred this civil revision petition against the District Judge's order.

    3. The first point raised before me by the learned advocate for the petitioners was that no appeal lay to the lower appellate Court against the order passed by the District Munsif Under Order 23, Rule 1, Civil P.C. He argued that the order passed Under Order 23, Rule 1 is not a decree and that an appeal would lie against an order only if the same had been specifically provided for either Under Section 104 or Under Order 43, Rule 1, Civil P.C. Seeing that no provision is made for an appeal from such an order as the one passed by the District Munsif in the present case the learned advocate argued that an appeal to the lower appellate Court was incompetent and that the lower appellate Court's order should be reversed on that ground. The learned advocate for defendant 1 respondent agreed with the learned advocate for the petitioners, (and I think quite properly), that no appeal lay in such a case. It is clear that no appeal would lie against a decision relating to costs only when no appeal will lie from the order passed on the merits in the proceedings in relation to which the question of costs arises. When no appeal is provided for, from an order on the merits no appeal will lie against that portion of the order which related to the award of costs only. The question was discussed by Sir Richard Garth, C. J. and Wilson, J., in a very early case reported as Balkissen Doss v. Lachmeeput Singh [1882] 8 Cal. 91. The learned Judge observed as follows:

    If an order is itself appealable as affecting the jurisdiction of the Court or the merits of the case, an appeal will lie from that part of the order which relates to costs; but, as in the case of decrees, in those cases and those cases only whore the order is appealable, will an appeal lie against the direction as to costs, which is ancillary to the order.

    4. The reasoning of that judgment was followed by the Bombay High Court in the case reported as Vasudeo Ramchandra v. Bhavan Jivraj [1892] 16 Bom. 241 and by the Allahabad High Court in Shib Kumar v. Sheo Ghulam A.I.R. 1922 All. 90, though those cases did not themselves raise the exact point I have to decide here. But the learned advocate for the respondent argued that the trial Court was in this particular case in error in not having awarded the costs of defendant 1 as a condition precedent to the plaintiffs being allowed to withdraw the suit with liberty to file a fresh suit. Turning to the District Munsif's order, as I already remarked, the only reason given why the plaintiffs should have that indulgence granted to them at that stage of the litigation was that under the circumstances no order as to costs will be made." I think the order of the learned District Munsif is unsustainable. A defendant who had been dragged into Court and made to spend money and time in taking part in proceedings which the plaintiffs subsequently admit to be unnecessary, and in respect of which the plaintiffs ask for liberty to file a fresh suit, should ordinarily be allowed his costs and the plaintiff should be directed to pay costs which were incurred by the defendant owing to the plaintiffs useless litigation. There may be circumstances in which a Court might pass a different order as to costs; but ordinarily, an order giving an indulgence to the plaintiff Under Order 23, Rule 1, should prima facie and in the absence of special circumstances, make it a condition that the plaintiff should pay the defendant's costs. I was anxious to see whether there was in fact any reason available in this case why defendant 1 should be deprived of his costs, and after discussion with both the learned advocates who appeared before me, I was unable to discover any reason whatsoever.

    5. Now the position comes to this. The learned District Munsif passed an order with reference to costs which, as I have said, is, in the circumstances, clearly unsustainable, The lower appellate Court entertained an appeal on a matter in which an appeal did not lie to it. But the result of the lower appellate Court's order is to bring about a just order as to costs, and implement the first Court's order in that respect. What the High Court would do in such circumstances is discussed in Mulambath Kunhammad v. Parkat Kathusi Kutti [1917] 38 I.C. 373 and Chengalraya Chetti v. Raghava Ramanuja Dass [1910] 52 I.C. 569. Now the question arises what is my duty sitting here as a Court of revision, in these circumstances. As already remarked, the plaintiffs petitioners before me are technically right in their contention that no appeal lay to the lower appellate Court and it is therefore proper that I should quash the lower appellate Court's order directing the plaintiffs to pay the costs of defendant 1 the appellant, in that Court; but in so far as the defect in the order of the District Munsif was remedied by the lower appellate Court, I think that I must regularize the whole proceedings by my exercising my powers of revision directly against the order passed by the learned District Munsif on 5th November 1927. It is clear the High Court is entitled--Jin a proper case--to interfere in revision even without an application to it by the party interested. That was made clear is early as Andrew Anthony v. Dupant [1882] 4 Mad. 217 in a decision passed by Sir Charles Turner, C. J. and Kindersley, J. The learned Judges observed as follows:

    The High Court can interfere Under section 622 of the code without an application made to it by a party to the suit: see also Batcha Saheb v. Abdul Gany A.I.R. 1914 Mad. 675; Bai Kanta Nath v. Sita Nath [1911] 38 Cal. 421 and Fisher v, Kanakasabapathy [1910] 5 I.C. 742 (under Small Cause Courts Act) Debi Das v. Ejaz Hussain [1905] 28 All. 72 and Puran Mal v. Janaki Pershad Singh [1901] 28 Cal. 680.

    6. Having regard to the proceedings of the learned District Munsif dated 5th November 1927, and having heard the parties interested in the matter, I direct that that order be modified by adding a proviso to the following effect; (in lieu of the order as to costs contained therein):

    Provided the plaintiffs pay defendant 1's costs incurred in the trial Court within two weeks after the re-opening of the District Munsifs Court of Chidambaram. On failure by the plaintiffs to comply with this order, O.S. No. 855 of 1926 will stand dismissed with costs.

    7. Now there is the incidental question relating to costs of the lower appellate Court and costs of the civil revision petition. As I remarked already, defendant 1 who preferred an appeal to the lower appellate Court in a matter in which no appeal lay to it; should not be given his costs of those proceedings which are ultra vires. I therefore direct that defendant 1 should not have any costs of his appeal to the lower appellate Court. In fact I have reversed the order passed by the tower appellate Court on the ground that no appeal lay to it, and with the reversal of that order, the direction which it contains relating to costs also goes. As regards costs of the civil revision petition, though I think the plaintiffs were technically right in their contention that no appeal lay to the lower appellate Court, defendant 1 had succeeded on the merits on the question of costs. In the circumstances I think the proper order should be to direct each party to bear his own costs in the High Court.

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    Comments

    Somasundaram Pillai v. Muthumanicka Nadar
    (May 12, 1932)