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Laguduva S. Krishnaswami Iyer Petitioner. v. Sankarappa Naidu .

Madras High Court
Oct 4, 1934
Smart Summary (Beta)

Factual and Procedural Background

The petitioner was a joint decree-holder in a suit; the respondent was the judgment-debtor. Following an order in execution dated 21 October 1932, the judgment-debtor filed an appeal (A. S. No. 191 of 1932) in time but omitted the petitioner from the appeal. On 1 November 1933, during the course of that appeal, the appellant filed two interlocutory applications: I.A. No. 425 of 1933 asking to add the petitioner as a respondent, and I.A. No. 426 of 1933 seeking permission under S. 5 of the Limitation Act to excuse delay in preferring the appeal against the petitioner (the appeal was out of time as to him). The lower appellate Court granted both applications. There is no revision against the order on I.A. No. 426 and that order has become final. The present petition challenges the order on I.A. No. 425 that permitted the petitioner to be added as a respondent.

Legal Issues Presented

  1. Whether the lower appellate Court had jurisdiction under Order 41, Rule 20 of the Code of Civil Procedure to implead the petitioner as a respondent when, at the time the application to add him was presented, the appeal had already abated as against him and he was therefore not "interested in the result of the appeal."
  2. Whether an extension of time under Section 5 of the Limitation Act (granted subsequently) could be treated as making the petitioner deemed impleaded at the time when the appeal was originally filed (including relevance of Section 22 of the Limitation Act).
  3. Whether the appellate Court could, by exercising inherent or other powers (including O. 41, R. 33 or general powers under the Code), correct the omission and thus render an otherwise incompetent appeal competent.

Arguments of the Parties

Petitioner's Arguments

  • The appeal had abated as against the petitioner; under O. 41, R. 20 he was not a person "interested in the result of the appeal," and therefore the lower appellate Court lacked jurisdiction to implead him as a respondent.
  • The logical sequence of orders shows that the application to add the petitioner (I.A. No. 425) had to be disposed of before any application to extend limitation (I.A. No. 426) could be entertained; consequently an extension of limitation could not be used retrospectively to treat the petitioner as impleaded at the time the appeal was filed (i.e., Section 22 of the Limitation Act could not be invoked to that effect in this sequence).
  • The lower Court could not by its order convert an otherwise incompetent appeal (because the decree was joint and the appeal had abated as to one joint decree-holder) into a competent one; reliance was placed on authorities (for example, Badri Narayan v. East Indian Railway Company) that held the appellate Court wrongly resorted to O. 41, R. 20 in similar circumstances.

Respondent's Arguments (as reflected in cited authorities and submissions)

  • The respondent relied on authorities which, in certain circumstances, permitted correction of omissions in party names or impleading of necessary parties—examples cited included cases where the omission was a bona fide mistake and where the application to correct or add was made within the period of appeal (Kunhanna Rai v. Manakke; Basanti Bai v. Nanhe Mal).
  • Some cases cited by the respondent were invoked to show that courts possess inherent powers to rectify errors in representation (Srinivasa Rao v. Venkatanarasamma), or that in some fact patterns the appellate Court remanded or set aside to permit impleading where the absence of a party rendered final disposal impossible (Basanti Bai v. Nanhe Mal).
  • However, the opinion records distinctions drawn by the Court between those cases and the present facts (for example, the involvement of minors in Srinivasa Rao; no time-bar issue in Kunhanna Rai; application within time in Basanti Bai).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Badri Narayan v. East Indian Railway Company O. 41, R. 20 applies only when an appeal is pending as to the party sought to be added; lower Court was wrong to use O. 41, R. 20 when appeal was time-barred as to omitted parties. Also approves Manindra Chandra Nandi reasoning that O. 41, R. 20 does not override O. 22 CPC. Used by the Court to support the proposition that the appellate Court cannot invoke O. 41, R. 20 to add a party where the appeal had abated as to that party; treated as closely analogous and supportive of setting aside the lower Court's order.
Manindra Chandra Nandi v. Bhagabati Debi Chudhurani Explains that O. 41, R. 20 is not intended to override the provisions of O. 22 CPC; the right obtained by a respondent when the appeal abates is valuable. Quoted with approval (via Badri Narayan) to buttress the view that O. 41, R. 20 cannot be used to defeat the rights acquired by lapse/abatying of an appeal under O. 22.
V. P. R. V. Chokalingam Chetty v. Seethai Acha and others (Privy Council) Interprets "interested in the result of the appeal" in O. 41, R. 20; held a defendant as to whom the appeal was barred was not "interested in the result." Relied on to conclude that the petitioner was not "interested in the result" when I.A. No. 425 was presented and so the lower Court lacked jurisdiction to order impleading him.
Ma Than May v. Mohamed Eusoof Affirms the same necessity: if appeal succeeds, inconsistent decrees could exist; explains test for when an appellate Court may or may not act to add parties. Applied to show the risk of two inconsistent decrees and to support refusal to allow impleading in the present circumstances.
Muniruddin v. Raisulnisa Follows the principles in the above cases regarding inability to add parties when appeal has abated as to them. Referenced as a supporting precedent in the line of authorities that restrict the appellate Court's power to add a party after abatement.
Srinivasulu Chetti v. Guraviah Where an appeal abates as against one joint plaintiff (e.g., due to death) it must be dismissed as against the other plaintiffs; the whole decree could be executed by legal representatives and it is idle to ask for a contrary decree. The Court observed this position as exactly analogous to the present facts and used it to reinforce the conclusion that the appeal could not be maintained by adding the petitioner.
Maharaja of Faridkot v. Anant Ram Appellate Court cannot implead a person who has acquired an absolute right by lapse/omission; correction should be sought from the court which made the omission (trial Court) and not the appellate Court; appellate Court lacks power under O. 41 R. 20 or R. 33 in such circumstances. Relied on to support the proposition that the trial Court, not the appellate Court, should have been moved to correct the omission; used to justify setting aside the order of the lower appellate Court.
Srinivasa Rao v. Venkatanarasamma Recognises the inherent power of a Court to rectify its own errors in certain circumstances (example concerned minors and next friends). Distinguished by the Court: because that case involved minors and different rules, it was held not to be a guide to the present matter.
Kunhanna Rai v. Manakke Where omission of a party's name was a bona fide mistake and there was no question of the appeal time having elapsed against the party sought to be added, the High Court has power to correct and amend the appeal memorandum and bring the party on record. Distinguished on factual grounds (no issue of extension of limitation in that case); not treated as supporting the respondent in circumstances where the party was time-barred.
Basanti Bai v. Nanhe Mal Where the absence of a necessary party (e.g., Official Receiver) makes it impossible to finally dispose of the case, the High Court set aside the order below and remanded with directions to implead the missing party, where the application to add was within time. Noted by the Court but distinguished because in that case there was no indication the application was out of time; cited as an instance where impleading was permitted when it avoided contradictory decrees and the application was timely.
Gadi Neelaveni v. Marappareddigari Narayana Reddi (Full Bench) Holds that a Court cannot use its inherent powers to extend the scope of a provision which limits its power. Invoked to support the proposition that the appellate Court cannot employ inherent powers to achieve what the Code or limitation provisions do not permit.

Court's Reasoning and Analysis

The Court began by emphasizing the chronological order of steps: I.A. No. 425 (to add the petitioner) had to be disposed of before I.A. No. 426 (to extend limitation) could be entertained. Consequently, the Court rejected the contention that the later grant of an extension under S. 5 of the Limitation Act could be treated as making the petitioner deemed impleaded at the time the appeal was originally filed (i.e., Section 22 of the Limitation Act could not be invoked to cure the original omission in that chronological sequence).

The Court stated it was open to it to examine, and if necessary to disagree with, the lower Court's factual findings that had supported the extension of limitation, but declined to analyze those findings in depth because the determinative legal question could be resolved without extensive reference to them. The opinion records the factual circumstance that the petitioner had been entered as "dead" in the cause title (and no application had been made to bring his legal representative on record), and that the lower Court treated that mistake as a reason for granting extension, despite evidence that the petitioner had appeared in execution proceedings. The Court observed that the petitioner also bore some responsibility for not seeking correction of the cause title earlier.

The central legal analysis applied a line of authorities holding that where the appeal has abated as to a party (for example, by lapse of time or omission leading to abatement), that party is not "interested in the result of the appeal" within the meaning of O. 41, R. 20, and the appellate Court therefore lacks jurisdiction under that provision to implead such a party after the event. The Court cited Badri Narayan and the Privy Council decision V. P. R. V. Chokalingam Chetty as authoritative on the meaning of "interested in the result" and the limits of O. 41, R. 20. The Court also relied on decisions (Ma Than May; Muniruddin; Srinivasulu Chetti) that emphasize the danger of producing two inconsistent decrees if an appellate Court were permitted to add a party in such circumstances.

The Court examined cases relied on by the respondent and distinguished them on their facts: some involved minors and specific inherent-power considerations (Srinivasa Rao), some involved bona fide mistakes corrected within the limitation period (Kunhanna Rai), and some involved a necessity to avoid final disposal behind the back of a necessary party where the application was timely (Basanti Bai). The Court concluded these were not analogous to the present situation where the party had been time-barred and thus was not "interested" when the application to add him was made.

The Court also noted that O. 41, R. 33 (a power to add a defendant as respondent in particular circumstances) was not the basis on which the lower Court acted, and that R. 33 is a "very special power" to be exercised only in special circumstances that do not exist here. The Full Bench authority (Gadi Neelaveni) was cited to underline that the Court cannot deploy inherent powers to enlarge the scope of statutory limits on its jurisdiction.

Holding and Implications

Holding: The petition is allowed; the order of the lower Court adding the petitioner as a respondent (I.A. No. 425 of 1933) is set aside.

Implications:

  • The immediate practical consequence is that the order on the second interlocutory application (I.A. No. 426 of 1933) extending the period of limitation (which had been granted after the order adding the petitioner) becomes inoperative as a result of setting aside the order that added the petitioner.
  • As a further consequence, the appeal against the other respondents is rendered incompetent (because allowing the appeal otherwise would risk two contradictory decrees).
  • The opinion does not purport to lay down a new legal principle; it applies and follows existing authorities to determine that the appellate Court lacked jurisdiction to order the impleading in these circumstances. The decision's effect is directed to the parties before the Court and to the immediate orders set aside; no broader new precedent is stated to be created in the opinion itself.
N. R. R. Petition allowed.
Show all summary ...

The petitioner here was a joint decree-holder in a certain suit. The respondent here was the judgment-debtor in that suit. Against an order passed in execution on 21st October 1932 the judgment-debtor filed an appeal (A. S. No. 191) of 1932 within time. In that appeal he omitted the name of Laguduva S. Krishnaswami Ayyar, the present petitioner, and on 1st November 1933 in the course of the appeal he put in two Interlocutory Applications (I.A Nos. 425 and 426 of 1933). The first application asked for a relief to add the petitioner as a respondent. The second asked for permission under S. 5 of the Limitation Act to excuse the delay in preferring the appeal against him, which was out of time. The lower Court granted both the petitions. There is no revision petition against the order on I.A No. 426 extending the period of limitation and that order has become final. The present petition is against the order on I. A. No. 425 of 1933 giving permission to add the petitioner as a respondent.

The basis of the objection to the order is that under O. 41 R. 20, since the appeal had abated against this petitioner, he was not a party ‘interested in the result of the appeal’ and therefore the lower appellate Court had no jurisdiction to have him impleaded as respondent. It is important in this case to keep clearly in mind the logical sequence of the orders passed, although one common order covers both. It is clear that I.A No. 425 of 1933 asking to add the petitioner as a party had to be first ordered before the second application (I.A No. 426 of 1933) extending the period of limitation against him could be entertained. Consequently, it is quite cut of place to argue that the period of limitation having been extended, he must be held under S. 22 of the Limitation Act to have been impleaded at the time when the appeal was originally filed. Strictly speaking also it is quite open to this Court to go behind the findings of fact on which the limitation period was extended, because I am here dealing with an order which must be taken to have been passed before the application to extend the period of limitation was entertained. I do not, however, wish to deal at any length with the reasons on which the lower Court extended limitation, as I think the whole matter can be argued more clearly without much reference to them. But I must mention what happened, which was this. The petitioner was entered in the cause title of E.P 735/1927 as dead. Admittedly, no application was put in to add his legal representative. But when it came to considering the extension of limitation, the lower Court held this mistake in the cause title sufficient reason, to grant extension, in spite of the fact that this petitioner in the course of the execution of the decree had been appearing in execution proceedings. As I said above, there is nothing to prevent my coming to a different finding from that reached by the learned District Judge in the petition to extend the period of limitation, as to whether the decree-holder (respondent) could be excused for the delay in filing the appeal and I must certainly remark that the fault was not entirely that of the Court in describing the Petitioner as dead, because, if petitioner believed this incorrect description, he should have applied to have his legal representative brought on record which he did not do. Turning to the main question before me there can be no doubt that the appeal which had been filed was incompetent for the decree was a joint one. The argument addressed before me is that the lower Court had no power to render an incompetent appeal competent. The first case quoted for the petitioner is Badri Narayan v. East Indian Railway Company* (1). This is in many respects like the present case. In that case, as in this, the appeal petition presented omitted to include some of the plaintiffs who were joint decree-holders. It was held that “O. 41, R. 20, applies only when there is an appeal pending in the Court on which a decision may be given by the Court. In that case, as in this, when the petition seeking to add the omitted parties was put in, the appeal was time-barred as against those who had been omitted. The learned Judges after quoting Manindra Chandra Nandi v. Bhagabati Debi Chudhurani (2) with approval say that “O. 41, R. 20, is not intended to override the provisions of O. 22 of the Civil Procedure Code. The right obtained by a respondent when the appeal abates as against them is a valuable right and should not be lightly treated.” It was held that “the lower Court was wholly wrong in having recourse to O. 41, R. 20 of the Code.” A further argument was raised before them that the lower Court in substance condoned the delay and gave leave under S. 5 of the Limitation Act. On this they remarked that the learned District Judge has not dealt with the matter on that footing. Though in one aspect the present case is the converse, for the lower Court has specifically dealt with and granted the petition for extension of time under S. 5 of the Limitation Act while it has not specifically dealt with the question as to whether O. 41, R. 20 can be availed of, to add the petitioner to the record, yet as I said above, the logical sequence of the order must be looked at, and the sole question before me is whether the Court had power to pass the order which it did pass on I. A. No. 425 of 1933. In V. P. R. V. Chokalingam Chetty v. Seethai Acha and others (3) (Privy Council case) the meaning of the words “interested in the result of the appeal” occurring in O. 41 R. 20 is explained. It was held that “as the 1st defendant held a decree against which an appeal was barred so far as he was concerned, he was not ‘interested in the result of the appeal’ within the meaning of O. 41, R. 20.” It was also held that “assuming that under O. 41, R. 33, the appellate Court could add a defendant as respondent for the purpose of making a decree against him, no sufficient ground had been shown for interfering with the refusal to do so.” Ma Than May v. Mohamed Eusoof follows the two cases quoted above and the necessity for this view is very clearly explained in that judgment. It has been pointed out there that the test to be applied is this: assuming the appeal against the respondent proved to be successful, the effect would be that there would be in existence two inconsistent decrees, one of the High Court and the other of the District Court, with respect to the subject-matter of the suit. The judgment proceeds: “If the appeal were to succeed in respect of all or any of the items set out in the memorandum of appeal the decree of this Court as against the respondent would both in form and in substance vary from the decree passed by the District Court which, as between the parties to the appeal and the 2nd defendant, has become conclusive.” Muniruddin v. Raisulnisa follows these cases. In Srinivasulu Chetti v. Guraviah it was held “Where pending an appeal by the defendant against a decree for joint possession passed in favour of several plaintiffs, one of the plaintiffs dies, and the appeal abates and is dismissed as against that plaintiff, the appeal must be dismissed as against the other plaintiffs also. When the whole decree could be executed by the legal representatives of the deceased plaintiff it would be idle to ask the Court to pass a contrary decree as against the other plaintiffs.” That is exactly the position in this case. Maharaja of Faridkot v. Anant Ram (4) goes very far in this direction. In that case in execution proceedings by K and J objections filed by R to the attachment of certain property were dismissed, whereupon R brought the present suit against K and J. The trial Court dismissed the suit in toto, but both in its judgment and in framing the decree omitted all reference to A. K., one of J's sons, who, on the death of J had been impleaded in the suit. R appealed from this decree, and on the day fixed for the hearing of the appeal, applied to have A. N added as a respondent. It was held that it is for the Court which makes such omission and that Court alone to put it right under S. 151 of the Code. To hold that an appellate Court could at this stage implead a person who has acquired an absolute right by lapse of time or by the omission of his name from the decree, would be tantamount to denying all finality to litigation. It was further held “that it was for R, being the party aggrieved, to have moved the trial Court, and this not having been done, the appellate Court had no power to act under either R. 20 or R. 33 of O. 41, nor does S. 152 apply to the case.” On this authority it was the trial Court that should have been moved in the present case to add the petitioner to the record. For the respondent only three of the cases quoted are in my opinion at all relevant. The first is Srinivasa Rao v. Venkatanarasamma a decision of this Court. It was there held “Where the next friend of a minor plaintiff withdraws the suit against one of the defendants without previously obtaining the sanction of the Court, the minor has got a right to have the matter re-opened. The absence of any special provision in the Code of Civil Procedure does not take away the inherent power of the Court to rectify its own errors.” There is a case where minors who have a right to be represented are concerned and entirely different rules apply and so this case is therefore not a guide to the present. The next case cited is Kunhanna Rai v. Manakke . There owing to an oversight of either the clerk or the person who instructed the Vakil who filed the Letters Patent Appeal, the name of the 2nd plaintiff who was the 14th respondent in the second appeal was left out and there was a reason for his name being left out, namely, his name resembled closely the name of the 3rd defendant. It was held “it was a bona fide mistake and the High Court has got power to correct it and to have the appeal memorandum amended by inserting the proper name and bringing on record the proper party. But it should be noticed in this case that there seems to have been no question of the application not having been made before the appeal time had elapsed against the party sought to be added, because there is no mention of extending the period of limitation which would have had to be done if such had been the case; and there was no decision of the question of O. 41 R. 22, not being applicable, nor could it be argued that when the appeal time has not elapsed the respondent sought to be added was not interested in the result of the appeal. The next case quoted is Basanti Bai v. Nanhe Mal . In that case a transfer of the property of an insolvent was challenged as being in fraud of the creditors and in an appeal from the order the Official Receiver was not impleaded as a party. An application was put in to add him as a party. Their Lordships observed:

“It is impossible to finally dispose of the case in the absence of the receiver. We cannot set aside the order of the District judge and uphold the transfers behind the back of the receiver. The appeal without impleading him is incompetent. We have, however, mentioned the reason why his name has been omitted from the memorandum of appeal. Having considered the case, we have come to the conclusion that the best thing to do is to set aside the order of the District Judge and remand the case to his Court with a direction that the receiver should be formally impleaded and that he should be allowed to produce any oral or documentary evidence he may like to produce.

Here again, there is nothing to show that the application was not made within the time allowed for the appeal. Secondly, the High Court set aside the order of the District Judge, thus avoiding two contradictory decrees existing at the same time as a possible result of the appeal. That the Court cannot use its inherent powers to extend the scope of a provision which places limitations on it is clear from the Full Bench decision reported in Gadi Neelaveni v. Marappareddigari Narayana Reddi . From the decisions quoted above it must be held clear that the petitioner was not, at the time when I. A. No. 425 of 1933 was presented to the lower Court, “interested in the result of the appeal” and hence the Court had no jurisdiction to order the petition.

A suggestion was made that it could have passed the order under the powers conferred by O. 41, R. 33. To begin with, that was not the order under which the Court acted, and it is a very special power to be used in special circumstances which do not exist at all in this case.

In the result therefore this petition must be allowed with costs and the order of the lower Court adding the 3rd petitioner as a party respondent set aside. The result of this of course will be automatically to render inoperative the order on the second I. A. (I. A. No. 426 of 1933) extending the period of limitation and also to make the appeal against the other respondents incompetent; otherwise there must be two contradictory decrees in existence as a result of that appeal.

N. R. R.Petition allowed.