Supreme Court Quarterly Digest on CODE OF CIVIL PROCEDURE [July - September 2022]
Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017; Section 12, 14 - Code of Civil Procedure, 1908; Order 1 Rule 10(2), Order XLIII Rule 1 - Commercial Courts Act, 2015 - An order for addition of a party under Order 1 Rule 10(2) of the CPC is not appealable under section 14 of the Admiralty Act - An appeal does not lie to the Commercial Appellate Division of the High...
Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017; Section 12, 14 - Code of Civil Procedure, 1908; Order 1 Rule 10(2), Order XLIII Rule 1 - Commercial Courts Act, 2015 - An order for addition of a party under Order 1 Rule 10(2) of the CPC is not appealable under section 14 of the Admiralty Act - An appeal does not lie to the Commercial Appellate Division of the High Court from an order of the Commercial Division (Single Bench) of the same High Court for addition of a party in an admiralty suit governed by the Admiralty Act - An intra-court appeal under the Admiralty Act to the Commercial Division of the High Court would lie from any judgment, decree or final order under the Admiralty Act or an interim order under the Admiralty Act relatable to the orders specified in Order 43, Rule 1 - An order for addition of a party under Order 1 Rule 10(2) of the CPC is not appealable under section 14 of the Admiralty Act - It could not possibly have been the legislative intent of the Admiralty Act to make all interim orders appealable. (Para 81-88) Owners and Parties Interested in the Vessel M.V. Polaris Galaxy v. Banque Cantonale De Geneve, 2022 LiveLaw (SC) 793
Code of Civil Procedure, 1908 - One First Appeal filed by defendant against a common judgment disposing two suits - An application (CLMA) seeking permission to file a single appeal assailing the common judgment alongwith two separate decrees filed - The first appeal admitted by High Court - A decade later, the High Court without passing any order on the said CLMA, at the time of hearing of the appeal, accepted the preliminary objection regarding maintainability of single first appeal without entering into the merits of the case - Allowing appeal, the Supreme Court observed that the approach adopted by High Court is not correct, because on dismissal of the CLMA, the appellant might have had the opportunity to rectify the defect by way of filing separate appeal under Section 96 CPC challenging the same judgment with separate decree - Matter remanded to the High Court to decide the CLMA before deciding the preliminary objection of maintainability of one appeal. Ramnath Exports Pvt. Ltd. v. Vinita Mehta, 2022 LiveLaw (SC) 564
Code of Civil Procedure, 1908 - The procedural defect may fall within the purview of irregularity and capable of being cured, but it should not be allowed to defeat the substantive right accrued to the litigant without affording reasonable opportunity. (Para 10) Ramnath Exports Pvt. Ltd. v. Vinita Mehta, 2022 LiveLaw (SC) 564
Code of Civil Procedure, 1908; Order I Rule 10 - Plaintiffs are the domius litis - Unless the court suo motu directs to join any other person not party to the suit for effective decree and/or for proper adjudication as per Order 1 Rule 10 CPC, nobody can be permitted to be impleaded as defendants against the wish of the plaintiffs - In case the counter-claim is allowed, it will not be open for the plaintiffs to contend that no decree in the counter-claim be passed in absence of the subsequent purchasers - Non-impleading the subsequent purchasers as defendants on the objection raised by the plaintiffs shall be at the risk of the plaintiffs. (Para 5 - 7) Sudhamayee Pattnaik v. Bibhu Prasad Sahoo, 2022 LiveLaw (SC) 773
Code of Civil Procedure, 1908; Order I Rule 10 - The principle that the plaintiffs is the dominus litus shall be applicable only in a case where parties sought to be added as defendants are necessary and / or proper parties. Plaintiffs cannot be permitted to join any party as a defendant who may not be necessary and / or proper parties at all on the ground that the plaintiffs is the dominus litus. (Para 9) Asian Hotels (North) Ltd. v. Alok Kumar Lodha, 2022 LiveLaw (SC) 585
Code of Civil Procedure, 1908; Order II Rule 2 - Constructive Res Judicata - The party claiming and raising the plea of constructive res judicata/Order II Rule 2 of the Code must place on record in evidence the pleadings of the previous suit and establish the identity of the cause of actions, which cannot be established in the absence of record of judgment and decree which is pleaded to operate as estoppel. (Para 33) R.M. Sundaram @ Meenakshisundaram v. Sri Kayarohanasamy and Neelayadhakshi Amman Temple, 2022 LiveLaw (SC) 612
Code of Civil Procedure, 1908; Order II Rule 2 - Order II Rule 2 of the CPC cannot apply to an amendment which is sought on an existing suit - It applies only for a subsequent suit. (Para 49-50, 70) Life Insurance Corporation v. Sanjeev Builders Pvt. Ltd., 2022 LiveLaw (SC) 729
Code of Civil Procedure, 1908; Order IX Rule 13 - On setting aside the exparte judgment and decree, though the defendants who had not filed the written statement, can be permitted to participate in the suit and crossexamine the witnesses. (Para 3.1) Nanda Dulal Pradhan v. Dibakar Pradhan, 2022 LiveLaw (SC) 579
Code of Civil Procedure, 1908; Order VI Rule 17 - All amendments are to be allowed which are necessary for determining the real question in controversy provided it does not cause injustice or prejudice to the other side - The prayer for amendment is to be allowed (i) if the amendment is required for effective and proper adjudication of the controversy between the parties, and (ii) to avoid multiplicity of proceedings, provided (a) the amendment does not result in injustice to the other side, (b) by the amendment, the parties seeking amendment does not seek to withdraw any clear admission made by the party which confers a right on the other side and (c) the amendment does not raise a time barred claim, resulting in divesting of the other side of a valuable accrued right (in certain situations) - A prayer for amendment is generally required to be allowed unless (i) by the amendment, a time barred claim is sought to be introduced, in which case the fact that the claim would be time barred becomes a relevant factor for consideration, (ii) the amendment changes the nature of the suit, (iii) the prayer for amendment is malafide, or (iv) by the amendment, the other side loses a valid defence - In dealing with a prayer for amendment of pleadings, the court should avoid a hyper technical approach, and is ordinarily required to be liberal especially where the opposite party can be compensated by costs. (Para 70) Life Insurance Corporation v. Sanjeev Builders Pvt. Ltd., 2022 LiveLaw (SC) 729
Code of Civil Procedure, 1908; Order VI Rule 17 - Delay in applying for amendment alone is not a ground to disallow the prayer. Where the aspect of delay is arguable, the prayer for amendment could be allowed and the issue of limitation framed separately for decision. (Para 70) Life Insurance Corporation v. Sanjeev Builders Pvt. Ltd., 2022 LiveLaw (SC) 729
Code of Civil Procedure, 1908; Order VI Rule 17 - If, by permitting plaintiffs to amend the plaint including a prayer clause nature of the suit is likely to be changed, in that case, the Court would not be justified in allowing the amendment. It would also result in misjoinder of causes of action. (Para 8) Asian Hotels (North) Ltd. v. Alok Kumar Lodha, 2022 LiveLaw (SC) 585
Code of Civil Procedure, 1908; Order VI Rule 17 - Where the amendment would enable the court to pin-pointedly consider the dispute and would aid in rendering a more satisfactory decision, the prayer for amendment should be allowed. - Where the amendment merely sought to introduce an additional or a new approach without introducing a time barred cause of action, the amendment is liable to be allowed even after expiry of limitation - Amendment may be justifiably allowed where it is intended to rectify the absence of material particulars in the plaint - Where the amendment changes the nature of the suit or the cause of action, so as to set up an entirely new case, foreign to the case set up in the plaint, the amendment must be disallowed. Where, however, the amendment sought is only with respect to the relief in the plaint, and is predicated on facts which are already pleaded in the plaint, ordinarily the amendment is required to be allowed - Where the amendment is sought before commencement of trial, the court is required to be liberal in its approach. The court is required to bear in mind the fact that the opposite party would have a chance to meet the case set up in amendment. As such, where the amendment does not result in irreparable prejudice to the opposite party, or divest the opposite party of an advantage which it had secured as a result of an admission by the party seeking amendment, the amendment is required to be allowed. Equally, where the amendment is necessary for the court to effectively adjudicate on the main issues in controversy between the parties, the amendment should be allowed. (Para 70) Life Insurance Corporation v. Sanjeev Builders Pvt. Ltd., 2022 LiveLaw (SC) 729
Code of Civil Procedure, 1908; Order VII Rule 11 - Averments in the plaint alone are to be examined while considering an application for rejection of plaint - No other extraneous factor can be taken into consideration. H.S. Deekshit v. Metropoli Overseas Ltd., 2022 LiveLaw (SC) 703
Code of Civil Procedure, 1908; Order VII Rule 11 - Order VII Rule 11 does not provide that the court is to discharge its duty of rejecting the plaint only on an application - The power under Order VII Rule 11 is available to the court to be exercised suo motu - It would take a clear case where the court is satisfied. The Court has to hear the plaintiff before it invokes its power besides giving reasons under Order VII Rule 12. (Para 68) Patil AutomationPvt. Ltd. v. Rakheja Engineers Private Ltd., 2022 LiveLaw (SC) 678
Code of Civil Procedure, 1908; Order VIII Rule 6A - A counter claim can be set up only "against the claim of the plaintiffs" - Since there was no claim of the plaintiffs regarding the property, the defendants were barred to raise any counter claim on these properties as it has nothing to do with the plaintiffs - A counter claim can be made by the defendant, even on a separate or independent cause of action. (Para 16) Satyender v. Saroj, 2022 LiveLaw (SC) 679
Code of Civil Procedure, 1908; Order XII Rule 6 - The power to pass judgment on admissions is discretionary and cannot be claimed as a matter of right - The said power should be only exercised when specific, clear and categorical admission of facts and documents are on record, otherwise the Court can refuse to invoke it. (Para 16-18) Karan Kapoor v. Madhuri Kumar, 2022 LiveLaw (SC) 567
Code of Civil Procedure, 1908; Order XIV, Rule 2(2)(b) - Issue of limitation can be framed and determined as a preliminary issue in a case where it can be decided on admitted facts - Though limitation is a mixed question of law and facts it will shed the said character and would get confined to one of question of law when the foundational fact(s), determining the starting point of limitation is vividly and specifically made in the plaint averment - Tthe provisions under Order XIV Rule 2(1) and Rule 2(2)(b) permit to deal with and dispose of a suit in accordance with the decision on the preliminary issue. (Para 18, 26) Sukhbiri Devi v. Union of India, 2022 LiveLaw (SC) 810
Code of Civil Procedure, 1908; Order XLVII Rule 1 - A review application would be maintainable on (i) discovery of new and important matters or evidence which, after exercise of due diligence, were not within the knowledge of the applicant or could not be produced by him when the decree was passed or the order made; (ii) on account of some mistake or error apparent on the face of the record; or (iii) for any other sufficient reason - Scope of review jurisdiction discussed. (Para 11- 25) S. Madhusudhan Reddy v. V. Narayana Reddy, 2022 LiveLaw (SC) 685
Code of Civil Procedure, 1908; Order XLVII Rule 1 - In order to satisfy the requirements prescribed in Order XLVII Rule 1 CPC, it is imperative for a party to establish that discovery of the new material or evidence was neither within its knowledge when the decree was passed, nor could the party have laid its hands on such documents/evidence after having exercised due diligence, prior to passing of the order. (Para 33) S. Madhusudhan Reddy v. V. Narayana Reddy, 2022 LiveLaw (SC) 685
Code of Civil Procedure, 1908; Order XV Rule 5 - As per these provisions, in a suit by a lessor for eviction of a lessee after the determination of lease and for recovery of rent or compensation for use and occupation, the defendant is under the obligation: (1) to deposit the entire amount admitted by him to be due together with interest at the rate of 9% per annum on or before the first hearing of the suit; and (2) to regularly deposit the monthly amount due within a week of its accrual throughout the pendency of the suit. The consequence of default in making either of these deposits is that the Court may strike off his defence. The expression 'first hearing' means the date for filing written statement or the date for hearing mentioned in the summons; and in case of multiple dates, the last of them. The expression 'monthly amount due' means the amount due every month, whether as rent or damages for use and occupation at the admitted rate of rent after making no other deduction except taxes, if paid to the local authority on lessor's account. It is, however, expected that before making an order striking off defence, the Court would consider the representation of the defendant, if made within 10 days of the first hearing or within 10 days of the expiry of one week from the date of accrual of monthly amount. (Para 9.1) Asha Rani Gupta v. Sir Vineet Kumar, 2022 LiveLaw (SC) 607
Code of Civil Procedure, 1908; Order XV Rule 5 - it cannot be laid down as a general proposition that by merely denying the title of plaintiff or relationship of landlord- tenant/lessor-lessee, a defendant of the suit of the present nature could enjoy the property during the pendency of the suit without depositing the amount of rent/damages. (Para 14) Asha Rani Gupta v. Sir Vineet Kumar, 2022 LiveLaw (SC) 607
Code of Civil Procedure, 1908; Order XXI - Order XXI is exhaustive and in the nature of a complete Code as to how the execution proceedings should take place. This is the second stage after the success of the party in the civil proceedings. It is often said in our country that another legal battle, more prolonged, starts in execution proceedings defeating the right of the party which has succeeded in establishing its claim in civil proceedings - There cannot be a licence to prolong the litigation ad infinitum. (Para 39) Jagan Singh & Co. v. Ludhiana Improvement Trust, 2022 LiveLaw (SC) 733
Code of Civil Procedure, 1908; Order XXI Rule 90(3) - The twin conditions of material irregularity of fraud and substantial injury has to be satisfied before an auction sale can be set aside under Order XXI Rule 90(3) -No sale could be set aside unless the Court is satisfied that the applicant has sustained substantial injury by reason of irregularity or fraud in completing or conducting the sale. (Para 11, 38) Jagan Singh & Co. v. Ludhiana Improvement Trust, 2022 LiveLaw (SC) 733
Code of Civil Procedure, 1908; Order XXI Rule 97 - The bonafide purchaser of the suit property is not entitled objecting execution of the decree by the decree holder. (Para 15) Shriram Housing Finance and Investment India Ltd. v. Omesh Mishra Memorial Charitable Trust, 2022 LiveLaw (SC) 565
Code of Civil Procedure, 1908; Order XXI Rule 97-102 - Applications under Rule 97 and Rule 99 are subject to Rule 101 which provides for determination of questions relating to disputes as to right, title or interest in the property arising between the parties to the proceedings or their representatives on an application made under Rule 97 or Rule 99. Effectively, the said Rule does away with the requirement of filing of fresh suit for adjudication of disputes. (Para 14, 16) Shriram Housing Finance and Investment India Ltd. v. Omesh Mishra Memorial Charitable Trust, 2022 LiveLaw (SC) 565
Code of Civil Procedure, 1908; Order XXII Rule 1 - 4 - While considering whether the suit/appeal has abated due to nonbringing the legal representatives of plaintiffs/defendants or not, the Court has to examine if the right to sue survives against the surviving respondents - Court has to consider the effect of abatement of the appeal against each of the respondents in case of multiple respondents. (Para 9- 9.2) Delhi Development Authority v. Diwan Chand Anand, 2022 LiveLaw (SC) 581
Code of Civil Procedure, 1908; Order XXII Rule 2, 11 - A second appeal does not abate on death of one of the respondents when the right to sue survives against the surviving respondent - Abatement occurs only when the cause of action does not survive upon or against the surviving party. (Para 6-9) Sakharam v. Kishanrao, 2022 LiveLaw (SC) 722
Code of Civil Procedure, 1908; Section 11 - Res Judicata - For res judicata to apply, the matter directly and substantially in issue in the subsequent suit must be the same matter which was directly and substantially in issue in the former suit. Further, the suit should have been decided on merits and the decision should have attained finality - Where the former suit is dismissed by the trial court for want of jurisdiction, or for default of the plaintiff's appearance, or on the ground of non-joinder or mis-joinder of parties or multifariousness, or on the ground that the suit was badly framed, or on the ground of a technical mistake, or for failure on the part of the plaintiff to produce probate or letter of administration or succession certificate when the same is required by law to entitle the plaintiff to a decree, or for failure to furnish security for costs, or on the ground of improper valuation, or for failure to pay additional court fee on a plaint which was undervalued, or for want of cause of action, or on the ground that it is premature and the dismissal is confirmed in appeal (if any), the decision, not being on the merits, would not be res judicata in a subsequent suit. The reason is that the first suit is not decided on merits - Conditions that must be satisfied to constitute a plea of res judicata laid down. (Para 30-31) R.M. Sundaram @ Meenakshisundaram v. Sri Kayarohanasamy and Neelayadhakshi Amman Temple, 2022 LiveLaw (SC) 612
Code of Civil Procedure, 1908; Section 11 - Res Judicata - To succeed and establish a prayer for res judicata, the party taking the said prayer must place on record a copy of the pleadings and the judgments passed, including the appellate judgment which has attained finality. (Para 32) R.M. Sundaram @ Meenakshisundaram v. Sri Kayarohanasamy and Neelayadhakshi Amman Temple, 2022 LiveLaw (SC) 612
Code of Civil Procedure, 1908; Section 11 - Res Judicata - When the suit was dismissed for technical reasons, which decision is not an adjudication on merits of the dispute that would operate as res judicata on the merits of the matter. (Para 32) R.M. Sundaram @ Meenakshisundaram v. Sri Kayarohanasamy and Neelayadhakshi Amman Temple, 2022 LiveLaw (SC) 612
Code of Civil Procedure, 1908; Section 11 - The principle of constructive res judicata has no application when there was no formal adjudication between the parties after full hearing. (Para 52) Life Insurance Corporation v. Sanjeev Builders Pvt. Ltd., 2022 LiveLaw (SC) 729
Code of Civil Procedure, 1908; Section 114 , Order XLVII - Distinction between an erroneous decision as against an error apparent on the face of the record - An erroneous decision can be corrected by the Superior Court, however an error apparent on the face of the record can only be corrected by exercising review jurisdiction - A judgment can be open to review if there is a mistake or an error apparent on the face of the record, but an error that has to be detected by a process of reasoning, cannot be described as an error apparent on the face of the record for the Court to exercise its powers of review. (Para 26) S. Madhusudhan Reddy v. V. Narayana Reddy, 2022 LiveLaw (SC) 685
Code of Civil Procedure, 1908; Section 114, Order XLVII Rule 1 - "for any other sufficient reason" means "a reason sufficient on grounds, at least analogous to those specified in the rule". (Para 26) S. Madhusudhan Reddy v. V. Narayana Reddy, 2022 LiveLaw (SC) 685
Code of Civil Procedure, 1908; Section 151 - Section 151 of the CPC can only be applicable if there is no alternate remedy available in accordance with the existing provisions of law - It cannot be said that the civil courts can exercise substantive jurisdiction to unsettle already decided issues. A Court having jurisdiction over the relevant subject matter has the power to decide and may come either to a right or a wrong conclusion. Even if a wrong conclusion is arrived at or an incorrect decree is passed by the jurisdictional court, the same is binding on the parties until it is set aside by an appellate court or through other remedies provided in law - Such inherent power cannot override statutory prohibitions or create remedies which are not contemplated under the Code. Section 151 cannot be invoked as an alternative to filing fresh suits, appeals, revisions, or reviews. A party cannot find solace in Section 151 to allege and rectify historic wrongs and bypass procedural safeguards inbuilt in the CPC. (Para 26-28) My Palace Mutually Aided Cooperative Society v. B. Mahesh, 2022 LiveLaw (SC) 698
Code of Civil Procedure, 1908; Section 2(12) - Transfer of Property Act, 1882; Section 111(a) - Tenant while continuing in possession after the expiry of the lease liable to pay mesne profits - A tenant at sufferance is not a tenant by holding over. While a tenant at sufferance cannot be forcibly dispossessed, that does not detract from the possession of the erstwhile tenant turning unlawful on the expiry of the lease. (Para 60) Indian Oil Corporation Ltd. v. Sudera Realty Pvt. Ltd., 2022 LiveLaw (SC) 744
Code of Civil Procedure, 1908; Section 24 - Given the prevailing socioeconomic paradigm in the Indian society, generally, it is the wife's convenience which must be looked at while considering transfer - In matrimonial matters, wherever Courts are called upon to consider the plea of transfer, the Courts have to take into consideration the economic soundness of both the parties, the social strata of the spouses and their behavioural pattern, their standard of life prior to the marriage and subsequent thereto and the circumstances of both the parties in eking out their livelihood and under whose protective umbrella they are seeking their sustenance to life. (Para 9) NCV Aishwarya v. AS Saravana Karthik Sha, 2022 LiveLaw (SC) 627
Code of Civil Procedure, 1908; Section 24 - The cardinal principle for exercise of power under Section 24 CPC is that the ends of justice should demand the transfer of the suit, appeal or other proceeding. NCV Aishwarya v. AS Saravana Karthik Sha, 2022 LiveLaw (SC) 627
Code of Civil Procedure, 1908; Section 24 - When two or more proceedings are pending in different Courts between the same parties which raise common question of fact and law, and when the decisions in the cases are interdependent, it is desirable that they should be tried together by the same Judge so as to avoid multiplicity in trial of the same issues and conflict of decisions. (Para 10-11) NCV Aishwarya v. AS Saravana Karthik Sha, 2022 LiveLaw (SC) 627
Code of Civil Procedure, 1908; Section 25 - Jurisdiction under Section 25 cannot be extended to determine the question of territorial jurisdiction of the proceedings- The plea of jurisdiction or the lack of it can be prompted before the Court in which the proceedings are pending. (Para 4-5) Neilan International Co. Ltd. v. Powerica Ltd., 2022 LiveLaw (SC) 566
Code of Civil Procedure, 1908; Section 9 - Law on ouster of jurisdiction of civil courts - The jurisdiction of the civil courts to try suits of a civil nature is expansive and the onus to prove the ouster of the jurisdiction is on the party that asserts it. The court observed that even in cases where the jurisdiction of the civil court is barred by a statute, the test is to determine if the authority or tribunal constituted under the statute has the power to grant reliefs that the civil courts would normally grant in suits filed before them. (Para 15) Rajani v. Smita, 2022 LiveLaw (SC) 702
Code of Civil Procedure, 1908; Section 9 - Maharashtra Housing and Area Development Act, 1976; Sections 71, 177 - The reliefs sought in the plaint are: (i) the removal of the unauthorized construction; (ii) a permanent prohibitory injunction restraining the defendants from constructing over the open site and causing 'nuisance'; and (iii) restoration of the water connection as it was prior to the construction - The reliefs claimed are beyond the scope of the Act - A suit of this nature will be maintainable before the civil court and would not be barred by Section 71 or Section 177 of the Act. (Para 16) Rajani v. Smita, 2022 LiveLaw (SC) 702
Code of Civil Procedure, 1908; Section 96 - An appeal is a continuation of the proceedings of the original court. Ordinarily, First appeal involves a rehearing on law as well as on fact as invoked by an aggrieved person. The first appeal is a valuable right of the appellant and therein all questions of fact and law are open for consideration by reappreciating the material and evidence. The first appellate court is required to address on all the issues and decide the appeal assigning valid reasons either in support or against by reappraisal - It must record its findings dealing all the issues, considering oral as well as documentary evidence led by the parties. (Para 8) Ramnath Exports Pvt. Ltd. v. Vinita Mehta, 2022 LiveLaw (SC) 564
Code of Civil Procedure, 1908; Section 96, 105 and Order IX Rule 13 - The appellant, while challenging ex parte decree by filing an appeal, can always point out from the record of the trial court that the order passed to proceed with the suit ex parte against him was illegal - Only when the application made by a defendant under Rule 13 of Order IX of CPC is dismissed that such a defendant cannot agitate in the appeal against ex parte decree that the order directing that the suit shall proceed ex parte was illegal or incorrect - Though the appellant would not be entitled to lead evidence in appeal for making out a sufficient cause for his absence before the trial court, he can always argue on the basis of the record of the suit that either the suit summons was not served upon him or that even otherwise also, the trial court was not justified in proceeding ex parte against him. (Para 8) G.N.R. Babu @ S.N. Babu v. Dr. B.C. Muthappa, 2022 LiveLaw (SC) 748
Code of Civil Procedure, 1908; Sections 96-100 - Any aggrieved party can prefer an appeal with the leave of the Court - A person who is affected by a judgment but is not a party to the suit, can prefer an appeal with the leave of the Court. The sine qua non for filing an appeal by a third party is that he must have been affected by reason of the judgment and decree which is sought to be impugned. (Para 29-31) My Palace Mutually Aided Cooperative Society v. B. Mahesh, 2022 LiveLaw (SC) 698
Code of Civil Procedure, 1973; Order I Rule 9 - A "necessary party" is a person who ought to have been joined as a party and in whose absence no effective decree could be passed at all by the court. It has been held that if a "necessary party" is not impleaded, the suit itself is liable to be dismissed - For being a necessary party, the twin test has to be satisfied. The first one is that there must be a right to some relief against such party in respect of the controversies involved in the proceedings. The second one is that no effective decree can be passed in the absence of such a party. (Para 17-20) Moreshar Yadaorao Mahajan v. Vyankatesh Sitaram Bhedi, 2022 LiveLaw (SC) 802
Commercial Courts Act, 2015 - Mediation lightens the load of the judges- Section 12A contemplated only for a class of suits not requiring urgent relief- suits which contemplate urgent interim relief, the Law-giver has carefully vouch-safed immediate access to justice as contemplated ordinarily through the courts. The carving out of a class of suits and selecting them for compulsory mediation, harmonises with the attainment of the object of the law. The load on the Judges is lightened. They can concentrate on matters where urgent interim relief is contemplated and, on other matters, which already crowd their dockets. (Para 54) Patil AutomationPvt. Ltd. v. Rakheja Engineers Private Ltd., 2022 LiveLaw (SC) 678
Commercial Courts Act, 2015 - Pre-institution mediation - Section 12A not a procedural provision- Exhausting pre-institution mediation by the plaintiff, with all the benefits that may accrue to the parties and, more importantly, the justice delivery system as a whole, would make Section 12A not a mere procedural provision. The design and scope of the Act, as amended in 2018, by which Section 12A was inserted, would make it clear that Parliament intended to give it a mandatory flavour. (Para 43) Patil AutomationPvt. Ltd. v. Rakheja Engineers Private Ltd., 2022 LiveLaw (SC) 678
Commercial Courts Act, 2015; Section 12A - Code of Civil Procedure, 1908; Order VII Rule 11 - In a clear case, where on allegations in the suit, it is found that the suit is barred by any law, as would be the case, where the plaintiff in a suit under the Act does not plead circumstances to take his case out of the requirement of Section 12A, the plaint should be rejected without issuing summons. (Para 68) Patil Automation Pvt. Ltd. v. Rakheja Engineers Private Ltd., 2022 LiveLaw (SC) 678
Commercial Courts Act, 2015; Section 12A - Pre-institution mediation declared to be mandatory- any suit instituted violating the mandate of Section 12A must be visited with rejection of the plaint under Order VII Rule 11. This power can be exercised even suo moto by the court- Declaration with effect from 22.08.2022. (Para 84) Patil Automation Pvt. Ltd. v. Rakheja Engineers Private Ltd., 2022 LiveLaw (SC) 678
Constitution of India, 1950; Article 227 - Code of Civil Procedure, 1973; Order IX Rule 13 - High Court not to entertain a revision application challenging the exparte judgment and decree as there was a statutory alternative remedy by way of an appeal available. (Para 6-7) Mohamed Ali v. V. Jaya, 2022 LiveLaw (SC) 574
Courts Act, 1918 (Punjab); Section 41 - Code of Civil Procedure, 1908; Section 100 - In the State of Haryana a court in second appeal is not required to formulate a substantial question of law, as what is applicable in Haryana is Section 41 of the Punjab Courts Act, 1918 and not Section 100 of CPC - But only such decisions are to be considered in second appeal which are contrary to law or to some custom or usage having the force of law or the court below have failed to determine some material issue of law or custom or usage having the force of law - Second appeal is not a forum where court has to re-examine or re-appreciate questions of fact settled by the Trial Court and the Appellate Court. (Para 10-15) Satyender v. Saroj, 2022 LiveLaw (SC) 679
Personal Law (Goan) – Inventory proceedings – Licitation – Owelty – Portuguese Civil Procedure Code – Chapter XVII (Articles 1369 to 1447) – Articles 1737, 2126, 2127 – Right to property of highest bidder in licitation heritable and not mere personal rights, even if no owelty demanded and paid – Court refused plea for reauction of disputed property – Demise of highest bidder before determination and payment of owelty amount – Held, not ground for setting aside the auction – Owelty only to be paid when demanded – Position and right as a successful bidder, as well as obligation to pay amount heritable by heirs and legal representatives – Amount determined to be paid by successors when called upon to do so. [Paras 18, 20-24] Ethel Lourdes D'Souza Lobo v. Lucio Neville Jude De Souza, 2022 LiveLaw (SC) 795
Specific Relief Act, 1963; Section 21, 22 - Code of Civil Procedure, 1908; Order VI Rule 17 - The provisions contained in Order VI Rule 17 of the CPC would apply to a specific performance suit and a plaintiff who has earlier failed to incorporate the reliefs for compensation or who has incorporated the reliefs for compensation but seeks amendment in the same, could seek the permission of the court to introduce these reliefs by way of amendment. (Para 66) Life Insurance Corporation v. Sanjeev Builders Pvt. Ltd., 2022 LiveLaw (SC) 729