Full Judgment Text
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 32257/2021)
IN
CIVIL APPEAL NO. 11857 OF 2016
Govt. of NCT of Delhi Through the Secretary,
Land and Building Department & Another …Applicants
Versus
M/s. K.L. Rathi Steels Limited and others …Respondents
WITH
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 29713/2018)
IN
CIVIL APPEAL NO. 11857 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 23353/2019)
IN
CIVIL APPEAL NO. 8909 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 14614/2018)
IN
CIVIL APPEAL NO. 8529 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 36340/2018)
Signature Not Verified
Digitally signed by
Neetu Sachdeva
Date: 2023.03.17
16:33:54 IST
Reason:
IN
CIVIL APPEAL NO. 11857 OF 2016
1
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 41755/2018)
IN
CIVIL APPEAL NO. 8899 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 42234/2018)
IN
CIVIL APPEAL NO. 8527 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 44917/2018)
IN
CIVIL APPEAL NO. 8547 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 46131/2018)
IN
CIVIL APPEAL NO. 8952 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 2230/2019)
IN
CIVIL APPEAL NO. 12111 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 6119/2019)
IN
CIVIL APPEAL NO. 8935 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 6120/2019)
IN
CIVIL APPEAL NO. 8954 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 6131/2019)
IN
CIVIL APPEAL NO. 9049 OF 2016
2
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 7653/2019)
IN
CIVIL APPEAL NO. 8559 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 7922/2019)
IN
CIVIL APPEAL NO. 8511 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 8510/2019)
IN
CIVIL APPEAL NO. 8925 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 8554/2019)
IN
CIVIL APPEAL NO. 9214 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 9317/2019)
IN
CIVIL APPEAL NO. 12114 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 20589/2019)
IN
CIVIL APPEAL NO. 9595 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 21094/2019)
IN
CIVIL APPEAL NO. 8898 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 21378/2019)
IN
3
CIVIL APPEAL NO. 11853 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 22637/2019)
IN
CIVIL APPEAL NO. 4599 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 23912/2019)
IN
CIVIL APPEAL NO. 8921 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 24543/2019)
IN
CIVIL APPEAL NO. 8505 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 24209/2019)
IN
CIVIL APPEAL NO. 10206 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 24544/2019)
IN
CIVIL APPEAL NO. 8904 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 25574/2019)
IN
CIVIL APPEAL NO. 9719 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 26034/2019)
IN
CIVIL APPEAL NO. 12046 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 26476/2019)
IN
4
CIVIL APPEAL NO. 8957 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 27950/2019)
IN
CIVIL APPEAL NO. 8922 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 28432/2019)
IN
CIVIL APPEAL NO. 8929 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 29785/2019)
IN
SPECIAL LEAVE PETITION(CIVIL) NO. 17316 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 31560/2019)
IN
CIVIL APPEAL NO. 8545 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 31822/2019)
IN
CIVIL APPEAL NO. 9598 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 37443/2019)
IN
CIVIL APPEAL NO. 11256 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 37444/2019)
IN
CIVIL APPEAL NO. 11854 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 44515/2019)
IN
5
CIVIL APPEAL NO. 9597 OF 2016
CONTEMPT PETITION(CIVIL) NO.735/2018
IN
CIVIL APPEAL NO. 11857/2016
MISCELLANEOUS APPLICATION NO. 159/2018
IN
CIVIL APPEAL NO. 11857 OF 2016
MISCELLANEOUS APPLICATION NO. OF 2022
(Diary No. 5715/2022)
IN
CIVIL APPEAL NO. 11841 OF 2016
REVIEW PETITION(CIVIL) NO. 882/2017
IN
CIVIL APPEAL NO. 11846 OF 2016
O R D E R
M.R. SHAH, J.
1. As common question of law and facts arise in this group of
applications/petitions, all these applications/petitions are decided and
disposed of together by this common order.
2. Having heard learned counsel for the respective parties and in the
facts and circumstances of the case, the delay caused in filing the
6
respective review/recall applications is hereby condoned.
3. All these applications under Article 137 of the Constitution of India
r/w Section 47 of the Civil Procedure Code (CPC) have been preferred
by the Government of NCT of Delhi and Delhi Development Authority to
review and recall the orders passed in the respective Civil Appeals in
dismissing/disposing off the same and to restore the same to their
original files to consider the same on merits.
4. Shri Sanjay Poddar, learned Senior Advocate appearing on behalf
of the Government of NCT of Delhi and other learned counsel appearing
on behalf of the Delhi Development Authority have vehemently
submitted that while dismissing/disposing off all the respective Civil
Appeals and holding and/or confirming the judgments of the respective
High Courts declaring that the acquisition of the lands in question have
lapsed in view of Section 24(2) of the Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and Resettlement Act,
2013 (hereinafter referred to as the ‘2013 Act’), reliance was placed on
the decision of this Court in the case of Pune Municipal Corporation v.
Harakchand Misirimal Solanki, (2014) 3 SCC 183 . It is the case on
behalf of the applicants that the decision of this Court in the case of
Pune Municipal Corporation (supra) , which was relied upon while
7
dismissing/disposing off all the respective appeals has been specifically
overruled by a Constitution Bench of this Court in the case of Indore
Development Authority v. Manohar Lal & others, (2020) 8 SCC 129 .
It is submitted on behalf of the respective applicants that by specifically
overruling the decision rendered in Pune Municipal Corporation
(supra) , the Constitution Bench of this Court has specifically observed
and held that not only the decision rendered in Pune Municipal
Corporation (supra) is overruled, but all other decisions in which Pune
Municipal Corporation (supra) has been followed are also overruled.
Heavy reliance is placed upon para 365 of the Constitution Bench of this
Court in the case of Indore Development Authority (supra) .
4.1 It is further submitted on behalf of the applicants that this Court in
the earlier decision in the case of Indore Development Authority v.
Shailendra (dead) through Lrs. & Others, (2018) 3 SCC 412 , while
holding that the decision in the case of Pune Municipal Corporation
(supra) and other decisions following the view taken in Pune Municipal
Corporation (supra) are per incuriam, it was observed that the
decisions rendered on the basis of Pune Municipal Corporation
(supra) are open to be reviewed in appropriate cases on the basis of the
8
said decision. It is submitted that pursuant to the liberty reserved in the
said decision, the present applications/petitions have been preferred.
4.2 It is further submitted that power to review flows from Article 137 of
the Constitution of India. It is contended that once the law has been laid
down by a Constitution Bench of this Court in the case of Indore
Development Authority v. Manohar Lal & Others (supra) and
specifically overruling the decision in the case of Pune Municipal
Corporation (supra) which was the basis to dispose of/dismiss the
respective appeals, the principle of res judicata shall not be applicable
on the question of law.
4.3 Learned counsel appearing on behalf of the respective applicants
have also submitted that as such the judgment and order passed by this
Court in the case of Pune Municipal Corporation (supra) has been
subsequently recalled by a three Judge Bench of this Court vide order
dated 16.07.2020 passed in Civil Appeal No. 877/2014. It is submitted
that in that view of the matter also, the orders passed in the respective
civil appeals dismissing/disposing off the same relying upon the decision
in the case of Pune Municipal Corporation (supra) are also required to
be reviewed/recalled.
9
4.4 Learned counsel appearing on behalf of the respective applicants
have also relied upon some of the subsequent orders passed by this
Court recalling similar orders dismissing/disposing off the civil appeals in
which the decision in the case of Pune Municipal Corporation (supra)
was relied upon and the respective proceedings are ordered to be
restored to their original file in which the effect of the subsequent
judgment rendered by the Constitution Bench in the case of Indore
Development Authority (supra) Pune Municipal Corporation (supra)
is under consideration. Reliance is placed on the order passed by this
Court dated 15.02.2022 in Miscellaneous Application Diary No.
21678/2020.
4.5 Shri Sanjay Poddar, learned Senior Advocate appearing on behalf
of the applicants has relied upon the decision of this Court in the case of
Mathura Prasad Bajoo Jaiswal & Others v. Dossibai N.B.
Jeejeebhoy, (1970) 1 SCC 613 in support of his submissions that as
held by this Court that the decision on question of law where the law is
altered since the earlier decision, the earlier decision will not operate as
res judicata .
4.6 Relying upon the decision of this Court in the case of Assistant
Commissioner, Income Tax, Rajkot v. Saurashtra Kutch Stock
10
Exchange Limited, (2008) 14 SCC 171 , it is submitted that as observed
and held by this Court a judicial decision acts retrospectively. It is
submitted that it is further observed that if a subsequent decision alters
the earlier one, the later decision does not make new law. It only
discovers the correct principle of law which has to be applied
retrospectively. It is submitted that it is further observed that to put it
differently, even where an earlier decision of the court operated for quite
some time, the decision rendered later on would have retrospective
effect clarifying the legal position which was earlier not correctly
understood.
4.7 It is further submitted by the learned counsel appearing for the
respective applicants that in the present case, in many cases, the
possession of the lands in question has been handed over to the
DDA/applicants which are to be used for the public purpose. It is
contended that because of the wrong interpretation of law in the case of
Pune Municipal Corporation (supra) , the acquisitions have been held
to be lapsed. It is submitted that therefore in view of the subsequent
decision of the Constitution Bench in the case of Indore Development
Authority (supra) clarifying the law and specifically overruling the
decision of this Court rendered in the case of Pune Municipal
Corporation (supra) , there shall not be any lapse of acquisition under
11
the provisions of the 2013 Act. It is submitted that if the impugned
orders passed in the respective Civil Appeals are not reviewed/recalled,
in that case, the applicants/public authorities have to suffer and they will
have to handover the possession of the lands in question back to the
original landowners and thereby the lands in question shall not be used
for the public purpose for which they are acquired. It is contended that
as observed and held by this Court in the case of Board of Control for
Cricket in India v. Netaji Cricket Club (2005) 4 SCC 741 , a mistake on
the part of the Court may also call for a review of the order. It is
submitted that in the aforesaid decision it is further observed and held by
this Court that the words “sufficient reason” in order 47 Rule 1 CPC are
wide enough to include a misconception of fact or law by a court or even
an advocate. It is further observed that an application for review may be
necessitated by way of invoking the doctrine actus curiae neminem
gravabit.
4.8 Making the above submissions and relying upon the aforesaid
decisions, it is prayed to allow the present applications and review/recall
the earlier orders passed in the respective Civil Appeals
dismissing/disposing off the same, relying upon the decision in the case
of Pune Municipal Corporation (supra) , which has been subsequently
overruled by a Constitution Bench of this Court in the case of Indore
12
Development Authority (supra) and thereafter to decide and dispose
of the same in light of the subsequent decision rendered by the
Constitution Bench in the case of Indore Development Authority
(supra) . It is submitted that no prejudice shall be caused to the
respective respondents if the matters are heard afresh on merits and the
respective respondents/landowners will be heard on merits on all points.
5. All these review applications are opposed by Shri Shyam Divan,
Sri V. Giri, Shri Neeraj Kumar Jain, Shri Vivek Chib, learned Senior
Advocates and other counsel appearing for the respective respondents.
5.1 It is vehemently submitted on behalf of the respective respondents
that the applicants have admittedly filed the instant review applications
seeking review of the orders passed by this Court based on a
subsequent decision. It is submitted that change in law in view of the
subsequent decision of the Court cannot be a ground for review. It is
submitted that even if the judgment of the Constitution Bench in the case
of Indore Development Authority v. Manohar Lal (supra) has
overruled the decision in the case of Pune Municipal Corporation
(supra), the settled position inter parties may not be affected.
5.2 It is further submitted that even otherwise the judgment in Indore
Development Authority (supra) may be construed to be prospective in
13
its operation and cannot reopen claims/cases which have already
attained finality.
5.3 It is submitted that the law operational at the time when the Delhi
High Court delivered the judgment in the present matter (Civil Appeal
No. 8529/2016) was that laid down in the case of Pune Municipal
Corporation (supra) .
5.4 It is contended that even before the date on which the judgment of
the Constitution Bench in Indore Development Authority v. Manohar
Lal (supra) was delivered, the matter had attained finality and rights of
the respective respondents over the subject lands were crystallised.
5.5 It is urged that so far as the reliance placed upon para 365 of the
decision in the case of Indore Development Authority v. Manohar Lal
(supra) is concerned, the Constitution Bench was only concerned with
the correctness of the law laid down in the case of Pune Municipal
Corporation (supra) and Sree Balaji Nagar Residential Assn. v.
State of Tamil Nadu (2015) 3 SCC 353 . That the Constitution Bench
was not considering the appeals in relation to Pune Municipal
Corporation (supra) or Sree Balaji Nagar Residential Assn. (supra) ,
or for that matter a review of the decision in the aforesaid cases or any
other case for that matter. Therefore, the Constitution Bench could not
14
have and did not intend to reverse or review the judgments, as an
expression of adjudication by this Court either in Pune Municipal
Corporation (supra) or Sree Balaji Nagar Residential Assn. (supra)
or any other judgment of the competent Court that has followed the
aforesaid judgments. That the effect of overruling of the judgment could
only be to address the precedential value of the judgments so overruled
but cannot set at naught the decree that has been passed in that regard.
It is submitted that by overruling a decision, the overruled judgment will
lose its precedential value and nothing more than that. Reliance is
placed on the decision of this Court in the case of BSNL v. Union of
India (2006) 3 SCC 1 . That in the said decision, it is observed that the
overruling would not affect the binding nature of a decision between the
parties to the lis.
5.5.1 Shri Divan, learned Senior Advocate has also relied upon the
recent decision of this Court in the case of Neelima Srivastava v. State
of U.P. (2021 SCC OnLine SC 610) in support of his submission that as
held by this Court that mere overruling of the principles by a subsequent
judgment will not dilute the binding effect of the decision inter-parties. It
is urged that therefore para 365 of the Constitution Bench judgment in
Indore Development Authority v. Manohar Lal (supra) does not aid
the review petitioners.
15
5.6 It is further submitted by the learned counsel appearing for the
respective respondents that even otherwise none of the conditions
enumerated under Order 47 Rule 1 CPC and Order 47 of the Supreme
Court Rules are satisfied. That the review petitions are filed under
Article 137 of the Constitution r/w Order 47 of the Supreme Court Rules.
That Article 137 states that “subject to the provisions of any law made by
Parliament or any rules made under Article 145”, this Court shall have
power to review its decision. It is submitted that Order 47 of the
Supreme Court Rules states that “no application for review will be
entertained in a civil proceeding except on the ground mentioned in
Order 47 Rule 1 CPC. That Order 47 Rule 1 CPC states that a review
petition may be preferred on the following grounds,
(a) discovery of new and important matter or evidence which, after the
exercise of due diligence, was not within knowledge of the petitioner
or could not be produced by him, OR
(b) order made, or on account of some mistake or error apparent on
the face of the record, OR
(c) for any other sufficient reason.
It is submitted that in the case of Kamlesh Verma v. Mayawati
(2013) 8 SCC 320 , this Court has reiterated the law on review
16
jurisdiction and it is observed and held that unless the aforesaid grounds
are made out, the review petition shall not be maintainable.
5.7 It is further submitted that even otherwise overruling of an earlier
decision cannot be a ground for review. It is contended that the sole
ground raised in the present cases is that the decision in the case of
Pune Municipal Corporation (supra) has been held to be per incuriam
in the earlier decision of Indore Development Authority v. Shailendra
(dead) through Lrs. (supra) and it is contended by the review
petitioners that as per the judgment in Indore Development Authority
v. Shailendra (dead) through Lrs. (supra) , the decisions rendered on
the basis of the Pune Municipal Corporation (supra) were open to
review in appropriate cases based on the said decision. It is submitted
that the explanation to Order 47 of the Code states that the fact that the
decision on a question of law on which the judgment of the Court is
based has been reversed or modified by the subsequent decision of a
superior court in any other case, shall not be aground for the review of
such judgment. It is submitted that a Constitution Bench of this Court in
the case of Beghar Foundation v. K.S. Puttaswamy (2021) 3 SCC 1
has observed that change in law or subsequent decision/judgment of a
coordinate or larger Bench by itself cannot be regarded as a ground for
review.
17
5.8 Learned counsel for the respective respondents have submitted
that in some of the cases, similar review petitions post Constitution
Bench decision in the case of Indore Development Authority v.
Manohar Lal (supra) have been dismissed. It is submitted that merely
because the judgment in the case of Pune Municipal Corporation
(supra) has been recalled subsequently may not be a ground to review
and/or recall the orders passed in the present cases and that too after
such a long delay. It is submitted that the order of recall does not in any
manner afford any additional impetus to the applicants to seek a review
of the judgment in the present cases.
5.9 Making the above submissions and relying upon the aforesaid
decisions, it is prayed to dismiss the review applications.
6. I have heard learned counsel for the respective parties at length.
At the outset, it is required to be noted that in all these cases, the
respective Civil Appeals have been dismissed/disposed of, confirming
the orders passed by the respective High Courts, relying upon the
decision of this Court in the case of Pune Municipal Corporation
(supra). However, it is required to be noted that in Indore
Development Authority v. Shailendra, (2018) 1 SCC 733, correctness
of the decision in the case of Pune Municipal Corporation (supra) was
18
doubted. The matter was placed before the three Judge Bench. By a
majority decision, the decision in the case of Pune Municipal
Corporation (supra) was held to be per incuriam. While holding so and
overruling the decision in Sree Balaji Nagar Residential Assn. (supra)
and other decisions following the said decision to the extent they were in
conflict with the three Judge Bench decision, this Court also observed
that the decisions rendered on the basis of Pune Municipal
Corporation (supra) are open to be reviewed in appropriate cases on
the basis of the said decision. That is how, the applicants have preferred
the present review applications in view of the observations and liberty
reserved in para 217 in the case of Indore Development Authority v.
Shailendra (dead) through Lrs. (supra) . The matter does not rest
there. Thereafter, a reference was made to the five Judge Bench of this
Court. A Constitution Bench of this Court in the case of Indore
Development Authority v. Manohar Lal (supra) thereafter has
specifically overruled the decision in the case of Pune Municipal
Corporation (supra) . In para 365, it is observed and held as under:
| “365. | Resultantly, the decision rendered in | Pune Municipal Corpn. | [ | Pune | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Municipal Corpn. | v. | Harakchand Misirimal Solanki | , (2014) 3 SCC 183 is | |||||||||||||||||||||
| hereby overruled and all other decisions in which | Pune Municipal | |||||||||||||||||||||||
| Corpn | . | [ | Pune Municipal Corpn. | v. | Harakchand Misirimal Solanki | , (2014) 3 | ||||||||||||||||||
| SCC 183 has been followed, are also overruled. The decision in | Sree | |||||||||||||||||||||||
| Balaji Nagar Residential Assn. | [ | Sree Balaji Nagar Residential | ||||||||||||||||||||||
| Assn. | v. | State of T.N. | , (2015) 3 SCC 353 cannot be said to be laying down | |||||||||||||||||||||
| good law, is overruled and other decisions following the same are also |
19
| overruled. In | Indore Development Authority | v. | Shailendra | [ | Indore | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Development Authority | v. | Shailendra | , (2018) 3 SCC 412, the aspect with | ||||||||||||
| respect to the proviso to Section 24(2) and whether “or” has to be read as | |||||||||||||||
| “nor” or as “and” was not placed for consideration. Therefore, that decision | |||||||||||||||
| too cannot prevail, in the light of the discussion in the present judgment.” |
Thus, the Constitution Bench of this Court in the aforesaid decision
has not only observed that the decision rendered in Pune Municipal
Corporation (supra) is overruled but has also specifically observed that
all other decisions in which Pune Municipal Corporation (supra) has
been followed, are also overruled . I have to give some meaning to the
said observations. Thus, in view of the above specific observations
made by the Constitution Bench of this Court, the objections, as above,
raised on behalf of the respective respondents are to be overruled.
None of the submissions/decisions relied upon on behalf of the
respective respondents shall be of any assistance to the respondents,
though there cannot be any dispute with respect to the proposition of law
laid down in the relied upon judgments/decisions on the review
jurisdiction, more particularly, in view of the observations made in para
217 in the earlier decision of this Court in the case of Indore
Development Authority v. Shailendra (dead) through Lrs. (supra)
and the observations made in para 365 in the subsequent decision of
the Constitution Bench in the case of Indore Development Authority v.
20
Manohar Lal (supra) , reproduced hereinabove.
7. It is also required to be noted that in similar set of facts and
circumstances, this Court had condoned the delay and reviewed/recalled
the similar order in which the decision in the case of Pune Municipal
Corporation (supra) was relied upon. It may be true that in some
cases, the review applications have been dismissed. However,
considering the orders passed in rejecting review applications, it appears
that attention of the Court to paras 365 and 366 of the decision of the
Constitution Bench in Indore Development Authority v. Manohar Lal
(supra) and para 217 of the earlier decision in the case of Indore
Development Authority v. Shailendra (dead) through Lrs. (supra)
were not brought to the notice of the Court.
8. Now so far as the submission on behalf of the respective
respondents that the case does not fall under Order 47 CPC and that
the subsequent overruling cannot be a ground to review the earlier
order(s) is concerned, at the outset, it is required to be noted that here is
a peculiar case where the earlier decision in the case of Pune Municipal
Corporation (supra) , upon which reliance has been placed earlier, was
itself doubted in the subsequent decision in the case of Indore
Development Authority (supra) and that the matter was referred to the
21
Constitution Bench and thereafter the Constitution Bench has declared
the law as above, more particularly paras 365 and 366 of the judgment
in the case of Indore Development Authority (supra) . It is also
required to be noted that in most of the cases solely relying upon the
earlier decision in the case of Pune Municipal Corporation (supra) and
though the possession of the lands in question have been taken over
and in many cases it might have been utilised/used by the beneficiary
authorities, orders are passed declaring the deemed lapse of acquisition.
The resultant effect would be to return the possession of the land/s
which might have been used by the beneficiary authorities. Therefore
also in the larger public interest, the review applications are required to
be allowed and the respective appeals are required to be considered
and decided afresh. Therefore, in the facts and circumstances of the
case, these are the cases where the review applications are to be
allowed and the appropriate public authorities are to be given an
opportunity to put forward their case afresh, which shall be in the larger
public interest.
9. In view of the above and for the reasons stated above, all these
review/recall applications are allowed. The orders passed in the
respective Civil Appeals are hereby recalled and the respective Civil
22
Appeals are hereby ordered to be restored to their original file. Let the
said Civil Appeals be considered in accordance with law and on their
own merits and in light of the decision in the case of Indore
Development Authority v. Manohar Lal (supra) . All the defences
and/or contentions which may be available to the respective parties are
kept open including the possession and neither I have entered into the
questions on merits nor expressed anything on merits in favour of either
of the parties.
10. In view of the order passed in the review applications, no further
order is required to be passed in Contempt Petition (Civil) No. 735/2018
in Civil Appeal No. 11857/2016, which stands disposed of.
……………………………………J.
[M.R. SHAH]
NEW DELHI;
MARCH 17, 2023.
23
REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
MISCELLANEOUS APPLICATION NO._____________
@DIARY NO. 32257 OF 2021
IN
CIVIL APPEAL NO. 11857 OF 2016
GOVT. OF NCT OF DELHI
THR. SECRETARY, LAND AND ….. APPELLANT(S)
BUILDING DEPARTMENT
VERSUS
M/S. K.L. RATHI STEELS LTD.
& ORS. ETC. …. RESPONDENT(S)
WITH
CONNECTED MATTERS
J U D G M E N T
NAGARATHNA, J.
I have had the advantage of reading the judgment proposed by
His Lordship M.R. Shah, J. in these review petitions. However, I am
unable to agree with the reasoning as well as the conclusions arrived
at by him.
2. In these batch of cases, the issue revolves around in my view the
very maintainability of these review petitions both on the ground of
delay and on a consideration of Article 137 of the Constitution of India
as well as Order XLVII Rule 1 of the Supreme Court Rules, 2013 (for
short, “S.C. Rules - 2013”) and Order XLVII Rule 1 of the Code of Civil
Procedure, 1908 (‘CPC’ for short). The aforesaid provisions are
respectively extracted as under for immediate reference:
“Article 137 of the Constitution of India:
‘ 137. Review of judgments or orders by
the Supreme Court. -Subject to the
provisions of any law made by Parliament or
any rules made under Article 145, the
Supreme Court shall have power to review
any judgment pronounced or order made by
it.’
Order XLVII Rule 1 of Supreme Court Rules, 2013:
‘Order XLVII Rule 1 - The Court may review
its judgment or order, but no application for
review will be entertained in a civil
proceeding except on the ground mentioned
in Order XLVII Rule 1 of the Code, and in a
criminal proceeding except on the ground of
an error apparent on the face of the record.
The application for review shall be
accompanied by a certificate of the Advocate
on Record certifying that it is the first
application for review and is based on the
grounds admissible under the Rules.’
25
‘Order XLVII Rule 1 CPC-
1. Application for review of judgment. —
(1) Any person considering himself aggrieved
—
(a)
by a decree or order from which an
appeal is allowed, but from which no
appeal has been preferred,
(b)
by a decree or order from which no
appeal is allowed, or
(c) by a decision on a reference from a Court
of Small Causes,
and who, from the discovery of new and
important matter or evidence which, after
the exercise of due diligence was not within
his knowledge or could not be produced by
him at the time when the decree was passed
or order made, or on account of some
mistake or error apparent on the face of the
record, or for any other sufficient reason,
desires to obtain a review of the decree
passed or order made against him, may
apply for a review of judgment to the Court
which passed the decree or made the order.
| 2) | A party who is not appealing from a | |
|---|---|---|
| decree or order may apply for a review of | ||
| judgment notwithstanding the pendency of | ||
| an appeal by some other party except where | ||
| the ground of such appeal is common to the | ||
| applicant and the appellant, or when, being | ||
| respondent, he can present to the Appellate | ||
| Court the case on which he applies for the | ||
| review. |
Explanation – The fact that the decision
on a question of law on which the
judgment of the Court is based has been
reversed or modified by the subsequent
decision of a superior Court in any other
26
| case, shall not be a ground for the review | |
|---|---|
| of such judgment.” |
(Emphasis by me)
3. Before applying the said provisions to these review petitions, it is
necessary to give a brief factual background to these cases.
4. Land Acquisition Act, 1894 (for short, “L.A. Act, 1894”) was a
pre-Independence legislation applicable to acquisition of land on the
principle of eminent domain . The same was repealed and substituted
by the Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013 (‘L.A. Act,
2013’ for the sake of convenience). L.A. Act, 2013 came into effect from
01.01.2014. Section 24 with particular reference to Section 24 (2) of
L.A. Act, 2013, is relevant for the purpose of these review petitions.
The said provision reads as under:
“24. Land acquisition process under Act No. 1
of 1894 shall be deemed to have lapsed in
certain cases. –(1) Notwithstanding anything
contained in this Act, in any case of land
acquisition proceedings initiated under the Land
Acquisition Act, 1894,—
(a) where no award under section 11 of the
said Land Acquisition Act has been made,
then, all provisions of this Act relating to
the determination of compensation shall
apply; or
(b) where an award under said section 11
has been made, then such proceedings
shall continue under the provisions of the
27
said Land Acquisition Act, as if the said
Act has not been repealed.
(2) Notwithstanding anything contained in sub-
section (1), in case of land acquisition
proceedings initiated under the Land Acquisition
Act, 1894 (1 of 1894), where an award under the
said section 11 has been made five years or more
prior to the commencement of this Act but the
physical possession of the land has not been
taken or the compensation has not been paid the
said proceedings shall be deemed to have lapsed
and the appropriate Government, if it so chooses,
shall initiate the proceedings of such land
acquisition afresh in accordance with the
provisions of this Act:
Provided that where an award has been made and
compensation in respect of a majority of land
holdings has not been deposited in the account of
the beneficiaries, then, all beneficiaries specified
in the notification for acquisition under section 4
of the said Land Acquisition Act, shall be entitled
to compensation in accordance with the
provisions of this Act.”
5. Sub-Section 2 of Section 24 of L.A. Act, 2013 was a subject
matter of consideration and interpretation in the case of Pune
Municipal Corporation vs. Harakchand Misirimal Solanki (2014)
3 SCC 183 (Pune Municipal Corporation) and Indore Development
Authority vs. Manoharlal (2020) 8 SCC 129 (Indore Development
Authority).
6. A Three-Judge Bench of this Court in Pune Municipal
Corporation
interpreted Section 24 of L.A. Act, 2013. In one of the
cases, namely, Indore Development Authority vs. Shailendra
28
(2018) 1 SCC 733 , the matter was referred to a Three-Judge Bench
vide order dated 07.12.2017. In Indore Development Authority vs.
Shailendra (2018) 3 SCC 412, the Three-Judge Bench took a view
that the judgment in Pune Municipal Corporation did not consider
several aspects relating to the interpretation of Section 24 of the L.A.
Pune Municipal Corporation
Act, 2013 Act. was a judgment by a
Bench of coordinate strength of three Judges. Two of the three learned
Judges in Indore Development Authority vs. Shailendra opined
prima facie that the decision in Pune Municipal Corporation appears
to be per incuriam while Shantanagoudar J. dissented on one point .
Consequently, the Bench ordered that the matters could be listed
before the appropriate Bench subject to the orders of Hon’ble the Chief
Justice of India. Later, in Indore Development Authority vs. Shyam
Verma (2018) SCC Online SC 3324 , this Court considered it
appropriate to again place the matter before Hon’ble the Chief Justice
of India to refer the issues to be resolved by a Larger Bench. There
were other cases also touching upon the same controversy which were
Indore Development
referred to a Larger Bench and ultimately, in
Authority vs. Manoharlal , a five-Judge Bench was constituted by the
Hon’ble Chief Justice of India, which, after hearing the learned
counsel for the parties, framed the following questions for
consideration:
29
“4.1. (1) What is the meaning of the expression
“paid”/“tender” in Section 24 of the Right to Fair
Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act,
2013 (“the 2013 Act”) and Section 31 of the Land
Acquisition Act, 1894 (“the 1894 Act”)? Whether
non-deposit of compensation in court under Section
31(2) of the 1894 Act results into lapse of
acquisition under Section 24(2) of the 2013 Act.
What are the consequences of non-deposit in court
especially when compensation has been tendered
and refused under Section 31(1) of the 1894 Act
and Section 24(2) of the 2013 Act? Whether such
persons after refusal can take advantage of their
wrong/conduct?
4.1. (2) Whether the word “or” should be read as
conjunctive or disjunctive in Section 24(2) of the
2013 Act?
4.1. (3) What is the true effect of the proviso, does it
form part of sub-section (2) or main Section 24 of
the 2013 Act?
4.1. (4) What is mode of taking possession under
the Land Acquisition Act and true meaning of
expression ‘the physical possession of the land has
not been taken’ occurring in Section 24(2) of the
2013 Act?
4.1. (5) Whether the period covered by an interim
order of a court concerning land acquisition
proceedings ought to be excluded for the purpose of
applicability of Section 24(2) of the 2013 Act?
4.1. (6) Whether Section 24 of the 2013 Act revives
barred and stale claims?
5. In addition, question of per incuriam and other
incidental questions also to be gone into.”
30
7. As the L.A. Act, 2013 has repealed the L.A. Act 1894, Section 24
of L.A. Act, 2013 begins with a non-obstante clause and overrides all
other provisions of L.A. Act, 2013. Section 24 of L.A. Act, 2013 is in
the nature of a saving clause.
8. Submissions were made before the Five-Judge Bench that this
Court should overrule the decision in Pune Municipal Corporation
and other judgments which have followed the said dictum. After
analysing Section 24(1)(a) and Section 24 (1)(b) of the L.A. Act, 2013 at
paragraph 366 of Indore Development Authority , it has been
observed as under:
“366. In view of the aforesaid discussion, we answer
the questions as under:
366.1. Under the provisions of Section 24(1)(a) in case
the award is not made as on 1-1-2014, the date of
commencement of the 2013 Act, there is no lapse of
proceedings. Compensation has to be determined
under the provisions of the 2013 Act.
366.2. In case the award has been passed within the
window period of five years excluding the period
covered by an interim order of the court, then
proceedings shall continue as provided under Section
24(1)(b) of the 2013 Act under the 1894 Act as if it has
not been repealed.
366.3. The word “or” used in Section 24(2) between
possession and compensation has to be read as “nor”
or as “and”. The deemed lapse of land acquisition
proceedings under Section 24(2) of the 2013 Act takes
place where due to inaction of authorities for five years
or more prior to commencement of the said Act, the
possession of land has not been taken nor
compensation has been paid. In other words, in case
31
possession has been taken, compensation has not been
paid then there is no lapse. Similarly, if compensation
has been paid, possession has not been taken then
there is no lapse.
366.4. The expression “paid” in the main part of
Section 24(2) of the 2013 Act does not include a
deposit of compensation in court. The consequence of
non-deposit is provided in the proviso to Section 24(2)
in case it has not been deposited with respect to
majority of landholdings then all beneficiaries
(landowners) as on the date of notification for land
acquisition under Section 4 of the 1894 Act shall be
entitled to compensation in accordance with the
provisions of the 2013 Act. In case the obligation under
Section 31 of the Land Acquisition Act, 1894 has not
been fulfilled, interest under Section 34 of the said Act
can be granted. Non-deposit of compensation (in court)
does not result in the lapse of land acquisition
proceedings. In case of non-deposit with respect to the
majority of holdings for five years or more,
compensation under the 2013 Act has to be paid to the
“landowners” as on the date of notification for land
acquisition under Section 4 of the 1894 Act.
366.5. In case a person has been tendered the
compensation as provided under Section 31(1) of the
1894 Act, it is not open to him to claim that acquisition
has lapsed under Section 24(2) due to non-payment or
non-deposit of compensation in court. The obligation to
pay is complete by tendering the amount under Section
31(1). The landowners who had refused to accept
compensation or who sought reference for higher
compensation, cannot claim that the acquisition
proceedings had lapsed under Section 24(2) of the
2013 Act.
366.6. The proviso to Section 24(2) of the 2013 Act is
to be treated as part of Section 24(2), not part of
Section 24(1)(b).
366.7.
The mode of taking possession under the 1894
Act and as contemplated under Section 24(2) is by
drawing of inquest report/memorandum. Once award
has been passed on taking possession under Section
16 of the 1894 Act, the land vests in State there is no
32
divesting provided under Section 24(2) of the 2013 Act,
as once possession has been taken there is no lapse
under Section 24(2).
366.8. The provisions of Section 24(2) providing for a
deemed lapse of proceedings are applicable in case
authorities have failed due to their inaction to take
possession and pay compensation for five years or
more before the 2013 Act came into force, in a
proceeding for land acquisition pending with the
authority concerned as on 1-1-2014. The period of
subsistence of interim orders passed by court has to be
excluded in the computation of five years.
366.9. Section 24(2) of the 2013 Act does not give rise
to new cause of action to question the legality of
concluded proceedings of land acquisition. Section 24
applies to a proceeding pending on the date of
enforcement of the 2013 Act i.e., 1-1-2014. It does not
revive stale and time-barred claims and does not
reopen concluded proceedings nor allow landowners to
question the legality of mode of taking possession to
reopen proceedings or mode of deposit of compensation
in the treasury instead of court to invalidate
acquisition .”
9. However, while doing so in para 365, it was observed as under:
“ 365. Resultantly, the decision rendered in Pune
Municipal Corpn. is hereby overruled and all other
decisions in which Pune Municipal Corpn. has been
followed, are also overruled. The decision in Sree
Balaji Nagar Residential Assn. cannot be said to be
laying down good law, is overruled and other decisions
following the same are also overruled. In Indore
Development Authority vs. Shailendra , the aspect
with respect to the proviso to Section 24(2) and
whether “or” has to be read as “nor” or as “and” was
not placed for consideration. Therefore, that decision
too cannot prevail, in the light of the discussion in the
.”
present judgment
33
10. Subsequent to the aforesaid judgment passed in Indore
Development Authority by the Five-Judge Bench and having regard
to the fact that Pune Municipal Corporation and all other judgments
following Pune Municipal Corporation have now been overruled, the
review petitioners, who are either the acquiring body/State or the
beneficiary have preferred these review petitions.
11. The object and purpose of filing these review petitions is to seek
review of the judgment impugned in the review petitions and for re-
hearing of the Special Leave Petitions or the Civil Appeals, as the case
may be, which were disposed of in terms of Pune Municipal
Corporation , in light of the latest pronouncement of this Court in
Indore Development Authority .
12. According to Sri Sanjay Poddar, learned senior counsel and
other learned counsel appearing for the review petitioners, on an
interpretation of para 365 of Indore Development Authority, it is
clear that not only the judgment in Pune Municipal Corporation is
overruled but all other judgments following the said decision also
stand overruled. Consequently, the judgements passed by this Court
following the dictum in Pune Municipal Corporation are subject to
review and hence these review petitions have been filed.
34
13. The main plea of the review petitioners is to recall the
judgments/orders impugned in the review petitions and to restore the
Civil Appeals or Special Leave Petitions, as the case may be, on the file
of this Court and to rehear the same and to dispose them in terms of
the latest dictum of the Larger Bench of this Court in the case of
Indore Development Authority.
14. Learned senior counsel and learned counsel for the petitioners
relied upon Mathura Prasad Sarjoo Jaiswal and Others vs.
Dossibai N.B. Jeejeebhoy AIR 1971 SC 2355 ; and Assistant
Commissioner, Income Tax, Rajkot vs. Saurashtra Kutch Stock
Exchange Limited (2008) 14 SCC 171 ; in support of their
submissions that when a question of law is altered by a subsequent
decision, the earlier decision does not operate as res judicata . Further,
that a decision rendered later on would have a retrospective effect
clarifying the legal position which was earlier not accordingly
understood.
15. Per contra , learned senior counsel Sriyuth V. Giri, Shyam Divan,
Neeraj Kumar Jain, Vivek Chib and other learned counsel have
vehemently objected to the very maintainability of the review petitions.
This is by contending that having regard to the scope of review as
provided under Order XLVII Rule 1 CPC and particularly, the
35
Explanation thereto, these review petitions are not at all maintainable.
In other words, it is their contention that despite what has been stated
in paragraph 365 of Indore Development Authority, in view of the
bar contained in the Explanation to Order XLVII Rule 1 CPC, the
review petitions are not maintainable and the review petitions have to
be dismissed in limine . In other words, it is contended that the purport
of what has been opined in paragraph 365 is to denude the judgment
passed in Pune Municipal Corporation and all other judgments or
orders following Pune Municipal Corporation of their precedential
authority and effect. This implies that the said judgment cannot be
cited as a precedent in future in view of the subsequent law being laid
down by the Larger Bench in Indore Development Authority by
overruling the judgment in Pune Municipal Corporation . However,
the judgment themselves do not get effaced and they are binding on
the parties to the said cases although they can no longer be cited as a
precedent. Heavy reliance has been placed on the Explanation to
Order XLVII Rule 1 CPC to contend that when a decision on a question
of law on which the judgment of the Court has been reversed or
modified by the subsequent decision of the superior Court, it shall not
be a ground for review of such judgment. Thus, the contention on
behalf of the respondents is that the judgment in Pune Municipal
Corporation
and all other judgments following the aforesaid
36
judgment, having been overruled, would cease to be a precedent for
future cases. It is submitted that merely because the Larger Bench of
this Court in Indore Development Authority has laid down the new
law by a different interpretation being given to Sub-Section (2) of
Section 24 of L.A. Act, 2013, it cannot give rise to a review of the
judgment passed in Pune Municipal Corporation and all other
judgments following Pune Municipal Corporation.
16. Learned senior counsel for the respondents further submitted
that there is delay in filing the review petitions.
17. Learned senior counsel, Sri Shyam Divan, appearing for one of
the respondents, placed reliance on the two judgments of this Court:
(i) Dr. Subramaniam Swamy vs. State of Tamil Nadu and Ors.
(2014) 5 SCC 75, with particular reference to para 52 thereof to
contend that having regard to the Explanation to Order XLVII
Rule 1 CPC, even an erroneous decision cannot be a ground for
the Court to undertake review, as the first and foremost
requirement of entertaining a review petition is that the order, of
which review is sought, suffers from an error apparent on the face
of the order and in absence of any such error, finality attached to
the judgment/order cannot be disturbed. Rajender Kumar vs.
Rambhai (2007) 15 SCC 513, also alludes to the same principle.
37
(ii)
Further, in Beghar Foundation through its Secretary vs.
Justice K.S. Puttaswamy (Retd.) & Ors. (2021) 3 SCC 1, while
considering the review petitions filed against the final judgment
and order passed in Justice K.S. Puttuswamy vs. Union of
India (2019) 1 SCC 1 (Aadhaar – 5 J.), it was observed that
there was no case for review of the said judgment. It was further
observed that, “ change in the law or subsequent
decisions/judgment of a Larger Bench by itself cannot be regarded
as ground for relief .” The review petitions were, accordingly,
dismissed by the majority of the Judges on the Bench (4:1), while
Dr. D.Y.Chandrachud, J. expressed his dissenting opinion in the
said case.
(iii)
Reliance was also placed on Bharat Sanchar Nigam Ltd. and
Another vs. Union of India and Others (2006) 3 SCC 1 and
Kamlesh Verma vs. Mayawati and Others (2013) 8 SCC 320 in
support of their submissions.
18. By way of reply, learned senior counsel and learned counsel for
the review petitioners sought refuge under the expression “for any
other sufficient reason” in Order XLVII Rule 1 CPC to contend that in
view of the changed circumstances, inasmuch as the dictum in Pune
Municipal Corporation is overruled by the Larger Bench of this
Court and all other judgments following the judgment in Pune
38
Municipal Corporation have also been overruled, there is good
ground to review and reopen all previous judgments passed on the
basis of the overruled judgment in Pune Municipal Corporation .
Hence, these review petitions are maintainable and ought to be
allowed. In this regard, learned counsel for the review petitioners
placed reliance on The Bengal Immunity Company Ltd. vs. The
State of Bihar AIR 1955 SC 661 .
19. Having regard to the rival submissions made, I find that the
bone of contention between the parties is with regard to the
maintainability of these review petitions bearing in mind the scope
and purport of Order XLVII Rule 1 CPC and particularly, the
Explanation thereto. In other words, the point for consideration is,
Pune Municipal Corporation
whether, the judgment passed in and
all other judgments following the said dictum, which have been
overruled, could be reviewed by entertaining these review petitions
and the said orders be recalled and the said cases be reheard and
decided in light of Indore Development Authority .
20. At the outset, it is observed that this is not a case where the
question involved is, whether, the judgment in Pune Municipal
Corporation calls for a review or reconsideration. It has already been
reconsidered by this Court, by the Larger Bench in Indore
39
Development Authority . The pertinent question involved in this case
is, whether, the judgment in Pune Municipal Corporation having
been overruled and all other judgments following Pune Municipal
Corporation having been overruled in Indore Development
Authority, would call for review of all those judgments despite having
attained finality between the parties. In other words, whether, on the
basis of a subsequent decision, on a pure question of law, the earlier
decisions arrived at, on the basis of law as it was, could now be
recalled at the instance of one of the parties to the earlier decisions.
21. The specimen judgment / Orders sought to be reviewed in the
instant cases, namely, Civil Appeals and SLPs, read as under:
“1. Leave granted.
2. The issue, in principle, is covered against the
appellants by judgments in Civil Appeal No. 8477of
2016 arising out of Special Leave Petition (C) No.
8467 of 2015 and Civil Appeal No. 5811 of 2015
arising out of Special Leave Petition (C) No. 21545
of 2015. The appeals filed by the requisitioning
authority, namely the Delhi Development
Authority, have already been dismissed by this
Court.
3. These appeals are, accordingly, dismissed.
4. In the peculiar facts and circumstances of these
cases, the appellants are given a period of one year
to exercise its liberty granted under Section 24(2)
of the Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation
and Resettlement Act, 2013 for initiation of the
acquisition proceedings afresh.
40
5. We make it clear that in case no fresh
acquisition proceedings are initiated within the
said period of one year from today by issuing a
Notification under Section 11 of the Act, the
appellants, if in possession, shall return the
physical possession of the land to the original
land owner.
Pending applications, if any, stand disposed of. No
costs.”
(Emphasis by me)
22. The order dated 01/07/2016 in SLP (C) CC No. 11422 of 2016
and 11005 of 2016 is as under:
“Delay Condoned
Dismissed.”
23. Black's Law Dictionary defines a “decision” as “a determination
arrived at after consideration of facts, and in legal context, law”; an
“opinion” is defined as “the statement by a Judge or Court of the
decision reached in regard to a cause tried or argued before them,
expounding the law as applied to the case, and detailing the reasons
upon which the judgment is based”. It explains the difference between
a “decision” and “opinion” as follows:
“‘Decision’ is not necessarily synonymous with
‘opinion’. A decision of the court is its judgment;
the opinion is the reasons given for that
judgment, or the expression of the views of the
Judge.”
41
24. This Court while considering the difference between the two
expressions, namely, “decision” and “opinion” or view of law stated
that, “ it is necessary to bear in mind that the principles in regard to the
highest Court departing from its binding precedent are different from the
grounds on which a final judgment between the parties can be
reconsidered .”
25. When a review application is filed by an aggrieved party, the
same can be dismissed ex parte without issuing notice to the other
side on the ground that there is no sufficient ground to call upon the
opposite party to show cause as to why review should not be granted.
If notice is issued to the other side, then, after hearing both sides, it is
necessary to consider whether the review petition ought to be allowed
or rejected. It is at that stage the maintainability of the review petition
would also have to be considered such as if there is a bar to the very
maintainability of the review petition having regard to the scope to
Order XLVII Rule 1 CPC. Then, the review petition has to be dismissed
at that stage itself. But, if the Court is convinced that there is ground
for reviewing the order or judgment impugned, then the review petition
has to be allowed by recalling the orders sought to be reviewed.
Thereafter, the matter has to be reheard on merits by the Court. After
rehearing the case, the Court may either confirm the original order or
modify it. An order made subsequently whether reversing, confirming
42
or modifying the earlier order would be superseding the original one.
Therefore, it is at the stage prior to rehearing the matter on merits
that the maintainability of the review petition has to be ascertained
i.e., whether the grounds for seeking review enunciated in Order XLVII
Rule 1 CPC are made out or not.
26. Article 137 of the Constitution of India speaks about the review
of judgments or orders passed by the Supreme Court of India. It states
that subject to the provisions of any law made by Parliament or any
Rule made under Article 145 of the Constitution of India, the Supreme
Court shall have the power to review any judgment pronounced or
order made by it. However, the power of the Supreme Court of India to
review its judgment or order is subject to (i) the provisions of any law
made by the Parliament, or (ii) any Rule made under Article 145 of the
Constitution of India.
27. Rule 1 of Order XLVII of the S.C. Rules, 2013 made by virtue of
Article 145 of the Constitution of India states that, in any civil case,
review lies on any of the grounds stated under Order XLVII Rule 1
CPC. Thus, the scope and power to review a judgment or order by the
Supreme Court is restricted to the contours of Order XLVII Rule 1
CPC. Further, though the power to review is conferred by the
Constitution and is therefore a Constitutional power, that power is
43
circumscribed by the CPC and S.C. Rules, 2013 which have been
extracted above. Order XLVII Rule 1 CPC states that an aggrieved
person -
i)
due to discovery of new and important matter or evidence which,
after exercise of due diligence was not within the knowledge of the
person aggrieved or the person seeking review could not be
produced by him at the time when the decree was passed or order
made, or
ii) due to a mistake or error apparent on the face of the record, or
iii)
on account of any other sufficient reason,
may seek review of a judgment or order of this Court.
28. Thus, it is noted that any person considering himself aggrieved
can seek review of the judgment or order only on the aforesaid three
grounds and none other. In the instance case, according to petitioners’
counsel, the first and second grounds for review do not apply. Learned
senior counsel for the petitioners have relied upon the third ground.
The third ground is “on account of any other sufficient reason”. The
said expression may mean that the reason must be sufficient to the
Court to which the application for review is made.
44
29. In the present batch of cases, serious arguments have been
advanced on both sides on, what I consider, the maintainability of
these review petitions revolving around the Explanation to Order XLVII
Rule 1 CPC. Hence, in my view, the recalling of the judgments passed
following the judgment in Pune Municipal Corporation, which is no
doubt, overruled, will have to be reconsidered in light of Order XLVII
Rule 1 CPC.
30. On a consideration of Order XLVII Rule 1 CPC, it is noted that
there are three main grounds referred to above on which a review of a
decree or order could be sought by an aggrieved person. Much
emphasis has been laid by the learned senior counsel for the review
petitioners herein, on the expression “sufficient reason” so as to
contend that since Pune Municipal Corporation was decided
contrary to the intent and purport of Section 24(2) of L.A. Act, 2013
and the same has been overruled by a Larger Bench comprising of five
Judges in Indore Development Authority , there is sufficient reason
to review all judgments passed by this Court following Pune
Municipal Corporation . Hence, the present review petitions have
been filed although there may be a delay in doing so.
31. It was further contended that having regard to paragraph 365 of
the judgment in Indore Development Authority , the dictum in Pune
45
Municipal Corporation as well as all decisions following Pune
Municipal Corporation have been expressly overruled. Therefore,
there is sufficient reason to review and recall all those erroneous
decisions in light of the subsequent decision in Indore Development
Authority. Hence, the review petitions have been filed.
32. While considering the aforesaid submission, it is also necessary
to bear in mind the arguments advanced by learned senior counsel
and counsel on behalf of the respondents as they have drawn our
particular attention to the Explanation to Order XLVII Rule 1 CPC. It
was contended that the said Explanation clearly bars a review of a
judgment on the ground that a subsequent decision has been
rendered by a superior Court, i.e. a Larger Bench of five Judges in the
instant case, reversing or overruling the earlier decision. It was
contended that when such a decision is on a pure question of law, it is
not a ground for review of the judgments which have been overruled
by the Larger Bench. It was further submitted that the overruled
judgments are still binding on the parties to the said judgments and
have attained finality and in view of the Explanation, they cannot be
reopened or reviewed.
33. Applying the Explanation to the facts of the present case, it was
contended that in Indore Development Authority , the judgment in
46
Pune Municipal Corporation was overruled on a pure question of law
and further, all other judgments following Pune Municipal
Corporation also stood overruled. But the overruling of the decision
in Pune Municipal Corporation by a subsequent decision of a Larger
Bench of five Judges in Indore Development Authority is not a
ground for review and recall of the very decision in Pune Municipal
Corporation and all other decisions following Pune Municipal
Corporation . It was submitted that the Explanation to Order XLVII
Rule 1 CPC bars the review petition being entertained in the instant
cases. Hence, in these cases, the review petitions may have to be
rejected/dismissed.
34. The expression “any other sufficient reason” which is a ground
for review and which is the sheet anchor of the petitioner’s review
petition has not been defined in the Code. However, the judgments of
the
(i) Privy Council in Chajju Ram vs. Neki AIR 1922 P.C. 112;
Bisheshwar Pratap Sahi vs. Parath Nath AIR 1934 P.C.
213;
(ii) Federal Court in Hari Sankar Pal vs. Anath Nath Mitter
AIR 1949 FC 106, and,
47
(iii) This Court in Moran Mar Basselios Catholicos vs. Most
Rev. Mar Paulose Athanasius AIR 1954 SC 526 have held
that words must mean “a reason sufficient on grounds, at
least analogous to those specified in the Rule”.
Chajju Ram vs. Neki
35. In (supra), the Privy Council held that
there cannot be a review on the ground that the judgment proceeded
on an incorrect exposition of law. Further, the Court has no
jurisdiction to order a review because it was of the opinion that a
different conclusion of law should have been arrived at. It was also
observed that if a decision is erroneous in law that is not a ground for
ordering review. If a court has decided a point erroneously, the error
could not be one apparent on the face of the record or even analogous
to it. Therefore, subsequent events or the fact that the Court took a
different view in a subsequent case is not a sufficient reason for
granting review ( vide Explanation to Order XLVII Rule 1 CPC).
36. Although, the expression “for any other sufficient reason” in
Order XLVII Rule 1 CPC is wide enough to take within its scope and
ambit many circumstances or situations which do not fall in the
earlier part of the Order XLVII Rule 1 CPC which are the two grounds
(i) and (ii) referred to above, in my view, the Explanation to the said
provision carves out an exception to the expression “for any other
sufficient reason” as a ground for review of a judgment in ground (iii).
48
The Explanation being in the nature of an exception is to be read
outside the scope of the expression “for any other sufficient reason” in
Order XLVII Rule 1 CPC. In other words, if, on a question of law, a
decision of a Court is reversed by a subsequent decision of a superior
Court (Larger Bench in the instant case) and the same is reopened on
the basis of the said subsequent decision there would be no finality of
judgments of the Court even between the parties thereto. It is, hence,
observed that even an erroneous judgment or order is binding on the
parties thereto even if subsequently that very judgment is reversed in
a subsequent decision of a superior Court. Otherwise, there would be
chaos and no finality of any decision of a Court which is against
public policy. Judgments rendered by a Court of competent
jurisdiction as per the prevailing law are binding on the parties to the
said judgment. Merely because that judgment is subsequently
overruled by a subsequent decision of a superior Court in any other
case, the same shall not be a ground for review of such judgment.
37. In this context, the object and purpose of the Explanation to
Order XLVII Rule 1 CPC cannot be lost sight of and it needs to be
emphasised. In my view, the Explanation to Order XLVII Rule 1 CPC is
in the nature of an exception to the expression “for any other sufficient
reason”. This would mean that if, in the mind of a Court there is a
sufficient reason for the review of a judgment, it cannot be on the
49
ground/reason covered in the Explanation to Order XLVII Rule 1 CPC.
Thus, the circumstances mentioned in the Explanation would be an
exception and is outside the scope and ambit of “for any other
sufficient reason”.
| 38. | An Explanation |
|---|
object and content as well as the meaning of words contained in the
Section. An Explanation may be added to include something within or
to exclude something from the ambit of the main enactment or the
connotation of some words occurring in it. Even a negative
Explanation which excludes certain types or a category from the ambit
of the Section may have the effect of showing that the category leaving
aside the excepted types is included within it. An Explanation can also
| be added to serve as a proviso to the main Section | vide | Y.P. Chawla |
|---|
and Others vs. M.P. Tiwari and another AIR 1992 SC 1360. When
an Explanation is in the nature of a proviso, it is used to remove
special cases from the general provision and provide for them
especially. Sometimes an Explanation is added to clarify a doubtful
point of law as in the instant case the Explanation to Order XLVII Rule
1 CPC has been inserted by the amendment made in the year 1976.
[Source: G.P. Singh’s “Principles of Statutory Interpretation” –
th
15 Edition].
50
39. It is also in the nature of an exception intended to restrain the
enacting clause to particular cases. The Explanation in the instant
case being in the nature of a proviso is a qualifying or excepting
provision to what is stated in Order XLVII Rule 1 CPC which state the
grounds for seeking a review. Hence, the object and intendment of the
proviso must be given its full effect. The object and purpose of the
Explanation can be related to the following three maxims:
(i) Nemo debet bis vexari pro una et eadem causa (No man
should be vexed twice for the same cause);
(ii) Interest reipublicae ut sit finis litium (It is in the interest of
the State that there should be an end to a litigation); and
(iii) Res judicata pro veritate occipitur (A judicial decision must
be accepted as correct).
These maxims would indicate that there must be an end to
litigation otherwise the rights of persons would be in an endless
confusion and justice would suffer.
40. At the same time, there are a line of decisions which have held
that exercising power of review for “for any other sufficient reason”
must be analogous to the two reasons mentioned in the provision
therein, namely, –
51
1)
who from the discovery of new and important matter or evidence,
which after the exercise of due diligence, was not within his
knowledge or could not be produced by him at the time when the
decree was passed or order was made; or
2) on account of some mistake or error apparent on the face of the
record.
41. The Explanation to Order XLVII Rule 1 CPC states that the fact
that a decision on a question of law on which the judgment of the
Court is based has been reversed or modified by the subsequent
decision of a superior Court in any other case, shall not be a ground
for the review of such judgment. Thus, the bar is for a Court to review
its judgment, when a Court superior to it has subsequently reversed
or modified a judgment on a question of law. As far as this Court is
concerned, a superior Court would mean a Larger Bench of this Court
which would pass a judgment or order contrary to the judgments
sought to be reviewed.
42. However, in taxation matters, the position is slightly different. In
Bharat Sanchar Nigam Ltd. vs. Union of India (2006) 3 SCC 1 , it
was observed that overruling of a decision takes place in a subsequent
lis where the precedential value of the decision is called in
question. That in our judicial system, it is open to a Court of superior
52
jurisdiction or strength before which a decision of a Bench of lower
strength is cited to act as an authority to overrule such a decision. But
this overruling would not operate to upset the binding nature of the
decision on the parties to an earlier lis . In that lis , the principle of res
judicata would continue to operate. But in tax cases relating to a
subsequent year involving the same issue as an earlier year, the Court
can differ from the view expressed if the case is distinguishable or per
incuriam .
43. Learned senior counsel for the petitioners relied upon the
following judgments in their arguments as well as reply arguments:
(a) Mathura Prasad Sarjoo Jaiswal vs. Dossibai N.B. Jeejeebhoy
(supra) was a question related to jurisdiction of a Court which
cannot be deemed to have been finally determined by an
erroneous decision of the court. It was observed that if by an
erroneous interpretation of the statute the court holds that it has
no jurisdiction, the question would not, operate as res judicata.
Similarly, by an erroneous decision if the court assumes
jurisdiction which it does not possess under the statute, the
question cannot operate as res judicata between the parties,
whether the cause of action in the subsequent litigation is the
same or otherwise, because if those decisions are considered as
conclusive, it will assume the status of a special rule of law
53
applicable to the parties relating to the jurisdiction of the court in
derogation of the rule declared by the Legislature. Reliance on the
said decision is placed as the controversy involved therein, was in
the context of the doctrine of res judicata, wherein, it was
observed that the previous decision on a matter in issue alone is
res judicata. When it is said that a previous decision is res
judicata , it is meant that the right claimed has been adjudicated
upon and cannot again be placed in contest between the same
parties. It was further observed that a previous decision on a
matter in issue is a composite decision: the decision on law
cannot be dissociated from the decision on facts on which the
right is founded. A decision on an issue of law will be a res
judicata in a subsequent proceeding between the same parties, if
the cause of action of the subsequent proceeding is the same as in
the previous proceeding, but not when the cause of action is
different, nor when the law has since the earlier decision been
altered by a competent authority, nor when the decision relates to
the jurisdiction of the Court to try the earlier proceeding, nor
when the earlier decision declares valid a transaction which is
prohibited by law. Therefore, if a subsequent proceeding is
initiated between the parties in these cases, then the decision
arrived at in terms of the impugned judgment in these review
54
petitions would be binding on the parties. This does not mean
Pune Municipal
that a decision rendered between the parties in
Corporation or decision following Pune Municipal Corporation
can be reviewed or recalled by filing review petitions on the
ground that subsequently in Indore Development Authority,
Pune Municipal Corporation has been overruled and sought to
be contended by the learned counsel for the petitioners. The same
would be contrary to the Explanation in Order XLVII Rule 1 CPC.
(b)
Similarly, reliance was placed on Assistant Commissioner,
Income Tax, Rajkot vs. Saurashtra Kutch Stock Exchange
Limited (supra). A judgment which was pronounced earlier by a
superior Court and holding the field, was not noticed by the
Income Tax Appellate Tribunal, subsequently, while deciding a
matter. Hence, it was observed that there was a mistake apparent
from the record as there was non-consideration of a binding
decision of superior Court by the said Tribunal. Hence, the same
could be rectified under Section 254(2) of the Income Tax Act,
1961.
The above decision is also not applicable in the instant case
for the reason that when Pune Municipal Corporation was
decided there was no judgment of Indore Development
55
Authority . The decision of the Larger Bench in Indore
Development Authority is not prior to but subsequent to the
judgment in Pune Municipal Corporation . The judgment and
decision in Pune Municipal Corporation dated 08.02.2018 held
the field till the judgment in Indore Development Authority
which was pronounced on 06.03.2020. Therefore, the judgment in
Indore Development Authority being a subsequent decision
cannot give rise to review and recall of the decision in Pune
Municipal Corporation as well as other judgments following the
aforesaid case, on the basis that judgment in Pune Municipal
Corporation has been overruled in the subsequent case, namely,
Indore Development Authority .
(c) In Shakuntla Devi vs. Kamla (2005) 5 SCC 390 , a declaratory
decree was granted on the basis of law as it stood then i.e. the
date when the declaratory decree was passed. But by the time the
second declaratory decree was passed between the same parties
in a subsequent suit, this Court had declared the law under
Section 14 of the Hindu Succession Act, 1956 holding that the
estate of women gets enlarged in terms of the said provision.
Since the law on the date of the second declaratory decree was
contrary to the earlier declaration of law made by this Court, the
earlier decree in the first suit would not operate as
res judicata
56
even between the same parties when the second suit on a
different cause of action between the same parties is being
considered. Thus, in the above circumstances, the principle of res
judicata would not apply. It is in the context of the principle of res
judicata , it was observed by this Court that if the earlier
declaratory decree which is sought to be made the basis of res
judicata, is delivered by a Court without jurisdiction or is contrary
to the existing law at the time and the issue comes up for
reconsideration, such earlier declaratory decree cannot be held to
be in a subsequent case unless, of course, protected
res judicata
by any special enactment. Therefore, it was held in the said case
that if a subsequent suit is based on an earlier declaratory decree
and such decree is contrary to the law prevailing at the time of the
consideration of the second suit as to its legality or is a decree
granted by a Court which had no jurisdiction to grant such
decree, principles of res judicata under Section 11 CPC will not be
attracted. It is then open to the defendant in the second suit to
establish that the declaratory decree relied upon by the plaintiff
granted in the earlier suit is not based on good law or that the
Court granting such decree did not have the jurisdiction to grant
such decree. In the aforesaid case, the second suit was filed for
possession of the suit properties on the basis of a declaratory
57
decree obtained earlier in the first suit which was not found to be
a lawful decree as per the law prevailing at the time when the
second suit was considered.
The aforesaid decision does not apply to the present case as
herein, review petitions have been filed seeking review of the
judgments passed by this Court on the basis of the decision in
Pune Municipal Corporation which has been subsequently
overruled by this Court in Indore Development Authority on a
pure question of law and the review petitions are hit by the
Explanation to Order XLVII Rule 1 CPC. This is not a case where
a subsequent fresh petition has been filed before the High Court
seeking reliefs based on the judgment of this Court in Pune
Municipal Corporation. It is necessary to emphasise that these
review petitions have been filed before this Court to review the
judgments/orders passed by this Court on the basis of the
judgment in Pune Municipal Corporation which has been
overruled by a subsequent judgment in Indore Development
Authority . In my view, these review petitions are not
maintainable in view of the bar contained in the Explanation to
Order XLVII Rule 1 CPC.
58
(d) Learned senior counsel for the petitioners has relied upon the
expression “sufficient reason” found in Order XLVII Rule 1 CPC
being a ground for review in these cases. In this regard, he placed
reliance on Board of Control for Cricket in India vs. Netaji
Cricket Club
, wherein it was observed that an application for
review would also be maintainable if there exists sufficient reason
thereof. What would constitute sufficient reason would depend on
the facts and circumstances of the case. In the said case, reliance
was placed on a judgment of the Privy Council in Moran Mar
Basselios Catholicos vs. Most Rev. Mar Poulose
Athanasius (supra), dealing with the limitations in the
application of review and it was observed that the expression “any
other sufficient reason” must mean “a reason sufficient on
grounds, at least analogous to those specified in the rule.”
In Netaji Cricket Club (supra), this Court recognised that
there was a mistake on the part of this Court which would include
a mistake in the understanding of the nature of an undertaking
given to this Court and therefore, the review application was
entertained by accepting the mistake in the nature and purport of
the undertaking given before this Court. In the aforesaid factual
matrix, the review petition was entertained.
59
(e) In the same context, Lily Thomas vs. Union of India (2000) 6
SCC 224 could be adverted to wherein it has been held that the
power to review is not an appeal in disguise but is a creature of
statute and not an inherent power. In the said case, the question
was with regard to the consideration of a subsequent event to
mould the relief accordingly. It was observed that while exercising
its review jurisdiction, the Court can take into consideration a
subsequent event for the purpose of rectifying its own mistake. A
party cannot be made to suffer on account of an act of the Court
which is expressed in the well-recognised maxim of equity,
namely, actus curiae neminem gravabit which means an act of the
Court shall prejudice no man. This maxim is founded upon
justice and good sense or otherwise a man would be compelled to
do what he cannot possibly perform, which the law does not
permit ( lex non cogit ad impossibilia ). The above proposition would
fall within the scope of “any other sufficient reason” when there is
a mistake of the Court which has led to injustice. That is a
situation which does not take in a situation covered by the
Explanation to Order XLVII Rule 1 CPC, which, as already
observed, is an exception to Order XLVII Rule 1 CPC. Hence, the
aforesaid judgment does not apply to the instance cases.
60
44. The aforesaid cases turn on their own facts and do not fall
within the scope of exception which is in the nature of an Explanation.
The aforesaid judgments cannot be a precedent in the instant case
where the review petition has been filed in order to set at naught the
impugned orders following the judgment in Pune Municipal
Corporation passed by this Court which held the field till it was
subsequently overruled in Indore Development Authority. Having
regard to the Explanation provided in Order XLVII Rule 1 CPC review
in these cases is impermissible.
45. A few judgments of this Court could be referred to at this stage
in support of the view that I wish to take in this case:
a)
In Haridas Das vs. Usha Rani Banik (2006) 4 SCC 78, it has
been observed that one of the parameters prescribed in Order
XLVII Rule 1 CPC for allowing the review petition for rehearing the
case is “on account of some mistake or error apparent on the face
of the record or for any other sufficient reason”. The former part of
the rule deals with a situation attributable to the applicant, and
the later to a jural action which is manifestly incorrect or on
which two conclusions are not possible. Neither of them
postulates a rehearing of the dispute because a party had not
highlighted all the aspects of the case or could perhaps have
argued them more forcefully and/or cited binding precedents to
61
the Court and thereby enjoyed a favourable verdict. It was further
observed categorically that an error apparent on the face of the
record for acquiring jurisdiction to review must be such an error
which may strike one on a mere looking at the record and would
not require any long-drawn process of reasoning.
b) In fact, in Thungabhadra Industries Ltd. vs. Government of
A.P. AIR 1964 SC 1372: (1964) 5 SCR 174 , it has been
observed that there is a distinction which is real between a mere
erroneous decision and a decision which could be characterised
as vitiated by “error apparent”. A review is by no means an appeal
in disguise whereby an erroneous decision is corrected but lies
only for a patent error without any elaborate argument that one
could point to the error and therefore, a clear case of error
apparent on the face of the record would be made out.
c)
Reliance could also be placed on Union of India vs. Mohd.
Nayyar Khalil (2000) 9 SCC 252, wherein it was observed that if
an order following a Three-Judge Bench decision is passed and at
that time the Three-Judge Bench decision had not been upset,
even in the future or later if the Constitution Bench takes a
contrary view, it would be a subsequent judgment which cannot
be a ground for review in view of the Explanation to Order XLVII
Rule 1 CPC.
62
d) Similarly, in Shanti Devi vs. State of Haryana (RP Dy. No. 1249
of 1999) in Civil Appeal No. 14608 of 1996 as reported in (1999) 5
SCC 703 , this Court held that the contention that the judgment
sought to be reviewed was overruled in another case,
subsequently, is no reason for reviewing the said decision in view
of the Explanation to Order XLVII Rule 1 CPC. The said review
petition was dismissed both on the ground of unexplained
inordinate delay as well as on merits.
e) In Usha Bharti vs. State of Uttar Pradesh (2014) 7 SCC 663, it
was held that the Supreme Court, in exercise of its power of
review may in an appropriate case reopen the case and rehear the
entire matter but while doing so the Court must remain conscious
of the provisions contained in Order XLVII Rule 1 CPC as well as
the Rules framed by the Supreme Court. Thus, the expression “for
any other sufficient reason” has been intentionally used in Order
XLVII Rule 1 CPC by the Legislature to cater to possible
exceptional cases in which injustice may have been meted out.
46. The following relevant judgments could also be discussed at this
stage:
(a) State of Gujarat & Anr. vs. Justice
Reliance could be placed on
R.A. Mehta (Retd.) (2013) 3 SCC 1 , wherein following several
earlier decisions of this Court, it was observed that a decision
63
does not lose its authority “ merely because it was badly argued,
.”
inadequately considered or fallaciously reasoned
(b) In fact, in Madan Mohan Pathak & Anr. vs. Union of India
AIR 1978 SC 803; (1978) 2 SCC 50 , a Seven-Judge Bench of
this Court considered the question whether Parliament enacting
an Act consequent upon the judgment of the Calcutta High Court
would unsettle the binding effect of the said judgment. In that
case, the appeal filed against the judgment of the Calcutta High
Court was not pressed before this Court and the said judgment
was allowed to become final. This Court held that there was
nothing in the Act passed subsequent to the judgment of the
Calcutta High Court which had nullified the effect of the same or
which could unsettle the judgment or take away the binding
character of the same. In the circumstances, it was held that Life
Insurance Corporation which was a party in that case was liable
to make the payment of cash bonus for the year 1975-1976 to its
Class III and IV employees in accordance with the said judgment
of the Calcutta High Court as it was not absolved of the
obligations imposed by the said judgment despite the Parliament
passing an Act subsequent thereto on the ground that the
judgment of the Calcutta High Court was binding on the parties
thereto.
64
(c) Further, in Neelima Srivastava vs. State of Uttar Pradesh
(2021) SCC online 610 , reference was made to Secretary, State
of Karnataka vs. Uma Devi (3) (2006) 4 SCC 1 (“ Uma Devi 3 ”),
in which the Constitution Bench had stated, “ it is also clarified
that those decisions which run counter to the principle settled in
this decision, or in which directions running counter to what we
have held herein, will stand denuded of its status as precedent.” It
was observed in Neelima Srivastava that the import of the
aforesaid observations was that earlier decisions running counter
to the principles settled in the decision of Uma Devi could not be
treated as a precedent. This does not mean that the judgment of a
competent Court delivered prior to the decision in Uma Devi
which attained finality and is binding inter-se between the parties
need not be implemented. It was further observed that, “ mere
overruling of the principles, on which the earlier judgment was
passed, by a subsequent judgment of higher forum will not have
the effect of uprooting the final adjudication between the parties
and set it at naught.”
Moreover, it was held that there is a distinction between
overruling of a principle and reversal of a judgment. The judgment
between the parties has to be assailed and overcome in a manner
known to or recognised by law by a higher forum. Mere overruling
65
of principles by a subsequent judgment will not dilute the binding
effect of the decision on parties to the judgment overruled. It was
held that observation at paragraph 54 of Uma Devi case does not
absolve the parties in other cases to comply with the directions
prior to Uma Devi’s
issued the judgment in case.
(d) Reference can also be made to Union of India vs. Major S.P.
Sharma (2014) 6 SCC 351 , in which it was stated that “ a
decision rendered by a competent Court cannot be challenged in
collateral proceedings for the reason that if it is permitted to do so
there would be confusion and chaos and the finality of the
. It was further
proceeding would cease to have any meaning”
observed that it is not permissible in law for the parties to reopen
concluded judgments of the Court as the same may not only
tantamount to an abuse of the process of the Court but would
have a far-reaching adverse effect on the administration of justice.
(e) When reconsideration of a judgment of this Court is sought, there
are two limitations which have been observed – one jurisdictional
and the other self-imposed. The same has been explained in
Natural Resources Allocation, in Re: Special reference no. 1
of 2012 , speaking through D.K. Jain, J., as under:
“The first limitation is that a decision of this Court
could be reviewed only under Article 137 or a
curative petition and in no other way. Once a lis
between parties is decided, the operative decree can
66
only be opened in review. Overruling the judgment—
as a precedent—does not reopen the decree.
The second limitation, a self-imposed rule of judicial
discipline, was that overruling the opinion of the
Court on a legal issue does not constitute sitting in
appeal, but is done only in exceptional
circumstances, such as when the earlier decision is
per incuriam or is delivered in the absence of
relevant or material facts or if it is manifestly wrong
and capable of causing public mischief.”
It was further observed that “ in fact, the overruling of a
principle of law is not an outcome of appellate jurisdiction but a
consequence of its inherent power. This inherent power can be
exercised as long as a previous decree vis-à-vis a lis inter partes is
not affected”.
(f) Further, a Seven-Judge Bench of this Court speaking through
Chandrachud, C.J. in Special Courts Bill, 1978, In RE (1979) 1
SCC 380 , observed that it is always open to this Court to re-
examine the question already decided by it and to overrule, if
necessary, the view earlier taken by it. But insofar as all other
Courts in the territory of India are concerned, they ought to be
bound by the view expressed by this Court even in the exercise of
its advisory jurisdiction under Article 143(1) of the Constitution of
India.
Although the principle of stare decisis is not applicable to this
Court, on the strength of Article 137 of the Constitution of India,
67
this Court, in a subsequent judgment, can overrule a previous
judgment but the same would not unsettle the dictum in the
judgment overruled inter partes . Further, the overruled judgment
which has held the field is bound to be followed in all other cases
till the subsequent judgment overruling the earlier judgment is
passed.
State of West Bengal vs. Kamal Sengupta (2008) 8 SCC
(g) In
612 , Section 22(3) of the Administrative Tribunal Act, 1985 came
up for consideration in the context of the power of review. While
dealing with the said question, it was held that a Tribunal
established under the aforesaid Act is entitled to review its order
or decision if either of the grounds enumerated in Order XLVII
Rule 1 CPC was available. In that case, the question, whether, the
subsequent contra judgment by the same or a superior Court on a
point of law can be treated as an error apparent on the face of the
record for the purpose of review of an earlier judgment, was
considered as there was a divergence of opinion among the High
Courts on the said question. It was observed that in view of there
being a dichotomy of opinion on the issue, the Law Commission
took cognizance of the same and suggested an amendment to
Order XLVII Rule 1 CPC which led to the insertion of the
68
Explanation after Order XLVII Rule 2 CPC. The following cases
were referred to in the aforesaid judgment:
(i) Hari Sankar Pal vs. Anath Nath Mitter 1949 FCR 36, a
Five-Judge Bench decision of the Federal Court was alluded
to, wherein it was observed that if a decision is erroneous in
law, the same is certainly no ground for ordering review.
Moreover, if the case had been decided erroneously, the error
could not be construed as being one apparent on the face of
the record justifying the Court to exercise its power of review
under Order XLVII Rule 1 CPC.
(ii) Parison Devi vs. Sumitri Devi
Reliance was also placed on
(1997) 8 SCC 715 and it was observed that there is a clear
distinction between an erroneous decision and an error
apparent on the face of the record. While the first can be
corrected by the higher forum, the latter only can be
corrected by exercise of the review jurisdiction. A review
petition has a limited purpose and cannot be allowed to be
“an appeal in disguise”.
(iii) Nalagarh Dehati Coop. Transport Society Ltd. vs. Beli
In
Ram AIR 1981 HP 1 , a Full Bench of the Himachal Pradesh
High Court considered the Explanation and held that a
69
subsequent judgment of the Supreme Court or a Larger
Bench of the same Court taking a contrary view on the point
covered by the judgment does not amount to a mistake or
error apparent on the face of the record of the judgment
sought to be reviewed.
nd
(iv) Reference was also made to Gyan Chandra Dwivedi vs. 2
ADJ, Kanpur AIR 1987 All 40, in which it was observed
that almost all the High Courts except Kerala High Court
were unanimous in their opinion of the fact that if a point of
law in a judgment has been altered by a subsequent decision
of the superior Court in another case, the same could not
afford a valid ground for the review of the judgment.
(v) Further, with reference to Netaji Cricket Club (supra), on
which reliance has been placed by the review petitioners, it
was observed that the consideration of the exercise of review
jurisdiction in that case, based on a subsequent event was
confined to purely the facts of the said case involving a
controversy between rival Cricket Associations. Hence, it was
opined that the decision in Netaji Cricket Club could not be
applied as a general ratio.
70
While delineating the principles from the aforesaid
judgments, inter alia, the following principles relevant to the
instant cases are reiterated:
i) the expression “any other sufficient reason” appearing in
Order XLVII Rule 1 CPC has to be interpreted in light of
other grounds specified in the said provision.
ii) an erroneous order/decision cannot be corrected in the
guise of exercise of power of review.
(h) In a recent judgement dated 18.08.2022 in Civil Appeals Nos.
5503-5504 of 2022 arising out of SLP (C) Nos. 9602-9603 of 2022
along with Civil Appeal No. 5505 of 2022 arising out of SLP (C)
No. 11290 of 2022, a Three-Judge Bench of this Court in the case
of S. Madhusudhan Reddy vs. V. Narayana Reddy (2022) SCC
OnLine SC 1034 had made specific reference to the
aforementioned cases of Chajju Ram vs. Neki AIR 1922 P.C 112
and Moran Mar Basselios Catholics vs. Most Rev. Mar Paulose
Athanasius (supra) wherein the words “any other sufficient
reason appearing in Order XLVII Rule 1 CPC” was defined to
mean “a reason sufficient on grounds at least analogous to those
specified in the Rule.” In making reference to these cases, the
Three-Judge Bench reiterated that an essential principle for
71
exercising review jurisdiction under Order XLVII Rule 1 CPC is
that the review will be maintainable for “any other sufficient
reason”, and has narrowed the scope of this ground to mean a
reason sufficient on grounds at least analogous to those specified
in the rule.
(i) In the aforesaid case Union of India vs. Sandur Manganese &
Iron Ores Ltd. & Ors. (2013) 8 SCC 337 has also been adverted
to wherein this Court delineated on some of the grounds as to
when the review will not be maintainable as under: -
“(i) A repetition of old and overruled argument
is not enough to reopen concluded
adjudications,
(ii) Minor mistakes of inconsequential import,
(iii) Review proceedings cannot be equated
with the original hearing of the case,
(iv) Review is not maintainable unless the
material error, manifest on the face of the
order, undermines its soundness or results
in miscarriage of justice,
(v) A review is by no means an appeal in
disguise whereby an erroneous decision is
re-heard and corrected but lies only for
patent error,
(vi) The mere possibility of two views on the
subject cannot be a ground for review,
(vii) The error apparent on the face of the
record should not be an error which has to
be fished out and searched,
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(viii) The appreciation of evidence on record is
fully within the domain of the appellate
court, it cannot be permitted to be
advanced in the review petition, and
(ix) Review is not maintainable when the same
relief sought at the time of arguing the
main matter had been negatived.”
47. In fact, in State of Haryana vs. G.D. Goenka Tourism
Corporation Corporation Ltd. (2018) 3 SCC 585 , this Court
directed that pending a final decision on making a reference to a
Larger Bench on the interpretation of Section 24 of the L.A. Act, 2013,
the High Courts ought not to deal with any case relating to the said
interpretation. Therefore, between 21.02.2018 till the date of
pronouncement of the judgment by the Larger Bench in Indore
Development Authority i.e., 06.03.2020, the High Courts were
requested not to deal with cases arising under Section 24(2) of the L.A.
Act, 2013, and its applicability to acquisition arising under L.A. Act,
1894, i.e. only insofar as acquisition initiated under L.A. Act, 1894.
But insofar as cases which were decided prior to the aforesaid
directions issued by this Court or the High Court or cases decided
even by this Court on the strength of the dictum in Pune Municipal
Corporation cannot be set at naught between the parties to those
cases. The judgment in Pune Municipal Corporation having been
overruled, it would only lose its value as a precedent subsequent to
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the dictum of the Larger Bench in Indore Development Authority
and therefore, cannot be cited as a precedent.
| 48. | Hence |
|---|
Explanation to Order XLVII Rule 1 CPC, these review petitions are not
maintainable and the judgment and the orders of this Court ought not
be reviewed and the review petitions are liable to be dismissed.
49. It is also important to bear in mind that in various High Courts
across the country following the judgment in Pune Municipal
Corporation,
Writ Petitions have been disposed of and the said
decisions passed in the said writ petitions or intra court appeals, as
the case may be, may have attained finality and binding on the parties
thereto. If these review petitions are allowed and are held to be
maintainable there would be hundreds of review petitions which would
be filed seeking review of the decisions passed by various High Courts
in writ petitions following the judgment in Pune Municipal
Corporation . This would open a Pandora’s Box and upset the binding
nature of the decisions between the parties and be contrary to the
doctrine of finality in litigation.
50. In Indore Development Authority vs. Shailendra (supra), a
majority of two Hon’ble Judges in paragraph 217 while opining that,
the judgment rendered in Pune Municipal Corporation and other
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decisions following Pune Municipal Corporation are per incuriam
observed that the “decisions rendered on the basis of Pune Municipal
Corporation are open to be reviewed in appropriate cases on the basis
of this decision”. However, the Larger Bench in Indore Development
Authority did not observe the above, either in paragraph 365 of the
judgment or any other paragraph. In fact, the reason as to why a
Larger Bench of five Judges was constituted, was because a majority
of 2:1 in Indore Development Authority vs. Shailendra had taken a
view that Pune Municipal Corporation was per incuriam and also the
decision in Pune Municipal Corporation was by a Two-Judge Bench.
Therefore, in order to make an authoritative pronouncement on the
question of law concerning the interpretation of Section 24(2) of L.A.
Act, 2013 and since there were many orders passed by this Court
questioning the correctness of the decision in Pune Municipal
Corporation , a Larger Bench of five Judges was constituted by
Hon’ble the Chief Justice of India. Now, the unanimous judgment of
the Larger Bench of five Judges holds the field. However, in paragraph
365 of the said judgment or in any other paragraph, there is no
observation that on overruling the decision in Pune Municipal
Corporation as well as all decisions following Pune Municipal
Corporation , the overruled decisions have to be reviewed. The said
observation is conspicuous by its absence obviously for the reason
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that such a review is impermissible having regard to the Explanation
to Order XLVII Rule 1 CPC which aspect has been elaborately
discussed above. In fact, the Explanation to Order XLVII Rule 1 CPC
has not been noticed by the two learned Judges constituting the
majority in Indore Development Authority vs. Shailendra.
51. There is another aspect which ought to be considered. That in
two matters i.e., in the very case of Pune Municipal Corporation
(decided on 08.02.2018) which has been overruled by Indore
Development Authority (decided on 06.03.2020) by a Bench of three
Judges but the judgment has also been recalled vide Order dated
16.07.2020. Similarly, another judgement dated 31.08.2016 passed by
this Court following Pune Municipal Corporation has been recalled
by order dated 15.02.2022 by this very Bench. I must be forthright in
saying that the recalling of the said Orders/Judgment dated
08.02.2018 and 31.08.2016 was done so in the absence of any
arguments being advanced on the maintainability of review petitions
itself as in the present cases and without taking into consideration the
Explanation to Order XLVII Rule 1 CPC. I find that the Explanation to
Order XLVII Rule 1 CPC is a bar to the very maintainability of these
review petitions in these cases. Hence, before hearing the Civil Appeals
/ Special Leave Petitions on merits, the Orders passed recalling the
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decision passed earlier would call for reconsideration.
All judgments and orders which have been recalled till date
Indore Development Authority
subsequent to the judgment in on the
basis that Pune Municipal Corporation was incorrectly decided are
also not in accordance with law in view of the discussion made above.
52. Having held that the judgments/orders sought to be reviewed by
the petitioners is impermissible in law, the ground realities would also
have to be now taken into consideration on account of the passage of
time. It is noted that Section 24 of the L.A. Act, 2013 is in the nature
of a saving clause which is evident on a reading of the same, including
the proviso to Sub-Section 2 of Section 24 of the L.A. Act, 2013. The
object is to save the acquisition as far as possible. Possibly taking a
cue from the proviso, this Court in the impugned judgments reserved
liberty to the petitioners herein to initiate acquisition proceedings
afresh within one year in some of the cases failing which the land was
to be returned to the land owners if in possession of the review
petitioners herein. Thus, if no fresh acquisition proceedings are
initiated within the said period of one year by issuing a notification
under Section 11 of the L.A. 2013 Act and if the review petitioners
herein are in possession of the land, the physical possession thereof
shall be returned to original land owners.
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53. In the circumstances, the only relief that can be granted to the
review petitioners/applicants is to extend the period for initiation of
acquisition under the provisions of L.A. Act, 2013 to a period of one
year from today. Till then, in those cases where physical possession of
the land has already been taken over by the acquiring body or has
been handed over to the beneficiary the same shall continue to remain
with the acquiring body or the beneficiary, as the case may be.
54. Thus, only a limited relief is being given to the review
petitioners/applicants and impugned judgments/orders of this Court
are not being reviewed in the review petitions. There is a delay in filing
the same in certain cases. This is owing to the passage of time from
the date of passing the judgments/orders sought to be reviewed and
the uncertainty in the interpretation of Section 24 (2) of L.A. Act, 2013
and due to Covid-19 and one year time being granted to initiate fresh
acquisition, in the impugned order itself. Hence, the said delay is
condoned.
55. Where no such direction has been issued in the impugned orders
and the Special Leave Petitions have been dismissed, the petitioners
are at liberty to initiate fresh acquisition proceedings under the L.A.
Act, 2013, if so advised.
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56. In the result, the review petitions are disposed of in the above
terms.
No costs.
…..……………………J.
[B.V. NAGARATHNA ]
NEW DELHI;
17 MARCH, 2023.
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