Full Judgment Text
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CASE NO.:
Appeal (civil) 2395 of 2000
PETITIONER:
Swamy Atmananda & Ors.
RESPONDENT:
Sri Ramakrishna Tapovanam & Ors.
DATE OF JUDGMENT: 13/04/2005
BENCH:
B.P. Singh & S.B. Sinha
JUDGMENT:
J U D G M E N T
WITH CIVIL APPEAL NO. 3740 OF 2000
S.B. SINHA, J :
The question as to whether the jurisdiction of the Civil Court stands
ousted in terms of Sections 53 and 53A of the Tamil Nadu Recognized
Private Schools (Regulation) Act, 1973 (hereinafter referred to as ’the Act’)
falls for consideration in this appeal which arises out of a judgment and
order dated 13.10.1999 passed by a Division Bench of the Madras High
Court in A.S. No.568 of 1998 whereby and whereunder the appeal preferred
by the Appellants herein from a judgment and decree dated 7.8.1998 passed
in O.S. No.1254 of 1994 by the Subordinate Judge, Tiruchirapally decreeing
the plaintiff-Respondents’ suit, was dismissed.
BACKGROUND FACTS :
The First Respondent herein (hereinafter referred to as ’Tapovanam’)
is a registered Society. It was founded by Swamy Chidbavananda. It has
been functioning since 1942. The said Swamy Chidbavananda used to
propagate the ideals of Swamy Ramakrishna Param Hans and Swamy
Vivekananda. It started functioning at Ooty and later shifted to
Thiruparaithurari. A number of branches were established at various places,
namely, Thiruvedagam, Courtallam, Chitraichavadi, Thirunelveli,
Kodaikanal, Ramanathampuram, Rameshwaram, Salem and Karur.
Educational institutions and ashrams as well as dispensaries were established
at all these places. Swamy Chidbavananda during his life time acquired
various properties by collecting funds from the public, which partook the
character of Trust property.
The First Appellant herein was an employee in a mill at Coimbatore.
He joined ’Tapovanam’ as an ordinary member. He became Sanyasi in 1970
whereupon he was assigned a job at Thiruvedagam and later transferred to
Karur in the year 1976. ’Tapovanam’ established a number of educational
institutions at Karur from donations collected from the public as also with
the funds available through the trusts called Vairaperumal Trust and
Tathinagireswarar Trust, the object whereof was to dedicate their properties
to Tapovanam to enable it to establish educational institutions.
It is not in dispute that in the year 1987, the First Appellant herein got
a Trust registered known as ’Sri Ramakrishna Ashramam Trust’. A claim
was set up by him to the effect that all the institutions at Karur had been
founded by him from his own money as well as the money collected by him
individually. He filed a suit in the Court of the Subordinate Judge, Karur,
marked as O.S. No.251 of 1991, for a declaration that he along with other
members were the owners as well as founders of the educational agencies of
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the six educational institutions mentioned in the plaint. The said suit was
dismissed as withdrawn whereupon he filed another suit, marked as O.S.
No.1368 of 1990 in the Court of the District Munsif at Karur, which was
subsequently transferred to the Court of Subordinate Judge, Karur and re-
numbered as O.S. No.459 of 1991, the subject-matter whereof was two
educational institutions, namely, Sri Vivekananda Higher Secondary School
for Boys and Sri Sarada Girls Higher Secondary School at
Pasupathipalayam. In the said suit a question arose as regard the status of
the First Appellant vis-‘-vis the First Respondent herein (Tapovanam) as
regard ’educational agency’ in terms of the provisions of the said Act.
In the said suit the Trial Judge framed the following issues :
(i) Whether the Plaintiff No.1-trust was in management and
whether it was in existence?
(ii) Whether it was legally constituted?
(iii) Whether the plaintiffs were the owners of the suit Schedule
Institutions?
(iv) Whether the Defendant No.1 was not the Educational Agency
of the Plaint Schedule Schools?
(v) Whether the Plaintiff No.2 functioned as an agent of the
Defendant No.1?
(vi) Whether the Defendant No.1 had no right over the Plaint
Schedule Schools?
(vii) Whether the suit was maintainable?
(viii) Whether the Plaintiffs were entitled to the declaration prayed
for?
(ix) To what relief the Plaintiffs were entitled to?
The said suit was dismissed by a judgment and order dated 30.4.1992,
by the Court of Subordinate Judge, Karur, inter alia, holding :
(i) The Appellant No.2 Trust was not legally constituted and was
never in existence.
(ii) The Appellant No. 1 was an agent of Tapovanam and
Tapovanam was the owner and Educational Agency of the
Schools in question.
The Appellants preferred an appeal thereagainst in the Court of the
District Judge, Trichirapally, which was marked as A.S. No.288 of 1992.
The said appeal was also dismissed by a judgment and order dated
17.2.1993, inter alia, on the following findings :
(i) Defendants 3 and 4, were misguided by 2nd Plaintiff in forming
the 1st Plaintiff Trust.
(ii) The Trust deed, Ext. A-1 was not proved, not genuine and did
not come into existence.
The Appellant Nos. 1 and 2 preferred a Second Appeal thereagainst
in the High Court of Madras which was also dismissed by a judgment and
order dated 28.4.1997, holding :
(i) Appellant No.1 herein was only an agent of Tapovanam.
(ii) Appellant No.2 herein did not come into existence.
A Review Petition filed thereagainst was also dismissed by an order
dated 13.9.1999.
During the pendency of the said proceeding before the High Court,
Tapovanam filed a suit in the Court of Sub Judge, Karur, marked as O.S.
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No. 273 of 1992 on or about 6.7.1992, which was subsequently transferred
to the Court of Subordinate Judge, Trichirapally and renumbered as O.S.
No.1254 of 1994, against the Appellants and 13 others for a declaration
that it was the absolute owner of the suit properties more fully and in details
described in Schedule-A therein, and furthermore it was the educational
agency in respect of the institutions mentioned therein. The Appellants
herein in their written statement, inter alia, contended that the Appellant
Nos. 2 and 3 were independent trusts and no money in relation thereto was
contributed by Tapovanam for establishing the institutions and furthermore
the Appellant No.1 herein was not its agent.
In said suit filed before the learned Subordinate Judge, Trichirapally,
the following issues were framed :
"(i) Whether the Plaintiff is entitled for declaration and
possession as prayed for?
(ii) Whether the Plaintiff is entitled for an injunction as
against the 1st defendant from projecting himself as the
Secretary and Correspondent?
(iii) Whether the Plaintiff is entitled for accounting relief?
(iv) Whether assignment deeds dated 22.5.1987 and
15.7.1989 are enforceable against the Plaintiff?
(v) Whether the Plaintiff is the owner of the B-Schedule
properties or any other properties acquired by the 1st
defendant?
(vi) To what relief?
(vii) Whether the suit claim had been valued properly and
whether correct Court fee had been paid on the Plaint?"
The said suit filed by Tapovanam was decreed, inter alia, on the
premise that the finding in the earlier suit the First Appellant herein having
been held to be an agent of Tapovanam being binding upon the Appellants,
the same would attract the principle of res judicata. An appeal preferred by
the Appellants before the High Court of Madras, marked as A.S. No.568 of
1998 was dismissed by the impugned judgment holding :
(i) The earlier judgment is O.S. No.459 of 1991 confirmed in A.S.
No.288 of 1992 and Second Appeal No.604 of 1993 constituted
res judicata.
(ii) In view of Rule 3 of the Rules of Tapovanam the properties
belonged to the Appellant Nos. 2 and 3 automatically became
the property of Tapovanam.
(iii) The suit could not be dismissed for non-compliance with Order
31 Rule 2 CPC since the same was not raised before the trial
court.
The Appellants are, thus, before us.
SUBMISSIONS :
Mr. K. Sukumaran, the learned Senior Counsel appearing on behalf of
the Appellants, would principally raise two contentions in support of this
appeal. Firstly, relying on V. Rajeshwari (Smt.) vs. T.C. Saravanabava
[(2004) 1 SCC 551], the learned counsel contended that no issue as regard
applicability of the principle of res judicata having been framed by the Trial
Court, the impugned judgment is vitiated in law. Secondly the jurisdiction
of the Civil Court being barred in view of Sections 53 and 53A of the Act,
the judgment and decree passed in the earlier suit being a nullity, the
principle of res judicata will have no application. Reliance, in this behalf,
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has been placed on Mohanlal Goenka vs. Benoy Krishna Mukherjee and
Others [(1953) SCR 377].
Mr. L. Nagheshwar Rao, the learned Senior Counsel appearing on
behalf of the Respondents, on the other hand, would support the judgment
under appeal contending that although no issue as regard res judicata was
framed, the parties proceeded at the trial knowing fully well that such an
issue is involved and in fact all the relevant documents pertaining to the
earlier suit were brought on record and in that view of the matter, the
Appellants cannot be said to have been prejudiced thereby.
The learned counsel would urge that the findings of the learned
Subordinate Judge in the instant case would come within the purview of the
exception carved out by this Court in V. Rajeshwari (supra). It was
submitted that Section 53A of the Act being an exception to Section 53
thereof, the Civil Court had the necessary jurisdiction to determine the issue
as to whether the plaintiffs or the defendants were the educational agencies
in terms of the provisions of the said Act.
RES JUDICATA :
O.S. No.1368 of 1990 was filed by the Appellant Nos. 1 and 2 against
Tapovanam and three others, namely, Swamy Bodhananda Swamy
Guhananda and Swamy Amalananda.
In the said suit, it was accepted that the First Appellant was a disciple
of Swamy Chidbhavananda. It was claimed that the six educational
institutions, namely Vivekananda Primary School having standard 1 to 5 in
Pasupathipalayam, Karur Taluk; (2) Vivekananda English School having
standard 1 to 5 at Pasupathipalayam, Karur Town, Karur Taluk; (3)
Vivekananda Higher Secondary School (Boys); (4) Vivekananda
Matriculation Higher Secondary School at Pasupathipalayam, Kaur Taluk;
(5) Sri Saratha Girls Higher Secondary School at Pasupathipalayam, Karurn
Taluk, and (6) Sri Saratha Nikathan College of Science for Women at Sri
Sarathapuri, Karur, were founded by the First Appellant herein alleging that
the funds for the educational institutions and ashrams were raised from
donations of the devotees and general public. He stated that he was a
Correspondent and Secretary of the educational institutions ever since they
were established. It was contended that Tapovanam neither established nor
administered the said institutions, nor contributed any money for the
establishment thereof. It was alleged that the Trust had been founded to
manage the Ashrams, temples, schools and colleges by the First Appellant
herein and Tapovanam had no right, title or interest over the ashrams and the
educational institutions established by him. The said suit was filed on the
premise that Tapovanam had been claiming to be the educational agency of
the schools. The cause of action for the said suit is said to have arisen on the
dates of establishment of plaintiff’s ashram and on various dates when all
the educational institutions were established as also on 17.11.1990 when the
defendants threatened to interfere with the administration of educational
institutions.
Tapovanam in its written statement not only denied and disputed the
said claim of the Appellants but set up a title over the properties involved
therein in itself. It was averred that Tapovanam was the educational agency
in respect of these institutions.
The parties, therefore, in the aforementioned suit litigated, inter alia,
on the question of existence of the trust said to have been founded by the
First Appellant as also right of the parties to act as educational agency of the
schools. The High Court in its judgment dated 28.4.1997 passed in Second
Appeal No.604 of 1993 noticed all the contentions of the parties and
recorded that a concession had been made by the Appellants herein that
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Tapovanam was the educational agency in respect of the educational
institutions and all the documents stood in its name. The plea of the
Appellants herein that the documents were created in the name of
Tapovanam by the Appellant No.1 out of respect and his closeness with its
founder Swamy Chidbhavananda, was negatived.
In the Second Appeal, the High Court furthermore noticed that a
concurrent finding of fact had been arrived at to the effect that the schools in
question were recognized in the name of Tapovanam and even for the
recognition in the name of its officer, necessary application was filed by the
First Appellant herein, who was then the Correspondent-cum-Secretary of
the Schools, holding :
"\005It was also admitted that all the official records stand
in the name of the first defendant, and even the
correspondence for the same was taken only by the
second plaintiff. It is also not disputed that second
plaintiff was acting as Correspondent cum Secretary of
these educational institutions. The schools have been
constructed in a lease hold premises, and the lease deed
was also taken in the name of the first defendant. It is in
this background, we have to consider how far the
plaintiffs’ case could be sustained in this case."
The High Court noticed the provisions of the Act as also those of the
Trust Act and in particular Section 88 thereof, and opined :
"\005If the person is bound to protect the interest of
another and gains any advantage, that advantage also
must go to the persons whose interest he is bound to
protect. So, even if by chance second plaintiff can
contend that he is the owner, since he was acting
throughout only as an agent of the first defendant-society,
his claim for ownership cannot be put forward."
The Court negatived the contention of the Appellants herein as regard
title in respect of the schools in question observing :
"Courts below have rightly come to the conclusion
that the second plaintiff has no claim as put forward and
as a Sanyasi, he should not have put forward such a
claim. A person who is bound to promote the interest of
the Ashramam and who says that he was brought to this
world by his Guru, is now acting against its own interest.
The confidence reposed on the second plaintiff has really
been misused by him. The courts below have rightly
dismissed his claim."
In its plaint, Tapovanam extensively referred to the factum of
institution of the earlier suit and also the concession of the First
Appellant herein to the effect that all the documents stood in its name.
It was categorically stated that all the contentions of the Appellants had
been rejected holding that Tapovanam alone was the owner, founder
and educational agency in respect of all the educational institutions and
the First Appellant herein was only its agent, correspondent and person
in charge. The purported assignment made by the First Appellant
herein in favour of the other Appellants in relation to certain lands were
questioned, inter alia, on the premise that in the earlier suit such
assignments had been found to be invalid and the First Appellant herein
had been acting on behalf of Tapovanam in the fiduciary capacity and
had no independent right in himself. In the said suit, the following
reliefs were claimed :
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(a) Holding that the plaintiff is the absolute
owner of the suit properties and educational agency
with respect to the suit institutions described in
Schedule A and the properties in Schedule B and for
a consequential relief of possession and directing the
first defendant to hand over charge relating to the suit
institutions and properties described in Schedule A
and B.
(b) Directing the first defendant to render a
true and proper accounts with regard to the income
from the suit properties for the last three years and till
he actually hands over charge.
(c) Granting a permanent injunction
restraining the first defendant from interfering with
the right of the plaintiff to manage the suit
institutions and properties described in Schedule A
and B or collecting any amounts for and on behalf of
the suit institutions either projecting himself as the
founder, secretary or correspondent or in any other
capacity.
(d) Granting such further or other reliefs as
this Hon’ble Court may deem fit and proper in the
circumstances of the case and render justice.
The fact giving rise to the cause of action for the said suit is
stated in paragraph 19 of the plaint and one of the facts constituting
cause of action was said to be the dismissal of the earlier suit and on
subsequent dates when the First Appellant refused to hand over the
collections made illegally in respect of the suit institutions in spite of
the judgment of the court.
Osborn’s Concise Law Dictionary defines ’cause of action’ as the fact
or combination of facts which give rise to a right or action.
In Black’s Law Dictionary it has been stated that the expression cause
of action is the fact or facts which give a person a right to judicial relief.
In Stroud’s Judicial Dictionary a cause of action is stated to be the
entire set of facts that give rise to an enforceable claim; the phrase comprises
every fact which, if traversed, the plaintiff must prove in order to obtain
judgment.
A cause of action, thus, means every fact, which, if traversed, it
would be necessary for the plaintiff to prove in order to support his
right to a judgment of the Court. In other words, it is a bundle of facts
which taken with the law applicable to them gives the plaintiff a right
to relief against the defendant. It must include some act done by the
defendant since in the absence of such an act no cause of action can
possibly accrue. It is not limited to the actual infringement of the right
sued on but includes all the material facts on which it is founded.
The status of the First Appellant vis-‘-vis Tapovanam was, thus,
the subject matter of determination in the earlier suit. A finding as
regard relationship between the parties rendered in the said suit is
binding upon the First Appellant herein. Similarly, the finding to the
effect that the Second Appellant was constituted illegally and did not
derive any right, title or interest over any property standing in its name
is also binding upon the Appellants.
The object and purport of principle of res judicata as contended
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in Section 11 of the Code of Civil Procedure is to uphold the rule of
conclusiveness of judgment, as to the points decided earlier of fact, or
of law, or of fact and law, in every subsequent suit between the same
parties. Once the matter which was the subject-matter of lis stood
determined by a competent court, no party thereafter can be permitted
to reopen it in a subsequent litigation. Such a rule was brought into the
statute book with a view to bring the litigation to an end so that the
other side may not be put to harassment.
The principle of res judicata envisages that a judgment of court of
concurrent jurisdiction directly upon the point would create a bar as
regard a plea between the same parties upon some other matter directly
in question in another court and that the judgment of the court of
exclusive jurisdiction direct in point.
The doctrine of res judicata is conceived not only in larger public
interest which requires that all litigation must, sooner than later, come
to an end but is also founded on equity, justice and good conscience.
In Sulochana Amma vs. Narayanan Nair [(1994) 2 SCC 14], it
was held :
"5. Section 11 of CPC embodies the rule of
conclusiveness as evidence or bars as a plea as issue tried
in an earlier suit founded on a plaint in which the matter
is directly and substantially in issue and became final. In
a later suit between the same parties or their privies in a
court competent to try such subsequent suit in which the
issue has been directly and substantially raised and
decided in the judgment and decree in the former suit
would operate as res judicata. Section 11 does not create
any right or interest in the property, but merely operates
as a bar to try the same issue once over. In other words, it
aims to prevent multiplicity of the proceedings and
accords finality to an issue, which directly and
substantially had arisen in the former suit between the
same parties or their privies, been decided and became
final, so that parties are not vexed twice over; vexatious
litigation would be put to an end and the valuable time of
the court is saved. It is based on public policy, as well as
private justice. They would apply, therefore, to all
judicial proceedings whether civil or otherwise. It equally
applies to quasi-judicial proceedings of the tribunals
other than the civil courts."
The Appellants did not object to the raising of the said plea by
Tapovanam in the suit. As the said plea had adequately been raised in
the plaint, in relation whereto the Appellants herein had adequate
opportunity to traverse and furthermore both the parties having brought
on records all the relevant documents the Appellants herein cannot be
said to have been prejudiced in any manner by reason of non-framing
of the issue as regard res judicata.
We have noticed hereinbefore that Tapovanam in its suit
extensively referred to the lis between the parties and the findings of
the court in the earlier proceedings. The First Appellant herein in his
written statement, inter alia, contended that the matter was subjudice as
the Second Appeal was then pending adjudication. It was specifically
stated :
"This defendant has filed the 2nd appeal S.A.
No.604/93 on the file of the High Court of Judicature
at Madras against the judgment and decree in A.S.
No.288/92. The 2nd appeal is pending adjudication.
It is therefore, clear that the entire matter is
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subjudice\005"
It was urged that no relief would be granted with regard to the A
schedule properties unless and until an adjudication is made in Second
Appeal No. 604 of 1993. Tapovanam, therefore, in its written
statement did not deny or dispute that the issues which were germane
for determination of the suit filed by Tapovanam arose for
consideration in the earlier suit. It reiterated its claim that the
properties in suit were being held by him as the managing trustee of the
Appellants which plea, as noticed hereinbefore, had subsequently been
rejected by the court of competent jurisdiction. The Trial Court while
determining the issues took into consideration the fact that the
documents mostly relied upon by the parties in the previous
proceedings had been reproduced and marked as exhibits in the said
suit also. It was held :
"\005The deeper probe and study of the bolts and nuts
of these material and vital documents, unequivocally
points to one and the only conclusion that from out of
the nucleus of the plaintiff-Tapovanam, rather from
out of the seeds sown by the plaintiff-Tapovanam, all
these suit properties have emanated and emerged out,
of course with the each and every nerve of pain and
strain of the 1st defendant, as its member servant."
The Court found the evidence of Appellant No. 1 herein as
unconvincing. It observed that the entire case was a shallow. The Court
took note of Clause 3(b) of Memorandum of Association of the First
Respondent which is as under:
"Monastic members shall not own personal
properties. All properties gifted to them
automatically become the property of the
TapovanaM."
The Court furthermore considered the matter on merits holding
that the First Appellant has failed to prove his case.
In V. Rajeshwari (supra), this Court while emphasizing the need
of raising the relevant plea as well as framing appropriate issues,
observed :
"12. The plea of res judicata is founded on proof of
certain facts and then by applying the law to the facts so
found. It is, therefore, necessary that the foundation for
the plea must be laid in the pleadings and then an issue
must be framed and tried. A plea not properly raised in
the pleadings or in issues at the stage of the trial, would
not be permitted to be raised for the first time at the stage
of appeal [see (Raja) Jagadish Chandra Deo Dhabal Deb
v. Gour Hari Mahato, Medapati Surayya v. Tondapu
Bala Gangadhara Ramakrishna Reddi and Katragadda
China Anjaneyulu v. Kattaragadda China Ramayya].
The view taken by the Privy Council was cited with
approval before this Court in State of Punjab v. Bua Das
Kaushal. However, an exception was carved out by this
Court and the plea was permitted to be raised, though not
taken in the pleadings nor covered by any issue, because
the necessary facts were present to the mind of the parties
and were gone into by the trial court. The opposite party
had ample opportunity of leading the evidence in rebuttal
of the plea. The Court concluded that the point of res
judicata had throughout been in consideration and
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discussion and so the want of pleadings or plea of waiver
of res judicata cannot be allowed to be urged."
(Emphasis supplied)
This is, therefore, not a case where there was not adequate
pleadings. On the other hand, it is a case where the documents as also
the judgment produced in the previous suit were brought on record. The
judgment contained extensive details of statement of pleadings and
issues which could be taken as enough to prove the plea of res judicata.
Furthermore, the First Appellant in his written statement by necessary
implication accepted that the plea as regard title over the properties as
described in Schedule A of the plaint as also other issues raised by the
Tapovnam in his suit would depend upon the findings of the High
Court in the Second Appeal which was then pending.
One of the facts which was necessary to be pleaded and proved
relates to the relationship between the parties i.e. First Appellant was
agent of the First Respondent or he was acting of his own. Such a
question was raised and answered in the suit filed by the First
Appellant herein. His plea that he collected donations and also
invested his money in acquiring the properties albeit in the name of the
First Respondent was negatived.
Thus, the finding arrived at in the earlier suit, inter alia, was that
the First Respondent herein was not the benamidar of the First
Appellant but in effect and substance was its agent.
This Court recently in Bhanu Kumar Jain vs. Archana Kumar and
Another, [AIR 2005 SC 626], while drawing a distinction between the
principles of ’res judicata’ and ’issue estoppel’ noticed the principle of
cause of action estoppel in the following terms :
"There is a distinction between ’issue estoppel’
and ’res judicata’ [See Thoday vs. Thoday \026 1964 (1)
All. ER 341]
Res judicata debars a court from exercising its
jurisdiction to determine the lis if it has attained finality
between the parties whereas the doctrine issue estoppel is
invoked against the party. If such an issue is decided
against him, he would be estopped from raising the same
in the later proceeding. The doctrine of res-judicata
creates a different kind of estoppel viz Estoppel By
Accord.
xxx xxx xxx
The said dicta was followed in Barber vs.
Staffordshire Country Council, (1996) 2 All ER 748. A
cause of action estoppel arises where in two different
proceedings identical issues are raised, in which event,
the latter proceedings between the same parties shall be
dealt with similarly as was done in the previous
proceedings. In such an event the bar is absolute in
relation to all points decided save and except allegation
of fraud and collusion. [See C. (a minor) Vs. Hackney
London Borough Council, (1996) 1 All ER 973].
If the parties went to the trial knowing fully well the real issues
involved and adduced evidence in such a case without establishing
prejudice, it would not be open to a party to raise the question of non-
framing of particular issue.
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In Nedunuri Kameswaramma vs. Sampati Subba Rao [AIR 1963
SC 884], it was observed :
"No doubt, no issue was framed, and the one,
which was framed, could have been more elaborate;
but since the parties went to trial fully knowing the
rival case and led all the evidence not only in support
of their contentions but in refutation of those of the
other side, it cannot be said that the absence of an
issue was fatal to the case, or that there was that mis-
trial which vitiates proceedings. We are, therefore, of
opinion that the suit could not be dismissed on this
narrow ground, and also that there is no need for a
remit, as the evidence which has been led in the case
is sufficient to reach the right conclusion. Neither
party claimed before us that it had any further
evidence to offer\005."
It is, however, beyond any doubt or dispute that if a court lacks
inherent jurisdiction, its judgment would be a nullity and, thus, the
principle of res judicata which is in the domain of procedure will have
no application. [See Mohanlal Goenka (supra), Ashok Leyland Ltd. vs.
State of Tamil Nadu and Another, (2004) 3 SCC 1 and Management of
M/s Sonepat Cooperative Sugar Mills Ltd. vs. Ajit Singh, 2005 (2)
SCALE 151 : 2005 (3) SCC 232].
In Ishwardas Vs. the State of Madhya Pradesh and others [AIR 1979
SC 551], this Court held:
"\005In order to sustain the plea of res judicata it is
not necessary that all the parties to the two
litigations must be common. All that is necessary
is that the issue should be between the same parties
or between parties under whom they or any of
them claim\005"
We may now consider some of the decisions cited by Mr. Sukumaran.
M/s. R.N. Ganekar & Co. Vs. M/s. Hindustan Wires Ltd. [AIR 1974
SC 303] relates to a reference under Arbitration Act. The said decision is an
authority for the proposition as regard the interpretation of Section 33 of the
Arbitration Act, 1940. In that case, the Court was concerned with the
validity of arbitration clause contained in a contract if the contract itself is
found to be illegal.
In The Vulcan Insurance Co. Vs. Maharaj Singh and another [AIR
1976 SC 287], this Court was again concerned with the question as to
whether in view of the repudiation of liability by the Appellant therein under
Clause 13 of the insurance policy, a dispute could be referred to arbitration.
The decisions referred under Industrial Disputes Act or the Arbitration
Act will, thus, have no application in the instant case.
JURISDICTION OF CIVIL COURT :
Sections 53 and 53A of the Act read as under :
"53. No Civil court shall have jurisdiction to
decide or deal with any question which is by or under
this Act required to be decided or dealt with by any
authority or officer mentioned in this Act."
53A. (1) Notwithstanding anything contained
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in section 53, whenever any dispute as to the
constitution of any educational agency, or as to
whether any person or body of persons, is an
educational agency, in relation to any private school,
or as to the constitution of a school committee, or as
to the appointment of secretary of the school
committee, arises, such dispute may be referred by
the persons interested or by the competent authority
to the civil court having jurisdiction, for its decision.
(2) Pending the decision of the civil court on a
dispute referred to it under sub-section (1), or the
making of an interim arrangement by the civil court
for the running of the private school, the Government
may nominate an officer to discharge the functions of
the educational agency, the school committee or the
secretary, as the case may be, in relation to the
private school concerned."
Indisputably a dispute with regard to the title over immovable
property will have to be adjudicated in the Civil Court alone. Section
53 merely postulates that the Civil Court will have no jurisdiction to
decide or deal with any question which is by or under the said Act
required to be decided or dealt with by any authority or officer
mentioned in the said Act. Section 5 of the Act whereupon reliance has
been placed by Mr. Sukumaran for advancing the contention that the
matter relating to recognition of schools is required to be decided by an
authority created thereunder cannot be accepted. Section 5 lays down a
procedure as regard necessity to file an application and the contents
thereof for permission to run such schools. Section 4 of the Act
prohibits every person from establishing any school without obtaining
permission of the competent authority save and except in accordance
with the terms and conditions specified in such permission.
A dispute as to who is the real educational agency in relation to a
private school is not a matter which in terms of the provisions of the
said Act would be determined by an authority under the provisions of
the said Act. Section 53A of the Act carves out an exception to Section
53 thereof. In terms of the said provision any dispute as to the
educational institution is to be determined by a Civil Court having
jurisdiction for its decision. The submission of Mr. Sukumaran,
however, is that the jurisdiction of the Civil Court is required to be
invoked in such matters specified therein by way of reference by the
persons interested or by the competent authority. Mr. Sukumaran
would contend that such a reference would be akin to a dispute pending
under the Industrial Disputes Act. We cannot accept the said
contention. A party to a dispute may not join the other in referring the
same to the Civil Court. The party may agree or may not agree
therefor. A person having a grievance as against other must have a
remedy. The maxim ’ubi jus ibi remedium’ is not an empty formality.
The jurisdiction of the Civil Court exemplifies the said doctrine. The
jurisdiction of the Civil Court cannot be held to have been ousted
unless it is so, expressly or by necessary implication, stated in the
statute. In terms of Section 53A of the Act, a dispute as to educational
agency is concededly required to be decided by a Civil Court. How the
jurisdiction of the Civil Court is required to be invoked is a matter to
be examined by the Civil Court. Unlike a private tribunal or a statutory
tribunal which would not derive a jurisdiction unless a reference in
terms of the provisions of the Act is made to it, the Civil Court enjoys a
plenary jurisdiction. Furthermore, if and when a dispute arises before
the competent authority as regard entitlement of an educational agency
in relation to educational institutions, the same must also be referred to
the Civil Court. Statutory authority in terms of Section 5 of the Act
cannot be said to have any jurisdiction to determine such a dispute. A
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statute, as is well-known, must be read in such a manner so as to give
effect to the provisions thereof. It must be read reasonably. A statute
must be construed in such a manner so as to make it workable. The
wordings "referred by the persons interested" would, thus, mean a
person who has a grievance as regard claim of other side relating to
educational agency of the educational institutions. It can be done by
filing a suit before the Civil Suit. The term "persons" which is plural
has been used having regard to the fact that educational agency need
not be a person alone but would also include a society registered under
the Societies Registration Act or a body corporate in terms of the
Companies Act. In any event, if such a dispute within the
contemplation of Section 53A has to be decided by a civil court, it will
not attract the bar under Section 53 which applies only to a question
which is required to be dealt with or decided by any authority or officer
mentioned in the Act.
We may notice that after the Second Appeal was dismissed, the
Appellants herein sought to raise additional grounds in their review
application, as regard the lack of jurisdiction in a Civil Court. The said
plea was negatived.
In Principles of Statutory Interpretation, by G.P. Singh, Ninth
Edition, page 630, it is stated :
"As a necessary corollary of this rule
provisions excluding jurisdiction of civil courts and
provisions conferring jurisdiction on authorities and
tribunals other than civil courts are strictly construed.
The existence of jurisdiction in civil courts to decide
questions of civil nature being the general rule and
exclusion being an exception, the burden of proof to
show that jurisdiction is excluded in any particular
case is on the party raising such a contention. The
rule that the exclusion of jurisdiction of civil courts is
not to be readily inferred is based on the theory that
civil courts are courts of general jurisdiction and the
people have a right, unless expressly or impliedly
debarred, to insist for free access to the courts of
general jurisdiction of the State. Indeed, the principle
is not limited to civil courts alone, but applies to all
courts of general jurisdiction including criminal
courts\005"
In Dhulabhai and Others vs. The State of Madhya Pradesh and
Another [(1968) 3 SCR662], Hidayatullah, CJ summarized the
following principles relating to the exclusion of jurisdiction of civil
courts :
(a) Where the statute gives a finality to the orders of the special
tribunals, the civil court’s jurisdiction must be held to be
excluded if there is adequate remedy to do what the civil courts
would normally do in a suit. Such provision, however, does not
exclude those cases where the provisions of the particular Act
have not been complied with or the statutory tribunals has not
acted in conformity with the fundamental principles of judicial
procedure.
(b) Where there is an express bar of the jurisdiction of the court, an
examination of the scheme of the particular Act to find the
adequacy or the sufficiency of the remedies provided may be
relevant but is not decisive to sustain the jurisdiction of the Civil
Court.
Where there is no express exclusion, the examination of the
remedies and the scheme of the particular Act to find out the
intendment becomes necessary and the result of the inquiry may
be decisive. In the latter case, it is necessary to see if the statute
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creates a special right or a liability and provides for the
determination of the right or liability and further lays down that
all questions about the said right and liability shall be determined
by the tribunals so constituted, and whether remedies normally
associated with actions in Civil Courts are prescribed by the said
statute or not.
(c) Challenge to the provisions of the particular Act as ultra vires
cannot be brought before tribunals constituted under that Act.
Even the High Court cannot go into that question on a revision or
reference from the decision of the tribunals.
(d) When the provision is already declared unconstitutional or the
constitutionality of any provision is to be challenged, a suit is
open. A writ of certiorari may include a direction for refund if
the claim is clearly within the time prescribed by the Limitation
Act but it is not a compulsory remedy to replace a suit.
(e) Where the particular Act contains no machinery for refund of tax
collected in excess of constitutional limits or illegally collected, a
suit lies.
(f) Questions of the correctness of the assessment, apart from its
constitutionality, are for the decision of the authorities and a civil
suit does not lie if the orders of the authorities are declared to be
final or there is an express prohibition in the particular Act. In
either case, the scheme of the particular Act must be examined
because it is a relevant enquiry.
(g) An exclusion of the jurisdiction of the civil court is not readily to
be inferred unless the conditions above set down apply.
[See Rajasthan State Road Transport Corporation and Another vs.
Krishna Kant and Others \026 (1995) 5 SCC 75, Dwarka Prasad Agarwal
vs. Ramesh Chand Agarwal - (2003) 6 SCC 220, Sahebgouda vs.
Ogeppa (2003) 6 SCC 151 and Dhruv Green Field Ltd. vs. Hukam
Singh (2002) 6 SCC 416].
This case does not fulfil the said conditions and the jurisdiction
of the Civil Court was not excluded by reason of Sections 53 and 53A
of the Act.
The reliance placed by the Appellant on the decision of this Court in
Math Sauna and others Vs. Kedar Nath alias Uma Shankar and others [AIR
1981 SC 1878] is wholly erroneous. In that case the Court had held that the
question whether properties in possession of a mahant were math or personal
was to be decided on the basis of facts and circumstances of the case.
For the reasons aforementioned, we do not find any merit in this
appeal, which is dismissed accordingly. However, in the facts and
circumstances of the case, there shall be no order as to costs.
CIVIL APPEAL NO. 3740 of 2000
This appeal has been filed against certain observations made by the
High Court in paragraph 50 of its judgment. In view of the dismissal of
Civil Appeal 2395 of 2002, this appeal also fails and is dismissed
accordingly.