REPORTABLE
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
Civil Appeal No. 10946 of 2014
The Jamia Masjid …Appellant
Versus
Sri K V Rudrappa (Since Dead) By Lrs. & Ors. …Respondents
Signature Not Verified
Digitally signed by
Sanjay Kumar
Date: 2021.09.23
12:10:40 IST
Reason:
1
J U D G M E N T
Dr Dhananjaya Y Chandrachud, J
Index
A. The Facts
B. Proceedings before the Courts
C. Proceedings before the High Court
D. Submissions of the Parties
E. The Analysis
E.1 Res Judicata as a Preliminary issue
E.2 The Plea of Res Judicata and the three previous suits
E.2.1 Determination of title in a Representative suit
E.2.2 Representative Suit and Res judicata
E.2.3 Conclusive decision and Res Judicata
E.2.3.1 Similarity in issue and Res Judicata
E.2.4 Compromise decree and Res Judicata
F. The Conclusion
2
PART A
1. A Single Judge of the High Court of Karnataka dismissed a second appeal
1
filed under Section 100 of the Code of Civil Procedure 1908 , affirming the decision
of the Trial Court and the First Appellate Court that the suit instituted by the
appellant-plaintiff is barred by the principle of res judicata. The appellant moved this
court in a Special Leave Petition to challenge the decision of the Single judge. Leave
has been granted on 8 December 2014.
A. The Facts
2. Described as the Jamia Masjid Gubbi in the cause title, the appellant
2
instituted the suit through its President for seeking the following reliefs:
(i) A declaration that the State Wakf Board is the owner in possession of the suit
schedule property, being survey No. 2 of Gubbi village admeasuring 2 acres
and 4 guntas of non-agricultural land with a cinema building;
(ii) A decree for possession against the defendants;
(iii) An injunction to restrain the defendants from interfering with the possession
and enjoyment of the plaintiff; and
(iv) A decree for mesne profits.
3. The case of the plaintiff-appellant is as follows:
(i) The suit property is a ‘Khazi Service Inam’. Abdul Khuddus, the spouse of
the fifth defendant and father of the sixth to ninth defendants was the
mutawalli who was managing the property for and on behalf of the Wakf
Board. Abdul Khuddus, was entitled to the usufruct of the property subject
1
”CPC”
2
O.S 149/1998
3
PART A
to the condition precedent that he would perform his service as a Khazi or
Mutawalli. During his lifetime he had given up his service as a Khazi upon
being appointed by the Gubbi Muslim Jamath as the Pesh Inam on a
monthly salary of Rs 30 for performing the Namaz (daily prayers);
(ii) Upon the enactment of the Wakf Act 1954, which was adopted by the then
Mysore State in 1955, the Assistant Commissioner conducted a survey of
Wakf Properties in 1963. Abdul Khuddus gave a declaration to the Wakf
Board for the registration of the suit schedule property as a wakf. A notice
inviting objections for registration of the suit schedule property as a wakf
property was issued. No objection to the registration of the suit schedule
property was raised and eventually the property was notified as a wakf
property at serial No 136 of the Mysore Gazette notification No. MWB
19(11) dated 6 July 1965;
(iii) Under section 6 of the Wakf Act 1954, if any dispute arises on a property
declared as a wakf property, a claim can be raised within one year of the
publication of the notification. There is a prohibition on alienation under
rule 5 of the Wakf Rules framed under the Wakf Act, 1965 unless
approved by a two-thirds majority of the Wakf Board;
(iv) A person by the name of H.S. Gururajarao and his brothers were granted
a lease over the schedule suit property on 8 December 1944 by the Muzrai
officer to run a ‘cinema talkies’. A suit, OS 748/1968, was instituted by the
Wakf Board against the Abdul Khuddus and H.S. Gururajarao seeking
possession of the suit property and a declaration that the property
4
PART A
constitutes a wakf. The suit was compromised with Abdul Khuddus being
permitted to collect the rent from the lessee (H S Gururajarao) on behalf of
the Board;
(v) After the death of Abdul Khuddus, defendants 6 to 9 took possession of
the suit property. Allegations of mismanagement of the suit property were
made against them. The Chairman, D.W.C Tumkur recommended that the
suit property be directly managed by the Board under section 43(A) of the
Wakf Act 1954. Pursuant to the recommendation, the State Wakf Board
passed an order dated 6 April 1983 taking over the management;
(vi) H.S. Gururajarao who was in possession of the suit schedule property as a
lessee, handed over possession of the cinema building to the Wakf Board
on 29 June 1983. Defendants 5 to 9 however executed sale deeds in
respect of the property in favour of Defendants 1 to 4. Any alienation by
Defendants 5 to 9 is void since the Board did not approve the transaction
with a two-thirds majority; and
(vii) The cause of action arose on 16 April 1983 when Defendants 1 to 4
together with other defendants interfered with the possession of the
plaintiff on the strength of the sale in their favour executed by Defendants
5 to 9.
5
PART A
4. In May 2010, Defendants 2 to 4 filed their written statement raising the
defence that:
3
(i) The suit is barred by res judicata : OS 92/1950-51 was filed by the members of
the mosque known as Jamayat Masjid in which Abdul Khuddus (the predecessor
of Defendants 5-9) was a party. In the said suit, the District Judge by a judgment
dated 31 March 1954 declared the suit schedule property to be the personal
property of Abdul Khuddus. Abdul Khuddus instituted an appeal before the High
Court challenging a portion of the order of the District Judge. The High Court
upheld the judgment of the District judge on 14 August 1959. Since the parties
and the subject matter of the first suit and the present suit are the same, the suit
instituted by the appellant is barred by res judicata ;
(ii) The suit schedule property is not a Khazi Service Inam but was the personal
property of Abdul Khuddus and his successors have rightfully sold it in favour of
Defendants 1-4;
(iii) The suit schedule property was leased to one H.S Gururaja Rao by Abdul
Khuddus and not by the then Muzrai officer as contended by the plaintiff. From
1995, a lease was granted in favour of Sri K.V Rudrappa who was running a
theatre in the name of ‘Channabasaveswara Talkies’. After the death of
Rudrappa, defendants 1-4 are running the theatre after obtaining a licence from
the District Magistrate;
3
“the first suit”
6
PART B
4
(iv) OS 748/1968 was instituted by the Mysore Board of Wakf against Abdul
Khuddus seeking a declaration that the suit property is a wakf and for possession
of the suit property. However, the suit was decreed in terms of the compromise
petition filed by the parties and therefore, the Wakf Board gave up its claim in
respect of the suit schedule property. The subsequent suit is hit by the principle
of res judicata ; and
5
(v) OS 100/1983 was instituted by the Karnataka Board of Wakf seeking an
injunction restraining the defendants (the heirs of Abdul Khuddus) from
interfering in the peaceful possession of the suit property. This suit was
withdrawn by the plaintiff.
B. Proceedings before the Courts
5. The Trial Court took up two issues – issues 5 and 6 – relating to res judicata
and limitation as preliminary issues. By its judgment dated 3 February 2006, the trial
court held that the suit was not barred by limitation. However, the court held that the
suit was barred by res judicata by virtue of the decisions in the suits instituted
earlier:
(i) O.S 92/1950-51 was filed by the members of the public of Gubbi in their
representative capacity by virtue of Section 92 CPC. Abdul Khuddus
contended that the suit schedule property was his personal property. The first
issue framed in the suit was whether ‘ the schedule properties belong to the
Jamia Mosque, Gubbi as alleged in the plaint’. The plaintiff was held to have
4
‘the second suit”
5
“the third suit”
7
PART B
failed to prove that two of the suit schedule properties (Sy. No. 2 and 3, of
which Sy No. 2 is the suit schedule property in the instant proceedings)
6
belongs to the Jamia Mosque. The High Court on second appeal held that
the properties in Sy No. 2, 3 and 4 do not belong to the mosque. Thus, the
issue with regard to the ownership of the suit schedule property has reached
finality in view of the decision of the High Court of Karnataka which was not
assailed before this court;
(ii) A judgment in a representative suit is binding on all the interested parties in
view of Explanation IV to Section 11 CPC. Though the first suit was not filed
by the Jamia Masjid in its individual capacity, it was filed by parties interested
in the administration of the mosque and thus all parties interested in the
mosque are bound by the judgment even if they were not impleaded as a
party;
(iii) The judgment of the trial court cannot be nullified by a notification issued by
the government declaring the suit property as a wakf property;
(iv) O.S 748/1968 filed by the plaintiff seeking a declaration that the Wakf is the
owner of the suit property ended in a compromise by which the Wakf Board
has admitted that Abdul Khuddus has the right to collect the rent from the
lessee. Thus, the Wakf Board has relinquished its title over the suit property;
and
(v) O.S No. 100/1983 was filed seeking an injunction against Abdul Khuddus.
However, the suit was dismissed on 22 November 1984 after a memo of
6
R.A. 510/1954
8
PART B
withdrawal was filed by the plaintiff’s counsel. Thus the Wakf Board has
relinquished rights over the suit property.
rd
6. An appeal against the decree of the Trial Court was dismissed by the 3
Additional District Judge at Tumkur on 2 July 2007 for the following reasons:
(i) The finding in O.S 92/1950 and by the High Court on appeal was not
challenged by Abdul Khuddus. It was also not contested that the title of a
property cannot be determined in a representative suit filed under section 92
CPC;
(ii) A representative suit filed under section 92 CPC binds not only the parties
named in the suit but also those who are interested in the suit. Therefore, a
decision in a previous representative suit will bind all interested parties even if
they were not impleaded as a party to the suit;
(iii) The submission that the trial court had only found Abdul Khuddus
prima facie
to possess title to the suit property and that hence, it was not conclusively
held that he had absolute title, is erroneous. To determine if a scheme should
be framed for the maintenance of a trust, the court will have to satisfy itself
whether the property is owned by the trust;
(iv) The plaintiff has not specified when Abdul Khuddus made the declaration for
notifying the suit property as wakf property. If the notification was made in
1963, there was no reason for the Wakf Board to file the suit, as late as in
1983;
(v) O.S. 748/1968 filed by the Wakf Board against Abdul Khuddus for a
declaration that the suit property belongs to the Wakf Board ended in a
9
PART B
compromise. The Wakf Board has waived its right over the suit property and
such a compromise creates an estoppel (based on the decisions in Provash
7
v. ; v.
Chandra Daluj Biswanath Banerhee Byram Pestonji Gariwala
8
Union Bank of India ); and
(vi) O.S No. 100/1983 was filed by the Wakf Board for seeking an injunction
against the defendants. The suit was dismissed by filing a Memo without
seeking leave to file the instant suit. The decision in Sarguja Transport
9
was relied upon.
Service v. S.T.A.T Gwalior
7. The High Court by its judgment and order dated 2 July 2008 allowed a
Regular Second Appeal and remanded the matter to the Trial Court for disposal in
accordance with law. The High Court held that:
(i) The present suit is not barred by res judicata since OS 92/1950-51 was
instituted under Section 92 of the CPC for settling a scheme. Para 10 of
the judgment of the Trial Court noted that the defendant has a prima facie
right to the suit property and that if the terms of the grant have not been
satisfied by the defendant, the trustees can take steps. Therefore, the
question of title was not conclusively decided. The issue that was
substantially in issue in OS No 92/1950-51 is not in issue in the instant
proceedings. The judgement of the High Court in appeal as well cannot be
read to mean that the suit schedule property belongs absolutely to Abdul
Khuddus;
7
AIR 1989 SC 1834
8
AIR 1991 SC 2234
9
AIR 1987 SC 88
10
PART C
(ii) A suit under section 92 CPC is filed as a representative suit and is not a
suit filed to vindicate the private right of an individual;
(iii) The compromise decree in OS 748/1968 did not declare the ownership of
Abdul Khuddus, the predecessor- in-interest of Defendants 1 to 4. It only
states that the second defendant would continue as the lessee of Abdul
Khuddus;
(iv) The present suit was instituted on behalf of the State Wakf Board prior to
the disposal of OS 100/1983 and was hence not barred; and
(v) The nature of the relief sought in the instant proceeding is different from
the relief sought in OS 92/1950-51. Jamia Masjid was not the plaintiff in
O.S No. 92/1950-51 and O.S No. 748/1968.
C. Proceedings before the High Court
10
8. A Special Leave Petition was instituted before this Court by Defendants 1 to
4. By a judgment dated 30 August 2010, this Court remanded the proceedings back
to the High Court on the ground that the High Court had heard only one of the
defendant – caveators and that all the defendants were not represented before the
High Court. After remand, the High Court by its judgment dated 23 January 2012
dismissed the appeal for the following reasons:
(i) The ownership of the suit schedule property has been conclusively decided in
OS 92/1050-51 in favour of Abdul Khuddus;
10
SLP (C) No. 26047 of 2008
11
PART C
(ii) The judgment in a representative suit under Section 92 CPC binds the parties
to the suit and those who are interested in the Trust ( R Venugopala Naidu
11
v. );
Venkatarayulu Naidu Charities
(iii) When a suit is filed for determination of a scheme for administration of a
Trust, the court must primarily be satisfied that the property belongs to the
Trust. The court has the power under Section 92(e) and (cc) of the CPC to
order delivery of possession of the property to any person who is entitled to
possession;
(iv) If a declaration was made by Khazi Abdul Khuddus declaring the suit
property as a Wakf property in 1965, there is no explanation as to why the
plaintiff was silent till the filing of OS 100/1983; and
(v) An issue that was substantially decided by a competent court of limited
jurisdiction will operate as res judicata, though such court in view of its limited
jurisdiction would not be competent to try the subsequent suit ( Sulochana
12
Amma v. Narayanan Nair ).
9. The judgment obtained through a consent decree in OS 748/1968 was
intended to put the litigation to an end. It would thus operate as res judicata in the
subsequent suits.
10. Leave was granted by this Court on 8 December 2014.
11
AIR 1990 SC 444
12
(1994) 2 SCC 14)
12
PART D
D. Submissions of the Parties
11. We have heard Ms V Mohana, learned Senior Counsel appearing on behalf of
the appellant and Mr Basava Prabhu Patil, learned Senior Counsel with Mr Balaji
Srinivasan, learned Counsel for the contesting respondents.
12. On behalf of the appellant, the following submissions have been urged:
(i) OS 92/1950-51
The suit was instituted by Muslims in the locality interested in the proper
o
management of the mosque since Abdul Khuddus was trying to set up his
own title to the suit property;
The suit was not for a declaration of title to the suit property and the
o
appellant was not a party to the suit. It was a suit seeking to set up a
scheme for the administration of the suit property;
There was no final declaration that the suit property is a private property
o
belonging to Abdul Khuddus; and
In a suit for settling a scheme under Section 92 of the CPC, the Court
o
possessed limited jurisdiction and could not have issued declaratory relief.
(ii)
OS 748/1968
The basis of the suit was that Abdul Khuddus by virtue of his office as a
o
khazi only has the right to the usufruct and the suit was instituted as an
unlawful construction was in place;
13
PART D
A compromise memo was filed in the suit stating that the second
o
defendant would continue to remain as a tenant for some time and would
thereafter hand over peaceful possession to Abdul Khuddus;
On 27 October 1969, a compromise petition was filed by the parties under
o
Order 23 Rule 1 CPC;
The compromise decree neither concedes title of the suit property to
o
defendants nor does it create any new right in their favour; and
The suit proceeded on the basis that Abdul Khuddus was only entitled to
o
the usufruct and the decree based on the compromise deed protected
possession without any adjudication of title.
(iii)
OS 100/1983
The suit was instituted by the Karnataka Wakf Board for a
o
permanent injunction, apprehending a sale at the instance of the
heirs of the Abdul Khuddus to defendants 1-4;
The appellant was not a party to the suit;
o
The suit was dismissed without costs after the plaintiff filed a memo
o
for dismissal; and
Before the dismissal of the suit, the present suit which is a
o
comprehensive suit seeking declaration and possession had been
instituted.
In view of the above position, it was urged that the ingredients for the application of
the doctrine of res judicata have not been fulfilled. In summation, it was urged that:
14
PART D
(i) The issue of title to the suit schedule property has not been decided in any
of the three prior suits;
(ii) In view of notification No. MWB 19(11) dated 6 July 1965 the suit property
was notified as wakf property;
(iii) A collateral finding does not demonstrate an adjudication of title;
(iv) In the absence of a prior adjudication, the doctrine of res judicata would
not be attracted;
(v) The notification of the suit schedule property as a wakf was pursuant to a
declaration dated 28 April 1963 executed by Abdul Khuddus for the
general benefit of the community;
(vi) Once the property is constituted as a wakf, it would remain so in that
character and no objection to the notification was filed either by Abdul
Khuddus or by any person claiming through him; and
(vii) Without prejudice to the above submissions, the issue of res judicata
raises mixed questions of law and fact and, in any event, ought to have
been decided as a comprehensive issue pursuant to a full-fledged trial.
13. Opposing the above submissions, Mr Basava Prabhu Patil, learned Senior
Counsel submitted that:
(i) In the first suit - 92/1950-51 - there was a specific finding that the suit
schedule property was the personal property of Abdul Khuddus. Thus, the
court having conclusively decided on the title of the suit property, a
subsequent suit raising the same issue is barred by the principles of res
judicata ;
15
PART E
(ii) In the second suit which was instituted by the State Wakf Board, there was
a prayer for declaration and possession. A compromise having been
arrived at on a portion of the reliefs claimed in the second suit (relating to
possession), this would necessarily amount to an abandonment of the
other reliefs. Once a compromise is arrived at, Order 23 Rule 3A bars the
maintainability of a subsequent suit;
(iii) The third suit was for a permanent injunction against alienation of the suit
property. This suit was dismissed as withdrawn; and
(iv) Jamia Masjid is seeking a declaration of the title on behalf of the Wakf
Board. The Wakf Board is not a party to the suit and its application for
being impleaded has been rejected.
E. The Analysis
14. The rival submissions now fall for analysis.
13
15. The primary issue is whether the suit - OS No. 149/1998 - which was
instituted by Jamia Masjid is barred by the principles of res judicata. In order to
analyse whether the doctrine of res judicata is attracted, it is necessary that we
decide on the plea with respect to the three prior suits:
(i) OS 92/1950-51;
(ii) OS 748/1968 and;
(iii) OS 100/1983.
13
The suit out of which the issue in present appeal arises is suit 96/1984 re-numbered as 162/1989 and 149/1998.
For convenience we will refer to the suit as OS 149/1998.
16
PART E
16. Before analysing the three suits specifically, it is necessary that we visit the
jurisprudence on res judicata. Section 11 CPC states as follows:
| “11. Res Judicata: No Court shall try any suit or issue in | |
|---|
| which the matter directly and substantially in issue has been | |
| directly and substantially in issue in a former suit between the | |
| same parties, or between parties under whom they or any of | |
| them claim, litigating under the same title, in a Court | |
| competent to try such subsequent suit or the suit in which | |
| such issue has been subsequently raised, and has been | |
| heard and finally decided by such Court. | |
| Explanation V.-- Any relief claimed in the plaint, which is not | | |
| expressly granted by the decree, shall for the purposes of this | | |
| section, be deemed to have been refused. | | |
Explanation VI .-- Where persons litigate bona fide in respect
of a public right or of a private right claimed in common for
themselves and others, all persons interested in such right
shall, for the purposes of this section, be deemed to claim
under the persons so litigating .
[…]
Explanation VIII .-- An issue heard and finally decided by a
Court of limited jurisdiction, competent to decide such issue,
shall operate as res judicata in a subsequent suit,
notwithstanding that such Court of limited jurisdiction was not
competent to try such subsequent suit or the suit in which
such issue has been subsequently raised.]”
17. In order to attract the principles of res judicata, the following ingredients must
be fulfilled:
(i) The matter must have been directly and substantially in issue in the former
suit;
(ii) The matter must be heard and finally decided by the Court in the former
suit;
17
PART E
(iii) The former suit must be between the same parties or between parties
under whom they or any of them claim, litigating under the same title; and
(iv) The Court in which the former suit was instituted is competent to try the
subsequent suit or the suit in which such issue has been subsequently
raised.
18. In Syed Mohd. Salie Labbai (dead) by L.Rs v. Mohd. Hanifa (dead) by
14
L.Rs , Justice S Murtaza Ali speaking for a Bench of two judges observed that
before a plea of res judicata can be given effect, the following conditions must be
proved:
“7…
“( 1 ) that the litigating parties must be the same;
( 2 ) that the subject-matter of the suit also must be identical;
( 3 ) that the matter must be finally decided between the
parties; and
( 4 ) that the suit must be decided by a court of competent
jurisdiction.”
The Court noted that “the best method” to decide the question of res judicata is first
to determine the case of the parties as they are put forward in their respective
pleadings of their previous suits, and then to find out as to what had been decided
by the judgments which operate as res judicata. In that case, it was held that the
judgment in the previous suit was confined to two points:
(i) The plaintiffs claimed certain rights for the performance of ceremonies in
the properties and a share in the income accruing to the mosque from the
worshippers; and
14
(1976) 4 SCC 780
18
PART E
(ii) A claim, insofar as the graveyard was concerned for receiving pit fees for
burials. Consequently, it was held that the Trial court had not decided
upon either the public character of the mosque or the mode and manner or
the effect of the dedication of the site for the purpose of the mosque or the
graveyard.
E.1 Res Judicata as a Preliminary issue
19. Before we undertake an analysis on the applicability of the principles of res
judicata vis-à-vis the three suits that were initiated with regard to the suit property it
is necessary to discuss the submission of counsel for the appellant that res judicata ,
being a mixed question of law and facts ought not to have been decided as a
preliminary issue by the trial court. It was contended that any determination of the
application of the principle of res judicata can only be made after evidence is
adduced pursuant to a full-fledged trial. For this purpose, reliance was placed on the
decision of a two judge bench of this court in Alka Gupta v. Narender Kumar
15
(“ ”) authored by Justice RV Raveendran. In , the
Gupta Alka Gupta Alka Gupta
trial court had dismissed the subsequent suit on various preliminary grounds, one of
which was that the filing of the subsequent suit stood barred by res judicata.
However, on appeal, the two judge bench of this court held that the second suit was
not barred by res judicata:
| “ | 19. The learned Trial Bench passed the order on 13-3-2009 |
|---|
| on the preliminary issue (Issue 1) relating to res judicata. But | |
| there is absolutely no discussion in the order of the | |
| learned Single Judge in regard to the bar of res judicata | |
| except the following observation at the end of the order: “Of | |
15
(2010) 10 SCC 141
19
PART E
| course it cannot be said that the present suit is barred by res | | |
|---|
| judicata inasmuch as the said claims were not decided in that | | |
| case. But the principle of constructive res judicata is | | |
| applicable.” This was not interfered by the Appellate Bench. | | |
| Both proceeded on the basis that the suit was not barred by | | |
| res judicata, but barred by principle of constructive res | | |
| judicata without assigning any reasons. | | |
| 20. Plea of res judicata is a restraint on the right of a plaintiff | | |
| to have an adjudication of his claim. The plea must be | | |
| clearly established, more particularly where the bar | | |
| sought is on the basis of constructive res judicata. The | | |
| plaintiff who is sought to be prevented by the bar of | | |
| constructive res judicata should have notice about the | | |
| plea and have an opportunity to put forth his contentions | | |
| against the same. In this case, there was no plea of | | |
| constructive res judicata, nor had the appellant-plaintiff an | | |
| opportunity to meet the case based on such plea. | | |
| [… | | |
| 26. In the instant case, the High Court has not stated what | | |
| was the ground of attack that the appellant-plaintiff ought to | | |
| have raised in the first suit but had failed to raise, which she | | |
| raised in the second suit, to attract the principle of | | |
| constructive res judicata. The second suit is not barred by | | |
| constructive res judicata.” | | |
| (emphasis supplied) | | |
20. The finding of the trial judge on the applicability of the principles of res
judicata was set aside on the ground that the plea was not clearly established and
the plaintiff was not given the opportunity to contest the plea. Thus, in
Alka Gupta
(supra) , this court set aside the decision of the High Court on the above ground.
21. Order 14 Rule 2 CPC states that if questions of fact and law arise in the same
suit, the court can dispose the case on the question of law alone if it relates to the
following:
“(a) the jurisdiction of the Court, or
(b) a bar to the suit created by any law for the time being in
force, and for that purpose may […]”
(emphasis supplied)
20
PART E
22. It has been held by this court that a determination of whether res judicata is
16
attracted raises a mixed question of law and facts. In Madhukar D. Shende and
17
, it was held that the plea of res judicata was a mixed question of law
Ram Harakh
and facts. In both the cases, the plea of res judicata was taken for the first time
before this Court. Justice K. Ramaswamy writing for a three judge bench of this
18
court in Sushil Kumar Mehta v. Gobind Ram Bohra held that the principle of res
judicata cannot be fit into the pigeon hole of ‘mixed question of law and facts’ in
every case. Rather, the plea of res judicata would be a question of law or fact or a
mixed question of both depending on the issue that is claimed to have been
previously decided. The court while determining the applicability of the plea of res
judicata would determine if there has been any material alteration in the facts and
law applicable:
| “26. T | he doctrine of res judicata under Section 11 CPC is |
|---|
| founded on public policy. An issue of fact or law or mixed | |
| question of fact and law, which are in issue in an earlier suit | |
| or might and ought to be raised between the same parties or | |
| persons claiming under them and was adjudicated or allowed | |
| uncontested becomes final and binds the parties or persons | |
| claiming under them. Thus, the decision of a competent court | |
| over the matter in issue may operate as res judicata in | |
| subsequent suit or proceedings or in other proceedings | |
| between the same parties and those claiming under them. | |
| But the question relating to the interpretation of a statute | |
| touching the jurisdiction of a court unrelated to questions of | |
| fact or law or mixed questions does not operate as res | |
| judicata even between the parties or persons claiming under | |
| them. The reason is obvious; a pure question of law unrelated | |
| to facts which are the basis or foundation of a right, cannot be | |
| deemed to be a matter in issue. The principle of res judicata | |
| is a facet of procedure but not of substantive law. The | |
16
Madhukar D Shende v. Tarabai Aba Shedage, (2002) 2 SCC 85
17
Ram Harakh v. Hamid Ahmed Khan & Ors., (1998) 7 SCC 484
18
(1990) 1 SCC 193
21
PART E
| decision on an issue of law founded on fact in issue would | |
|---|
| operate as res judicata. But when the law has since the | |
| earlier decision been altered by a competent authority or | |
| when the earlier decision declares a transaction to be valid | |
| despite prohibition by law it does not operate as res judicata. | |
| Thus a question of jurisdiction of a court or of a procedure or | |
| a pure question of law unrelated to the right of the parties | |
| founded purely on question of fact in the previous suit, is not | |
| res judicata in the subsequent suit. A question relating to | |
| jurisdiction of a court or interpretation of provisions of a | |
| statute cannot be deemed to have been finally determined by | |
| an erroneous decision of a court. Therefore, the doctrine of | |
| res judicata does not apply to a case of decree of nullity. If the | |
| court inherently lacks jurisdiction consent cannot confer | |
| jurisdiction. Where certain statutory rights in a welfare | |
| legislation are created, the doctrine of waiver also does not | |
| apply to a case of decree where the court inherently lacks | |
| jurisdiction.” | |
application of the plaintiff in the Court of the Civil Judge for the determination of
Standard Rent under Section 11 of the Bombay Rents, Hotel and Lodging House
Rates Control Act 1947 was dismissed on the ground that the statute did not apply
to a case of open land let for the construction of buildings. This decision was
affirmed in appeal. However, in view of another decision of the Bombay High Court
which held that the statute would be applicable to leased land, the plaintiff filed a
fresh proceeding in the Court of Small Causes. The Trial Court and the High Court
held that the subsequent suit was barred by res judicata. However, Justice J C Shah
writing for a 3-judge bench held that the subsequent suit was not barred by res
judicata:
| “5. | But the doctrine of res judicata belongs to the domain of |
|---|
| procedure: it cannot be exalted to the status of a legislative | |
19
(1970) 1 SCC 613
22
PART E
| direction between the parties so as to determine the question | |
|---|
| relating to the interpretation of enactment affecting the | |
| jurisdiction of a Court finally between them, even though no | |
| question of fact or mixed question of law and fact and relating | |
| to the right in dispute between the parties has been | |
| determined thereby. A decision of a competent Court on a | |
| matter in issue may be res judicata in another proceeding | |
| between the same parties: the “matter in issue” may be an | |
| issue of fact, an issue of law, or one of mixed law and | |
| fact. An issue of fact or an issue of mixed law and fact | |
| decided by a competent Court is finally determined | |
| between the parties and cannot be re-opened between | |
| them in another proceeding. The previous decision on a | |
| matter in issue alone is res judicata: the reasons for the | |
| decision are not res judicata. | |
| 11. The matter in issue, if it is one purely of fact, decided | |
|---|
| in the earlier proceeding by a competent Court must in a | |
| subsequent litigation between the same parties be | |
| regarded as finally decided and cannot be reopened. A | |
| mixed question of law and fact determined in the earlier | |
| proceeding between the same parties may not, for the | |
| same reason, be questioned in a subsequent proceeding | |
| between the same parties. But, where the decision is on a | |
| question of law i.e. the interpretation of a statute, it will be res | |
| judicata in a subsequent proceeding between the same | |
| parties where the cause of action is the same, for the | |
| expression “the matter in issue” in Section 11 of the Code of | |
| Civil Procedure means the right litigated between the parties | |
| i.e. the facts on which the right is claimed or denied and the | |
| law applicable to the determination of that issue. Where, | |
| however, the question is one purely of law and it relates to the | |
| jurisdiction of the Court or a decision of the Court sanctioning | |
| something which is illegal, by resort to the rule of res judicata | |
| a party affected by the decision will not be precluded from | |
| challenging the validity of that order under the rule of res | |
| judicata, for a rule of procedure cannot supersede the law of | |
| the land. | |
| (emphasis supplied) | |
The court while undertaking an analysis of the applicability of the plea of res
judicata determines first, if the requirements of section 11 CPC are fulfilled; and if
23
PART E
this is answered in the affirmative, it will have to be determined if there has been any
material alteration in law or facts since the first suit was decreed as a result of which
the principle of res judicata would be inapplicable. We are unable to accept the
submission of the appellants that res judicata can never be decided as a preliminary
issue. In certain cases, particularly when a mixed question of law or fact is raised,
the issue should await a full-fledged trial after evidence is adduced. In the present
case, a determination of the components of res judicata turns on the pleadings and
judgments in the earlier suits which have been brought on the record. The issue has
been argued on that basis before the Trial court and the first appellate court;
followed by two rounds of proceedings before the High Court (the second following
upon an order of remand by this court on the ground that all parties were not heard).
All the documentary material necessary to decide the issue is before the court and
arguments have been addressed by the contesting sides fully on that basis.
E.2 The Plea of Res Judicata and the three previous suits
24. We will now refer to the proceedings in the three suits to decide if the bar of
res judicata would be applicable in view of judgments in any of the previous suits.
I. OS 92/1950-51/ The first suit
25. OS 92/1950-51 was instituted by five residents of Gubbi town against the
Abdul Khuddus who was managing the mosque. The suit was instituted under the
provisions of Section 92 CPC to settle a scheme for the management of the mosque
since Abdul Khuddus was alleged to be misappropriating the funds accruing to the
24
PART E
mosque and was trying to set up his own title to the property of the mosque. The
reliefs which were sought in the suit were for
a. Settling a scheme for the administration of Jamia Masjid situated in Gubbi and
the management of its properties; and
b. Directing the defendant to render accounts in respect of the income and other
funds.
The schedule to the plaint contained six properties of which serial No. 2 (which
corresponds to the suit schedule property) is described thus:
“2. Dry land bearing Survey No.2, measuring 2 Acre 4
guntas, assessed at Rs.4 /- and situated in Gubbi
Village.”
26. The issues which were framed by the Trial Court were as follows:
“(1)
In the schedule properties being to the Jamia Masjid
at Gubbi as alleged in the plaint?
(2) Is the said Mosque a public religious institution as
alleged by the plaintiff?
(3) Is it a private institution belonging to the defendant's
family?
(4) Are the schedule shops built out of defendants private
funds?
(5) Are plaintiffs persons interested in the Masjid and is
!the suit maintainable?.
(6) Is the defendant entitled to continue in management
of the mosque in question?
(7) Is the court-fee is sufficient?
(8) To what relief is the plaintiff entitled?”
(emphasis supplied)
st
27.
The 1 Additional District Judge decreed the suit in the following terms:
“14. …the suit is decreed directing the settlement of the
scheme towards the proper management of the Jamia Masjid
in Gubbi and for the due and proper administration suit
schedule items 1,4 and 5 subject to the observation made
25
PART E
above in respect of these Items 1,4 and 5 subject to the
observation made above in respect of these items. The
defendant shall pay costs of this suit in the plaintiffs.
Pleader's fee Rs. 30/-“
28. In the course of the judgment, the District Judge discussed the evidence
adduced by both the parties and came to the prima facie finding that of the six suit
properties, the mosque did not have the title to two of the properties, namely, item 2
which is the suit property in the instant proceedings in OS 149/1998 and suit item 3.
Abdul Khuddus in his testimony as D.W.6 deposed that the mosque has nothing to
do with the lands (Item Nos. 2 and 3) given to him by the Government as Khazi
Inam. Considering that no proof to the contrary was adduced by the plaintiffs in the
suit, the District Judge recorded the following finding in paragraph 7:
“The plaintiffs have not produced anything to show that the
suit items 2 and 3 were granted or acquired for the mosque . It
must therefore be held that these two items are khazi
granted personally to the ancestors of the defendant they
do not form part of properties of the mosque.”
(emphasis supplied)
29. Significantly, after the above observation, the District Judge entered the
following finding in paragraph 10:
“10. In his written statement the defendant claimed all the suit
schedule immoveable as his own. But as observed before
the evidence discloses his prima facie right to only suit
schedule items 2 and 3. Those two items therefore be
considered as belonging to the mosque. It shall however be
open for the trustees to be appointed to take such steps as
may deems fit if they consider that in respect of those two
items (Items 2 and 3) the defendant has not satisfied the
terms of the grant.”
(emphasis supplied)
26
PART E
20
30. An appeal was filed by Abdul Khuddus before the High Court assailing the
finding of the District Judge that items 1, 4 and 5 belonged to the mosque. In a
judgment dated 14 August 1989, the appeal was partly allowed with respect to items
1 and 5 with the following finding:
“The result is that this appeal is allowed in part. In substitution
of the decree made by Court below, we direct that the learned
District Judge will now settle a scheme for the due
administration of the mosque and its properties which are
items 1 and 5.”
31. OS 92/1950-51 was a representative suit filed under section 92 CPC,
specifically under clause (g), for settling the scheme of administration of the
mosque. It has been consistently contended by Abdul Khuddus that item 2 of the
suit schedule property was granted to him as a Khazi inam, and is thus not a
mosque property. In order to adjudicate on the applicability of the plea of res judicata
vis-à-vis the first suit, it is necessary that we decide on the following three issues:
A. The scope of the first suit which was instituted under Section 92 of the CPC;
B. Whether the parties in the first suit and the instant proceedings are the same;
and
C. Whether the issue of title over the suit property was conclusively decided in
the first suit.
E.2.1 Determination of title in a Representative suit
32. In Mahant Pragdasji Guru Bhagwandasji v. Patel Ishwarlalbhai
21
Narsibhai , a three judge Bench of this Court explained the ambit of a
20
Regular Appeal No. 510 of 1954
21
AIR 1952 SC 143
27
PART E
representative suit under Section 92 of the CPC. In that case, one of the reliefs
sought was the declaration of the suit property as the religious and charitable trust
property of Kaivalya or Karuna Sagar Panth while the defendant contended that the
suit property was private property. Justice BK Mukherjea speaking for the Bench
expounded on the scope of a suit under section 92 CPC, particularly in view of the
relief seeking a declaration:
| the scope of S.92. Civil Procedure Code. | In the case before us, |
|---|
| the prayers made in the plaint are undoubtedly appropriate to the | |
| terms of Section 92 and the suit proceeded on the footing that | |
| the defendant, who was alleged to be the trustee in respect of a | |
| public trust, was guilty of breach of trust. The defendant denied | |
| the existence of the trust and denied further that he was | |
| guilty of misconduct or breach of trust. The denial could not | |
| certainly oust the jurisdiction of the court, but when the | |
| courts found concurrently, on the evidence adduced by the | |
| parties, that the allegations of breach of trust were not made | |
| out, and as it was not the case of the plaintiffs, that any | |
| direction of the court was necessary for proper | |
| administration of the trust, the very foundation of a suit | |
| under Section 92 of the Civil Procedure Code became | |
| wanting and the plaintiffs had absolutely no cause of action | |
| for the suit they instituted. In these circumstances, the | |
| finding of the High Court about the existence of a public | |
| trust was wholly inconsequential and as it was unconnected | |
| with the grounds upon which the case was actually | |
| disposed of, it could not be made a part of the decree or the | |
| final order in the shape of a declaratory relief in favour of | |
| the plaintiffs. It has been argued by the learned Counsel for the | |
| respondents that even if the plaintiffs failed to prove the other | |
28
PART E
| allegations made in the plaint, they did succeed in proving that | |
|---|
| the properties were public and charitable trust properties — a | |
| fact which the defendant denied. In these circumstances, there | |
| was nothing wrong for the court to give the plaintiffs a lesser | |
| relief than what they actually claimed. The reply to this is, that | |
| in a suit framed under Section 92 of the Civil Procedure | |
| Code the only reliefs which the plaintiff can claim and the | |
| court can grant are those enumerated specifically in the | |
| different clauses of the section. A relief praying for a | |
| declaration that the properties in suit are trust properties | |
| does not come under any of these clauses. When the | |
| defendant denies the existence of a trust, a declaration that | |
| the trust does exist might be made as ancillary to the main | |
| relief claimed under the section if the plaintiff is held | |
| entitled to it; but when the case of the plaintiff fails for want of a | |
| cause of action, there is no warrant for giving him a declaratory | |
| relief under the provision of Section 92 of the Civil Procedure | |
| Code. The finding as to the existence of a public trust in such | |
| circumstances would be no more than an obiter dictum and | |
| cannot constitute the final decision in the suit. | ” |
representative suit under section 92 CPC:
(i) The plaintiff can only seek reliefs that fall under any of the clauses in
section 92 CPC. A declaration that the suit property belongs to the trust,
does not fall under the scope of any of the reliefs enumerated in section 92
CPC and is outside the scope of the provision;
(ii) Merely because the defendant denies the title of the trust over the suit
property, the jurisdiction of the court cannot be ousted;
(iii) When the title of the trust is contested, a determination of the title of the
suit property is necessary for the purpose of adjudication on the final relief,
and thus it can be made ancillary to the main relief if the plaintiff is entitled
to the relief sought under Section 92 CPC; and
29
PART E
(iv) If the plaintiff is not entitled to the relief sought, then in that case no
determination on the title of the suit property can be made since it would
be inconsequential to the final decision in the suit.
On applying the principles evolved in Bhagwandasji (supra) to the facts of the
case, the relief sought in the first suit under section 92 CPC was for determination of
a scheme of management of the mosque. A determination of the title of the suit
property with respect to the mosque was ancillary to the main relief, under Section
92 of the CPC.
E.2.2 Representative Suit and Res judicata
34. We next advert to identifying if the parties in the instant proceedings (OS
149/1998) are the same as the first suit (OS 92/1950-51). The first suit was a
representative suit filed by interested parties of the Mosque-Jamia Masjid while the
instant suit was filed by the President of the Jamia Masjid in his representative
22
capacity. In Raje Anandrao v. Shamrao , Chief Justice PB Gajendragadkar (as he
then was) speaking for a two judge Bench of this Court said:
| “13…a suit under Section 92 is a representative suit and binds | |
|---|
| not only the parties thereto but all those who are interested in | |
| the trust.” | |
23
35. In Ahmad Adam Sait v. M E Makhri , Chief Justice PB Gajendragadkar (as
he then was) speaking for a three judge Bench held:
“16…when a suit is brought under Section 92, it is brought
by two or more persons interested in the trust who have
taken upon themselves the responsibility of representing all
22
(1961) 3 SCR 930
23
(1964) 2 SCR 647
30
PART E
| the beneficiaries of the Trust. In such a suit, though all the | |
|---|
| beneficiaries may not be expressly impleaded, the action is | |
| instituted on their behalf and relief is claimed in a | |
| representative character. This position immediately attracts | |
| the provisions of Explanation VI to Section 11 of the Code. | |
| Explanation VI provides that where persons litigate bona fide | |
| in respect of a public right or of a private right claimed in | |
| common for themselves and others, all persons interested in | |
| such right shall, for the purposes of this section, be deemed | |
| to claim under the persons so litigating. It is clear that | |
| Section 11 read with its Explanation VI leads to the result | |
| that a decree passed in suit instituted by persons to which | |
| Explanation VI applies will bar further claims by persons | |
| interested in the same right in respect of which the prior suit | |
| had been instituted. Explanation VI thus illustrates one | |
| aspect of constructive res judicata. Where a representative | |
| suit is brought under Section 92 and a decree is passed in | |
| such a suit, law assumes that all persons who have the | |
| same interest as the plaintiffs in the representative suit were | |
| represented by the said plaintiffs and, therefore, are | |
| constructively barred by res judicata from reagitating the | |
| matters directly and substantially in issue in the said earlier | |
| suit.” | |
The same principle was reiterated in (supra). In a two judge
R. Venugopala Naidu
Bench decision in Shiromani Gurdwara Parbhandhak Committee v. Mahant
24
Harnam Singh C. (Dead) M.N. Singh , this Court held:
“19. As observed by this Court in R. Venugopala
Naidu v. Venkatarayulu Naidu Charities [1989 Supp (2) SCC
356 : AIR 1990 SC 444] a suit under Section 92 CPC is a suit
of special nature for the protection of public rights in the
public trust and charities. The suit is fundamentally on behalf
of the entire body of persons who are interested in the trust. It
is for the vindication of public rights. The beneficiaries of the
trust, which may consist of the public at large, may choose
two or more persons amongst themselves for the purpose of
filing a suit under Section 92 CPC and the suit-title in that
event would show only their names as plaintiffs. Can we say
that the persons whose names are in the suit-title are the only
parties to the suit? The answer would be in the negative. The
named plaintiffs being the representatives of the public at
24
AIR 2003 SC 3349
31
PART E
| large which is interested in the trust, all such interested | |
|---|
| persons would be considered in the eyes of the law to be | |
| parties to the suit. A suit under Section 92 CPC is thus a | |
| representative suit and as such binds not only the parties | |
| named in the suit-title but all those who share common | |
| interest and are interested in the trust. It is for that reason that | |
| Explanation VI to Section 11 CPC constructively bars by res | |
| judicata the entire body of interested persons from reagitating | |
| the matters directly and substantially in issue in an earlier suit | |
| under Section 92 CPC.” | |
on all the interested parties. Therefore, the judgment of the court in the first suit
would be binding on Jamia Masjid and would preclude it from instituting another suit
on the same issue it has been conclusively decided. It is now to be analysed if the
if
substantive issue in the instant suit was conclusively decided in the first suit.
E.2.3 Conclusive decision and Res Judicata
36. The locus classicus on the point of determining if an issue was ‘directly and
substantially’ decided in the previous suit is the decision of Justice M Jagannadha
Rao (writing for a two judge bench) in Sajjadanashin Syed MD B.E. Edr. (D) by
25
Lrs. v. Musa Dadabhai Ummer. . During the course of the judgment, the Court
analysed the expression “directly and substantially in issue” in Section 11 and laid
down the twin test of essentiality and necessity :
| “12. It will be noticed that the words used in Section 11 CPC are | |
|---|
| “directly and substantially in issue”. If the matter was in issue | |
| directly and substantially in a prior litigation and decided against | |
| a party then the decision would be res judicata in a subsequent | |
| proceeding. Judicial decisions have however held that if a matter | |
| was only “collaterally or incidentally” in issue and decided in an | |
| earlier proceeding, the finding therein would not ordinarily be res | |
| judicata in a latter proceeding where the matter is directly and | |
| substantially in issue.” | |
32
PART E
| 18. In India, Mulla has referred to similar tests (Mulla, 15th Edn., | |
| p. 104). The learned author says: a matter in respect of | |
| which relief is claimed in an earlier suit can be said to be | |
| generally a matter “directly and substantially” in issue but it does | |
| not mean that if the matter is one in respect of which no relief is | |
| sought it is not directly or substantially in issue. It may or may not | |
| be. It is possible that it was “directly and substantially” in issue | |
| and it may also be possible that it was only collaterally or | |
| incidentally in issue, depending upon the facts of the case. The | |
| question arises as to what is the test for deciding into which | |
| category a case falls? One test is that if the issue was | |
| “necessary” to be decided for adjudicating on the principal | |
| issue and was decided, it would have to be treated as | |
| “directly and substantially” in issue and if it is clear that the | |
| judgment was in fact based upon that decision, then it | |
| would be res judicata in a latter case (Mulla, p. 104). One has | |
| to examine the plaint, the written statement, the issues and the | |
| judgment to find out if the matter was directly and substantially in | |
| issue (Ishwer Singh v. Sarwan Singh [AIR 1965 SC 948] | |
| and Syed Mohd. Salie Labbai v. Mohd. Hanifa [(1976) 4 SCC | |
| 780 : AIR 1976 SC 1569] ). We are of the view that the above | |
| summary in Mulla is a correct statement of the law. | |
19. We have here to advert to another principle of caution
referred to by Mulla (p. 105):
“It is not to be assumed that matters in respect of which issues
have been framed are all of them directly and substantially in
issue. Nor is there any special significance to be attached to the
fact that a particular issue is the first in the list of issues. Which
of the matters are directly in issue and which collaterally or
incidentally, must be determined on the facts of each case . A
material test to be applied is whether the court considers the
adjudication of the issue material and essential for its decision.”
(emphasis supplied)
37. Adverting to the decision in Mahant Pragdasji Guru Bhagwandasji (supra)
26
and two earlier decisions , the Court held that these were instances where in spite
of adverse findings in an earlier suit, the finding on that specific issue was not
treated as res judicata as it was purely incidental, auxiliary or collateral to the main
issue in each of these cases and not necessary in the earlier case.
26
Run Bahadur Singh v. Lucho Koer,ILR (1885) 11 Cal 301 ; Asrar Ahmed v. Durgah Committee, AIR 1947 PC 1.
33
PART E
38. In another decision in Gram Panchayat of Village Naulakha v. Ujagar
27
Singh , it has been held that the decision in an earlier suit for an injunction, where
no question of title was adjudicated upon will not be binding on the question of title:
| “10. We may also add one other important reason which | |
|---|
| frequently arises under Section 11 CPC. The earlier suit by | |
| the respondent against the Panchayat was only a suit for | |
| injunction and not one on title. No question of title was gone | |
| into or decided. The said decision cannot, therefore, be | |
| binding on the question of title. See in this | |
| connection Sajjadanashin Sayed v. Musa Dadabhai | |
| Ummer [(2000) 3 SCC 350] where this Court, on a detailed | |
| consideration of law in India and elsewhere held, that even if, | |
| in an earlier suit for injunction, there is an incidental finding on | |
| title, the same will not be binding in a later suit or proceeding | |
| where title is directly in question, unless it is established that it | |
| was “necessary” in the earlier suit to decide the question of | |
| title for granting or refusing injunction and that the relief for | |
| injunction was founded or based on the finding on title. Even | |
| the mere framing of an issue on title may not be sufficient as | |
| pointed out in that case.” | |
28
Amma (supra) and the Madras High Court’s judgment in Vanagiri were referred to
in order to lay emphasis on the unique facts of each case and its importance for
determination of whether the issue was substantially decided. In both the referred
cases, the issue was whether the finding of title in an injunction suit would operate
as res judicata to a subsequent suit for declaration of title. While in Sulochana
Amma , it was held that by the doctrine of res judicata , the finding would bar the
subsequent suit, in Vanagiri , it was held that the title was not conclusively decided
and that the subsequent suit would not be barred. It was observed that the twin tests
27
(2000) 7 SCC 543
28
Vanagiri Sri Selliamman Ayyanar Uthirasomasundareswarar Temple v. Rajanga Asari, AIR 1965 Mad 355
34
PART E
of necessity and essentiality might lead to different conclusions on suits of a similar
nature based on the facts and circumstances in each of them.
39. In a more recent decision in Nand Ram (Dead) Through Legal
29
v. , a
Representatives Jagdish Prasad (Dead) Through Legal Representatives
Bench of two judges reiterated the principle that if a matter has only collaterally or in
an auxiliary manner been in issue or decided in an earlier proceeding, the finding
would not ordinarily be res judicata in a later proceeding where the matter is directly
and substantially in issue. Justice Hemant Gupta (writing for a two judge bench)
noted that the material test to be applied is whether the adjudication of the issue is
material and essential for the decision . In Nand Ram , the land leased by the
plaintiffs to the defendants was acquired under the Land Acquisition Act, 1894. A
dispute arose on the apportionment of the compensation. The suit was decided
against the defendant on the ground that defendant did not pay the lease rent for
more than 12 months and thus according to the lease agreement, the lease had
come to an end. It was thus held that the defendant would not be entitled to the
compensation. Subsequently, the plaintiff filed an eviction suit asserting that the
defendant was in possession of the land that was not included in the lease deed.
The High Court in the second appeal held that the subsequent suit was barred by
res judicata since the former suit had conclusively decided on the title of the suit
property. On appeal, this court set aside the judgment of the High Court on the
ground that the issue of title was not conclusively decided in the former suit.
29
(2020) 9 SCC 393
35
PART E
40. In view of the authorities cited above, the twin test that is used for the
identification of whether an issue has been conclusively decided in the previous suit
is:
A. Whether the adjudication of the issue was ‘necessary’ for deciding on the
principle issue (‘the necessity test’); and
B. Whether the judgment in the suit is based upon the decision on that issue (‘the
essentiality test’).
On applying the necessity test to the case at hand, we will have to identify if the
decision on the principle issue of framing a scheme for the administration of the
Mosque could not have been arrived at without adjudication of the title of the suit.
The plaint contains two distinct allegations against the defendant, Abdul Khuddus: (i)
that he was misappropriating the funds of the mosque; and (ii) that he was setting up
his own title to the suit property. The defendant contested that the suit property
belonged to him. Therefore, since the title was contested, it was necessary that the
court in the first suit determine if the suit property belonged to the mosque to
adjudicate on the scheme of administration of the mosque. The contention that the
trial court could not have adjudicated on the title of the suit property in a
representative suit has already been addressed in the preceding section relying on
the case of Bhagwandasji (supra). On applying the essentiality test to the judgment
in the first suit, it has to be identified if the final decision rendered by the court in that
case would be altered if the issue on title was determined otherwise. Whether the
scheme for the administration of the mosque would also cover the suit property was
36
PART E
necessary for adjudication in the former suit. In the next section we shall explore
what precisely was the nature and import of the adjudication in the former suit.
E.2.3.1 Similarity in issue and Res Judicata
41. Apart from the issue whether the title to the suit property was conclusively
decided in the first suit, it is necessary that we identify if the matters in issue in the
former and the subsequent suits are the same. The first suit under Section 92 of the
CPC was for settling a scheme of administration of Jamia Masjid and the
management of its properties and the rendering of accounts of its funds and income
by the Defendant. In the subsequent suit, the prayer was for the declaration of the
suit property as a wakf property. In the first suit, it was held that the suit property
was ‘prima facie’ the property of Abdul Khuddus; that it was given to his forefathers
as a service inam, for his functions as a khazi. The cause of action in the
subsequent suit arose because the successors of Abdul Khuddus alienated the suit
property. The matters were adjudicated upon in the former suit are not the same as
those in the subsequent suit for two reasons: Firstly, there was a changed
circumstance resulting from the notification declaring the suit property as a wakf
property which was issued after the first suit was decreed; secondly, in the first suit,
which was essentially a suit for administration, the suit property was observed to
prima facie belong to Abdul Khuddus as a khazi inam.
42. The adjudication on the suit property was focussed around whether it
belonged to the mosque. Though the suit property was prima facie declared to not
belong to the mosque, it would not as a corollary mean that it was the personal
37
PART E
property of Khazi Abdul Khuddus over which he possessed an absolute or
inalienable right, particularly in view of his deposition that the property was given as
an inam to his forefathers for their services a Khazi. There was no discussion on
whether the suit property was a personal inam or an inam attached to the office;
there was no adjudication in the earlier suit on the terms of the grant. Thus, no
adjudication on the absolute title over the suit property was rendered in the former
suit. On reading together, the findings which have been arrived at in paragraph 7
and paragraph 10 of the judgment of the trial court in the first suit, it is evident that
the District Judge did not enter a conclusive finding that item 2 of the schedule to
that suit (which corresponds to the suit schedule property in the present case) was
the personal property of Abdul Khuddus. In fact, the use of the expression “ prima
facie right” in paragraph 10 extracted above clearly indicates that there was no
conclusive finding in the judgment of the District Judge. The District Judge also
noted it would be open to the trust to take steps as they deem fit in respect of item 2
and item 3 of the Schedule in that suit, if the defendant had not fulfilled the terms
specified in the grant. Thus the finding on issue No 1 that schedule items 1, 4 and
15 belong to the mosque must specifically be read in the context of what has been
stated above. From the above analysis, it becomes clear that there was no
adjudication in the earlier suit that Abdul Khudus had an absolute title to the suit
property.
43. In view of the above discussion, the suit that gives rise to the instant
proceedings is not barred by the first suit for the following reasons:
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PART E
(i) The court in the first suit was not ousted from determining if the suit
property belonged to the mosque while settling a scheme for
administration in a suit under Section 92 CPC;
(ii) The suit under Section 92 is of a representative character and the decree
would bind all persons interested in the Trust property;
(iii) There was a ‘prima facie’ finding in the former suit that the suit property
belonged to Abdul Khuddus; and
(iv) In the context of a suit for settling a scheme of administration, the issue in
the first suit was whether the suit property belonged to Jamia Masjid.
There was no adjudication or finding that Khazi Abdul Khuddus had
absolute title over the property, particularly in view of the deposition of
Abdul Khuddus that the property was given as a Khazi Inam, coupled with
the observation of the court that he had a ‘prima facie’ right over the
property. Therefore, the alleged claim of title of Abdul Khuddus was not
adjudicated. Thus, the matters which were in issue before the court in the
first suit and the instant proceedings are distinct.
II OS 748 of 1968: the second suit
44. The suit was instituted by the Mysore State Board of Wakf. Abdul
Khuddus and H.S . Gururajarao were impleaded as the first and second defendants
to the suit. The plaint contained the following averments:
(i) The suit property is a wakf property dedicated as a ‘Khazi Service Inam’.
People who perform the service of a Khazi are entitled to remain in
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PART E
possession of the service inam and to realise the usufruct after paying the
wakf fund;
(ii) Abdul Khuddus was entitled to remain in possession by virtue of his
office as Khazi, apart from which he had no right, title or interest;
(iii) The suit property had been notified as a wakf pursuant to enquiry. A
Gazette notification had been issued on 10 July 1965 notifying the suit
property as a wakf property;
(iv) The cause of action arose on 10 July 1965 when the illegal and forcible
occupation of the suit property by the second defendant came to the
knowledge of the plaintiff; and
(v) The reliefs sought were:
a. A declaration that the property constitutes a wakf;
b. A decree for possession of the suit property.
45. The second defendant filed a written statement stating that he was
prepared to pay rent in the event that the property was held to be wakf property.
A compromise petition was filed by the parties under Order 23 Rule 1 CPC on 27
October 1969 which envisaged that the second defendant shall continue to be
the lessee of the suit property till the expiry of the period of lease (end of May
1971) for which the lease amount shall to paid to first defendant. In the
alternative, if he desired to extend his lease thereafter, he could enter into a fresh
agreement of lease with the first defendant, failing which he would vacate after
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PART E
demolition of the building. The suit was decreed on 27 October 1969 in terms of
the compromise petition. The basis and foundation in the second suit was that:
(i) The plea that the suit property is a wakf on the basis of which a
declaration was sought;
(ii) Abdul Khuddus was entitled to possession only in his capacity as a
khazi, the grant being a khazi service inam;
(iii) The property has been notified as a wakf in the Mysore State Gazette
on 10 July 1965 pursuant to a declaration of a wakf subscribed to by
Abdul Khuddus;
(iv) The compromise decree envisages that H.S . Gururajarao would pay the
rent to the first defendant and hand over possession of the suit property to
the first Defendant on the completion of the tenure of the lease. There is
no clause in the compromise deed that Abdul Khuddus had absolute title
to the property; and
(v) In the second suit, the State Wakf Board sought declaratory relief and a
decree for possession. A reading of the plaint would indicate that the
essential nature of the grievance was in respect of a lease granted to the
second defendant. The case of the Wakf Board was that the property had
been dedicated as a wakf and was notified in the Gazette as a wakf; Abdul
Khuddus was entitled by virtue of his office as khazi to the usufruct; and
the lease in favour of the second defendant would not bind the wakf
Board. The suit was compromised and the second defendant agreed to
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PART E
handover possession to the first defendant. No part of the claim was
abandoned on the question of title of Abdul Khuddus.
E.2.4 Compromise decree and Res Judicata
46. It is contended by the counsel for the appellant that since a compromise deed
was arrived at between the Mysore State Board of Wakf, Abdul Khuddus and the
lessee with regard to the possession of the suit property, the other reliefs have been
abandoned. It was thus contended that in view of the compromise deed, the claim of
title to the suit property has been abandoned and cannot be raised in the
30
subsequent suit. In Pulavarthi Venkata Subba Rao v. Valluri Jagannadha Rao
31
and Sunderabai v. Devaji Shankar Deshpande , this Court held that since a
compromise decree is not a decision of the court, the principle of res judicata cannot
be made applicable. However, it was held that the compromise decree may in effect
create estoppel by conduct between the parties, and the parties by estoppel will be
prevented from initiating a subsequent suit. Chief Justice Bhagwati (as he was then)
writing for a three judge bench in observed:
Sunderabai
“12. The bar of res judicata however, may not in terms be
applicable in the present case, as the decree passed in Suit No.
291 of 1937 was a decree in terms of the compromise. The
terms of Section 11 of the CPC would not be strictly applicable
to the same but the underlying principle of estoppel would still
apply. Vide: the commentary of Sir Dinshaw Mulla on Section 11
of the CPC at p. 84 of the 11th Edn. under the caption Consent
decree and estoppel:
“The present section does not apply in terms to consent
decrees; for it cannot be said in the cases of such decrees that
the matters in issue between the parties ‘have been heard and
finally decided’ within the meaning of this section. A consent
decree, however, has to all intents and purposes the same
30
AIR 1967 SC 591
31
AIR 1954 SC 82
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PART E
effect as res judicata as a decree passed in invitum . It raises an
estoppel as much as a decree passed in invitum. ”
Since it is the principle of estoppel by conduct that will bar the institution of the
subsequent suit, it is pertinent that we refer to the compromise decree to determine
if any compromise was arrived at between the parties on the title to the suit property.
On a perusal of the compromise deed, it is evident that a compromise was reached
only on the issue of possession and lease. When no compromise was arrived at
between the parties on the title to the suit property, then no estoppel by conduct
could also be inferred. Additionally, the counsel for the respondent referred to Order
23 Rule 3A to contend that a subsequent suit is barred when the previous suit is
dismissed through a compromise decree. However, the provision would not be
applicable to the case at hand since it only bars the challenge to a compromise
decree on the ground that it is unlawful. Therefore, the disposal of the second suit in
view of the compromise would not bar the filing of the suit out of which the instant
proceedings arise.
III.
OS 100 of 1983: the third suit
47. The suit was instituted in the Court of Munsif at Gubbi by the Karnataka
Wakf Board. The defendants were Khazi Abdul Masood son of Abdul Khuddus (the
first defendant) while the second, third, fourth and fifth defendants were persons to
whom the property was sought to be alienated by the first defendant.
48. In was averred in the plaint that the cause of action arose when the first
defendant who had no right and interest in the suit schedule property was trying to
interfere with the possession of the plaintiff with the assistance of the second, third
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PART E
and fourth defendants. The relief which was sought in the suit was a permanent
injunction restraining the defendants from interfering with the possession of the
plaintiff – Karnataka Board of Wakfs. The suit was instituted on 4 August 1983.
Significantly, the suit out of which the present dispute arises was instituted on 5
November 1984 for seeking declaration and possession. It was only thereafter on 22
November 1984 that OS 100 of 1983 was withdrawn. OS 100 of 1983 was a suit for
a bare injunction and no declaration was claimed. In any event there was no
adjudication on merits.
49. The third suit of 1983 instituted by the Karnataka Board of Wakfs was a suit
for injunction simpliciter. No question of title was raised and none was adjudicated
upon. As a matter of fact, the suit was instituted on the apprehension that the
property was likely to be alienated by the legal representatives of Abdul Khuddus.
Before the suit of 1983 was withdrawn, the suit out of which these proceedings arise
was instituted for seeking comprehensive reliefs in terms of a declaration of title and
a permanent injunction. Therefore, the decision in the third suit does not bar the
initiation of the suit out of which the instant proceeding arises.
50. The High Court dismissed the second appeal holding that the courts
conclusively decided on the title to the suit property in the first suit (OS 92/1950-51)
and that any subsequent suit on the same issue of title would be barred by the
principles of res judicata. In view of the discussion above, this finding arrived at by
the High Court is erroneous. While holding that the judgment in the first suit has
conclusively decided that the title over the suit property belongs to Abdul Khuddus,
the High Court has lost sight of the observations in paragraph 7 and 10 of the
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PART E
judgment of the trial court. It has been specifically held there that the suit property
was a Khazi service Inam and that Abdul Khuddus has a prima facie right to the suit
property. There was no adjudication to the effect that Abdul Khuddus had an
absolute title to the suit property. Additionally, the decision of the courts in the first
suit was delivered before the suit property was notified as a wakf property in view of
Notification No. MWB 19(11) dated 6 July 1965. The principle of res judicata can
thus not be applied without taking into consideration this changed circumstance.
51. We are also of the opinion that the High Court has committed an error in
applying the principle of res judicata based on the judgment in the second suit. It
was observed by the High Court that the second suit that was decreed in terms of
the compromise was intended to put the litigation to an end and would thus bar any
subsequent suit on the title to the suit property by virtue of the principle of res
judicata . For this purpose, reliance was placed on a two judge bench decision of this
court in Byram Pestonji Gariwala (supra) where it was held that a challenge to a
consent decree six years later was vitiated by reason of delay, estoppel, and res
judicata. However, the High Court lost sight of the fact that the compromise deed
was entered into specifically with regard to the handing over of possession of the
suit property by the lessee at the end of the lease and no compromise on the title to
the suit property was arrived at.
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PART F
F. The Conclusion
52. In view of the discussion above, we summarise our findings below:
(i) Issues that arise in a subsequent suit may either be questions of fact or of law
or mixed questions of law and fact. An alteration in the circumstances after
the decision in the first suit, will require a trial for the determination of the plea
of res judicata if there arises a new fact which has to be proved. However, the
plea of res judicata may in an appropriate case be determined as a
preliminary issue when neither a disputed question of fact nor a mixed
question of law or fact has to be adjudicated for resolving it;
(ii) While deciding on a scheme for administration in a representative suit filed
under Section 92 of the CPC the court may, if the title is contested, have to
decide if the property in respect of which the scheme for administration and
management is sought belongs to the Trust;
(iii) A suit under section 92 CPC is of a representative character and all persons
interested in the Trust would be bound by the judgment in the suit, and
persons interested would be barred by the principle of res judicata from
instituting a subsequent suit on the same or substantially the same issue;
(iv) Since the first suit (OS 92 of 1950-51) was filed by members interested in the
Jamia Masjid and the suit out of which the instant proceedings arise (OS 149
of 1998) was filed by the President of Jamia Masjid, the formulation in (iii)
above is satisfied;
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PART F
(v) There was no adjudication in the first suit (OS 92 of 1950-51) on whether
Abdul Khuddus had absolute title to the suit property. There was only a prima
facie determination that Items 2 and 3 of the schedule of properties to the first
suit belonged to Abdul Khuddus. The matters substantially in issue in OS 92
of 1950-51, which was a suit for administration and management of trust
properties and for accounts, are distinct from the issues in the suit out of
which the instant proceedings arise. Therefore, OS 149 of 1998 is not barred
by res judicata in view of the decision in the first suit;
(vi) While a compromise decree in a prior suit will not bar a subsequent suit by
virtue of res judicata , the subsequent suit could be barred by estoppel by
conduct. However, neither the compromise petition dated 27 October 1969
nor the final decree in the second suit dated 27 October 1969 indicate that a
compromise on the title to the suit property was arrived at. The compromise
was restricted to the issue of the erstwhile lessee handing over possession of
the suit property at the end of the lease; and
(vii) The third suit (OS 100/1983) was a suit for an injunction simpliciter. The third
suit was withdrawn after the suit out of which the instant proceeding arises
was filed for seeking a substantive declaration and an injunction. No
adjudication on the rights of the parties was made in the third suit.
53. For the above reasons, we allow the appeal and set aside the impugned
judgment and order of the High Court of Karnataka dated 23 January 2012 in RSA
2189 of 2007. OS 149 of 1998 is restored to the file of the Principal Civil Judge
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PART F
(Senior Division) Tumkur for trial. Having regard to the fact that the suit was
instituted in 1998, the Trial Judge is requested to dispose of the suit and to complete
trial within a period of one year from the date of the receipt of the certified copy of
this judgment. There shall be no order as to costs.
54. Pending application(s), if any, shall stand disposed of.
……..…….……………………………………….J
[Dr Dhananjaya Y Chandrachud]
…….…..…….………………………………….J
[Vikram Nath]
…….…..…….………………………………….J
[Hima Kohli]
New Delhi;
September 23, 2021
48