{"id":15769,"date":"1995-12-01T00:00:00","date_gmt":"1995-11-30T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/kabari-pvt-ltd-vs-shivnath-shroff-and-ors-on-1-december-1995"},"modified":"2019-04-03T13:52:09","modified_gmt":"2019-04-03T08:22:09","slug":"kabari-pvt-ltd-vs-shivnath-shroff-and-ors-on-1-december-1995","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/kabari-pvt-ltd-vs-shivnath-shroff-and-ors-on-1-december-1995","title":{"rendered":"Kabari Pvt. Ltd vs Shivnath Shroff And Ors on 1 December, 1995"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Kabari Pvt. Ltd vs Shivnath Shroff And Ors on 1 December, 1995<\/div>\n<div class=\"doc_bench\">Bench: G.N. Ray, Dr. A.S. Anand<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  11517 of 1995\n\nPETITIONER:\nKABARI PVT. LTD.\n\nRESPONDENT:\nSHIVNATH SHROFF AND ORS.\n\nDATE OF JUDGMENT: 01\/12\/1995\n\nBENCH:\nG.N. RAY &amp; DR. A.S. ANAND\n\nJUDGMENT:\n<\/pre>\n<p>JUDGEMENT<\/p>\n<p>1995 SUPP. (6) SCR 77<\/p>\n<p>The Judgment of the Court was delivered by &#8216;<\/p>\n<p>G.N. RAY, J. Leave granted. Heard learned counsel for the parties.\n<\/p>\n<p>The Appeals arising out of Special leave petition (Civil) Nos. 6912 and<br \/>\n6914 of 1994 which have been preferred against the order of the Division<br \/>\nBench of the Calcutta High Court passed on the Review Application for<br \/>\nrecalling the order dismissing Appeal No. 619 of 1992 arising out of Suit<br \/>\nNo. 531 of 1981 instituted in the ordinary original civil jurisdiction of<br \/>\nthe Calcutta High Court. The appeals arising out of Special leave petition<br \/>\n(Civil) Nos. 6254 and 6913 of 1994 are directed against the order passed by<br \/>\nthe Division Bench of the Calcutta High Court on the Review Application for<br \/>\nsetting aside the order passed in Appeal No. 410 of 1992 arising out of an<br \/>\norder refusing to grant extension of time to effect amendment of plaint in<br \/>\nSuit No. 531 of 1981. For the purpose of appreciating the rival contentions<br \/>\nof the parties in these appeals, the relevant facts relating to the<br \/>\naforesaid Suit No. 531 of 1981 and two appeals being Appeal Nos. 619 and<br \/>\n410 of 1992 arising out of Suit No. 531 of 1981 are to be noted as<br \/>\nhereunder.\n<\/p>\n<p>There was an agreement on September 21, 1978, for sale of Property No. 8A.<br \/>\nBurdwan Road, Calcutta, for a consideration of Rs. 2 lacs between the<br \/>\nplaintiffs and the defendants. The agreement was signed in the Office of<br \/>\nSolicitors of the defendants-Vendors, namely. M\/s. Khaitan &amp; Co. The<br \/>\nplaintiff No. 1 was already in possession of the said property. Pursuant to<br \/>\nsuch agreement, the plaintiff had paid earnest money by cheque on August<br \/>\n28, 1978. On January 15. 1979, a further sum of Rs. 15,000 was paid by the<br \/>\nplaintiff No. 1 by cheque. The Draft Deed of Conveyance was duly approved<br \/>\nby the Solicitors of the vendors. The Vendors made an application on June<br \/>\n23, 1980 for permission for sale in favour of the plaintiffs before the<br \/>\nauthorities under the Urban Land and Ceiling Act. On July 1, 1981, the<br \/>\nSolicitors of the vendors, namely, M\/s. Khaitan &amp; Co. informed the<br \/>\nsolicitors of the plaintiffs that the permission to sale had been refused<br \/>\nby the authorities under the Urban Land and Ceiling Act. The Vendors,<br \/>\nhowever, transferred the said premises No. 8A. Burdwan Road, in favour of<br \/>\nM\/s. Kabari Pvt. Ltd. after obtaining permission from the Urban Land and<br \/>\nCeiling authority. The plaintiffs, namely, Shivanath Sharoff &amp; Ors., filed<br \/>\nthe suit for specific performance of the agreement in the ordinary original<br \/>\ncivil jurisdiction of the Calcutta High Court being Suit No. 531 of 1981.<br \/>\nIn the said suit, an application for interim injunction restraining the<br \/>\ndefendants, namely, the Vendors from dealing with or disposing or the said<br \/>\npremises was made and an ad interim order was passed on such application<br \/>\nfor interim injunction in favour of the plaintiff. On July 20, 1981 the<br \/>\ninterlocutory application appeared as New Motion when the defendants<br \/>\n(Vendors) appeared and submitted before the Court that the said premises<br \/>\nNo. 8A, Burdwan Road, had already been transferred to a third party,<br \/>\nnamely. M\/s. Kabari Pvt. Ltd. It was also contended by the defendants that<br \/>\nthe agreement of sale dated September 21, 1978 in favour of the plaintiffs<br \/>\nceased to exist due to refusal to sell the said property by the authorities<br \/>\nunder the Urban Land and Ceiling Act. The defendants (Vendors) also stated<br \/>\nthat by four separate deeds of conveyance all dated July 6. 1981 the said<br \/>\npremises had been conveyed in favour of the said M\/s. Kabari Pvt. Ltd. On<br \/>\nMarch 8, 1982, the plaintiffs made an application in the said Suit No. 531<br \/>\nof 1981 for amendment of the plaint seeking to implead M\/s. Kabari Pvt.<br \/>\nLtd. and also to effect other amendments in the body and prayer of the<br \/>\nplaint. On June 1, 1982. M\/s. Kabari Pvt. Ltd. affirmed an affidavit and<br \/>\nfiled the same in Court. On July 9, 1982, the Court after hearing the<br \/>\nparties including M\/s. Kabari Pvt. Ltd. allowed the application for<br \/>\namendment of plaint and the added respondent, namely, the said M\/s. Kabari<br \/>\nPvt. Ltd. was restrained from alienating or encumbering the disputed<br \/>\npremises. On July 14, 1982, fresh writ of summons was directed to be issued<br \/>\nfor service on the added respondent, namely, M\/s. Kabari Pvt. Ltd. It is<br \/>\nthe case of the plaintiffs that the plaintiffs by their letter requested<br \/>\ntheir Solicitors M\/s. T. Banerjee &amp; Co. to comply with the orders passed by<br \/>\nthe Court for effecting service upon the added respondent. It is the<br \/>\nfurther case of the plaintiff that on July 28, 1982, the plaintiffs also<br \/>\nrequested M\/s. T. Banerjee &amp; Co. to carry out the amendment and to serve<br \/>\nthe writ of summons. It may be stated here that after purchasing the suit<br \/>\nproperty M\/s. Kabari Pvt. Ltd. filed a suit for eviction of the plaintiffs<br \/>\nfrom the suit premises before the learned Subordinate Judge, Allbore. By an<br \/>\norder dated September 22, 1982, the said suit was transferred to the High<br \/>\nCourt for disposal and the same is pending before the High Court.\n<\/p>\n<p>In March, 1986, M\/s T. Banerjee &amp; Co. the Solicitors of the plaintiffs<br \/>\nwrote a latter to the Inspecting Assistant Commissioner of Income tax on<br \/>\nbehalf of the plaintiffs that the entire matter relating to the transfer of<br \/>\nthe suit premises to Ms. Kabari Pvt. Ltd. was subjudice and pending<br \/>\ndecision of the Calcutta High Court. It is stated that Mr. Debashis<br \/>\nMukherjee, Advocate and Partner of M\/s. T. Banerjee &amp; Co. who was dealing<br \/>\nwith the said Suit No. 531 of 1981 for the plaintiffs died on November 15,<br \/>\n1990. On June 25, 1991, the suit appeared for scrutiny before the Senior<br \/>\nMaster on the original side of the Calcutta High Court and an Assistant of<br \/>\nM\/s. T. Banerjee &amp; Co. appeared before the Senior Master and the matter was<br \/>\nadjourned to July 11, 1991. Mr. Khanna, Assistant of M\/s. T. Banerjee &amp; Co.<br \/>\nagain appeared on behalf of the plaintiffs before the Senior Master on July<br \/>\n11, 1991 and prayed for time. Thereafter, on August 8, 1991 the suit again<br \/>\nappeared for scrutiny before the Senior Master and Mr. Sunil Mitra of M\/s.<br \/>\nT. Banerjee &amp; Co. appeared for the plaintiffs before the Senior Master and<br \/>\nprayed for three weeks time. The learned Advocate on behalf of M\/s. Kabari<br \/>\nPvt. Ltd. also appeared and the matter was adjourned till September 3,<br \/>\n1991. According to the plaintiffs. M\/s T. Banerjee &amp; Co. orally informed<br \/>\nthe plaintiff on August 8, 1991 that the suit had appeared in the scrutiny<br \/>\nlist. A letter to that effect was also written .by M\/s. T. Banerjee &amp; Co.<br \/>\nto the plaintiffs and according to the plaintiffs such letter was received<br \/>\nby the plaintiffs on August 14, 1991. After receiving oral information from<br \/>\nM\/s. T. Banerjee &amp; Co. the plaintiffs wrote on August 9, 1991 to M\/s. T.<br \/>\nBanerjee &amp; Co. that the plaintiffs had not been informed about the earlier<br \/>\norder passed on July 19, and July 14, 1982. In the said letter, the<br \/>\nplaintiffs expressed surprises and dissatisfaction as proper steps had not<br \/>\nbeen taken to effect amendment of the plaint. On September 3, 1991, the<br \/>\nsaid suit appeared for scrutiny before the Senior Master but since no<br \/>\nsitting had taken place on that date, the matter was preferred till<br \/>\nSeptember 11, 1991. On September 11, 1991, M\/s. T. Banerjee &amp; Co. requested<br \/>\nthe plaintiffs to call on their office for perusal of the draft application<br \/>\nprepared by the learned counsel and such application was affirmed. On<br \/>\nSeptember 26, 1991, the suit appeared before the Senior Master but nobody<br \/>\nappeared for the plaintiffs. The learned Advocate appearing for M\/s. Kabari<br \/>\nPvt. Ltd. However, submitted that the suit should be directed to be placed<br \/>\nin the special list. Accordingly, an order was passed for placing the suit<br \/>\nin the special list. M\/s. T. Banerjee &amp; Co. wrote to the plaintiffs on<br \/>\nSeptember 26, 1991, that the said suit appeared in the scrutiny list and<br \/>\nthe same would be placed in the special list for scrutiny. On September 10,<br \/>\n1991, the plaintiffs affirmed an application for extension of time to carry<br \/>\nout the amendment and on October 10, 1991 such application was moved in<br \/>\nCourt. It may be stated that M\/s. T. Banerjee &amp; Co. acted as Advocate on<br \/>\nRecord for the plaintiffs in connection with the application for extension<br \/>\nof time to carry out the amendment. On December 20, 1991 M\/s. T. Banerjee &amp;<br \/>\nCo. informed the plaintiff that the application had been adjourned till<br \/>\nJanuary 20,1991. The said application for extension of time to carry out<br \/>\nAmendment was, however dismissed by the Court on March 13, 1992. The<br \/>\nplaintiffs informed their Solicitors M\/s. T. Banerjee &amp; Co. on March 17,<br \/>\n1992 that the steps should be taken to prefer appeal. On May 27, 1992, an<br \/>\nappeal against order dated March 13, 1992 dismissing the application for<br \/>\nextension of time to effect amendment was filed. Such appeal was numbered<br \/>\nas appeal No. 410 of 1992. Oh June 18, 1992, the Registry of the High Court<br \/>\nissued notice to M\/s. T. Banerjee &amp; Co. informing that the suit should be<br \/>\nset down in the special list of the Hon&#8217;ble Judge taking interlocutory<br \/>\nmatters from July 14, 1992. Such notice had been received by M\/s. T.<br \/>\nBanerjee &amp; Co. The suit appeared before the Court. M\/s. Kabari Pvt. Ltd.<br \/>\nalso appeared through the learned counsel and the suit was dismissed. It<br \/>\nmay be mentioned here that the minutes of the Court proceeding indicate<br \/>\nthat Mr. Ranjanam Guha, learned Advocate appeared for the plaintiffs. The<br \/>\nplaintiffs were also informed by M\/s. T. Banerjee &amp; Co. that the suit<br \/>\nappeared in the special list and the prayer for a direction that the suit<br \/>\nshould go out of the special list was opposed by the defendants including<br \/>\nM\/s. Kabari Pvt. Ltd. and the suit was dismissed. The plaintiffs instructed<br \/>\nM\/s. T. Banerjee &amp; Co. their Solicitors to prefer an appeal against the<br \/>\norder of dismissal of the suit. Appeal No. 619 of 1992 was filed against<br \/>\nthe said order dated July 14, 1992 dismissing the suit. Both the said<br \/>\nappeals, namely, appeal No. 410 of 1992 appeal No. 619 of 1992 were,<br \/>\nhowever dismissed by a common judgment by the Division Bench of the<br \/>\nCalcutta High Court on February 16, 1993. At this stage the plaintiffs<br \/>\nchanged their Solicitors and M\/s. L.F. Aggarwala and Co. was engaged as<br \/>\ntheir Solicitors.\n<\/p>\n<p>On April 17, 1993, the plaintiffs filed two special leave petitions before<br \/>\nthis Court. Special leave petition (C) No. 8083 of 1993 was directed<br \/>\nagainst dismissal of the appeal No. 410 of 1992 arising out of the order<br \/>\nrefusing to extend that time to effect amendment and Special leave petition<br \/>\n(C) No. 8084 of 1993 was directed against dismissal of the appeal No. 619<br \/>\n.of 1992 (which arose out of the order of dismissal of Suit No. 331 of<br \/>\n1981). It may be stated here that M\/s. L.P. Agarwalla &amp; Co. acted as<br \/>\nAdvocates for the plaintiffs in both the said Special Leave Petitions. The<br \/>\nplaintiffs thereafter filed Review Petitions on June 17,1993 before the<br \/>\nCalcutta High Court for recalling the orders dismissing Appeals Nos. 410 of<br \/>\n1992 and 619 of 1992 and M\/s. L.P. Agarwalla &amp; Co. acted as Solicitors for<br \/>\nthe plaintiffs\/petitioners. It is to be noted here that the plaintiffs did<br \/>\nnot mention in the Review Applications that this Court had already been<br \/>\nmoved against the said orders of dismissal of the appeals by filing the<br \/>\naforesaid special leave petitions. The plaintiffs did not make any attempt<br \/>\nto get the said special leave petitions taken up for hearing. On the<br \/>\ncontrary, the learned counsel for the petitioners in the said special leave<br \/>\npetitions mentioned the matter on several occasions for adjournment. As a<br \/>\nresult, the special leave petitions were not even listed for hearing on<br \/>\nseveral occasions. It was only after the Review Petitions were allowed by<br \/>\nthe Calcutta High Court on March 18, 1994, the special leave petitions were<br \/>\nallowed to be dismissed as withdrawn on the prayer of the petitioners.\n<\/p>\n<p>Mr. Nariman, learned senior counsel appearing for the petitioners in<br \/>\nSpecial leave petition (C) Nos. 6913-6914 of 1994 has very strongly<br \/>\ncontended that the plaintiffs respondents Shivnath Shroff and others filed<br \/>\nthe said Suit No. 531 of 1981 for specific performance of contract in the<br \/>\nHigh Court and on the prayer of the plaintiffs to amend the body of the<br \/>\nplaint and also the prayer portion, the High Court allowed the prayer as<br \/>\nfar back as on July 9, 1982. On July 14, 1982-fresh writ of summons was<br \/>\ndirected to be issued for service on Kabari Pvt. Ltd. The plaintiffs in an<br \/>\nattempt to delay the hearing of the suit and in furtherance of the evil<br \/>\ndesign in adopting dilatory tactics, deliberately failed and neglected to<br \/>\ntake steps for effecting amendment of the plaint. The Suit appeared for<br \/>\nscrutiny before the Senior Master of the High Court (Original Side) on June<br \/>\n25, 1991 and thereafter on subsequent dates. But the plaintiffs did not<br \/>\ntake steps for effecting amendment even then. Mr. Nariman has submitted<br \/>\nthat even if it is accepted that Sri Debashish Mukherjee, Advocate and<br \/>\npartner of M\/s T. Banerjee &amp; Co. Solicitors was in charge of the said Suit<br \/>\nNo. 531 of 1981 and he having died on November 15, 1990, appropriate steps<br \/>\nin effecting amendment of plaint could not be taken by the plaintiffs on<br \/>\nearlier occasions, there cannot be any reasonable explanation for the<br \/>\nfailure on the part of the plaintiffs and their Solicitors in not taking<br \/>\nsteps at least from June 25, 1991 when the matter started appearing on<br \/>\nvarious dates before the Senior Master for scrutiny. It is not the case<br \/>\nthat because of death of Sri Mukherjee who was incharge of the said suit,<br \/>\nthe Solicitors of the plaintiffs lost sight of the suit. The plaintiffs as<br \/>\na matter of fact were represented either by an Assistant to the Solicitors<br \/>\nor by an Advocate appearing for the plaintiffs before the Senior Master.<br \/>\nAdmittedly, the plaintiffs were informed by their Solicitors on August 8,<br \/>\n1991 that for not taking steps in effecting amendment, the suit was<br \/>\nappearing before the Senior Master for scrutiny. Even then, the plaintiffs<br \/>\nand their Solicitors were not at all diligent to take appropriate steps<br \/>\nimmediately. It was only on September 30, 1991 an application for extension<br \/>\nof tune to carry out amendment was affirmed by the plaintiffs and only on<br \/>\nOctober 10, 1991 such application was moved in Court. The Court, however,<br \/>\nrightly rejected the said application on March 13, 1992 as the plaintiffs<br \/>\nfailed to satisfy the Court about the bona fide of the plaintiffs in not<br \/>\ntaking steps for effecting amendment from July, 1982, namely, for about 10<br \/>\nyears. Mr. Nariman has submitted that the suit thereafter appeared in<br \/>\n&#8216;Special List&#8217;. On July 14, when the suit appeared in &#8216;Special List&#8217;, Ms.<br \/>\nRanjanam Guha, learned Advocate appeared for the plaintiffs. The Court<br \/>\ndismissed the suit for gross negligence on the part of the plaintiffs. Mr.<br \/>\nNariman has submitted that it is quite evident that the Single Bench of the<br \/>\nHigh Court rejected the plea of the plaintiffs that there was no laches and<br \/>\nnegligence on their part and for negligence and laches on the part of their<br \/>\nsolicitors the plaintiffs should not be victimised.\n<\/p>\n<p>Mr. Nariman has submitted that although special leave petitions are not<br \/>\nstatutory appeals and exercise of jurisdiction under Article 136 of the<br \/>\nConstitution is discretionary with this Court, the fact remains that the<br \/>\norders of dismissal of the appeals by the High Court were assailed before a<br \/>\nsuperior court by filing special leave petitions. From the judgment<br \/>\ndisposing of the review applications, it does not appear that the attention<br \/>\nof the High Court was drawn that to the fact that prior to the filing of<br \/>\nreview applications, special leave applications had been filed before this<br \/>\nCourt and such applications had been pending disposal. Mr. Nariman has<br \/>\nsubmitted that if the petitioners had specifically stated in the review<br \/>\npetitions that this Court had already been moved by filing special leave<br \/>\npetitions and such applications were pending, in all probability, the High<br \/>\nCourt would not have entertained the review applications for disposal on<br \/>\nmerits. Pendency of two parallel proceedings for the same relief namely<br \/>\nsetting aside the orders dismissing the said appeals &#8211; one before the Apex<br \/>\nCourt by way of special leave petitions and the other before the High Court<br \/>\nby way of review applications cannot be encouraged because of the<br \/>\npossibility of inconsistent findings by the courts. Mr. Nariman has<br \/>\nsubmitted that review under Order 47 Rule 1 of the Code of Civil Procedure<br \/>\nmust be construed in a wider sense keeping in mind the underlying principle<br \/>\ninvolved, that before making review applications, no superior court has<br \/>\nbeen moved for getting the self same relief. He has submitted that gross<br \/>\ninjustice has been meted out to the defendants-petitioners by allowing<br \/>\nreviewing applications despite grossest negligence and laches on the part<br \/>\nof the plaintiffs in not carrying out the proceedings of the said suit<br \/>\ndiligently but indulging in dilatory tactics. He, therefore, submits that<br \/>\nthe special leave petitions should be allowed and impugned orders should be<br \/>\nset aside.\n<\/p>\n<p>Mr. Sanghi the learned senior counsel appearing for M\/s. Kabari Pvt. Ltd.<br \/>\nin the order two special leave petitions has supported Mr. Nariman in his<br \/>\nsubmission both on facts and law.\n<\/p>\n<p>Mr. Sanghi has submitted that the plaintiffs-respondents cannot be<br \/>\npermitted to contend that they are not required to keep vigil about the<br \/>\nprogress of the suit and carriage of the proceedings in connection with the<br \/>\nsame. The plaintiffs are educated businessmen. They stay in Calcutta<br \/>\nitself. It is not the case of the plaintiffs that Sri Debashish Banerjee, a<br \/>\npartner of their solicitors T. Banerjee and Company who is stated to have<br \/>\nbeen dealing with their case in the High Court, had wrongly informed the<br \/>\nplaintiffs that all necessary steps for effecting amendment of plaint had<br \/>\nbeen taken and on such representation they had no occasion to cause any<br \/>\nenquiry in the matter. Mr. Sanghi has submitted that the letter dated<br \/>\nAugust 9, 1991 stated to have been written by the plaintiffs to their<br \/>\nsolicitors T. Banerjee and Company on getting oral information from the<br \/>\nsolicitors on August 8, 1991 that the suit had been placed in the scrutiny<br \/>\nlist on account of failing to take steps in effecting amendment of the<br \/>\nplaint, should not be accepted to have been bona fide written on 9th<br \/>\nAugust. Such letter, according to Mr. Sanghi, was later on fabricated for<br \/>\nthe purpose of showing that the plaintiffs solicitors had let them down by<br \/>\nkeeping them in darkness about the progress of the suit. Mr. Sanghi has<br \/>\nvery strongly contended that the role of the plainfiffs even when<br \/>\nadmittedly they came to know that their solicitors miserably failed to take<br \/>\nproper steps in the carriage of proceedings in the suit and the solicitors<br \/>\nalso failed to keep them informed about the developments of the suit, is<br \/>\nfar from being satisfactory. The plaintiffs ought to have ensured either by<br \/>\npersonally attending to the matter or by sending some of their officers,<br \/>\nthat steps for enlarging the date for taking steps in effecting amendment<br \/>\nof plaint was taken immediately. It is an admitted position that the matter<br \/>\nappeared before Senior Master on a number of occasions and only on October<br \/>\n10, 1991 an application for extension of time was made by the plaintiffs,<br \/>\nwhich was rightly rejected by the Court.\n<\/p>\n<p>Mr. Sanghi has also submitted that the plaintiffs did not change their<br \/>\nsolicitors even when the application for extension of time was dismissed<br \/>\nand later on when the suit itself was dismissed. Admittedly the same<br \/>\nsolicitors namely Messers T. Benerjee and Company were retained for<br \/>\npreferring both the said appeals. It was only when both the appeals were<br \/>\ndismissed by the High Court, the plaintiffs changed their solicitors and<br \/>\nMessers L.P. Agarwalla and Company was engaged at their solicitors. Mr.<br \/>\nSanghi has submitted that such change was made designedly to put blames on<br \/>\ntheir previous solicitors and to make out a false case of alleged discovery<br \/>\nof some relevant facts relating to the steps taken by their previous<br \/>\nsolicitors so that a case for filing review application may be made out.<br \/>\nMr. Sanghi has submitted that M\/s. Kabari Private Limited had purchased the<br \/>\nproperty long back. They are keen to get possession of the property. The<br \/>\nsuit for eviction of the plaintiffs who are in possession of the disputed<br \/>\nproperty had been transferred to High Court because of the said title suit<br \/>\ninstituted by the plaintiffs in the High Court claiming specific<br \/>\nperformance of contract was pending in the High Court. Mr. Sanghi has<br \/>\nsubmitted that M\/s. Kabari Private Limited has been suffering serious<br \/>\nprejudice on account of frivolous litigation and proceedings arising out of<br \/>\nit at the instance of the plaintiffs for prolonging their illegal<br \/>\noccupation of the suit property.\n<\/p>\n<p>Mr. Sanghi has submitted that the plaintiffs knew well that there was no<br \/>\ncase for review of the orders dismissing the said appeals. Hence, as a last<br \/>\nresort they preferred special leave petitions before this Court assailing<br \/>\nthe orders dismissing the said appeals. He has submitted that in the facts<br \/>\nof the case, it is quite apparent that later on, applications for review<br \/>\nhad been filed before the High Court on false and fabricated premises. In<br \/>\nthe review petitions, the plaintiffs deliberately suppressed the fact that<br \/>\nthey had already approached the Apex Court for assailing the orders of<br \/>\ndismissal of the appeals by preferring special leave petitions.\n<\/p>\n<p>Mr. Sanghi has submitted that even though from the degree dismissing the<br \/>\nsuit by the High Court, a litigant can not maintain an appeal as a matter<br \/>\nof right but an appeal certainly lies to this Court, subject to grant of<br \/>\nleave by the High Court or grant of special leave by this Court. He has<br \/>\nsubmitted that the expression &#8220;from which an appeal is allowed&#8221; appearing<br \/>\nin clause (a) of Order 47 Rule 1,C.P. Code must be construed liberally so<br \/>\nthat appeal preferred before this Court by filing special leave petitions<br \/>\nto admit the appeal for assailing the judgment or order of a court inferior<br \/>\nto it operates as a bar to the maintainability of a review application<br \/>\nfiled subsequently before the High Court for the same purpose namely for<br \/>\nassailing the impugned judgment. The salutary principle which bars two<br \/>\nparallel proceedings initiated before two different forums namely the court<br \/>\nwhich would review its own judgment and the superior court which would<br \/>\nconsider the correctness of the said judgment would be defeated if the<br \/>\nexpression appeal is allowed is given a narrow interpretation thereby<br \/>\nlimiting it to an appeal which may be preferred as a matter of right<br \/>\nwithout requiring any leave to be granted for preferring such appeal. Mr.<br \/>\nSanghi has submitted that the plaintiffs in this case have exercised option<br \/>\nto assail the impugned judgments by preferring appeals before this Court by<br \/>\ngranting special leave instead of getting the said judgments reviewed by<br \/>\nthe High Court. In such circumstances, the review applications must be held<br \/>\nas not maintainable and should be treated as dismissed. Mr. Sanghi has<br \/>\nsubmitted that the plaintiffs are guilty of a sharp practice in suppressing<br \/>\nthe factum of presentation of the special leave petitions before this Court<br \/>\nprior to the filing of the review applications before the High Court by not<br \/>\nmentioning this important fact in the review applications. He has,<br \/>\ntherefore, submitted that the impugned orders passed by the High Court in<br \/>\nallowing the review application should be dismissed with exemplary cost.\n<\/p>\n<p>Mr. Salve, the learned Senior counsel appearing for the plaintiffs<br \/>\nrespondents, however, refuted the contentions of both Mr. Nariman and Mr.<br \/>\nSanghi. Mr. Salve has submitted that the suit was instituted in the<br \/>\nordinary original jurisdiction of the Calcutta High Court. The High Court<br \/>\nhas framed special rules of procedure for the carriage of the proceedings<br \/>\nin the suit instituted in the original side. Precisely for the said reason,<br \/>\nthe service of a reputed solicitors firm namely Messers T. Banerjee and<br \/>\nCompany was requisitioned by the plaintiffs. The Plaintiffs and their<br \/>\npredecessors had close association with Messers T. Banerjee and Company and<br \/>\nthe plaintiffs had reposed trust and confidence in such firm in the matter<br \/>\nof carriage of the proceedings in the said suit. The court in its<br \/>\nexperience can take notice of the fact that disposal of suit in the High<br \/>\nCourt takes several years. Hence, it is neither necessary nor practicable<br \/>\nto cause enquiries every now and then about the progress of the suit.<br \/>\nMoreover when a reputed and experienced solicitors firm had been engaged by<br \/>\nthe plaintiffs, there was enough justification on their part to depend on<br \/>\nsuch firm. The criticism that plaintiffs being educated businessman staying<br \/>\nin Calcutta itself should have ensured either by themselves or by their<br \/>\nofficers that proper steps in the suit were being taken in the suit, is not<br \/>\nproper and justified. Mr. Salve has submitted that plaintiffs on coming to<br \/>\nlearn that the suit was placed in scrutiny list for not taking proper steps<br \/>\nin effecting amendment expressed their shock and anguish for failure to<br \/>\ntake appropriate steps in their letter dated August 9, 1991 addressed to<br \/>\ntheir solicitors. Because of the long association with the said firm the<br \/>\nplaintiffs did not change the solicitors and retained their services till<br \/>\nthe hearing of the said appeals. But as it finally appeared to the<br \/>\nplaintiffs that solicitors were not only guilty of serious laches but were<br \/>\nno longer dependable, they change the solicitors firm and Messers L.P.<br \/>\nAgarwalla and Company were engaged as their solicitors. Mr. Salve has<br \/>\nsubmitted that all relevant facts could not be placed before the Court at<br \/>\nthe time of disposal of the appeals. But with the change of the solicitors<br \/>\nand on obtaining further materials in possession of the old solicitors,<br \/>\nreview applications had been made by drawing attention of the Court to the<br \/>\nfacts and circumstances which amply demonstrated that the plaintiffs were<br \/>\nnot guilty of laches and negligence but they fell victim to the laches and<br \/>\nnegligence on the part of their previous solicitors and the Court, on<br \/>\nconsideration of relevant facts, has felt that the unfortunate litigants<br \/>\nshould not suffer for laches and negligence of their solicitors and keeping<br \/>\nthe paramount consideration of ends of justice, allowed the review<br \/>\napplications. Mr. Salve has also submitted that although in the review<br \/>\napplications the factum of presenting the special leave petitions before<br \/>\nthis Court was not specifically mentioned but he has mentioned that he is<br \/>\ninstructed to submit that such fact was made known to the court before<br \/>\ndisposal of the said review applications. He has submitted that the<br \/>\nallegations of sharp practice being resorted to by the plaintiffs and<br \/>\ndeliberate suppression of material facts namely non disclosure of<br \/>\npresentation of special leave petitions before filing review applications<br \/>\nand pendency of such petitions are unfortunate and not correct out the same<br \/>\nhave been made to cause prejudice against the plaintiffs respondents.\n<\/p>\n<p>Mr. Salve has submitted that special leave petitions under Article 136 of<br \/>\nthe Constitution stand entirely on a different footing. Exercise of<br \/>\njurisdiction of this Court under Article 136 is absolutely discretionary<br \/>\nand not as a matter of course or must. In this connection, Mr. Salve has<br \/>\nreferred to the decision of this Court in <a href=\"\/doc\/964085\/\">Collector of Central Excise v.<br \/>\nM\/s Standard Motor Products,<\/a> [1989] 2 SCC 303 wherein this Court has<br \/>\nindicated that jurisdiction exercised by this Court under Article 136 of<br \/>\nConstitution in the matter of granting leave to appeal before it being<br \/>\ndiscretionary, stands as a separate class. Mr. Salve has submitted that<br \/>\napplication for special leave, therefore, cannot be equated with an appeal<br \/>\nas allowed since contemplated under Order 47 Rule l(a) C.P. Code as sought<br \/>\nto be contended. Mr. Salve has submitted that interpretation of procedural<br \/>\nlaw which debars availing court&#8217;s consideration for furtherance of the<br \/>\ncause of justice should be strictly construed. He has submitted that review<br \/>\napplications presented before the High Court after filing a special leave<br \/>\npetitions were maintainable and contentions to the contrary should not be<br \/>\ncountenanced.\n<\/p>\n<p>Referring to Order 6 to Rule 18 C.P. Code Mr. Salve has submitted that even<br \/>\nif it is assumed that the plaintiffs failed to bring about amendment of the<br \/>\nplaint within time, the suit should proceed with unamended plaint but<br \/>\ndismissal of the suit cannot be justified. Mrs. Salve has submitted<br \/>\nprocedural law must be applied for furtherance of justice and not for its<br \/>\nhindrance. In the instant case the High Court felt that the suit should not<br \/>\nhave been dismissed in the special facts of the case and therefore allowed<br \/>\nthe review applications. Such order, in any event, does not call for<br \/>\ninterference by this Court by granting special leave. He, therefore,<br \/>\nsubmits that special leave petitions should be dismissed.\n<\/p>\n<p>Ms. Ganguli, learned senior counsel appearing for the plaintiff-respondents<br \/>\nin one of the appeals (arising out of S.L.P. No. 6914 of 1994) has also<br \/>\nrefuted the contentions made by Sri Nariman and Sri Sanghi. He has strongly<br \/>\ncontended that the suit of the plaintiffs did not deserve to be dismissed<br \/>\non account of failure-by the solicitors to take appropriate steps in<br \/>\neffecting the amendment of the plaint. Mr. Ganguli has submitted that the<br \/>\nplaintiffs being not conversed with the special procedures in the carriage<br \/>\nof proceedings in the suit in the ordinary original civil jurisdiction of<br \/>\nthe Calcutta High Court engaged a reputed firm of solicitors. It is evident<br \/>\nthat the plaintiffs could not afford taking risk of getting the suit<br \/>\ndismissed by following dilatory tactics because the stake in the suit is<br \/>\nquite high for the plaintiffs. Mr. Ganguli has submitted that unfortunately<br \/>\nthe appeals were dismissed by the High Court by not appreciating that the<br \/>\nlaches and negligence were not directly attributable to the plaintiffs but<br \/>\nthey fell victim to laches and negligence of their solicitors. He has also<br \/>\nsubmitted that after the change of the solicitors, the new solicitors found<br \/>\nother relevant facts and circumstances which not being made known to the<br \/>\nplaintiffs, could not placed for court a consideration earlier. Such facts<br \/>\namply demonstrate the bonafide on the part of the plaintiffs in proceeding<br \/>\nwith the suit. Mr. Ganguli has also submitted that the High Court even<br \/>\nthough dismissed the appeals, considered such further materials in<br \/>\ndisposing review applications and became satisfied that the dismissal of<br \/>\nthe appeals was not warranted and the plaintiffs did not deserve to be<br \/>\nvictimised. The review applications were accordingly allowed.\n<\/p>\n<p>Mr. Ganguli has submitted that the Court has always an anxiety to ensure<br \/>\nthat the justice does not get defeated in the vortex of technicality of<br \/>\nprocedural law. Mr. Ganguli has also submitted that application for special<br \/>\nleave to appeal before this Court cannot be treated as preferring an appeal<br \/>\nfor the purpose of Order 47 Rule 1 of the Code of Civil Procedure. He has<br \/>\nsubmitted that the remedy sought by making an application under Article 136<br \/>\nof the Constitution before this Court is an extra ordinary remedy and not a<br \/>\nremedy by way of preferring an appeal before this Court. In this<br \/>\nconnection, Mr. Ganguli has referred to a decision of this Court in <a href=\"\/doc\/1919169\/\">Laxman<br \/>\nMaratrao Navakhare v. Keshavrao,<\/a> [1993] 2 SCC 270. In the said decision, it<br \/>\nhas been held by this Court that Article 136(1) of the Constitution confers<br \/>\non the Supreme Court overriding and extensive powers of granting special<br \/>\nleave to appeal. It does not confer a right to appeal. It confers a right<br \/>\nto apply for special leave to appeal which is in the discretion of the<br \/>\nCourt. The discretionary power under Article 136 cannot be construed as to<br \/>\nconfer a right of appeal where none exists. Although the power under<br \/>\nArticle 136 (1) is unfettered, but is cannot be held that after having<br \/>\nentertained a special leave petition against any final or interlocutory<br \/>\norder, the Supreme Court converts itself into a court of appeal for the<br \/>\nhearing of the dispute involved.\n<\/p>\n<p>Mr. Ganguli has submitted that as the special leave petition stands<br \/>\nentirely on a different footing and it cannot be deemed to be an appeal<br \/>\nbefore a superior court, the plaintiffs had justification in not mentioning<br \/>\nthe factum of presenting special leave petitions before this Court in<br \/>\nreview applications. Such non-disclosure of the factum of presenting<br \/>\nspecial leave petitions before filing the review applications, therefore,<br \/>\ncannot be held to be a sharp practice designed to keep back from the High<br \/>\nCourt a relevant fact which was required to be considered in the context of<br \/>\nmaintainability of the review application. Mr. Ganguli has submitted that<br \/>\nwhen the High Court became satisfied that gross injustice was meted out the<br \/>\nplaintiffs for laches and negligence not attributable to them and on such<br \/>\nconsiderations restored the appeal by allowing the review applications,<br \/>\nthis Court, in its discretionary jurisdiction, should not interfere with<br \/>\nthe impugned order more so when such order has advanced the cause of<br \/>\njustice instead of hindering the same. Mr. Ganguli has, therefore,<br \/>\nsubmitted that the appeals should be dismissed.\n<\/p>\n<p>Having considered the facts and circumstances of the case and the orders<br \/>\ndismissing the appeals and also the impugned Judgment allowing the review<br \/>\napplications by the High Court and having given our anxious consideration<br \/>\nto the respective contentions of the learned Senior Counsel forcefully<br \/>\nplaced before us, it appears to us that the plaintiffs failed and neglected<br \/>\nto take proper steps in the carriage of proceedings of the suit. The<br \/>\nplaintiffs failed Suit No. 531 of 1981 in the ordinary original civil<br \/>\njurisdiction of the Calcutta High Court. An application for interim<br \/>\ninjunction was made by the plaintiffs for restraining the defendants,<br \/>\nnamely, the vendors of the suit property from dealing with or disposal of<br \/>\nthe suit premises and on such application, an ad interim order was passed<br \/>\nin favour of the plaintiffs. On July 20, 1981, the interlocutory<br \/>\napplication appeared as New Motion when the defendants appeared and<br \/>\nsubmitted before the High Court that the suit premises had already been<br \/>\ntransferred to a third party, namely M\/s Kabari Pvt. Ltd.. The defendants<br \/>\n(vendors) also disclosed to the Court that by four separate deeds of<br \/>\nconveyance all dated July 6, 1981, the suit premises had been conveyed to<br \/>\nMs. Kabari Pvt. Ltd. As the property in question had been conveyed prior to<br \/>\nthe institution of the suit, the plaintiffs felt the need to implead M\/s<br \/>\nKabari Pvt. Ltd. also as a defendant in the said suit and they made an<br \/>\napplication for amendment of the plaint for incorporating facts not pleaded<br \/>\nand also for moulding the prayer. As far back as in July 1982, the Court,<br \/>\nafter hearing the parties, allowed an application for amendment of the<br \/>\nplaint and restrained M\/s. Kabari Pvt. Ltd. from alienating or encumbering<br \/>\nthe disputed premises. Pursuant to the leave granted for amendment of the<br \/>\nplaint, a writ of summons was directed to be issued on July 14, 1982 to M\/s<br \/>\nKabari Pvt. Ltd. It may be noted here that M\/s. Kabari Pvt. Ltd. instituted<br \/>\na suit for eviction of the plaintiffs in the Court of learned Subordinate<br \/>\nJudge at Alipore because the plaintiffs were in possession of the disputed<br \/>\nproperty as tenants. In view of the pendency of the said Suit No. 531 in<br \/>\nthe ordinary original civil jurisdiction of the Calcutta High Court wherein<br \/>\nthe purchaser M\/s Kabari Private Limited was restrained from alienating and<br \/>\nencumbering the disputed property, the suit for eviction was also<br \/>\ntransferred to the High Court. Such suit is also pending in the High Court.\n<\/p>\n<p>It is quite apparent, in the facts of the case, that the amendment which<br \/>\nwas sought for by the plaintiffs was required to be incorporated otherwise<br \/>\nno effective relief could be given to the plaintiffs in the said suit No.<br \/>\n531 of 1981. For effective relief in the said suit, the transfer of the<br \/>\ndisputed property in favour of M\/s. Kabari Pvt. Ltd. is required to be set<br \/>\naside. Otherwise, no decree for specific performance of contract for<br \/>\nselling the said property in favour of the plaintiffs can be passed. In the<br \/>\naforesaid facts, the amendment of the plaint is essential for the<br \/>\nmaintainability of the suit. The contention that the suit was not required<br \/>\nto be dismissed but the same may proceed without the amendment is<br \/>\nmisconceived and without any substance.\n<\/p>\n<p>Even if it is accepted that the plaintiffs having engaged a reputed firm of<br \/>\nsolicitors had justification in proceeding with the view that the carriage<br \/>\nof proceedings required to be taken in the suit must have been taken<br \/>\nproperly by their solicitors, there was no occasion for the plaintiffs to<br \/>\ndepend on the solicitors when on August 8, 1991 the plaintiffs had<br \/>\nadmittedly been informed by the solicitors that the suit had been placed in<br \/>\nthe scrutiny list for not taking appropriate steps in effecting the<br \/>\namendment during the long span of ten years. It is an admitted position<br \/>\nthat the plaintiffs were not only fully aware of such gross laches and<br \/>\nnegligence but according to the plaintiffs, they being aware of such laches<br \/>\nand negligence expressed shock and anguish for the inaction on the part of<br \/>\ntheir solicitors. After August 8, 1981 the said suit appeared before the<br \/>\nSenior Master of the High Court on a number of occasion but even then<br \/>\napplication for extension of time for effecting amendment was not made by<br \/>\nthe plaintiffs immediately. It is only on October 10,1991, such an<br \/>\napplication was moved in Court but such application was rightly dismissed<br \/>\nby the Court on March 13, 1992. In our view, Mr. Nariman and Mr. Sanghi are<br \/>\nfully justified in contending that when the plaintiffs admittedly came to<br \/>\nknow that their solicitors miserably failed to take appropriate steps in<br \/>\nthe suit for which the suit was liable to be dismissed, even then they did<br \/>\nnot take diligent steps.\n<\/p>\n<p>The plaintiffs also did not change their solicitors even when the suit was<br \/>\ndismissed. On the contrary, they retained the solicitors for the purpose of<br \/>\npreferring the appeals, both against the order dismissing the application<br \/>\nfor extension of time and also against the order of dismissal of the suit<br \/>\nitself. The contention of the learned counsel for the appellants that the<br \/>\nbogey of laches and negligence on the part of the solicitors of the<br \/>\nplaintiffs by keeping the innocent plaintiffs in darkness and alleged<br \/>\ndiscovery of further materials only after the change of solicitors has been<br \/>\nraised designedly, does not appear to be ill founded. It did not appeal to<br \/>\nthe High Court that the plaintiffs became victim of the alleged laches and<br \/>\nnegligence on the part of the solicitors and they had been kept in darkness<br \/>\nabout such laches and negligence despite their best intention to be<br \/>\ndiligent and sincere in the carriage of proceedings of the said suit. On a<br \/>\nclear finding that the plaintiffs were guilty of gross negligence in the<br \/>\ncarriage of proceedings in the said suit, both the appeals preferred by the<br \/>\nplaintiffs appellants were dismissed by the Division Bench of the High<br \/>\nCourt. It is quite apparent and evident that in view of clear findings of<br \/>\nthe High Court about gross negligence and laches of the plaintiffs in<br \/>\ndismissing the said appeals. The plaintiffs, as a last resort, filed<br \/>\nspecial leave petitions before this Court and did not think of filing the<br \/>\nreview applications.\n<\/p>\n<p>Considering the facts of the case, we have no hesitation to hold that only<br \/>\nat a later stage, the plaintiffs filed the review applications before the<br \/>\nHigh Court on false and fabricated premises that after change of the<br \/>\nsolicitors, they could come to .know about some relevant facts which could<br \/>\nnot be placed before the High Court on earlier occasion and accordingly<br \/>\nreview applications had been filed. It appears to us that at no point of<br \/>\ntime, the plaintiffs intended to change the solicitors and the said<br \/>\nsolicitors were retained not only for the purpose of preferring the appeals<br \/>\nbut they continued to act as solicitors of the plaintiffs till appeals were<br \/>\ndismissed on contest. The contention of the appellants before us that the<br \/>\nplaintiffs designedly changed the solicitors to put forth false and<br \/>\nfabricated plea of discovery of some relevant materials only after change<br \/>\nof solicitors. In an attempt to make some ground for review applications,<br \/>\nis wholly justified. In our view, in any event, all relevant facts could be<br \/>\nknown to the plaintiffs if they had intended to know such facts seriously.<br \/>\nThere was also no impediment to change the solicitors earlier. In the facts<br \/>\nof the case, it appears to us that there was no genuine occasion for filing<br \/>\nthe review applications. Such review application based on false and<br \/>\nfabricated premises deserved to be dismissed in limine. The impugned order<br \/>\nallowing the review applications has occasioned a grave failure of justice.<br \/>\nWe, therefore, feel no hesitation in setting aside the impugned order on<br \/>\nmerits by allowing the appeals.\n<\/p>\n<p>In our view there is force in the contention of the learned counsel for the<br \/>\nappellants that the expression &#8220;from which an appeal is allowed&#8221; appearing<br \/>\nin Clause (a) of Order 47 Rule 1 of the Code of Civil Procedure, should be<br \/>\nconstrued liberally keeping in mind the underlying principle involved in<br \/>\nOrder 47 Rule 1 (a) that before making the review applications no superior<br \/>\ncourt has been moved for getting the self same relief, so that for the self<br \/>\nsame relief two parallel proceedings before two forum are not taken.\n<\/p>\n<p>As we have held that applications for review are liable to be dismissed<br \/>\neven on merits, the question of maintainability of the said applications<br \/>\nfor review before the High Court on account of filing the special petitions<br \/>\nassailing the review applications, need not be gone into by further<br \/>\nscrutiny as to whether application for leave to appeal under Article 136 of<br \/>\nthe Constitution stand on such a separate footing that it should not be<br \/>\ntreated to be an appeal as contemplated under Clause (a) of  order 47 Rule<br \/>\n1 of the Code of Civil Procedure even for the purpose of giving liberal<br \/>\nconstruction to the expression &#8220;appeal allowed&#8221;. Such question, therefore,<br \/>\nis kept open to be considered in an appropriate Case. In the result, we set<br \/>\naside the impugned order of the High Court allowing the review applications<br \/>\nby allowing these appeals with cost, assessed at Rs. 10,000 for each of<br \/>\nthese appeals.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Kabari Pvt. Ltd vs Shivnath Shroff And Ors on 1 December, 1995 Bench: G.N. Ray, Dr. A.S. Anand CASE NO.: Appeal (civil) 11517 of 1995 PETITIONER: KABARI PVT. LTD. RESPONDENT: SHIVNATH SHROFF AND ORS. DATE OF JUDGMENT: 01\/12\/1995 BENCH: G.N. RAY &amp; DR. A.S. ANAND JUDGMENT: JUDGEMENT 1995 SUPP. (6) SCR [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-15769","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Kabari Pvt. 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