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Supreme Court of India

GOVT. OF KERALA & ORS.versusSUDHIR KUMAR SHARMA & ORS.

Citation
2013 INSC 583
Decided
2 September 2013
Disposal
Appeal(s) allowed

Holding

A suit filed without compliance of Section 80(1) cannot be regularized merely by filing an application under Section 80(2); the court must first decide the Section 80(2) application before entertaining any Order VII Rule 11 applications.

Summary

The plaintiff filed a suit against the State of Kerala without serving the statutory notice required under Section 80(1) of the CPC and sought leave to proceed under Section 80(2). The State filed applications under Order VII Rule 11 seeking rejection of the plaint, while the plaintiff’s Section 80(2) application remained pending. The trial court rejected the Order VII applications without first deciding the Section 80(2) application, and the High Court affirmed this, presuming the Section 80(2) application was granted. On appeal, the Supreme Court held that a suit filed without notice cannot be regularized merely by filing a Section 80(2) application; the court must hear and decide that application before considering any objection under Order VII Rule 11. Consequently, the trial court’s rejection of the Order VII applications was set aside and the case was remanded for the Section 80(2) application to be decided first.

Issues considered

  • Whether a pending application under Section 80(2) CPC can be presumed granted for the purpose of rejecting a plaint under Order VII Rule 11 CPC.
  • Whether a suit filed without compliance of Section 80(1) can be regularized solely by filing an application under Section 80(2).
  • Whether the trial court should have decided the Section 80(2) application before entertaining the Order VII Rule 11 applications.

Legislation cited

Subjects

Section 80 CPCgovernment suitnotice requirementurgencyOrder VII Rule 11Civil Procedurepresumptionappeal

Judgment

                        . [2013] 10 S.C.R. o2


A                   GOVT. OF KERALA & ORS.
                                 v.
                 SUDHIR KUMAR SHARMA & ORS.
                  (Civil Appeal No. 7364 of 2013)
                        SEPTEMBER 02, 2013
B
             [ANIL R. DAVE AND DIPAK MISRA, JJ.]

         Code of Civil Procedure, 1908 - s. 80(2) and Or. VII r. 11
    - Suit against Government - With application uls. 80(2)
C   seeking leave of the court to file the suit without notice uls.
    80(1)- Defendant's application u/Or. VII r.11 seeking rejection
    of plaint - Rejection of application u/Or. VII r. 11 without
    disposing of the application uls. 80(2) - Whether correct -
    Held: Rejection of application u/Or. VII r. 11 without deciding
o   the application u/s. 80(2) was not correct - Till a final order is
    passed granting application uls. 80(2), the irregularity in filing
    the suit continues - By mere filing of application it cannot be
    presumed that the application, is granted.

          Respondent No.1 flied a suit against appellant-State
E   with application u/s. 80(2) CPC, seeking leave of the court
    to file the suit without serving notice u/s. 80(1) CPC. The
    appellant-State filed applications u/Or. VII, r.11 CPC
    praying for rejection of the plaint. Trial court dismissed
    the applications filed by the State. In Revision, High Court
F   confirmed the order of trial court, holding that it can be
    presumed that the application u/s. 80(2) was granted
    since the trial court entertained the application u/Or. VII,
    r.11, while the application u/s. 80(2) was pending. Hence
    the present appeal.
G
         Allowing the appeal, the Court
        HELD: 1. The trial court had wrongly rejected the
    applications filed by the appellants under Order VII Rule
H                                  62
   GOVT. OF KERALA & ORS. v. SUDHIR KUMAR                   63
               SHARMA & ORS.
11 CPC. The trial court ought to have heard and decided A
the application filed u/s. 80{2) CPC before hearing the
application under Order VII Rule 11 CPC. [Para 27] [71-G]
      2. A suit filed without compliance of Section 80(1)
cannot be regularized simply by filing an application u/s.         8
80(2) CPC. Upon filing an application u/s. 80(2) CPC, the
Court is supposed to consider the facts and look at the
circumstances in which the leave was sought for filing
the suit without issuance of notice u/s. 80(1) to the
concerned Government authorities. According to the                 C
provisions of Section 80(2) CPC, the court has to be
satisfied after hearing the parties that there was some
gra.ve urgency which required some urgent relief and
therefore, the plaintiff was constrained to file a suit without
issuance of notice u/s. 80(1) CPC. Till arguments are
ad•1anced on behalf of the plaintiff with regard to urgency        D
in lthe matter and till the trial court is satisfied with regard
to the urgency or requirement of immediate relief in the
suit, the court normally would not grant an application u/
s. 80(2) CPC. For the purpose of determining whether
such an application should be granted, the court is                E
supposed to give hearing to both the sides and consider
the! nature of the suit and urgency of the matter before
takoing a final decision. By mere filing of an application,
by no stretch of imagination it can be presumed that the
application is granted. If such a presumption is accepted,         F
it would mean that the court has not to take any action
in 1,0ursuance of such an application and if the court has
not: to take any action, then there is no need to file such
application. [Paras 24 and 26] [70-E-H; 71-D-F]
                                                                   G
     3. Till a final order is passed granting the application
u/s. 80(2), the irregularity in thin~ of.the suit continues and
it 1;annot be known whether the suit filed without
iss.uance of notice u/s. 80(1) CPC was justifiable. If
ultfmately the application is rejected, the plaint is to be        H
    64      SUPREME COURT REPORTS               [2013] 10 S.C.R.


A   returned and in that event the application filed on behalf
    of the appellants under Order VII Rule 11 CPC is to be
    granted. If the application filed u/s. 80(2) is ultimately
    granted, the objection with regard to non-issuance of
    notice u/s. 80(1) CPC cannot be raised and in that event
B   the suit would not fail on account of non-issuance of
    notice u/s. 80(1) CPC. (Paras 25 and 26] [71-A-D]

         State of A.P. and Ors. vs. Pioneer Builders (2006) 12
    SCC 119: 2006 (6) Suppl. SCR 571; Mis. Bajaj Hindustan
    Sugar and Industries Limited vs. Balrampur Chini Mills Ltd.
C   and Ors. 2007 (9) SCC 43: 2007 (4) SCR 132; lrappa
    Basappa Kudachi vs. State of Kamataka 1996 (2) KLJ 591
    - referred to.
                         Case Law Reference:
D        2006 (6) Suppl. SCR 571       referred to      Para14
         2007 (4) SCR 132              referred to      Para 15
         1996 (2) KLJ 591              referred to      Para 18
E       CIVIL APPELLATE JURISDICTION : Civil Appeal No.
    7364 of 2013.

        From the Judgment & Order dated 20.01.2005 of the High
    Court of Karnataka at Bangalore in Civil Revision Petition No.
F   5189 of 2001.

         V. Giri, M.T. George, Kavitha K.T. for the Appellants.

         A.S. Chandhok, ASG, Ritu Bhardwaj, Sunita Sharma,
    Kiran Suri, S.J. Amith, Nakibur Rahman Barbhuiya, Venkita
G   Subriimonium T.R, Rahat Bansal, Sushma Suri, A. Raghunath,
    E.M.S. Anam for the Respondents.

         The Judgment of the Court was delivered by

         ANIL R. DAVE, J. 1. Leave granted.
H
   GOVT. OF KERALA & ORS. v. SUDHIR KUMAR                     65
       SHARMA & ORS. [ANIL R. DAVE, J.]
     2. Being aggrieved by the judgment delivered in Civil          A
Revision Petition No. 5189 of 2001 dated 20th January, 2005
by the High Court of Karnataka, this appeal has been filed by
the Government of Kerala & other officials.

    3. The facts giving rise to the present litigation, in a        8
nutshell, are as under:

      Respondent No. 1 has filed a civil suit, being OS No.
11 ~!86 of 1998 in the Court of the Additional City Civil Judge
at Mayo Hall in Bangalore. According to respondent no.1, he
had been wrongfully detained by the State Authorities and           C
therefore, in the said suit he has prayed that he should be
awarded Rs.55,00,000/- as damages with interest thereon at
the· rate of 18%. As the suit has been filed against the State,
he was supposed to give a notice under Section 80 of the Civil
Procedure Code, 1908 ( hereinafter referred to as 'the CPC')        D
bu!: he had not given the statutory notice under Section 80 of
thei CPC in accordance with law. In fact, the notice was issued
by him on 24th October, 1998 whereas the suit had been filed
on 28th October, 1998. At the time of filing the suit, he had not
eVl3n received acknowledgment from the authority to whom he         E
had issued the notice. He had not even affixed requisite court
feei stamp to the plaint when the plaint was filed in the Court.
Respondent No. 1 being conscious of the defects in the suit
filed by him, had also filed two interlocutory applications along
with the plaint on the date on which the plaint had been filed.     F
An I.A. No. I was filed under the provisions of Section 80(2) of
thei CPC seeking leave of the court to file the suit without
serving a notice under Section 80(1) of the CPC and an I.A.
No. II was filed under Section 151 of the CPC praying for
extension of time for payment of the court fee.
                                                                    G
     4. On 29th October, 1998, the I.A. No. II had been granted
by the court, whereby respondent no. 1 was granted time up to
28th November, 1998 for paying the court fee stamp and the
same was paid by him on 28th November, 1998 and therefore,
                                                                    H
    66       SUPREME COURT REPORTS                   (2013] 10 S.C.R.


A   summons had been issued on 28th November, 1998.
    Thereafter, hearing had been adjourned from time to time.

         5. In the said suit, I.A. Nos. Ill & IV were filed on behalf of
    the present appellants under Order VII Rule 11 of the CPC
    praying for rejection of the plaint.
8
         6. The said applications filed by the appellants had been
    heard by the Trial Court and ultimately, by an order dated 3rd
    September, 2001, the said applications praying for rejection
    of the plaint had been rejected.
c
          7. Being aggrieved by the Order dated 3rd September,
    2001, whereby the applications praying for rejection of the plaint
    had been rejected, the appellants had filed Civil Revision
    Petition No. 5189 of 2001, which was also rejected by the High
0   Court by an order dated 20th January, 2005 and the said order
    has been challenged by the appellants in this appeal.

         · 8. The Trial Court had rejected the I.A. Nos. Ill & IV praying
    for rejection of the plaint for the reason that it did not find any
    justifiable reason for rejecting the plaint.
E
        9. So far as the High Court is concerned, it came to the
  conclusion that the Trial Court was right in rejecting the
  applications praying for rejection of the plaint as there was no
  justifiable reason for rejecting the plaint. The High Court also
F came to the conclusion that I.A. No. I filed by respondent No. 1
  seeking leave of the Court to permit the filing of the suit without
  serving notice under Section· 80(1) of the CPC had been
  presumed to have been granted and therefore, there was no
  reason for rejecting the plaint. The High Court also found that
G the deficit court fee stamp had also been paid within the
  extended period granted by the Trial Court. Thus, there was no
  justifiable objection to the plaint and therefore, according to the
  High Court the decision of the Trial Court was just and proper.

       10. The High Court noted that LA. No. I was pending before
H the Trial Court and yet applications praying for rejection of the
   GOVT. OF KERALA & ORS. v. SUDHIR KUMAR                        67
       SHARMA & ORS. [ANIL R. DAVE, J.]
plaint had been heard by the Trial Court. The High Court,              A
therefore, presumed that I.A. No. I, filed under Section 80(2) of
the CPC, was granted and therefore, the objection with regard
to non-compliance of Section 80(1) of the CPC was not
justifiable.
                                                                       B
      11. In the aforestated circumstances, what is to be
examined by this court is whether there can be any presumption
with regard to grant of the application filed under Section 80(2)
of the CPC, even if no order was passed on the said
application and whether the Trial Court was justified in
dismissing the applications of the appellants filed for rejection      C
of the plaint though the application filed by respondent No.1-
pla intiff under Section 80(2) of the CPC was not finally decided.

      12. The learned counsel appearing for the appellants had
submitted that as no order had been passed on the application          D
filed under Section 80(2) of the CPC, it had not been finally
disposed of and therefore, the High court was in error in
pre~suming that the said application had been granted.

      13. It had been also submitted that without deciding the
                                                                       E
application filed by respondent No.1 under Section 80(2) of the
CPC, the Trial Court as well as the High Court could not have
come to the conclusion that the plaint was not liable to be
rej13cted under Order Vil Rule 11 of the CPC. It had been further
sµibmitted that without deciding the application filed by
reS;pondent No.1, the Trial Court should not have even heard           F
the applications filed by the appellants for rejection of the plaint
under Order VII Rule 11 of the CPC. It had been thus submitted
that the High Court as well as the Trial Court had committed a
grave error by coming to the conclusion that the plaint could not
have been rejected under the provisions of Order VII Rule 11           G
of the CPC.

     14. So as to substantiate the aforestated submissions
made by the learned counsel appearing for the appellants, he
had relied upon the judgment delivered by this Court in the case       H
    68       SUPREME COURT REPORTS                [2013] 10 S.C.R.


A of State of A.P. & Ors. vs. Pioneer Builders [(2006) 12 SCC
  119]. He had drawn our attention to the observations made by
  this court on the requirement of giving statutory notice to the
  Government and the object of giving notice under Section 80(1)
  of the CPC. He had drawn our attention specifically to para 14
B of the aforestated judgment, which reads as under:

         "From a bare reading of sub-section (1) of Section 80, it
         is plain that subject to what is provided in sub-section (2)
         thereof, no suit can be filed against the Government or a
         public officer unless requisite notice under the said
c        provision has been served on such Government or public
         officer, as the case may be. It is well-settled that before
         the amendment of Section 80 the provisions of un-
         amended Section 80 admitted of no implications and
         exceptions whatsoever and are express, explicit and
D        mandatory. The Section imposes a statutory and
         unqualified obligation upon the Court and in the absence
         of compliance with Section 80, the suit is not maintainable.
         (See: Bhagchand Dagdusa Gujrathi & Ors. Vs. Secretary
         of State for India ; Sawai Singhai Nirmal Chand Vs. The
E        Union of India and Bihari Chowdhary & Anr. Vs. State of
         Bihar & Ors. ). The service of notice under Section 80 is,
         thus, a condition precedent for the institution of a suit
         against the Government or a public officer. The legislative
         intent of the Section is to give the Government sufficient
F        notice of the suit, which is proposed to be filed against it
         so that it may reconsider the decision and decide for itself
         whether the claim made could be accepted or not. As
         observed in Bihari Chowdhary (supra), the object of the
         Section is the advancement of justice and the securing of
G        public good by avoidance of unnecessary litigation."

       15. Thereafter, the learned counsel had relied upon the
  judgment delivered in the case of Mis. Bajaj Hindustan Sugar
  & Industries Limited vs. Ba/rampur Chini Mills Ltd. & Ors.
  [2007 (9)   sec43] which also lays down law to the effect that
H a suit may be filed against the Government or a public officer
   GOVT. OF KERALA & ORS. v. SUDHIR KUMAR                     69
       SHARMA & ORS. [ANIL R. DAVE, J.]
without serving notice as required by Section 80(1) of the CPC      A
only with the leave of the court .
                 .
     16. He had further submitted that as the suit was defective
on account of non- compliance of Section 80(1) of the CPC and
as leave had not been granted by the Trial Court to respondent      8
no. 1 plaintiff under Section 80(2) of the CPC, the plaint ought
to have been rejected by the Trial Court and alternatively he had
submitted that hearing of applications praying for rejection of
the plaint filed under the provisions of Order VII Rule 11 of the
CPC should have been postponed till the application filed under     C
Section 80(2) of respondent No. 1 was finally decided.

     17. On the other hand the learned counsel appearing for
respondent No.1- original plaintiff had made an effort to justify
the reasons given by the Trial Court as well as by the High Court
for rejecting the applications filed under Order VII Rule 11 of     D
the CPC.

       18. It had been submitted by the learned counsel appearing
for respondent No. 1 that the High Court was right in presuming
tha.t the application filed under Section 80(2) of the CPC had
                                                                    E
be1:ln entertained and granted. The learned counsel had relied
up!Jn the judgment delivered in the case of lrappa Basappa
Kudachi vs. State of Karnataka [1996 (2) Karnataka Law
Journal 591] wherein it has been held on the facts of the case
thc•t. even if no order is passed on an application filed under
                                                                    F
Section 80(2) of the CPC, it can be presumed that the said
application is granted.

      19. Relying upon the aforestated judgment of the
Kamataka High Court, it had been submitted by the learned
counsel for Respondent No.1 that though no order was passed         G
on the application made under Section 80(2) of the CPC, it was
rightly presumed that the Trial Court had granted the said
ap1:Jlication and therefore, there could not have been any
objection with regard to filing of the suit in violation of the
previsions of Section 80(1) of the CPC.                             H
    70       SUPREME COURT REPORTS                 [2013] 10 S.C.R.


A        20. It had been also submitted that had the application filed
    under Section 80(2) been rejected by the Trial Court, the plaint
    would have been returned to respondent No.1-plaintiff but as
    the plaint had not been returned, the presumption would be that
    the application under Section 80(2) had been granted.
B
        21. For the aforestated reasons, the learned counsel
    appearing for the respondents had submitted that the appeal
    should be dismissed by this court.

       22. We have heard the learned counsel at length and have
C also perused the judgments cited by them.

         23. Looking to the facts of the case and the provisions of
    law, we do not agree with the view expressed by the Trial Court
    as well as by the High Court.
D        24. It is an admitted fact that no order had been passed
    on the application filed under Section 80(2) of the CPC
    whereby leave of the court had been sought for filing the suit
    without complying with the provisions of $ection 80(1) of the
    CPC. In our opinion, a suit filed without compliance of Section
E   80(1} cannot be regularized simply by filing an application
    under Section 80(2) of the CPC. Upon filing an application
    under Section 80(2) of the CPC, the Court is supposed to
    consider the facts and look at the circumstances in which the
    leave was sought for filing the suit without issuance of notice
F   under Section 80(1) to the concerned Government authorities.
    For the purpose of determining whether such an application
    should be granted, the court is supposed to give hearing to both
    the sides and consider the nature of the suit and urgency of the
    matter before taking a final decision. By mere filing of an
G   application, by no stretch of imagination it can be presumed
    that the application is granted. If such a presumption is
    accepted, it would mean that the court has not to take any action
    in pursuance of such an application and if the court has not to
    take any action, then we failed to understand as to why such
H   an application should be filed.
   GOVT. OF KERALA & ORS. v. SUDHIR KUMAR                            71
       SHARMA & ORS. [ANIL R. DAVE, J.]
     25. It is an admitted fact that no order had been passed              A
on the application filed under Section 80(2) of the CPC. Till a
final order is passed granting the said application, in our
opinion, the irregularity in filing of the suit continues. If ultimately
the application is rejected, the plaint is to be returned and in
that~-~ent the application filed on behalf of the appellants under         B
Order VII Rule 11 is to be granted. If the application filed under
Section 80(2) is ultimately granted, the objection with regard
to non issuance of notice under Section 80(1) of the CPC
cannot be raised and in that event the suit would not fail on
account of non-issuance of notice under Section 80(1) of the               c
CPC.

       26. We reiterate that till the application filed under Section
80(2) of the CPC is finally heard and decided, it cannot be
known whether the suit filed without issuance of notice under
Section 80(1) of the CPC was justifiable. According to the                 D
provisions of Section 80(2) of the CPC, the court has to be
satisfied· after hearing the parties that there was some grave
urgency which required some urgent relief and therefore, the
plaintiff was constrained to file a suit without issuance of notice
under Section 80(1) of the CPC. Till arguments are advanced                E
on behalf of the plaintiff with regard to urgency in the matter and
till the trial court is satisfied with regard to the urgency or
requirement of immediate relief in the suit, the court normally
would not grant an application under Section 80(2) of the CPC.
We, therefore, come to the conclusion that mere filing of an               F
application under Section 80(2) of the CPC would not mean
that the said application was granted by the trial court.

     27. In the aforestated circumstances, we hold that the trial
court had wrongly rejected the applications filed by the                   G
appellants under Order VII Rule 11 of the CPC. The trial court
ought to have heard and decided the application filed under
Section 80(2) of the CPC before hearing the applications under
Order VII Rule 11 of the CPC.

     28. As a result of the above discussion, the appeal is                H
    72       SUPREME COURT REPORTS                 [2013] 10 S.C.R.


A allowed. The impugned judgment delivered by the High Court
  confirming the order of the Trial Court dated 30th September,
  2001 is quashed and set aside. The order of the Trial Court
  rejecting applications under Order VII Rule 11 is also quashed
  and set aside. It is directed that the trial court shall first of all
B decide the application filed by respondent no. 1 under Section
  80(2) of the CPC and only after final disposal of the said
  application, the applications filed by the appellants under Order
  VII Rule 11 of the CPC shall be decided.

         29. The appeal is allowed with no order as to costs.
c
    K.K.T.                                           Appeal allowed.


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