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Supreme Court of India

KHODAY DISTILLERIES LTD. (NOW KNOWN AS KHODAY INDIA LIMITED) AND OTHERSversusSRI MAHADESHWARA SAHAKARA SAKKARE KARKHANE LTD., KOLLEGAL (UNDER LIQUIDATION) REPRESENTED BY THE LIQUIDATOR

Citation
2019 INSC 298
Decided
1 March 2019
Disposal
Disposed off

Holding

A non‑speaking dismissal of a special leave petition does not invoke the doctrine of merger, so a review petition filed thereafter is maintainable; the law laid down in *Kunhayammed* is the correct authority.

Summary

The case involved two civil appeals (Nos. 2432 and 2433) arising from special leave petitions (SLPs) filed by Khoday Distilleries Ltd. after a High Court decree in a money suit. Both SLPs were dismissed by the Supreme Court in limine without reasons. The appellants then sought review of the High Court's judgment, raising the question of whether a review petition is maintainable after a non‑speaking dismissal of an SLP. The Court examined conflicting precedents – *Abbai Maligai Partnership Firm* and *Kunhayammed* – on the doctrine of merger and res judicata. It held that there is no conflict; *Kunhayammed* provides the correct law, and a non‑speaking dismissal of an SLP does not attract merger. Consequently, the review petitions are maintainable, the earlier High Court order is set aside, and the matters are remanded for merits. The second appeal similarly allows the High Court to entertain the review petition and refers the appeal to the regular board.

Issues considered

  • Whether a review petition before a High Court is maintainable after a Supreme Court order dismissing a special leave petition in limine (non‑speaking order).
  • Whether the decisions in *Abbai Maligai Partnership Firm* and *Kunhayammed* are in conflict regarding the doctrine of merger and res judicata.
  • Effect of speaking versus non‑speaking SLP dismissal on the applicability of the doctrine of merger.
  • Scope of Article 136 jurisdiction and its separation from appellate jurisdiction.

Legislation cited

Subjects

special leave petitionreview petitiondoctrine of mergerres judicataArticle 136Article 141Civil ProcedureSupreme Court jurisdictionmaintainability

Judgment

                      [2019] 3 S.C.R. 411                            411


             KHODAY DISTILLERIES LTD.                                A
      (NOW KNOWN AS KHODAY INDIA LIMITED)
                      AND OTHERS
                             v.
      SRI MAHADESHWARA SAHAKARA SAKKARE
   KARKHANE LTD., KOLLEGAL (UNDER LIQUIDATION)                       B
          REPRESENTED BY THE LIQUIDATOR
              (Civil Appeal No. 2432 of 2019)
                        MARCH 01, 2019
  [A. K. SIKRI, S. ABDUL NAZEER AND M. R. SHAH, JJ.]
                                                                     C
      Review:
      Review of judgment against which Special Leave Petition was
already dismissed by Supreme Court – Maintainability of – In
view of conflicting views on the question in *Abbai Maligai
Partnership Firm case and in **Kunhayammed case, Division            D
Bench of Supreme Court referred the matter to larger Bench – Held:
There is no conflict of opinion in the two cases – *Abbai Maligai
Partnership Firm case was decided on its peculiar facts –
**Kunhayammed case lays down the correct law – Since the SLPs
were dismissed in limine without giving any reasons, the review
petitions filed in the present cases were maintainable –             E
Constitution of India – Art. 136.
      Disposing of the appeals, the Court
      HELD: 1. *Abbai Maligai Partnership Firm case is duly
taken cognisance of and explained in the judgment in                 F
**Kunhayammed case. There is no conflict insofar as ratio of the
two cases is concerned. Moreover, *Abbai Maligai Partnership
Firm case was decided on its peculiar facts, with no discussion
on any principle of law, whereas **Kunhayammed case is an
elaborate discourse based on well accepted propositions of law
which are applicable for such an issue. The detailed judgment in     G
**Kunhayammed case lays down the correct law and there is no
need to refer the cases to larger Bench. [Para 25] [432-D-E]
     2. The conclusions rendered in **Kunhayammed case and
summed up in paragraph 44 are affirmed and reiterated as
under:                                                               H
                            411
412           SUPREME COURT REPORTS                       [2019] 3 S.C.R.


A           “(iv) An order refusing special leave to appeal may be a
            non-speaking order or a speaking one. In either case it
            does not attract the doctrine of merger. An order refusing
            special leave to appeal does not stand substituted in place
            of the order under challenge. All that it means is that the
            Court was not inclined to exercise its discretion so as to
B
            allow the appeal being filed.
            (v) If the order refusing leave to appeal is a speaking order,
            i.e., gives reasons for refusing the grant of leave, then the
            order has two implications. Firstly, the statement of law
            contained in the order is a declaration of law by the Supreme
C           Court within the meaning of Article 141 of the Constitution.
            Secondly, other than the declaration of law, whatever is
            stated in the order are the findings recorded by the Supreme
            Court which would bind the parties thereto and also the
            court, tribunal or authority in any proceedings subsequent
D           thereto by way of judicial discipline, the Supreme Court
            being the Apex Court of the country. But, this does not
            amount to saying that the order of the court, tribunal or
            authority below has stood merged in the order of the
            Supreme Court rejecting the special leave petition or that
            the order of the Supreme Court is the only order binding
E           as res judicata in subsequent proceedings between the
            parties.
            (vi) Once leave to appeal has been granted and appellate
            jurisdiction of Supreme Court has been invoked the
            order passed in appeal would attract the doctrine of merger;
F           the order may be of reversal, modification or merely
            affirmation.
            (vii) On an appeal having been preferred or a petition
            seeking leave to appeal having been converted into an
            appeal before the Supreme Court the jurisdiction of High
G           Court to entertain a review petition is lost thereafter as
            provided by sub-rule (1) of Rule 1 of Order 47 CPC.”
            [Para 27] [433-D-H; 434-A-C]
             3. Once it is held that law laid down in **Kunhayammed
      case is to be followed, it will not make any difference whether the
H
   KHODAY DISTILLERIES LTD. v. SRI MAHADESHWARA                         413
       SAHAKARA SAKKARE KARKHANE LTD.

review petition was filed before the filing of special leave petition   A
or was filed after the dismissal of special leave petition. Such a
situation is covered in para 37 of **Kunhayammed case.
[Para 27] [434-D-E]
      4. Since Civil Appeal No. 2432 of 2019 was dismissed in
limine without giving any reasons, the review petition filed by         B
the appellant in the High Court would be maintainable and should
have been decided on merits. Order dated November 12, 2008
passed by the High Court is accordingly set aside and matter is
remanded back to the High Court for deciding the review petition
on merits. [Para 28] [434-F]
                                                                        C
       5. Civil Appeal No. 2433 of 2019 was also, dismissed in
limine and without any speaking order. After the dismissal of the
special leave petition, the respondent in this appeal had
approached the High Court with review petition. Said review
petition is allowed by passing order dated December 12, 2012 on
the ground of suppression of material facts by the appellant herein     D
and commission of fraud on the Court. Such a review petition
was maintainable. Therefore, the High Court was empowered to
entertain the same on merits. Insofar as appeal of the appellant
challenging the order dated December 12, 2012 on merits is
concerned, the matter shall be placed before the regular Board          E
to decide the same. [Para 28] [435-A-C]
      **Kunhayammed and Others v. State of Kerala and
      Another (2000) 6 SCC 359 : [2000] 1 Suppl. SCR 538;
      Palani Roman Catholic Mission v. S. Bagirathi Ammal
      (2009) 16 SCC 657; Bhakra Beas Management Board                   F
      v. Krishna Kumar Vij and Another (2010) 8 SCC 701 :
      [2010] 10 SCR 462 ; Medical Council of India v. State
      of Kerala and Others 2018 (11) SCALE 141
      – relied on.
      *Abbai Maligai Partnership Firm and Another v.                    G
      K. Santhakumaran and Others (1998) 7 SCC 386 :
      [1998] 1 Suppl. SCR 535 – distinguished.
      Thungabhadra Industries Ltd. v. Govt. of A.P. AIR 1964
      SC 1372 : [1964] SCR 174 ; Meghmala and Others v.
      G. Narasimha Reddy and Others (2010) 8 SCC 383 :
                                                                        H
414          SUPREME COURT REPORTS                        [2019] 3 S.C.R.


A          [2010] 10 SCR 47; Gangadhara Palo v. Revenue
           Divisional Officer and Another (2011) 4 SCC 602 :
           [2011] 3 SCR 74 ; Workmen v. Board of Trustees of the
           Cochin Port Trust (1978) 3 SCC 119 : [1978] 3 SCR
           971 ; Western India Match Co. Ltd. v. Industrial Tribunal
           AIR 1958 Mad 398 ; Indian Oil Corpn. Ltd. v. State of
B
           Bihar (1986) 4 SCC 146 : [1986] 3 SCR 553; Rup
           Diamonds v. Union of India (1989) 2 SCC 356: [1989]
           1 SCR 13 ; Supreme Court Employees’ Welfare Assn. v.
           Union of India (1989) 4 SCC 187 : [1989] 3 SCR 488;
           Yogendra Narayan Chowdhury v. Union of India (1996)
C          7 SCC 1 : [1995] 6 Suppl. SCR 17 ; V.M. Salgaocar &
           Bros. (P) Ltd. v. CIT (2000) 5 SCC 373 : [2000] 2 SCR
           1169 ; Sree Narayana Dharmasanghom Trust v.
           SwamiPrakasananda (1997) 6 SCC 78 : [1997] 3 SCR
           799 ; State of Maharashtra v. Prabhakar Bhikaji Ingle
           (1996) 3 SCC 463 : [1996] 3 SCR 211 ; Penu
D
           Balakrishna Iyer v. Ariya M. Ramaswami Iyer AIR 1965
           SC 195: [1964] 7 SCR 49 ; Abbai Maligai Partnership
           Firm v. K. Santhakumaran (1998) 7 SCC 386 :
           [1998] 1 Suppl. SCR 535 ; Shankar Ramchandra
           Abhyankar v. Krishnaji Dattatreya Bapat (1969) 2 SCC
E          74 : [1970] 1 SCR 322 ; Sushil Kumar Sen v. State of
           Bihar (1975) 1 SCC 774 : [1975] 3 SCR 942 ;
           Gopabandhu Biswal v. Krishna Chandra Mohanty
           (1998) 4 SCC 447: [1998] 2 SCR 1108 ; Junior Telecom
           Officers Forum v. Union of India (1993) 4 Suppl. SCC
           693: [1992] 1 Suppl. SCR 764 – referred to.
F
           Wilson v. Colchester Justices (1985) 2 All ER 97 (HL)
           – referred to.
                            Case Law Reference
      [1998] 1 Suppl. SCR 535        distinguished          Para 11
G
      [2000] 1 Suppl. SCR 538        relied on              Para 11
      [2010] 10 SCR 47               referred to            Para 12
      [2011] 3 SCR 74                referred to            Para 12

H
   KHODAY DISTILLERIES LTD. v. SRI MAHADESHWARA                         415
       SAHAKARA SAKKARE KARKHANE LTD.

(2009) 16 SCC 657               relied on              Para 13          A
[2010] 10 SCR 462                relied on             Para 13
2018 (11) SCALE 141              relied on             Para 15
[1978] 3 SCR 971                 referred to           Para 21
AIR 1958 Mad 398                 referred to           Para 21          B
[1986] 3 SCR 553                 referred to           Para 21
[1989] 1 SCR 13                  referred to           Para 21
[1989] 3 SCR 488                 referred to           Para 21
                                                                        C
[1995] 6 Suppl. SCR 17           referred to           Para 21
[2000] 2 SCR 1169                referred to           Para 21
[1997] 3 SCR 799                 referred to           Para 21
[1996] 3 SCR 211                 referred to           Para 21
                                                                        D
[1964] 7 SCR 49                  referred to           Para 21
[1998] 1 Suppl. SCR 535          referred to           Para 21
[1970] 1 SCR 322                 referred to           Para 21
[1975] 3 SCR 942                 referred to           Para 21
                                                                        E
[1998] 2 SCR 1108                 referred to          Para 21
[1992] 1 Suppl. SCR 764           referred to          Para 21
[1989] 3 SCR 488                  referred to          Para 21

                                                                        F
      CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2432
of 2019
     From the Judgment and Order dated 09.09.2011 of the High Court
of Karnataka at Bangalore in Review Petition No. 96 of 2011
                                                                        G
                               WITH
       Civil Appeal No. 2433 of 2019.
      Jaideep Gupta, Ravindra Raizada, Sr. Advs., Senthil Jagadeesan,
Ms. Sonakshi Malhan, Ms. Suriti Chowdhary, Ms. Mrinal Kanwar, Partha
                                                                        H
416             SUPREME COURT REPORTS                            [2019] 3 S.C.R.


A     Sil, Anirban Sen, Saurav Gupta, Tavish B. Prasad, Gaurav Jain,
      Ms. Abha Jain, Ranbir Singh Yadav, Puran Mal Saini, Ms. Anzu K. Varkey,
      Rajeev Kumar Dubey, Kamlendra Mishra, Bhakti Vardhan Singh, Anmol
      Tayal, S. Vinay Ratnakar, Ashok Panigrahi, Shanthkumar V. Mahale,
      Abdul Rahiman, Rajesh Mahale, Amith J., Ranbir Yadav, Advs. for the
      appearing parties.
B
            The Judgment of the Court was delivered by
            A. K. SIKRI, J. 1. Leave granted.
             2. Question of law in both these appeals is identical. However,
      facts of the Civil appeal arising out of Special Leave Petition (Civil) No.
C     490 of 2012 are noted for discussion, as in this case, order dated October
      19, 2012 has been passed referring the question of law to a larger
      Bench.
            3. Before we advert to the question of law, we deem it appropriate
      to take stock of seminal facts as the said factual background would
D     make it easier to understand the implication of the issue that arises for
      determination.
             4. Respondent No.1 herein had filed original suit against the
      appellant on the file of the XXXI Additional City Civil Judge, Bangalore
      City. It was a money suit for recovery of Rs.1,00,76,630/- along with
E     interest. The City Civil Judge, after trial, dismissed the suit as barred by
      limitation vide his judgment and decree dated November 11, 2005, even
      after finding on merits that money was payable by the appellant to
      respondent No.1. Against this, respondent No.1 preferred first appeal
      under Section 96 of the Code of Civil Procedure, 1908. This appeal was
F     allowed by the High Court of Karnataka on November 12, 2008 by
      holding that the suit was filed within the period of limitation. Accordingly,
      it passed decree of the amount claimed along with interest @ 12% per
      annum from the date of demand, i.e. July 19, 1994, up to August 03,
      1994 and the interest was granted @ 10% per annum from August 04,
      1994 till the date of payment. Against this judgment of the High Court,
G     the appellant preferred the special leave petition. This special leave
      petition was dismissed by this Court on December 04, 2009 with the
      following order:
            “Delay condoned.
            Special Leave Petition is dismissed.”
H
   KHODAY DISTILLERIES LTD. v. SRI MAHADESHWARA                                 417
  SAHAKARA SAKKARE KARKHANE LTD. [A. K. SIKRI, J.]

       After the dismissal of the special leave petition, respondent No.1       A
filed execution petition before the trial court.
       5. It may be mentioned at this stage that after the High Court had
decreed the suit of respondent No.1, the respondent filed application for
rectification of the judgment, which was allowed on October 20, 2010
directing the appellant to pay the decretal amount with interest and costs.     B
This is the subject matter of the execution proceedings.
        6. The appellant herein, even after dismissal of the special leave
petition, went back to the High Court in the form of review petition
seeking review of the judgment dated November 12, 2008 passed by the
High Court. It was filed on the premise that the High Court had granted         C
relief which was not even sought for by respondent No.1 in the suit. We
may reproduce the precise ground taken in this behalf in the review
petition:
      “11. The above Review Petition is directed only with regard to
      the decree portion dated 12.11.2008 passed by this Hon’ble Court          D
      in RFA No. 427/2006 as corrected by the order dated 20.10.2010.
      It reads:
      “We direct the plaintiff to recover the amount as claimed at
      Rs.1,00,76,630/- with interest at the rate of 12% from the date of
      demand made namely 29.07.1994 till 03.08.1994 and at the rate             E
      of 10% from 04.08.1994 till the date of payment on the said sum
      with costs.”
      A perusal of the prayer made in the suit O.S. No. 2808/1997 as
      extracted in para 2 above shows that the plaintiff has not claimed
      interest at any particular rate and he has also not prayed the interest   F
      from any particular date. He has also not claimed interest at
      different rates also. Thus the decree passed by this Hon’ble Court
      in RFA No. 427/2006 is not based on the prayer sought for by the
      plaintiff in O.S. No. 2808/1997. This mistake appears on the face
      of the record. Hence the impugned judgment and decree in RFA
      No. 427/2006 dated 12.11.2008 as corrected on 20.10.2010 is liable        G
      to be reviewed and modify the said judgment and decree in terms
      of the prayer made by the plaintiff in O.S. No. 2808/1997.”
      On that basis, it was pleaded that the award of interest from August
04, 1994 is also without jurisdiction since it was not claimed by respondent
No.1 in the trial court.                                                        H
418            SUPREME COURT REPORTS                           [2019] 3 S.C.R.


A           7. This review petition has been dismissed by the High Court vide
      orders dated September 09, 2011, inter alia, with the following
      observations:
            “The judgment and decree passed by this Court in the above appeal
            was questioned by the petitioners before the Hon’ble Supreme
B           Court in Special Leave Petition to Appeal (Civil) CC No. 18374/
            2009 and the petition came to be dismissed on 4.12.2009.
            According to us, when the judgment and decree passed by this
            Court has been confirmed by the Hon’ble Supreme Court, question
            of entertaining any review by us does not arise for consideration.
C           Accordingly, review petition is dismissed.”
             8. As can be seen from the above order, the reason for dismissal
      of the review petition is that the Apex Court has already dismissed the
      special leave petition against the High Court’s judgment dated November
      12, 2008. Therefore, review of the said judgment by the High Court is
D     not permissible. It is this order in review petition which is challenged in
      these proceedings inasmuch as case of the appellant is that when the
      special leave petition was dismissed in limine and not by speaking order,
      there was no reason not to entertain the review petition by the High
      Court, as dismissal of the special leave petition in limine by non-speaking
E     order does not amount to merger of the High Court judgment with that
      of the Supreme Court.
            9. The question of law which needs to be determined in the
      aforesaid circumstances is as to whether review petition is maintainable
      before the High Court seeking review of a judgment against which the
F     special leave petition has already been dismissed by this Court.
            10. The reason for referring the matter to a larger Bench is the
      conflicting views by different Benches of this Court which have been
      taken note of in the referral order. Those judgments will be discussed at
      the appropriate stage. At the same time, we would like to reproduce the
      following passages from the reference order:
G
            “12. We may also point out in this connection that Article 136 of
            the Constitution does not confer any right of appeal on any party
            but it confers a discretionary power on the Supreme Court to
            interfere in suitable cases. Clause (1) of Article 136 of the
            Constitution confers very wide and extensive powers on the
H
      KHODAY DISTILLERIES LTD. v. SRI MAHADESHWARA                                 419
     SAHAKARA SAKKARE KARKHANE LTD. [A. K. SIKRI, J.]

          Supreme Court. The article commences with a non obstante clause,         A
          the words are of overriding effect and clearly indicate the intention
          of the Framers of the Constitution that it is a special jurisdiction
          and residuary power unfettered by any statute or other provisions
          of Chapter IV of Part V of the Constitution. The jurisdiction under
          Article 136 of the Constitution, of course, cannot be barred by
                                                                                   B
          statute since it is extraordinary power under Article 136. Article
          136 is an extraordinary power which cannot be taken away by
          legislation.
          13. We also notice that several statutes confer on aggrieved parties
          right of appeal to the Supreme Court in contradistinction with the
          powers conferred on the Supreme Court under Article 136 of the           C
          Constitution, for instance, Section 15-Z of the Securities and
          Exchange Board of India (SEBI) Act, 1992 confers a right of
          appeal to any person aggrieved by any decision or order of the
          Securities Appellate Tribunal. So also various regulatory legislations
          provide for statutory right of appeal. To what extent the principle      D
          of res judicata and merger would apply in respect of a decision
          rendered by this Court while exercising its statutory power of
          appeal as well as the one rendered while entertaining an appeal
          invoking Article 136 is not seen considered by the larger Bench
          either in Abbai Maligai or Kunhayammed case, which is also,
          in our view, an issue to be considered by the larger Bench.              E

          14. We notice that considerable arguments are being raised before
          this Court as well as before various High Courts in the country on
          the maintainability of review petitions after the disposal of the
          special leave petition without granting leave but with or without
          assigning reasons on which also conflicting views are being              F
          expressed by the two-Judge Benches of this Court. In order to
          resolve those conflicts and for proper guidance to the High Courts,
          we feel it would be appropriate that this matter be referred to a
          larger Bench for an authoritative pronouncement.”
       11. There are two judgments of this court, both of which are three          G
Judge Bench decisions. First in line is Abbai Maligai Partnership Firm
and Another v. K. Santhakumaran and Others1. This judgment is
relied upon by respondent No.1 with the plea that in that judgment this
Court held that when the judgment and decree passed by the High Court
1
    (1998) 7 SCC 386                                                               H
420             SUPREME COURT REPORTS                            [2019] 3 S.C.R.


A     is affirmed by the Supreme Court with the dismissal of the special leave
      petition, there is no question of entertaining the review petition by the
      High Court, thereafter. Other judgment is in the case of Kunhayammed
      and Others v. State of Kerala and Another2. In this judgment the
      Court laid down various ways in which special leave petitions can be
      disposed of and decided in which cases review would be permissible
B
      and where such a review is not entertainable, on the doctrine of merger
      and res judicata, etc. We may point out at this stage itself that various
      judgments which have been pronounced by this Court (which are the
      judgments rendered by two Judges’ Bench) have taken different paths,
      on the interpretation of the aforesaid two cases, resulting in conflicting
C     outcomes.
             12. In Meghmala and Others v. G. Narasimha Reddy and
      Others3 and K. Rajamouli v. A.V.K.N. Swamy, the view taken by this
      Court was that review petition is not maintainable. In Meghmala the
      Court, however, made one exception by holding that in case a litigant
D     files a review petition before filing the special leave petition in the
      Supreme Court and it remains pending till the special leave petition is
      dismissed, the review petition still deserves to be considered. However,
      the review petition filed after the dismissal of the special leave petition
      would amount to abuse of the process of the Court. On the other hand,
      in Gangadhara Palo v. Revenue Divisional Officer Officer and
E     Another4, this Court held that it will make no difference whether the
      review petition was filed in the High Court before the dismissal of the
      special leave petition or after the dismissal thereof. In either case, the
      doctrine of merger would apply, even when the special leave petition is
      dismissed in limine, which will bar the filing of the review petition before
F     the High Court when the special leave petition is dismissed.
              13. As against the aforesaid view, there is another line of cases
      holding that review petition is maintainable if no leave has been granted
      to file an appeal and there is dismissal of the special leave petition at the
      preliminary stage itself. These cases have taken a view that a preliminary
G     stage does not constitute a binding precedent and, therefore, doctrine of
      merger would not apply. These cases are Palani Roman Catholic

      2
        (2000) 6 SCC 359
      3
        (2010) 8 SCC 383
      4
        (2011) 4 SC 602
H
     KHODAY DISTILLERIES LTD. v. SRI MAHADESHWARA                             421
    SAHAKARA SAKKARE KARKHANE LTD. [A. K. SIKRI, J.]

Mission v. S. Bagirathi Ammal5, Bhakra Beas Management Board                  A
v. Krishna Kumar Vij and Another6.
      14. After taking note of the aforesaid judgments, the reference
order in the instant case makes a remark about the nature of conflict
between them, which is noted in paragraph 11 of the judgment and is
reproduced below:                                                             B
       “11. We notice that in K. Rajamouli this Court has followed
       Kunhayammed and distinguished Abbai Maligai Partnership
       Firm and in Gangadhara Palo the later Bench did not accept
       the view expressed in K. Rajamouli. To this extent, there is some
       conflict between the judgments in Gangadhara Palo and K.               C
       Rajamouli which calls for resolution by a larger Bench.”
       15. It may be useful to add, in the line of the aforesaid cases, a
recent judgment of this Court in Medical Council of India v. State of
Kerala and Others7, which is again a two Judge Bench. Though in this
case situation was not where review petition was filed after the dismissal    D
of the special leave petition, at the same time, dismissal of the special
leave petition in limine was explained to mean that it was still a decision
on merits by this Court.
      16. Having stated the manner in which the issue is dealt with in
various judgments noted above, it would be apposite to first discuss the      E
law laid down in Abbai Maligai Partnership Firm as well as
Kunhayammed’s cases since both the judgments are rendered by three
Judges’ Bench. Therefore, it is to be seen, in the first instance, as to
whether they project conflicting views.
        17. Abbai Maligai Partnership Firm was a case under the Rent          F
Control Act and the appeal came from the High Court of Madras. In an
eviction petition filed by respondent Nos. 1 and 2 in the said case, the
Rent Controller had ordered eviction of the appellants therein on the
ground of wilful default in payment of rent as well as on the ground of
bona fide requirement of the premises by respondent Nos. 1 and 2 for
their own business. In appeal, the order of the Rent Controller was set       G
aside as it was found that there was a bona fide dispute with regard to
the title of the property which could be decided by the Civil Court. The
5
  (2009) 16 SCC 657
6
  (2010) 8 SCC 701
7
  2018 (11) Scale 141                                                         H
422            SUPREME COURT REPORTS                            [2019] 3 S.C.R.


A     respondents preferred review petitions thereagainst, which were
      dismissed. They approached this Court by way of special leave petitions
      which were also dismissed. After the dismissal of these special leave
      petitions, the respondents therein filed review petition in the High Court
      with a delay of 221 days. The High Court condoned the delay and also
      entertained the review petition on merits and not only allowed those
B
      review petitions but even reversed the orders made earlier in the civil
      revision petitions by allowing those petitions and ordering eviction of the
      appellants/ tenants. In appeal against this order passed in review and
      revision petitions, this Court held that the jurisdiction exercised by the
      High Court, under the circumstances, was palpably erroneous. Entire
C     discussion in this behalf is contained in one paragraph, which we reproduce
      below:
            “4. The manner in which the learned Single Judge of the High
            Court exercised the review jurisdiction, after the special leave
            petitions against the selfsame order had been dismissed by this
D           Court after hearing learned counsel for the parties, to say the
            least, was not proper. Interference by the learned Single Judge at
            that stage is subversive of judicial discipline. The High Court was
            aware that the SLPs against the orders dated 7-1-1987 had already
            been dismissed by this Court. The High Court, therefore, had no
            power or jurisdiction to review the selfsame order, which was the
E           subject-matter of challenge in the SLPs in this Court after the
            challenge had failed. By passing the impugned order on 7-4-1994,
            judicial propriety has been sacrificed. After the dismissal of the
            special leave petitions by this Court, on contest, no review petitions
            could be entertained by the High Court against the same order.
F           The very entertainment of the review petitions, in the facts and
            circumstances of the case, was an affront to the order of this
            Court. We express our strong disapproval and hope there would
            be no occasion in the future when we may have to say so. The
            jurisdiction exercised by the High Court, under the circumstances,
            was palpably erroneous. The respondents who approached the
G           High Court after the dismissal of their SLPs by this Court, abused
            the process of the court and indulged in vexatious litigation. We
            strongly deprecate the matter in which the review petitions were
            filed and heard in the High Court after the dismissal of the SLPs
            by this Court. The appeals deserve to succeed on that short ground.
H           The appeals are, consequently, allowed and the impugned order
   KHODAY DISTILLERIES LTD. v. SRI MAHADESHWARA                                  423
  SAHAKARA SAKKARE KARKHANE LTD. [A. K. SIKRI, J.]

       dated 7-4-1994 passed in the review petitions is hereby set aside.        A
       The respondents shall pay Rs 10,000 as costs.”
       18. In Kunhayammed’s case, on the other hand, the Forest Tribunal
had held that land in dispute did not vest in the Government under the
provisions of the Kerala Private Forests (Vesting and Assignment) Act,
1971. Against this order the appeal of the State of Kerala was dismissed         B
by the High Court on December 17, 1982. Thereagainst special leave
petition was filed by the State, which was dismissed in limine stating -
‘Special Leave Petition is dismissed on merits’. Thereafter, the Estate
filed an application in the High Court for review of its earlier order
whereby appeal of the State had been dismissed upholding the order of
the Forest Tribunal. It may be noted that during the pendency of this            C
review petition, Section 8(c) was inserted in the Kerala Private Forests
(Vesting and Assignment) Act, 1971 by amendment made in the year
1986 enabling the Government to file appeal or review in certain cases.
This provision was introduced with retrospective effect, i.e. from
November 19, 1983. Review petition was filed in January 1984. On                 D
these facts, the High Court passed orders dated December 14, 1995
overruling the objection to the maintainability of the review petition holding
that review was maintainable and posted the case for hearing on merits.
This order was challenged which became the subject matter of the appeal
in the aforesaid cases. The contention of the petitioner before this Court
was two fold: (a) the High Court’s order dated December 17, 1982 was             E
merged with order dated July 18, 1983 whereby the special leave petition
was dismissed and, therefore, no review petition was maintainable; and
(b) order of this Court in the special leave petition amounted to affirmation
of the High Court’s order and, therefore, could not be reviewed by the
High Court. This Court rejected the contention of the petitioner holding         F
that review was maintainable as the doctrine of merger was not applicable
in the aforesaid circumstances. However, what is important is that the
Court deliberated on the doctrine of merger and handed out well reasoned
and lucid judgment explaining the situations where review would be
maintainable as well as the situations where it would not be maintainable
on the aforesaid doctrine.                                                       G

      19. Explaining the doctrine of merger, the Court held that logic
behind this doctrine is that there cannot be more than one decree or
operative orders governing the same subject matter at a given point of
time. When a decree or order passed by an inferior Court, Tribunal or
                                                                                 H
424             SUPREME COURT REPORTS                            [2019] 3 S.C.R.


A     Authority is subjected to a remedy available under law before a superior
      forum, then, though the decree or order under challenge continues to be
      effective and binding, nevertheless, this finality is to put in jeopardy.
      Once the superior court disposes of the dispute before it in any manner,
      i.e. either by affirming the decree or order or by settings aside or by
      modifying the same, it is the decree of the superior Court, Tribunal or
B
      Authority which is the final binding and operative decree and the decree
      or order of the lower Court, Tribunal or authority gets merged into the
      order passed by the superior forum. The Court also clarified that this
      doctrine is not of universal or unlimited application. The nature of
      jurisdiction exercised by the superior forum and the content or subject
C     matter of challenge laid or which could have been laid will have to be
      kept in view. The Court thereafter discussed the provision pertaining to
      the appellate jurisdiction that is exercised by the Supreme Court conferred
      upon it by Articles 132 to 136 of the Constitution of India. Insofar as
      jurisdiction under Article 136 is concerned, it explained that Article 136
      opens with a non-obstante clause and conveys a message that even in
D
      the field covered by the preceding articles, jurisdiction conferred by Article
      136 is available to be exercised in an appropriate case. It is an
      untrammelled reservoir of power incapable of being confined to
      definitional bounds; the discretion conferred on the Supreme Court being
      subjected to only one limitation, that is, the wisdom and good sense or
E     sense of justice of the Judges. No right of appeal is conferred upon any
      party; only a discretion is vested in the Supreme Court to interfere by
      granting leave to an applicant to enter in its appellate jurisdiction not
      open otherwise and as of right.
            20. Exercise of jurisdiction under Article 136 and the manner in
F     which it is dealt with is clarified as under:
             “14. The exercise of jurisdiction conferred on this Court by Article
             136 of the Constitution consists of two steps: (i) granting special
             leave to appeal; and (ii) hearing the appeal. This distinction is
             clearly demonstrated by the provisions of Order 16 of the Supreme
G            Court Rules framed in exercise of the power conferred by Article
             145 of the Constitution. Under Rule 4, the petition seeking special
             leave to appeal filed before the Supreme Court under Article 136
             of the Constitution shall be in Form No. 28. No separate application
             for interim relief need be filed, which can be incorporated in the

H
 KHODAY DISTILLERIES LTD. v. SRI MAHADESHWARA                                 425
SAHAKARA SAKKARE KARKHANE LTD. [A. K. SIKRI, J.]

   petition itself. If notice is ordered on the special leave petition, the   A
   petitioner should take steps to serve the notice on the respondent.
   The petition shall be accompanied by a certified copy of the
   judgment or order appealed from and an affidavit in support of
   the statement of facts contained in the petition. Under Rule 10
   the petition for grant of special leave shall be put up for hearing
                                                                              B
   ex parte unless there be a caveat. The court if it thinks fit, may
   direct issue of notice to the respondent and adjourn the hearing of
   the petition. Under Rule 13, the respondent to whom a notice in
   special leave petition is issued or who had filed a caveat, shall be
   entitled to oppose the grant of leave or interim orders without
   filing any written objections. He shall also be at liberty to file his     C
   objections only by setting out the grounds in opposition to the
   questions of law or grounds set out in the SLP. On hearing, the
   Court may refuse the leave and dismiss the petition for seeking
   special leave to appeal either ex parte or after issuing notice to
   the opposite party. Under Rule 11, on the grant of special leave,
                                                                              D
   the petition for special leave shall, subject to the payment of
   additional court fee, if any, be treated as the petition of appeal and
   it shall be registered and numbered as such. The appeal shall then
   be set down for hearing in accordance with the procedure laid
   down thereafter. Thus, a petition seeking grant of special leave to
   appeal and the appeal itself, though both dealt with by Article 136        E
   of the Constitution, are two clearly distinct stages. In our opinion,
   the legal position which emerges is as under:
      (1) While hearing the petition for special leave to appeal, the
      Court is called upon to see whether the petitioner should be
      granted such leave or not. While hearing such petition, the             F
      Court is not exercising its appellate jurisdiction; it is merely
      exercising its discretionary jurisdiction to grant or not to grant
      leave to appeal. The petitioner is still outside the gate of entry
      though aspiring to enter the appellate arena of the Supreme
      Court. Whether he enters or not would depend on the fate of
      his petition for special leave;                                         G

      (2) If the petition seeking grant of leave to appeal is dismissed,
      it is an expression of opinion by the Court that a case for invoking
      appellate jurisdiction of the Court was not made out;

                                                                              H
426              SUPREME COURT REPORTS                               [2019] 3 S.C.R.


A                (3) If leave to appeal is granted the appellate jurisdiction of the
                 Court stands invoked; the gate for entry in the appellate arena
                 is opened. The petitioner is in and the respondent may also be
                 called upon to face him, though in an appropriate case, in spite
                 of having granted leave to appeal, the Court may dismiss the
                 appeal without noticing the respondent.
B
                 (4) In spite of a petition for special leave to appeal having been
                 filed, the judgment, decree or order against which leave to
                 appeal has been sought for, continues to be final, effective and
                 binding as between the parties. Once leave to appeal has been
                 granted, the finality of the judgment, decree or order appealed
C                against is put in jeopardy though it continues to be binding and
                 effective between the parties unless it is a nullity or unless the
                 Court may pass a specific order staying or suspending the
                 operation or execution of the judgment, decree or order under
                 challenge.”
D            21. The Court thereafter analysed number of cases where orders
      of different nature were passed and dealt with these judgments by
      classifying them in the following categories:
             (i) Dismissal at the stage of special leave petition - without reasons
             - no res judicata, no merger8.
E            (ii) Dismissal of the special leave petition by speaking or reasoned
             order - no merger, but rule of discipline and Article 141 attracted9.
             (iii) Leave granted - dismissal without reasons - merger results10.
      8
        Proposition based on judgments in Workmen v. Board of Trustees of the Cochin Port
      Trust, (1978) 3 SCC 119; Western India Match Co. Ltd. v. Industrial Tribunal, AIR
      1958 Mad 398; Indian Oil Corpn. Ltd. v. State of Bihar, (1986) 4 SCC 146; Rup
F
      Diamonds v. Union of India, (1989) 2 SCC 356; Wilson v. Colchester Justices, (1985)
      2 All ER 97 (HL); Supreme Court Employees’ Welfare Assn. v. Union of India, (1989)
      4 SCC 187; Yogendra Narayan Chowdhury v. Union of India, (1996) 7 SCC 1; V.M.
      Salgaocar & Bros. (P) Ltd. v. CIT, (2000) 5 SCC 373; Sree Narayana Dharmasanghom
      Trust v. SwamiPrakasananda, (1997) 6 SCC 78 and State of Maharashtra v. Prabhakar
      Bhikaji Ingle, (1996) 3 SCC 463.
      9
G       Penu Balakrishna Iyer v. Ariya M. Ramaswami Iyer, AIR 1965 SC 195; Abbai Maligai
      Partnership Firm v. K. Santhakumaran, (1998) 7 SCC 386; Shankar Ramchandra
      Abhyankar v. Krishnaji Dattatreya Bapat, (1969) 2 SCC 74; Sushil Kumar Sen v. State
      of Bihar, (1975) 1 SCC 774; Gopabandhu Biswal v. Krishna Chandra Mohanty, (1998)
      4 SCC 447; Junior Telecom Officers Forum v. Union of India, 1993 Supp (4) SCC 693
      and Supreme Court Employees’ Welfare Assn. Case, (1989) 4 SCC 187.
      10
         Thungabhadra Industries Ltd. v. Govt. of A.P., AIR 1964 SC 1372.
H
   KHODAY DISTILLERIES LTD. v. SRI MAHADESHWARA                                     427
  SAHAKARA SAKKARE KARKHANE LTD. [A. K. SIKRI, J.]

      22. It may be pertinent to mention here that while laying down the            A
second principle mentioned above, the Court took note of the judgment
in Abbai Maligai Partnership Firm and discussed it in the following
manner:
       “26. The underlying logic attaching efficacy to an order of the
       Supreme Court dismissing SLP after hearing counsel for the parties           B
       is discernible from a recent three-Judge Bench decision of this
       Court in Abbai Maligai Partnership Firm v.
       K. Santhakumaran [(1998) 7 SCC 386] . In the matter of eviction
       proceeding initiated before the Rent Controller, the order passed
       therein was subjected to appeal and then revision before the High
       Court. Special leave petitions were preferred before the Supreme             C
       Court where the respondents were present on caveat. Both the
       sides were heard through the Senior Advocates representing them.
       The special leave petitions were dismissed. The High Court
       thereafter entertained review petitions which were highly belated
       and having condoned the delay reversed the orders made earlier               D
       in civil revision petitions. The orders in review were challenged
       by filing appeals under leave granted on special leave petitions.
       This Court observed that what was done by the learned Single
       Judge was “subversive of judicial discipline”. The facts and
       circumstances of the case persuaded this Court to form an opinion
       that the tenants were indulging in vexatious litigations, abusing the        E
       process of the Court by approaching the High Court and the very
       entertainment of review petitions (after condoning a long delay of
       221 days) and then reversing the earlier orders was an affront to
       the order of this Court. However the learned Judges deciding the
       case have nowhere in the course of their judgment relied on                  F
       doctrine of merger for taking the view they have done. A careful
       reading of this decision brings out the correct statement of law
       and fortifies us in taking the view as under.”
       23. It may also be of interest to note that the Court dealt with the
situation where the review is filed earlier in point of time and the special        G
leave petition is filed thereafter, and dealt with the situation in the following
manner:
       “37. Let us assume that the review is filed first and the delay in
       SLP is condoned and the special leave is ultimately granted and
                                                                                    H
428            SUPREME COURT REPORTS                             [2019] 3 S.C.R.


A           the appeal is pending in this Court. The position then, under Order
            47 Rule 1 CPC is that still the review can be disposed of by the
            High Court. If the review of a decree is granted before the disposal
            of the appeal against the decree, the decree appealed against will
            cease to exist and the appeal would be rendered incompetent. An
            appeal cannot be preferred against a decree after a review against
B
            the decree has been granted. This is because the decree reviewed
            gets merged in the decree passed on review and the appeal to the
            superior court preferred against the earlier decree — the one
            before review — becomes infructuous.”
             24. After elaborate discourse on almost all the aspects, the Court
C     gave its conclusions and also summed up the legal position from paragraphs
      39 to 44. We reproduce the same hereunder:
            “39. We have catalogued and dealt with all the available decisions
            of this Court brought to our notice on the point at issue. It is clear
            that as amongst the several two-Judge Bench decisions there is a
D           conflict of opinion and needs to be set at rest. The source of
            power conferring binding efficacy on decisions of this Court is
            not uniform in all such decisions. Reference is found having been
            made to (i) Article 141 of the Constitution, (ii) doctrine of merger,
            (iii) res judicata, and (iv) rule of discipline flowing from this Court
E           being the highest court of the land.
            40. A petition seeking grant of special leave to appeal may be
            rejected for several reasons. For example, it may be rejected (i)
            as barred by time, or (ii) being a defective presentation, (iii) the
            petitioner having no locus standi to file the petition, (iv) the conduct
F           of the petitioner disentitling him to any indulgence by the court,
            (iv) the question raised by the petitioner for consideration by this
            Court being not fit for consideration or deserving being dealt with
            by the Apex Court of the country and so on. The expression often
            employed by this Court while disposing of such petitions are —
            “heard and dismissed”, “dismissed”, “dismissed as barred by time”
G           and so on. May be that at the admission stage itself the opposite
            party appears on caveat or on notice and offers contest to the
            maintainability of the petition. The Court may apply its mind to the
            meritworthiness of the petitioner’s prayer seeking leave to file an
            appeal and having formed an opinion may say “dismissed on
H
 KHODAY DISTILLERIES LTD. v. SRI MAHADESHWARA                               429
SAHAKARA SAKKARE KARKHANE LTD. [A. K. SIKRI, J.]

   merits”. Such an order may be passed even ex parte, that is, in          A
   the absence of the opposite party. In any case, the dismissal would
   remain a dismissal by a non-speaking order where no reasons
   have been assigned and no law has been declared by the Supreme
   Court. The dismissal is not of the appeal but of the special leave
   petition. Even if the merits have been gone into, they are the merits
                                                                            B
   of the special leave petition only. In our opinion neither doctrine of
   merger nor Article 141 of the Constitution is attracted to such an
   order. Grounds entitling exercise of review jurisdiction conferred
   by Order 47 Rule 1 CPC or any other statutory provision or allowing
   review of an order passed in exercise of writ or supervisory
   jurisdiction of the High Court (where also the principles underlying     C
   or emerging from Order 47 Rule 1 CPC act as guidelines) are not
   necessarily the same on which this Court exercises discretion to
   grant or not to grant special leave to appeal while disposing of a
   petition for the purpose. Mere rejection of a special leave petition
   does not take away the jurisdiction of the court, tribunal or forum
                                                                            D
   whose order forms the subject-matter of petition for special leave
   to review its own order if grounds for exercise of review jurisdiction
   are shown to exist. Where the order rejecting an SLP is a speaking
   order, that is, where reasons have been assigned by this Court for
   rejecting the petition for special leave and are stated in the order
   still the order remains the one rejecting prayer for the grant of        E
   leave to appeal. The petitioner has been turned away at the
   threshold without having been allowed to enter in the appellate
   jurisdiction of this Court. Here also the doctrine of merger would
   not apply. But the law stated or declared by this Court in its order
   shall attract applicability of Article 141 of the Constitution. The
                                                                            F
   reasons assigned by this Court in its order expressing its
   adjudication (expressly or by necessary implication) on point of
   fact or law shall take away the jurisdiction of any other court,
   tribunal or authority to express any opinion in conflict with or in
   departure from the view taken by this Court because permitting
   to do so would be subversive of judicial discipline and an affront       G
   to the order of this Court. However this would be so not by
   reference to the doctrine of merger.
   41. Once a special leave petition has been granted, the doors for
   the exercise of appellate jurisdiction of this Court have been let
                                                                            H
430      SUPREME COURT REPORTS                            [2019] 3 S.C.R.


A     open. The order impugned before the Supreme Court becomes
      an order appealed against. Any order passed thereafter would be
      an appellate order and would attract the applicability of doctrine
      of merger. It would not make a difference whether the order is
      one of reversal or of modification or of dismissal affirming the
      order appealed against. It would also not make any difference if
B
      the order is a speaking or non-speaking one. Whenever this Court
      has felt inclined to apply its mind to the merits of the order put in
      issue before it though it may be inclined to affirm the same, it is
      customary with this Court to grant leave to appeal and thereafter
      dismiss the appeal itself (and not merely the petition for special
C     leave) though at times the orders granting leave to appeal and
      dismissing the appeal are contained in the same order and at times
      the orders are quite brief. Nevertheless, the order shows the
      exercise of appellate jurisdiction and therein the merits of the order
      impugned having been subjected to judicial scrutiny of this Court.
D     42. “To merge” means to sink or disappear in something else; to
      become absorbed or extinguished; to be combined or be swallowed
      up. Merger in law is defined as the absorption of a thing of lesser
      importance by a greater, whereby the lesser ceases to exist, but
      the greater is not increased; an absorption or swallowing up so as
      to involve a loss of identity and individuality. (See Corpus Juris
E     Secundum, Vol. LVII, pp. 1067-68.)
      43. We may look at the issue from another angle. The Supreme
      Court cannot and does not reverse or modify the decree or order
      appealed against while deciding a petition for special leave to
      appeal. What is impugned before the Supreme Court can be
F     reversed or modified only after granting leave to appeal and then
      assuming appellate jurisdiction over it. If the order impugned before
      the Supreme Court cannot be reversed or modified at the SLP
      stage obviously that order cannot also be affirmed at the SLP
      stage.
G     44. To sum up, our conclusions are:
      (i) Where an appeal or revision is provided against an order passed
      by a court, tribunal or any other authority before superior forum
      and such superior forum modifies, reverses or affirms the decision
      put in issue before it, the decision by the subordinate forum merges
H
 KHODAY DISTILLERIES LTD. v. SRI MAHADESHWARA                              431
SAHAKARA SAKKARE KARKHANE LTD. [A. K. SIKRI, J.]

   in the decision by the superior forum and it is the latter which        A
   subsists, remains operative and is capable of enforcement in the
   eye of law.
   (ii) The jurisdiction conferred by Article 136 of the Constitution is
   divisible into two stages. The first stage is upto the disposal of
   prayer for special leave to file an appeal. The second stage            B
   commences if and when the leave to appeal is granted and the
   special leave petition is converted into an appeal.
   (iii) The doctrine of merger is not a doctrine of universal or
   unlimited application. It will depend on the nature of jurisdiction
   exercised by the superior forum and the content or subject-matter       C
   of challenge laid or capable of being laid shall be determinative of
   the applicability of merger. The superior jurisdiction should be
   capable of reversing, modifying or affirming the order put in issue
   before it. Under Article 136 of the Constitution the Supreme Court
   may reverse, modify or affirm the judgment-decree or order
   appealed against while exercising its appellate jurisdiction and not    D
   while exercising the discretionary jurisdiction disposing of petition
   for special leave to appeal. The doctrine of merger can therefore
   be applied to the former and not to the latter.
   (iv) An order refusing special leave to appeal may be a non-
   speaking order or a speaking one. In either case it does not attract    E
   the doctrine of merger. An order refusing special leave to appeal
   does not stand substituted in place of the order under challenge.
   All that it means is that the Court was not inclined to exercise its
   discretion so as to allow the appeal being filed.
   (v) If the order refusing leave to appeal is a speaking order, i.e.,    F
   gives reasons for refusing the grant of leave, then the order has
   two implications. Firstly, the statement of law contained in the
   order is a declaration of law by the Supreme Court within the
   meaning of Article 141 of the Constitution. Secondly, other than
   the declaration of law, whatever is stated in the order are the         G
   findings recorded by the Supreme Court which would bind the
   parties thereto and also the court, tribunal or authority in any
   proceedings subsequent thereto by way of judicial discipline, the
   Supreme Court being the Apex Court of the country. But, this
   does not amount to saying that the order of the court, tribunal or
                                                                           H
432            SUPREME COURT REPORTS                           [2019] 3 S.C.R.


A           authority below has stood merged in the order of the Supreme
            Court rejecting the special leave petition or that the order of the
            Supreme Court is the only order binding as res judicata in
            subsequent proceedings between the parties.
            (vi) Once leave to appeal has been granted and appellate
B           jurisdiction of Supreme Court has been invoked the order passed
            in appeal would attract the doctrine of merger; the order may be
            of reversal, modification or merely affirmation.
            (vii) On an appeal having been preferred or a petition seeking
            leave to appeal having been converted into an appeal before the
C           Supreme Court the jurisdiction of High Court to entertain a review
            petition is lost thereafter as provided by sub-rule (1) of Rule 1 of
            Order 47 CPC.”
             25. Having noted the aforesaid two judgments and particularly
      the fact that the earlier judgment in the case of Abbai Maligai
D     Partnership Firm is duly taken cognisance of and explained in the latter
      judgment, we are of the view that there is no conflict insofar as ratio of
      the two cases is concerned. Moreover, Abbai Maligai Partnership
      Firm was decided on its peculiar facts, with no discussion on any principle
      of law, whereas Kunhayammed is an elaborate discourse based on
      well accepted propositions of law which are applicable for such an issue.
E     We are, therefore, of the view that detailed judgment in Kunhayammed
      lays down the correct law and there is no need to refer the cases to
      larger Bench, as was contended by the counsel for the appellant.
             26. While taking this view, we may also point out that even in
      K. Rajamouli this Court took note of both these judgments and explained
F     the principle of res judicata in the following manner:
            “4. Following the decision in Kunhayammed [(2000) 6 SCC 359]
            we are of the view that the dismissal of the special leave petition
            against the main judgment of the High Court would not constitute
            res judicata when a special leave petition is filed against the order
G           passed in the review petition provided the review petition was
            filed prior to filing of special leave petition against the main
            judgment of the High Court. The position would be different where
            after dismissal of the special leave petition against the main
            judgment a party files a review petition after a long delay on the
H
  KHODAY DISTILLERIES LTD. v. SRI MAHADESHWARA                                433
 SAHAKARA SAKKARE KARKHANE LTD. [A. K. SIKRI, J.]

      ground that the party was prosecuting remedy by way of special          A
      leave petition. In such a situation the filing of review would be an
      abuse of the process of the law. We are in agreement with the
      view taken in Abbai Maligai Partnership Firm [(1998) 7 SCC
      386] that if the High Court allows the review petition filed after
      the special leave petition was dismissed after condoning the delay,
                                                                              B
      it would be treated as an affront to the order of the Supreme
      Court. But this is not the case here. In the present case, the review
      petition was filed well within time and since the review petition
      was not being decided by the High Court, the appellant filed the
      special leave petition against the main judgment of the High Court.
      We, therefore, overrule the preliminary objection of the counsel        C
      for the respondent and hold that this appeal arising out of special
      leave petition is maintainable.”
       27. From a cumulative reading of the various judgments, we sum
up the legal position as under:
      (a) The conclusions rendered by the three Judge Bench of this           D
      Court in Kunhayammed and summed up in paragraph 44 are
      affirmed and reiterated.
      (b) We reiterate the conclusions relevant for these cases as under:
      “(iv) An order refusing special leave to appeal may be a non-           E
      speaking order or a speaking one. In either case it does not attract
      the doctrine of merger. An order refusing special leave to appeal
      does not stand substituted in place of the order under challenge.
      All that it means is that the Court was not inclined to exercise its
      discretion so as to allow the appeal being filed.
                                                                              F
      (v) If the order refusing leave to appeal is a speaking order, i.e.,
      gives reasons for refusing the grant of leave, then the order has
      two implications. Firstly, the statement of law contained in the
      order is a declaration of law by the Supreme Court within the
      meaning of Article 141 of the Constitution. Secondly, other than
      the declaration of law, whatever is stated in the order are the         G
      findings recorded by the Supreme Court which would bind the
      parties thereto and also the court, tribunal or authority in any
      proceedings subsequent thereto by way of judicial discipline, the

                                                                              H
434             SUPREME COURT REPORTS                           [2019] 3 S.C.R.


A           Supreme Court being the Apex Court of the country. But, this
            does not amount to saying that the order of the court, tribunal or
            authority below has stood merged in the order of the Supreme
            Court rejecting the special leave petition or that the order of the
            Supreme Court is the only order binding as res judicata in
            subsequent proceedings between the parties.
B
            (vi) Once leave to appeal has been granted and appellate
            jurisdiction of Supreme Court has been invoked the order passed
            in appeal would attract the doctrine of merger; the order may be
            of reversal, modification or merely affirmation.
C           (vii) On an appeal having been preferred or a petition seeking
            leave to appeal having been converted into an appeal before the
            Supreme Court the jurisdiction of High Court to entertain a review
            petition is lost thereafter as provided by sub-rule (1) of Rule 1 of
            Order 47 CPC.”

D            (c) Once we hold that law laid down in Kunhayammed is to be
      followed, it will not make any difference whether the review petition
      was filed before the filing of special leave petition or was filed after the
      dismissal of special leave petition. Such a situation is covered in para 37
      of Kunhayammed case.

E          28. Applying the aforesaid principles, the outcome of these appeals
      would be as under:
             Civil Appeal arising out of Special Leave Petition (Civil)
      No. 490 of 2012: In the instant case, since special leave petition was
      dismissed in limine without giving any reasons, the review petition filed
F     by the appellant in the High Court would be maintainable and should
      have been decided on merits. Order dated November 12, 2008 passed
      by the High Court is accordingly set aside and matter is remanded back
      to the High Court for deciding the review petition on merits. Civil Appeal
      disposed of accordingly.
            Civil Appeal arising out of Special Leave Petition (Civil)
G
      No. 13792 of 2013: In this case, we find that the special leave petition
      was dismissed with the following order passed on January 05, 2012:
            “We find no ground to interfere with the impugned order. The
            special leave petition is dismissed.”
H
   KHODAY DISTILLERIES LTD. v. SRI MAHADESHWARA                                435
  SAHAKARA SAKKARE KARKHANE LTD. [A. K. SIKRI, J.]

       Here also, special leave petition was dismissed in limine and           A
without any speaking order. After the dismissal of the special leave
petition, the respondent in this appeal had approached the High Court
with review petition. Said review petition is allowed by passing order
dated December 12, 2012 on the ground of suppression of material facts
by the appellant herein and commission of fraud on the Court. Such a
                                                                               B
review petition was maintainable. Therefore, the High Court was
empowered to entertain the same on merits. Insofar as appeal of the
appellant challenging the order dated December 12, 2012 on merits is
concerned, the matter shall be placed before the regular Board to decide
the same.
                                                                               C

Kalpana K. Tripathy                                     Appeals disposed of.




                                                                               D




                                                                               E




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For a digitally signed copy suitable for filing, refer to the court's own website. Only the court can issue one.