PUNJAB STATE AND ORS.versusHARVINDER SINGH
- Citation
- 2008 INSC 246
- Decided
- 22 February 2008
- Disposal
- Dismissed
- Bench
- S B SINHA
Holding
An executing court cannot grant interest unless the decree itself provides for it, and the Supreme Court’s order is not subject to review on the alleged lack of hearing.
Summary
Harvinder Singh, a decree‑holder, applied during execution for interest on the decree amount, although the decree was silent on interest. The trial court allowed 12% interest, a decision upheld by the High Court. The Supreme Court set aside those orders, holding that an executing court lacks jurisdiction to award interest not granted by the decree‑making court. Singh then filed an interlocutory application alleging he was not heard before the Supreme Court’s order. The Court dismissed the application, stating that a review was unnecessary and the earlier order stands. Consequently, the order granting interest was declared void and the interlocutory application was dismissed.
Issues considered
- Whether an executing court can award interest on a decree when the decree does not expressly provide for interest.
- Whether the Supreme Court’s order can be reviewed on the ground that the affected party was not given a hearing.
Legislation cited
- Code of Civil Procedure, 1908s. Order 21, s. Section 34
Subjects
Judgment
(2008) 3 S.C.R. 324
A PUNJAB STATE AND ORS.
v
HARVINDER SINGH
(IA No. 1 of 2007 in Civil Appeal No.6421 of 2003)
FEBRUARY 22, 2008
B
(S.8. SINHA AND V.S. SIRPURKAR, JJ.)
Code of Civil Procedure, 1908 - 0. 21 - Grant of interest
on decreetal amount - By executing Court - Such grant not
c suggested in decree - Award of interest confirmed by High
Court - Denied by Supreme Court - Application for
reconsideration as the order of Supreme Court was passed
without hearing the affected party- Held: Review of the matter
not called for, since grant of such interest by the executing
court not permissible.
D
The respondent filed an application during execution ~·
proceedings claiming interest on the decreetal amount
from the date of the decree. Trial Court allowed the same
holding that interest can be allowed by executing court
E even if the decree does not suggest grant of any. The order
was upheld by High Court in revision. In appeal to this
Court, order of executing Court granting interest was set
aside. Hence the present application by the respondent
on the ground that he could not attend the proceedings
F in the appeal before this Court on account of illness, and
, r
thus the order was passed without granting him
reasonable opportunity of being heard.
Dismissing the application, the Court
HELD: 1. Interest cannot be granted by the executing
G
court, if the same has not been granted by the court
passing the decree. The trial court judgment was based
on a Judgment which does not give out the correct law.
In that view, the trial court's order was patently incorrect
....
H 324
PUNJAB STATE AND ORS. v. HARVINDER SINGH 325
[V.S. SIRPURKAR, J.]
and the order of the High Court confirming the same in A
the Revision was also incorrect and it is for this reason
that this Court set aside that order. [Paras 4 and 5]
[327 -D, E; 329-C]
2. A complaint was made that he was not heard and
the judgment was passed behind his back that this Court B
heard the applicant- respondent in detail. It is not
necessary for this Court to review the order already
passed by this Court. [Para 6] [329-D, E]
Rameshwar Dass Gupta v. State of UP and Anr. (1996)5
sec 728- relied on.
c
Krishan Murari Lal Sehgal v State of Punjab AIR 1977
SC 1233- distinguished.
The State of Punjab v. Radha Ram and Anr. 1990(2) SLR
588; Radha Ram v. Municipal Committee, Barna/a 1983 PLR D
-- 21- disapproved.
CIVIL APPELLATE JURISDICTION : I.A. N0.1 OF 2007
In Civil Appeal No.6421 of 2003.
From the final Order dated 12.01.2002 of the High Court E
of Punjab and Haryana at Chandigarh in Revision Petition No.
178 of 2001.
Kuldip Singh, R.K. Pandey, T.P. Mishra and Ajay Pal for
,, * the Appellants.
F
Harvinder Singh (Respondent-in-person)
The Judgment of the Court was delivered by
V.S. SIRPURKAR, J. 1. This is an Interlocutory Application
in Civil Appeal No.6421 of 2003 which was earlier disposed of G
by this Court consisting of Justice S. Rajendra Babu (As His
Lordship then was) and Justice G.P. Mathur. This Court passed
•- the following order in that appeal which was filed by the State of
Punjab
''L2ave granted H
326 SUPREME COURT REPORTS (2008] 3 S.C.R.
A In the light of decision of this Court in Rameshwar Dass
Gupta vs. State of U .P. & Anr. ((1996) 5 SCC 728], order
made by the Executing Court granting interest shall stand
deleted and in other respects the order made by the
Executing Court, as affirmed by the High Court is
B maintained. The appeal is disposed of accordingly."
This appeal was filed against the order of the Punjab and
Haryana High Court wherein the Hig!l Court in its revisional
jurisdiction had dismissed the revision filed by the State and its
three other officers against the order passed by the Civil Judge
c (Junior Division), Ludhiana. By its order the Trial Court had
allowed the application filed by the applicant herein, Harvinder
Singh. In his application, which was filed during the execution,
the applicant had pointed out that the net amount due to him as
a decree-holder was Rs.4550/- and he was also entitled to the
D interest from the date of decree till the amount was paid. Learned
Trial Judge observed that the decree was passed on 27.11.1990 .....
but there was no mention of interest in the relief clause. The
Trial Court relied on a decision reported in State of Punjab v.
Radha Ram & Ors [1990 (2) SLR 588] and held on the basis
E thereof that the executing court had power to award interest from
the date of decree till the amount is realized, though there is no
such mention of interest in the decree. In the result the Trial Court
awarded 12% interest from the date of decree till the date of
realization. Thus the execution application was allowed.
F 2. As has been stated earlier, the Revision Petition against
,. '
this order was dismissed in limine by the Punjab and Haryana
High Court.
3. When the matter came up before this Court at the
instance of the State and its three other officers, the same was
G
disposed by the order which we have quoted above. The
applicant herein, therefore, filed the present application on the
ground that before passing the order no reasonable opportunity ~
was given to the applicant-respondent of being heard and the •
order was not correct as there were other arguable points in
H
PUNJAB STATE AND ORS. v. HARVINDER SINGH 327
[V.S. SIRPURKAR, J.]
~'i-
connection with the interest on the arrears. It was stated that A
though the applicant was respondent in Civil Appeal No.6421
of 2003, he did noUcould not appear on account of certain illness.
It is on this basis that the aforementioned order dated 14.8.2003,
passed by this Court, came to be assailed. A notice was issued
to the State Government on the application and the parties were B
heard by us.
4. The applicant-respondent argued himself and
contended before us that on some earlier occasions this Court
had granted interest during the execution. Some orders have
been filed before us by the applicant-respondent, passed by c
this Court in CMP No.270 of 1979 dated 6.2.1979 (Krishna
Murari Lal Sehgal vs. State of Punjab), CMP Nos.19534-35 of
1981 in CA Nos.1298-99 of 1969 dated 9.11,.1981 (Krishna
Murari Lal Sehgal vs. State of Punjab) as also the orders passed
in CMP No.36232 of 1983 in Civil Appeal No.1390 of 1978 D
dated 13.9.1984 (Baldev Raj Chadha vs. Union of India & Ors.),
in support of the contention that the interest can be granted by
the executing court even if the decree does not suggest grant of
any interest. We have carefully seen all the orders. None of the
orders is applicable to the controversy involved regarding the E
interest. It cannot be said from any of the orders that this Court
had taken a view that the interest can be so granted by the
executing court even if the same has not been granted by the
court passing the decree. On the other hand it has been held by
I A. this Court in Rameshwar Dass Gupta v. State of U.P. & Anr. F
[(1996) 5 sec 728] that such grant of interest is not possible.
The Court observed:
"It is a well settled legal position that an executing court
cannot travel beyond the order or decree under execution.
It gets jurisdiction only to execute the order in accordance G
with the procedure laid down under Order 21 CPC. In
view of the fact that it is a money claim, what was to be
computed is the arrears of the salary, gratuity and pension
•
after computation of his promotional benefits in
accordance with the service law. That having been done H
328 SUPREME COURT REPORTS [2008] 3 S.C.R.
,..~
A and the court having decided the entitlement of the decree-
holder in a sum of Rs.1,97,000/- and odd, the question
that arises is whether the executing court could step out
and grant a decree for interest which was not part of the
decree for execution on the ground of delay in payment or
B for unreasonable stand taken in execution? In our view,
the executing court has exceeded its jurisdiction and the
order is one without jurisdiction and is thereby a void order."
5. Our attention was invited to the Trial Court judgment
wherein reliance was placed on the reported decision of Punjab
c and Haryana High Court in The State of Punjab v. Radha
Ram & Anr. [1990 (2) SLR 588. In this case a learned Single
Judge of the Punjab and Haryana High Court has taken a view
that even if the decree is silent upon the interest, the executing
court can grant it in case of money claims. In this case the learned
D Single Judge had relied on the decision of the Full Bench
between the parties in Radha Ram v. Municipal Committee, ...
Barnala [1983 PLR 21]. Three paragraphs are quoted from
that decision. All the three paragraphs only pertain to the right
of a person, whose termination had been set aside, to get the
E arrears of salary and allowance. From the three paragraphs
atleast it does not seem that the Full Bench had, in any manner,
held that even where there is no interest granted in the decree,
still the executing court would have the power to grant the interest.
However, the learned Single Judge, after quoting the three
F paragraphs in para 6 observed that the executing court, while "
calculating the relief of past emoluments would have the powers
under Section 34 of the Code of Civil Procedure, 1973 and
would be in a position to grant interest. In our opinion this cannot
be a correct reading of the Full Bench Judgment or even the
judgment in Krishan Murari Lal Sehgal v. State of Punjab
G
[AIR 1977 SC 1233] which was relied upon by the Full Bench
of Punjab and Haryana High Court. From the three paragraphs
quoted above in the judgment it has been held by the Full Bench
that:
H "Once the relief for quashing the order of termination has
PUNJAB STATE AND ORS. v. HARVINDER SINGH 329
[VS. SIRPURKAR, J.]
been granted, or a declaratory decree has been passed A
to the similar effect, it necessarily follow that the employee
in the eye of law continues to be in service and as a
necessary consequences thereof would be entitled to all
the emoluments flowing from that status."
We have also seen the aforementioned judgment in 8
Krishna Murari Lal's case (supra) which is also indirectly relied
f
upon by the learned Single Judge. We do not find any such
proposition in that judgment. From this it is clear that the Trial
Court, though was justified in relying upon the aforementioned
judgment of the learned Single Judge of the Punjab and Haryana C
High Court, that judgment itself does not give out the correct
law. In that view, the Trial Court's order was patently incorrect
and the order of the High Court confirming the same in the
Revision was also incorrect and it is for this reason that this
Court by its order dated 14.8.2003 set aside that order. D
6. It is contended in this application that the applicant-
respondent herein did not or could not remain present at the
time of hearing due to illness. However, since a complaint was
made that he was not heard and the judgment was passed
behind his back that we heard the applicant-respondent in detail. E
In our opinion, it is not necessary for us to review the order
already passed by this Court on 14.8.2003 and we maintain
that order.
7. In view of the above the Interlocutory Application filed by F
the applicant-respondent is dismissed. However, since the
applicant-respondent has appeared in person, there will be no
order as to costs.
K.K.T. Interlocutory Application dismissed.
G
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