Created byFuzzy Cloud

Supreme Court of India

SHRI RAM CHANDRA MISSION & ANR.versusP. RAJAGOPALACHARI & ORS.

Citation
2008 INSC 551
Decided
29 April 2008
Disposal
Disposed off

Holding

A suit withdrawn with liberty to file a fresh suit wipes out the earlier proceedings and judgment, precluding any res judicata effect in subsequent or pending suits.

Summary

The dispute concerned the spiritual heirship and control of the Shri Ram Chandra Mission, a religious society, after the death of its founder. Members of the society filed a suit seeking an ex‑parte injunction restraining P. Rajagopalachari from acting as President, which was later set aside by the High Court and the suit was withdrawn with liberty to file a fresh suit. The appellants challenged the effect of that withdrawal, arguing that the earlier proceedings should have res judicata effect on the pending suit. The Supreme Court held that a suit withdrawn with permission to re‑file extinguishes the earlier proceedings and judgment, so it cannot give rise to res judicata in any subsequent or pending suit. Consequently, the Court directed that the pending suit be decided within six months and allowed the parties to seek interim relief as needed. The appeal was dismissed.

Issues considered

  • What is the effect of a court‑permitted withdrawal of a suit on the doctrine of res judicata?
  • Can the findings of a withdrawn suit be considered in a pending suit?
  • Whether Sections 3(A) and 4 of the Societies Registration Act, 1860 require election of office‑bearers in the society.

Legislation cited

Subjects

withdrawal of suitres judicatareligious societyspiritual heirshipSocieties Registration ActSection 3(A)Section 4interim injunctionpending suitelection vs nomination

Judgment

                           [2008] 7 S.C.R. 194


A              SHRI RAM CHANDRA MISSION & ANR.
                                   v.
                   P. RAJAGOPALACHARI & ORS.
                   (Civil Appeal No. 6619 of 2000)
                            APRIL 29, 2008
B
        (DR. ARIJIT PASAYAT & TARUN CHATTERJEE, JJ.)

         Code of Civil Procedure, 1908 - Suit - Withdrawal of suit
  - Effect of - On facts, disputes pertaining to spiritual heirship
c to control affairs of Mission - Suit by members of religious
  society seeking injunction restraining P from acting as
  President - Ex parte injunction - Set aside by High Court -
  Upheld by this Court- Subsequently suit withdrawn with liberty
  to file fresh suit- On appeal, held: Effect and relevance of any
  proceeding having attained finality to be duly considered in
0
  pending suit - Earlier suit having direct effect was withdrawn,
  its effect is to be considered - Pending suit to be decided within
  six months - Parties at liberty to move for interim protection
  as and when circumstances warrant.
E '        K. Sivaramaiah v. Rukmani Ammal (2004) 1 SCC 471 -
      referred to.
           CIVILAPPELLATE JURISDICTION: Civil Appeal No. 6619
      of 2000.
F          From the final Judgment and Order dated 24.11.1998 of
      the High Court of Judicature at Allahabad in Special Appeal
      No. 580 of 1997.
       Vinod A. Bobde, 8. Vijayalakshmi Menon, Puneet Saxena,
  D. Ramakrishnan Reddy, Ch. I. Sarveswar and Ekta Kapil for
G the Appellants.
           Dipankar P. Gupta, Dinesh Owivedi, V. Shekhar, Pradeep
      S. Baghel, Abhay S. Kushwaha, V.P. Singh, Shrish Kumar Misra,
      A.K. Mishra, Ashok K. Srivastava, Kamlendra Mishra and Rajeev
H                                 194
         SHRI RAM CHANDRA MISSION & ANR. v. P.                     195
     RAJAGOPALACHARI & ORS. [DR. ARIJIT PASAYAT, J.)
'-
     Dubey for the Respondents.                                           A
          The Judgment of the Court was delivered by
           DR. ARIJIT PASAYAT, J. 1. Challenge in this appeal is to
     the judgment of a Division Bench of the Allahabad High Court.
     By a common judgment several civil appeals were heard B
     together and disposed of. A common link in all these appeals
     was the decision of a religious cum Philanthropic Society named
     Sh. Ram Chandra Mission. It was established by a late Sh. Ram
     Chandra Ji Maharajan and on his death disputes arose. The
     disputes essentially relate to spiritual heirship to control the c
     affairs of the mission. Series of litigation was resulted and the
     four special leaves before the High Court were summed up and
     by the impugned order the High Court held that all the four
     appeals were to be dismissed. Before the Division Bench
     orders of learned Single Judge were challenged. The relief
                                                                       D
     sought for were categorized under five heads.
          1.   Grant of letters of administration in favour of Sri U.C.
               Saxena in respect of the properties of Sri Ram
               Chandra Mission through out India and abroad.
          2.   Declaration that Sri Umesh Chandra Saxena was              E
               the President of the Mission and the second petitioner
               was the Secretary thereof.
          3.   An interim grant during pendency of the application.
          4.   In the alternative appointment of a receiver in respect    F
               of the entire estate of deceased Sr. Ram Chandra
               Mission, and
          5.   Any other relief.
           2. The special leaves were filed by Umesh Chandra G
     Saxena and others, Uma Shankar and Another, the present
'~   appellants and another. Special leave by the Umesh Chandra
     Saxena and Anr. Sri. P. Rajagopalichari were the respondent
     while in the first special leave by Umesh Chandra Saxena and
     Anr. The Administrative General, U.P. Allahabad and others were H
    196''     SUPREME COURT REPORTS                 (2008) 7 S.C.R.


A   the parties.                                                       l•

        3. Background facts as highlighted by the appellant in this
    appeal are as follows:

        Sh. Ram Chandra Mission-Society was registered,
B established and founded by Maharaj, Shri Ram Chandra Ji
  Maharaj with its constitution, bye laws and Memorandum of
  Society on 21.7.1995. Purportedly there was a covering letter
  to the intimation dated 23.3.197 4 alleged to have been executed
  by the founder in favour of respondent P. Rajagopalachari. This
c intimation according to the appellant was the result of
  manipulation and fraud. The nomination was declared him to
  be the president of society and clearly stated that he shall work
  for the Mission and he is "President of Sahaj Marga System".
  On 16.4.1982 nomination was executed in favour of Shri Umesh
  Chandra Saxena as spiritual representative in the direct line of
0
  succession and he was nominated as the successor or
  President under Rules 3 and 4 of the registered constitution,
  bye laws of the society. The nomination/declaration clearly stated
  that the previous nomination if any made by the founder stand
  superseded and cancelled. Founder - Shri Ram Chandraji
E Maharaj breathed his last on 19.4.1983. On 4.1.1984 a civil
  suit was filed by three members of the Society in the Court of
  Civil Judge, Shahjanpur who granted ex-parte injunction
  restraining P. Rajgopalachari from acting as President. On
  6.2.1984 and 7.2.1984 working Committee meeting was held
F at head quarters and after perusal of booklet Sh. U.C. Saxena
  was declared as a successor or President and also the spiritual
  representative in the direct line of succession on the basis of
  nomination of 16.4.1982. The claim of P. Rajgopalachari based
  on the alleged nomination dated 23.3.1974 was treated as
G rejected. On 8 .2 .1984 General Body was held at the head quarter
  of the Society and the claim of Sh. Umesh Chandra Saxena
  was approved and he was declared as spiritual representative
  in the direct line of succession and also as the successor or
  President of the society. Claim of P. Rajgopalachari based on
H the alleged nomination was rejected. On 15.2.1982 a circular
--..
   '
                     SHRI RAM CHANDRA MISSION & ANR. v. P.                      197
                 RAJAGOPALACHARI & ORS. [DR. ARIJIT PASAYAT, J.]

           ""     was issued by Secretary Sh. S. A. Sarnad informing all members       A
                  regarding the declaration of Sh. Umesh Chandra Saxena as
                  Successor President and the spiritual representative in the
                  direct line of succession. An amendment was carried out to the
                  Societies Registration Act, 1860 on 30.4.1984. Section 3(A)
                  was amended by the substitution of sub section 4 of Section          B
       t·   '     3(A) and addition of a proviso to Section 4(1 ). By virtue of
                  Section 3(a)(4). List of the members of the managing Committee
                  Body elected was required to be filed. Ex-parte injunction was
                  granted on 4.1.1984 was confirmed on 9.4.1984. In appeal by
                  respondent No. 1, P. Rajgopalachari the High Court granted
                                                                                       c
                  stay of injunction. The High Court allowed the first appeal and
                  set aside the injunction order. SLP filed against the order of the
                  High Court was dismissed by this Court on 27.9.1985. The suit
                  was subsequently withdrawn on 10.7.1997 on giving of an
                  undertaking not to alignate and not to shift the head quarters.
                                                                                       D
                  On 23.1.1988 elections were held at the head quarters in
                  accordance with Section 3(A)(4) and Section 4 and the office
                  bearers were duly elected Sh. S.P. Srivastava as President and
                  Sh. B.D. Mahajan as Secretary respectively. On 24.4.1990 in
                  proceeding under Section 25 of the Act report of the Tehsildar
                . counter signed by the SOM as the prescribed authority under          E
                  Section 25 was passed recognizing the representation of
                  aforesaid two persons as the President and Secretary. On
                  29.7.1991 another report was given by the tehsildar and K.G. in
                  a proceeding under Section 25 recognising the same position.
                  The aforesaid reports were questioned on behalf of respondent        F
                  No. 1 before the prescribed authority by an application called
                  SU-2/91 the application was rejected by the prescribed authority
                  and earlier reports were confirmed. An application was moved
                  by 75 members of the society for action under Section 25(2) of
                  the Act on 20.4.1993. On 15.2.1994 elections were held and           G
                  Sh. Umesh Chandra Saxena and Sh.K.V. Reddy were elected
       •          as President and Secretary respectively. on 29.9.1994 the
                  Assistant Registrar passed order holding that since the
                  Constitution provides for nomination of President election cannot
                  be conducted. He also held that in view of the interim orders in     H
    198       SUPREME COURl REPORTS                   [2008] 7 S.C.R.


A civil suit OS (No.) 200 of 1983 the respondent No. 1 P.
  Rajagopalachari shall continue to work as President. As noted
  above the suit was withdrawn on 10. 7 .1997 with liberty to file
  fresh suit. On 10.7.1997 writ petition No. 37023 of 1994 filed
  against the order dated 29.9.1994 was dismissed by learned
B Single Judge. On 24.11.1998 the Division Bench dismissed
  the special leave No. 580 of 1987 holding that since under the         '
  Rules of the society the post of the President and Members of
  the working committee is not an elected one, Section 25 would
  not come into play. The High Court, however held that Registrar
c had no authority to direct anybody to continue an office. It was
  further held that the application under Section 25(2) itself was
  untenable and so was the writ petition. On 22.1.1999 elections
  were held and again Umesh Chandra Saxena and Sh. K.V.
  Reddy were elected as President and Secretary in accordance
D with the amended provisions of the Act. On 3.11.2003 Sh.
  Umesh Chandra Saxena expired and Navneet Kumar Saxena
  was elected unanimously as the President of the Society in an
  emergent meeting which was held at Hyderabad by working
  committee. The general Body on 22.11.2003 had approved and
  confirmed the election of the Navneet Kumar Saxena as the
E President of the society. Further the amendment proposed and
  adopted by the General body of the society, in order to make
  the rules in consonance of the provisions of the Act. On 12 .2 .2005
  elections were held in the society for electing the Managing
  committee and again Navneet Kumar Saxena and K. V. Reddy
F was elected as the president and Secretary respectively.
       4. Primarily the stand is that if Section 3(A)(4) as introduced
  by Act 11 of 1984 cannot be given a restricted meaning. If it is
  Managing Body "elected" then the provision made would be
G rendered "nugatory". It is intended to provide that even if Rules.
  say otherwise "elections" has to be introduced, Section4
  (Proviso) is also relevant. The stand is that earlier there was no
  need for list of elected members as there was no elected
  member. So the purpose is to have elected members. Section
  4 speaks of an annual list. If the intention was that the members
H
                  SHRI RAM CHANDRA MISSION & ANR. v. P.                       199
              RAJAGOPALACHARI & ORS. [DR. ARIJIT PASAYAT, J.]

              were to be elected, the legislature could have said so specifically    A
              without leaving it to be inferred by implication. Section 27
              provides for the consequence for non compliance with Section
            . 4. ft is stated that the position in 1975 was that chosen includes
              "election". Now, it only means elected by implication and that to
              be read in the line of Section 3(A) and 4 proviso, it is pointed       B
~
    i         out that Section 25(2) refers to election and the remedy to
              challenge. If there is no remedy nobody is left remedyless.
              Alternatively, it is submitted that assuming it is to be done by
              nomination, P. Rajgopalachari could have been nominated, but
              it has been annulled on 16.4.1982 as Umesh Chandra Saxena              c
              remains nominated. ft is pointed out that role as President of
              the Sahaj Marg system is different. The application filed by Sh.
              Rajgopalachari has to be t_ested as per clause 3(b}, these were
              not challenged and Rajgopafchari cannot have nay role to play.
              P.Rajgopalachari could not have been nominated because he
                                                                                     D
              is not in the direct line of succession. In any event, after passing
              of order dated 16.4.1982 he has no role to play. The working
              committee's decision, resolution of the General Body all are of
              similar effect. The stand is strongly opposed by the respondent
              to say that nomination were not merely in respect of the Sahaj
              Marg system system but it was in respect of President itself.          E

                   5. It is pointed out that the earlier suit having direct effect
             was withdrawn and the effect of it has to be considered. The
             effect of the withdrawal of a suit has been considered by this
             Court in K. Sivaramaiah v. Rukmani Ammal [2004(1) SCC                   F
             471]. It was inter alia observed as follows:
                   "So far as Original Suit No. 7359 of 1989 is concerned,
                   the findings recorded in the judgment therein could have
                   constituted res judicata but the fact remains that the
                   appellate court permitted the withdrawal of the suit and G
                   once the suit has been permitted to be withdrawn all the
    ,   .          proceedings taken therein including the judgment passed
                   by the trial court have been wiped out. A judgment given
                   in a suit which has been permitted to be withdrawn with
                   the liberty offiling a fresh suit on the same cause of action H
    200        SUPREME COURT REPORTS                    (2008] 7 S.C.R.


A          cannot constitute res judicate in a subsequent suit filed
           pursuant to such permission of the court."

          6. It is not necessary to deal with the true import of Sections
    3(A) and 4. It would be appropriate to direct that the pending
    suit shall be decided within a period of six months.
8
          7. The effect and relevance of any proceedings which have
    attained finality shall be duly considered in the pending suit. It is
    open to the parties to move for such interim protection as the
    circumstances warrant. The appeal stands disposed of
C   accordingly. No order as to costs.

    N.J.                                         Appeal disposed of.


Search Indian case law

Ask in plain English, not just keywords. 25,000 AI words free, no card.

Try "withdrawal of suit"Sign in to search

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