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Supreme Court of India

SHYAM MADAN MOHAN RUIA & ORS.versusMESSER HOLDINGS LIMITED & ORS.

Citation
2019 INSC 1370
Decided
13 December 2019
Disposal
Disposed off

Holding

The Supreme Court held that the limitation issue cannot be decided solely as a preliminary issue under the repealed Section 9A and that the suit must proceed afresh with the limitation question to be determined along with the other issues.

Summary

The appellants (Ruias) entered into a settlement on 5 December 2002 transferring 75,001 shares of Bombay Oxygen Investments Ltd. to them. Respondent No.1 (Messer Holdings Ltd.) filed Suit No. 2410 of 2008 seeking to cancel the settlement and claimed ownership of the shares, raising a limitation defence under Section 9A of the Code of Civil Procedure (Maharashtra Amendment) Act, 1977. A single judge held the suit barred by limitation; the Bombay High Court Division Bench reversed that view, holding the suit was within the limitation period. The Supreme Court examined the repeal of Section 9A by the 2018 amendment and the three‑judge decision in Nusli Veville Wadia v. Ivory Properties, concluding that a limitation issue framed under the now‑repealed Section 9A cannot be decided in isolation as a preliminary issue. Consequently, the earlier orders were set aside and the suit was ordered to proceed afresh, with the limitation question to be decided along with the other merits. No opinion was expressed on the substantive rights to the shares.

Issues considered

  • Whether the limitation defence raised under the now‑repealed Section 9A can be decided as a preliminary issue.
  • Whether Suit No. 2410 of 2008 is barred by limitation.
  • Effect of the repeal of Section 9A and the saving clause of the 2018 amendment on pending preliminary issues.

Legislation cited

Subjects

limitationSection 9ACPC amendmentpreliminary issueshare transfersettlement agreementjurisdictionrepeal of statutory provision

Judgment

396                       [2019]
               SUPREME COURT     15 S.C.R. 396
                              REPORTS                     [2019] 15 S.C.R.


A                 SHYAM MADAN MOHAN RUIA & ORS.
                                       v.
                   MESSER HOLDINGS LIMITED & ORS.
                        (Civil Appeal No. 9429 of 2019)
B                           DECEMBER 13, 2019
               [R. BANUMATHI AND A. S. BOPANNA, JJ.]
             Code of Civil Procedure (Maharashtra Amendment) Act,
      2018 – s.9A – Several rounds of litigation between the parties –
      In Suit No.III, Settlement Agreement was entered into under which
C     75,001 shares of respondent No.2 were transferred to the
      appellant(s) by respondent no.3 – Respondent no.1 filed Suit No.IV
      to cancel the said Agreement, inter alia praying for declaration of
      respondent no.1’s ownership of 75,001 shares of respondent no.2
      – Appellants filed affidavit u/s.9A, CPC (Maharashtra Amendment)
D     Act, raising preliminary issue of limitation by contending that the
      suit prayers claiming ownership over the 75,001 shares of
      respondent no.2 is barred by limitation as the Settlement Agreement
      between the appellants was entered on 05.12.02 while Suit No.IV
      was filed by respondent no.1 in 2008 – Single Judge allowed the
      petition filed by the appellants –Division Bench in appeal by the
E     respondent no.1, set aside the order – Held: In view of the
      interpretation given to s.9A by the three Judges Bench in Nusli
      Veville Wadia vs. Ivory Properties & Ors. reported as (2019) 13
      SCALE 620 inter alia holding that no issue can be decided only
      under the guise that it has been framed u/s.9A and was pending
F     consideration on the date of commencement of the 2018 Act, the
      question of limitation will have to be considered along with other
      issues that would arise for adjudication in Suit No.IV – In view of
      the said judgment, the decision rendered by the Single Judge and
      the Division Bench on the issue of limitation by considering that
      as preliminary issue would become nullity and the matter would
G     have to proceed afresh – Suit No.IV to proceed afresh from the
      stage of framing of the issues being uninfluenced by any of the
      views expressed by the Single Judge and the Division Bench –
      Question of limitation be determined along with other issues arising
      for consideration – No opinion expressed on the merits of the
H     matter – Single Judge requested to proceed with the Suit No.IV
                                      396
     SHYAM MADAN MOHAN RUIA & ORS. v. MESSER                           397
            HOLDINGS LIMITED & ORS.

expeditiously and dispose the same preferably within 18 months –       A
Code of Civil Procedure (Maharashtra Amendment) Act, 1977.
      Disposing of the matters, the Court
       HELD: 1.1 Though, various contentions have been raised
on the merits of the matter, in view of the change in the law and
                                                                       B
deletion of Section 9A of the Code (in its application to the State
of Maharashtra) and the judgment of the Supreme Court in Nusli
Veville Wadia v. Ivory Properties & Ors. (2019) 13 SCALE 620, it
is not necessary to consider the merits of the contentions. The
State of Maharashtra inserted Section 9A to the Code of Civil
Procedure vide Code of Civil Procedure (Maharashtra                    C
Amendment) Act, 1977. Section 9A provided that where an
application has been made for granting or setting aside an order
granting interim relief in a suit, if either of the party challenged
the jurisdiction of the Court to entertain the suit, the Court
would have to decide the preliminary issue of jurisdiction before      D
deciding the aforesaid application. The amended Section 9A
came to be repealed by CPC Maharashtra (Amendment)
Ordinance 2018 with effect from 27.06.2018 and Section 9A of
the Code (in its application to the State of Maharashtra) was
deleted by Section 3 of the Ordinance. The above Ordinance was
replaced by the Code of Civil Procedure (Maharashtra                   E
Amendment) Act, 2018 on 29.10.2018. It was provided that the
preliminary issues framed under Section 9A shall be treated as
an issue under Order XIV CPC and be decided by the courts
with other issues as the court may deem fit. On 15.12.2018,
the State of Maharashtra enacted the Code of Civil Procedure           F
(Maharashtra Amendment) Act, 2018 which provided for a saving
clause. Section 2 of the Amendment Act provided that if the
court has ordered to decide an issue as a preliminary issue
before the date of deletion of Section 9A, it shall be decided by
the court as a preliminary issue. After repeal of Section 9A,
                                                                       G
because of divergent views, in Foreshore Cooperative Housing
Society Limited v. Praveen D. Desai (Dead) Through Legal
Representatives and Others (2015) 6 SCC 412 and Kamalakar
Eknath Salunkhe v. Baburav Vishnu Javalkar and Ors. (2015) 7
SCC 321, Section 9A as it stood came up for consideration before
the three Judges Bench in (2019) 13 SCALE 620. In view of the          H
398           SUPREME COURT REPORTS                    [2019] 15 S.C.R.


A     said judgment passed by the Hon’ble Three Judges Bench, the
      question of limitation will have to be considered along with other
      issues that would arise for adjudication in Suit No.2410 of 2008
      filed by respondent No.1. The trial in the Suit No.IV-2410 of 2008
      has to be proceeded independently on its own merits. In view
B     of the judgment by the Three Judges Bench, the decision
      rendered by the learned Single Judge as well as by the Division
      Bench on the issue of limitation by considering that as
      preliminary issue would become nullity and the matter would
      have to proceed afresh. [Paras 15-17, 19] [403-F-H; 404-A-E;
      406-D-E]
C
            1.2 Directions and observations: (i) The order dated
      16.03.2017 passed by the learned Single Judge in Suit No. 2410
      of 2008 and the order dated 08.08.2019 (corrected on
      19.09.2019) passed by the Division Bench in Commercial Appeal
      No. 148 of 2017 arising out of Suit No. 2410 of 2008 are set
D     aside. (ii) Suit No.2410 of 2008 filed by respondent No.1 shall
      proceed afresh from the stage of framing of the issues. The
      question of limitation to be determined along with other issues
      arising for consideration. The suit shall be proceeded without
      being influenced by any of the views expressed by the learned
E     Single Judge as well as by the Division Bench of the High Court
      in the impugned judgment. (iii) Respondent No.1 is at liberty to
      request the Court to take up their pending applications and the
      learned Court shall consider them on their own merits. (iv) The
      learned Single Judge is requested to take up the Suit No.2410
      of 2008 filed by respondent No.1 and proceed with the same
F     expeditiously and dispose the same preferably within a period
      of 18 months. (v)It is made clear that no opinion has been
      expressed on the merits of the matter. [Para 20] [406-F-H; 407-
      A-C]
      SPECIAL LEAVE PETITION (CIVIL) NO. 26642 OF 2019
G
             1.3 Consequently, in view of the order passed in Civil
      Appeal arising out of SLP(C)No.25341 of 2019, this special leave
      petition is also disposed of. [Para 20] [407-D]
           Nusli Veville Wadia v. Ivory Properties & Ors. (2019)
H          13 SCALE 620 – relied on.
     SHYAM MADAN MOHAN RUIA & ORS. v. MESSER                           399
            HOLDINGS LIMITED & ORS.

      Messer Holdings Ltd. v. Shyam Madanmohan Ruia &                  A
      Others (2016) 11 SCC 484 : [2016] 5 SCR 1 ;
      Foreshore Cooperative Housing Society Limited v.
      Praveen D. Desai (Dead) Through Legal
      Representatives and others (2015) 6 SCC 412 : [2015]
      5 SCR 1075 ; Kamalakar Eknath Salunkhe v. Baburav
                                                                       B
      Vishnu Javalkar and Ors. (2015) 7 SCC 321 –
      referred to.
                      Case Law Reference
[2016] 5 SCR 1                    referred to          Para 10
(2019) 13 SCALE 620               relied on            Para 15         C
[2015] 5 SCR 1075                 referred to          Para 17
(2015) 7 SCC 321                  referred to          Para 17
      CIVIL APPELLATE JURISDICTION : Civil Appeal No. 9429
of 2019.                                                               D
      From the Judgment and Order dated 08.08.2019/19.09.2019 of
the High Court of Judicature at Bombay in Commercial Appeal No.
148 of 2017 in Suit No. 2410 of 2008.
      With
                                                                       E
      S.L.P.(Civil) No. 26642 of 2019.
      Fali S. Nariman, Dr. A.M. Singhvi, S. Ganesh, Dhurv Mehta,
Sr. Advs., Mrs. Shally Bhasin, Ms. Mohna, Ms. Geetali Talukdar,
Ms. Anushka Arora, Ms. Madhavi Khanna, Sreegesh N.K., Ms. Aruna
Gupta, Advs. for the appearing parties.
                                                                       F
      The Judgment of the Court was delivered by
      R. BANUMATHI, J.
      1. Leave granted in SLP(C) No.25341 of 2019.
       2. Being aggrieved by the order dated 08.08.2019 as corrected
                                                                       G
by order dated 19.09.2019 passed by the Division Bench of the High
Court of Bombay in Commercial Appeal No.148 of 2017 in Suit No.2410
of 2008 in and by which the Division Bench has reversed the order of
the Learned Single Judge dated 16.03.2017 by holding that the Suit
No.2410 of 2008 filed by respondent No.1- MHL is within the period
of limitation, the appellants are before this Court in this appeal.    H
400            SUPREME COURT REPORTS                          [2019] 15 S.C.R.


A            3. On the first date of hearing, Mr. Fali S. Nariman, learned senior
      counsel appearing for the appellants-Ruias sought permission to amend
      the synopsis and also grounds of appeal. By the order dated 13.11.2019,
      the same was permitted.
            4. When the matter came up for admission, Ms. Aruna Gupta,
B     learned counsel for respondent No.1 who is contesting respondent, has
      taken notice. The first respondent was represented by learned Senior
      counsel Mr. Dhurv Mehta.
            5. For hearing, the matter was adjourned to number of dates and
      taken up on 13.12.2019. We have heard Mr. Fali S. Nariman, Mr. S.
C     Ganesh and Dr. A.M. Singhvi, learned senior counsel appearing on
      behalf of the appellants as well as Mr. Dhruv Mehta, learned senior
      counsel appearing on behalf of the respondent no.1 along with Mr.
      Sreegesh N.K. learned counsel.
            6. For convenience, the parties are referred in abbreviated form:
D     Appellants – Ruias; Respondent No.1 - Messer Holdings Limited
      (MHL); Respondent No.2 – Bombay Oxygen Investments Ltd. (BOIL);
      Respondent No.3 - Messers Giresheim GmbH (MGG) and Respondent
      No.4 – Goyal MG Gases Private Limited (GGL).
             7. The contesting parties have had several rounds of litigations:-
E     (i) Civil Suit No.I - 1810 of 1998 filed by respondent no. 4 - GGL against
      respondent No.3 (MGG); (2) Suit No.II – 2499 of 1999 filed by the
      appellants-Ruias against respondent No.3(MGG) and respondent
      No.4(GGL); (3) Suit No.III - 509 of 2001 filed by the appellants-Ruias
      against respondent No.4 (GGL) and respondent No.3(MGG) and (4)
      Suit No.IV - 2410 of 2008 filed by respondent No.1(MHL) with which
F     we are concerned.
            8. In Suit No.III – 509 of 2001, Ruias and MGG (respondent
      No.3) entered into a settlement on 05.12.2002 wherein MGG
      (respondent No.3) is purported to have transferred 75,001 shares of
      BOIL(respondent No.2) and Ruias is purported to have agreed to pay
G     US$ 154.642 etc. for those 75,001 shares of BOIL (respondent No.2).
      It is stated that parties thereon viz Ruias(appellant) and
      MGG(respondent No.3) have agreed that in view of the settlement,
      Ruias would not prosecute the proceedings against respondent No.3
      (MGG); but they would pursue their proceedings against respondent
H     No.1(MHL) and respondent No.4(GGL).
      SHYAM MADAN MOHAN RUIA & ORS. v. MESSER                                401
       HOLDINGS LIMITED & ORS. [R. BANUMATHI, J.]

      9. Respondent No.1-MHL filed the Suit No.IV - 2410 of 2008             A
to cancel the said Settlement Agreement dated 05.12.2002 under which
75,001 shares of respondent No.2(BOIL) has been transferred to the
appellant(s)- Ruias by respondent No.3 (MGG). In Suit No.IV, MHL
(respondent No.1) inter alia prayed for injunction against the
development agreement dated 04.02.2008 granting development rights           B
to one Company by name HDIL and for declaration of MHL-
respondent No.1’s ownership of 75,001 shares of BOIL (respondent
No.2) and other reliefs.
      10. The dispute between the parties had also travelled up to
Supreme Court and this Court decided the matter in the case of Messer        C
Holdings Ltd. v. Shyam Madan Mohan Ruia & Others reported in
(2016) 11 SCC 484. Considering the contentions of the parties, and
observing that rights of parties are to be established in Suit No. IV, in
paras (38), (44) and (45), the Supreme Court held as under:-
      “38. The existence of title in MGG in the said 75,001 shares           D
      cannot be disputed by either GGL or MHL, at least, till the date
      of the consent award i.e. 21-9-2000 because GGL and MHL’s
      claim for title over the said shares flows from MGG’s prior title
      and the subsequent alleged transfer pursuant to the consent
      award. In such a case, because of MGG’s purported transfer of
                                                                             E
      the title in the 75,001 shares to the Ruias under the settlement
      dated 5-12-2002, the Ruias should normally be entitled to have
      their names entered into the records of BOCL as holders of the
      said shares by following appropriate procedure. If either GGL
      or MHL is objecting to the right of MGG to effect the said
      transfer in favour of the Ruias, they must establish a superior        F
      title (to MGG) in the said shares. It goes without saying that it
      can be done only in some legal action initiated by either GGL or
      MHL or both jointly. But they cannot seek a declaration of their
      title in Suits II and III filed by the Ruias. In a bid to establish
      their title MHL filed Suit IV19. The right of MHL, if any, will        G
      have to be decided in the said suit. Until the said suit is decided,
      we do not see any ground in law on which either GGL or MHL
      can object to the transfer of the shares in favour of the Ruias
      pursuant to the settlement dated 5-12-2002.
      ……….                                                                   H
402            SUPREME COURT REPORTS                       [2019] 15 S.C.R.


A           44. However, in the absence of any legally established title as
            on today to the abovementioned shares in any party other than
            MGG, whether the Ruias would be entitled, pursuant to the
            settlement dated 5-12-2002, to have their names entered into the
            registers of BOCL as holders of the said shares is a matter for
            the Ruias to explore. However, such an entitlement, if any, should
B
            be subject to the result of Suit IV.
            45. We make it clear that we are not deciding by this order, the
            existence or otherwise of any right or its enforceability in the
            75,001 shares of BOCL in favour of either MHL or GGL. It is
            open to them to establish their right in Suit IV. The defendants
C
            in Suit IV are at liberty to raise every defence available in law
            and fact to them.”
             11. In Suit No. IV-2410 of 2008 filed by respondent No.1 (MHL),
      the appellants filed affidavit under Section 9A CPC (Maharashtra
      Amendment) raising preliminary issue of limitation by contending that
D
      the suit prayers (q), (r), (s), (t), (u) and (v) in respect of claiming
      ownership over the 75,001 shares of BOIL (respondent No.2) by MHL
      (respondent No.1) is barred by limitation as the Settlement Agreement
      between the appellants – Ruias was entered into on 05.12.2002 and
      the Suit No. IV- 2410 of 2008 filed by respondent No.1(MHL) has been
E     filed in the year 2008 which is clearly barred by limitation. Respondent
      No.1(MHL) contested the said affidavit by contending that MHL
      (respondent No.1) was kept in dark about the settlement dated
      05.12.2002 between the Ruias and MGG (respondent No.3) and that
      the same came to their knowledge only on 14.10.2005 when they were
      handed over the copy of the settlement agreement dated 05.12.2002.
F
      Respondent No.1 further contended that the suit filed by respondent
      No.1 was within the period of limitation as they came to know about
      the Settlement only on 14.10.2005.
             12. By the order dated 16.03.2017, the learned Single Judge
      allowed the petition filed by the appellants-Ruias by holding that
G
      respondent No.1 (MHL) is a stranger to the Settlement dated
      05.12.2002. Learned Single Judge held that the cause of action arose
      to respondent No.1 (MHL) way back on 24.08.2002 when respondent
      No.1-MHL was impleaded as defendant in Suit No.2499 of 1999 in
      which MHL came to be impleaded as the defendant as per Chamber
H     Summons No.455 of 2002 dated 04.10.2002. Learned Single Judge held
      SHYAM MADAN MOHAN RUIA & ORS. v. MESSER                                 403
       HOLDINGS LIMITED & ORS. [R. BANUMATHI, J.]

that by virtue of Chamber Summons an order passed thereon,                    A
respondent No.1 had knowledge that the appellants are claiming title
of the shares in dispute even in the year 2002 and the receipt of copy
of the settlement agreement dated 05.12.2002 on 14.10.2015 was
immaterial. It was held that respondent No.1 (MHL) approached the
Court only in the year 2008 by filing the Suit No.2410 of 2008 and
                                                                              B
therefore, the suit filed by respondent No.1 (MHL) is barred by
limitation.
       13. Being aggrieved by the order of the learned Single Judge,
respondent No.1 (MHL) filed Commercial Appeal before the Division
Bench of Bombay High Court. The Division Bench vide its impugned
order set aside the order passed by the learned Single Judge by holding       C
that the right to sue occurred to respondent No.1 on 14.10.2005 when
the copy of the Settlement Agreement dated 05.12.2002 between
respondent No.3 (MGG) and the appellants-Ruias was supplied to
respondent No.1(MHL). The Division Bench held that since respondent
No.1 had knowledge of the Settlement only on 14.10.2005, the suit filed       D
by MHL-respondent No.1 in the year 2008 is well within the period of
three years from the date of knowledge of the Agreement and, therefore,
the suit is within the period of limitation. The Division Bench directed
the suit to proceed in respect of all other prayers made in the suit. Being
aggrieved, the appellants-Ruias have preferred this appeal.
                                                                              E
       14. We have heard the submissions of learned Senior counsel
appearing for the appellant and learned Senior counsel appearing for
the first respondent. We have considered the impugned judgment and
perused the materials on record.
        15. Though, various contentions have been raised on the merits        F
of the matter, in view of the change in the law and deletion of Section
9A of the Code (in its application to the State of Maharashtra) and the
judgment of the Supreme Court in Nusli Veville Wadia v. Ivory
Properties & Ors. (2019) 13 SCALE 620, we are of the opinion that
it is not necessary to consider the merits of the contentions. Suffice to
refer to the change in the law and the interpretation given by this Court.    G
        16. The State of Maharashtra inserted Section 9A to the Code
of Civil Procedure vide Code of Civil Procedure (Maharashtra
Amendment) Act, 1977. Section 9A provided that where an application
has been made for granting or setting aside an order granting interim
relief in a suit, if either of the party challenged the jurisdiction of the   H
404             SUPREME COURT REPORTS                         [2019] 15 S.C.R.


A     Court to entertain the suit, the Court would have to decide the
      preliminary issue of jurisdiction before deciding the aforesaid application.
      The amended Section 9A came to be repealed by CPC Maharashtra
      (Amendment) Ordinance 2018 with effect from 27.06.2018 and Section
      9A of the Code (in its application to the State of Maharashtra) was
      deleted by Section 3 of the Ordinance. The above Ordinance was
B
      replaced by the Code of Civil Procedure (Maharashtra Amendment)
      Act, 2018 on 29.10.2018. It was provided that the preliminary issues
      framed under Section 9A shall be treated as an issue under Order XIV
      CPC and be decided by the courts with other issues as the court may
      deem fit. On 15.12.2018, the State of Maharashtra enacted the Code
C     of Civil Procedure (Maharashtra Amendment) Act, 2018 which provided
      for a saving clause. Section 2 of the Amendment Act provided that if
      the court has ordered to decide an issue as a preliminary issue before
      the date of deletion of Section 9A, it shall be decided by the court as
      a preliminary issue.
D           17.After repeal of Section 9A, because of divergent views, in
      Foreshore Cooperative Housing Society Limited v. Praveen D.
      Desai (Dead) Through Legal Representatives and others (2015) 6
      SCC 412 and Kamalakar Eknath Salunkhe v. Baburav Vishnu
      Javalkar and Ors. (2015) 7 SCC 321, Section 9A as it stood came
      up for consideration before the three Judges Bench of this Court in
E     (2019) 13 SCALE 620(supra). The divergent views which led to
      consideration by the larger Bench is as under:
            “The reference has been made by a Division Bench of this Court
            vide order dated 17.8.2015, doubting the correctness of the
            decision of this Court in Foreshore Cooperative Housing Society
F           Limited v. Praveen D. Desai (Dead) through Legal
            Representatives and others, (2015) 6 SCC 412 with respect to
            the interpretation provisions contained in Section 9A of the Code
            of Civil Procedure, 1908 (for short, ‘the CPC’) as inserted by
            the Maharashtra Amendment Act, 1977. It has been opined that
G           the word “jurisdiction” under Section 9A is wide enough to include
            the issue of limitation as the expression has been used in the
            broader sense and is not restricted to conventional definition under
            pecuniary or territorial jurisdiction, the decision in Kamalakar
            Eknath Salunkhe v. Baburav Vishnu Javalkar and Ors., (2015) 7
            SCC 321, taking contrary view, is per incuriam in view of the
H           larger Bench decision in Pandurang Dhondi Chougule and Ors.
      SHYAM MADAN MOHAN RUIA & ORS. v. MESSER                                 405
       HOLDINGS LIMITED & ORS. [R. BANUMATHI, J.]

      v. Maruti Hari Jadhav and Ors, AIR 1966 SC 153 as well as               A
      other larger Bench decisions”.
      18. After considering the various judgments and the submissions,
the Supreme Court summarized the conclusion and held as under:
      “77(a) Given the discussion above, we are of the considered
      opinion that the jurisdiction to entertain has different connotation    B
      from the jurisdictional error committed in exercise thereof. There
      is a difference between the existence of jurisdiction and the
      exercise of jurisdiction. The expression jurisdiction has been used
      in CPC at several places in different contexts and takes colour
      from the context in which it has been used. The existence of            C
      jurisdiction is reflected by the fact of amenability of the judgment
      to attack in the collateral proceedings. If the court has an inherent
      lack of jurisdiction, its decision is open to attack as a nullity.
      While deciding the issues of the bar created by the law of
      limitation, resjudicata, the Court must have jurisdiction to decide
                                                                              D
      these issues. Under the provisions of section 9A and Order XIV
      Rule 2, it is open to decide preliminary issues if it is purely a
      question of law not a mixed question of law and fact by recording
      evidence. The decision in Foreshore Cooperative Housing Society
      Limited (supra) cannot be said to be laying down the law
      correctly. We have considered the decisions referred to therein,        E
      they are in different contexts. The decision of the Full Bench of
      the High Court of Bombay in Meher Singh (supra) holding that
      under section 9A the issue to try a suit/jurisdiction can be decided
      by recording evidence if required and by proper adjudication, is
      overruled. We hold that the decision in Kamlakar Shantaram
                                                                              F
      (supra) has been correctly decided and cannot be said to be per
      incuriam, as held in Foreshore Cooperative Housing Society
      Limited (supra).
      77.(b) Section 2 of Maharashtra Second Amendment Act, 2018
      which provides that where consideration of preliminary issue
                                                                              G
      framed under section 9A is pending on the date of
      commencement of the CPC, the said issue shall be decided and
      disposed of by the court under section 9A as if the provision under
      section 9A has not been deleted, does not change the legal
      scenario as to what can be decided as a preliminary issue under
      section 9A, CPC, as applicable in Maharashtra. The saving               H
406            SUPREME COURT REPORTS                         [2019] 15 S.C.R.


A           created by the provision of section 2 where consideration of
            preliminary issue framed under section 9A is pending on the date
            of commencement of the Code of Civil Procedure (Maharashtra
            Amendment) Act, 2018, can be decided only if its comes within
            the parameters as found by us on the interpretation of section
            9A. We reiterate that no issue can be decided only under the
B
            guise of the provision that it has been framed under Section 9A
            and was pending consideration on the date of commencement
            of the (Maharashtra Amendment) Act, 2018. The reference is
            answered accordingly. [underlining added]
            Let the matters be placed before an appropriate Bench for
C
            consideration on merits”.
             19. In view of judgment passed by the Hon’ble Three Judges
      Bench reported in 2019 (13) SCALE 620 – Nusli Veville Wadia vs.
      Ivory Properties & Ors., the question of limitation will have to be
      considered along with other issues that would arise for adjudication in
D
      Suit No.2410 of 2008 filed by respondent No.1 (MHL). Certain
      observations have been made by the learned Single Judge as well as
      by the Division Bench on the merits of the matter and the contention
      of the parties. In our view, the trial in the Suit No. IV-2410 of 2008
      has to be proceeded independently on its own merits. In view of the
E     judgment by the Three Judges Bench, the decision rendered by the
      learned Single Judge as well as by the Division Bench on the issue of
      limitation by considering that as preliminary issue would become nullity
      and the matter would have to proceed afresh.
            20. The appeal is disposed of with the following directions and
F     observations:
              (i) The order dated 16.03.2017 passed by the learned Single
                  Judge in Suit No. 2410 of 2008 and the order dated
                  08.08.2019 (corrected on 19.09.2019) passed by the
                  Division Bench in Commercial Appeal No. 148 of 2017
G                 arising out of Suit No. 2410 of 2008 are set aside.
              (ii) Suit No.2410 of 2008 filed by respondent No.1 shall
                   proceed afresh from the stage of framing of the issues.
                   The question of limitation to be determined along with other
                   issues arising for consideration. The suit shall be proceeded
H                  without being influenced by any of the views expressed
       SHYAM MADAN MOHAN RUIA & ORS. v. MESSER                                407
        HOLDINGS LIMITED & ORS. [R. BANUMATHI, J.]

               by the learned Single Judge as well as by the Division         A
               Bench of the High Court in the impugned judgment.
        (iii) Respondent No.1 is at liberty to request the Court to take
              up their pending applications and the learned Court shall
              consider them on their own merits.
        (iv) We request the learned Single Judge to take up the Suit          B
             No.2410 of 2008 filed by respondent No.1 (MHL) and
             proceed with the same expeditiously and dispose the same
             preferably within a period of 18 months.
        (v) We make it clear that we have not expressed any opinion
            on the merits of the matter.                                      C

       SPECIAL LEAVE PETITION (CIVIL) NO. 26642 OF
2019
      Consequently, in view of the order passed in Civil Appeal arising
out of SLP(C)No.25341 of 2019, this special leave petition is also            D
disposed of.


Divya Pandey                                           Matters disposed of.


                                                                              E




                                                                              F




                                                                              G




                                                                              H


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