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Q.: What Is Decree and Deemed Decree? Explain Its Essential Element
Q.: What Is Decree and Deemed Decree? Explain Its Essential Element
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A. : Section 2(2) of the the Code defines 'decree'. It means the formal expression of
adjudication which, so for as regards the court expressing it, conclusively
determines the rights of the parties with regard to all or any of the matters in
controversy in the suit and may either be preliminary or final.
It shall be deemed to include the rejection of a plaint and the determination of
any question within Section 144, but shall not include –
(a) any adjudication from which an appeal lies as an appeal from an order, or
(b) any order of dismissal for default.
Essentials of Decree
Following are the essentials of a decree:-
1. ‘Adjudication’: For a decision of a court to be a decree, there must be an
adjudication, i.e., a judicial determination of the matter in dispute. A decision on the
matter of administrative nature cannot be termed as decree as it does not judicially
deal with matter in dispute.
2. Adjudication must be done in a suit: It is necessary for the decree that
adjudication must be in a 'suit'. The expression 'suit' is not defined in the Code. In
Hansraj Gupta v. Official Liquidator of Dehradun Mussorie Electric Tramway Co.
Ltd., AIR 1933 PC 63, the court defined ‘suit’ as a civil proceeding instituted by
presentation of a plaint.
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Similarly, in the case of State of U.P. v. Nawab Hussain, AIR 1977 SC 1680, ‘A’ a sub-
inspector of police was dismissed from service by D.I.G. He challenged the order of
dismissal on ground that no opportunity to hearing was given to him. The petition
was dismissed by High Court. He then filed a suit and raised additional ground that
since he was appointed by I.G., D.I.G. had no power to dismiss him as per Article
311(2) of the Constitution. When the matter went to Supreme Court in appeal, the
Hon’ble Court held that the suit was barred by constructive res judicata as the plea
was within knowledge of plaintiff and could well have been taken in earlier writ
petition.
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One of the essential ingredients of the principle of res judicata is that the
matter-in-issue in dispute in both the suit must be directly or substantially the
same. In Mathura Prasad v. Dossibai N.B. Jeejebhoy, AIR 1971 SC 2355 Supreme Court
observed that the expression ‘matter in issue’ means the rights litigated between
the parties, i.e., the facts on which the right is claimed and the law applicable to the
determination of that issue. Supreme Court in Isher Singh v. Sarwan Singh, AIR 1965
SC 948 held that the matter directly and substantially in issue in the former suit has
to be decided on the basis of pleadings in the former suit, issues involved therein
and the decision in the suit.
Conclusion: The matter-in-issue in the former suit was not of partition. It was for
possession of the property and no partition had been affected. The present suit is for
partition, matter-in-issue in issue in both the suits cannot be said to be directly and
substantially the same. Therefore, the subsequent suit is not barred by res judicata.
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(d) where the proceedings in which the judgment was obtained are opposed
to natural Justice;
(e) where it has been obtained by fraud;
(f) where it sustains a claim founded on a breach of any law in force in India.
In R. Viswanathan v. Rukn-ul-Mulk Syed Abdul Wajid, (1963) 3 SCR 22 the
Supreme Court held that in considering whether a judgment of a foreign court is
conclusive, the courts in India may not inquire whether conclusions recorded
thereby are supported by the evidence, or are otherwise correct, because the
binding character of the judgment may be displaced only by establishing that the
case falls within one or more of the six clauses of Section 13, and not otherwise.
In the present set of facts, wife W had no knowledge of the divorce proceedings
in USA because the notice was never served on her Indian address. Although,
technically notice was issued by the court but it was not to her Indian address. It can
be said that issuance of notice was a mere empty formality and it cannot be said to
be proper service of notice. Therefore, the entire proceedings were opposed to
natural justice and covered by Section 13(d).
Furthermore, even in case of ex parte judgment, it can be said to be on merits if
some evidence is adduced on behalf of the plaintiffs and the judgment, however,
brief, is based on a consideration of that evidence. Where however no evidence is
adduced on the plaintiff side and his suit is decreed merely because of the absence
of the defendant either by way of penalty or in a formal manner, the judgment may
not be one based on the merits of the case. In this manner the case also falls within
the trappings of Section 13(b).
Conclusion: On the basis of above discussion the judgment passed in favour of H in
US court is not conclusive and cannot be executed in India.
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Q.: S, a seller from Delhi enters into a contract for sale of goods with
the buyer B in Madras for supply of goods at Bombay. The invoice
which S sends to B has a line written on top of it “Subject to Delhi
jurisdiction” B files a suit against S for damages at Bombay. Discuss
the maintainability of the suit.
A. : Facts: S is running business at Delhi. He entered into a contract for sale of goods
with the buyer B in Madras. Goods where agreed to be supplied at Bombay. On the
top of the invoice words. ‘’Subject to Delhi jurisdiction” have been written. B files a
suit against S for damages at Bombay
Question involved: Whether the suit in Bombay is maintainable?
Law applied: The present set of facts deal with the issue of territorial jurisdiction
of the courts. Section 20 of the Code provides for all the cases not covered by any of
the Sections 16-19. All such suits may be filed at the plaintiff option in any of the
following court viz :
(a) Where the cause of action, wholly or partly arises; or
(b) Where the defendant resides or carries on business or personally works for
gain or
(c) Where there are two or more defendants, any of them resides or carries on
business or personally works for gain provided that in such a case either the
leave of court is obtained or the defendant who do not reside or carry on
business or personally work for gain at that place acquiesce in such
institution of suit
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Q.: Under which Section of CPC can a suit be transferred from one
court in a district to another court in some other district and which
is the competent court to order such transfer?
A. : Section 24 of the Code deals with general power of transfer and withdrawal. It
provides that the High Court or District Court, after hearing the parties, may, at any
stage:
(a) Transfer any suit or appeal or other proceedings pending before it for trial or
disposal to any court subordinate to it and competent to try or dispose of the
same.
(b) Withdraw any suit, appeal or other proceeding pending in any court sub-
ordinate to it and transfer the same for trial or disposal to any other
competent court sub-ordinate to it or retransfer the same for trial to the court
from which it was withdrawn.
The Supreme Court in Durgesh Sharma v. Jayshree, (2008) 9 SCC 648 held that
the power under Section 24 does not authorize a High Court to transfer any suit,
appeal etc from a court subordinate to that High Court to a court not subordinate to
that High Court under Section 23(3) or 24.
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Q.: When can the judgment-debtor be sent to civil prison for not
paying decreetal amount?
A. : Order 21 Rule 30 provides that a decree for payment of money can be executed
by arrest or detention of the judgment-debtor. Thus, the decree-holder has option
to opt for this mode for executing of decree passed in his favour.
However, in Jolly George Verghese v. Bank of Cochin, (1980) 2 SCC 360, the court
observed that mere default to discharge the decree is not enough to order arrest of
judgment debtor. There must be some element of bad faith or indifference to pay or
some deliberate disposition in past or current means to pay the decree or
substantial part of it.
Thus, when there is some deliberate omission or refusal on part of judgment-
debtor, arrest and detention may be ordered in accordance with the provisions laid
down in the Code.
When person cannot be sent to a civil prison
The Code provides for following instances when a person cannot be detained in
execution of a decree in civil prison :
1. When the decreated amount is less than Rs. 2,000 [Section 58 (1-A)].
2. When the judgment-debtor is a woman, judicial offices, etc. who is exempted
from arrest under various provisons of the Code.
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Q.: What are the conditions that must exist for making an application
for the execution of cross-decrees?
A. : Order 21 Rule 18 of the Code provides for execution in case of cross-decrees. It
provides that where applications are made to a court for the execution of cross-
decrees in separate suits for payment of two sums of money passed between the
same parties and capable of execution same time by such court, then–
(a) if the two sums are equal, satisfaction shall be entered upon both decrees;
(b) if the two sums are unequal, execution may be taken out only by the holder
of the decree for the larger sum and for so much only as remains after deducting
the smaller sum, and satisfaction for the smaller sum shall be entered on the
decree for the larger sum as well as satisfaction on the decree for the smaller
sum.
Rule 18(2) provides that this rule shall be deemed to apply where either party is an
assignee of one of the decrees and as well in respect of judgment-debts due by the
original assignor as in respect of judgment-debts due by the assignee himself. Rule
18(3) provides that this rule shall not be deemed to apply unless–
(a) the decree-holder in one of the suits in which the decrees have been made is the
judgment-debtor in the other and each party fills the same character in both suit;
(b) the sums due under the decrees are definite.
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Rule 18(4) provides that the holder of a decree passed against several persons
jointly and severally may treat it as a cross-decree in relation to a decree passed
against him singly in favour of one or more of such person. For example, A, B, C, D
and E are jointly and severally liable for Rs. 1,000 under a decree obtained by F. A
obtains a decree for Rs. 100 against F singly and applies for execution to the Court in
which the joint-decree is being executed. F may treat his joint-decree as a cross-
decree under this rule.
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(a) In case of suit against Central Government except where it relates to railway, a
Secretary to that Government.
(b) In case of suit against Central Government where it relates to railway, the
General Manager of that Railway.
(c) In case of suit against Government of State of Jammu & Kashmir, the Chief
Secretary to that Government or any other authorized officer of Government.
(d) In case of suit against State Government, a Secretary to that Government or
collector of the district.
(e) In case of public officer, to him.
Essentials of notice
Following are the essentials of notice under Section 80(1)-
(a) Name, description and place of residence of the person giving notice;
(b) Statement of the cause of action;
(c) Relief claimed by him.
The primary object of the notice under Section 80 is to afford an opportunity to
the Government or public officer to settle the claim put forward by the prospective
plaintiff and to avoid unnecessary litigation.
Consequence of non-issuance of notice: Provisions of Section 80 are mandatory
and must be strictly complied with. Failure to serve notice complying with the
terms of Section 80 will make the suit not maintainable. Section 80 uses the words
'no suit shall be instituted'. There is bar to the institution of suit without complying
with the terms of Section 80. In Prem Lal Nahata v. Chandi Prasad Sikaria, (2007) 2
SCC 551 Supreme Court held that plaint is liable to be rejected if the averments in
the plaint indicate the absence of notice.
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A. : Order 2 Rule 2 of the Code deals with the splitting of claims. It provides that every
suit must include the whole of the plaintiff's claim to which he is entitled in respect of
cause of action and if he omits to sue for or relinquishes any portion of his claim, he
shall not afterwards be allowed to sue in respect of portion so omitted or
relinquished. For example, A plaintiff who is entitled to sue for possession and
damages both, files for possession only. In such a case, he cannot bring second suit for
damages due to the bar under Order 2 Rule 2 of the code.
Object
The provision of Order 2 Rule 2 is based on the cardinal principle of law that a
defendant should not be vexed twice for the same cause. In Virgo Industries (Eng.) (P)
Ltd. v. Venturetech Solutions (P) Ltd., (2013) 1 SCC 625 Supreme Court held that the
object of this rule is to prevent multiplicity of proceeding by barring a second suit
based on same cause of action.
Essential conditions to invoke Order 2 Rule 2
Following are the essential conditions to which must be fulfilled in order to invoke
the bar of Order 2
Rule 2:-
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1. Same cause of action: The second suit must be proved to be in respect of same
cause of action as that on which the previous suit was based. The cause of action
means every fact which is necessary for the plaintiff to prove to support his claim or
right to the judgment. It has nothing to do with the defence set up by defendants or
character of relief prayed for the plaintiff [Mohd. Khalil v. Mahbub Ali, AIR 1949 PC
78)]. Such cause of action must be identical for raising the bar under Rule 2.
Supreme Court in Swamy Atmananda v. Sri Ramkrishna Tapovanam, (2005) 10
SCC 51 held that a cause of action means every fact, which if traversed, would be
necessary for the plaintiff to prove in order to support his right. It must include
some acts done by the defendant since in the absence of such no cause of action can
possibly accrue.
For example, where A sues B for rent for 1961 leaving the rent for 1962 and 1963
which was also due, and the suit is decreed, A cannot afterwards sue for rent of
three years since the cause of action is identical in both the suits.
2. One of several reliefs: The rule applies in case where the plaintiff is entitled to
more than one relief in respect of the same cause of action. For example, A sues for
damages for breach of contract and omits to claim a portion of damage, subsequent
suit for such portion is barred. In State of M.P. v. State of Maharashtra, AIR 1977 SC
1466 Supreme Court held that this rule will not apply if the right to relief claimed in
subsequent suit did not exist at the time of previous suit.
3. Leave of court: The bar under Order 2 Rule 2 operates only when the leave of
the court is not obtained. Therefore, if the omission to sue has been with the court’s
permission, the subsequent suit is not barred.
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For example, generally, where first suit is for mesne profit and second suit is for
possession based on same cause of action, the second is not maintainable. However,
if such omission to claim for possession is with the permission of court, the bar of
Order 2 Rule 2 will not apply. Supreme Court in Gurbux Singh v. Bhooralal, AIR 1964
SC 1810 held that defendant must prove all the above three conditions in order to
successfully raise the bar of Order 2 Rule 2.
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