09 November 2000
Supreme Court
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GURDIT SINGH (DEAD) THROUGH LRS. & ORS. Vs NIRMAL SINGH & ANR.


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PETITIONER: GURDIT SINGH (DEAD) THROUGH LRS. & ORS.

       Vs.

RESPONDENT: NIRMAL SINGH & ANR.

DATE OF JUDGMENT:       09/11/2000

BENCH: A.P. Misra, & N. Santosh Hegde,

JUDGMENT:

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SANTOSH HEGDE, J.

Leave granted.

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   Being  aggrieved  by the judgment of the High  Court  of Punjab  &  Haryana  at Chandigarh dated  16.3.1999  made  in E.S.A.   No.1720/98, the appellants have preferred the above noted  appeals.  Brief facts necessary for disposal of these appeals are as follows :-

   Originally  the suit lands belonged to Gobind Mal,  Brij Lal, Vassan Mal and Baldev Singh.  Their attorneys sold part of the lands owned by the abovesaid persons in favour of one Smt.   Yashodha Bai and Raj Rani by means of two sale-deeds. The  said Yashodha Bai and Raj Rani agreed to sell the  said property in favour of Inder Singh and Gurdit Singh by way of two  sale  agreements.   On failure of the  said  ladies  to complete  the sale deeds, said Inder Singh and Gurdit  Singh (predecessors-in-interest  of the present appellants  herein after  to be referred to as the appellants) filed two  suits for  specific  performance  of   their  agreements.   Almost simultaneously,  the respondents herein also filed two suits claiming  to be the purchaser of the suit lands against Ambi Bai,  widow of Gobind Mal and Yashodha Bai.  The trial court viz.,  Subordinate  Judge,  Kapurthala, dismissed  both  the suits  of  the respondents and the suits of  the  appellants were  decreed, and the appellants obtained the sale deeds in regard  to  the  suit  lands   executed  through  the  Court Commissioner.   The respondents herein, however,  challenged the said decree of specific performance granted in favour of the  appellants by way of an appeal before a learned  Single Judge  of  the High Court of Punjab & Haryana.  The  learned Single  Judge  who heard the appeal, allowed the appeal  and set  aside the judgments decrees in favour of the appellants holding  the  original plaintiffs in whose favour the  trial court  granted  the  decree, were not ready and  willing  to perform  their  part of the contract.  Thus, the decrees  of the  trial court in those suits came to be reversed and  the suits  dismissed.   The  plaintiffs  in  those  proceedings, namely,  the present appellants filed Letters Patent Appeals before  the  Division  Bench of the said High  Court  which, while  allowing  the Letters Patent Appeal partly, held  the

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claim of the appellants in regard to the share of Gobind Mal cannot  be sustained, hence, rejected and dismissed the suit in  regard to the share of Gobind Mal since the attorney  of Gobind  Mal had entered into the agreement of sale after the said Gobind Mal had died.  Therefore, the appellants did not derive any title from the agreement executed by the attorney of  Gobind  Mal,  however, their claim for the rest  of  the property was decreed.

   After the judgment in the L.P.A., the respondents herein moved  application  for  restitution urging that  since  the decree  which  was executed in favour of the  appellants  is modified  to the extent of Gobind Mals share, there  should be restitution as contemplated under Section 144 of the Code of  Civil  Procedure  to  that extent and  they  be  put  in possession  of  that part of the suit property.   The  trial court  and  the  lower appellate court  dismissed  the  said application  holding  that the respondents did not have  the locus  standi  to make/maintain the said  application  since their  claim to the suit land including that of Gobind Mals share  was  rejected  by the dismissal of  their  suit.   In appeal,  the High Court by the impugned order, has held that the  respondents being the purchasers of the share of Gobind Mal  and having purchased the same from the widow Ambi  Bai, they  have  the locus standi to make the  application  under Section  144  C.P.C.  It also held that said Ambi Bai  never challenged  the  sale made by her in regard to the share  of Gobind Mal on any ground much less that the same was without consideration.   Therefore, on the reversal of the  judgment and decree, the law cast an obligation on the parties to the suit  who received the benefit of the erroneous judgment  to make restitution to the other party for what it had lost and further  held  that it is the duty of the court  to  enforce that  obligation.  On this basis, it directed the remand  of the  case  to the Executing Court to determine the share  of Gobind  Mal  in  the suit land and the  proportionate  price thereof  and on such determination, the appellants before it i.e.   the  respondents before us be asked to  deposit  such determined  amount and thereafter the Executing Court should pass  orders in regard to the corrections to be made in  the sale  deed to that extent, and consequential corrections  in the  registered  documents and the revenue records be  made. However,  the  High  Court  rejected   the  prayer  of   the respondents  for possession on the ground that they were not dispossessed pursuant to the reversed decree.

   In  these  appeals,  the  appellants  contend  that  the respondents  having failed in their suits, it is not open to them  to  file an application for restitution  because  they have no right or title even in regard to the share of Gobind Mal  in  the suit land.  They contend that the claim of  the respondents  is  barred  by the principle of  res  judicata, hence,  the  High  Court was wrong in interfering  with  the findings of the courts below.

   Per  contra,  on  behalf  of   the  respondents,  it  is contended that the modification of the decree by the Letters Patent  Bench was done at the instance of these  respondents who   had  preferred  the   said  Letters  Patent   Appeals. Consequently, the said modified judgment became inter-partes hence  to effectuate the modification of the decree, it  had become  necessary  for  the respondents herein  to  move  an application  for  restitution hence such an application  was maintainable by them.  They also justify the observations of the  High Court made in their favour as to the purchase of a

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suit  property by them from Gobind Mals widow Ambi Bai,  so also  the  directions  given  by the High Court  as  to  the deposit  of the consideration amount equivalent to the share of Gobind Mal in the suit property, by them.  They contended that  it  is  the interest of equity and justice  that  such directions,  as  has  been  given  by  the  High  Court,  be maintained.   They also contended that they are entitled  to be  put in possession of the land equivalent to the share of Gobind Mal.

   We  have  carefully  considered  the  arguments  of  the parties.  From the narration of the facts noted hereinabove, it is clear that neither Yashodha Bai, Raj Rani nor Ambi Bai widow  of  Gobind  Mal  has   taken  any  interest  in  this litigation.   It  was  a  dispute   inter  se  between   the appellants  and  respondents herein.  When  the  appellants suit  was  decreed,  it  was   the  respondents  herein  who challenged  the  said  decree inspite of their  suits  being dismissed  and got the decree of the trial court reversed by the  Single  Judge of the High Court.  Thereafter, when  the LPA  was  preferred  before the High Court, it is  only  the respondents  herein  who  were parties to the  said  appeal. Therefore,  it  could  be said that learned  Single  Judges judgment dismissing the suit and the judgment of the Letters Patent  Bench  modifying the decree of the trial court  were done  in  the  proceedings to which the appellants  and  the respondents alone were parties.  Therefore, such proceedings should  be  deemed  to  be inter partes.   Hence,  there  is substantial  force  in the argument of the respondents  that since  the  ultimate decree of the Letters Patent Bench  was made  in  a proceeding to which they alone were parties,  an application on their behalf for restitution to the extent of modified  decree  must be held to be maintainable  on  their behalf  because  they  are the other party  referred  to  in Section 144 of the C.P.C.

   It  is to be noted that neither in the appeal before the Single  Judge  nor in the Letters Patent Appeal  before  the Letters  Patent  Bench,  it was ever  contended  that  these respondents  have no interest in the suit lands since  their suits  were dismissed, nor was it contended the  proceedings initiated  by  them  ought  to be  dismissed  as  being  not maintainable.  In the said proceedings both Single Bench and the  Appellate Bench accepted these respondents as necessary parties  and  it  is at their instance  the  judgments  were delivered  in those proceedings.  Therefore, it is trite  to say  for  the purpose of getting the modification of  decree pursuant  to  the judgment of the Letter Patent Bench  these respondents  would  become stranger to the proceedings.   We agree  with  the High Court that the respondents are  proper parties  to  move the restitution application to  bring  the original  decree  in  conformity with the  judgment  of  the Letters Patent Bench.  That is to the extent of deleting the share of Gobind Mal from the registered sale deed and making necessary  consequential  changes  in   the  other  relevant documents.  In this regard, it is worthwhile to refer to the observations  of  this Court in the case of Lala  Bhagwandas vs.  Lala Kishen Das, 1953 SCR 559 wherein this Court held:

   It  is the duty of the Court to enforce that obligation unless  it  is  shown  that  restitution  would  be  clearly contrary to the real justice of the case.

   In  the  instant case, when it is established  that  the

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appellants  did  not  have right title or  interest  in  the property  falling to the share of Gobind Mal, the benefit so obtained  by them by the judgment which is reversed must  be changed  to that extent by bringing necessary changes in the original  decree.   This is because of the principle of  the doctrine  of restitution that on the reversal of a decree in appeal,  the  law imposes an obligation on the party to  the suit  who  received the benefit of the erroneous  decree  to make  restitution  to the other party for what it had  lost. Such  obligation  arises  automatically on the  reversal  or modification  of the decree from which a party has  obtained certain benefits.  In the instant case, we have already held that the respondents will be the other party as contemplated under  Section  144  of CPC though not for  the  purpose  of getting  their right established in the suit property but to the extent of seeing that the appellants did not get a title to  the share of Gobind Mal which they obtained by virtue of the  erroneous  decree  which  later came  to  be  reversed. Therefore, we are in agreement with the judgment of the High Court that the Executing Court should determine the share of Gobind  Mal and its value and thereafter carry out necessary corrections  in  the  sale deed executed in  favour  of  the appellants  by  virtue of the decree of the trial court  and also  make  necessary  changes  in  the  concerned   records including that of the revenue records.

   By  this,  we  do  not hold that  the  respondents  have established  any  title to the share of Gobind Mal  nor  are they  entitled to seek restitution of the possession of that share  of  property because as per the finding of  the  High Court,  with which we agree, these respondents have not been dispossessed  by  virtue of that decree.  The title  to  the share of Gobind Mal and entitlement to possess the same will have  to be left open to be adjudicated in other proceedings if  any.   For the reasons stated above, these appeals  fail and are dismissed.

SLP©Nos.18813-14/99,Cont.P.©Nos. 196-97/2000 in SLP©Nos.10616-17/99)

   In   view   of   our   judgment  rendered   in   C.A.@ SLP©No.10616-17/99,   these  Special   Leave  Petitions         and Contempt  Petitions do not survive for consideration,  hence the same are also dismissed.