Forfeiture of Earnest Money and Reasonable Compensation

Adv. Saji Koduvath 

What is Earnest-Money?

In law of contracts, earnest-money is the amount paid as advance in sale of a property and forms part of the purchase price when the transaction goes forward; and liable to be forfeited by the seller, in case the sale is failed owing to the fault of the purchaser.[1]  Section 74 of the Indian Contract Act holds the field.

Section 74 of the Indian Contract Act

A genuine pre-estimate of damages had been accepted in law of contracts, under the English Common Law. But, a penalty had not been enforced by common law courts, as it was a stipulation in terrorem.

Section 74 of the Indian Contract Act reads as under:

  • S. 74: “Compensation for breach of contract where penalty stipulated for: When a contract has been broken, if a sum is named in the contract as the amount to be paid in case of such breach, or if the contract contains any other stipulation by way of penalty, the party complaining of the breach is entitled, whether or not actual damage or loss is proved to have been caused thereby, to receive from the party who has broken the contract reasonable compensation not exceeding the amount so named or, as the case may be, the penalty stipulated for.”

Section 74 discusses two classes of cases:

  • a sum is named (or fixed) as the amount to be paid in case of breach; and,
  • any other stipulation by way of penalty.

Section 74 further says that, in both classes, a reasonable compensation alone will be entitled to by the party complaining of the breach.

Implication of ‘Reasonable Compensation’ in Section 74

Even if the parties to the contract have pre-estimated the damages to be paid by the defaulter on breach, the injured party cannot appropriate the pre-estimated damages, of his own; for, Sec. 74 stipulates that the party complaining of the breach is entitled, a ‘reasonable’ compensation alone. The implication of the word ‘reasonable’ is that the compensation is a matter always left to be determined by the appropriate court of law or other legal forum. It is found in Kailash Nath Vs. DD Authority (2015)[2] that the party complaining of a breach could receive as reasonable compensation such liquidated amount only if it is a genuine pre-estimate of damages fixed by both parties and found to be such by the Court.

‘Whether or Not Actual Damage or Loss is Proved’

Section 74 deals with matters ‘whether or not actual damage or loss is proved to have been caused’ by the breach. Divergent views prevail on this matter.

First: Reasonable earnest money does not fall within the ambit of Section 74.

Adopting the English Common Law principle as to pre-estimated damages (forfeiture of a reasonable/nominal earnest money, not amounting to penalty),it was held by the Supreme Court of India in Maula Bux Vs. Union of India (1970)[3] (1970) that ‘forfeiture of earnest money under a contract for sale of property, if the amount is reasonable, does not fall within Section 74’. That is, when the forfeiture clause in a contract refers to a nominal (thereby reasonable) sum alone, as earnest money, it does not provide for an ‘amount to be paid in case of such breach’, or amount to imposing a penalty.  In such cases of forfeiture of reasonable (nominal) earnest money, it is immaterial ‘whether or not actual damage or loss is proved’.

This view is not followed in subsequent decisions including Satish Batra Vs. Sudhir Rawal (2013)[4] and Kailash Nath Vs. DD Authority (2015).[5]

It is found in Kailash Nath that the observation in Maula Bux that forfeiture of earnest money, ‘if reasonable or nominal did not fall under Section 74’, was not on a matter that directly arose for decision in that case.It was so observed in Shree Hanuman Cotton Mills Vs. Tata Aircraft Limited[6]also that the decision in MaulaBux’s had no occasion to consider the question of reasonableness or otherwise of the earnest deposit being forfeited.

Nevertheless, it is a matter of common knowledge that, prior to a formal contract when parties join their mind to enter a contract, a token sum is paid to ensure that they would execute a contract. It is only legitimate to state that such a nominal ‘earnest’, prior to formal agreement, will not come under Sec. 74.

Second: where it is possible to prove damage, it must be proved.

The expression “whether or not actual damage or loss is proved to have been caused thereby” means that where it is possible to prove actual damage or loss in terms of money, such proof is not dispensed with; and it must be proved. Section 74, by this enabling clause, permits to award compensation in cases where it is difficult or impossible to prove damage or loss. In such cases the liquidated amount named in the contract, if a genuine pre-estimate of damage or loss, will be awarded.

This view is accepted in Kailash Nath Vs. DD Authority (2015).

Third: The Indian law brings-in a uniform principle.[7]  Section 74 applies to stipulations naming amounts to be paid in case of breach, and stipulations by way of penalty.  The court would award to the party aggrieved only reasonable compensation not exceeding the amount named or penalty stipulated. In Fateh Chand Vs. Balkishan Dass (1963)[8] it was observed that the ‘Legislature has sought to cut across the web of rules and presumptions under the English common law’ and the uniform principle is adopted. This proposition as to ‘reasonable’ compensation, and thereby the intervention of court to fix the reasonable amount, laid down in Section 74, is a deliberate deviation from the English Common Law which allows forfeiture of genuine pre-estimated damages, by the affected party.

The Constitution Bench of the Supreme Court, in Fateh Chand Vs. Balkishan Dass, further pointed out that an award of compensation would not be justified if no legal injury at all had been resulted in consequence of the breach.

These views are followed in Kailash Nath Vs. DD Authority (2015).

Important Decisions:

Fateh Chand Vs. Balkishan Dass (1963):

  • The Indian Legislature has sought to cut across the web of rules and presumptions under the English common law, by enacting a uniform principle applicable to all stipulations naming amounts to be paid in case of breach, and stipulations by way of penalty.
  • It does not justify the award of compensation when in consequence of the breach no legal injury at all has resulted, because compensation for breach of contract can be awarded to make good loss or damage which naturally arose in the usual course of things, or which the parties knew when they made the contract, to be likely to result from the breach.
  • The court has to adjudge in every case reasonable compensation to which the plaintiff is entitled from the defendant on breach of the contract. Such compensation has to be ascertained having regard to the conditions existing on the date of the breach.

The Attorney-General appearing on behalf of the defendant has not challenged the plaintiff’s right to forfeit Rs. 1,000/- which were expressly named and paid as earnest money.

Moula Bux Vs. Union of India (1970)[9]

  1. Forfeiture of earnest money under a contract for sale of property- movable or immovable-if the amount is reasonable, does not fall within Section 74.
  2. But if forfeiture is of the nature of penalty, Section 74 applies.
  3. The expression “whether or not actual damage or loss is proved to have been caused thereby” is intended to cover different classes of contracts which come before the Courts.
  4. In case of breach of some contracts it may be impossible for the Court to assess compensation arising from breach, while in other cases compensation can be calculated in accordance with established rules. Where the Court is unable to assess the compensation, the sum named by the parties if it be regarded as a genuine pre-estimate may be taken into consideration as the measure of reasonable compensation, but not if the sum named is in the nature of a penalty.
  5. Where loss in terms of money can be determined, the party claiming compensation must prove the loss suffered by him.

Two Extreme Divergent Views on ‘Pre-estimated’ Earnest Money

In Satish Batra Vs. Sudhir Rawal (2013)[10]our Apex Court had taken the view that entire earnest money could be forfeited by the seller if the contract was failed by the default of the purchaser. It is clear that their lordships proceeded substantially on the theory of ‘genuine pre-estimate of damages’ recognised under the English Common Law.

But, in a subsequent decision, Kailash Nath Associates Vs. Delhi Development Authority (2015)[11], Supreme Court accepted the law laid down in Fateh Chand’s case[12] that all pre-estimated stipulations fixing damages, including the earnest money, were covered by Section 74; and upheld the view that the pre-estimated damages, fixed by the parties, should be ‘found to be such by the Court’. That is, one party to the contract cannot enforce the forfeiture clause unilaterally, without recourse to court.

Kailash Nath Vs. DDA &  Section 74

In Kailash Nath (2015),[13] the Supreme Court categorically held in para 43 as under:

  • Where a sum is named in a contract as a liquidated amount payable by way of damages, the party complaining of a breach can receive as reasonable compensation such liquidated amount only if it is a genuine pre-estimate of damages fixed by both parties and found to be such by the Court.
  • In other cases where a sum is named in a contract as a liquidated amount payable by way of damages, only reasonable compensation can be awarded not exceeding the amount so stated.
  • Similarly, in cases where the amount fixed is in the nature of penalty, only reasonable compensation can be awarded not exceeding the penalty so stated.
  • Reasonable compensation will be fixed on well-known principles that are applicable to the law of contract, which are to be found inter alia in Section 73 of the Contract Act.
  • Since Section 74 awards reasonable compensation for damage or loss caused by a breach of contract, damage or loss caused is a sine qua non for the applicability of the Section.
  • The Section applies whether a person is a plaintiff or a defendant in a suit.
  • The sum spoken of may already be paid or be payable in future.
  • The expression “whether or not actual damage or loss is proved to have been caused thereby” means that where it is possible to prove actual damage or loss, such proof is not dispensed with. It is only in cases where damage or loss is difficult or impossible to prove that the liquidated amount named in the contract, if a genuine pre-estimate of damage or loss, can be awarded.

Defendant Can Resist Without Counter Claim

Going by various decisions referred to above, it is clear that a defendant in a suit for recovery of earnest money can resist the prayer for realisation of advance amount, without a counter claim (even if it is needed, otherwise), because this Section applies ‘whether a person is a plaintiff or a defendant’.[14] Sec. 74 governs and controls the entire domain and gamut relating to these matters; and the Sec. 74 speaks: “party complaining of breach is entitled, reasonable compensation”.

Therefore, a defendant can adduce evidence to prove that he suffered loss and damages by the breach of the plaintiff and can support forfeiture, and resist the recovery of earnest money. 

Facts of Satish Batra Vs. Sudhir Rawal (2013)[15] and Kailash Nath Associates Vs. Delhi Development Authority (2015)[16] are good examples to show that a counter claim is not needed to resist the claim of recovery of advance. In both cases purchasers, as plaintiff, instituted the suits for recovery of money paid by them to the seller-defendant.  It was earnest money under the termsand conditions. Defendants in both the suits contested claiming right of forfeiture in its Written Statement (without a counter claim).

Contractual Terms to Subserve Sec. 74

Sec. 74 mandates that the contractual terms as to damages, should subserve the edicts under this Section.

When Advance can be Forfeited by the Seller?

In the matter of forfeiture of earnest, the main enquiry will be – who breached the contract, seller or buyer. If it is the seller who breached, the seller cannot forfeit the earnest, under the provisions of Sec. 74.

Even if the purchaser breached the contract and there is no breach on the part of seller, then a further question arises for consideration, by virtue of Sec. 74 – whether seller suffered any loss or damage. If no loss or damage, then the seller has to return the entire amount (because, under Sec. 73, ‘reasonable compensation’ alone is ‘entitled’ by him and it alone could be ‘received’).

Sec. 74 mandates that where loss in terms of money can be determined, the party claiming compensation must prove the loss suffered by him (Kailash Nath Associates Vs. DDA).  If reasonable damage is proved, then the court can allow to forfeit that much amount as ‘reasonable compensation’.

Measure of  Damages Under S. 73

Sec, 73 Reads as under:

  • “73. Compensation for loss or damage caused by breach of contract.- When a contract has been broken, the party who suffers by such breach is entitled to receive, from the party who has broken the contract, compensation for any loss or damage caused to him thereby, which naturally arose in the usual course of things from such breach, or which the parties knew, when they made the contract, to be likely to result from the breach of it.
  • Such compensation is not to be given for any remote and indirect loss or damage sustained by reason of the breach.”

In Murlidhar Chiranjilal Vs. Harishchandra Dwarkadas (1962)[17]  it is held as under:

“In these circumstances this is not a case where it can be said that the parties when they made the contract knew that the likely result of breach would be that the buyer would not be able to make profit in Calcutta. This is a simple case of purchase of goods for re-sale anywhere and therefore the measure of damages has to be calculated as they would naturally arise in the usual course of things from such breach. That means that the respondent had to prove the market rate at Kanpur on the date of breach for similar goods and that would fix the amount of damages, in case that rate had gone above the contract rate on the date of breach.

We are therefore of opinion that this is not a case of the special type to which the words “which the parties knew, when they made the contract, to be likely to result from the breach of it” appearing in s. 73 of the Contract Act apply. This is an ordinary case of contract between traders which is covered by the words “which naturally arose in the usual course of things from such breach” appearing in s. 73. As the respondent had failed to prove the rate for similar canvas in Kanpur on the date of breach it is not entitled to any damages in the circumstances.”[18]

The measure of damage in the usual course of things may be the amount of profit lost to the contractor by the breach. This can be stated as the loss which the parties knew when they made the contract, as likely to result from the breach of it, also.[19]

Principles Emerge As To Awarding Damages

On the whole, the following principles emerge as to awarding damages:

  1. Sec. 74 governs both the two classes; first, the sum named as compensation in the contract, and the second, penalty. 
  2. Both classes are treated equally under Sec. 74.
  3. Damages or compensation is awarded by the courts according to the settled principles. The quantum thereof will be that naturally arises in the usual course of things;or which the parties knew, when they made the contract, to be likely to result, special damage or loss, from the breach.
  4. Such compensation is not to be given for any remote and indirect loss or damage sustained by reason of the breach. The party claiming damages cannot rely on any impediment caused to him by a third party which he himself could have thwarted by resorting to necessary legal action. (Karsandas Vs. Saran Engineering Co.)
  5. The compensation is to be fixed, ‘reasonably’, with the aid of S. 73. The court has to adjudge, in every case, ‘reasonable compensation’. (Fateh Chand). (It is a deviation from the English Common Law which permits pre-estimated damages.)
  6. If the party at default knew about special damages to be suffered by the other, when they made the contract, to be likely to result from the breach, under Sec. 74, it may also be awarded (Fateh Chand).
  7. When awarding compensation by the court there should not be ‘unjust enrichment’ – to both buyer [Indian Oil Corporation Vs.  Lloyds Steel Industries (2007)[20]] or seller [Kailash Nath Vs. DDA]
  8. The court has to adjudge reasonable compensation having regard to the conditions existing on the date of the breach (Fateh Chand).
  9. The party suffered breach can realise penalty also ‘as the case may be’ at a reasonable quantum, fixed by the court.
  10. The words “whether or not actual damage or loss is proved” denotes that in all cases where damages can be proved, it must be proved (Moula Bux and Kailash Nath). It does not justify the award of compensation when no legal injury at all has been resulted (Fateh Chand).
  11. S.74 can be invoked by both plaintiff and defendant.  The defendant resisting a suit for return of earnest money can prove that he suffered loss and damages by the breach and default of the plaintiff; that too, without a counter claim; because, Sec. 74 governs and controls the entire domain and gamut relating to these matters and the Sec. 74 enables “party complaining of breach is enabled, reasonable compensation”.
  12. If a seller is at breach, purchaser can realise damages on its proof.
  13. By virtue of the very wordings in Section 74, the quantum of damages that can be awarded by a court will not exceed the penalty stipulated for, or the sum named as compensation, by the parties to the contract.
  14. There should be no fault on such person for not remedying the inconvenience caused by the breach, and he had not neglected to avail himself of them. A party who is entitled to damages is required by law to take steps in mitigation of damages.

Conclusion

In Satish Batra Vs. Sudhir Rawal (2013)[21] our Apex Court had taken an extreme-view that entire earnest money could be forfeited by seller, of his own, in case the buyer breaches the contract.  On the other hand, subsequently, in Kailash Nath Associates Vs. Delhi Development Authority (2015)[22] the Supreme Court took the opposite extreme-view to the effect that no amount, even a nominal sum, could be forfeited as earnest money by the seller; and that reasonable compensation or damages was always subject to or depended upon the judicial determination.

Though it may appear that the acceptable legal position lies midway between the two differing views; that is, where a nominal or token sum is paid as earnest money, it can be forfeited, as observed in Maula Bux Vs. Union of India (1970),[23] applying the English Common Law principles, holding that the forfeiture of a reasonable/nominal (i.e. not amounting to penalty) earnest money does not fall within the ambit of Section 74, since the ‘Legislature has sought to cut across the web of rules and presumptions under the English common law’ as observed in Fateh Chand Vs. Balkishan Dass (1963),[24] we are bound by the provisions in Sec.74 alone.We have also to accept that the law is correctly laid down in Kailash Nath Associates Vs. Delhi Development Authority.


[1] Shree Hanuman Cotton MillsVs. Tata Aircraft Limited, 1970 (3) SCR 127 

[2] (2015) 4 SCC 136

[3] (1970)1 SCR 928:  AIR 1970 SC 1955

[4] (2013) 1 SCC 345

[5] (2015) 4 SCC 136

[6]1970 (3) SCR 127  

[7] Union of India v. Raman Iron Foundry: AIR 1974 SC 1265

[8]1964 SCR (1) 515: AIR 1963 SC 1405

[9] (1970)1 SCR 928:  AIR 1970 SC 1955

[10]  (2013) 1 SCC 345

[11] (2015) 4 SCC 136

[12]Fateh Chand Vs. Balkishan Dass: 1964 SCR (1) 515: AIR 1963 SC 1405

[13] (2015) 4 SCC 136

[14]Kailash Nath Vs. DDA:  (2015) 4 SCC 136

[15]  (2013) 1 SCC 345

[16] (2015) 4 SCC 136

[17]  (1962) 1 SCR 653

[18]Quoted in Anglo American Metallurgical Coal Pty Ltd.  Vs. MMTC Ltd., 2020 Supreme(SC) 719

[19]State of Kerala Vs. Bhaskaran:  AIR 1985 Ker 49

[20]2007 4 Arb LR 84; 2007 144 DLT 659 (Delhi High Court, AK Sikri, J.)

[21] (2013) 1 SCC 345

[22] (2015) 4 SCC 136

[23] (1970)1 SCR 928:  AIR 1970 SC 1955

[24]1964 SCR (1) 515: AIR 1963 SC 1405



Read in this cluster (Click on the topic):

Civil Suits: Procedure & Principles

Evidence Act

Constitution

Contract Act

Easement

Club/Society

Trusts/Religion

When Declaration Needed for Injunction and Recovery

Saji Koduvath, Advocate, Kottayam.

Part I

Overview

General Principles as to Injunction

  • Injunction is granted to ‘prevent breach of an OBLIGATION’.
  • It must be to enforce an individual CIVIL RIGHT.
  • It is a discretionary remedy of the court.

General Principles as to ‘Recovery’/Possession of Property

  • Plaintiff has to succeed a suit for recovery on title, on the strength of his title.
  • If a person is dispossessed ‘otherwise than in due course of law’, he can recover the property under Sec. 6 of the Sp. Relf. Act, on the strength of his earlier possession.
  • In a suit for recovery on title, even if the defendant claims title as owner and fails to prove it, the plaintiff can win only if he establishes his title.
  • In a suit for recovery on title, if the defendant establishes his right to continue possession (honouring possession of the plaintiff) as lessee, licencee, mortgagee etc., the plaintiff will fail.

Declaration of Title

  • A declaration is to make clear what is doubtful.
  • A declaration is needed when serious denial or cloud on the title. 
  • A declaration is needed as an ‘introduction’ to grant an Injunction and Recovery.
  • A declaration is also to tide over Insurmountable obstacles. 
  • An injunction is granted without a declaration when the plaintiff has a well-established title or settled lawful possession.
  • No declaration is needed when the title claimed by the defendant is null or void.
  • Document of defendant, ex facie, reveals no title – specific declaration as to invalidity not necessary.
  • A complete stranger whose interest is in no way affected by another’s legal character is not entitled for a declaration.

Requisites for a Declaratory Suit

In State of MP v. Khan Bahadur, AIR 1971 MP 65  (A.P. Sen, J.) laid down the requisites for a declaratory suit as under:

  • “The requisites for a declaratory suit are well known. In order to obtain relief of this kind, the plaintiff must establish that
  • (i) the plaintiff is at the time of the suit entitled to any legal character or any right to any property;
  • (ii) the defendant has denied or is interested in denying the character or the title of the plaintiff;
  • (iii) the declaration asked for is a declaration that the plaintiff is entitled to a legal character or to a right to property, and
  • (iv) the plaintiff is not in a position to claim a further relief than a bare declaration of his title.
  • Even if all these conditions are fulfilled, the Court has still a discretion to grant or not to grant a declaratory relief depending on the circumstances of each case.”

When Declaration Needed  (Common Law Principles)

  1For establishing deprived rights, or as an introduction to grant an Injunction or RecoveryMohd. Manjural Haque v. Bisseswara Banerjee, AIR 1943 Cal 361; Unnikrishnan v. Ponnu Ammal: 1999-1 KLT 298: AIR 1999 Ker 405)
2When serious denial or cloud on title (or right)Anathula Sudhakar v. P. Buchi Reddy, 2008-4 SCC 594: 2008 SC 2033.
  3Asserted title or civil right is not clear, simple and straight-forward; or, not well-established (lawful possession). Make clear what is doubtful – as to legal character and title.Union of India Vs. R. P. Dhir, ILR 1970-2 (Del) 433 (H. R. Khanna, V. S. Deshpande, JJ.). Suit by trespasser claiming adverse possession. Darshan Kumari v. Kaushalya Devi: 1990 JKLR 208; 1991 Kash LJ 1 (R.P. Sethi, J.). (See foot notes)
4Complicated or complex questions of fact and law to be ‘adjudicated’.Anathula Sudhakar v. P. Buchi Reddy, 2008-4 SCC 594: 2008 SC 2033.
  5 Insurmountable obstacle –  Md. Noorul Hoda v. Bibi Raifunnisa : (1996) 7 SCC 767; Chellakannuv. Kolanji (R. Banumathi, J.), AIR 2005 Mad 405.
  6When the defendant raises a genuine dispute concerning title, and when he raises a cloud over the title of the plaintiff.  Jharkhand State Housing Board v. Didar Singh , (2019) 17 SCC 692 . Referred to in: Padhiyar Prahladji Chenaji vs Maniben Jagmalbhai: 2022 SCC OnLine SC 258.
7When a title dispute exists, and the plaintiff himself elaborated the same in the plaint.A. Subramanian v. R. Pannerselvam, AIR 2021 SC 821.
8The seller had issued a letter cancelling the agreement to sell.Sangita Sinha v. Bhawana Bhardwaj (Dipankar Datta, Manmohan, JJ.), 4 April, 2025,2025 INSC 450

foot notes: It appears that another strong view possible (on adverse-possession) – Article 65 itself being provides that the plaintiff would fail if the defendant proves adverse possession over twelve years, the defendant can resist the suit without a declaration in a counter claim. Sec. 27 also confers a vested statutory right. Sec. 27 reads as under:

  • 27. Extinguishment of right to property—At the determination of the period hereby limited to any person for instituting a suit for possession of any property, his right to such property shall be extinguished.

Defendant Cancelled Agreement for Sale; Declaration Needed

The Supreme Court in a recent decision in Sangita Sinha v. Bhawana Bhardwaj (Dipankar Datta, Manmohan, JJ.), 4 April, 2025,2025 INSC 450, held as under:

  • “26. Since in the present case, the seller had issued a letter dated 7th February, 2008 cancelling the agreement to sell prior to the institution of the suit, the same constitutes a jurisdictional fact as till the said cancellation is set aside, the respondent is not entitled to the relief of specific performance.
  • 27. Consequently, this Court is of the opinion that absent a prayer for declaratory relief that termination/cancellation of the agreement is bad in law, a suit for specific performance is not maintainable.”

When Injunction granted Without Declaration (Under Enacted Laws)

Relevant ActWhen Injunction or Recovery Granted Without Declaration
Sp. Relief Act
Sec. 34
1. Title: well established; clear,simple and straight-forward; or settled right (lawful possession) or Well established possession
2. No Substantial questions of fact and law exists (2017 -7 MLJ 627; 2005-4 MLJ 258): Unnikrishnan v. Ponnu Ammal: AIR 1999 Ker 405.
3. No serious denial or cloud(not any apparent defect) on title (or right); but trespasser without any claim to title or an interloper without any apparent title, merely denies the plaintiff’s title:   Anathula Sudhakar v. P. Buchi Reddy, 2008-4 SCC 594: 2008 SC 2033. (Such as settled or lawful possession; infringement of trade mark or copyright: 2004-3 SCC 90).
4. Void acts: 2000 SC 1099; 2009-4 KLT 840; (2002) 9 SCC 28; AIR 1977 SC 1718; 2013 SC 1226
5.Title claimed by the defendant is Nullity, or Ab-initio void.
6. Fraud on character of a document (not contents): Premsingh v. Birbal: (2006) 5 SCC 353
Sp. Relief Act
Sec. 38
Particular instances specified in Sec. 38 (2) & (3) of the Sp. Rlf. Act
1. Breach of Contractual obligations(including Bylaw provisions)
2. Trustee invades plaintiff’s right.                
3. No standard for ascertaining damages.
4. Compensation in money would not be adequate relief.
5. Necessary to prevent multiplicity of judicial proceedings.
SR Act: Sec. 41(h)Fiduciary obligation (attached to trust): 41(h).
..No lis (no dispute for defendant): 2010-168 DLT 132
Evd. Act, S. 57Facts judicially noticeable: Evd. Act, S. 57
Ease-ments
Act
Sec. 35
35. Injunction to restrain disturbance – Subject to the provisions of the Specific Relief Act, 1877 (1 of 1877)1, sections 52 to 57 (both inclusive), an injunction may be granted to restrain the disturbance of an easement-
(a) if the easement is actually disturbed – when compensation for such disturbance might be recovered under this Chapter;
(b) if the disturbance is only threatened or intended – when the act threatened or intended must necessarily, if performed, disturb the easement. (See: Unnikrishnan v. Ponnu Ammal: AIR 1999 Ker 405)
Contract Act
Sec. 74
Law confers a right; or, Right arises under an Act. (Eg. with expression “shall be void”):(2015)7 SCC 601; 2003 SC 4102 Sec. 74 Contract Act: while resisting a claim of return of advance or to support forfeiture of earnest money, the defendant can resist it without a counter claim. In Kailash Nath Associates v. Delhi Development Authority (2015) 4 SCC 136, it is held: “The Section applies whether a person is a plaintiff or a defendant in a suit.”
Common LawEstablished custom/customary-rights. Eg. Village pathway, Marumakkathayam.
Suits on  settled common law propositions (right of access to the adjoining land from the highways).
It is pointed out in KVK Janardhanan v. State of TN, AIR 1995 Mad 179, that it is a settled proposition –
“In a case of a public road or a cart track every public has got a right of access to the adjoining land. There is no need to ask for a declaration and if there is any obstruction they can ask for the relief of a mandatory injunction.”
Consti-tutionConstitutional right: Art. 19, 21, 300A etc.
Evd. ActEstoppel against defendant S. 115, 116 (tenant), 117 (licencee) Evd. Act
..Acquiescence against defendant
..Already declared (in earlier civil case).
Other LawsEstablished right by virtue of enacted provisions of law.

No Declaration needed against trespasser or imposter without any claim to title or an interloper without any apparent title

In Anathula Sudhakar v. P. Buchi Reddy, 2008-4 SCC 594: 2008 SC 2033, it is held as under:

  • “14. We may, however, clarify that a prayer for declaration will be necessary only if the denial of title by the defendant or challenge to the plaintiff’s title raises a cloud on the title of the plaintiff to the property. A cloud is said to raise over a person’s title, when some apparent defect in his title to a property, or when some prima facie right of a third party over it, is made out or shown. An action for declaration, is the remedy to remove the cloud on the title to the property. On the other hand, where the plaintiff has clear title supported by documents, if a trespasser without any claim to title or an interloper without any apparent title, merely denies the plaintiff’s title, it does not amount to raising a cloud over the title of the plaintiff and it will not be necessary for the plaintiff to sue for declaration and a suit for injunction may be sufficient. Where the plaintiff, believing that the defendant is only a trespasser or a wrongful claimant without title, files a mere suit for injunction, and in such a suit, the defendant discloses in his defence the details of the right or title claimed by him, which raise a serious dispute or cloud over the plaintiff’s title, then there is a need for the plaintiff, to amend the plaint and convert the suit into one for declaration. Alternatively, he may withdraw the suit for bare injunction, with permission of the court to file a comprehensive suit for declaration and injunction. He may file the suit for declaration with consequential relief, even after the suit for injunction is dismissed, where the suit raised only the issue of possession and not any issue of title.” (Quoted in Kurella Naga Druva Vudaya Bhaskara Rao v. Galla Jani Kamma 2008-15 SCC 150; Muddasani Venkata Narsaiah v. Muddasani Sarojana, 2016-12 SCC 288)

Natural Right (S. 7 Easement Act) – No Need to Pray for a Declaration

The Madras High Court (Madurai Bench) in  Gowri Bai v. Elizabath, (2011) 2 CTC 266, observed as under:

  • “17. Therefore, from the passages from the Book of Easements and License by Katiyar and also as per the judgments of our Court, it has been made clear that the water on a higher ground must by operation of the force of gravity flow on to the lower ground and if the owner of the lower ground raised an obstruction to the natural flow of water, he can be restrained if it causes damage to the owner of the land on the high level. No doubt, in the judgment reported in Saraswathi .v. S. Ganapathy, 2001 (4) SCC 694, the Hon’ble Supreme Court has held that when two properties were owned by a single person and subsequently he sold those two properties to different persons, no easementary rights regarding the drainage of water could have been acquired by one owner and the person cannot claim any right over the land of another by contending that previously the owner was allowing the rain water to drain from the roof on the other property and therefor, he also entitled to have the same facility after his purchase.
  • 20. Though the plaintiff could have applied for the relief of declaration in a Suit for injunction, the Court is entitled to give the findings regarding the rights of the parties and as a matter of right, injunction can be granted only when the Court gives the finding that the Plaintiff’s are entitled to prevent the Defendants from causing any obstruction or damages to the Plaintiffs property. Therefore, in a Suit for injunction, the Court has no necessarily give a finding regarding the right of the Plaintiffs. Therefore, it cannot be considered that without the prayer for declaration, the suit for bare injunction is not maintainable. As stated supra, the Plaintiffs are entitled to take the water which flows naturally from the western tank street through the Defendants property and when the Plaintiffs are entitled to allow the natural water to flow through the Defendants’ property, they are entitled to the relief of injunction, and there is no need to pray for a declaration that they are entitled to take the water from the Defendant’s property. Hence, the Suit is not bad for not praying for the relief of declaration and the third substantial question of law is also answered in favour of the Appellants.” (quoted in: C. Mani v. P. R. Sadhasivam, 2017-2 MLJ 271)

In every Suit for Recovery, Declaration of Title is Not Essential

Persons having clear title and possession suing for injunction, should not be driven to the costlier and more cumbersome remedy of a suit for declaration. (Anathula Sudhakar v. P. Buchi Reddy, 2008-4 SCC 594).

In Padmavathi v. Kesava Reddi, 1987-2 Ker LT 386, Dr. Kochu Thommen, J. (as he then was)  held that in a suit for recovery of possession on the strength of title, a plaintiff was not obliged to seek the relief of declaration of his title (Followed: Ramkhelawan Sahu v. Bir Surendra Sahi, AIR 1938 Pat 22). See: Unnikrishnan v. Ponnu Ammal: AIR 1999 Ker 405.

In Sudhakara Reddy v. Lakshmamma, 2014 (4) ALT 404, 2011 (4) ALD 325 (DB), the High Court found fault with the lower courts for framing an issue so as to embrace a declaration (as to cancellation of a deed) in the suit seeking injunction simpliciter.

Document Ex-Facie Reveals No Title – Declaration as to Invalidity Not Necessary

The Supreme Court held in Kizhakke Vattakandiyil Madhavan v. Thiyyurkunnath Meethal Janaki (Aniruddha Bose & Sudhanshu Dhulia, JJ.) 2024-3 KHC 169; 2024-2 KLT 789; 2024-4 SCR 383, held as under:

  • “18. …. If a document seeking to convey immovable property ex-facie reveals that the conveyer does not have the title over the same, specific declaration that the document is invalid would not be necessary. The Court can examine the title in the event any party to the proceeding sets up this defence.”

It was argued in this case (M.S. Ananthamurthy v. J. Manjula, 27 February, 2025; 2025 INSC 273) that the plaintiff had not challenged the validity of the GPA and the agreement. Discarding the submission it was held (relying on Anathula Sudhakar v. P. Buchi Reddy, 2008-4 SCC 594) –

  • “Where the question of title is “directly and substantially” in issue in a suit for injunction, and where a finding on an issue of title is necessary for granting the injunction, with a specific issue on title raised and framed, a specific prayer for a declaration of title is not necessary.”

Essential requirements for Granting Injunction

  1. Breach of obligation ‘existing in his (plaintiff’s) favour’: Sec. 38 (1) Sp. Relief Act
  2. Must be to enforce individual civil rights: Sec. 4 Sp. Relief Act; Sec. 9 CPC
  3. Plaintiff must have personal interest:  Sec. 41(j) Sp. Relief Act
  4. Discretion of the court:   Sec. 36 Sp. Relief Act.

Particular instances (for injunction) specified in Sec. 38 (2) & (3) of the Sp. Relief Act

  1. Breach of Contractual obligations
  2. Trustee invades plaintiff’s right
  3. Defendant invades plaintiff’s rights & no standard for ascertaining damages
  4. When invasion, compensation in money would not be adequate relief
  5. Necessary to prevent multiplicity of judicial proceedings.

When Injunction Refused (even if obligation and breach exists)

Sec. 41 (a) to (j) Sp. Rlf. Act lays down the instances when injunction is refused. It is:

  • (a) to restrain – a judicial proceeding –
  • (b) to restrain – instituting  any proceeding in a court not sub-ordinate
  • (c) to restrain –  any legislative body
  • (d) to restrain –proceedings in a criminal matter
  • (e) to prevent the breach of a contract – which would not be specifically enforced;
  • (f) to prevent- not reasonably clear – it will be a nuisance;
  • (g) to prevent – breach which has been acquiesced;
  • (h) when equally efficacious relief – certainly be obtained – except – trust;
  • (ha) if it would impede or delay infrastructure project
  • (i) if conduct – disentitles – assistance of the court;
  • (j) if plaintiff has no personal interest in the matter.

Other instances: (Injunction Refused- even if obligation and breach exists)

  1. If payer is to enforce penal law.  Sec. 4 Sp. Relief Act
  2. If suit became infructuous,
  3. If prayer granted, ineffective : AIR 1961 All 502
  4. Brutum fulmen: (AIR 1958 All 706; AIR 1986 AP 306); AIR 1978 HP 2 (BRC needed) AIR 1957 P&H 214 (execution in Pakistan)
  5. Civil court Jurisdiction, expressly barred by law: (Various Acts)
  6. Res judicata or O2 R2 CPC bar

Suit for Injunction, if CF paid for Establishing Title, Cannot be Rejected

Corporation of the City of Bangalore v. V.M. Papaiah, AIR 1989 SC 1809, arose from a suit for perpetual injunction. The defendant Corporation denied the claim of the plaintiffs and asserted its continuous possession since 1927 and pleaded that the suit was not maintainable for not asking for a decree to declare the plaintiff’s title. The Apex Court pointed out that the title had been pleaded in express terms in the plaint, and held as under1:

  • “It is well established that for deciding the nature of a suit the entire plaint has to be read and not merely the relief portion, and the plaint in the present case does not leave any manner of doubt that the suit has been filed for establishing the title of the plaintiffs and on that basis getting an injunction against the appellant Corporation. The court fee payable on the plaint has also to be assessed accordingly. It follows that the appellant’s objection that the suit is not maintainable (for not seeking the relief of declaration of title and possession) has to be rejected.”

Defendant Can Resist prayer for Advance Amount Without Counter Claim

A defendant in a suit for recovery of earnest money can resist the prayer for realisation of advance amount, without a counter claim, because Sec. 74 Contract Act which speaks as to ‘party complaining of breach is entitled, reasonable compensation’ applies “whether a person is a plaintiff or a defendant” (even if it is needed, otherwise). See: Kailash Nath v. DDA:  (2015) 4 SCC 136.

Therefore, a defendant can adduce evidence to prove that he suffered loss and damages by the breach of the plaintiff and can support forfeiture, and resist the recovery of earnest money. 

Facts of Satish Batra v. Sudhir Rawal (2013) 1 SCC 345 also show that a counter claim is not needed to resist the claim of recovery of advance. In both cases purchasers, as plaintiff, instituted the suits for recovery of money paid by them to the seller-defendant.  It was earnest money under the terms and conditions. Defendants in both the suits contested claiming right of forfeiture in its Written Statement (without a counter claim).

No injunction if original proceeding has become infructuous

In Shipping Corporation of India Ltd v. Machado Brothers, AIR 2004 SC 2093, 2004 (11) SCC 168, it is held as under:

  • “The view taken by this Court in the case of J.M.Biswas vs. N.K.Bhattacharjee & Ors. (2002 (4) SCC 68) wherein this Court held :
    • “The dispute raised in the case has lost its relevance due to passage of time and subsequent events which have taken place during the pendency of the litigation. In the circumstances, continuing this litigation will be like flogging a dead horse. Such litigation, irrespective of the result, will neither benefit the parties in the litigation nor will serve the interests of the Union.”
  • Thus it is clear that by the subsequent event if the original proceeding has become infructuous, ex debito justitiae, it will be the duty of the court to take such action as is necessary in the interest of justice which includes disposing of infructuous litigation.”

In Kamaluddin Ansari & Co v. Union Of India, AIR 1984 SC 29, 1983 SCR (3) 607 (R.B. Misra, D.A. Desai, V. Balakrishna Eradi, JJ.), it was held as under:

  • “But if an order injuncted a party from withholding the amount due to the other side under pending bills in other contracts, the order necessarily means that the amount must be paid. If the amount ii withheld there will be a defiance of the injunction order and that party could be hauled up for infringing the injunction order. It will be a contradiction in terms to say that a party is injuncted from withholding the amount and yet it can withhold the amount as of right. In any case if the injunction order is one which a party was not bound to comply with, the Court would be loath and reluctant to pass such an ineffective injunction order. The court never passes an order for the fun of passing it. It is passed only for the purpose of being carried out. Once this Court came to the conclusion that the Court has power under s. 41 (b) read with Second Schedule to issue interim injunction but such interim injunction can only be for the purpose of and in relation to arbitration proceedings”.

If Title of Plaintiff Nullity, Defendant need Not file a Substantive Suit

In Bajaranglal Shivchandrai Ruia v. Shashikant N. Ruia, AIR 2004 SC 2546, the defendants contended that the plaintiff’s title, on the basis of the alleged auction sale ‘was a nullity, as it was ultra vires the legal provisions and on the ground of lack of jurisdiction, non-service of demand notice on all the heirs and co-owners’. It was contended from the part of the (original) plaintiff that the sale proceedings could be challenged only by way of a substantive suit, and that the High Court was right in characterising the challenge to the suit by the defendant as a ‘backdoor method’. The Apex Court held as under:

  • If the title claimed by the plaintiff was a nullity and wholly void, there was no need for any of the defendants including Bajranglal to challenge it by way of a substantive suit. They could always set up nullity of title as a defence in any proceeding taken against them based upon such title. If, in fact, the sale was a nullity, it was non est in the eye of law and all that defendant had to do was point this out. (See in this connection: Ajudh Raz and Ors. v. Moti S/o Mussadi, [1991] 3 SCC 136 and the opinion of the Full Bench of the Bombay High Court in Abdulla Mian v. Government of Bombay, (1942) 44 Bom LR 577.
  • In Vidyadhar v. Manikrao and Anr., [1999] 3 SCC 573, the plaintiff had filed a suit on the basis of a sale deed executed by D-2 in his favour and sought the relief of possession of the property from defendant no. 1 who was an absolute stranger to the sale deed. The question which arose was whether defendant No. l, who was in possession, could justify his possession by urging the nullity of sale transaction between the plaintiff and defendant No. 2. In these circumstances, this Court held (vide para 21):
    • ‘The above decisions appear to be based on the principle that a person in his capacity as a defendant can raise any legitimate plea available to him under law to defeat the suit of the plaintiff. This would also include the plea that the sale deed by which the title to the property was intended to be conveyed to the plaintiff was void or fictitious or, for that matter, collusive and not intended to be acted upon. Thus, the whole question would depend upon the pleadings of the parties, the nature of the suit, the nature of the deed, the evidence led by the parties in the suit and other attending circumstances.’
  • Here, the plaintiffs suit is for ejection of the defendant and for possession of the suit property. She must succeed or fail on the title that she establishes. If she cannot succeed in proving her title, the suit must fail notwithstanding that the defendant in possession may or may not have title to the property. (See in this connection: Brahma Nand Puri v. Neki Puri, [1965] 2 SCR 233 at p. 237).”

When Plaintiff Claims Title, He has to PROVE Title in Injunction & Possession Suit

In Yamuna Nagar Improvement Trust v.  Khariati Lal, AIR 2005 SC 2245; (2005) 10 SCC 30, it is held as under:

  • “In our opinion, when the plaintiff had approached the court for permanent injunction claiming to be owner of the property, it was his duty to prove that he was the owner of the property, the said property remained in his possession and that the defendant had no right title or interest therein. Since the plaintiff failed to prove his case the suit was liable to be dismissed.”

Possession cannot be Considered in Vacuum

In Maria Margadia Sequeria v. Erasmo Jack De Sequeria, AIR 2012 SC 1727, it is held as under:

  • “63. Possession is important when there are no title documents and other relevant records before the Court, but, once the documents and records of title come before the Court, it is the title which has to be looked at first and due weightage be given to it. Possession cannot be considered in vacuum.
  • “70. It would be imperative that one who claims possession must give all such details as enumerated hereunder. They are only illustrative and not exhaustive.
    • (a)    who is or are the owner or owners of the property;
    • (b)    title of the property;
    • (c)    who is in possession of the title documents
    •  (d)    identity   of   the   claimant   or   claimants   to possession;
    • (e)    the date of entry into possession;
    • (f)    how   he   came   into   possession   –   whether   he purchased the property or inherited or got the same in gift or by any other method;
    • (g) in case he purchased the property, what is the consideration; if he has taken it on rent, how much is the rent, license fee or lease amount;
    • (h) If taken on rent, license fee or lease – then insist on rent deed, license deed or lease deed;
      • who are the persons in possession/occupation or otherwise living with him, in what capacity; as family members, friends or servants etc.;
    • (j) subsequent conduct, i.e., any event which might have extinguished his entitlement to possession or caused shift therein; and
    • (k) basis of his claim that not to deliver possession but continue in possession.” (Quoted in: Ibrahim v. Saythumuhammed, 2013 (4) KLT 435.)

When court decides upon Title, in Injunction Suit.

In Anathula Sudhakar v. P. Buchi Reddy, 2008-4 SCC 594, AIR 2008 SC 2033, it is held as under:

  • “21.   To summarise, the position in regard to suits for prohibitory injunction relating to immovable property, is as under:      
  • (a)….  (b) ….. (c) … 
  • (d)    Where there are necessary pleadings regarding title, and appropriate issue relating to title on which parties lead evidence, if the matter involved is simple and straight-forward, the court may decide upon the issue regarding title, even in a suit for injunction. But such cases, are the exception to the normal rule that question of title will not be decided in suits for injunction. But persons having clear title and possession suing for injunction, should not be driven to the costlier and more cumbersome remedy of a suit for declaration, merely because some meddler vexatiously or wrongfully makes a claim or tries to encroach upon his property. The court should use its discretion carefully to identify cases where it will enquire into title and cases where it will refer to plaintiff to a more comprehensive declaratory suit, depending upon the facts of the case.”

Title dispute on Forest Land

When title dispute was arisen as to title of land (Forest land or private land) and plantation produce, in  Aliakutty Paul v. State of Kerala, 1995-2 Ker LT 93, it is held as under:

  • “It is open to the petitioner to approach the civil court and claim a declaration of her title to the plantation produce kept stored in the godowns and stores of the Rosary Estate. As and when her title is declared, the petitioner would be entitled to take it away. Until then, it has necessarily to be preserved in safe custody.”

Sale Deeds Executed Without Consideration Are Void

According to Sec. 54 of the Transfer of Property Act, 1882, ‘sale’ is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised.

If a sale deed is executed without payment of price, it is not a sale. It is of no legal effect. Therefore, void. It could be ignored.  In the light of these legal principles it was found in Kewal Krishnan v. Rajesh Kumar  2021 SCC OnLine SC 1097, that that the respondent-purchasers had no earning capacity and no evidence was adduced by them about the payment of the price mentioned in the sale deeds; and hence, the sale deeds were held as void.

A void deed need not be challenged by claiming a declaration

It was also held by the Apex Court in Kewal Krishnan v. Rajesh Kumar  2021 SCC OnLine SC 1097, that a void deed need not be challenged by claiming a declaration; and that a plea thereof can be set up and proved even in collateral proceedings.

If Transfer Ab-Initio Void, Not Required to Set Aside by filing a Suit

In Madhegowda v. Ankegowda, (2002) 1 SCC 178. it is held by our Apex Court as under

  • “25………Undoubtedly Smt Madamma, sister of the minor, is not a “guardian” as defined in Section 4(b) of the Act (Hindu Minority and Guardianship Act, 1956). Therefore, she can only be taken to be a “de facto guardian” or more appropriately “de facto manager”. To a transfer in such a case Section 11 of the Act squarely applies. Therefore, there is little scope for doubt that the transfer of the minor’s interest by a de facto guardian/manager having been made in violation of the express bar provided under the section is per se invalid. The existence or otherwise of legal necessity is not relevant in the case of such invalid transfer. A transferee of such an alienation does not acquire any interest in the property. Such an invalid transaction is not required to be set aside by filing a suit or judicial proceeding. The minor, on attaining majority, can repudiate the transfer in any manner as and when occasion for it arises. After attaining majority if he/she transfers his/her interest in the property in a lawful manner asserting his/her title to the same that is sufficient to show that the minor has repudiated the transfer made by the de facto guardian/manager.”

When a person is NOT PARTY to a suit or a document, unnecessary to Annul

It is held in Y. G. Gurukul v. Y. Subrahmanyam, AIR. 1957 AP 955, as under:

  • “When a person is not eo nomine a party to a suit or a document, it is unnecessary for him to have the deed or the decree annulled, and he can proceed on the assumption that there was no such document or decree.”(Followed in Sankaran V. Velukutty, 1986 Ker LT 794.)

Usman Kurikkal v. Parappur Achuthan Nair, ILR 2012-3 Ker 343; 2012 3 KHC 89, it is held as under:

  • Plaintiff is neither a party to the sale deed nor a party to the resolution empowering the Board to execute the sale deed. The prayer in the plaint is essentially for a declaration that the sale deed is not valid and binding on the plaintiff. The plaintiff has not sought for a cancellation of the sale deed obviously because he was not an executant thereto. The plaintiff can very well ignore the sale deed and need not seek its annulment as has been held in Sankaran v. Velukutty (1986 KLT 794).”

The Supreme Court observed in V.  Kalyanaswamy v. L.  Bakthavatsalam, 2020 3 RCR(Civ) 404; 2020 9 Scale 367, as under:

  • “Plaintiffs-appellants in OS No. 36 of 1963 were not parties to the suit in 1958 and the compromise in OS No. 71 of 1958 will not bind the appellants.”

Where Title claimed by plaintiff not a Nullity, and not wholly Void, should be Challenged

It comes out from the above decision (taking reverse postulation of the proposition laid down) that where the title claimed by the plaintiff was not a nullity and not wholly void, the defendants should have challenged the title by way of a substantive suit, ‘recourse to appropriate legal proceeding’.

There may be several instances where “recourse to appropriate legal proceeding” may be necessitated in ‘void’ transactions. Two among such instances are pointed out in Dhurandhar Prasad Singh v. Jai Prakash University, AIR 2001 SC 2552, as under:

  • “The other type of void act, e.g., may be transaction against a minor without being represented by a next friend. Such a transaction is good transaction against the whole world. So far the minor is concerned, if he decides to avoid the same and succeeds in avoiding it by taking recourse to appropriate proceeding the transaction becomes void from the very beginning.
  • Another type of void act may be which is not a nullity but for avoiding the same a declaration has to be made. Voidable act is that which is a good act unless avoided, e.g., if a suit is filed for a declaration that a document is fraudulent and/or forged and fabricated, it is voidable as apparent state of affairs is real state of affairs and a party who alleges otherwise is obliged to prove it.”

It goes beyond doubt that such suits should be filed within the limitation period.

Propositions as to Questioning a Deed Where One is NOT a Party:

Where one person is not a party to a deed, following propositions can be laid down:

  1. Where a deed is ‘null and wholly void‘(e.g., unregistered sale/gift), he can simply avoid the deed and advance with other reliefs.
    • Limitation statute will have no application in such cases.
  2. If it is not ‘null and wholly void‘, he cannot simply avoid the deed and advance with other reliefs.
    • But, in such cases, it is not mandatory to seek ‘annulment’ of the deed – by ‘setting it aside’ or ‘cancelling it’.
    • It will be sufficient – to resort to “appropriate proceeding”, for avoiding the same, before a court of law, seeking proper declaration or otherwise.
    • It must be done within the limitation period prescribed.

Fraudulent Misrepresentation as to Character and as to Contents

In Dularia Devi v. Janardan Singh, AIR 1990 SC 1173, it has been held that where there is misrepresentation as to the character of a document and thumb impression was obtained on the sale deed by making an illiterate woman believe that she was executing gift deed in favour of her daughter, the sale deed is totally void and not voidable. The Apex Court observed as under:

  • “6. In Ningawwa v. Byrappa, (AIR 1968 SC 956), this Court referred to the well-established principle that a contract or other transaction induced or tendered by fraud is not void, but only voidable at the option of the party defrauded. The transaction remains valid until it was avoided. This Court then said (Para 5): “The legal position will be different if there is a fraudulent misrepresentation not merely as to the contents of the document but as to its character. The authorities make a clear distinction between fraudulent misrepresentation as to the character of the document and fraudulent misrepresentation as to the contents thereof. With reference to the former, it has been held that the transaction is void, while in the case of the latter, it is merely voidable. In Foster v. Mackinnon, (1869) LR 4 CP 704, the action was by the endorsee of a bill of exchange. The defendant pleaded that he endorsed the bill on a fraudulent representation by the acceptor that he was signing a guarantee. In holding that such a plea was admissible, the Court observed: It (signature) is invalid not merely on the ground of fraud, where fraud exists, but on the ground that the mind of the signer did not accompany the signature; in other words, that he never intended to sign, and therefore in contemplation of law never did sigh, the contract to which his name is appended……… The defendant never intended to sign that contract or any such contract. He never intended to put his name to any instrument that then was or thereafter might become negotiable. He was deceived, not merely as to the legal effect, but as to the ‘actual contents’ of the instrument.”
  • See also: Prem Singh v. Birbal – (2006) 5 SCC 353; 2014 (3) KLJ 55.

Court does not Fix or Declare a Precise Date or Time of Death

It is so held in LIC v. Anuradha1, (2004) 10 SCC 131. In The Commissioner, Nagpur Municipal Corporation v. Lalita (Neutral Citation: 2025 INSC 1280), this decision is followed, stating as under:

  • “In LIC v. Anuradha, (2004) 10 SCC 131, it has been laid down in matters of civil death, the question of the date or time of the death must be determined on the basis of direct or circumstantial evidence, and not on mere assumption or presumption. The burden to prove the date or time of the death lies upon the person who makes such an assertion of death. It has been further clarified in the aforesaid case that the decree of declaration of civil death only recognises the fact that the person is presumed to be dead after expiry of seven years of disappearance, without fixing any precise date or time of death.”

Injunction is Absolutely a Discretionary and Equitable Relief.

The Supreme Court in Premji Ratansey Shah v. Union of India, 1994-5 SCC 547, has held as under:

  • “Issuance of an order of injunction is absolutely a discretionary and equitable relief. In a given set of facts, injunction may be given to protect the possession of the owner or person in lawful possession. It is not mandatory that for mere asking such relief should be given. Injunction is a personal right under Section 41(j) of the Specific Relief Act, 1963; the plaintiff must have personal interest in the matter. The interest of right not shown to be in existence, cannot be protected by injunction.
  • 5. It is equally settled law that injunction would not be issued against the true owner. Therefore, the courts below have rightly rejected the relief of declaration and injunction in favour of the petitioners who have no interest in the property. Even assuming that they had any possession, their possession is wholly unlawful possession of a trespasser and an injunction cannot be issued in favour of a trespasser or a person who gained unlawful possession, as against the owner. Pretext of dispute of identity of the land should not be an excuse to claim injunction against true owner.”

See Blog: Void, Voidable, Ab Initio Void, Order Without Jurisdiction and Sham Transactions

Cloud – Explained in Anathula – Para 12

A cloud is raised when some apparent defect in his title or some prima facie right of a third party. Not a cloud, if trespasser without any claim to title or an interloper without any apparent title, merely denies the plaintiff’s title. 

(It should be serious cloud: Kurella Naga Druva Vudaya Bhaskara Rao v. Galla Jani Kamma (2008) 15 SCC 150: (Quoted in Muddasani Venkata Narsaiah v. Muddasani Sarojana: AIR 2016 SC 2250: 2016-12 SCC 288)

Cloud – if defendant raises genuine dispute with regard to title

In Jharkhand State Housing Board v. Didar Singh, (2019) 17 SCC 692, it is observed as under:

  • “11. It is well settled by catena of judgments of this Court that in each and every case where the defendant disputes the title of the plaintiff it is not necessary that in all those cases plaintiff has to seek the relief of declaration. A suit for mere injunction does not lie only when the defendant raises a genuine dispute with regard to title and when he raises a cloud over the title of the plaintiff, then necessarily in those circumstances, plaintiff cannot maintain a suit for bare injunction.” (Quoted in:Kayalulla Parambath Moidu Haji v. Namboodiyil Vinodan, 2021-3 CurCC(SC) 519; 2021 10 Scale 282)

When Declaration Refused  (S. 34 Proviso)           

  1. Further relief possible and not sought for (S. 34 Proviso). Where relief of partition is to be sought for, it should be prayed.
  2. Where declaration is a vehicle to launch the weapon of injunction, or recovery – if injunction or recovery itself cannot be granted (or, if granted ineffective: Brutum-fulmen applies)

Seeking Declaration, Without Prayer for Recovery – Barred by Sec. 34

In Union of India v. Ibrahim Uddin, (2012) 8 SCC 148, though the plaintiff was not in possession of the suit property, the suit was filed for declaration of title of ownership (alone) without seeking consequential relief. It was held that the suit was barred by the provision of Section 34 of the Specific Relief Act for not seeking recovery of possession (Refferd to:  Ram Saran v. Ganga Devi, AIR 1972 SC 2685, Vinay Krishna v. Keshav Chandra, AIR 1993 SC 957, Gian Kaur v. Raghubir Singh, (2011) 4 SCC 567).

When declaration given without further relief:

  1. No further relief possible on legal character/status or title.
  2. Pecuniary rights (S. 34 is limited to legal character and right to property): State of MP v. Khan Bahadur, AIR 1971 MP 65  (A.P. Sen, J.).

Declaration on ‘Legal Character’

Sec. 34 refers to declaration of status (legal character) or right.  Anathula Sudhakar v. P. Buchi Reddy, 2008-4 SCC 594, refers to denial/cloud in property rights alone; and not status (legal character). 

The same principle can be brought in ‘legal status’ (legal character) also. It is held in Ashoka Sa v. Bidyadhar Patra, AIR 1995 Ori. 59, as under:

  • “On consideration of the aforesaid, the position  that emerges is that law governing suits for bare  declaration stands codified in Sec. 34 of the  Specific Relief Act, 1963 (Section 42 of the old  Act.) The object of Sec. 34 is to clear the cloud hovering the legal character of the plaintiff or on his right to property. The circumstances in which a declaratory decree should be awarded is a matter of discretion which depends upon facts peculiar to each case. A complete stranger whose interest is in no way affected by another’s legal character or who has no interest in another’s property is not entitled to maintain a  suit under Sec 34.” (Quoted in: Sumathi v. Kamalamma, ILR 2013-3 Ker 259.)

Cloud ‘hovering on Legal Character’ is considered in following cases also.

  • Matrimonial status of parties to a marriage when it comes to a marriage which allegedly has never taken place either de jure or de facto: Samar Kumar Roy v. Jherna Bera, AIR 2018 SC 334.
  • Paternity of a child: Nizar vs Raseena, 2018-4 Ker LT 870; Radhadrishnan v. Indu, 2018-3 Ker LT 664.
  • Termination of service on illegality: United Theological College vs Sunny Kulathakkal, 1989 (2) KarLJ 456, ILR 1989 (Kar) 3320 (See alsoAIR 1958 SC 886: Quoted in 2016-2 SCC 779).

Injunction is a Possessory Remedy.

The law as to ‘protection of possession’ by court can be summarised as under:

  • Possession by itself is a substantive right recognised by law. It is heritable and transferable.
    • Kuttan Narayanan v. Thomman Mathayi, AIR 1966 Ker 179;
    • Phirayalal Kapur v. Jia Rani, AIR 1973 Delhi 186;
    • Nallammal v. Ayisha Beevi, 2017-5 Mad LJ 864). 
  • It is trite law that courts protect settled possession.
    • Rame Gowda v. M. Varadappa Naidu, 2004-1 SCC 769.
  • Injunction is a possessory remedy.
    • Ladies Corner, Bangalore vs State of Karnataka, ILR 1987 KAR 1710, 1987 (1) KarLJ 402.
    • Patil Exhibitors (Pvt.) Ltd. vs The Corporation of The City (M Venikatachaliah, J.) : AIR 1986 Kant 194, ILR 1985 KAR 3700, 1985 (2) KarLJ 533.
    • Referred to in Chetak Constructions v. Om Prakash, AIR 2003 MP 145.
  • But, an injunction cannot be issued against a true owner or title holder and in favour of a trespasser or a person in unlawful possession.
    • Padhiyar Prahladji Chenaji vs Maniben Jagmalbhai: 2022 SCC OnLine SC 258.

Kesar Bai v. Genda Lal – HC and SC Approached in different Perspectives

Kesar Bai v. Genda Lal, 2022-10 SCC 217, arose from a suit seeking declaration of ownership and permanent injunction. The findings of the High Court were the following:

  • the plea of ownership claimed by the plaintiff based on a sale deed and the plea of adverse possession were contrary to each other;
  • the plaintiffs could not have been permitted to take both the pleas at the same time;
  • but, in view of the fact that the plaintiff was in possession of the suit land since the execution of the said sale deed, the plaintiff was entitled for injunction on the basis of his possession.

Setting aside the High Court judgment the Apex Court held as under:

  • “The possession/alleged possession of the plaintiffs could not have been protected by passing a decree of permanent injunction in favour of the plaintiffs”.

Should the Defendant-Rightful-Owner Approach the Court Again For Recovery?

No.

Before Kesar Bai v. Genda Lal, our Apex Court held in Padhiyar Prahladji Chenaji v. Maniben Jagmalbhai, 2022 SCC OnLine SC 258 (M.R. Shah, B.V. Nagarathna, JJ.) to the following effect (see ‘End Notes’ below):

  • The plaintiff is not entitled to any injunction and/or protect his possession against the rightful owner, more particularly, when he fails to get the declaratory relief with respect to the title.
  • In a suit for permanent injunction to restrain the defendant from interfering with the plaintiff’s possession, the only thing the plaintiff will have to establish is that as on the date of the suit, he was in lawful possession of the suit property and the defendant has tried to interfere or disturb his possession
  • the plaintiff, who has failed to get any declaratory relief on title cannot be said to be in “lawful possession”. Only when the person seeking the relief is in lawful possession and enjoyment of the property, he is legally entitled to be in possession, and not to disposes him, except in due process of law.
  • The contention of the plaintiff that even if the plaintiff failed to get the declaratory relief and the suit is dismissed, once the plaintiff is found to be in possession, her possession cannot be disturbed except in due process of law and the only remedy available to the defendant would be “to file a substantive suit to get back the possession is noticed only to be rejected outright”.
  • In Maria Margarida Sequeira Fernandes v. Erasmo Jack de Sequeira, (2012) 5 SCC 370, it was held that the ‘due process’ or ‘due course’ condition was satisfied the moment the rights of the parties were adjudicated upon by a court of competent jurisdiction, and that it did not matter who brought the action to court.
  • In Maria Margarida Sequeira Fernandes v. Erasmo Jack de Sequeira, the Court has approved the following findings of the High Court of Delhi in Thomas Cook (India) Ltd. v. Hotel Imperial (2006) 88 DRJ 545:
    • “In this context, when a party approaches a court seeking a protective remedy such as an injunction and it fails in setting up a good case, can it then say that the other party must now institute an action in a court of law for enforcing his rights i.e. for taking back something from the first party who holds it unlawfully, and, till such time, the court hearing the injunction action must grant an injunction anyway? I would think not.”
  • Once the rights of the parties are adjudicated and the defendant is held to be the true owner, it can be said that due process of law has been followed and thereafter the plaintiff is not entitled to any permanent injunction against the true owner.
    • Note: It is not specifically stated in this decision (Prahladji Chenaji v. Maniben Jagmalbhai) that one can resume possession using force.

Can Rightful Owner Eject Trespasser, by Force; Otherwise than on Due Process of Law?

No.

It goes without saying that the the rightful owner is not legally entitled to eject the interloper or trespasser by force, otherwise than on due process of law; especially when the trespasser is in settled possession.

In Karthiyayani Amma v. Govindan, AIR 1980 Ker 224, the Kerala High Court considered the question whether the rightful owner can eject a trespasser in possession with force; and whether a person in illegal possession could sustain a suit for injunction against the true owner, from forcibly dispossessing him from the property.  It was held as under:

  • “The ultimate position, therefore, reduces itself to this:
  • Can a person in possession without title sustain a suit for injunction against the rightful owner if he proves possession? Yes.
  • In this case, plaintiff is found to in be possession. On the finding, he should be granted the injunction prayed for. A person in possession can be evicted only in due process of law. Even the rightful owner cannot eject him with force. If he cannot be evicted with force, he continues to be in possession and he can resist invasion of his possession by everyone including the rightful owner. If the rightful owner threatens his peaceful possession, he can approach Courts of Law and pray for the equitable relief of injunction to protect his possession”. (Followed in: Aiysumma v. Mariyamma, 1994-2 CIVCC 52, 1994-1 KerLT 570. )

It is pointed out in Suresh v. Ashok Girdharilal Chandak, 2016-1 MHLJ 171 that ‘bearing in mind the basic principle of law in civil jurisprudence that even a trespasser cannot be evicted without following due process of law and no one can be allowed to take law into his own hands to recover possession of the property without following due process of law and without proving title to the immovable property in possession of a person holding actual physical possession thereof’.

Person in possession can use Reasonable Force to keep out a Trespasser

In Rame Gowda v. M. Varadappa Naidu, (2004) 1 SCC 769, our Apex Court Court, observed that the law will come to the aid of a person in peaceful and settled possession by injuncting even a rightful owner. It is held as under:­ 

  • “8. It is thus clear that so far as the Indian law is concerned the person in peaceful possession is entitled to retain his possession and in order to protect such possession he may even use reasonable force to keep out a trespasser.
  • A rightful owner who has been wrongfully dispossessed of land may retake possession if he can do so peacefully and without the use of unreasonable force.
  • If the trespasser is in settled possession of the property belonging to the rightful owner, the rightful owner shall have to take recourse to law; he cannot take the law in his own hands and evict the trespasser or interfere with his possession. 
  • The law will come to the aid of a person in peaceful and settled possession by injuncting even a rightful owner from using force or taking law in his own hands, and also by restoring him in possession even from the rightful owner (of course subject to the law of limitation), if the latter has dispossessed the prior possessor by use of force.
  • In the absence of proof of better title, possession or prior peaceful settled possession is itself evidence of title. Law presumes the possession to go with the title unless rebutted. The owner of any property may prevent even by using reasonable force a trespasser from an attempted trespass, when it is in the process of being committed, or is of a flimsy character, or recurring, intermittent, stray or casual in nature, or has just been committed, while the rightful owner did not have enough time to have recourse to law. In the last of the cases, the possession of the trespasser, just entered into would not be called as one acquiesced to by the true owner.” (quoted in: Subramanya Swamy Temple, Ratnagiri v. V. Kanna Gounder, 2009-3 SCC 306)

Settled Possession and Established Possession

What is the settled possession or effective possession of a person without title which would entitle him to protect his possession even as against the true owner was made clear in Rame Gowda v. M. Varadappa Naidu, (2004) 1 SCC 769. It reads as under:

  • “9. …The “settled possession” must be (i) effective, (ii) undisturbed, and (iii) to the knowledge of the owner or without any attempt at concealment by the trespasser. The phrase “settled possession” does not carry any special charm or magic in it; nor is it a ritualistic formula which can be confined in a straitjacket. An occupation of the property by a person as an agent or a servant acting at the instance of the owner will not amount to actual physical possession.” (quoted in Samarpan Varishtha Jan Parisar vs Rajendra Prasad Agarwal, 2022 SCC OnLine SC 564)

In Poona Ram v. Moti Ram, AIR 2019 SC 813, it was pointed out in a case where there was no document to prove settled possession that ‘merely on doubtful material and cursory evidence, it cannot be held that the plaintiff was ever in possession of the property, and that too in settled possession’. It held further as under:

  • “13. The crux of the matter is that a person who asserts possessory title over a particular property will have to show that he is under settled or established possession of the said property. But merely stray or intermittent acts of trespass do not give such a right against the true owner. Settled possession means such possession over the property which has existed for a sufficiently long period of time, and has been acquiesced to by the true owner. A casual act of possession does not have the effect of interrupting the possession of the rightful owner. A stray act of trespass, or a possession which has not matured into settled possession, can be obstructed or removed by the true owner even by using necessary force. Settled possession must be (i) effective,(ii) undisturbed, and (iii) to the knowledge of the owner or without any attempt at concealment by the trespasser. There cannot be a straitjacket formula to determine settled possession. Occupation of a property by a person as an agent or a servant acting at the instance of the owner will not amount to actual legal possession. The possession should contain an element of animus possidendi. The nature of possession of the trespasser is to be decided based on the facts and circumstances of each case.”

In A. Subramanian v. R. Pannerselvam, AIR 2021 SC 821, the Supreme Court held that even a trespasser, who is in established possession of the property could obtain injunction. But, it was cautioned that the matter would be different, if the plaintiff himself elaborated in the plaint about title dispute and fails to make a prayer for declaration of title along with injunction relief.

‘Possession is good against all but the True Owner’

This principle is declared in Parry v. Clissold, (1907) AC 73. Though the Supreme Court accepted this principle in Nair Service Society Ltd. v. K.C. Alexander and others, AIR 1968 SC 1165, it was with a clarification. It reads as under:

  • “(17) In our judgment this involves an incorrect approach to our problem. To express our meaning we may begin by reading 1907 AC 73, to discover if the principle that possession is good against all but the true owner has in any way been departed from. 1907 AC 73 reaffirmed the principle by stating quite clearly:
  • “It cannot be disputed that a person in possession of land in the assumed character of owner and exercising peaceably the ordinary rights of ownership has a perfectly good title against all the world but the rightful owner. And if the rightful owner does not come forward and assert his title by the process of law within the period prescribed by the provisions of the statute of Limitation applicable to the case, his right is for ever extinguished and the possessory owner acquires an absolute title.”

No decree for recovery unless ‘present right to the possession’

While considering the question whether a worshipper can file a suit for recovery, it is held by our Apex Court, in M Siddiq v. Mahanth Suresh Das (Ayodhya Case), 2020-1 SCC 1, that no decree for recovery of possession can be made in such a suit unless the worshipper has the ‘present right to the possession’. But it is pointed out that in such situations, a worshipper must be permitted to sue as next friend of the deity, sue on behalf of the idol itself – directly exercising the deity’s right to sue.

In Rame Gowda v. M. Varadappa Naidu, (2004) 1 SCC 769, our Apex Court, observed as under:­ 

  • “8. It is thus clear that so far as the Indian law is concerned the person in peaceful possession is entitled to retain his possession and in order to protect such possession he may even use reasonable force to keep out a trespasser. A rightful owner who has been wrongfully dispossessed of land may retake possession if he can do so peacefully and without the use of unreasonable force. If the trespasser is in settled possession of the property belonging to the rightful owner, the rightful owner shall have to take recourse to law; he cannot take the law in his own hands and evict the trespasser or interfere with his possession. The law will come to the aid of a person in peaceful and settled possession by injuncting even a rightful owner from using force or taking law in his own hands, and also by restoring him in possession even from the rightful owner (of course subject to the law of limitation), if the latter has dispossessed the prior possessor by use of force. In the absence of proof of better title, possession or prior peaceful settled possession is itself evidence of title. Law presumes the possession to go with the title unless rebutted. The owner of any property may prevent even by using reasonable force a trespasser from an attempted trespass, when it is in the process of being committed, or is of a flimsy character, or recurring, intermittent, stray or casual in nature, or has just been committed, while the rightful owner did not have enough time to have recourse to law. In the last of the cases, the possession of the trespasser, just entered into would not be called as one acquiesced to by the true owner.” (Quoted in: Poona Ram v. Moti Ram, AIR 2019 SC 813.)

Plaintiff must establish LEGAL POSSESSION for getting Injunction

In N. V.  Sundaram v. Veerapan, 17 Oct 2014, 2014 Supreme (Mad) 3757, it is held, as regards legal possession as under:

  • “19. The scope of the suit is also based on the nature of the suit plea taken and the relief sought for. This is a suit for bare injunction. Injunction has been sought for by the plaintiffs to protect the possession. Merely on the plea taken in the written statement altogether the texture and structure of the suit will not change. But, even if the suit is for bare injunction, such discretionary relief cannot be granted on mere possession. A person must establish to the court that he is in legal possession of the property. Otherwise, it will be ‘might is right’. Otherwise, there will be recognition for disorderliness in society.”

A trespasser, invader or interloper cannot seek discretionary relief of injunction

N. V.  Sundaram v. Veerapan, 17 Oct 2014, 2014 Supreme (Mad) 3757, continued as under:

  • A trespasser, invader, interloper, intruder first put his legs on another man’s property and simply declare that he is possession and seek the discretionary relief of injunction. Here we must remember a rudimentary principle that in a suit for bare injunction we need not see predominantly title as in a suit for title but we must see incidentally in what legal manner the plaintiffs are in possession to assure ourselves; if they are in possession, whether it is legal, namely whether they are in legal possession of the property. Therefore, to get relief from the court of law one has to justify that he is in possession of the property in a manner known to law.

A declaratory relief – Property capable of identifying correctly

In Aliyar v. Raju V. Vayalat, 2016-1 KHC 763; 2016-2 KLT 656, it is held as under:

  • A declaratory relief can only be claimed in respect of a specific immovable property capable of being identified correctly. Indisputably, the descriptions in the schedule to Ext.A1 and the recital in the document do not reflect the actual state of affairs. Therefore, the declaratory relief can be effectively granted only after rectifying the mistakes in Ext. A1

Temporary Mandatory Injunction – to preserve Status Quo of the Last Non-Contested Status

Dorab Cawasji Warden v. Coomi Sorab Warden, AIR  1990 SC 867 : (1990) 2 SCC 117, is the laudable decision on interim mandatory injunction. It is laid down in this decision that interlocutory mandatory injunctions are granted to:

  • (i) preserve or restore the status quo ante, of the last non-contested status which preceded the pending controversy, or
  • (ii) to compel the undoing of those acts that have been illegally done, or
  • (iii) the restoration of that which was wrongfully taken from the party complaining.

It is also pointed out that the court would consider the prospect of granting of a mandatory injunction finally, after trial; and delineated that a fresh state of affairs cannot be allowed to be created by the grant of such an injunction.

See Blog: Mandatory Injunction – Law and Principles

Ayodhya Case – Proceeded on the principle: ‘The court is the protector of all charities’.

It is held by our Apex Court in M Siddiq v. Mahanth Suresh Das ( 2020-1 SCC 1, Ayodhya Case) as under:

  • When a Shebait is negligent in its duties or takes actions that are hostile to the deity or improperly alienated trust property or refuses to act for the benefit of the idol or where the Shebait’s actions are prejudicial to the interest of the idol, it becomes necessary to confer on a next friend the right to bring an action in law against the Shebait; and a worshipper has an ad hoc power of representation to protect the interest of the idol.
  • The court can craft any number of reliefs, including the framing of a scheme. The question of relief is fundamentally contextual and must be framed by the court in light of the parties before it and the circumstances of each case.

It is clear that our Apex Court has rendered the above edicts adopting the view that ‘the court is the protector of all charities’.  [See Blog: M. Siddiq v. Mahant Suresh Das –Pragmatic Verdict on Ayodhya Disputes]

Locus Standi for Plaintiff – Building Regulation Violation

A neighbour who is affected by an illegal construction, or a construction in infraction of a Municipal regulation, will have the locus and can maintain a suit for perpetual injunction. The Kerala High Court, in Saina v. Konderi, AIR 1984 Ker 170, turned down the argument that the matters concerning violation of the Municipal Rules are entirely the look-out of the local authority. It was observed that unless, by express words or by necessary implication he is debarred (Sec. 9 CPC) from doing so, civil court would have jurisdiction if there was violation of Building Rules. Finally, it is held that the law recognises a citizen’s right to institute a suit with a view to ensure effective implementation of the Municipal regulations, such as the Buildings Rules, even in the absence of a specific personal injury to the person suing. The High Court quoted Lord Wright in (1868) 4 Ex. 43 where it was said: “If you have an infringement of a legal right there is a right of action without actual damage being proved….  Where you have an interference with a legal right, the law presumes damage.”

Relying on the Kerala decision, it is observed in Sindhu Education Society v. Municipal Corporation of City of Ulhasnagar, AIR 2001 Bom 145 and in Fatima w/o Caetano Joao v. Village Panchayat of Merces, AIR 2000 Bom 444, it was observed that the citizens will have the right to enforce Rules through Court if the Municipal Corporation fails to perform its duty and that courts in India has the duty to see that the law is obeyed and not violated.

(See also: Babulal Shivlal Upadhye v. Yadav Atmaram Joshi, 1994-2 Bom CR 583; 1994 2 MahLR 869; 1994 1 MhLJ 256; D.  Thomas v. N.  Thomas, 1999 2 MLJ 260; Musstt Anjira Khatoon Hazarika v. Tapan Kumar Das, 2015 1 GauLR 133.)

In K. Ramdas Shenoy v. Chief Officer, Town Municipal Council, Udipi, AIR 1974 SC 2177, the Apex Court held as follows:

  • “An illegal construction of a cinema building materially affects the right to of enjoyment of the property by persons residing in the residential area. The Municipal Authorities owe a duty and obligation under the statute to see that the residential areas is not spoilt by unauthorized construction. The scheme is for the benefit of the residents of the locality. The Municipality acts in aid of the scheme. The rights of the residents in the area are invaded by an illegal construction of a cinema building. It has to be remembered that a scheme in residential area means planned orderliness in accordance with the requirements of the residents. If the scheme is nullified by arbitrary acts in excess and derogation of the powers of the Municipality the courts will quash orders passed by Municipalities in such cases.”

Andhra Pradesh High Court quoted the following from Bhagwan Das v. Harish Chetwal in Sarada Bai v. Shakuntala Bai, AIR 1993 AP 20, which read as under:

  • “The pronouncement of the Supreme Court in K.R. Shenoy v. Udipi Municipality emboldens us to take a view at variance with the one expressed by a Division Bench of this Court in Kamalamma v. Subba Rao and so hold that an individual, be he a neighbour or one of a class of persons where the infraction of a right is involved and complained of, is certainly clothed with a right to invoke the jurisdiction of a Civil Court not only to enforce the obligations and duties was on the concerned authorities, but also subject the individual or class of individuals to conform to the obligations of the statute.
  • If that be so, it presents no difficulty in answering one of the questions raised in this case, viz., whether it would be competent for the neighbour, namely, the petitioners herein to enforce the obligation cast on the Municipal Corporation to remove the structures constructed in contravention of the statutory provisions; and to seek a direction against an individual, plaintiff herein to conform to the obligation laid down in Chapter XII of the Act and to demolish any construction made in contravention thereof, either by way of a civil proceeding or seeking mandamus under Article 226 of the Constitution. The answer is quite apparent and it is in the affirmative.”

Part II

LIMITATION –Declaration

A suit for declaration is governed by Article 58 of the Limitation Act and the period of limitation is three years.

Article 65 and not Article 58 of the Limitation Act Governs

In C. Natrajan v. Ashim Bai, AIR 2008 SC 363; (2007) 14 SCC 183, our Apex Court held as under:

  • “13. If the plaintiff is to be granted a relief of recovery of possession, the suit could be filed within a period of 12 years. It is one thing to say that whether such a relief can be granted or not after the evidences are led by the parties but it is another thing to say that the plaint is to be rejected on the ground that the same is barred by any law. If the suit has been filed for possession, as a consequence of declaration of the plaintiffs title, Article 58 will have no application.”

State of Maharashtra v. Pravin Jethalal Kamdar, (2000) 3 SCC 460, was a suit for declaration in respect of a right of pre-emption and also for possession. It was contended that the deed was null and void. Our Apex Court held that merely for the fact that the plaintiff, besides the relief of possession, sought declaration also was of no consequence, and that in such a case the governing article of the Schedule to the Limitation Act would be Article 65. It is observed as under:

  • “As already noticed, in Bhim Singhji’s case, (AIR 1981 SC 234) (supra) Section 27(1) insofar as it imposes a restriction on transfer of any urban or urbanisable laid with a building or a portion of such building, which is within the ceiling area, has been held to be invalid. Thus, it has not been and cannot be disputed that the order dated 26th May, 1976, was without jurisdiction and nullity. Consequently, sale deed executed pursuant to the said order would   also be a nullity. It was not necessary to seek a declaration about the invalidity of the said order and the sale deed. The fact of plaintiff having sought such a declaration is of no consequence. When possession has been taken by the appellants pursuant to void documents, Article 65 of the Limitation Act will apply and the limitation to file the suit would be 12 years. When these documents are null and void, ignoring them a suit for possession simpliciter could be filed and in the course of the suit it could be contended that these documents are nullity. In Ajudh Raj v. Moti S/o. Mussadi, (1991) 3 SCC 136: (1991 AIR SCW 1576: AIR 1991 SC 1600) this Court said that if the order has been passed without jurisdiction, the same can be ignored as nullity, that is, non-existent in the eyes of law and is not necessary to set it aside; and such a suit will be governed by Article 65 of the Limitation Act. …..”

In Seshumull M. Shah v. Sayed Abdul Rashid , AIR 1991 Kar. 273, Karnataka High Court observed that a suit where possession is claimed as a consequence of the declaration, it would be governed by Article 65 and not Article 58 of the Limitation Act.

In Aishani Chandna Mehra v. Rajesh Chandna, 2019 0 Supreme(Del) 170; Laws (Dlh) 2019 1 288, Rajiv Sahai Endlaw, J. observed, referring his own earlier 3 judgments, as under:

  • “23. Otherwise also, I have in Sunil Kohli Vs. Subhash Chand Dua 2016 SCC OnLine Del 3244, , Ashok Kumar Vs. Mohd. Rustam (2016) 227 DLT 385,  and Capital Land Builders Pvt. Ltd. Vs. Komal, 2018 SCC OnLine Del 11867, held
  • .(i) that in suits claiming relief with respect to immoveable property, the relief of declaration, even if claimed, is superfluous and the limitation for the suit would be governed by the limitation provided for the relief of possession; the longer limitation period provided for instituting a suit for recovery of possession would not be curtailed by the lesser limitation of three years provided for a suit for declaration;
  • (ii) that to hold otherwise would tantamount to providing two different periods of limitation for a suit for recovery of possession of immovable property based on title i.e. of three years if the suit, besides for the said relief is also for the relief of declaration of title and of twelve years, if no relief of declaration is claimed;
  • (iii) that a relief of declaration of title to immovable property is implicit in a suit for recovery of possession of immovable property based on title inasmuch as without establishing title to property, if disputed, no decree for the relief of possession also can be passed;
  • (iv) that thus, merely because a plaintiff in such a suit also specifically claims the relief of declaration of title, cannot be a ground to treat him differently and reduce the period of limitation available to him from that provided of twelve years, to three years; and,
  • (v) that when a relief of declaration is coupled with the relief of possession, the larger period of limitation for the relief of possession and not the lesser period of limitation for the relief of declaration would apply.
  • Reference in this regard may also be made to Vidur Impex and Traders Pvt. Ltd. Vs. Pradeep Kumar Khanna (2017) 241 DLT 481 and C. Natrajan Vs. Ashim Bai (2007) 14 SCC 183.”

In Ashok Kumar v. Mohd. Rustam, 2016 SCC OnLine Del 466: MANU/DE/0197/2016
(Rajiv Sahai Endlaw, J.), it was held as under:

  • “16. Article 58 of the Schedule to the Limitation Act, for the relief of declaration, undoubtedly provides limitation of three years from the date when the cause of action accrues. However I am of the opinion that once the plaintiff, besides suing for declaration of title also sues for recovery of possession of immovable property on the basis of title, the limitation for such a suit would be governed by the limitation provided for the relief of possession and not by limitation provided for the relief of declaration. To hold otherwise would tantamount to providing two different periods of limitation for a suit for recovery of possession of immovable property based on title i.e. of three years if the suit besides for the said relief is also for the relief of declaration of title and of twelve years as aforesaid if no relief of declaration is claimed. A relief of declaration of title to immovable property is implicit in a suit for recovery of possession of immovable property based on title inasmuch as without establishing title to property, if disputed, no decree for the relief of possession also can be passed. Thus, merely because a plaintiff in such a suit also specifically claims the relief of declaration of title, cannot be a ground to treat him differently and reduce the period of limitation available to him from that provided of twelve years, to three years. “
  • (referred to in Vidur Impex and Traders Pvt. Ltd. v. Pradeep Kumar Khanna, , 2017- 241 Del LT 481)

In S. Krishnamma vs T.S. Viswajith :  2009 (4) KLT 840 it is held that Article 58 is not applicable for declaration that is sought only as an ancillary relief. It is held as under:

When a declaration regarding the void character of the document is sought for that is which would not govern the period of limitation for the suit. The consequential relief sought for is to be treated as main relief governing the period of limitation for the suit. (See Mrs. Indira Bhalchandran Gokhale Vs. Union of India & Another-AIR 1990 Bombay 98). Therefore declaration prayed for in this case as relief Nos. 1 and 2 were unnecessary, and even if made, need only be treated as ancillary to the main relief of partition of immovable properties and the claim that appellant is entitled to get family pension.

In Ashok Kumar v. Gangadhar, 2007 (2) ALD 313, 2007 (3) ALT 561 , it is held as under:

  • “If the contention of the defendants that Article 58 applies to the suit for possession based on title where declaration of title is also sought, is accepted, it would amount to ignoring the relief for recovery of possession and application of Article 65 to a suit for possession and taking away the right of the plaintiff to prove that the suit is within 12 years from the date when the possession of the defendant becomes adverse to the plaintiff.  If such a suit were to be decided with reference to Article 58 on the ground that the declaration is sought for, application of Article 65 to the suit for possession would be rendered otiose.  Such a construction would be opposed to all principles of interpretation of statutes.  Therefore different Articles of the Limitation Act will have to be interpreted harmoniously.  When such an interpretation is given to Articles 58 and 65 and when the suit is filed for declaration of title to the suit property with consequential relief of possession in my humble view Article 65 of the Limitation Act would apply and not Article 58 of the Limitation Act”.

It is held in Mechineni Chokka Rao v Sattu Sattamma, 2006 (1) ALD 116,   as under:

  • “10…. It is obvious that Article 58 is in the nature of residuary provision among the declaratory suits. Indubitably the relief of declaration can be sought for in respect of an immovable property or movable property, or in respect of an instrument, or in respect of a decree, or in respect of an adoption. Thus, various types of declaratory reliefs can be sought for pertaining to those categories. Therefore, the relief of declaration alone appears to be not the criterion for prescribing the period of limitation but the subject-matter of the suit in respect of which the declaration is sought for, appears to be germane for consideration.”
  • “13. The problem can be viewed in a different dimension. The right over an immovable property will get extinguished as can be seen from Section 27 of the Act only after the expiry of the period prescribed for filing the suit for possession as per Articles 64 and 65 of the Act. Therefore, if the period falls short of the requisite period of 12 years the right over an immovable property will not get extinguished. When the person has a right over an immovable property which right is not extinguished as yet, he can lay the suit in respect of an immovable property even praying for the relief of declaration at any time within the period of 12 years at the end of which, his right would get extinguished. When we consider this clear mandate contained in Section 27 f the Act, it becomes manifest that a declaratory relief in respect of an immovable property can be sought for at any time within the period of 12 years after which the right will get automatically extinguished, notwithstanding the fact that Article 58, the residuary Article for filing declaratory suits, prescribes a period of three years limitation. … ….”

Declaration and Recovery – Not Article 58, but Article 65 is Relevant

In Gopakumar v. Kamalakshy Purushothaman, 2019-3 KHC 478; 2019-3 Ker LJ 269 it is held as under:

  • “Article 58 of the Limitation Act would be applicable in a suit for declaration, but it has no application when the relief sought in the plaint is not for a mere declaration, but coupled with other reliefs like injunction, partition, possession etc. and Article 65 of the Limitation Act would come into play giving 12 year period. In the instant case, the relevant Article which can be applied is not Article 58, but Article 65 as the suit was filed not merely for a relief of declaration, but for declaration of title and for recovery of possession of immovable property.”

Declaration Stands as Subservient to main prayer of Recovery

In K.J. Abraham v. Mrs. Mariamma Itty, ILR 2016-3 Ker 98 (Antony Dominic & Hariprasad, JJ.), held as under:

  • “27. Article 56 of the Act deals with declaration of forgery of an instrument and Article 57 deals with matters relating to validity of an adoption. Article 58 is the residuary Article for matters not falling within Articles 56 and 57 of the Act. It is well settled that Article 58 will apply only to a suit for declaration simplicitor.
  • 30. It is clear from Article 65 of the Act that a right to recover possession of immovable property by a person on the claim of title can be defeated by another person after 12 years if only he establishes that he was holding possession of the property adverse to the person first mentioned. In other words, in a suit for recovery of possession of immovable property based on title, the question of limitation will arise only when the defendant pleads and proves adverse possession for a continuous period of 12 years. The above statement can be amplified by saying that in such a case, if the defendant fails to plead and prove adverse possession for the statutory period, there will be no bar for the plaintiff in getting recovery of possession of the property on the basis of title even after 12 years. The obvious reason is that a claim based on title paramount is a superior claim and it can be defeated only in a manner provided by law.
  • 37. Upshot of the discussion is that the above principles can be applied to the facts and circumstances of this case and therefore, it can only be held that the predominant nature of the suit is one for recovery of possession of property on the strength of title and declaration is only subservient to the main prayer. That is claimed only to dispel the cloud cast on the plaintiffs’ title. So much so, Article 58 of the Act has no application and Article 65 of the Act applies in this case.”

The Kerala High Court referred the following decisions:

  • (i) Amrendra Pratap Singh v. Tej Bahadur   Prajapati, AIR 2004 SC 3782. (Adverse possession is a fact, which is to be specifically pleaded and proved.)
  • (2) Mst. Gulkandi v. Prahlad, AIR 1968 Raj 51. (It was contended by the plaintiff that certain documents were not binding on him as he was not a party thereto. The court held that there was no necessity to cancel or set aside those documents and therefore Article 91 of the old Act was not applicable. It was also held that Article 144 of the old Act, prescribing a period of 12 years in the case of recovery of possession of property, would be applied.)
  • (3) Pavan Kumar v. K.Gopalakrishnan, AIR 1998 AP 247. (The suit was essentially and primarily a suit for possession based on title and a mere fact that a declaration of title was also sought therein did not bring it within Article 58 or Article 113 of the Act so as to attract the three years period of limitation; a formal declaration of title was sought only by way of an abundant caution.)
  • (4) Rama Pujhari v. Gouri   Bewa, AIR 2006 Ori 129. (A suit in which declaratory and recovery of possession reliefs are claimed on the basis of the contention that the impugned document was void ab initio can only be viewed as a suit predominantly for recovery of possession and Article 65 of the Act applies.) 
  • (5) Seshumull M. Shah v. Sayed Abdul Rashid, AIR 1991 Kar 273. (Article 58 of the Act will not apply for a suit for possession as a consequence of declaration.)
  • (6) State of Maharashtra v. Pravin Jethalal Kamdar, AIR 2000 SC 1099. (The fact of plaintiff having sought such a declaration (documents void) is of no consequence. Article 65 of the Limitation Act will apply.)

Plaintiff cannot be non-suited, unless the defendant proves Adv. Possession

In Indira v. Arumugam, AIR 1999 SC 1549, it was held that a plaintiff cannot be non-suited, in a suit based on title, unless the defendant proves adverse possession for the prescriptive period. It is held as under:

  • “It is, therefore, obvious that when the suit is based on title for possession, once the title is established on the basis of relevant documents and other evidence unless the defendant proves adverse possession for the prescriptive period, the plaintiff cannot be non-suited……” (Followed in:Mallavva v. Kalsammanavara Kalamma, 20 Dec 2024, 2024 INSC 1021)

Part III

Voidable transactions Requires Setting Aside.

The Supreme Court, in Prem Singh v. Birbal, AIR 2006 SC 3608, it was held that where a suit is filed for cancellation of a transaction on the ground of coercion, under influence or fraud, Article 59 of the Limitation Act would apply. (Referred to in Mohinder Singh Verma v. J P S Verma, 2015 AIR(CC) 3043).

In Narayan v. Babasaheb, (2016) 6 SCC 725, the Apex Court has observed as under:

  • “24. When once a transaction takes place in the name of the minor which is in contravention of the 1956 Act and which is not done for legal necessity, such transaction is voidable and unless such a transaction is sought to be impeached or set aside, the question of recovery of possession of that property does not arise.”

Void document – Still needs adjudication Scribe whether attesting witnesses

In a suit for partition, Ammini Kuruvila v. Kunjumol Charly, 2021-6 KHC 546; 2021-6 Ker LT 403, a gift deed executed 40 years back was challenged by the defendant saying that the (so-shown) second attesting witnesses was a scribe alone, and that he had no animus atttestandi; and thus there was noncompliance of mandate under Section 123 of the Transfer of Property Act, and the deed was void ab initio. No counter claim was raised. No suit had been instituted for declaration or for other reliefs within the time prescribed for the same. Hence it was held that the claim stood hopelessly barred even as on the date of suit of partition.  It was observed that there were lot of differences between a document which could be either avoided or ignored by the parties without the intervention of a competent court, for it was ab initio void or nullity in its very inception, and a document that needed adjudication by a competent court. 

Ab initio Void Decree or Document Declaration Sufficient

Sale by total stranger having no right

In Gopakumar v. Kamalakshy Purushothaman, 2019-3 KHC 478; 2019-3 Ker LJ 269 it is held that when a document is executed by a total stranger having no right, title or interest over the property or by a co-owner transferring the interest of other co-owners without any authority, there is no necessity to sue for setting aside the document or its cancellation, but a suit for declaration of title would be sufficient.

A sale deed executed by a stranger to the property is void an initio. It need not be cancelled or set aside. A suit for declaration will be sufficient.

In Prem Singh v. Birbal, AIR 2006 SC 3608: (2006) 5 SCC 353, the Supreme Court held as under:

  • “16. When a document is valid, no question arises of its cancellation. When a document is void ab initio, a decree for setting aside the same would not be necessary as the same is non-est in the eye of law, as it would be a nullity.”

 In Sukhlal v. Devilal, 1954 RajLW 136, Wanchco C.J. held as under:

  • “There is a difference between a suit for the cancellation of an instrument and one for a declaration that the instrument is not binding on the plaintiff, when the plaintiff seeks to establish, a title in himself and cannot establish that title without removing an insuperable obstacle such as a decree or a deed to which he has been a party or by which he is otherwise bound then quite clearly he must get that decree or deed cancelled or declared void in toto and his suit is in substance a suit for the cancellation of the decree or deed notwithstanding the fact that the suit may have been framed as a suit for a declaration. On the other hand, when the plaintiff is seeking to establish a title and finds himself threatened by a decree or a transaction between third parties, he is not in a position to get that decree or deed cancelled in toto. The proper remedy in such a case is to get a declaration that the decree or deed is invalid so far as he himself is concerned, and, therefore, he may sue for a declaration to that effect and not for the cancellation of the decree or the deed.” [See:’ Vellayya Konar v. Ramaswami Konar’ (AIR 1939 Mad 894)].

Pragnya Rout v. Hemaprava Ray, AIR 2006 Ori 21, it is held as under:-

  •  “22. Law is well settled that a decree and/or a registered document which is otherwise ab initio void need not be set aside. Such decree does not strip the right of a party who is the real owner and was not a signatory to the document in question or a party to the suit. It is not the law that merely because somebody has obtained a sale deed he has got title to the property as vendee and his title has to be declared so long as the deed has not been set aside by a competent Court of law. If the deed is void at the threshold, no steps need be taken to set it aside. The vendor may not have title to convey, and in such a case the title deed conveys no title and can be ignored as not worth the paper written on. (See: Sarbeswar v. Commissioner, Consolidation, (1992) 2 Ori LR 362.) In view of such position of law, the argument advanced by Mr. P. Mohanty, learned counsel for the appellant, that the suit is not maintainable in the absence of a prayer to set aside the subsequent sales cannot be accepted.” Quoted inGulam Mustafa v. Md.  Yusuf Ansari, 2019-1 Jhk CR 83.

Document void ab initio – No need to Cancel – Contract by minor or insane person

In RD Somasundaram Pillai, by next friend S. Bhuaneswar v. S. Janaki Ammal, 1955-1 MLJ 310, it was observed that a contract by a person of unsound mind is void as that of a minor’s contract. Both are void ab initio and there is no need therefore in any suit or proceeding where such persons seek relief to have the cancellation of such a document. They might ignore the existence of such a document as being void and of no effect and proceed to establish their right to other reliefs consequent on the transaction being void. (Also see: J. Kasthuri v. Seth Ghanshamdas Vonsimal Deva Bank, 1979-2 MLJ 11)

Limitation for Setting AsideVoid from inception – No Limitation

In view of Section 12 of the Indian Contract Act, the act of disposition or contract will be void for want of competency to contract, due to the un-soundness of mind, from its very inception. In Musammat Amina Bibi v. Saiyid Yusuf .70 Ind Cas 968: ILR (1922) 44 All 748, it was held that no question of limitation arises in such a matter because it was void from its very inception.

When plaintiff not a party, no need to seek declaration or cancellation or setting aside.

In Natesan v. Pushpavalli, 2013 5 MLJ 613, it is observed that it is a settled law that when the plaintiff was not a party to the deeds, he was not enjoined as per law to seek for either declaration of those deeds as void or for cancellation or setting aside those deeds.

Proper Court Fee – For Setting Aside/Cancelling Decree or Document

The Supreme Court, in Md. Noorul Hoda v. Bibi Raifunnisa , JT 1995 (9) SC 256, referred to Section 31 of the Specific Relief Act, 1963 which relates to cancellation of instruments, and observed that the plaintiff was required to seek a declaration of setting aside of such a document. (This decision was distinguished on facts in Gulab Singh v. Hari Singh, 2011-177 DLT 21.)

In Devaki v. Manickam, 2020-1 MLJ 567, the plaint contained a prayer for a declaration that the decree in an earlier suit, wherein the first plaintiff was a party to that suit, is null and void. It is observed that the relief that should have been sought for by the plaintiff was to set aside or cancel the decree and not for a declaration as such.

In Chellakannuv. Kolanji (R. Banumathi, J.), AIR 2005 Mad 405, it is observed as under:

  • “12. The word “Cancellation” implies that the persons suing should be a party to the document. Strangers are not bound by the documents and are not obliged to sue for cancellation. When the party to the document is suing, challenging the document, he must first obtain cancellation before getting any further relief. Whether cancellation is prayed for or not or even it is impliedly sought for in substance, the suit is one for cancellation. In the present case, when the Plaintiff attacks the Sale Deeds as having been obtained from him under fraud and mis-representation the Plaintiff cannot seek for any further relief without setting aside the Sale Deeds.”

In this case the High Court directed the plaintiff to pay the Court Fee that is provided for ‘cancellation’ of the document.

Lahore High Court in Prithvi Raj v. D. C. Ralli, AIR 1945 Lah 13, it was held that in a suit by the son for a declaration that the mortgage decree obtained against his father was not binding upon him it was essential for the son to ask for setting aside of the decree as a consequence of the declaration claimed and to pay ad valorem court fee under s. 7(iv)(c). It was pointed out that a decree against the father was a good decree against the, son and unless the decree is set aside it would remain executable against the son, and it was essential for the, son to ask for setting aside the decree. (Referred to in Balasubramaniam VS Masilamani, 2011 4 CTC 307.)

It is trite law that where the relief sought for is, in substance, setting aside a decree, or cancelling a deed, or for a declaration with a consequential relief of cancellation or setting aside or injunction,  ad valorem court-fees is payable. (See: Shamsher Singh v. Rajinder Prashad, AIR 1973 SC 2384; Israt Jahan v. Rajia Begum, AIR 2010 MP 36; Kamal Kishore v. Jagannath Prasad. 2005-2 MPWN 43. Bombay Ammonia Pvt. Ltd Vs Raj Kumar, 2005-1 AD (Del) 221; 2005-82 DRJ 104; ILR 2004-13 Dlh 836.)

Similarly, where the plaint has been drafted to look as if the relief is of declaration whereas in fact the relief claimed is for the cancellation of decree and sale deeds, in the absence of cancellation of decree and the sale deed the relief claimed by the petitioner for possession by way of partition cannot be granted (Bijender Singh v. Chand Singh, 2009-1 Puj. LR 586; 2009-1 RCR(Civ) 270).

In Shamsher Singh v. Rajinder Prashad, AIR 1973 SC 2384, it was held that in ad valorem court fee would be necessary when the plaintiffs sued for a declaration that the decree obtained by the appellant against their father was not binding on them. It was held as under:

  • “4. As regards the main question that arises for decision it appears to us that while the court-fee payable on a plaint is certainly to be decided on the basis of the allegations and the prayer in the plaint and the question whether the plaintiff’s suit will have to fail for failure to ask for consequential relief is of no concern to the court at that stage the court in deciding the question of court-fee should look into the allegations in the plaint to see what is the substantive relief that is asked for Mere astuteness in drafting the plaint will not be allowed to stand in the way of the court looking at the substance of the relief asked for. In this case the relief asked for is on the basis that the property in dispute is a joint Hindu family property and there was no legal necessity to execute the mortgage. It is now well settled that under Hindu Law if the manager of a joint family is the father and the other members are the sons the father may by incurring a debt so long as it is not for an immoral purpose, lay the joint family estate open to be taken in execution proceedings upon a decree for the payment of the debt not only where it is an unsecured debt and a simple money decree for the debt but also to a mortgage debt which the father is personally liable to pay and to a decree for the recovery of the mortgage debt by the sale of the property even where the mortgage is not for legal necessity or for payment of antecedent debt (Faqior Chand v. Harnam Kaur, AIR 1966 SC 727. Consequently when the plaintiffs sued for a declaration that the decree obtained by the appellant against their father was not binding on them they were really asking either for setting aside the decree or for the consequential relief of injunction restraining the decree holder from executing the decree against the mortgaged property as he was entitled to do.
  • This aspect is brought out in a decision of the Full Bench of the Lahore High Court. in Mt. Zeb-ul-Nisa v. Din Mohammad, AIR 1941 Lah 97 (FB) where it was held that:
    • “The mere fact that the relief as stated in the prayer clause is expressed in a declaratory form does not necessarily show that the suit is for a mere declaration and no more. If the relief so disclosed is a declaration pure and simple and involves no other relief, the suit would fall under Article 17 (iii).”        

The Apex Court held further as under:

  • “In that case the plaintiff had sued for a twofold declaration: (i) that the property described in the plaint was a waqf, and (ii) that certain alienations thereof by the mutwali and his brother were null and void and were ineffectual against the waqf property. It was held that the second part of the declaration was tantamount to the setting aside or cancellation of the alienations and therefore the relief claimed could not be treated as a purely declaratory one and inasmuch as it could not be said to follow directly from the declaration sought for in the first part of the relief, the relief claimed in the case could be treated as a declaration with a “consequential relief.” It was substantive one in the shape of setting aside of alienations requiring ad valorem court-fee on the value of the subject matter of the sale, and even if the relief sought for fell within the purview of S. 7 (iv) (c) the plaintiffs in view of Sections 8 and 9 Suits Valuation Act, having, already fixed the value of the relief in the plaint for purposes of jurisdiction were bound to fix the same value for purposes of court-fee. It was also pointed out that in deciding whether a suit is a purely declaratory, the substance and not merely the language or the form of the relief claimed should be considered. The court also observed:
    • “It seems to me that neither the answer to the question whether the plaintiff is or is not a party to the decree or the deed sought to be declared as null and void, nor to the question whether the declaration sought does or does not fall within the purview of S. 42, Specific Relief Act, furnishes a satisfactory or conclusive test for determining the court fee payable in the suit of this description. When the plaintiff is a party to the decree or deed, the declaratory relief, if granted, necessarily relieves the plaintiff of his obligations under the decree or the deed and, hence it seems to have been held in such cases, that the declaration involves a consequential relief. In cases where the plaintiff is not a party to the decree or the deed, the declaratory relief does not ordinarily include any such consequential relief. But there are exceptional cases in which the plaintiff though not a party to the deed or the decree is nevertheless bound thereby. For instance, when a sale or mortgage of joint family property is effected by a manager of a joint Hindu family, the alienation is binding on the other members of the family (even if they are not parties to it) until and unless it is set aside. Similarly, a decree passed against the manager will be binding on the other members of the family. If therefore a coparcener sues for a declaration that such an alienation or decree is null and void, the declaration must I think be held to include consequential relief in the same way as in those cases in which the plaintiff is himself a party to the alienation or the decree, which is sought to be declared null and void. The case dealt with in AIR 1936 Lah 166 seems to have been of this description. The case of an alienation by a mutwalli of waqf property would also appear to stand on a similar footing. In the case of waqf property, it is only the trustee or the mutwalli who can alienate the property. If he makes an alienation it is binding on all concerned, until and unless it is set aside. If therefore a person sues to get such an alienation declared null and void, he can only do so by getting the deed invalidated. The relief claimed in such cases also may therefore be found to include a consequential relief.”

The Supreme Court continued as under:

  • “The decision of the Lahore High Court in Prithvi Raj v. D. C. Ralli, AIR 1945 Lah 13 is exactly in point. It was held that in a suit by the son for a declaration that the mortgage decree obtained against his father was not binding upon him it is essential for the son to ask for setting aside of the decree as a consequence of the declaration claimed and to pay ad valorem court fee under Section 7 (iv) (c). It was pointed out that a decree against the father is a good decree against the son and unless the decree is set aside it would remain executable against the son and it was essential for the son to ask for setting aside the decree. In Vinayakrao v. Mankunwarbai, AIR 1943 Nag 70 it was held that in a suit by the son for a declaration that decree against the father does not affect his interests in the family property, consequential relief is involved and ad valorem court fee would be necessary.” Referred to in Balasubramaniam VS Masilamani, 2011 4 CTC 307; Prashant Glass Works Limited v. Bank of Baroda, 2011-4 ADJ 423; 2011-86 All LR 372; Bijender Singh v. Chand Singh, 2009-1 PLR 586; 2009-1 RCR(Civ) 270; Bijender Singh v. Chand Singh, 2009-1 Puj. LR 586; 2009-1 RCR(Civ) 270)

Title Declaration – Plaintiff to succeed on the strength of his own title

In Jagdish Prasad Patel v. Shivnath, (2019) 6 SCC 82, our Apex Court explained the well accepted principle that in a suit for declaration of title and possession, ‘the plaintiffs will succeed on the strength of their own title irrespective of whether defendants proved their case or not’ in the following words:

  • “44. In the suit for declaration for title and possession, the Plaintiffs-Respondents could succeed only on the strength of their own title and not on the weakness of the case of the Defendants-Appellants. The burden is on the Plaintiffs-Respondents to establish their title to the suit properties to show that they are entitled for a decree for declaration. The Plaintiffs-Respondents have neither produced the title document i.e. patta-lease which the Plaintiffs-Respondents are relying upon nor proved their right by adducing any other evidence. As noted above, the revenue entries relied on by them are also held to be not genuine. In any event, revenue entries for few Khataunis are not proof of title; but are mere statements for revenue purpose. They cannot confer any right or title on the party relying on them for proving their title.
  • 45. Observing that in a suit for declaration of title, the Plaintiffs- Respondents are to succeed only on the strength of their own title irrespective of whether the Defendants-Appellants have proved their case or not, in Union of India v. Vasavi Coop. Housing Society Limited, (2014) 2 SCC 269, it was held as under SCC p.275, para 15) “15. It is trite law that, in a suit for declaration of title, the burden always lies on the Plaintiff to make out and establish a clear case for granting such a declaration and the weakness, if any, of the case set up by the Defendants would not be a ground to grant relief to the Plaintiff.”” (referred to in A. Subramanian v. R. Pannerselvam, AIR 2021 SC 821.)

In Union of India v. Vasavi Co-op. Housing Society Ltd, 2014 AIR SCW 580, it is held as under:

  •  “The legal position, therefore, is clear that the plaintiff in a suit for declaration of title and possession could succeed only on the strength of its own title and that could be done only by adducing sufficient evidence to discharge the onus on it, irrespective of the question whether the defendants have proved their case or not. We are of the view that even if the title set up by the defendants is found against, in the absence of establishment of plaintiff’s own title, plaintiff must be non-suited.” (Quoted in: Gulam Mustafa v. Md.  Yusuf Ansari, 2019-1 Jhk CR 83)

Temporary Injunction is Issued to Preserve Status Quo; and, not to perpetuate illegality

In Seema Arshad Zaheer VS Municipal Corporation of Greater Mumbai, 2006 5 SCC 282, our Apex Court held as under:

  • “It is true that in cases relating to orders for demolition of buildings, irreparable loss may occur if the structure is demolished even before trial, and an opportunity to establish by evidence that the structure was authorized and not illegal. In such cases, where prima facie case is made out, the balance of convenience automatically tilts in favour of plaintiff and a temporary injunction will be issued to preserve status quo. But where the plaintiffs do not make out a prima facie case for grant of an injunction and the documents produced clearly show that the structures are unauthorized, the court may not grant a temporary injunction merely on the ground of sympathy or hardship. To grant a temporary injunction, where the structure is clearly unauthorized and the final order passed by the Commissioner (of the Corporation) after considering the entire material directing demolition, is not shown to suffer from any infirmity, would be to encourage and perpetuate an illegality.”

If it is Logically Impossible to Ask for Cancellation, can Seek Declaration

It is said in Hussain Ahmed Choudhury v. Habibur Rahman, 23 April, 2025, 2025 INSC 553, as under:

  • “33. In fact, it is logically impossible for a person who is not a party to a document or to a decree to ask for its cancellation. This is clearly explained by Wadsworth, J., in the decision rendered in Vellayya Konar v. Ramaswami, 1939 SCC OnLine Mad 149, (1939) 2 MLJ 400, AIR 1939 Mad 894, thus:
  • When, the plaintiff seeks to establish a title in himself and cannot establish that title without removing an insuperable obstruction such as a decree to which he has been a party or a deed to which he has been a party, then quite clearly he must get that decree or deed cancelled or declared void ‘in toto’, and his suit is in substance a suit for the cancellation of the decree or deed even though it be framed as a suit for declaration. But when he is seeking to establish a title and finds himself threatened by a decree or a transaction between third parties, he Is not in a position to get that decree or that deed cancelled ‘in toto’. That is a thing which can only be done by parties to the decree or deed or their representatives. His proper remedy, therefore in order to clear the way with a view to establish his title, is to get a declaration that the decree or deed is invalid so far as he himself is concerned and he must therefore sue for such a declaration and not for the cancellation of the decree or deed.”
  • 34. Therefore, filing a suit for cancellation of a sale deed and seeking a declaration that a particular document is inoperative as against the plaintiff are two distinct, separate suits. The plaintiff in the present case, not being the executant of the sale deed dated 05.05.1997 executed in favour of the respondent no. 1, was therefore, not obligated to sue for its cancellation under Section 31 of the Act, 1963. The question that remains is whether the plaintiff ought to have sought for a declaration that the sale deed dated 05.05.1997 was inoperative in so far as he is concerned or is not binding on him.”

Declaration Of Title Is As Good As A Relief Of Cancellation Of The Sale Deed

In Hussain Ahmed Choudhury v. Habibur Rahman, 23 April, 2025, 2025 INSC 553, it is held further as under:

  • “36. Therefore, the High Court having concurred with the Courts below on the legality and validity of the Gift Deed should not have dismissed the suit only on the ground that the plaintiff failed to pray for cancellation of the sale deed. The High Court should have kept the settled position of law in mind that the declaration of title is as good as a relief of cancellation of the sale deed or at least, a declaration that the sale deed is not binding on the plaintiff being void and thus non est.”

Proper Reliefs Can Be GrantedThough Not Directly Or Specifically Claimed

In Hussain Ahmed Choudhury v. Habibur Rahman, 23 April, 2025, 2025 INSC 553, it is held further as under:

  • “37. Furthermore, it is a well-known and settled principle of law that the plaint must be read as a whole and the actual relief sought can also be culled out from the averments of the plaint. Those reliefs can be granted, if there is evidence and circumstances justifying the grant of such relief, though not directly or specifically claimed, or asked as a relief. The plaintiff had averred in his plaint that the original defendant nos. 1 to 6 had no title or saleable rights over the suit property. This reflects the intention of the plaintiff to not be bound by any instrument which they may have executed in favour of another party.”

S. 34 Not Exhaustive; In appropriate cases declarations granted outside S. 34

In Hussain Ahmed Choudhury v. Habibur Rahman, 23 April, 2025, 2025 INSC 553, it is held further as under:

  • “38. Courts have ample inherent powers and indeed it is their duty to shape their declaration in such a way that they may operate to afford the relief which the justice of the case requires. Section 34 of the Act, 1963 is not exhaustive of the cases in which a declaratory decree may be made and the courts have power to grant such a decree independently of the requirements of the Section. Section 34 merely gives statutory recognition to a well-recognised type of declaratory relief and subjects it to a limitation, but it cannot be deemed to exhaust every kind of declaratory relief or to circumscribe the jurisdiction of courts to give declarations of right in appropriate cases falling outside Section 34. The circumstances in which a declaratory decree under Section 34 should be awarded is a matter of discretion depending upon the facts of each case. [See: Supreme General Films Exchange Ltd. v. His Highness Maharaja Sir Brijnath Singhji Deo of Maihar and Ors., reported in (1975) 2 SCC 530]”


End Notes

Relevant Provisions of the Specific Relief Act

 S.2 (a)ObligationObligation” includes every duty enforceable by law
S.4Specific reliefSpecific relief to be granted only for enforcing individual civil rights and not for enforcing penal laws: Sp. relief can be granted only for the purpose of enforcing individual civil rights and not for the mere purpose of enforcing a penal law.
S.34Declaration  Discretion of court as to declaration of status or right. Any person entitled to any legal character, or to any right as to any property, may institute a suit against any person denying, or interested to deny, his title to such character or right, and the court may in its discretion make therein a declaration that he is so entitled, and the plaintiff need not in such suit ask for any further relief:  Provided that no court shall make any such declaration where the plaintiff, being able to seek further relief than a mere declaration of title, omits to do so. Explanation.-A trustee of property is a “person interested to deny” a title adverse to the title of someone who is not inexistence, and for whom, if in existence, he would be a trustee.
    S.36 Preventive relief how granted.- Preventive relief is granted at the discretion of the court by injunction, temporary or perpetual.
  S.38 Perpetual injunction  Perpetual injunction when granted (1) Subject to the other provisions contained in or referred to by this Chapter, a perpetual injunction may be granted to the plaintiff to prevent the breach of an obligation existing in his favour, whether expressly or by implication. (2) When any such obligation arises from contract, the court shall be guided by the rules and provisions contained in Chapter II. (3) When the defendant invades or threatens to invade the plaintiff’s right to, or enjoyment of, property, the court may grant a perpetual injunction in the following cases, namely:-         (a) where the defendant is trustee of the property for the plaintiff;         (b) where there exists no standard for ascertaining the actual damage caused, or likely to be caused, by the invasion;          (c) where the invasion is such that compensation in money would not afford adequate relief;          (d) where the injunction is necessary to prevent a multiplicity of judicial proceedings.
S.39Mandatory injunctionsMandatory injunctions: When, to prevent the breach of an obligation, it is necessary to compel the performance of certain acts which the court is capable of enforcing, the court may in its discretion grant an injunction to prevent the breach complained of, and also to compel performance of the requisite acts.
S.41Injunction when refused  Injunction when refused: An injunction cannot be granted- (a) to restrain any person from prosecuting a judicial proceeding …..; (b) to restrain instituting …  any proceeding in a court not sub-ordinate … (c) to restrain any person from applying to any legislative body (d) to restrain – proceedings in a criminal matter; (e) prevent breach of contract performance of which not be specifically enforced; (f) to prevent – an act of which it is not reasonably clear that it will be a nuisance; (g) to prevent a continuing breach in which the plaintiff has acquiesced; (h) when equally efficacious relief can certainly be obtained …. except in case of breach of trust; [(ha) if it would impede or delay the progress or completion of infrastructure project or interfere with the continued provision of relevant facility …..] (i) when the conduct of the plaintiff or his agents …. disentitle him to be the assistance of the court; (j) when the plaintiff has no personal interest in the matter.

Limitation

Articles 58 and 59 of the Limitation Act deal with limitation for declaration and cancellation. It reads as under:

S. No.Description of the suitPeriod of limitationTime from which period begins to run
58.To obtain any other declarationThree YearsWhen the right to sue first accrues
59  To cancel or set aside an instrument or decree or for rescission of a contract.  Three Years    When the facts entitling the plaintiff to have the instrument or decree cancelled or set aside or the contract rescinded first become known to him.

Two Apparently Contradictory Decisions

In the earlier decision in Hussain Ahmed Choudhury  v. Habibur Rahman, 2025 SCC OnLine SC 892(J.B. Pardiwala, R. Mahadevan JJ.), it was clearly opined-

  • (i) that a plaintiff who was not a party to the instrument need not seek its cancellation; and
  • (ii) in a situation where the plaintiff was not a party to the instrument, a declaration must have been sought to the effect that the said instrument was not binding on the plaintiff.

Howeverin the subsequent decision in Shanti Devi v. Jagan Devi, 2025 INSC 1105 (J.B. Pardiwala, R. Mahadevan JJ.)it is clarified that where the character of a sale deed isassailed as being fraudulent, the requirement of seeking declaration ‘that the said instrument was not binding on the plaintiff’is implicitly satisfied. It is pointed out that ‘the very averment that the sale deed was fraudulent or a sham and bogus transaction by itself indicated that the plaintiff did not intend to be bound by it’. As a consequence,

  • it was not necessary to specifically claim a declaration as regards the sale deeds that the said instrument was not binding, and
  • a document which is void need not be challenged by claiming a declaration (that the said instrument is not binding) as the said plea can be set up and proved even in collateral proceedings.

Subsequent Decision Vividly Explained the Legal Position

In Shanti Devi (Since Deceased) v. Jagan Devi,  2025 INSC 1105, on 12 September, 2025, it is held as under:

  • “25. Thecrux of the issue seems to be whether it isArticle 65 or Article 59 of the Schedule to the Limitation Act, 1963, which would apply to the present facts in hand.”
  • “28. In State of Maharashtra v. Pravin Jethalal Kamdar reported in 2000 SCC OnLine SC 522, this Court held that as far as void and non-est documents are concerned, it would be enough for the plaintiff to file a simpliciter suit for possession to which Article 65 of the Limitation Act, 1963 would apply.”
  • “Subsequently, the decision of this Court in Bhim Singhji v. Union of India reported in (1981) 1 SCC 186 … opined as follows:
    • .i. First, the contention of the State that it is Article 58 of the Limitation Act, 1963 that would apply, was rejected. It was held that the suit is primarily one for possession of property based upon title. It was observed that owing to the decision in Bhim Singhji (supra), the order … became void ab intio and without jurisdiction. Therefore, it was not necessary for the plaintiff to claim any separate declaration that they are void. The plea about their invalidity could be raised in the course of any proceedings. Therefore, it is Article 65, which deals with a suit for possession based on title, that would apply…
  • ii. Secondly, though the plaintiff sought a declaration that the order dated 26.05.1976 and the sale deed dated 23.08.1976 were void, yet it was held that the same would be of no consequence insofar as the question of limitation is concerned.”
  • “The fact would still remain that the possession of the property was taken by the defendants viavoid documents. Therefore, such documents could be ignored and a suit for possession simpliciter for which the period of limitation prescribed under Article 65, i.e., 12 years, could be filed. In the course of such proceedings, it could be contended by the plaintiff that the documents are a nullity.”
  • “29. This Court in Prem Singh v. Birbal reported in (2006) 5 SCC 353, discussed the position of law as to when Article 59 of the Limitation Act, 1963 would apply and opined as follows:
  • .i. First, that Article 59 of the Limitation Act, 1963 would only encompass within its fold fraudulent transactions which are ‘voidable’ transactions and not those that are ‘void’. In other words, Article 59 would apply only where an instrument is prima facie valid and not to those instruments which are presumptively invalid.
    • ii. Secondly, that when the document in question is void ab initio/or void, a decree for setting aside the same would not be necessary since such a transaction would be non-est in the eyes of law, owing to it being a nullity.
    • iii. Thirdly, a fine distinction was drawn between fraudulent misrepresentation as regards the ‘character of the document’ and fraudulent misrepresentation as regards the ‘contents of a document’. It is only in the former situation that the instrument would be void and, in the latter, it would remain voidable. To put it simply, Article 59 would not govern the period of limitation in respect of a void transaction.
    • iv. Lastly, that if a deed was executed by the plaintiff when he was a minor and it was thereby void, he had two options to file a suit to get the property conveyed thereunder i.e., he could either file the suit within 12 years of the deed or within 3 years of attaining majority.”
  • “30. In the decision of this Court in Hussain Ahmed Choudhury v. Habibur Rahman reported in 2025 SCC OnLine SC 892, where one of us, J.B. Pardiwala J., was a member of the Bench, it was reiterated  that a person who is not a party to an instrument would not be obliged in law to seek its cancellation. The reason being that such an instrument would neither be likely to affect his title nor be binding on him. However, such a plaintiff must at least seek a declaration that the said instrument is not binding on him or that is invalid insofar as he is concerned. ………
  • “31. As per the dictum in Prem Singh (supra), this Court, in order to ascertain whether Article 65 of the Limitation Act, 1963 would apply to the present factual scenario, has to first determine whether the fraud was alleged as regards the contents of the sale deed dated 14.06.1973 or the character of such sale deed. Both the First Appellate Court as well as the High Court have arrived at the finding that the plaintiff had never executed the said sale deed in the first place as it was proved that it was not her thumb impression that was affixed therein. Therefore, this finding goes to the character of the sale deed and thereby, renders it void/void ab initio. Hence, as per this decision, there remained no reason for the plaintiff to seek for its cancellation. The original sale deed also was not produced before the Trial Court by the defendants in order to rebut the doubt cast upon the veracity of the said sale deed. Consequently, Article 59 of the Limitation Act, 1963 would find no application to the case in hand.
  • 32. In Hussain Ahmed Choudhury (supra), it was clearly opined that a plaintiff who is not a party to the instrument in question need not seek its cancellation. We are not oblivious to the fact that in a situation where the plaintiff was not a party to the instrumentthe said decision laid down a requirement that a declaration must be sought to the effect that the said instrument was not binding on the plaintiff.
  • Howeverthe said decision clarified that whether the plaintiff has sought such a declaration or not could be culled out from a holistic reading of the plaint along with the relief(s) sought. In cases where the character of the sale deed is assailed as being fraudulent, this requirement is implicitly satisfied since the very averment that the sale deed was fraudulent or a sham and bogus transaction by itself indicates that the plaintiff did not intend to be bound by it. Therefore, this requirement too, could be said to have been satisfied by the plaintiff in the present case.
  • Thus, the sale deeds of 10-4-1981 will not confer any right, title and interest on Sudarshan Kumar’s wife and children as the sale deeds will have to be ignored being void. It was not necessary for the appellant to specifically claim a declaration as regards the sale deeds by way of amendment to the plaint. The reason being that there were specific pleadings in the plaints as originally filed that the sale deeds were void. A document which is void need not be challenged by claiming a declaration as the said plea can be set up and proved even in collateral proceedings.”


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Book No, 1 – Civil Procedure Code

Power of attorney

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Principles and Procedure

Land LawsTransfer of Property Act

Evidence Act – General

Contract Act

Easement

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Will

Divorce

Book No. 2: A Handbook on Constitutional Issues

Book No. 3: Common Law of CLUBS and SOCIETIES in India

Book No. 4: Common Law of TRUSTS in India

Can Legislature Overrule Court Decisions by an Enactment?

Saji Koduvath, Advocate, Kottayam.

Introduction.

Our Constitutional jurisprudence accredits supremacy to the Constitution of India. The rationale of this proposition is that one among the three constitutionally recognised domains of authority, viz. Legislature, Executive and Judiciary, cannot encroach upon realm of another.[1]  Thereby, the court is the final authority to declare and interpret law, and it is not open to the legislature to simply brush aside findings of a court of law.

Following are the important decisions on this field:

  • Janapada Sabha Chhindwara v. Central Provinces Syndicate: AIR 1971 SC 57;
  • In Re Cauvery Water Disputes Tribunal: AIR 1992 SC 522;
  • State of Haryana v. Karnal Co-op. Farmers’ Society: AIR 1994 SC 1;
  • M. P. Ram Mohan Raja v. State of T. N AIR 2007  SC 1742;
  • S.T. Sadiq Vs. State of Kerala, (2015) 4 SCC 400;
  • Goa Foundation v. State of Goa: AIR 2016 SC 1653;
  • Binoy Viswam v. Union of India: AIR 2017  SC 2967;
  • Medical Council of India v. State of Kerala: AIR 2018 SC 5041;
  • Hindustan Construction Co. v. Union of India: AIR 2020 SC 122;
  • Dashrath Rupsingh Rathod v. State of Maharashtra, AIR 2014 SC 3519;
  • Madras Bar Association v. Union of India 2021 SCC Online SC 463;
  • Dr. Jaya Thakur Vs. Union of India (2023).

Also Read: Judicial & Legislative Activism in India: Principles and Instances

No Legislation Can Nullify a Judicial Pronouncement

No legislation can nullify a judicial pronouncement of a court of law, in the following instances:

First, ‘Individual decisions, inter-parties‘: That is, it is not open to the legislature to directly annul a judgment of a court [2] (other than altering the very basis of such earlier decision, as stated below). It is also trite law that the rights and liabilities accrued by a person or a group of persons under a judgment cannot be deprived of such rights and liabilities by a subsequent legislative act[3]. In other words, ‘under our Constitution no Legislature has the power to abrogate civil courts’ decrees or orders or judicial adjudications by merely declaring, under a law made by it, that such decrees or orders or adjudications are no longer valid or binding on the parties, for such power of declaration would be a judicial function which cannot be encroached upon by a Legislature’[4]

Second, Judgments that interpret the law: [5][Medical Council of India Vs. State of Kerala (2018), Janapada Sabha Chhindwara Vs. Central Provinces Syndicate (1970) ].

The  act of the legislature that amounts to exercising the judicial power, and the function of the legislature as an appellate court or tribunal, will be against the concept of separation of powers [6][In Re Cauvery Water Disputes Tribunal (1992); Medical Council of India Vs. State of Kerala (2018)].

Legislature Cannot take away what is granted in implementation by Court’s decision

In Virender Singh Hooda v. State of Haryana, (2004) 12 SCC 588, our Apex Court did not accept the contention that vested rights cannot be taken away by retrospective legislation. However, it was observed that taking away of such rights would be impermissible if there is violation of Articles 14, 16 or any other constitutional provision. The appointments already made in implementation of a decision of this Court were protected with the reason that “the law does not permit the legislature to take away what has been granted in implementation of the Court’s decision. Such a course is impermissible.” (See: Madras Bar Association v. Union of India 2021 SCC Online SC 463, L. Nageswara Rao, J.)

Read Blog: Doctrines on Ultra Vires and Removing the BASIS of the Judgment, in ED Director’s Tenure Extension Case (Dr. Jaya Thakur Vs. Union of India)

How Can Legislature Interfere with a Judgment

It is open for the legislature, in a limited sphere, to interfere with the judicial pronouncements.  The legal principles in this realm can be presented as under:

(i) If the decision of a Court is based on an enacted law which stood when the decision was arrived at,[7] it is open to the legislature to enact a fresh law, or amend the existing law, with retrospective effect, which may fundamentally[8] alter the very basis[9] of such earlier decision, and it can be sought to be applied in the appeal from such judgment.

(ii) Further, such changed or amended law should be one that can be applied ‘in general’, which would affect a class of persons and events at large; that is, it should not be for changing a particular court-decision inter-parties [10]. In State of Haryana v. The Karnal Co-op.Farmers’ Society Limited (1994),[11] it was held by the Supreme Court that ‘under our Constitution no Legislature has the power to abrogate civil courts’ decrees or orders or judicial adjudications by merely declaring, under a law made by it, that such decrees or orders or adjudications are no longer valid or binding on the parties, for such power of declaration would be a judicial function which cannot be encroached upon by a Legislature’.  It was found that where a civil court found, in a decree, that certain immovable properties fell outside “shamilat deh” regulated by an enactment, subsequent amendment made to the law by the legislature directing the Assistant Collector to decide the claim by ignoring the decree was unconstitutional as it encroached upon judicial power.

(iii)  It is open to the legislature to remove causes of ineffectiveness or invalidity[12] of a particular legislation in the existing law, or to remove the defect which the courts had found or pointed out.[13] It can also be done to validate[14] a particular law or for the implementation of the purpose sought to be achieved by the enactment.[15] Here also, the new law or amendment should not transgress the constitutional limitations.[16]

(iv) It is also open to the legislature to codify what was stated in a decision, as done in the Muslim Women (Protection of Rights on Divorce) Act, 1986, after Shah Bano Case.[17] In Danial Latifi Vs. Union of India[18] the Supreme Court held that the Act ‘actually and in reality’ codified what was stated in Shah Bano Case. (It had been criticised that the Indian Parliament, by the 1986 Act, ‘reversed’ the judgment in Shah Bano Case or at least it was ‘diluted’.)

Change of Law and Res judicata

When the law has been changed, subsequent to a decision rendered by a Court, it is held in Alimunnissa Chowdharani v. Shyam Charan Roy, 1905-1 CLJ 176, that the earlier decision would not operate as res judicata.

In Mathura Prasad Bajoo Jaiswal v. Dossibai N.B. Jeejeebhoy, 1970-1 SCC 613, it is observed that when the law has undergone a change, there would be no question of res judicata or constructive res judicata. It is observed as under:

  • “5. But the doctrine of res judicata belongs to the domain of procedure: it cannot be exalted to the status of a legislative direction between the parties so as to determine the question relating to the interpretation of enactment affecting the jurisdiction of a Court finally between them, even though no question of fact or mixed question of law and fact and relating to the right in dispute between the parties has been determined thereby. A decision of a competent Court on a matter in issue may be res judicata in another proceeding between the same parties: the “matter in issue” may be an issue of fact, an issue of law, or one of mixed law and fact. An issue of fact or an issue of mixed law and fact decided by a competent court is finally determined between the parties and cannot be reopened between them in another proceeding. The previous decision on a matter in issue alone is res judicata: the reasons for the decision are not res judicata. A matter in issue between the parties is the right claimed by one party and denied by the other, and the claim of right from its very nature depends upon proof of facts and application of the relevant law thereto. A pure question of law unrelated to facts which give rise to a right, cannot be deemed to be a matter in issue. When it is said that a previous decision is res judicata, it is meant that the right claimed has been adjudicated upon and cannot again be placed in contest between the same parties. A previous decision of a competent Court on facts which are the foundation of the right and the relevant law applicable to the determination of the transaction which is the foundation of the right and the relevant law applicable to the determination of the transactions which is the soured of the right is res judicata. A previous decision on a matter in issue is a composite decision: the decision of law cannot be dissociated from the decision on facts on which the right is founded. A decision on an issue of law will be as res judicata in a subsequent proceeding between the same parties, if the cause of action of the subsequent proceeding be the same as in the previous proceeding, but not when the cause of action is different, nor when the law has since the earlier decision been altered by a competent authority, nor when the decision relates to the jurisdiction of the Court to try the earlier proceeding, nor when the earlier decision declares valid a transaction which is prohibited by law. …….
  • 7. Where the law is altered since the earlier decision, the earlier decision will not operate as res judicata between the same, parties: Tarini Charan Bhattacharjee’s case. It is obvious that the matter in issue in a subsequent proceeding is not the same as in the previous proceeding, because the law interpreted is different.”

Legislation that Nullifies Judicial Verdict is an ‘Invitation to Lawlessness’

Cauvery Water Disputes Tribunal Case[21] is the important decision in this field. Our Apex Court observed in this decision that the Karnataka Cauvery Basin Irrigation Protection Ordinance, passed by the Karnataka State, was unconstitutional. The Ordinance rebutted the jurisdiction of the Tribunal under the Inter-state Water Disputes Act, 1956; and it nullified the interim order passed by the Tribunal. The Supreme Court held that the Ordinance was against the basic tenets of the rule of law.

The Apex Court observed that the State of Karnataka, by issuing the Ordinance, had sought to take law in its own hand. It was laid down that such an Act was an invitation to lawlessness and anarchy. The Ordinance was a manifestation of a desire on the part of the State to be a judge in its own cause and to defy the decisions of the judicial authorities.  The Ordinance foreboded evil consequences to the federal structure under the Constitution and opened doors for each State to act in the way it desired. It disregarded not only the rights of the other states but the orders passed by instrumentalities constituted under an Act of Parliament as also the provisions of the Constitution itself. It was also affirmed that the Ordinance, if allowed to stand, would lead to the breakdown of the Constitutional mechanism and affect the unity and integrity of the nation.

The Apex Court further asserted in Cauvery Water Disputes Tribunal Case, relying on Municipal Corporation of the City of Ahmedabado v. New Shorock Spg. & Wvg. Co., (1970) and Madan Mohan Pathak v. Union of India (1978), [22] that the legislature could change the basis on which a decision was given by the Court and thus change the law in general, which would affect a class of persons and events at large. It was unambiguously held that the legislature could not, however, set aside an individual decision inter-parties. Such an act on the part of the legislature would amount to exercising the judicial power.

Legislative  Overruling of Court Decision

Before the Negotiable Instruments (Amendment) Act, 2015 (Act 26 of 2015), there was no specific legislative commandment in the NI Act, as to territorial jurisdiction of courts for filing a complaint. Therefore, it was taken as the court (or courts) within whose territorial jurisdiction the offence was committed.

  • The Supreme Court held  Dashrath Rupsingh Rathod v. State of Maharashtra, AIR 2014 SC 3519, that the jurisdiction for filing of complaints was ‘restricted to the location where the cheque was dishonoured, i.e., cheque was returned unpaid by the bank on which it was drawn’
    • [Broadly speaking, ‘cheque is returned unpaid’ by Drawer-Bank – the bank of the person who signs the cheque].
  • By the amendment of 2015, the dictum in Dashrath Rupsingh Rathod v. State of Maharashtra, AIR 2014 SC 3519, was overturned – Section 142 has been re-numbered as Sub-section (1) and Sub-section (2) has been inserted (which specified the territorial jurisdiction of the court).
    • The dictum of the Supreme Court in Dashrath Rupsingh Rathod case has been “legislatively overruled”** by an amendment to the Negotiable Instruments Act, in 2015
      • **(as observed in  P. Mohanraj v. Shah Brothers Ispat Pvt. Ltd: (2021) 6 SCC 325 – RF Nariman, J.)
  • After the 2015 amendment (after inserting Sub-section – 2) the territorial jurisdiction is limited to the Drawee-Bank.
    • [Generally speaking, Drawee-Bank is the Bank in which the payee presents the cheque for ‘collection’].

Dignity and Authority of the Court – protected for maintenance of ‘Rule of Law

The interesting question came for consideration before our Supreme Court in M.C. Metha Vs. Union of India[23] was whether the legislature can extend a time frame fixed by the Supreme Court. It was definitely pronounced in this case that the legislature lacked competence to extend the time granted ‘to seal premises in case of misuser’, by the Supreme Court, in the exercise of its law making power. The Apex Court observed that such an extension by the State legislature would be virtually exercising judicial functions which do not vest in the legislature. The Court proceeded to hold that the dignity and authority of the Court has to be protected not for any individual but for maintenance of the rule of law. It was predicated that the State was bound to act in terms of the decision of the Supreme Court.

Transgression upon a Judgment is Misadventure and Glaring Arbitrariness

Our Apex Court heavily criticised, by strong words, the act of passing an Ordinance by the State of Kerala in ‘Medical Council of India Vs. State of Kerala[24]  to overturn a decision of the Apex Court. The Admission Supervisory Committee of the Professional Colleges found that certain Medical College students’ admissions were illegal. The decision was upheld by the High Court of Kerala and the Apex Court. Thereafter the State of Kerala promulgated an Ordinance for regularising the admission of 180 students. The Supreme Court held that the State had clearly transgressed upon the field of judicial review and obviously resorted to a misadventure. It was laid down that the judgment of the court was nullified by the glaring arbitrariness. It was clearly an act violative of judicial powers. It was further asserted that it was not a case of removal of a defect in existing law; and pointed out that various Constitution Bench decisions have settled the principles of law governing the field. The Supreme Court exclaimed that it passes comprehension how the State has promulgated the Ordinance in question.

It is Not Open to the Legislature to say that a Judgment shall be Ineffective

The legislative function consists in ‘making’ law and not in ‘declaring’ what the law shall be. If the purpose of a legislation is to annul a final judgment, such act of legislature must necessarily be declared unconstitutional. The Apex Court held in Janapada Sabha Chhindwara Vs. Central Provinces Syndicate[25] as under:

  • “On the words used in the Act, it is plain that the Legislature attempted to overrule or set aside the decision of this Court. That, in our judgment, is not open to the Legislature to do under our constitutional scheme. It is open to the Legislature within certain limits to amend the provisions of an Act retrospectively and to declare what the law shall be deemed to have been, but it is not open to the Legislature to say that, a judgment of a Court properly constituted and rendered in exercise of its powers in a matter brought before it shall be deemed to be ineffective and the interpretation of the law shall be otherwise than as declared by the Court.”

It Is Not Open to Legislature to say – what the law shall be deemed to have been

L. Nageswara Rao, J, held in Madras Bar Association v. Union of India, 2021 SCC Online SC, as under:

  • “41. It is open to the legislature within certain limits to amend the provisions of an Act retrospectively and to declare what the law shall be deemed to have been, but it is not open to the legislature to say that a judgment of a Court properly constituted and rendered in exercise of its powers in a matter brought before it shall be deemed to be ineffective and the interpretation of the law shall be otherwise than as declared by the Court. (Janapada Sabha Chhindwara v. Central Provinces Syndicate Ltd. & Anr. (1970) 1 SCC 44 I.N. Saksena v. State of Madhya Pradesh (1976) 4 SCC 750; Indian Aluminium Co. & Ors. v. State of Kerala & Ors. (1996) 7 SCC 637; Bakhtawar Trust & Ors. v. M. D. Narayan & Ors. (2003) 5 SCC 298) The test of judging the validity of the amending and validating enactment is, whether the legislature enacting the validating statute has competence over the subject-matter; whether by validation, the said legislature has removed the defect which the Court had found in the previous laws; and whether the validating law is consistent with the provisions of Part III of the Constitution .
  • In State of Tamil Nadu v. State of Kerala, (2014) 12 SCC 696, this Court held that any law enacted by the legislature may be invalidated if it is an attempt to interfere with judicial process by being in breach of the doctrine of separation of powers.”

Law Declared By Apex Court Is the Law of the Land

Law includes not only legislative enactments but also judicial precedents. The law declared by the Apex Court is law of land, under Article 141 of the Constitution.[26]

The law declared by the Supreme Court is is binding on the Government also (Naeem Ahmad Vs. State of Uttarakhand: AIR 2019 Uchal 163; State of Maharashtra Vs. Murarao Malojirao Ghorpade, 2010-1 AIR Bom R 265; Karnataka State Road Transport Corporation Vs. Karnataka State Transport Authority, AIR 2005 Kar 205).

It is equally important that the authority of law under Article 141 ends when the statutory vacuum is put to an end. It cannot also be construed as a provision conferring powers to ignore express statutory provisions. The powers under Article 141 are introduced for filling up the void created by an insufficient law so as to meet the ends of justice.[27]

Government is obliged to give effect to the directions of Apex Court under Art. 144

Article 144 of the Constitution mandates, civil and judicial authorities in India shall act in aid of the Supreme Court meaning thereby executive and judicial authorities shall act in aid of the Supreme Court. (Madras Bar Association Vs. Union of India, 2021-8 SCALE 174: 2021 SCC Online SC 463; M C Mehta Vs. Union of India2006-3 SCC 399 ). It is observed in Bharat Earth Movers vs Commissioner Of Income Tax, 2000-6 SCC 645, that the Article 144 of the Constitution obliges all authorities, civil and judicial, in the territory of India to act in aid of Supreme Court and that failure to comply with the directions of this court by the Tribunal has to be deplored. 

In Suyog v. State of Maharashtra, 2008-1 AIR Bom R 417, it is observed as under:

  • No doubt, Article 144 of the Constitution requires the authorities to act in aid of the Supreme Court and, therefore, the State Government is expected to take all necessary steps to give effect to the directions issued by the Honble Apex Court. It is also well settled that the State Government in exercise of executive powers under Article 162 can issue executive instructions where the State has powers to make laws when there exists a vaccum or the laws are not framed. The State Government is entitled to fill the gaps to give effect to and to make the laws operational.

Court cannot Encroach upon the field assigned for the Legislature

In any event, Article 141 cannot be applied to encroach upon the field reserved for the legislature, as observed in Union of India Vs. State of Maharashtra (AIR 2019 SC 4917). In this decision, exhorting the rationale of judicial restraint and relying on the doctrine of separation of powers, it is pointed out that the courts must not encroach into the legislative domain. The court relied on the following decisions:  

  • Bachan Singh v. the State of Punjab, (1980) 2 SCC 684;
  • Asif Hameed v. State of Jammu and Kashmir, 1989 Supp. (2) SCC 364;
  • Rama Muthuramalingam v. Dy. Supdt. of Police, AIR 2005 Mad 1;
  • S.C. Chandra v. State of Jharkhand, (2007) 8 SCC 279;
  • Indian Drugs & Pharmaceuticals v. Workmen, (2007) 1 SCC 408;
  • Divisional Manager, Aravali Golf Club v. Chander Hass, (2008) 1 SCC 683;
  • Kuchchh Jal Sankat Nivaran Samili v. State of Gujarat, (2013) 12 SCC 226

Judicial Review is a powerful weapon

The Apex Court held in Dr. Jaya Thakur Vs. Union of India (2023) as under –

  • It could thus be seen that the role of the judiciary is to ensure that the aforesaid two organs of the State i.e. the Legislature and the Executive function within the constitutional limits. Judicial review is a powerful weapon to restrain unconstitutional exercise of power by the legislature and executive. The role of this Court is limited to examine as to whether the Legislature or the Executive has acted within the powers and functions assigned under the Constitution. However, while doing so, the court must remain within its self-imposed limits.”

The scope of the judicial review in examining the legislative functions of the Legislature with regard to validity of the Amendments were considered in the following decisions-

  • Asif Hameed v. State of Jammu and Kashmir, 1989 Supp (2) SCC 364
  • Frankfurter, J. of the U.S. Supreme Court dissenting in the controversial expatriation case of Trop v. Dulles [356 US 86]
  • Binoy Viswam v. Union of India and others2222 (2017) 7 SCC 59

The Apex Court (Dr. Jaya Thakur v. Union of India) elaborately quoted  Binoy Viswam v. Union of India, (2017) 7 SCC 59, to pointed out  the following –

a. Judicial Review – Grounds available (on the validity of a piece of legislation): The grounds of judicial review that are available to adjudge the validity of a piece of legislationare two and “there is no third ground.”  (State of A.P. v. McDowell & Co., 1996-3 SCC 709, State of M.P. v. Rakesh Kohli, 2012- 6 SCC; State of M.P. v. Rakesh Kohli, 2012-6 SCC 312). The grounds are:

  • First, Legislation, not within the competence of the legislature, and
  • Second, Legislation, in contravention of any of the fundamental rights stipulated in Part III of the Constitution or any other right/provision of the Constitution.

b. Arbitrariness and Unreasonableness By Itself Do Not Constitute A Ground For striking down a statute (though they are Grounds for Administrative Action): Pointing out that there are only two grounds, (1) lack of legislative competence and (2) violation of any of the fundamental rights, and no third ground to invalidate any piece of legislation, it was observed in State of A.P. v. McDowell & Co. 1996-3 SCC 709, as under:

  • “No enactment can be struck down by just saying that it is arbitrary [An expression used widely and rather indiscriminately – an expression of inherently imprecise import. The extensive use of this expression in India reminds one of what Frankfurter, J. said in Hattie Mae Tiller v. Atlantic Coast Line Railroad Co., 87 L Ed 610 : 318 US 54 (1943): “The phrase begins life as a literary expression; its felicity leads to its lazy repetition and repetition soon establishes it as a legal formula, undiscriminatingly used to express different and sometimes contradictory ideas”, said the learned Judge.] or unreasonable. Some or other constitutional infirmity has to be found before invalidating an Act. An enactment cannot be struck down on the ground that court thinks it unjustified. Parliament and the legislatures, composed as they are of the representatives of the people, are supposed to know and be aware of the needs of the people and what is good and bad for them.
  • The court cannot sit in judgment over their wisdom. In this connection, it should be remembered that even in the case of administrative action, the scope of judicial review is limited to three grounds viz.
    • unreasonableness, which can more appropriately be called irrationality,
    • illegality, and
    • procedural impropriety
  • (see: Council of Civil Service Unions v. Minister for the Civil Service, 1984-3 All ER 935 (HL) which decision has been accepted by this Court as well).
  • The applicability of doctrine of proportionality even in administrative law sphere is yet a debatable issue.
  • (See the opinions of Lords Lowry and Ackner in R. v. Secy. of State for the Home Deptt., ex p Brind, (1991) 1 All ER 720 (HL).
  • It would be rather odd if an enactment were to be struck down by applying the said principle when its applicability even in administrative law sphere is not fully and finally settled.” (Quoted in State of M.P. v. Rakesh Kohli, 2012-6 SCC 312)
  • A legislation cannot be challenged simply on the ground of unreasonableness because that by itself does not constitute a ground. The validity of a constitutional amendment and the validity of plenary legislation have to be decided purely as questions of constitutional law. This Court in State of Rajasthan v. Union of India [State of Rajasthan v. Union of India, (1977) 3 SCC 592] said : (SCC p. 660, para 149)”
  • Also referred: State of WB v. EITA India Ltd., (2003) 5 SCC 239, Rajbala v. State of Haryana, (2016) 2 SCC 445 : AS Krishna v. State of Madras, AIR 1957 SC 297.
  • A fortiori, a law cannot be invalidated on the ground that the legislature did not apply its mind or it was prompted by some improper motive.
  • In K.T. Plantation (P) Ltd. v. State of Karnataka, (2011) 9 SCC 1, it was observed as under:
  • “205. Plea of
    • unreasonableness,
    • arbitrariness,
    • proportionality, etc.
  • always raises an element of subjectivity on which a court cannot strike down a statute or a statutory provision, especially when the right to property is no more a fundamental right. Otherwise the court will be substituting its wisdom to that of the legislature, which is impermissible in our constitutional democracy.”

c. Judicial Review – First Ground – Ultra Vires The Constitution: In Ashoka Kumar Thakur v. Union of India, (2008) 6 SCC 1, following pertinent observations were made –

  • “219. A legislation passed by Parliament can be challenged only on constitutionally recognised grounds. Ordinarily, grounds of attack of a legislation is whether the legislature has legislative competence or whether the legislation is ultra vires the provisions of the Constitution. If any of the provisions of the legislation violates fundamental rights or any other provisions of the Constitution, it could certainly be a valid ground to set aside the legislation by invoking the power of judicial review.

d. 2nd Ground – Violation of Fund. Rigt. – Presumption In Favour of Constitutionality

  • In Mohd. Hanif Quareshi v. State of Bihar, AIR 1958 SC 731, it was observed as under:
  • ’15. The courts, it is accepted, must presume that the legislature understands and correctly appreciates the needs of its own people, that its laws are directed to problems made manifest by experience and that its discriminations are based on adequate grounds. It must be borne in mind that the legislature is free to recognise degrees of harm and may confine its restrictions to those cases where the need is deemed to be the clearest …” (reiterated in Mahant Moti Das v. S.P. Sahi, AIR 1959 SC 942.)
  • In Mohd. Hanif Quareshi v. State of Bihar, AIR 1958 SC 731, it was observed that there was always a presumption in favour of constitutionality of an enactment and the burden is upon him, who attacks it. It stated as under:
  • ’15. … and finally that in order to sustain the presumption of constitutionality the court may take into consideration matters of common knowledge, matters of common report, the history of the times and may assume every state of facts which can be conceived existing at the time of legislation.” (reiterated in Mahant Moti Das v. S.P. Sahi, AIR 1959 SC 942.)
  • In Hamdard Dawakhana v. Union of India, AIR 1960 SC 554, reiterated the principle that presumption was always in favour of constitutionality of an enactment and observed as under:
  • ‘8. Therefore, when the constitutionality of an enactment is challenged on the ground of violation of any of the articles in Part III of the Constitution, the ascertainment of its true nature and character becomes necessary i.e. its subject-matter, the area in which it is intended to operate, its purport and intent have to be determined. In order to do so it is legitimate to take into consideration all the factors such as history of the legislation, the purpose thereof, the surrounding circumstances and conditions, the mischief which it intended to suppress, the remedy for the disease which the legislature resolved to cure and the true reason for the remedy.’ (referred Mahant Moti Das v. S.P. Sahi, AIR 1959 SC 942, Bengal Immunity Co. Ltd. v. State of Bihar, AIR 1955 SC 661, Charanjit Lal Chowdhury v. Union of India, 1950 SCC 833 : AIR 1951 SC 41, and State of Bombay v. F.N. Balsara,  1951 SCC 860 : AIR 1951 SC 318.)

e. In Taxation, The Legislature Enjoys A Greater Latitude: In the field of taxation, the legislature enjoys a greater latitude for classification, as noted by in a long line of cases. Some of these decisions are –

  • Steelworth Ltd. v. State of Assam, 1962 Supp (2) SCR 589,
  • Gopal Narain v. State of U.P., AIR 1964 SC 370 ,
  • Ganga Sugar Corpn. Ltd. v. State of U.P., (1980) 1 SCC 223 : 1980 SCC (Tax) 90,
  • R.K. Garg v. Union of India, (1981) 4 SCC 675.

f. Judiciary – Protector of Constitution & Democracy as ultimate arbiter on Constitution: The Apex Court (in Dr. Jaya Thakur v. Union of India) quoted up to the following passage in Binoy Viswam v. Union of India, (2017) 7 SCC 59 –

  • “88. Undoubtedly, we are in the era of liberalised democracy. In a democratic society governed by the Constitution, there is a strong trend towards the constitutionalisation of democratic politics, where the actions of democratically elected Government are judged in the light of the Constitution. In this context, judiciary assumes the role of protector of the Constitution and democracy, being the ultimate arbiter in all matters involving the interpretation of the Constitution.
  • 89. Having said so, when it comes to exercising the power of judicial review of a legislation, the scope of such a power has to be kept in mind and the power is to be exercised within the limited sphere assigned to the judiciary to undertake the judicial review. This has already been mentioned above. Therefore, unless the petitioner demonstrates that Parliament, in enacting the impugned provision, has exceeded its power prescribed in the Constitution or this provision violates any of the provision, the argument predicated on “limited governance” will not succeed. One of the aforesaid ingredients needs to be established by the petitioners in order to succeed.”

Is Nullification of a Mandamus (by A Changed Law) Permissible? Ans. No.

It is found in Dr. Jaya Thakur v. Union of India (2023) by the Apex Court that that the direction in an earlier case (Common Cause case, 2021) was “a specific mandamus that no further extension shall be granted to the second respondent (Sanjay Kumar Mishra, Director, Enforcement Directorate)”. Undisputedly, the Union of India as well as the respondent No. 2- Sanjay Kumar Mishra were parties to the said proceedings.

Therefore it is held in Dr. Jaya Thakur v. Union of India  (2023) that the orders giving extensions to the tenure of the respondent No. 2- Sanjay Kumar Mishra, for a period of one year each are illegal.

It is held that nullification of a mandamus by a subsequent legislative exercise would be impermissible.

The Apex Court relied on, mainly, the following earlier decisions –

  • Madan Mohan Pathak v. Union of India, (1978) 2 SCC 50,
  • In Re., Cauvery Water Disputes Tribunal, 1993 Supp (1) SCC 96,
  • S.R. Bhagwat v. State of Mysore, (1995) 6 SCC 16
  • Madras Bar Association v. Union of India, (2022) 12 SCC 455,
  • Medical Council of India v. State of Kerala and others, (2019) 13 SCC 185.

(a) Madan Mohan Pathak v. Union of India (1978) 2 SCC 50: The employees of the LIC were denied the benefits which they were entitled to. They filed writ petitions  before the High Court of Calcutta for a writ of mandamus and prohibition directing the LIC to act in accordance with the terms of a Settlement. It was allowed by the Calcutta High Court The LIC preferred Appeal. During the pendency of the appeal the Life Insurance Corporation (Modification of Settlement) Act, 1976 was enacted. The effect of the enactment was to annul the benefits which the employees of the LIC were entitled to in view of the mandamus issued by the Calcutta High Court. The Seven Judge Bench in Madan Mohan Pathak v. Union of India, (1978) 2 SCC 50, considered the constitutional validity of the Life Insurance Corporation (Modification of Settlement) Act, 1976.

Bhagwati, J (speaking for himself, Krishna Iyer and Desai, JJ.) observed thus:

  • “9. We are, therefore, of the view that, in any event, irrespective of whether the impugned Act is constitutionally valid or not, the Life Insurance Corporation is bound to obey the writ of mandamus issued by the Calcutta High Court and to pay annual cash bonus for the year April 1, 1975 to March 31, 1976 to Class III and Class IV employees.”

Beg. CJ, in his concurring judgment observed thus:

  • “32. I may, however, observe that even though the real object of the Act may be to set aside the result of the mandamus issued by the Calcutta High Court, yet, the section does not mention this object at all. Probably this was so because the jurisdiction of a High Court and the effectiveness of its orders derived their force from Article 226 of the Constitution itself. These could not be touched by an ordinary act of Parliament.”

Doctrine of Change of basis of earlier Judgment

Beg. CJ, continued as under:

  • “Even if Section 3 of the Act seeks to take away the BASIS of the judgment of the Calcutta High Court, without mentioning it, by enacting what may appear to be a law, yet, I think that, where the rights of the citizen against the State are concerned, we should adopt an interpretation which upholds those rights. Therefore, according to the interpretation I prefer to adopt the rights which had passed into those embodied in a judgment and became the BASIS of a mandamus from the High Court could not be taken away in this indirect fashion.”

(b) In Re., Cauvery Water Disputes Tribunal, 1993 Supp (1) SCC 96

The Constitution Bench of the Apex Court, In Re., Cauvery Water Disputes Tribunal, 1993 Supp (1) SCC 96, observed as under:

  • “76. The principle which emerges from these authorities is that the legislature can change the BASIS on which a decision is given by the Court and thus change the law in general, which will affect a class of persons and events at large. It cannot, howeverset aside an individual decision inter partes and affect their rights and liabilities alone. Such an act on the part of the legislature amounts to exercising the judicial power of the State and to functioning as an appellate court or tribunal.”

(c) S.R. Bhagwat v. State of Mysore, (1995) 6 SCC 16: In this case it was observed as under:

  • “12. It is now well settled by a catena of decisions of this Court that a binding judicial pronouncement between the parties cannot be made ineffective with the aid of any legislative power by enacting a provision which in substance overrules such judgment and is not in the realm of a legislative enactment which displaces the BASIS or foundation of the judgment and uniformly applies to a class of persons concerned with the entire subject sought to be covered by such an enactment having retrospective effect. We may only refer to two of these judgments.
  • … This is a case where on interpretation of existing law, the High Court had given certain benefits to the petitioners. That order of mandamus was sought to be nullified by the enactment of the impugned provisions in a new statute. This in our view would be clearly impermissible legislative exercise.”

(d) Medical Council of India v. State of Kerala and others2525 (2019) 13 SCC 185: A similar view has been taken by the Apex Court in Medical Council of India v. State of Kerala and others2525 (2019) 13 SCC 185 .

(e) Madras Bar Association v. Union of India, (2022) 12 SCC 455: In Madras Bar Association v. Union of India, the Apex Court “on the issue of permissibility of legislative override”, observed as under:

  • “50. The permissibility of legislative override in this country should be in accordance with the principles laid down by this Court in the aforementioned as well as other judgments, which have been culled out as under:
  • 50.1. The effect of the judgments of the Court can be nullified by a legislative act removing the BASIS of the judgment. Such law can be retrospective. Retrospective amendment should be reasonable and not arbitrary and must not be violative of the fundamental rights guaranteed under the Constitution. [Lohia Machines Ltd. v. Union of India, (1985) 2 SCC 197 : 1985 SCC (Tax) 245]
  • 50.2. The test for determining the validity of a validating legislation is that the judgment pointing out the defect would not have been passed, if the altered position as sought to be brought in by the validating statute existed before the Court at the time of rendering its judgment. In other words, the defect pointed out should have been cured such that the BASIS of the judgment pointing out the defect is removed.
  • 50.3. Nullification of mandamus by an enactment would be impermissible legislative exercise (see : S.R. Bhagwat [S.R. Bhagwat v. State of Mysore, (1995) 6 SCC 16 : 1995 SCC (L&S) 1334] ). Even interim directions cannot be reversed by a legislative veto (see : Cauvery Water Disputes Tribunal [Cauvery Water Disputes Tribunal, In re, 1993 Supp (1) SCC 96 (2)] and Medical Council of India v. State of Kerala [Medical Council of India v. State of Kerala, (2019) 13 SCC 185] ).
  • 50.4. Transgression of constitutional limitations and intrusion into the judicial power by the legislature is violative of the principle of separation of powers, the rule of law and of Article 14 of the Constitution of India.”

When Legislative Enactment can be Struck Down by Courts

In State of Madhya Pradesh v. Rakesh Kohli (2012) 6 SCC 312 42, this Court held that sans flagrant violation of the constitutional provisions, the law made by Parliament or a State legislature is not declared bad and legislative enactment can be struck down only on two grounds:

  • that the appropriate legislature does not have the competence to make the law, and
  • that it takes away or abridges any of the fundamental rights enumerated in Part III of the Constitution or any other constitutional provisions.

It is pointed out in Madras Bar Association v. Union of India 2021 SCC Online SC 463, (L. Nageswara Rao, J.) the Supreme Court has also recognised

  • “manifest arbitrariness”

as a ground under Article 14 on the basis of which a legislative enactment can be judicially reviewed.

Permissibility of Legislative Override

L. Nageswara Rao, J, held in Madras Bar Association v. Union of India, 2021 SCC Online SC 463, observed as to the ‘permissibility of legislative override’ as under:

  • “44. The permissibility of legislative override in this country should be in accordance with the principles laid down by this Court in the aforementioned as well as other judgments, which have been culled out as under:
  • a) The effect of the judgments of the Court can be nullified by a legislative act removing the basis of the judgment. Such law can be retrospective. Retrospective amendment should be reasonable and not arbitrary and must not be violative of the fundamental rights guaranteed under the Constitution. (Lohia Machines Ltd. & Anr. v. Union of India & Ors. (1985) 2 SCC 197)
  • b) The test for determining the validity of a validating legislation is that the judgment pointing out the defect would not have been passed, if the altered position as sought to be brought in by the validating statute existed before the Court at the time of rendering its judgment. In other words, the defect pointed out should have been cured such that the basis of the judgement pointing out the defect is removed.”

The Doctrine of Separation of Powers – In Mullaperiyar dam Issue

State of Tamil Nadu Vs. State of Kerala (2014) [28] , the prominent Supreme Court decision on dam related issues, is pronounced in the matter of validity of an enactment [The Kerala Irrigation and Water Conservation (Amendment) Act, 2006] made by the State of Kerala concerning the Mullaperiyar dam. The crux if the issue that was arisen in this case was whether the rights claimed in this case had been crystallised in the earlier Judgment on the same subject, Mullaperiyar Environmental Protection Forum v. Union of India, (2006) 3 SCC 643. The 2014 Judgment went against the stance of Kerala, mainly, on the following premises:

  1. A categorical finding has been recorded by the Court in the earlier judgment that the Mullaperiyar dam is safe and that judgment has become final and binding. A final judgment remains in force until it is altered by the court.
  2. The Kerala enactment is is bad because it infringes the doctrine of separation of powers and rule of law,
  3. Legislature cannot indirectly control the Courts.
  4. Legislature cannot reopen or alter a judicial decision rendered on a finding of fact.
  5. The impugned 2006 (Amendment) Act is a classic case of nullification of a judgment.
  6. If the judgment of this Court and the 2006 (Amendment) Act are placed side by side, both cannot stand together.
  7. When the dispute between two States has already been adjudicated upon by the Supreme Court, any unilateral law enacted by one of the parties results in overturning the final judgment.
  8. By such law, the legislature has clearly usurped the judicial power.
  9. If substantial changes in the circumstances occur and such circumstances are shown to the Court necessitating departure from the earlier finding on the issue of safety, the Court can be approached and in that event the Court itself may exercise its discretion to reopen the safety aspect having regard to the drastic change in circumstances or in emergent situation as to the safety of dam.
  10. A judicial decision, having achieved finality, becomes the last word and can be reopened in the changed circumstances by that Court alone and no one else.

In para 143, 145, 146, 150, 151, 153 and 154 of the judgment the Supreme Court held as under:

  • “143. …. The Constitutional principle that the legislature can render judicial decision ineffective by enacting validating law within its legislative field fundamentally altering or changing its character retrospectively has no application where a judicial decision has been rendered by recording a finding of fact. Under the pretence of power, the legislature, cannot neutralise the effect of the judgment given after ascertainment of fact by means of evidence/materials placed by the parties to the dispute. A decision which disposes of the matter by giving findings upon the facts is not open to change by legislature. A final judgment, once rendered, operates and remains in force until altered by the court in appropriate proceedings.
  • 145. …. In our opinion, by 2006 (Amendment) Act, the Kerala legislature has overturned a final judgment in the interest of its own executive Government. The impugned law amounts to reversal of the judgment of this Court which determines directly the question of safety of Mullaperiyar dam for raising water level to 142 ft. and whereunder Tamil Nadu’s legal right has been determined.
  • 146. … Once a judicial decision on ascertainment of a particular fact achieves finality, we are afraid the legislature cannot reopen such final judgment directly or indirectly. In such cases, the courts, if brought before them, may reopen such cases in exercise of their own discretion.
  • 150. … What has been found as a fact by judicial determination cannot be declared otherwise by applying legal fiction. We are, however, persuaded to accept the submission of Mr. Vinod Bobde, learned senior counsel for Tamil Nadu that the fact that the Mullaperiyar dam is safe was found by this Court and that finding of fact can never be deemed to be imaginary by a legal fiction which then proceeds to deem the opposite to be real, viz., that the dam is endangered. This is not a matter of legislative policy as it is being made out to be, rather in our opinion, it is incursion in the judicial process and functions of judicial organ.
  • 151. The question whether or not the legislature has usurped the judicial power or enacted a law in breach of separation of powers principle would depend on facts of each case after considering the real effect of law on a judgment or a judicial proceeding. One of the tests for determining whether a judgment is nullified is to see whether the law and the judgment are inconsistent and irreconcilable so that both cannot stand together. In what we have already discussed above, it is abundantly clear that on the one hand there is a finding of fact determined by this Court on hearing the parties on the basis of the evidence/materials placed on record in the judgment of this Court in Mullaperiyar Environmental Protection Forum and on the other in 2006 (Amendment) Act, the Kerala legislature has declared the dam being an endangered one and fixed the water level in the dam at 136 ft. …. The impugned law is a classic case of nullification of a judgment simpliciter, as in the judgment of this Court the question of the safety of the Dam was determined on the basis of materials placed before it and not on the interpretation of any existing law and there was no occasion for the legislature to amend the law by altering the basis on which the judgment was founded. When the impugned law is not a validation law, there is no question of the legislature removing the defect, as the Court has not found any vice in the existing law and declared such law to be bad.”
  • 153. … The question here is not that the 2006 (Amendment) Act is unconstitutional on the ground of res judicata but the question is, when a categorical finding has been recorded by this Court in the earlier judgment that the dam is safe for raising the water level to 142 ft. and permitted the water lever of the dam being raised to 142 ft. and that judgment has become final and binding between the parties, has the Kerala legislature infringed the separation of powers doctrine in enacting such law? In what has already been discussed above, the answer to the question has to be in the affirmative and we hold so.
  • 154. Where a dispute between two States has already been adjudicated upon by this Court, which it is empowered to deal with, any unilateral law enacted by one of the parties that results in overturning the final judgment is bad not because it is affected by the principles of res judicata but because it infringes the doctrine of separation of powers and rule of law, as by such law, the legislature has clearly usurped the judicial power.”

Judiciary & Legislature, Exercise in Different Areas of Jurisdiction

The judiciary and the legislature exercise jurisdiction in different compasses. This balancing act, delicate as it is, is guided by well-defined expositions of the Apex Court [Goa Foundation Vs. State of Goa: AIR 2016  SC 1653].

Commissioner HR & E Vs. Shri Lakshmindra Thritha Swaminar of Sri Shirur Mutt [AIR 1954 SC 282] is the trailblazing decision handed down by the Supreme Court of India laying down the parameters to determine the fate and effect of an unconstitutional enactment. This decision, explaining ‘spiritual community represented by the math‘, is followed in all subsequent decisions in this field. The Madras Hindu Religious and Charitable Endowments Act, 1951, passed by the Madras Legislature, practically made to vest administration of religious and charitable institutions in a department of the Government, head of which was the Commissioner. The Act gave vast powers to the Commissioner.  Swaminar of Shirur Mutt questioned the Act in the Madras High Court. The Madras High Court accepted the case of Swaminar. The High Court found that several provisions of the Act were unconstitutional. The Commissioner,   Hindu Religious Endowments filed appeal before the Supreme Court. Supreme Court upheld the decision of the Madras High Court.

Justice BK Mukherjea, writing for the Seven-Judge Bench, held that the spiritual community represented by the math falls under Art. 26(b) which contemplates ‘religious denomination or a section thereof’; and the right to manage the affairs of religion is a fundamental right under Art. 26. Such rights cannot be taken away by the legislature.

Did Apex Court Incorrectly held – Constitution (24th Amendment) Act, 1971 is valid?

In His Holiness Kesavananda Bharati Sripadagalvaru Vs. State of Kerala: AIR 1973 SC 1461, there was unanimous decision on the following:

  • Article 368 is independent from, and not controlled by, Article 13(2).
  • Golak Nath is overruled.
  • The Constitution (Twenty-fourth Amendment) Act, 1971 is valid.

The 24th Constitutional Amendment Act had been passed to get over IC Golak Nath Vs. State of Punjab: AIR 1967 SC 1643. (In Golak Nath, it was held by an 11 judge bench that the Parliament could not amend fundamental rights guaranteed in Part III of the Constitution and that the amendments that took away or abridged fundamental rights were invalid.) The Golak Nath decision was on the basis of Article 13 – which laid down that the ‘Laws inconsistent with or in derogation of the fundamental rights’ are void. But, the Twenty-fourth Amendment Act, mainly, legislated: “(4) Nothing in article 13 shall apply to any amendment made under this article”. 

(i) The law declared by the Apex Court being the law of land, under Article 141 of the Constitution (See also: Bharvagi Constructions Vs. Kothakapu Muthyam Reddy: AIR 2017 SC 4428) and (ii) it being not open to the legislature to simply brush aside findings of a court of law by an Amendment Act, under the Constitutional principles; instead of upholding Twenty-fourth Amendment Act (after overruling Golak Nath) the Supreme Court should have either annulled the Amendment, or observed that this amendment was redundant in view of the overruling. It is legitimate to say that the course open to the Government was to approach the Supreme Court, again (Note: AN Ray, CJ constituted a 13 judge bench to reconsider Kesavananda on the presumed premises that the Governments sought for a ‘reconsideration’).

Did Indian Parliament Reversed Shah Bano Cases?

As pointed out earlier, in Danial Latifi Vs. Union of India the Supreme Court held that the Muslim Women (Protection of Rights on Divorce) Act, 1986, ‘actually and in reality’ codified what was stated in Shah Bano Case. But, it had been criticised that the Indian Parliament, by the 1986 Act, ‘reversed’ the judgment in Shah Bano Case or at least it was ‘diluted’.

Conclusion

The judiciary and the legislature exercise jurisdiction in different domains. But, as observed by Chief Justice Chandrachud in AK Roy Vs. Union of India (AIR 1982 SC 710) ‘our constitution does not follow the American pattern of strict separation of powers’. That is why the legislatures in India could ‘enact a fresh law with retrospective effect to alter the foundation and meaning of the legislation and to remove the base on which the judgment is founded’ as held in Cheviti Venkanna Yadav Vs. State of Telangana (AIR 2016  SC  4982).

Nevertheless, the legislature cannot make a law to overpower the findings of a court which were made in an ‘Individual’ decision, inter-partes.


[1]     Union of India Vs. State of Maharashtra: AIR 2019 SC 4917

[2]   Janapada Sabha Chhindwara v. Central Provinces Syndicate: AIR 1971 SC 57;  S.T. Sadiq Vs. State of Kerala and Ors. (2015) 4 SCC 400; Medical Council of India Vs. State of Kerala: AIR 2018 SC 5041.

[3]   In Re Cauvery Water Disputes Tribunal: 1993 Supp (1) SCC 96: AIR 1992 SC 522; M. P. Ram Mohan Raja Vs. State of T. N AIR 2007  SC 1742; Medical Council of India Vs. State of Kerala: AIR 2018 SC 5041; Goa Foundation v. State of Goa: AIR 2016 SC 1653; Binoy Viswam Vs. Union of India: AIR 2017  SC 2967; Hindustan Construction Company Vs. Union of India: AIR 2020 SC 122.       

[4]  State of Haryana v. The Karnal Co-op.Farmers’ Society Limited: AIR 1994 SC 1 (Relied on: Shri Prithvi Cotton Mills Ltd. v. Broach Borough Municipality: [1970] 1 SCR 388). Referred to in: M. P. Ram Mohan Raja Vs. State of T. N: AIR 2007 SC 1742.

[5]     Medical Council of India Vs. State of Kerala: AIR 2018 SC 5041; Janapada Sabha Chhindwara Vs. Central Provinces Syndicate: AIR 1971 SC 57; 1970 (1) SCC 509.

[6]     In Re Cauvery Water Disputes Tribunal: 1993 Supp (1) SCC 96; AIR 1992 SC 522

[7]     S.T. Sadiq Vs. State of Kerala   (2015) 4 SCC 400

[8]   Janapada Sabha Chhindwara v. Central Provinces Syndicate: AIR 1971 SC 57;  Shri Prithvi Cotton Mills Vs. Broach Borough Municipality: (1969) 2 SCC 283

[9]  Shri Prithvi Cotton Mills Ltd. v. Broach Borough Municipality: [1970] 1 SCR 388; State of Haryana v. The Karnal Co-op.Farmers’ Society Limited: AIR 1994 SC 1; S.T. Sadiq Vs. State of Kerala   (2015) 4 SCC 400; Goa Foundation Vs. State of Goa: 2016 0 AIR(SC) 1653. Binoy Viswam Vs. Union of India: 2017 0 AIR(SC) 2967; Hindustan Construction Company Limited Vs. Union of India: AIR 2020 SC 122.      

[10]   In Re Cauvery Water Disputes Tribunal: 1993 Supp (1) SCC 96; AIR 1992 SC 522; Referred to in:  M. P. Ram Mohan Raja Vs. State of T. N: AIR 2007 SC 1742; Medical Council of India Vs. State of Kerala: AIR 2018 SC 5041.

[11]  State of Haryana v. The Karnal Co-op.Farmers’ Society Limited: AIR 1994 SC 1 (Relied on: Shri Prithvi Cotton Mills Ltd. v. Broach Borough Municipality: [1970] 1 SCR 388). Referred to in: M. P. Ram Mohan Raja Vs. State of T. N: AIR 2007 SC 1742.

[12]   Cheviti Venkanna Yadav State of Telangana: (2017) 1 SCC 283

[13]   State of T.N. Vs. Arooran Sugars Ltd. (1997) 1 SCC 326.

[14]   Tara Prasad Singh Vs. Union of India (1980) 4 SCC 179

[15]   Medical Council of India Vs. State of Kerala: AIR 2018  SC 5041. Shri Prithvi Cotton Mills Vs. Broach Borough Municipality: (1969) 2 SCC 283

[16]   State of H.P. v. Narain Singh (2009) 13 SCC 165; Medical Council of India Vs. State of Kerala: AIR 2018  SC 5041.

[17]   Mohd. Ahmed Khan Vs. Shah Bano Begum: AIR 1985 SC 945

[18]   AIR 2001 3958

[19]   Goa Foundation Vs. State of Goa: AIR 2016  SC 1653

[20]   AIR 1954 SC 282

[21]   In Re Cauvery Water Disputes Tribunal: AIR 1992 SC 522

[22]   Municipal Corporation of the City of Ahmedabado v. New Shorock Spg. & Wvg. Co., AIR 1970 SC 1292; Madan Mohan Pathak v. Union of India, AIR 1978 SC 803.

[23]   (2006) 7 SCC 456

[24]   AIR 2018 SC 5041

[25]  Janapada Sabha Chhindwara Vs. Central Provinces Syndicate, AIR 1971 SC 57; 1970 (1) SCC 509.

[26] Bharvagi Constructions Vs. Kothakapu Muthyam Reddy: AIR 2017 SC 4428

[27]   University of Kerala Vs. Council, Principals, Colleges, Kerala: AIR 2009 SC 2223

[28]   (2014) 12 SCC 696; Quoted in: State of Karnataka Vs. Karnataka Pawn Brokers Assn.: AIR 2018 SC 441



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