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1996 Supreme(SC) 70

1996(1) Supreme 383
SUPREME COURT OF INDIA
S.C. Agrawal and B.P. Jeevan Reddy, JJ.
The Church of South India Trust
Association -Appellant
versus
The Telugu Church Council -Respondent
Civil Appeal No. 1547-48 of 1996 [with SLP (C)......./196 (CC 21473/93)]
Decided on 10-1-1996
Counsel for the Parties :
For the Appellant : F.S. Noviman, Sr. Adv.

IMPORTANT POINT
The judgment of the Madras High Court dated 2.9.76 in Appeal (O.S.A. No. 20 of 1976) arising out of O.S. No. 107 of 1971 operates as res-judicata so as to preclude the respondent from asserting that the Telgu Church Council had not merged in the Church of South India.

Headnote:(i) Civil Procedure Code, 1908-Section 11 Exp. VIII-Res-judicata-Respondent asserting that it had not merged in the Church of South India -Appellant asserting that respondent had merged in the Church of South India-Two suits-First suit decided by A.P. High Court-Second suit decided by Madras High Court-Whether the judgment in the second suit operates as res-judicata ?-Suit properties situate in the State of A.P.-Whether the competence of Court, as contemplated in Section 11 of the present CPC, extends to territorial jurisdiction also and the court which has decided the earlier suit should be a court having territorial jurisdiction to try the subsequent suit ? (No)-Appeals allowed-O.S. 41 of 68 & O.S. 26 of 70 dismissed.

       Held : Explanation VIII thus removes the limitations that were place on the principle of res judicata as applicable in India by the Privy Council in Misir Raghobardial v. Rajah Sheo Baksh Singh (1881-82) 9 I.A. 197. It would be rather incongruous to read a limitation in the applicability of the said principle by construing the competence of the court to mean that the court which has decided the earlier suit must have the territorial jurisdiction to try the subsequent suit. Such a construction would be running against the trend in the development of law in this field. We are, therefore, of the opinion that Section 11 of the present Code [excluding Explanation VIII] envisages that the judgment in a former suit would operate as a res judicata if the Court which decided the said suit was competent to try the same by virtue of its pecuniary jurisdiction and the subject-matter to try the subsequent suit and that it is not necessary that the said Court should havd had territorial jurisdiction to decide the subsequent suit. On that view of the matter, it must be held that the judgment of the Madras High Court in O.S.A. 20 of 1976 dated September 2, 1976 arising out of second suit (O.S. No. 107 of 1971) operates as res judicata in as much as Madras High Court had pecuniary jurisdiction as well as jurisdiction over the subject-matter to try the subsequent suit and it cannot be held that the said judgment does not operate as res judicata for the reason that the Madras High Court does not have territoral jurisdiction to try the subsequent suit relating to properties in Andhra Pradesh. (Para 35)

       Once it is held that the judgment of the Madras High Court would operate as res judicata, it follows that the decision in that said case regarding merger of TCC with the Church of South India as well as about the judgment of the Andhra Pradesh High Court in A.S. 31 of 1967 arising out of O.S. 12 of 1961, not being res judicata, would be binding on the respondent and the civil suits giving rise to these appeals which were filed by the respondent cannot succeed and have to be dismissed. In the circumstances, it is not necessary to consider Questions Nos. (ii) and (iii) referred to above. (Para 36)

       The appeals are accordingly allowed, the impugned judgment of the Andhra Pradesh High Court dated June 16, 1992 in Appeals Nos. 623-624 of 1979 arising out of O.S. Nos. 41 of 1968 and 26 of 1970 are set aside and the said suits are dismissed. No orders as to costs. (Para 37)

       

       (ii) Constitution of India-Art. 136-Special leave petition under-Petitioner claiming title by adverse possession-Whether cause of action subsists having regard to fact that O.S. 26 of 1970 has been dismissed by this judgment ? (No) (Para 40)-SLP dismissed.

JUDGMENT

S.C. Agrawal, J.-Speciel Leave granted in S.L.P. (C) Nos. 14501-02 of 1992.

2. These appeals arise out of two suits (O.S. No. 41 of 1968 and O.S. No. 26 of 1970) filed by the Telegu Church Council (for short TCC ), respondent herein, in respect of properties of congregationalist churches in the districts of Cuddapah and Anantpur in the State of Andhra Pradesh. O.S. No. 41 of 1968 was in respect of properties and institutions situted in Cuddapah district and O.S. No. 26 of 1970 was in respect of properties situated in Anantpur district. Both the suits were decreed in favour of TCC by the Subordinate Judge, Cuddapah by judgment and decree dated May 7, 1979. The appeals (A.S. No. 623-24 of 1979) filed by the appellants against the said judgment and decree of the Subordinate Judge were dismissed by the Andhra Pradesh High Court by judgment dated June 16,1992.

3. The London Missionary Society (for short LMS ) was founded by people belonging to different Protestant Christian Denominations in England in 1795 for spreading the Christian faith in various countries including India. LMS missionaries, in course of their activities, started churches, hospitals, educational institutions in various parts of India. In 1899 the London Missionary Society Corporation (for short LMSC ) was registered as the Trustee under the Companies Act of the United Kingdom for administering the properties of LMS. In 1908 the churches founded by different Missionary Societies, including LMS in South India, unitedly formed a single body known as South India United Church (for short SIUC ). SIUC became the apex body of various Church Councils. TCC was one of the Church Councils under SIUC in respect of churches in the Telugu speaking area of the former Madras Presidency. The case of the appellant is that on June 29, 1945, pursuant to the efforts to bring about a larger union of Churches involving SIUC, the Church of India, Burma and Ceylon and Methodist Church of South India, a scheme of union was proposed and the said proposal of union was discussed both at the level of various Church Councils as well as at the level of SIUC General Assembly and that TCC, at a meeting, accepted the recommendation of its Executive Committee and resolved by two-third majority to accept the scheme of Church Union. The case of the appellants is further that on Septmber 28, 1946, SIUC resolved to enter into Church Union on the basis of the scheme prepared by the Joint Committee and on February 12/13, 1947 the Executive Body of TCC at its meeting held at Gooty resolved to form a Continuation Committee to carry on TCC s work until the formation of Diocesan Council as per the scheme of Union and to wind up the affairs of TCC and that on June 26 to 28, 1947 resolutions were passed in TCC General Body meeting at Cuddapah to join the Union and to dissolve TCC from that day and that TCC ceased to exist thereafter and Continuation Committee constituted by resolution dated February 12/13, 1947 took over its activities until merger. This fact of merger of TCC into the Church Union, as claimed by the appellants, is, however, disputed by the respondent who claims that the resolution was not passed by two-third majority and that TCC has contiuned to exist. On September 27, 1947, the Church of South India was inaugurated by special service held at St. George Cathedral, Madras and on September 26, 1947 Church of South India Trust Association (for short CSITA ), appellant herein, was incorporated under the Indian Companies Act, 1913 as trustee for the purpose of holding and administering the properties, funds, etc. of the Church of South India. On June 29, 1949, TCC was registered as a Society under the Societies Registration Act. On February 10, 1961, LMS transferred the properties in the Cuddapah and Anantpur districts in favour of CSITA. The case of the appellant is that LMS ceased to exist on June 1, 1966 as having merged in the Congregation Council for World Mission.

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