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1967 Supreme(SC) 207

SUPREME COURT OF INDIA
K.N. WANCHOO C.J.I., R.S. BACHAWAT AND V. BHARGAVA, JJ.
Mulraj, Appellant
Versus
Murti Raghunathji Mahaaraj, Respondent.
Civil Appeal No. 1938 of 1966,
D/- 2-3-1967.
Advocates appeared
M/s. Yogeshwar Prasad and S.S. Khanduja, Advocates, for Appellant; Mr.Hardev Singh, Advocate, for Respondent.

Advocates:
HARDEV SINGH, S.S.Khanduja, YOGESHAR PRASAD

Headnote:ORDER OF HIGH COURT WITHDRAWING A CASE FROM A SUBORDINATE COURT - EXECUTIoN OF DECREE—STEPS TAKEN BETWEEN THE TIME STAY ORDER WAS PASSED AND THE TIME IT WAS BROUGHT TO ITS NOTICE - KNOWLEDGE OF STAY OR INJUNCTION ORDER - SALE INSPITE OF INJUNCTION ORDER IS A NULLITY - STAY OF PROCEEDINGS - Stay of Execution—DATE OF - WHEN AN ORDER OF ATTACHMENT TAKES EFFECT

       -it is not the date when the order is made but from the date of its communication and all proceedings in the subordinate Court after the passing of an order of transfer are not without jurisidiction unless it has the knowledge as such - Mulraj v. Murti Raghunathji, AIR 1967 SC 1386 - this case related to order of stay with reference to execution proceedings.

       -Section 151 of the Code would always be available to the Court executing the decree, when the stay order is brought to its notice and it can always act under this Section to set aside steps taken between the time the stay order was passed and the time it was brought to its notice, if that is necessary in the ends of justice and the party concerned asks it to do so. But that can only be done by the Court which has taken interim proceedings in the interest of justice under this Section provided the order is brought to its knowledge and a prayer is made to set aside the interim proceedings within a reasonable time. Otherwise the interim proceedings not a nullity and in the absence of such an exercise of power by the Court executing the decree under this Section, they will remain good for all purposes

       -an order of stay is as much a prohibitory order as an injunction order and unless the Court to which it is addressed has knowledge of it, it cannot deprive that Court of the jurisdiction to proceed with the execution before it. But there is one difference between an order of injunction and an order of stay arising out of the fact that an injunction order is usually passed against a party while a stay order is addressed to the court. As stay order is addressed to the Court, as soon as the Court has knowledge of it, it must stay its hand, if it does not do so, it acts illegally. Therefore in the case of stay order as closed to an order of injunction, as soon as the Court has knowledge of it, it must stay the hand and further proceedings are illegal but so long as the Court has no knowledge of the stay order it does not lose the jurisdiction to deal with the execution which it has under the Code -

       -where the Court stays proceedings it suspends the power of the Court whose proceedings are stayed to continue the proceedings and if the later Court passes some order in violation of the stay order, the order is without jurisdiction and all the proceedings before the court after the stay order are null and void and have no legal effect

       -an order for stay of execution made by the Appellate Court shall be effective from the date of communication of such order to the court of First instance

       -an order of attachment takes effect from the moment it is brought to the notice and not from the moment it is passed -

       

Judgement

WANCHOO, CJI. : This is an appeal by special leave against the judgement of the High Court of Allahabad. Brief facts necessary for present purposes are these. The respondent filed a suit against the appellant for eviction from a shop which the appellant had taken on monthly rent from the respondent. The suit was filed after permission had been obtained under the U.P. (Temporary) Control of Rent and Eviction Act, No. III of 1947, (hereinafter referred to as the Act), in the court of the Munsif in Jhansi. It was contested by the appellant and one of the points raised before the trial court was that as the permission to sue had been granted at a time when there was a stay order, the Magistrate granting the permission had no jurisdiction to do so and therefore the permission was nullity. On that basis it was contended that the suit should fail for no suit could continue under the Act without such permission.

2. The Munsif dismissed the suit. The respondent then went in appeal. The appeal court upheld the order of the Munsif taking the view that the permission granted after the stay order had been passed was a nullity. The respondent then came in second appeal to the High Court, and the only point considered there was whether the permission granted by the Magistrate was nullity or not. It may be mentioned that though the District Magistrate, the Magistrate who was dealing with the matter of permission, no knowledge of it when he granted the permission on October 4, 1961, had passed the stay order on September 29, 1961. The question that arose before the High Court therefore was whether the permission granted in these circumstances could be said to be a nullity. The High Court held that the stay order could not and did not take away the jurisdiction of the Magistrate from the moment it was passed and that as the Magistrate had no knowledge of or information about the stay order when he granted the permission on October 4, 1961, that permission was with jurisdiction and the suit would therefore be maintainable. As no other point was apparently in dispute in the High Court it allowed the appeal and granted a decree for ejectment and rent in favour of the respondent. The appellant then obtained special leave from this Court, as there is some conflict of opinion between the High Courts on this question.

3. As we have already indicated, the facts on the question raised before us are not in dispute. When the application for permission was pending before Sri Nigam, Magistrate I Class, who had jurisdiction to deal with that application by virtue of the authority delegated to him by the District Magistrate, it appears that the appellant applied for the transfer of proceedings relating to permission from Sri Nigam s court. On that transfer application, the District Magistrate passed an order staying further proceedings till the disposal of the transfer application. This order was not communicated to the Magistrate concerned by the office of the District Magistrate. Nor does it appear that the appellant informed the Magistrate of the order of stay with the result that on October 4, 1961, the Magistrate gave permission to the respondent to file a suit for eviction. When however the respondent filed the suit in the Munsif s court, the appellant raised the question that as a stay order had been passed on September 29, 1961, the permission granted on October 4, 1961 was a nullity as the Magistrate dealing with the matter had lost his jurisdiction thereunder.

4. There has been difference of opinion between the High Courts on the question of the effect of a stay order, particularly with reference to execution proceedings. The High Courts of Calcutta, Patna and Punjab have held that in such a case the stay order takes effect from the moment it is passed and the fact that the court executing the decree has no knowledge of it makes no difference and all proceedings taken in execution, after the stay order has been passed are without jurisdiction.















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