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2008 Supreme(SC) 1738

2009(1) Supreme 28
SUPREME COURT OF INDIA
(From Allahabad High Court)
Dr. Arijit Pasayat and Dr. Mukundakam Sharma, JJ.
State of U.P. & Anr. — Appellants
versus
Jagdish Saran Agrawal & Ors. — Respondents
Civil Appea Nos. 6757-6758 of 2008
(Arising out of S.L.P.(C) Nos. 1147-1148 of 2005)
Decided on : 25-11-2008

Advocates appeared:
For the Appellant :Pramod Swarup, T.N. Singh, Manoj Dwivedi and G. Venkateswara Rao, Advocates.
For the Respondents:H.L. Aggarwal, S.R. Singh, Sr. Advs., G.s. Bhatt, P.K. Bhatt, Rameshwar Prasad Goyal and Debasis Misra, Advocates.

IMPORTANT POINT
Dismissal for default not being dismissal on merits cannot operate as res judicata.

Headnote:Code of Civil Procedure, 1908 – Section 11 r/w Order IX, rule 9 – Order IX, rule 9 not applicable in the facts of the case – Dismissal for default not being dismissal on merits, cannot operate as res judicata. (Para 15)

       (1971)1 SCC 387; (1986)4 SCC 558; (1997)2 SCC 1962 – Relied upon.

       Facts of the case :

       1. The disputed land which is a Nazul property is owned by the State and is under the management of the Board. Nagar Palika has filed the Original Suit No.25 of 1960 in the court of Munsif for permanent injunction against Savai Mahendra Maharaja Sri Devendra Singh Joodev for restraining him from auctioning the land being the property of the State. The said suit filed by the Nagar Palika was dismissed.

       2.Thereafter, State of Uttar Pradesh initiated proceedings against the Maharaja under the Eviction Act which was numbered as DES Case No.521 of 1970 before the prescribed authority.

       3. During the pendency of the proceedings, the aforesaid Act was declared ultra vires by Supreme Court.

       4.State of Uttar Pradesh made necessary amendments and proceeded with the case after taking steps under the provisions of the Act and the case was re-numbered as Case No.521-353. Proceedings were dismissed for default.

       5.Thereafter the State initiated proceedings under the Act which was numbered as Case No.1/1988-89. Before the Prescribed Authority preliminary objection was raised on behalf of the alleged occupants contending that the proceedings were barred by the principles of res judicata as well as on the principles of Order IX Rule 9, CPC. The Prescribed Authority by Order dated 14th January, 1992 rejected the aforesaid objections and held that the orders passed in the Case No.521 of 1970 and 25 of 1960 do not operate as res judicata.

       6.Against the said order, Jagdish Sharan Agrawal and others approached the High Court by a Writ Petition which was dismissed.

       7.Appeal No.23 of 1992 before the District Judge, Lalitpur, was filed under Section 9 of the Act. District Judge held that the proceedings initiated by the State under Case No.1 of 1988-89 was barred by the principles of res judicata in view of the earlier orders passed in Suit No. 25 of 1960 and 521 of 1970. The present appellants took the stand that the judgment in question does not operate as res judicata between the parties in as much as in the said suit filed by the Nagar Palika, State of Uttar Pradesh was not a party.

       8. The High Court found that admittedly in suit No.25 of 1960, the State was not a party and therefore if any finding was recorded therein the same was not binding on the State. But so far as proceeding in Case No.521 of 1970 is concerned, the Eviction Act itself was held to be ultra vires by Supreme Court and consequently all proceedings taken herein are null and void and cannot be said to be binding on any person whatsoever, including the parties which were litigating there under. The Writ Petition was dismissed.

       Finding of the Court :

       Impugned order is not sustainable.

       Result : Appeals allowed.

       

JUDGMENT

Dr. Arijit Pasayat, J. —

1.Leave granted.

2.Challenge in this appeal is to the judgment of a learned Single Judge of the Allahabad High Court dismissing the writ petitions filed by the State of Uttar Pradesh and the Municipal Board Nagar Palika Lalitpur (hereinafter referred to as the ‘Board’). Both the writ petitions were directed against the order dated 11th February, 1994 passed by the District Judge, Lalitpur. By the said order learned District Judge allowed appeal No.23 of 1992 filed by the respondent No.1 Jagdish Sharan Agrawal and two others. State of U.P. and 27 others were parties. It was held in that order that the proceedings initiated by the State against Jagdish Sharan Agrawal and others under the Uttar Pradesh Public Premises (Eviction of Unauthorized Occupants) Act, 1971 (in short the ‘Act’) were barred by the principle of resjudicata, in view of the decision of the proceedings, which were initiated earlier by the Nagar Palika, Lalitpur, being suit No. 25 of 1960 as also in view of the dismissal of the proceedings which were initiated by the State of Uttar Pradesh being case No. 521-353 under Section 3(1) of the Uttar Pradesh Public Land (Eviction and Recovery of Rent and Damages) Act, 1959 (in short the ‘Eviction Act’).

3.The stand of the State before the High Court was that the disputed land which is a Nazul property is owned by the State and is under the management of the Board. Nagar Palika has filed the Original Suit No.25 of 1960 in the court of Munsif for permanent injunction against Savai Mahendra Maharaja Sri Devendra Singh Joodev for restraining him from auctioning the land being the property of the State. The said suit filed by the Nagar Palika was dismissed. The High Court noted that the judgment of the Trial Court was not brought on record and it was also not stated as to whether any appeal against the said judgment was filed or not. Thereafter, State of Uttar Pradesh initiated proceedings against the Maharaja under the Eviction Act which was numbered as DES Case No.521 of 1970 before the prescribed authority.

4.During the pendency of the proceedings, the aforesaid Act was declared ultra vires by this court and as a result thereof the State of Uttar Pradesh made necessary amendments and proceeded with the case after taking steps under the provisions of the Act and the case was re-numbered as Case No.521-353. Proceedings were dismissed for default by the Prescribed Authority by order dated 26th November, 1976. An application to recall the said order was filed which was dismissed for default on 3rd January, 1977 by the Prescribed Authority. Thereafter the State initiated proceedings under the Act which was numbered as Case No.1/1988-89. Before the Prescribed Authority preliminary objection was raised on behalf of the alleged occupants contending that the proceedings were barred by the principles of resjudicata as well as on the principles of Order IX Rule 9 of the Code of Civil Procedure, 1908 (in short the ‘CPC’) and consequently the case cannot be proceeded with. The Prescribed Authority by Order dated 14th January, 1992 rejected the aforesaid objections and held that the orders passed in the Case No.521 of 1970 and 25 of 1960 do not operate as resjudicata.

5.Against the said order, Jagdish Sharan Agrawal and others approached the High Court by a Writ Petition which was dismissed by order Dated 18th February, 1992 on the ground that the alternative remedy was available. Appeal No.23 of 1992 before the District Judge, Lalitpur, was filed under Section 9 of the Act. District Judge held that the proceedings initiated by the State under Case No.1 of 1988-89 was barred by the principles of res judicata in view of the earlier orders passed in Suit No. 25 of 1960 and 521 of 1970. The present appellants took the stand that the judgment in question does not operate as resjudicata between the parties in as much as in the said suit filed by the Nagar Palika, State of Uttar Pradesh was not a party. The State























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