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2014 Supreme(SC) 751

DIPAK MISRA, V.GOPALA GOWDA
Rajni Rani – Appellant
Versus
Khairati Lal – Respondent


Judgement Key Points

Key Points:

  1. An order dismissing a counter-claim becomes a final adjudication and attains the status of a decree, which conclusively determines the rights of the parties involved (!) (!) .

  2. Such a decree can only be challenged through an appeal; it cannot be challenged under the constitutional jurisdiction of Article 227 of the Constitution of India (!) .

  3. A counter-claim filed by a defendant in a suit is in the nature of a cross-suit, and even if the main suit is dismissed, the counter-claim remains alive for adjudication as an independent claim (!) .

  4. The scheme of the Civil Procedure Code (CPC) mandates that a counter-claim shall have the same effect as a cross-suit and must be finally adjudicated within the same suit, with the court required to pronounce a final judgment on both the original claim and the counter-claim (!) .

  5. When a counter-claim is adjudicated and dismissed on merits, the order has the effect of a decree, and the rights of the parties with respect to that claim are conclusively settled (!) (!) .

  6. An order that finally determines the rights of the parties in respect of a counter-claim, especially one that is barred by procedural principles such as Order 2, Rule 2 of CPC, is a substantive adjudication and thus has the status of a decree (!) (!) .

  7. Such a decree can be challenged only through an appeal, and not through supervisory or revisional jurisdiction under Article 227 or Section 115 of CPC (!) (!) .

  8. The challenge to an order that has the status of a decree must be made before the proper appellate forum, and failure to do so renders the order unassailable under constitutional or revisional jurisdiction (!) .

  9. The order dismissing the counter-claim, after adjudication on merits, is final and conclusive, and the rights of the parties are settled accordingly (!) (!) .

  10. The exercise of revisional or supervisory jurisdiction to unsettle such an order is not permissible; instead, the appropriate remedy is to prefer an appeal (!) (!) .

  11. The order passed by the trial court, which has the status of a decree, cannot be invalidated or set aside under Article 227 of the Constitution, as that jurisdiction is not meant for re-evaluating substantive rights but for correcting procedural errors (!) .

  12. The appellate process is the proper and exclusive remedy for challenging final orders that have the effect of a decree, ensuring the finality and conclusiveness of such judgments (!) .

These points collectively emphasize that orders finalizing and adjudicating counter-claims on merits are considered decrees, which must be challenged through appeals, not supervisory or revisional jurisdiction.


Judgment :-

Dipak Misra, J.

The centrirorial issue that has stemmed in this appeal by grant of special leave is whether an order of dismissal of the counter-claim being barred by principles of Order 2, Rule 2 of the Code of Civil Procedure (C.P.C.) can be set aside in exercise of revisional jurisdiction under Section 115 of the C.P.C. or in exercise of power of superintendence under Article 227 of the Constitution of India or is it required to be assailed by preferring an appeal.

2. The factual score need not be exposited in detail. Suffice it to state that one Phoolan Rani, wife of Om Prakash, and another instituted Civil Suit No. 107B of 2003 seeking a declaration that they are the owners in possession of the land admeasuring 1/9th share in the suit land and further praying for permanent injunction against the defendants. After issue of notice, the defendants entered contest and the defendant Nos.12 to 14 filed a counter-claim putting forth that they had the right, title and interest as the original owner, Jeth Ram, had executed a Will dated 18.5.1995 in their favour.

3. After the counter-claim was filed, defendant Nos. 1 and 2 filed an application for dismissal of the counter-claim
































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