HIGH COURT OF CALCUTTA
B. N. Banerjee, D. Basu
BOKARO AND RAMGUR LTD. - Appellant
Versus
STATE OF BIHAR - Respondent
Civil Rule 227 (M) Of 1961
Decided On : MARCH 10, 1964
CIVIL PROCEDURE - Jurisdiction of Court - Power to vary consent order - Extension of time - Inherent powers - Section 151 read with Section 148 of the Code of Civil Procedure.
Fact of the Case:
Appellant failed to deposit money within the time specified in a consent order passed by the court, which resulted in the vacation of an injunction order. Appellant applied to the court to condone the delay or modify the order, or issue a fresh injunction.
Finding of the Court:
The court held that it had jurisdiction to vary the consent order and grant a fresh injunction under Section 151 read with Section 148 of the Code of Civil Procedure, as it retained seisin over the main proceeding.
Issues: 1. Whether the court had jurisdiction to vary a consent order and relieve the appellant from the mischief of a default clause in an order made by the court? 2. Whether the court could extend time for compliance with the terms of a consent order after the expiry of the time limit? 3. Whether the court could grant a fresh injunction in lieu of the vacated injunction order?
Ratio Decidendi: 1. The court has jurisdiction to vary a consent order and relieve a party from the mischief of a default clause, in exercise of its inherent powers under Section 151 read with Section 148 of the Code of Civil Procedure. 2. The court may extend time for compliance with the terms of a consent order after the expiry of the time limit, if sufficient cause is shown and the court retains seisin over the main proceeding. 3. The court may grant a fresh injunction in lieu of a vacated injunction order, on terms and conditions deemed appropriate, without prejudice to the rights and contentions of the parties in the main suit.
Final Decision: The court varied the consent order and granted a fresh injunction, subject to the appellant depositing Rs. 30,000/- by the 10th day of each succeeding month until the disposal of the appeal. The injunction was made operative against the State of Bihar only.
( 2 ) IN Civil Rule No. 227 (m) of 1961, arising out of F. M. A. No. 77 of 1961, there was an order of injunction passed by this Court, restraining the State of Bihar from proceeding with Title Suit No. 45 of 1960, pending in the Court of a Subordinate Judge, at Hazaribagh, and from acting in violation of the terms of a previous compromise, on conditions hereinafter appearing:"by consent of parties, this Rule is made absolute and the injunction will continue till the disposal of the appeal on the following conditions; (1) The appellant company shall deposit in the Hazaribagh Subordinate Judge's Court, in title Suit No. 45 of 1960, Rs. 50,000 (Rupees fifty thousand) only by the 10th May, 1962 and shall also go on depositing Rs. 30,000 (Rupees thirty thousand) only by the 10th day of each succeeding month until disposal of the appeal, now pending in this Court, (2) In default of payment of any of the instalments as aforesaid, the Rule shall stand discharged and the injunction order will stand vacated, (3) There will be no order as to costs. The above arrangement is without prejudice to the claims and contentions of the parties In the above mentioned suit No. 45 of 1960 of the Subordinate Judge's Court at Hazaribagh". The above order was passed on April 9, 1962.
( 3 ) THE appellant petitioner deposited the sum of Rs. 50,000 (Rupees fifty thousand) within the time allowed by the consent order, and thereafter also deposited several sums of Rs. 30,000 (Rupees thirty thousand) per month, within the time fixed by the said order. Between February 1963 to November, 1963, however, the appellant petitioner did not deposit the sum of Rs. 30,000 (Rupees thirty thousand) per month, within the time fixed by the consent order, namely, in the months of February, March, June, July, August, September, October and November, 1963. The reason why the appellant petitioner could not put in the money, in terms of the consent order, was that due to temporary paucity of funds, occasioned by non-realisation of outstanding claims, the payment could not be made in lime.
( 4 ) BY not depositing the money, in terms of the consent order, the appellant petitioner invited the mischief of Clause (2) of the consent order above quoted. It is in these circumstances, that the appellant petitioner applied before this Court, on February 12, 1964, praying: (1) that the delay in making the deposits be condoned, or (2) that the order, dated April 9, 1962, be modified by substituting the words "last Jay of each succeeding month" for the words "10th day of succeeding month" in Clause (1) of the consent order, or (3) that a fresh Rule with an interim injunction be issued calling upon the State of Bihar to show cause why it should not be restrained from proceeding with Title Suit No. 45 of 1960 in the Court of the Subordinate Judge at Hazaribagh pending the disposal of the appeal before this Court.
( 5 ) BY consent of the State of Bihar, the application was directed to be heard as a contested Application, without issuing a formal rule nisi.
( 6 ) MR. P. N. Mitter, learned Advocate for the appellant petitioner, strongly relied on the judgment of the Supreme Court in Mahanth Ramdas v. Gangadas, in which Hidayatullah, J. , speaking for the Court, made the following observations:"the application for extension of time was made before the time fixed by the High Court for payment of deficit court-fee had actually run out That application appears not to have been considered at all, in view of the peremptory order which had been passed earlier by the Division Bench hearing the appeal, mainly because on the date of the hearing of the petition for extension of time, the period had expired. The short question is Whether the High Court, in the circums
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