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1968 Supreme(Ori) 50

HIGH COURT OF ORISSA
G. K. Misra And B. K. Patra, JJ.
DIRECTOR OF INDUSTRIES - Appellant
Versus
JANARDAN NANDA - Respondent
First Appeal 82  Of  1964
Decided On : JUNE 24, 1968

Important Points

A notice under Section 80, C. P. C. is mandatory for suits under Section 43 of the Bihar and Orissa Public Demands Recovery Act, 1914, unless expressly excluded by any special statute.

Subject

Civil Law - Notice Under Section 80, C. P. C.

Act Referred

BIHAR AND ORISSA PUBLIC DEMANDS RECOVERY ACT : S.43(3)
CIVIL PROCEDURE CODE : S.80

Headnote

PUBLIC DEMANDS RECOVERY ACT - NOTICE UNDER SECTION 80, C. P. C. - SECTION 43 (3) - SUIT FOR CANCELLATION OF CERTIFICATE - NOTICE UNDER SECTION 80, C. P. C. IS MANDATORY UNLESS EXPRESSLY EXCLUDED BY ANY SPECIAL STATUTE.

Fact of the Case:

Plaintiff took a loan from the Government and furnished security under the Bihar and Orissa State Aid to Industries Act. A certificate was issued against him for the loan amount and interest. Plaintiff filed an objection before the Certificate Officer, which was overruled. An appeal against the same was dismissed. Plaintiff filed a suit under Section 43(3) of the Bihar and Orissa Public Demands Recovery Act, 1914, for a declaration that the certificate is void and should be canceled.

Finding of the Court:

The court held that a notice under Section 80, C. P. C. is mandatory unless expressly excluded by any special statute. In the absence of such an exclusion in the Act, the suit was liable to be dismissed for want of notice.

Issues: Whether a notice under Section 80, C. P. C. is necessary before a suit under Section 43 of the Bihar and Orissa Public Demands Recovery Act, 1914, can be instituted.

Ratio Decidendi: The court relied on the Supreme Court decision in Sawai Singhai v. Union of India, AIR 1966 SC 1068, which held that suits under Order 21, Rule 63 C. P. C. attract the provisions of Section 80, C. P. C. The court found that the identical reasons apply to suits under Section 43 of the Act.

Final Decision: The appeal was allowed, and the plaintiff's suit was dismissed for want of notice under Section 80, C. P. C.

Advocates Appeared:
L.RATH

G. K. MISRA, J.

( 1 ) PLAINTIFFS case may be put in short by eschewing out unnecessary details. He took a loan of Rs. 17000 from the Government on furnishing proper security under the Bihar and Orissa State Aid to Industries Act A certificate was issued against him for Rs. 19,200 inclusive of interest. Plaintiff filed objection before the certificate Officer in Certificate Misc. Case No. 51/58-59. His objection was overruled. An appeal against the same was dismissed. The suit is filed under section 43/ (3) of the Bihar and Orissa Public Demands Recovery Act, 1914 (hereinafter referred to as the Act) for a declaration that the certificate is void and that the same should be cancelled. A plea was taken that no proceeding was drawn against the plaintiff under the provisions of the State Aid Industries Act to obtain his explanation for the default and that the certificate was premature and without jurisdiction. In the written statement a plea was taken that the suit was liable to be dismissed as no notice was issued under Section 80, C. P. C. to the defendant, who is the director of Industries. Plaintiff failed to repay the loan for three instalments which fell due on 31-3-56, 31-3-57 and 31-3-58. He also did not furnish the utilisation certificate to the effect that the loan amount had been utilised for the purpose it was granted. Accordingly the certificate for the entire loan amount inclusive of interest was validly issued. Court's jurisdiction to try the suit was also questioned.

( 2 ) THE learned Subordinate Judge held that the certificate and the proceeding arising therefrom were illegal and void and that the Court had jurisdiction to try the suit. He held that notice under Section 80, C. P. C. was not necessary as the suit was a continuation of the certificate proceeding. He accordingly decreed the suit with costs. Against this decree, the defendant has filed the appeal.

( 3 ) THE learned Standing Counsel contended that the suit is liable to be dismissed as no notice under Section 80, C. P. C. was served on the defendant. Admittedly no notice has been served. Mr. Rath relied upon State of Seraikella v. Union of india, AIR 1951 SC 253; Hiraluxmi v. L-T. Officer. AIR 1955 Pat 404 and Hus-sain all Mirza v. State of Andh Pra, AIR 1983 Andh Pra 164 in support of his contention that a notice under Section 80 C. P. C. was not necessary. Section 43 (3) of the Act runs thus:

"43. The certificate-debtor may, at any time within six months-X X (3) if he appeals, in accordance with Section 60, from an order passed under Section 10 --from the date of the decision of such appeal. bring a suit in a Civil Court to have the certificate cancelled, or modified, and for any other consequential relief to which he may be entitled. "

Thus the Act itself makes provision for a suit when the objection of a certificate debtor is overruled in appeal.

( 4 ) QUESTION for consideration, however, is whether a notice under Section 80 C. P. C. is excluded by any provision under the Act, in AIR 1951 SC 253. Rule 5 of the Federal Court Rules, framed under Section 214 of the Government of India Act, 1935, laid down that none of the provisions of the code of Civil Procedure shall apply to any proceeding in the Federal Court unless specifically incorporated in those Rules. The provisions of Section 80 C. P. C. had not been incorporated in the Rules and that being so, their Lordships held that Section 80, C. P. C. could not affect suits instituted in the Federal Court under section 204, Government of India Act, 1935. There is no provision in the Act which excludes operation of Section 80, C. P. C.

( 5 ) AIR 1955 Pat 404 and AIR 1963 Andh Pra 164 support the contention of Mr. Rath. In the Patna case it was held that a suit under Section 25 of the Act was merely a continuation of the previous claim proceeding under Section 21 of that act and that no notice under Section 80, C. P. C. was necessary. The same view was taken in Andhra Pradesh case where a certificate




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