# P.S. SA THAPPAN (DEAD) BY LRS v. ANDHRA BANK LTD. AND ORS

- **Citation:** [2004] Supp. 5 S.C.R. 188
- **Court:** Supreme Court of India
- **Decided:** 2004-10-07
- **Case number:** Civil Appeal No. 689 of 1998
- **Bench:** N. Santosh Hegde, S.N. V Aria Va, B.P. Singh, H.K. Sema, S.B. Sinha
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/p-s-sa-thappan-dead-by-lrs-v-andhra-bank-ltd-and-ors-20297
- **Pages:** 84

## Headnote

Code of Civil Procedure, I 908:
S. / 04(1) rlw or 43 R. l andS. l 04(2)-Bar under S. I 04(2)-Applicability
to appeals permitted by any law inforce~Nature of-Held, S.104(1) rlw Or.
43 R. I confers additional powers of appeals against orders passed in appeal
under S.104(1)-Thus, S.104(2) does not bar appeals permitted by any law in
D force.
S. I 04(1)-Scope of-Explained
S.104(2) & (1) and 4 and JOO-A (prior to its amendment by Act 22 of
2002)-Bar under S.104(2)-Applicability of to appeal under c/.15 of the
E Letters Patent of the Madras High Court-Held, S.104(1} specifically saves
LPAs and the bar under S.104(2) does not apply thereto-A harmonious
construction of S. I 04 leads to no other conclusion-Thus, the words in S.100A are not by way of abundant caution.
Ss. 3 and 9-Powers and position of District Court vis-a-vis-High
F Court-Discussed
Ss.96-103,104 and 105-Nature of appeals under-Discussed
High Courts-Letters Patent-Legal status-Primacy over CPC in case
of conflict with-Explained-Letters Patent of Bombay High Court-Letters
G Patent of Madras High Court.
Precedents-Ratio decidendi-Principles of culling out of-ExplainedConstitution of India, Art. 141.
The question involved in these appeals against the judgments of the
II
188
P.S. SATHAPPAN v. ANDHRA BANK LTD.
189
Madras High Court is the interpretation of Section 104 C.P.C. vis-a-vis A
Clause 15 of the Letters Patent of the High Court of Madras. It was held
by the High Court of Madras that a Letters Patent Appeal is not
maintainable against an order passed by a Single Judge of the High Court
sitting in Appellate Jurisdiction. Hence the appeals.
When the appeals came before a Division Bench of this Court, it B
noticed a conflict of opinion between a three Judge Bench of this Court
in New Kenilworth Hotel (P) Ltd. v. Orissa State Finance Corporation and
Ors., [1997] 3 SCC 462 and a two Judge Bench in Resham Singh Pyara
Singh v. Abdul Sattar, [1996) 1 SCC 49, on the one hand and a Constitution
Bench decision in Guiab Bai and Anr. v. Puniya, (1996) 2 SCR 102 on the C
other hand and referred the matter to a Constitution Bench. Thus these
appeals are before the Constitution Bench.
Allowing the appeals and remitting the matter back to the High
Court, the Court
D
HELD: (Per majority - S.N. Variava, J. for himself and B.P. Singh and '
H.K Serna, JJ.]
1.1. The unanimous view of all Courts till 1996 was that Section
104(1) C.P.C. specifically saved Letters Patent Appeals and the bar under
Section 104(2) did not apply to Letters Patent Appeals. The view has been E
that a Letters Patent Appeal cannot be ousted by implication but the right
of an Appeal under the Letters Patent can be taken away by an express
provision in an appropriate Legislation. The express provision need not
refer to or use the words 'Letters Patent' but if on a reading of the
provision it is clear that all further Appeals are barred then even a Letters
Patent Appeal would be barred. [262-F)
F
1.2. A contrary view was adopted by a 2 Judge Bench of this Court.
In this case there was an Appeal, before a Single Judge of the High Court,
against an order of the City Civil Court granting an interim injunction.
The question was whether a Letters Patent Appeal was maintainable G
against the order of the Single Judge. This Court, without considering any
of the other previous authorities of this Court, without giving any reasons
whatsoever, did not follow the ratio laid down in Shah Babula/ Khimji's
case. (262-G, HJ
1.3. Then in the case of New Kenilworth Hotel (P) Ltd., the question, H
190
SUPREME COURT REPORTS [2004) SUPP. 5 S.C.R.
A whether a Letters Patent Appeal was maintainable, again arose. In this
case a status quo order was passed by the trial Court. In Appeal, a single
Judge of the High Court, vacated the Order of status quo. Attention of
this Court was drawn to the 3 Judge Bench decision in the case of Shah
Babula/ Khimji (supra) and to the 2 Judge Bench decision in the case of
B Resham Singh Pyara Singh (supra). S

## Text

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A
B
c
P.S. SA THAPPAN (DEAD) BY LRS
v.
ANDHRA BANK LTD. AND ORS.
OCTOBER 7, 2004
(N. SANTOSH HEGDE, S.N. V ARIA VA, B.P. SINGH,
H.K. SEMA AND S.B. SINHA, JJ.]
Code of Civil Procedure, I 908:
S. / 04(1) rlw or 43 R. l andS. l 04(2)-Bar under S. I 04(2)-Applicability
to appeals permitted by any law inforce~Nature of-Held, S.104(1) rlw Or.
43 R. I confers additional powers of appeals against orders passed in appeal
under S.104(1)-Thus, S.104(2) does not bar appeals permitted by any law in
D force.
S. I 04(1)-Scope of-Explained
S.104(2) & (1) and 4 and JOO-A (prior to its amendment by Act 22 of
2002)-Bar under S.104(2)-Applicability of to appeal under c/.15 of the
E Letters Patent of the Madras High Court-Held, S.104(1} specifically saves
LPAs and the bar under S.104(2) does not apply thereto-A harmonious
construction of S. I 04 leads to no other conclusion-Thus, the words in S.100A are not by way of abundant caution.
Ss. 3 and 9-Powers and position of District Court vis-a-vis-High
F Court-Discussed
Ss.96-103,104 and 105-Nature of appeals under-Discussed
High Courts-Letters Patent-Legal status-Primacy over CPC in case
of conflict with-Explained-Letters Patent of Bombay High Court-Letters
G Patent of Madras High Court.
Precedents-Ratio decidendi-Principles of culling out of-ExplainedConstitution of India, Art. 141.
The question involved in these appeals against the judgments of the
II
188
P.S. SATHAPPAN v. ANDHRA BANK LTD.
189
Madras High Court is the interpretation of Section 104 C.P.C. vis-a-vis A
Clause 15 of the Letters Patent of the High Court of Madras. It was held
by the High Court of Madras that a Letters Patent Appeal is not
maintainable against an order passed by a Single Judge of the High Court
sitting in Appellate Jurisdiction. Hence the appeals.
When the appeals came before a Division Bench of this Court, it B
noticed a conflict of opinion between a three Judge Bench of this Court
in New Kenilworth Hotel (P) Ltd. v. Orissa State Finance Corporation and
Ors., [1997] 3 SCC 462 and a two Judge Bench in Resham Singh Pyara
Singh v. Abdul Sattar, [1996) 1 SCC 49, on the one hand and a Constitution
Bench decision in Guiab Bai and Anr. v. Puniya, (1996) 2 SCR 102 on the C
other hand and referred the matter to a Constitution Bench. Thus these
appeals are before the Constitution Bench.
Allowing the appeals and remitting the matter back to the High
Court, the Court
D
HELD: (Per majority - S.N. Variava, J. for himself and B.P. Singh and '
H.K Serna, JJ.]
1.1. The unanimous view of all Courts till 1996 was that Section
104(1) C.P.C. specifically saved Letters Patent Appeals and the bar under
Section 104(2) did not apply to Letters Patent Appeals. The view has been E
that a Letters Patent Appeal cannot be ousted by implication but the right
of an Appeal under the Letters Patent can be taken away by an express
provision in an appropriate Legislation. The express provision need not
refer to or use the words 'Letters Patent' but if on a reading of the
provision it is clear that all further Appeals are barred then even a Letters
Patent Appeal would be barred. [262-F)
F
1.2. A contrary view was adopted by a 2 Judge Bench of this Court.
In this case there was an Appeal, before a Single Judge of the High Court,
against an order of the City Civil Court granting an interim injunction.
The question was whether a Letters Patent Appeal was maintainable G
against the order of the Single Judge. This Court, without considering any
of the other previous authorities of this Court, without giving any reasons
whatsoever, did not follow the ratio laid down in Shah Babula/ Khimji's
case. (262-G, HJ
1.3. Then in the case of New Kenilworth Hotel (P) Ltd., the question, H
190
SUPREME COURT REPORTS [2004) SUPP. 5 S.C.R.
A whether a Letters Patent Appeal was maintainable, again arose. In this
case a status quo order was passed by the trial Court. In Appeal, a single
Judge of the High Court, vacated the Order of status quo. Attention of
this Court was drawn to the 3 Judge Bench decision in the case of Shah
Babula/ Khimji (supra) and to the 2 Judge Bench decision in the case of
B Resham Singh Pyara Singh (supra). Shah Babula/ Khimji's case being a 3
Judge Bench decision would prevail over Resham Singh Pyara Singh 's case.
It was also a binding decision on this Bench yet surprisingly the Court
followed Resham Singh Pyara Singh 's case. Of course the other decisions
of this Court do not appear to have been brought to the attention of the
Court. In this case it was also held that the concerned Order was not
C covered by Clause 10 of the Letters Patent. It has been omitted to be
noticed that the concerned Letters Patent had three limbs as set out in
Central Mine Planning & Design Institute Ltd. (263-D, E, HJ
Resham Singh Pyara Singh v. Abdul Sattar, (1996) 1 SCC 49 and New
Kenilworth Hotel (P) Ltdv. Orissa State Finance Corporation and Ors., (1997)
n· 3 sec 462, overruled.
Hurrish Chunder Chowdhry v. Kali Sundari Debia, 10 I.A. p. 4; L. Ram
Sarup v. Mt. Kaniz Ummehani, AIR (1937) Allahabad 165; Shah Babula/
Khimji v. Jayaben D. Kania, (1981) 4 SCC 8; National Sewing Thread Co.
Ltd., Chidambaram v. James Chadwick & Bros. Ltd., AIR (1953) SC 357;
E Union of India v. Mahindra Suppl)! Company, (1962) 3 SCR 497; South Asia
Industries (P) Ltd. v. S.B. Sarup Singh and Ors., AIR (1965) SC 1442; Guiab
Bai v. Puniya, (1966) 2 SCR 102 and Central Mine Planning & Design
Institute Ltd. v. Union of India, (2001) 2 SCC 588, referred to.
F
2. Even after Resham Singh Pyara $ingh and New Kenilworth Hotel (P)
Ltd. two decisions this Court continued to hold thata Letters Patent Appeal
is not affected. Thus, the consensus of judicial opinion has been that
Section 104(1) Civil Procedure Code expressly saves a Letters Patent
Appeal. (264-E)
G
Resham Singh Pyara Singh v. Abdul Sattar, (1996) 1 SCC 49; New
Kenilworth Hotel (P) Ltd v. Ori~sa State Finance Corporation and Ors., (1997)
3 SCC 462; Vinita M. Khanolkar v. Pragna M. Pai, (1998) 1 SCC 500;
Chandra Kanta Sinha v. Oriental Insurance Co. Ltd., (2001) 6 SCC 158 and
Sharda Devi v. State of Bihar, (2002) 3 SCC 705, referred to.
H
3.1. Sub-section (1) of Section 104 CPC provides for an appeal from
-
P.S. SATHAPPAN v. ANDHRA BANK LTD.
191
the orders enumerated under sub-section (I) which contemplates an appeal A
from the orders enumerated therein, as also appeals expressly provided
in the body of the Code or by any law for the time being in force. Subsection (1) therefore contemplates three types of orders from which appeals
are provided namely, (1) orders enumerated in sub-section (l); (2) appeals
otherwise expressly provided in the body of the Code and 3) appeals_
provided by any law for the time being force. 1t is· not disputed that an B
appeal provided under the Letters Patent of the High Court is an appeal
provided by a law for the time being in force. As such an appeal is
expressly saved by Section 104(1). Sub-clause 2 cannot apply to such an
appeal. Section 104 has to be read as a whole. Merely reading sub-clause
(2) by ignoring the saving clause in sub-section (1) would lead to a conflict C
between the two sub-clauses. Read as a whole and on well established
principles of interpretation it is clear that sub-clause (2) can only apply
to appeals not saved by sub-clause (1) of Section 104. The finality provided
by sub-clause (2) only attaches to Orders passed in Appeal under Section
104, i.e., those Orders against which an Appeal under "any other law for
the time being in force" is not permitted. Section 104(2) would not thus D
bar a Letters Patent Appeal. Effect must also be given to Legislative intent
of introducing Section 4 C.P.C. and the words "by any law for the time
being in force" in Section 104(1). This was done to give effect to the
Calcutta, Madras and Bombay views that Section 104 did not bar a Letters
Patent. As Appeals under "any other law for the time being in force" E
undeniably include a Letters Patent Appeal, such appeals are now
specifically saved. Section 104 must be read as a whole and harmoniously.
If the intention was to exclude what is specifically saved in sub-clause (1 ),
then there had to be a specific exclusion. A general exclusion of this nature
would not be sufficient. It is not that a general exclusion would never oust
a Letters Patent Appeal. However when Section 104(1) specifically saves. F
a Letters Patent Appeal then the only way such an appeal could be
excluded is by express mention in Section 104(2) that a Letters Patent
Appeal is also prohibited. (266-F, G, H; 261-A, B, C, D, E)
3.2. A specific exclusion may be clear from the words of a statute G
even though no specific reference is made to Letters Patent. But where·
there is an express saving in the statute/section itself, then general words
to the effect that "an appeal would not lie" or "Order will be final" are
not sufficient. In such cases, i.e., where there is an express saving, there
must be an express exclusion. Sub-clause (2) of Section 104 does not
provide for any express exclusion. When the Legislature wanted to exclude H
192
SUPREME COURT REPORTS (2004] SUPP. 5 S.C.R .
. A a Letters Patent Appeal it specifically did so. The words used in Section
lOOA CPC are not by way of abundant caution. By the Amendment Acts
of 1976 and 2002 a specific exclusion is provided as the Legislature knew
that in the absence of such words a Letters Patent Appeat would not be
barred. The Legislature has been aware that it had incorporated the saving
B clause in Section 104(1) and incorporated Section 4 in the C.P.C. Thus
now a specific exclusion has been provided. Now by virtue of Section IOOA
no Letters Patent Appeal would be maintainable. However; it is an
admitted position that the law which would prevail would be the law at
the relevant time. At the relevant time neither Section IOOA nor Section
104(2) barred a Letters Patent Appeal. Applying the above principle to
C the facts of this case, the appeal under Clause 15 of the Letters Patent is
an appeal provided by a law for the time being in force. Therefore, the
finality contemplated by Sub-section (2) of Section 104 did not attach to
an Appeal passed under such law. [267-H; 268-A, B, D, G, H; 269-A)
4. Undoubtedly, Clause 44 of the Letters Patent permits amendment
D or alteration of Letters Patent but then which legislation is not subject to
amendment or alteration. CPC is also subject to amendments and
alterations. In fact it has been amended on a number of occasions. The
only unalterable provisions are the basic structure of our Constitution.
Merely because there is a provision for amendment does not mean that,
E in the absence of an amendment or a contrary provision, the Letters Patent
is to be ignored. To say that a Letters Patent is a subordinate piece of
legislation is to not understand the true nature of a Letters Patent. As has
been held in Vinita Khanolkar 's case and Sharda Devi's case a Letters Patent
is the Charter of the High Court. As held in Shah Babula/ Khimji's case a
Letters Patent is the specific law under which a High Court derives its
F powers. It is not any subordinate piece of legislation. A Letters Patent
cannot be excluded by implication. Further it is settled law that between
a special law and a general law the special law will always prevail. A
Letters Patent is a special law for the concerned High Court. Civil
Procedure Code is a general law applicable to all Courts. It is well settled
G law, that in the event of a conflict between a special law and a general
law, the special law must always ·prevail. There is no conflict between
Letters Patent and Section 104 CPC but if there was any conflict between
a Letters Patent and the Civil Procedure Code then the provisions of
Letters Patent would always prevail unless there was a specific ex~Iusion.
T_his is also clear from Section 4 of Civil Procedure Code which provides
H that nothing in the Code shall limit or affect any special law. As set out in
P.S. SATHAPPAN v. ANDHRA BANK LTD.
193
Section 4 C.P.C. only a specific provision to the contrary can exclude the A
special law. The specific provision would be a provision like Section lOOA.
[269-B, C, D, E, F,)
Vinita M Khanolkar v. Pragna M Pai, [1998) l SCC 500; Sharda Devi
v. State of Bihar, [2002) 3 SCC 705 and Shah Babula! Khimji v. Jayaben D.
Kania and Anr., [1981) 4 sec 8, relied on.
B
5. If a Statute permits an Appeal, it will lie. If a Statute does not
permit an Appeal, it will not lie. Under the Land Acquisition Act, Guardian
and Wards Act and the Succession Act a further Appeal is permitted whilst
under the Arbitration Act a further Appeal is barred. Thus different
statutes have differing provisions in respect of Appeals. There is nothing C
anomalous in that. A District Court cannot be compared to a High Court
which has special powers by virtue of Letters Patent. The District Court
does not get a right to entertain a further Appeal as it does not have "any
law for the time being in force" which permits such an Appeal. In any
event there is no provision which permit a larger Bench of the District D
Court to sit in Appeal against an order passed by a smaller Bench of that
Court. Yet in the High Court even, under Section 104 read with Order
43 Rule 1 C.P.C., a larger Bench can sit in Appeal against an order of a
Single Judge. Section 104 itself contemplates different rights of Appeals.
Appeals saved by Section 104(1) can be filed. Those not saved will be
barred by Section 104(2). There is nothing anomalous in such a situation; E
Consequently the plea of discrimination must be rejected. The Order of
the High Court cannot be sustail!ed. It is hereby set aside. The matters
are remitted back to the High Court for decision on merits.
[270-G; 271-A, B, CJ
South Asia Industries Private Ltd v. S.B. Sarup Singh and Ors., [1965) F
2 SCR 756, relied on.
Per minority (by S.B. Sinha, J. for himself and N. Santosh Hegde, J.):
1.1. Section 104 of the Code of Civil Procedure has to be read as a
whole. Sub-section (1) of Section 104 provides for appeals from the orders
specified therein and from no other; save as otherwise expressly provided G
in the body of the said Code or any law for the time being in force. ·When
the special statute confers a right of appeal, such right is saved, but by
reason thereof no right of appeal is created under Section 104 of the Code.
When a right of appeal is conferred under a special statute, the bar
contained in sub-section (2) of Section 104 of the Code would not operate H
194
SUPREME COURT REPORTS [2004) SUPP. 5 S.C.R.
A and a right of intra-court appeal provided for in the Letters Patent of the
High Court subject to any statutory embargo would, thus, be saved. To
put the matter differently, if a right of appeal is created by a statute, the
same would be governed by the terms thereof. The question as to whether
any appeal governed by Clause 15 of the Letters Patent is maintainable
B or not will have to be judged having regard to the provisions contained
therein as also the scheme thereof. [210-D, E, F)
1.2. Sections 104 and 105 provide for an integrated scheme. The
provisions contained therein must be read as a whole. By' reason of subsection (1) of Section 104, a limited right of appeal has been conferred in
C relation to the categories of cases specified therein. However, if an order
is passed which does not come within the purview of sub-section (1) of
Section 104, the right of appeal must be referable to any other provision
of the Code, as for example, Section 96 or Section 100 or any other special
statute. Section 104 provides for an appeal from an o·rder passed by an
appropriate court. Section 104 and Order XLill of the Code contain
D provisions as regard appealability of the orders in the cases specified
therein and in that view of the matter they must be invoked in their
entirety and not in isolation. (211-B, C, DJ
1.3. A right of appeal is a creature of statute and the said right, thus,
can only be enjoyed if law confers the same. The Legislature thought it
E fit to confer such a right upon the suitor by reason of Section 104 of the
Code read with Order XLIII thereof. When a right is granted under a
statute, a further right of appeal must receive such construction which
would give effect to the plain meaning of the words emphasized in the
sec~ion. By reason of sub-section (1) of Section 104, apart from the orders
p made appealable therein, the Code recognizes that there may be other
o_rders appealable under any other law for the time being in force and
further provides that other orders save as otherwise expressly provided
in the body of the Code or by any law for the time being in force, would
not be appealable ones. Sub-section (1) of Section 104 of the Code provides
for an appeal from the original order whether passed by a subordinate
G court or High Court exercising original jurisdiction and not from an
appellate order. In other words, it provides for a fitst appeal. An appeal
under Clause 15 ofthe Letters Patent is saved under Sub-section (1) of
Section 104 of the Code when a right of appeal is required to be exercised
in relation to an original order. An appellate order is not contemplated •
H by Sub-section (1) of Section 1.04 of the Code. Letters Patent of a High
P.S. SATHAPPAN v. ANDHRA BANK LTD.
195
Court or a special statute also in the context of Section 104(1) of the Code A
do not speak of an appellate order. Thus, when an appeal under Section
104(1) or the Letters Patent of the High Court is availed of, there is no
question of any further appeal unless the same is provided for under the
statute itself. Sections 4 and 104 of the Code, furthermore, must be read
together. Appeal under the special statute is saved only to the extent a B
contrary provision is not contained in other provision thereof.
[211-E, F, G, H; 212-A, BJ
2.1. For proper construction of Section 104 of the Code, vis-a-vis
Clause 15 of the Letters Patent, it is necessary to ascertain the intention
of the Parliament. If a right of appeal, it is trite, is a creature of statute, C
it must be governed thereby. Sub-section (2) of Section 104 clearly states
that no appeal from an order passed under sub-section (1) thereof would
be maintainable. Proviso appended to Section 104 of the Code provides
for a limited right of appeal fn respect of clause (ft) of sub-section (1) of
Section 104 of the Code which is an indicia of the fact that such a right
may be circumscribed. The statute has used the language in the negative D
and, thus must be construed as mandatory. In view of the fact that an
appeal from an order specified in Section 104 of the Code is maintainable
only thereunder and from no other it leads to incongruity that in the event
the forum is the High Court the appellate judgment would be governed
by Clause 15 of the Letters Patent, but in the event the forum is the District E
Judge, the judgment would be governed by sub-section (2) of Section 104
of the Code. If such a contention is accepted, the same 'Yould not only give
rise to an anomalous situation which may be culled out from a plain
reading of the said provision but also would give rise to different treatment
to different classes of litigants, although a right of appeal is available to
both the classes from orders of similar nature which possibility should,
1F
as far as possible, be avoided. The wordings of Section 104(2) of the Code,
do not call for more than one interpretation. Liberal interpretation, as is
well known, is the rule. Furthermore, it is now well-settled that when two
interpretations of a statute are possible, the court may prefer and adopt
the purposive interpretation having regard to object and intent thereof. G
(213-E, F, G, H; 214-A, Bl
Swedish Match AB and Anr. v. Securities & Exchange Board, India and
Anr., (2004) 7 SCALE 158, relied on.
2.2. The purport and object of enacting sub-section (2) of Section
104 of the Code is to avoid delay in disposal of the matter. When the H
196
SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.
A statutory intention of minimizing the delay in the finality of the decision
is manifest, the Court must interpret the provisions accordingly. Appeals
under the aforementioned provision as also under Order LXIII of the Code
relate to interlocutory orders. By reason of an order passed thereunder
the matter may not be finally disposed of. If the Parliament in the
B aforementioned situation thought it fit to cut down a further appeal, no
exception thereto can be taken. In any event, even if it be held that by
reason of sub-section (2) of Section 104 of the Code a party may be
deprived of a Letters Patent Appeal in terms of Clause 15 of the Letters
Patent, he would be at liberty to file, in an appropriate case,,an application
under Article 136 of the Constitution of India before· this Court. Even, in
C a case where the remedy under Section 104(1) is not availed of, in an
appropriate case the order may be questioned in the appeal against the
ultimate decree in terms of Section 105 thereof. [214-C, D, E]
D
Municipal Corporation of Brihanmumbai'and Anr. v. State Bank of India,
[1999) 1 sec 123, relied on.
3.1. Letters Patent is a special statue but in the event of a conflict,
the provisions of the Code shall prevail. The power under Clause 15 of
the Letters Patent is not a constitutional power of a High, Court. [214-GJ
Vinita M Khano/kar v. Pragna M Pai and Ors., (1998) 1 SCC 500
E Sharda Devi v. State of Bihar, [2002) 3 SCC 705, distinguished.
Her Majesty the Queen v. Burah, (1878) 3 PC 889 and Chunial Basu
and Anr. v. The Hon 'ble Chief Justice of the High Court at Calcutta and Ors.,
AIR (1972) Calcutta 470, referred to.
3.2. The Letters Patent although is a subordinate legislation but
F nevertheless would be a law within the meaning of Articles 225 and 372
of the Constitution of India, but the same cannot prevail over a Legislative
Act, if Clause 44 of the Letters Patent is to be given a proper meaning.
The provisions of Letters Patent despite attainment of independence by
India are saved by Section 106 of the Government of India Act, 1919,
G Section 223 of the Government of India Act, 1935, Clause 2(1) of India
(Adaptation of Existing Laws) Order, 1949 and Section 18(3) of the
Independence Act, 1947. Letters Patent, thus, would undoubtedly come
within the meaning of existing law but the status thereof cannot be higher
than that of the statute made law. Not only in terms of Clause 44 of the
Letters Patent, but having regard to the fact that the same is a subordinate '
H legislation, it would be subject to la,ws made by a competent legislature.
P.S. SATHAPPAN v. ANDHRA BANK LTD.
197
The Letters Patent is not a statutory enactment although it has the force A
of law. Clause 44 of the Letters Patent in no uncertain terms states that
the provisions thereof would be subject to the legislative powers of the
Governor-General in Legislative Council, and also of the Governor .
General in Council under Section 71 of the Government of India Act, 1915.
(215-C, D, El B
Printers (Mysore) Ltd. v. MA. Rasheed and Ors., [2004) 4 SCC 460,
relied on.
Black's Law Dictionary, Fifth Edition, page 1278, referred to.
3.3. The provisions of the Letters Patent are also in all respects C
amenable to amendments and alterations by any Legislative or
Parliamentary Acts. The Code of Civil Procedure is a Parliamentary Act.
Section 4 of the Code saves only such provisions in relation whereto then~
does not exist any provision contrary thereto in the Code. The said clause
would, thus, apply only when there is no specific provision in the Code tc;i D
the contrary or in any other provision contained in any other special
statute. Thus, there is no hesitation in coming to the conclusion that when
an appeal is maintainable only in terms of sub-section (1) of Section 104,
sub-section (2) thereof would control such appeal and the limitation
provided thereunder on further appeal shall be fully applicable. Thti
Letters Patent under the seal may be issued for various purposes, but E
primarily by way of executive function. The Letters Patent, however, may
be issued also on the advice of the Privy Council or under a Statute. No
Letters Patent Appeal would lie against the orders passed in appeals
disposed of by Single Judge of the High Court in appeals preferred thereto
under Order XLIII Rule 1 read with Section 104 of the Code against the F
order passed by the subordinate court or district courts.
[215-H; 216-A, B, C; 217-BJ
Shah Babula/ Khimji v. Jayaben D. Kania and Anr., [1981) 4 SCC 8,
relied on.
Mohd Naimullah Khan v. Ihsan Ullah, (1892) ILR 14 All 226; Piarilal
v. Madan/al, (1917) ILR 39 All 191 : AIR (1917) All 325; L. Ram Sarup v.
Mt. Kaniz Ummehani, AIR (1937) Allahabad 165 and Vaman Ravji Kulkarni
v. Nagesh Vishnu Joshi and Ors., AIR (1940) Born. 216, referred to.
G
4. The question as to whether a Letters Patent Appeal would be H
198
SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.
A maintainable or not would also depend upon the scheme of the statute.
Such a scheme barring a Letters Patent Appeal is found to be existing in
Representation of the People Act. Under Article 329(b) of the Constitution,
a Single Judge of a High Court exercises a jurisdiction to hear an election
dispute. While doing so he exercises a special jurisdiction. Having regard
to the history thereof as also the limited nature of appeal from judgment
B disposing of an election petition expressly provided under Section 116-A
of the Representation of the People Act, it will be evident that a right of
appeal under the Letters Patent had been held to have been taken away
by necessary implication. [217-C-D, El
C
NP. Ponnuswami v. Returning Officer, Namakkal Constituency and Ors.,
(19521 SCR 218; Upadhyaya Hargovind Devshanker v. Dhirendrasinh
Virbhadrasinhji Solanki and Ors., [1988) 2 SCC 1 and Dipak Chandra
Ruhidas v. Chandan Kumar Sarkar, (2003) 7 SCC 66, referred to.
5.1. It is true that Section lOOA of the Code contains a non-obstante
D clause as regard the overriding effect of the said provision over the Letters
Patent of the High Court but the same, was done by way of ex abundanti
cautela. Furthermor.e, the Code of Civil Procedure (Amendment) Act, 1976
and the Code of Civil Procedure (Amendment) Act; 2002 being subsequent
statutes, the same may not have any application in relation to the
interpretation of sub-section (2) of Section 104 of the Code. It is not
E necessary, that the provision restricting a further right of appeal must
specifically mention the provisions of the Letters Patent of the High Courts
or any other statute inasmuch as the same has to be construed having
regard to the scheme thereof. What is recognized under Sub-sectior. (1)
of Section 104 of the Code following the decisions of the Calcutta, Madras
F and Bombay High Courts are those appeals which are provided for under
special statute and not an appeal from the appellate ordertherein.
[218-B, C, DJ
Too/see Money Dassee and Ors. v. Sudevi Dassee & Ors., (1899) 26
Cal. 361; Sabhapathi Chetti and Ors. v. Naruyanasami Chetti, (1902) 25 Mad.
G 555 and the Secretary of State for India in Council v. Jehangir Maneckji
Cursetji, (1902) 4 Born. L.R. 342, referred to.
5.2. If there is a conflict between an appeal under the Code and the
Letters Patent both the provisions have to be read harmoniously so as to
save an appeal which is not otherwi.se provided for. It may be noticed that
H when an ~ppeal is maintainable under the Letters Patent by reason of its
P.S. SATHAPPAN v. ANDHRA BANK LTD.
199
being a 'judgment' within the meaning of Letters Patent such an appeal A
would be maintainable despite the fact that no provision therefor has been
made in Section 104 thereof. In a case, however, where an appeal may be
maintainable both under Sub-section (1) of Section 104 as also the Letters
Patent a difficulty may arise to the extent that where the orders sought
to be appealed against is not a 'judgment' whether Order XLIII Rule l
would come into play. But if both the provisions are read together, it may B
be held that Order XLIII Rule 1 provides for an additional right. So
construed, a harmonious meaning can be attributed both to Section 104
of the Code and to Letters Patent but there is no doubt that if a right of
appeal is availe<! under Sub-section (1) of Section 104 of the Code, no
further appeal would be maintainable. Sub-section (2) of Section 39 of the C
Arbitration Act, 1940 does not contain any non-obstante clause. The said
provision does not refer to the Letters Patent of the High Court or any
other special Act. Despite the same, it was held in Mahindra Supply
Company that a Letters Patent Appeal would be barred by necessary
implication. The poin't at issue is no longer res integra in view of several
decisions of this Court. (219-G, H; 220-A, B, C, D)
D
Union of India v. Mohindra Supply Company, (1962) 3 SCR 497;
Sharda Devi v. State of Bihar, (2002) 3 SCC 705; Subal Paul v. Malina Paul,
[2003) 10 SCC 361; National Sewing Thread Co. Ltd. v. James Chadwick
and Bros Ltd., AIR (1953) SC 357; Maharashtra State Financial Corporation E .
v. Jaycee Drugs and Pharmaceuticals (P) Ltd. and Ors., (1991) 2 SCC 637;
Union of India v. Aradhana Trading Co. and Ors., (2002) 4 SCC 441 and ,
Liverpool & London S.P. & I Association Ltd. v. M V. Sea Success I ani..' Anr,
(2004) 9 sec 512, referred to.
6.1. If the provisions of Section 104 read with Order XLIII Rule 1
of the Code are applicable as regard appealability of the ordtrs in the F
matters specified therein, the said provisions must be invoked in their
entirety and not in isolation. An appeal is the right of entering a superior
court and invoking its aid and interposition to redress an error of the
Court below. An appeal when expressly provided can be filed as a rr.atter
of right and in no other situation. No right of appeal can be inferred by G
implication or otherwise. [223-C, DJ
Mlt. Sabitri Thakurian v. Savi and Anr., AIR (1921) PC 80; Shah
Babula! Khimji v. Jayaben D. Kania and Anr., [1981) 4 SCC 8; L Ram Sarup
v. Mt. Kaniz Ummehani, AIR (1937) Allahabad 165; Mathura Sundari Dassi
v. Haran Chandra Shaha, AIR (1916) Cal 361 and Lea Badin v. Upendra H
'•.·
200
SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.
A Mohan Roy Choudhury, AIR (1935) Cal. 35, referred to.
Vaman Ravji Kulkarni v. Nagesh Vishnu Joshi and Ors., AIR (1940)
Born. 216, overruled.
6.2. It is worth noticing that even in Guiab Bai no law has been laid
B down to the effect that a right of further appeal can be barred only
expressly and not by necessary implication. If a finality clause bars an
appeal, the same would be by way of necessary implication only. The
Constitution Bench did not decide the questions raised herein nor was
there any occasion for it to do so. No reliance, therefore, can be placed
C on certain observations made therein as regard the legal position, as it
then stood. It is well known that a judgment is an authority for what it
decides and not what may even logically be deduced therefrom.
D
[225-C; 226-F]
Guiab Bai and Anr v. Puniya,. (1966] 2 SCR 102, referred to.
6.3. South Asia Jn'austries (P) Ltd. is also an authority for the
proposition that a Letters Patent appeal can be held to be barred by
necessary implication having regard to the scheme of.the statute. [227-F)
...
South Asia Industries Pvt. Ltd v. SB. Sarup Singh and Ors., (1965) 2
E SCR 756, referred to.
6.4. It is true that some stray observations had been made in
Mahindra Supply & Co. to the effect that under the CPC, an appeal did lie
under the Letters Patent from an order passed by a Single Judge of a
Chartered High Court in an arbitration proceedings even ifthe order was
F
passed in exercise of appellate jurisdiction, but that was so, because the
power of the Court to hear appeals under a special law for the time being
in operation was expressly preserved. Furth!!rmore, as has been noticed
in Shah Babula/ Khimji that in terms of Clause 15 of the Letters Patent a
second appeal could have been maintained only subject to leave granted
by the appellate court therefor. No such leave has been taken in this.case.
G The said observation would not mean in absence of any detailed discussion
as regard interpretation of the provisions of the Code, that despite bar
created thereunder, an appeal would still be ,maintainable under Clause
15 of the Letters Patent. Such observations were not only wholly
unnecessary but the same did not arise for consideration directly.
H Furthermore, the questions raised herein were not raised at the Bar nor
-
P.S. SATHAPPAN v. ANDHRA BANK LTD.
201
the Bench had any occasion to consider the same in details. The said A
decision is also an authority for the proposition that a Letters Patent
Appeal can be barred by necessary implication. [230-B, C, DI
Union of India v. Mohindra Supply Company, [1962) 3 SCR 497 and
Shah Babula! Khimji v. Jayaben D. Kania and Anr., [19811 4 SCC 8, referred
to.
13
6.5. The issue which is involved in these appeals was also involved
in Resham Singh. The question which arose for consideration as to whether
ifa right of appeal is provided under Sub-section (1) of section 104 of the ,
Code whether a further appeal is barred under Sub-section (2) thereof ..
Therein, the said question was answered in the affirmative. (230-E)
C
Resham Singh Pyara Singh v. Abdul Sattar, [199611SCC49, referred
to.
6.6. In New Kenilworth Hotel (P) Ltd., also the question which arose
for consideration was as to whether sub-section (2) of Section 104 of the D
Code bars an appeal against an order passed by the appellate court in
terms of sub-section (1) of Section I 04 thereof following Res ham Singh. The
answer thereto was rendered in the affirmative. Therein it was noticed
that Clause 10 of the Letters Patent of the Orissa High Court was in pari
materia with Clause 15 of the Letters Patent of the Madras High Court.
(231-BJ E
New Kenilworth Hotel (P) Ltd. v. Orissa State Finance Corporatinn and
Ors., [1997) 3 SCC 462, referred to.
6.7. Law in this country, which is prevailing since 1986, has been
consistent and there is no reason to depart from the said view. [235-H)
F
L. Ram Sarup v. Mt. Kaniz Ummehani, AIR (1937) Allahabad 165;
Guiab Bai and Anr. v. Puniya, [1996) 2 SCR; South Asia Industries Pvt. Ltd.
v. S.B. Sarup Singh and Ors., (1965) 2 SCR 756; Chandra Kanta Sinha v.
Oriental Insurance Co. Ltd. and Ors., (20011 6 SCC 158; New Kenilworth
Hotel (P) Ltd. v. Orissa State Finance Corporation and Ors., [1997) 3 SCC G'
462; Central Mine Planning and Design Institute Ltd. v. Union of India qnd
Anr., [2001) 2 SCC 588; Madhusudan Vegetable Products Co. Ltd.,
Ahmedabadv. Rupa Chemicals Vapi and Ors., AIR (1986) Guj. 156 and Firm
Chhunilal Laxman Prasadv. Mis Agarwal and Co. and Ors., AIR (1987) M.P.
172, referred to.
H
202
SUPREME COURT REPORTS [2004) SUPP. 5 S.C.R.
A
7. A decision is an authority for the questions of law determined by
it. While applying the ratio, the court may not pick out a word or a
sentence from the judgment divorced from the context in which the said
question arose for consideration. A judgment, as is well-kllown, must be
read in its entirety and the observations made therein should receive
B consideration in the light of the questions raised before it. It is further
well settled that a decision is not an authority for the proposition which
did not fall for its consideration. (236-B, C; 236-F]
Haryana Financial Corporation and Anr. v. Mis. Jagdamba Oil Mills
and Anr., JT (2002) 1 SC 482; Union of India and Ors. v. Dhanwanti Devi •
C and Ors., [1996) 6 SCC 44; Dr. Na/ini Mahajan v. Director of Income Tax
(Investigation) and Ors., (2002) 257 ITR 123; State of UP and Anr. v.
Synthetics and Chemicals Ltd. and Anr., [1991) 4 SCC 139; A-One Granites
v. State of UP. and Ors., (2001) 1 AIR SCW 848; Bhavnagar University v.
Pa/itana Sugar Mill (P) Ltd. and Ors., (2003) 2 SCC 111 and State of Gujarat
and Ors. v. Akhil Gujarat Pravasi V.S. Mahamandal and Ors., AIR (20N)
D SC 3894, referred to.
CIVIL APPELLATE JURISDICTION
Civil Appeal No. 689 of
1998.
From the Judgment and Order dated 22.8.97 of the Madras High Court
E in LP.A. 100 of 1991.
WITH
C.A. Nos. 5385/98 and 5389/5390 of 2002.
F
R. Sundravardhan, Ram Lal Roy, R.N .. Keshwani, Ms. Asha G. Nair
and V. Ramasubramanian with him for the Appellants.
V. Sridhar Reddy and Abhijit Sengupta for the appellant & Contempt
Petitions.
· G
C.S. Vaidyanathan, and V.R. Reddy, V. Balachandran, B. Sridhar, K.
H
Ram Kumar, P.P. Singh, Sunil Murarka Sakya Singha Chaudhary, A.V.
Rangam, A. Ranganadhan, Buddy, A. Ranganadhan, Rajiv S. Roy, N.K. Sahoo
and Pranab Kumar Mullick with them of the Respondents.
The Judgment of the Court was delivered by
··-
P.S. SATHAPPAN v. ANDHRA BANK LTD. [S.B. SINHA, J.]
203
S.B. SINHA, J. Interpretation of Section 104 of the Code of Civil A
Procedure (for short, 'the Code') vis-a-vis Clause 15 of the Letters Patent of
the High Court of Madras is in question in these appeals.
BACKGROUND FACTS:
Although these appeals involve common questions of law, the factual B
matrix of the matter would be noticed from Civil Appeal No.689 of 1998.
The First Respondent herein filed a suit against the Appellant herein in
the Court of II Addi. Subordinate Judge, Coimbatore which was marked as
O.S. No.403 of 1974. The said suit was decreed on or about 15.4.1976. An C
execution petition was filed by the First Respondent-decree holder for
executing the said decre<\ In the said execution proceeding for realization of
the decretal amount the property belonging to the Appellant herein was put
to auction. The validity of the said auction came to be questioned by the
Appellant by filing an Execution Application on or about 8.10.1979 praying
therein for setting aside the court auction sale held on 26.9.1979 in respect D
of Ginning factory situate at Tirurppur named and styled Sree Krishna Ginning
Factory. The said application was marked as Executive Application No. 419
of 1979. The said application was dismissed by the Execution Court on
10.10.1985 against which an appeal was preferred by the Appellant which
was also dismissed by a learned Single Judge of the Madras High Court by E
a judgment and order dated· 8.10.1990. A Letters Patent Appeal thereagainst
purported to be in tenns of Clause 15 of the Letters Patent of the Madras
High Court was filed by the Appellant which was dismissed by a Full Bench
of the Madras High Court by a judgment and order dated 22.8.1998 holding
that in terms of sub-section (2) of Section 104 of the Code, an appeal against
an order passed by the Appellate Court under Order XVIII Rule l read with F
Section 104 of the Code, was not maintainable. A certificate of fitness,
however, in tenns of Article 133 of the Constitution of India was prayed for
by the Appellant and granted by the said Full Bench. When the matter was
placed before a Division Bench of this Court, it noticed a conflict of opinion
between a decision of a 3-Judge Bench of this Court in New Kenilworth G
Hotel (P) Ltd v. Orissa State Finance Corporation and Ors., [1997] 3 SCC
462, and a two Judge-Bench in Resham Singh Pyara Singh v. Ahdul Sattar,
[1996] 1 SCC 49, on the one hand, and a Constitution Bench decision in
Guiab Bai and Anr. v. Puniya, [1966] 2 SCR 102, on the other; and referred
the matter to a Constitution Bench observing :
H
A
B
c
D
E
204
SUPREME COURT REPORTS [2004] SUPP. 5 S.C.R.
"We are aware of the fact that Clause 15 of the Letters Patent
applicable to Madras High Court was similar to Clause IO applicable
to Orissa High Court which was construed in the case of New
Kenilworth (supra).