# THE CHURCH OF SOUTH INDIA TRUST ASSOCIATION v. THE TELUGU CHURCH COUNCIL

- **Citation:** [1996] 1 S.C.R. 322
- **Court:** Supreme Court of India
- **Decided:** 1996-01-10
- **Case number:** Civil Appeal No. 1547-48 of 1996
- **Bench:** S.C. Agrawal, B.P. Jeevan Reddy
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/the-church-of-south-india-trust-association-v-the-telugu-church-council-13734
- **Pages:** 22

## Headnote

Code of Civil Procedure, I908--Sections II, I3, 2I, 24--Res
Judicata--Principle of-Competence of court-Whether extends to territorial
jurisdiction-Held : The competence of the court as contemplated by section
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I I of the Code does not extend to territorial jurisdiction.
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The appellant (CSITA) was an association incorporated under the
Indian Companies Act, 1913 for the purpose of holding and administering
in trust, the properties, funds etc. of the Church of South India including
properties situated in the districts of Cuddapah and Anantpur in the
State of Andhra Pradesh, The properties in Andhra Pradesh were
transferred to CSITA by the London Missionary Society (LMS) in 1961.
LMS was an organisation set up by different protestant Christian
denominations of propagate their faith in India amongst other countries.
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The LMS united with churches founded by different missionary societies
in India to form a South India Uu;ted Church which comprised of various
church councils.
The respondent (TCC) was one such council primarily concerned
with churches in the Telugu speaking areas of the former Madras
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Presidency. TCC was registered as a society in 1949.
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As a consequence of an ongoing dispute TCC filed a suit (0.S. No.
2 of 1961/0.S. No. 12 of 1964) against LMS and the Chartered Bank,
Madras in Cuddapah inter alia seeking for : a) rendition of accounts
relating to the funds deposited in various joint accounts of LMS and TCC
in the defendant Bank; b) recovery of such sums of money as may be found
due; and c) delivery of securities and deposits belonging to TCC.
It was contended by LMS therein that TCC had ceased to exist in
1947 by virtue of a resolution passed by it in General meeting, effecting
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a merger with a proposed larger union of churches. This contention was
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CHURCH OF SOlITH INDIA TRUST ASSN. v. TELUGU CHURCH COUNCIL 323
resisted by TCC on the ground that it still existed as the resolution was
not passed by the requisite majority.
The trial Court decreed the suit in favour of TCC and held that it
continued to exist and function after 1947 without losing its representative
character. This decree was affirmed in appeal by a Division Bench of the
Andhra Pradesh High Court on November 9, 1970.
A second declaratory suit O.S. No. 107 of 1991 was filed by CSITA
against the Rayalseema Diocesan Council and the Chartered Bank on the
original side of the Madras High Court for a declaration that it was
entitled to moneys and securities held in the joint accounts of TCC and
LMS as on 1947. The suit was dismissed on the ground that the
judgement of the High Court passed in 1970 operated as res judicata. The
Court also recorded that : a) TCC had voluntarily ceased to exist and
had merged with the Church of South India; b) TCC, the defendant
association which was registered in 1949 was a new entity and did not
represent the old council .
In appeal the High Court set aside the finding that the suit was
barred by res judicata and decreed the suit in favour of the plaintiffs on
the ground that the CSITA and the Rayalseema Dioscesan Council were
not parties in the first suit and that LMS could not represent the Church
of South India in the proceedings. The finding regarding the merger of
TCC was confirmed.
Earlier TCC had filed two declaratory suits (0.S. No. 41of1968 and
26 of 1970) in Cuddapah and Anantpur respectively inter alia for : a)a
declaration that it was entitled to hold the suit properties as a trustee for
the benefit of the Congregationalist churches in the districts; b) a
direction to the defendants to put them in possession of the same. It was
contended by TCC that the churches founded by LMS were Congregational churches founded in the Telugu speaking areas of the Madras
Presidency and that LMS and TCC had set up a joint committee holding
in trust for managing these properties and institutions and the transfer
of properties in favour of CSITA in 1961 amounted to a disclaimer and
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a breach

## Text

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THE CHURCH OF SOUTH INDIA TRUST ASSOCIATION
v.
THE TELUGU CHURCH COUNCIL
JANUARY 10, 1996
[S.C. AGRAWAL AND B.P. JEEVAN REDDY, JJ.]
Code of Civil Procedure, I908--Sections II, I3, 2I, 24--Res
Judicata--Principle of-Competence of court-Whether extends to territorial
jurisdiction-Held : The competence of the court as contemplated by section
'
C
I I of the Code does not extend to territorial jurisdiction.
D
The appellant (CSITA) was an association incorporated under the
Indian Companies Act, 1913 for the purpose of holding and administering
in trust, the properties, funds etc. of the Church of South India including
properties situated in the districts of Cuddapah and Anantpur in the
State of Andhra Pradesh, The properties in Andhra Pradesh were
transferred to CSITA by the London Missionary Society (LMS) in 1961.
LMS was an organisation set up by different protestant Christian
denominations of propagate their faith in India amongst other countries.
E
The LMS united with churches founded by different missionary societies
in India to form a South India Uu;ted Church which comprised of various
church councils.
The respondent (TCC) was one such council primarily concerned
with churches in the Telugu speaking areas of the former Madras
"
F
Presidency. TCC was registered as a society in 1949.
G
As a consequence of an ongoing dispute TCC filed a suit (0.S. No.
2 of 1961/0.S. No. 12 of 1964) against LMS and the Chartered Bank,
Madras in Cuddapah inter alia seeking for : a) rendition of accounts
relating to the funds deposited in various joint accounts of LMS and TCC
in the defendant Bank; b) recovery of such sums of money as may be found
due; and c) delivery of securities and deposits belonging to TCC.
It was contended by LMS therein that TCC had ceased to exist in
1947 by virtue of a resolution passed by it in General meeting, effecting
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a merger with a proposed larger union of churches. This contention was
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...
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CHURCH OF SOlITH INDIA TRUST ASSN. v. TELUGU CHURCH COUNCIL 323
resisted by TCC on the ground that it still existed as the resolution was
not passed by the requisite majority.
The trial Court decreed the suit in favour of TCC and held that it
continued to exist and function after 1947 without losing its representative
character. This decree was affirmed in appeal by a Division Bench of the
Andhra Pradesh High Court on November 9, 1970.
A second declaratory suit O.S. No. 107 of 1991 was filed by CSITA
against the Rayalseema Diocesan Council and the Chartered Bank on the
original side of the Madras High Court for a declaration that it was
entitled to moneys and securities held in the joint accounts of TCC and
LMS as on 1947. The suit was dismissed on the ground that the
judgement of the High Court passed in 1970 operated as res judicata. The
Court also recorded that : a) TCC had voluntarily ceased to exist and
had merged with the Church of South India; b) TCC, the defendant
association which was registered in 1949 was a new entity and did not
represent the old council .
In appeal the High Court set aside the finding that the suit was
barred by res judicata and decreed the suit in favour of the plaintiffs on
the ground that the CSITA and the Rayalseema Dioscesan Council were
not parties in the first suit and that LMS could not represent the Church
of South India in the proceedings. The finding regarding the merger of
TCC was confirmed.
Earlier TCC had filed two declaratory suits (0.S. No. 41of1968 and
26 of 1970) in Cuddapah and Anantpur respectively inter alia for : a)a
declaration that it was entitled to hold the suit properties as a trustee for
the benefit of the Congregationalist churches in the districts; b) a
direction to the defendants to put them in possession of the same. It was
contended by TCC that the churches founded by LMS were Congregational churches founded in the Telugu speaking areas of the Madras
Presidency and that LMS and TCC had set up a joint committee holding
in trust for managing these properties and institutions and the transfer
of properties in favour of CSITA in 1961 amounted to a disclaimer and
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a breach of trust, as TCC had ultimately declined to merge with the
Church of South India. In rebuttal CSITA contended that TCC had
merged with the Church of South India in 1947 and thereafter it had
ceased to exist, that the plaintiff council was subsequently registered and
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SUPREME COURT REPORTS
[1996] 1 S.C.R.
had no connection with the original TCC and that LMS was a mere
beneficiary to the properties which did not vest in it. On behalf of the
World Council it was contended that the Judgement dated 1970 passed
by the Andhra Pradesh High Court did not bind it as it was uot a party
to the said suit. Both the suits were heard and decreed by a common
judgment in favour of TCC on the ground that LMS was a trustee and
not a beneficiary and that there was no merger of TCC with the Church
of South India, that the judgment of the High Court of 1970 operated as
res judicata and the subsequent judgment of the Madras High Court
dated 1976 relating to the question of merger of TCC did not operate
as res judicata.
The appeals filed by CSITA were dismissed by the Andhra Pradesh
High Court with the finding that: (a) CSITA was litigating as a successorin-interest of LMS; (b) the finding regarding the merger of TCC
recorded in the first suit and confirmed by the Division Bench of the
Andhra Pradesh High Court in t•no binds CSITA; (c) The decision of
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the Madras High Court passed im 1976 did not operate as res judicata
since no court in the State of Tamil Nadu can claim to exercise
jurisdiction in respect of properties sitnated in Andhra Pradesh.
In appeal to this court it w~1s contended on behalf of CSITA that
for the purpose of Section 11 C.P.IC. the competence of the Court to try
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the subsequent suit means competence in the matter of pecnniary
jurisdiction and the subject matter and the fact that the court which
decided the earlier suit does not have territorial jurisdiction in respect
of the second suit does not preclude the applicability of the principle of
res judicata under Section 11 CPC. On behalf of the respondents it was
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contended that the lack of territorial jurisdiction goes to the competence
of the Court for the purpose of applicability of the principle of res
judicata under Section 11 C.P.C.
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Allowing the appeals, this Court
HELD : 1.1. Section 11 of the Code of Civil Procedure (excluding
Explanation VIII) envisages that the judgement in a former suit would
operate as a res judicata if the court which decided the said suit was
competent to try the same by virtue of its pecuniary jurisdiction and the
subject-matter to try the subsequent suit and that it is not necessary that
the said court should have had the territorial jurisdiction to decide the
subsequent suit. [342-C-D]
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CHURCH OF SOUTH INDIA TRUST ASSN. v. TELUGU CHURCH COUNCIL 325
1.2. Explanation VIII to Section 11 C.P.C. removes the limitations
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that were placed on the principle of res judicata as applicable in India.
It would be rather incongruous to read a limitation in the applicability
of the said principle by construing the competence of the court to mean
that the court which has decided the earlier suit must have territorial
jurisdiction to try the subsequent suit. [342-B-C)
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Nabin Majhi v. Tela Majhi & Anr., AIR (1978) Cal. 440 and Misir
Raghobardial v. Rajah Sheo Baksh Singh, (1881-82) 9 I.A. 197, distinguished.
Sulochana Amma v. Narayanan Nair, [1994) 2 SCC 14, relied upon.
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1.3. The general principles of res judicata cannot have an application
in cases where the earlier judgment in a suit is relied upon in a subsequent
suit and that in such a situation the matter has to be examined on the basis
of the provisions contained in Section 11 C.P.C. only. [333-A)
L. Janakirama Iyer and Ors. v. P.M. Nilakanta Iyer and Ors., [1962)
Supp. 1 SCR 206, relied upon.
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1.4. There is near unanimity amongst the High Courts that the
words "competent to try" in section 24 of the Code refer to the pecuniary
·competence of the Court only and do not comprehend the territorial
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aspect of jurisdiction. In some cases the competence of the court for the
purpose of section 11 of the present code has been construed to refer to
pecuniary jurisdiction :ind not to territorial jurisdiction. [339-A; CJ
Krishan Lal v. Balakrishnan, AIR (1932) All 661; P.M. Unni v. M.J.
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Nadar, AIR (1973) Mad. 2 (F.B.); Mu/raj Doshi v. Gangadhar Singhania,
AIR (1982) Orissa 191; Prabha Singh v. S. Narsimha Rao, AIR (1957)
Andhra Pradesh 992; Mohd Ali v. Bhanwari Bai, AIR (1981) Raj. 176; In
re. Aiyisha Bohi Ammal, AIR (1925) Mad. 1167 and Rafl,hu v. Gajraj Sinfl,h,
AIR (1939) All. 202, referred to.
1.5. The acceptance of the contention urged on behalf of the
respondent that for the purpose of section 11 of the present Code, the
competence of the court which has decided the earlier suit also postulates
the said court having territorial jurisdiction to try the subsequent suit,
would mean that the judgment of a court in India which was competent
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SUPREME COURT REPORTS
[1996] l S.C.R.
to l.ry the earlier suit would not 011erate as res judicata in the subsequent
suit because the court which decided the earlier suit did not have
territorial jurisdiction to try the subsequent suit but the said judgement,
if rendered by a foreign court would be conclusive in an Indian Court
in a subsequent suit. This anomaly would be avoided if competence of the
Court which has decided the earlier suit for the purpose of section 11 of
the present Code is construed as not referring to the territorial jurisdiction of the court. [340-C-E]
Babanbhat v. Narharbhat & Ors., ILR (1889) 13 Bom. 224, Referred
to R. Viswanathan v. Rukn-ul-Mulk Syed Abdul ITT1zid, [1963] 3 SCR 22,
discussed.
2. That the rule of res judicat<1 is founded on considerations of public
policy and that it is in the interests of the public at large that a finality
should attach to the binding decisions pronounced by courts of competent
jurisdiction and that it is also in public interest that individuals should not ·
be vexed twice over with the same kind of litigation. [340-F-G]
Daryao & Ors. v. The State of U.P. & Ors., [1962] 1 SCR 574 and
Law Commissioner 54th Report, referred to.
3. The principles governing the rule of res judcata in England are
different from the law governing the said rule in India. [337-D]
Duchess of Kingston's case 2 Smith's L.C. 13th Edu. 644; Mussumat
Edun v. Mussumat Bechun 8 Suth. W.R. 175; Misir Raghobardial v. Rajah Shea
Baksh Singh, (1881-82) 9 I.A. 197; Sir Dinshaw F. Mulla Commentary on the
Code of 1882; Gokul Mandar v. Pudmanund Singh, (1902) ILR 29 Cal. 707
P.C. and Mst Guiab Bai v. Manphool Bai, [1962] 3 SCR 483, referred to.
CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1547-48 of
1996.
From the Judgment and Order dated 16.6.92 of the Andhra Pradesh
High Court in A.S. No. 623-624 of 1979.
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F.S. Nariman, Dr. Julian Francis and A. Mariarputham for the Appellant.
Ms. Jndu Malhotra for the petitioner in CC 21473/93 and Respondent
in CA Nos. 1547-48/96.
C. Sitaramiah, Narasimha P.S. and P.K. Pillai for the Respondent.
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The Judgment of the Court was delivered by
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CHURCH OF SOUTH INDIA TRUST ASSN. v. TELUGU CHURCH COUNCIL [AGRAWAL, J.]
327
S.C. AGRAWAL, J. Special Leave granted in S.L.P. (C) Nos. 14501A
.J.
02 of 1992 .
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These appeals arise out of two suits (O.S. No. 41 of 1968 and O.S.
No. 26 of 1970) filed by the Tclegu Church Council (for short 'TCC'),
respondent herein, in respect of properties of congregationalist cliurches in
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the districts of Cuddapah and Anantpur in the State of Andhra Pradesh. O.S.
No. 41 of 1968 was in respect of properties and institutions situated in
Cuddapah district and O.S. No. 68 of 1970 was in respect of properties
situated in Anantpur district. Both the suits were decreed in favour of TCC
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by the Subordinate Judge, Cuddapah by judgment and decree dated May 7,
1979. The appeals (A.S. No. 623-24 of 1979) filed by the appellants against c
the said judgment and decree of the Subordinate Judge were dismissed by
the Andhra Pradesh High Court by judgment dated June 16, 1992.
The London Missionary Society (for short 'LMS') was founded by
people belonging to different protestant Christian Denominations in England
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in 1795 for spreading the Christian faith in various countries including India.
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LMS missionaries, in course of their activities, started churches, hospitals,
educational institutions in various parts of India. In 1899 the London Missionary Society Corporation (for short 'LMSC') was registered as the Trustee
under the Companies Act of the United Kingdom for administering the
properties of LMS. In 1908 the churches founded by different Missionary
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Societies, including LMS in South India, unitedly formed a single body known
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as South India United Church (for short 'SIUC'). SIUC became the apex body
of various Church Councils. TCC was one of the Church Councils under SIUC
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in respect of churches in the Telugu speaking area of the former Madras
Presidency. The case of the appellant is that on June 29, 1945, pursuant to
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the efforts to bring about a larger union of Churches involving SIUC, the
Church of India, Burma and Ceylon and Methodist Church of South India, a
scheme of union was proposed and the said proposal of union was discussed
both at the level of various Church Councils as well as at the level of SIUC
General Assembly and that TCC, at a meeting, accepted the recommendation
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of its Executive Committee and resolved by two-third majority to accept the
scheme of Church Union. The case of the appellants is further that on
September 28, 1946, SIUC resolved to enter into Church Union on the basis
of the scheme prepared by the Joint Committee and on February 12/13, 1947
the Executive Body of TCC at its meeting held at Gooty resolved to form
a Continuation Committee to carry on TCC' s work until the formation of
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Diocesan Council as per the scheme of Union and to wind up the affairs of
TCC and that on June 26 to 28, 194 7 resolutions were passed in TCC General
Body meeting at Cuddapah to join the Union and to dissolve TCC from that
day and that TCC ceased to exist !hereafter and Continuation Committee
constituted by resolution dated February 12/13, 1947 took over its activities
until merger. This fact of merger of TCC into the Church Union, as claimed
by the appellants, is, however, disputed by the respondent who claims that the
resolution was not passed by two-third majority and that TCC has continued
to exist. On September 27, 1947, the Church of South India was inaugurated
by special service held at St. George Cathedral, Madras and on September 26,
1947 Church of South India Trust Association (for short 'CSITA'), appellant
herein, was incorporated under the Indian Companies Act, 1913 as trustee for
the purpose of holding and administering the properties, funds, etc. of the
Church of South India. On June 29, 1949, TCC was registered as a Society
under the Societies Registration Act. On February 10, 1961, LMS transferred
the properties in the Cuddapah and Anantpur districts in favour of CSITA.
The case of the appellant is that LMS ceased to exist on June 1, 1966 as
having merged in the Congregation Council for World Mission.
Subsequent to June 19, 1961, there arose disputes between the respondent and LMS as well as the appellant in relation to properties of the churches
in the districts of Cuddapah and Anantpur in Andhra Pradesh. A suit (0.S. No.
2of1961), hereinafter referred to as 'the first suit', was filed by the respondent
against LMS and the Chartered Bank, Madras, in the Court of Subordinate
Judge, Cuddapah which suit, on transfer to the Court of Second Additional
District Judge, Cuddapah, was numbered as 0.S. No. 12 of 1964, wherein a
decree was sought that the defendants or either of them be directed to render
an account to the plaintiff (TCC) of the funds deposited in various accounts
with the defendant Bank in the joint name of TCC and LMS and standing to ·
the credit as up to date and for a decree in favour ofTCC against the defendants
for recovery of such sums of money as may be found due on taking account
and also for delivery of such securities and deposits that should be belonging
to TCC and held by the defendant Bank. The said suit was contested by LMS
on the ground that by resolution dated June 19, 1947 TCC had dissolved itself
and had ceased to exist and, therefore, the plaintiff (respondent herein) had no ·
right to bring an action. The said suit was decreed by the Second Additional
District Judge, Cuddapah by his judgment dated December 3, 1996. The
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Second Additional District Judge held that TCC, as it existed prior to 1947, did
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CHURCH OF SOUTH INDIA TRUST ASSN. v. TELUGU CHURCH COUNCIL [AGRAWAL, J.]
329
not dissolve itself and did not cease to exist and continued to function even
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thereafter as before and up to date without losing its representative character.
The said judgment of the Second Additional District Judge, Cuddapah was
affirmed in appeal (A.S. No. 31 of 1967) tiy the Division Bench of the Andhra
Pradesh High Court by judgment dated November 9, 1970.
Another suit (O.S. No. 107 of 1971), hereinafter referred to as 'the
second suit', was filed by the appellant and the Rayalaseema Diocescan
Council against the REV. K. John, representing TCC, respondent herein, and
the Chartered Bank, Madras, on the original side of the Madras High Court
for a declaration that the plaintiffs are entitled to moneys and securities held
by the defendant Bank in its LMS-TCC joint account as in 1947 and for a
direction to the defendant Bank to pay to the plaintiffs the securities held in
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the said joint account or to release Rs. 48,500 and for a direction to the 1st
defendant to pay to the plaintiffs the sum of Rs. 13382.130. The said suit was
decided by a learned Judge of the High Court (Vardarajan J., as the learned
Judge then was) by judgment dated March 24, 1975. The learned Judge held
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that TCC had voluntarily ceased to exist and had merged with Church of
South India inaugurated on September 29, 1947 and that the first defendant
association (respondent herein) which was registered only on June 29, 1949
does not represent the old TCC which was merged in the Church of South
India. The learned Judge was, however, of the view that the judgment of the
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Andhra Pradesh High Court dated November 9, 1970 in A.S. 31 of 1967
operates as res judicata and he, therefore, dismissed the suit on ground that
it was barred by res judicata. On appeal the Division Bench of the Madras
High Court in its judgment dated September 2, 1976, in O.S.A. 20 of 1976,
while confirming the view of the learned trial Judge on the question of merger
of TCC in Church of South India, set aside the finding that the suit was barred
by res judicata and decreed the said suit in favour.of the plaintiffs. The
learned Judges held that the appellant and the Rayalaseema Diocesan
Council, plaintiffs in the suit, were not the parties in O.S. No. 12/64 and
LMS which was the first defendant in O.S. No. 12/64 could not have
represented the Church of South India.
In the meanwhile, the respondent had filed the two suits giv~ rise to
these appeals, 0.S. No. 41 of 1968 was filed by the respondent in the Court
of the Subordinate Judge, Cuddapah against the appellant and others for a
declaration that the plaintiff (respondent herein) is entitled to hold the suit
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SUPREME COURT REPORTS
[1996] J S.C.R.
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properties and institutions as a trustee for the benefit of the Congregationlist
churches in Cuddapah district and for a direction to the defendants to put the
>..
plaintiff in possession of the same. The other suit (0.S. No. 135 of 1968) was
filed by the respondent in the Court of the Subordinate Judge, Anantpur
against the appellant and LMS for a declaration that the plaintiff (respondent
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herein) is entitled to hold the suit properties and institutions as a trustee for
the benefit of the Congregationalist churches in Anantpur District and for a
direction to the defendants to put the plaintiff in possession of the same. O.S.
No. 135 of 1968 was subsequently transferred to the Court of Subordinate
Judge, Cuddapah and it was renumbered as O.S. 26 of 1970 and it was tried
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alongwith 0.S. 41 of 1968.
The case of the respondent in these two suits (0.S. 41 of 1968 and O.S.
26 of J 970) was that the churches founded by LMS are congregationalist
churches and TCC is the council representing the Congregationalist church
founded in Telugu speaking area of Madras Presidency and that the LMS and
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TCC jointly set up the Telugu Combined Committee for managing properties
and institutions with equal number of representatives and that the Church of
South India was formed in 1947 with a view to uniting several denominational
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churches and even though TCC originally approved the scheme to join the
Church of South India it ultimately declined and that the transfer of properties
by LMS in favour of the appellant by deed dated February JO, 1961 would
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amount to disclaimer of trust and breach of trust since these properties were
held in trust for the Congregationalist churches by the LMS.
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These suits were contested by the appellant on the ground that TCC was
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a constituent body of SIUC and that as a result of the decision taken by SIUC
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at the General Assembly level and the TCC at the Council level, the TCC had
merged in the Church of South India on June 19, 1947 and thereafter it had
ceased to exist and the respondent Council, as a subsequently registered body,
had no connection with original TCC. It was also contended by the appellant
that all the properties were vested in LMSC as Trustee and that LMS was only
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a beneficiary and that the respondent is not entitled to represent the
Congregationalist churches of Anantpur and Cuddapah districts and the suit
barred by limitation.
On behalf of the Council for World Mission, the successor of LMS,
it was submitted that the judgment of the Andhra Pradesh High Court dated
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November 9, 1970 in A.S. No. 31 of 1967 was not binding on the appellant
CHURCH OF SOUTH INDIA 1RUST ASSN. v. TELUGU CHURCH COUNCIL [AGRAWAL, J.]
331
as it was not a party to the said suit.
Both the suits filed by the respondent were decreed by the Subordinate
Judge, Cuddapah on May 7, 1979 on the ground that LMS was a Trustee
and not a beneficiary and there was no merger of TCC with the church of
South India. The Subordinate Judge further held that the judgment of the
Division Bench of the Andhra Pradesh High Court dated November 9, 1970
iw A.S. No. 31 of 1967 operates as res judicata and that the subsequent
judgment of the Division Bench of the Madras High Court in O.S.A. 20
of 1976 dated September 2, 1976 on the issue of merger of TCC in the
Church of South India would not operate as res judicata. The Subordinate
Judge also rejected the contention regarding the suit being barred by
limitation.
The appeals (A.S. Nos. 623 and 624 of 1979) filed by the appellant
against the said judgment and decree of the Subordinate Judge, Cuddapah,
have been dismissed by the Andhra Pradesh High Court by the impugned
judgment dated June 16, 1992. The High Court has held that the appellant is
litigating as successor-in-interest of LMS and that the finding on the issue as
regards merger recorded by the Additional District Judge, Cuddapah, in his
judgment dated December 3, 1966 in O.S. No. 12 of 1964 which was
confirmed by the Division bench of the Andhra Pradesh High Court in the
judgment dated November 9, 1970 in A.S. No. 31 of 1967 binds the
appellant. As regards the decision of the Division Bench of the Madras High
Court dated September 2, 1976 in O.S.A. No. 20 of 1976 filed by the
appellant it was held that the said decision would not operate as res judicata
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since no court in the State of Tamil Nadu can claim to exercise jurisdiction
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in respect of properties situate within the State of Andhra Pradesh. The High
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Court has held that LMS and LMSC were one and the same body, viz., the
London Missionary Society and that churches founded by LMS were
Congregationalist churches and, therefore, the suits filed by the respondent
seeking declaration to hold the suit properties and institutions as trustee for
the benefit of Congregationalist churches was maintainable. Feeling aggrieved by the said judgment of the High Court the appellant has filed these
appeals.
The matter in issue between the parties is regarding the merger .ofTCC
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in the church of South India because the case of the appellant is that the
original TCC had merged in the Church of South India and has dissolved
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itself in June 1947 and that respondent which was registered as a society in
1949 is not the same TCC while the respondent disputes the merger and
dissolution of the original rec and claims that the rec continued to exist.
This dispute has been adjudicated earlier in two suits referred to above, viz.,
0.S. No. 12 of 1964 decided in favour of the respondent and O.S. No. 107
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of 1971 decided in favour of the appellant. Therefore, the questions which
fall for consideration in these appeals are:
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(i) Whether the judgment of the Madras High Court dated September 2, 1976 in Appeal (0.S.A. No. 20 of 1976) arising out of O.S.
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No. 107 of 1971 operates as res judicata so as to preclude the
respondent from asserting that the T.C.C. had not merged in the
Church of South India;
(ii) Whether the Judgment of the Andhra Pradesh High Court dated
November 9, 1970 in A.S. No. 31 of 1967 arising out of O.S. No.
12 of 1964 operates as res judicata so as to preclude the appellant
from asserting that TCC had merged in the Church of South India;
and
(iii) Whether there was a merger ofTCC in the Church of South India
in 194 7 and the rec has ceased to exist thereafter.
If Question No. (i) is decided in favour of the appellant, it would not be
necessary to go into Question Nos. (ii) and (iii) because in that event the
judgment of the Madras High Court would conclude the questions regarding
the merger of TCC as well as the judgment of Andhra Pradesh High Court
operating as res judicata. If Question :~o. (i) is decided against the appellant,
it will be necessary to consider Question No. (ii). If Question No. (ii) is
decided against the appellant and in favour of respondent, it would not be
necessary to go into Question No. (iii). Question No. (iii) would thus be
required to be considered only if Question No. (i) is decided against the
appellant and Question No. (ii) is decided in their favour. We will, therefore,
first deal with Question No. (i) and examine whether the judgement of the
Madras High Court in the second suit operates as res judicata.
It is not disputed that the appellant as well as the respondent were both
parties in the second suit O.S. No. 107 of 1971 in the Madras High Court. In
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the suits giving rise to the present appeals, the other defendant is the L.M.S.
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CHURCH OF SOUTH INDIA TRUST ASSN. v. TELUGU CHURCH COUNCIL {AGRAWAL, J.)
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while in O.S. No. 107 of 1971 plaintiff No. 2 was the Rayalaseema
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Diocession Council claiming through L.M.S. The High Court has helc) that
the judgment of the Madras High Court does not operate as res judicata for
the reason that the two suits from which the present appeals arise relate to
rights in immovable properties situate in the State of Andhra Pradesh and no
court in the State of Tamil Nadu can claim to exercise jurisdiction in respect
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of properties situated within the State of Andhra Pradesh and the Madras
High Court, not being a court competent to try such subsequent suit within
the meaning of Section 11 C.P.C., any finding recorded by it on any issue
would not operate as res judicata. It is, therefore, necessary to examine the
provisions of Section 11 C.P.C. in order to determine whether lack of
territorial jurisdiction in the court which had decided the earlier suit to try
the subsequent suit excludes the applicability of Section 11 C.P.C.
We may, at the outset, mention that even though Shri F.S. Nariman,
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the learned senior counsel appearing for the appellant, had at one stage
submitted that apart from the provisions of Section 11 C.P.C. general
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principle of res judicata can also be invoked but subsequently, in view of
the decision of this Court in L. Janakirama Iyer & Ors. v. P.M. Nilakanta
Iyer & Ors., [1962] Supp. I SCR 206, he conceded that the general
principles of res judicata cannot have an application in cases where the
earlier judgment in a suit is relied upon in a subsequent suit and that in such
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a situation the matter has to be examined on the basis of the provisions
contained in Section l l C.P.C. only. We will, therefore, confine ourselves
to the provisions of Section 11 C.P.C.
Section II. C.P.C. (excluding the Explanations) provides as under :
"Section II, Res Judicata. - No Court shall try any suit or issue in
which the matter directly and substantially in issue has been directly
and substantially in issue in a former suit between the same parties,
or between parties under whom they or any of them claim, litigating
under the same title, in a court competent to try such subsequent suit
or the suit in which such issue has been subsequently raised, and has
been heard and finally decided by such Court."
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Shri Nariman has urged that for the purpose of Section 11 C.P.C. the
compytence of the court to try the subsequent suit means competence in the
matter of pecuniary jurisidiction and the subject matter and the fact that the
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court which decided the earlier suit does not have territorial jurisdiction in
respect of the subsequent suit would not preclude the applicability of the
principle of res judicala under Section 11 C.P.C. In support of his aforesaid
submission Shri Nariman has placed strong reliance on the judgment of the
Privy Council in Misir Raghnbardial v. Rajah Sheo Baksh Singh, (1881-82)
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9 I.A. 197 and the decisions of this Court in Guiab Chand Chhotelal Parikh
v. State of Bombay (Now G~jarclt), [1965] 2 SCR 547 and Seth Hiralal Patni
v. Sri Kali Nath, [1962] 2 SCR 747.
Shri Sitaramiah, the learned senior counsel appearing for the respondent, has, on the other hand, urged that lack of territorial jurisdiction goes to
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the competence of the court for the purpose of applicability of the principle
of res judicata under Section 11 C.P.C. and that the High Court was right in
holding that the judgment of the Madras High Court does not operate as res
judicata since Madras High Court does not have territorial jurisdiction to
deal .with the suits giving rise to these appeals which relate to immovable
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properties lying in the State of Andhra Pradesh. Shri Sitaramiah has placed
reliance on the decisions of this Court in Kiran Singh & Ors. v. Chaman
Paswan & Ors., [1955] I SCR 117 and Official Trustee, West Bengal & Ors.
v. Sachindra Nath Chatterjee & Anr., [1969] 3 SCR 92.
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The principles governing the rule of res judicata in England were laid
down in 1776 in Duchess qf Kingston's case (2 Smith's L.C. 13th Edn. 644)
wherein it was said :
"From the variety of cases relative to judgments being given in
evidence in civil suits, these two deductions seem to follow as
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generally true : first that judgment of a court of concurrent jurisdiction, directly upon the point, is as a plea, a bar, or as evidence
conclusive, between the same parties, upon the same matter, directly
in question in another Court; secondly that the judgment of a court
of exclusive jurisdiction, directly upon the point, is, in like manner,
conclusive upon the same matter, between the same parties, coming
incidentally in question in another court, for a different purpose."
The law governing the said rule in India is, however, slightly different.
We would, therefore, briefly refer to the legislative history of the provisions
regarding res judicata in Indian law. The earliest enactment governing the
procedure in civil courts in India was the Code of Civil Procedure of 1859
CHURCH OF sourn INDIA TRUST ASSN. v. TELUGU CHURCH COUNCIL [AGRAWAL, J.J
335
(hereinafter referred to as 'the Code of 1859'). Section 2 of the said Code
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provided :
"The civil courts shall not take cognizance of any suit brought on
a cause of action which should have been heard and determined by
a Court of competent jurisidiction in a former suit between the same
parties or between the parties under whom they claim litigating under
the same title."
In Mussumat Edun v. Mussumat Bechun, 8 Suth. W.R. 175 Chief Justice
Sir Barnes Peacock has considered the said provisions. After referring the rule
laid down in Duchess of Kingston's case (supra) and the limited nature of the
jurisdiction conferred on various courts in India the learned Chief Justice has
observed :
"It appears to me to be of much more importance in this country than
it would be in England, that, in order to render a judgment between
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the same parties, upon the same point in one Court, conclusive in
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another Court, the two Courts must be Courts of concurrent jurisdiction. If it were not so, the whole procedure, as regards appeals, might
be entirely changed." (p. 178)
"It appears to me, therefore, that the rule which is laid down, viz., that
to render a judgment of one Court between the same parties upon the
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same point conclusive in another Court, the two Courts must be
Courts of concurrent jurisdiction. Concurrency of jurisdiction is a
necessary part of the rule which creates an estoppel in such a case."
"It is quite clear that, in order to make the decision of one Court
final and conclusive in another Court, it must be a decision of a
Court which would have had jurisdiction over the matter in the
subsequent suit in which the first decision is given in evidence as
conclusive." (p.179)
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The Code of 1859 was followed by Code of Civil Procedure, 1877
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(hereinafter referred to as 'the Code of 1877') which contained the following
provisions in Section 13 :
"No Court shall try any suit or issue in which the matter directly and
substantially in issue has been heard and final!y decided by a Court
of competent jurisdiction, in a former suit between the same parties,
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or between parties under whom they or any of them claim, litigating
under the same title."
The said provision came up for consideration before the Privy Council
in Misir Raghobardial v. Rajah Shea Baksh Singh (supra) wherein the
observations or" Sfr Barnes Peacock C.J. in Mussumat Edun v. Mussumat
Bechun (supra) have been referred with approval and it has been said :
"As to what is a Court of concurrent jurisdiction, it is material to
notice that there is in India a great number of Courts, that one main
feature in the Acts constituting them is that they are of various grades
with different pecuniary limits of jurisdiction, and that by the Code
of Procedure a suit must be instituted in the Court of the lowest grade
competent to try it. For instance, in Bengal, by the Bengal Civil
Courts Act, No. VL of 1871, the jurisdiction of a munsif extends only
to original suits in which the amount or value of the subject matter
in dispute does not exceed Rs. 1000. The qualifications of a munsif
and the authority of his judgment would not be same as those of a
district or of a subordinate judge, who have jurisdiction in civil suits
without any limit of amount. In their Lordships' opinion it would not
be proper that the decision of a musif upon (for instance) the validity
of a will or of an adoption in a suit for a small portion of the property
affected by it should be conclusive in a suit before a district judge or
in the High Court for property of a large amount, the title to which
might depend upon the will or the adoption." (p. 203)
Keeping in view the aforesaid position in India, the Privy Council has
held:
"By taking concurrent jurisdiction to mean concurrent as regards the
pecuniary limit as well as the subject-matter, this evil or inconvenience is avoided."
"By Court of competent jurisdiction Act X of 1977 means a Court
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which has jurisdiction over the matter in the subsequent suit in which
the decision is used as conclusive, or in other words, a Court of
concurrent jurisdiction." (pp. 204-05)
In the Code of Civil Procedure, 1882 (hereinafter referred to as 'the
Code of 1882') provision regarding res judicata are found in Section 13 but
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the words "Court of competent jurisdiction" which were contained in Section
CHURCH OF SOUTH INDIA TRUST ASSN. v. TELUGU CHURCH COUNCIL [AGRAWAL. J.]
337
13 of the Code of 1877 were replaced by the words "Court of jurisdiction
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competent to try such subsequent suit or the suit in which such issue has been
subsequently raised." This change in the language was in consonance with the
observations made by Sir Barnes Peacock C.J. in Mussumat Edu11 v. Mussumat
Bechun (supra) and the Privy Council in Misir Raghobardial v. Rajah Sheo
Baksh Singh, (supra). Explaining the expression "competent jurisdiction" Sir
Dinshah F. Mulla in his commentary on the Code of 1882 (published in 1900)
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has said :
"The test in this case is this : Is the second suit such as could have
been tried by the first Court? If yes, the matter can be res judicata.
This can only be the case if the jurisdiction of the first court is
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concurrent with that of the second Court both as regards its pecuniary
limit and the subject-matter of the suit."
In view of the aforesaid interpretation placed by the Privy Council on
the expression "competent jurisdiction", it has been said that the rule governing applicability of res judicata in India is more restricted than the rule law
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laid down in Duchess of Kingston's case (supra) in England. (See : Gokul
Mandar v. Pudmanund Singh, (1902) !LR 29 Cal. 707 P.C.; Mst. Guiab Bai
v. Manphool Bai, [1962] 3 SCR 483, at pp 493-94).
There is no alteration in law in this field in the Code of Civil Procedure,
1908 (hereinafter referred to as "the present Code") because Section II of the
present Code is substantially in the same terms as Section 13 of the Code· of
1882. As regards competence of the Court to try the subsequent suit under
Section 11 of the present Code, the Law Commission in its fifty-fourth Report
has observed that "the principle behind this condition is sound one, namely,
that the decision of a Court of limited jurisdiction ought not to be final and
binding on a court of unlimited jurisdiction." (p. 21)
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The question which, therefore, arises is whether the competence of the
Court, as contemplated in Section II of the present Code, extends to territorial
jurisdiction also and the Court which has decided the earlier suit should be a
Court having territorial jurisdiction to try the subsequent suit. Juridically
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speaking, the concept of jurisdiction of a court comprehends, (i) pecuniary
jurisdiction, (ii) territorial jurisdiction, and (iii) jurisdiction of the subjectmatter. (See : Hirday Nath Roy v. Ramachandra Barfna Sanna, !LR 58 Cal.
at p. 146; Official Trustee, \Vest Bengal v. Sachindra Nath Chatterjee, (supra)
at p. 100). When Section II of the present Code talks of the competence of
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the Court, does it mean the competence in all the three aspects of the
jurisdiction of the Court including the territorial jurisdiction of the Court?
In order to answer this question, it is necessary to take note of some other
provisions of the present Code which give an indication that the present Code
makes a distinction between ten-itorial jurisdiction and other aspects of the
jurisdiction of the Court.