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Supreme Court of India

BHAGWANDAS FATECHAND DASWANI AND ORS.versusH.P.A. INTERNATIONAL AND ORS.

Citation
2000 INSC 19
Decided
13 January 2000
Disposal
Appeal(s) allowed

Holding

A judgment delayed for an inordinate period may be set aside, and the impugned judgment was set aside and the matter remitted to the High Court for fresh consideration.

Summary

In this civil appeal, the appellant (subsequent purchasers) challenged a Madras High Court decree for specific performance that had been affirmed after a trial court judgment. The High Court hearing concluded on 22 March 1989, but the judgment was delivered only on 24 January 1994, a delay of nearly five years. The appellant argued that such an inordinate delay warranted setting aside the judgment, citing the Supreme Court’s decision in Kunwar Singh v. Sri Thakurji Maharaj. The Supreme Court held that a long delay in delivering a judgment creates unnecessary speculation and may justify setting aside the impugned order, even without examining the merits. Consequently, the Court set aside the High Court judgment and remitted the matter to the High Court for a fresh determination on merits, directing an expeditious disposal. No order as to costs was made.

Issues considered

  • Whether a delay of five years in the delivery of a judgment after the hearing is sufficient grounds to set aside the judgment.
  • Whether the High Court judgment can be set aside without addressing the substantive merits of the case.

Legislation cited

Subjects

specific performancedelay in judgment deliverysetting aside judgmentCivil Procedure Codeproperty transferappealremand

Judgment

A          BHAGWANDAS FATECHAND DASWANI AND ORS.
                                         v.
                     H.P.A. INTERNATIONAL AND ORS.

                               JANUARY 13, 2000

B              [V.N. KHARE AND N. SANTOSH HEGDE, JJ.J

          Code of Civil Procedure, 1908 : Order XX Rule I.

          Judgment-Long delay in delivery-Effect of
c
            Respondent No. 2 entered into agreement with respondent No. I for
    transfer of property-Thereafter reJpondent No. 2 tramfe"ed the rights in
    favour of appellant~-Suit for specific perfonnance filed by reJpondent No. 1
    decreed by trial court-Appeal before High Court-Judgment delivered by
    High Court after five years of conclusion of hearing of appeal-Appeal before
D   Supreme Court-Question whether long delay in delivery of judgment is
    sufficient to set aside the impugned judgment left open--However, long delay
    in judgment gives rise to unnecessary Jpecu/ation in the mind of partie~-Ap­
    pellants may have apprehension that arguments raised at bar have not been
     reflected while dictating judgment-Impugned judgment set aside-Matter
E    remitted to High Court for decision afresh on merits.

          Kunwar Singh & Ors. v. Sri 1hakurji Maharaj, [1995] Supp. 4 SCC
    125, referred to.

          CIVIL APPELLATE JURISDICTION : Civil Appeal No. 7386 of
F 1994.

         From the Judgment and Order dated 24.L94 of the Madras High
    Court in O.SA. No. 202 of 1988.

G        Soli J. Sorabjce, Attorney General, H.N. Salve, S. Ganesh, P.H.
    Pan:kh, Amit Dhingra, Jayesh Dolia, Harish, Y. Shankar, Sameer Parekh,
    V. Balaehandran, Raju Ramaehandran, Joseph Pookkat, RA. Perumal,
    N.C. Ramesh and N.S. Varadaehari for the appellants.

          K. Parasaran, V. Balachandran S. Aravindh, Santhil Jagadeesan, V.
H Rama Subramaniam and T .K. Sharedri for the Respondents.
                                         254
                B. F. DAS WANI v. H.P .A INTERNATIONAL                     255

      The following Order of the Court was delivered :                            A
      The defendant-appellants, who are the subsequent purchasers, arc in
appeal. This appeal is directed against thi: judgment of Madras High Court
dated 24th January, 1994 when:by the dt:cree for spi:cific performance of
the agreement passed by the trial court was affirmed.
                                                                                  B
       On 26th June, 1977 respondent No. 2 entered into an agreement with
first ri:spondcnt hi:rcin, for transfer of bis life interest in the property in
dispute. On 29.12.79, respondent No. 2 transferred the rights in favour of
the dt:fendant-appellants who are the subsequent purchasi:rs for considera-
tion of Rs. 4.40 lakhs. Under such circumstances, plaintiff-respondent No.
1 brought a suit for specific performance, which was decreed by the trial
                                                                                  c
court and the appeal preferrt:d to the High Court was dismissed. It is in
this way the ddendant-appellants are before us.

        Learned Attorney Gt:neral appearing for the appellants urged that,
bcfori: the High Court, the hearing of the appeal was concluded on 22nd           D
 March, 1989 but the judgmt:nt was delivtred on 24th January, 1994 - nearly
 five years aftt:r the hearing was concludt:d, and this long delay in delivt:ry
 of judgment by itself is sufficient to set aside the judgment under appeal.
 Learned Attorney General has also relied upon decision of this Court in
the case of K.unwar Singh and Others v. Sri Thakurji Maharaj, [1995] Supp.
4 SCC 125. At presi:nt, we are not deposed to go into this broad qut:stion
                                                                                  E
as urged by the learned Attorney General. Howewr, it is correct to this
extent that long dt:!ay in delivery of judgment gives rise to unnecessary
speculations in the mind of parties to a case. Moreover, the appellants
whose appeals have been dismissed by the High Court may have the
apprehension that the argumt:nts raised at the bar havt: not been reflected       F
or appreciated while dictating the judgment - nearly after five years. This
is fairly not disputed by learned senior counsel, Shri K. Parasaran, appear-
ing for respondent No. l. Wt:, therefon:, on this short question, set aside
tht: judgment under appt:al without expressing any opinion on the merits
of the cast: and remit the case to the High Court for deciding the appt:al        G
afrt:sh, on merits. In view of the fact, that the matter has been pending for
a considerable period of time, we request the High Court to decide the
matter expeditiously, if possible, within six months.

      Bdore we part with the case, we would like to observe that when this
appt:al was filed in this Court, the interim relief prayed for by the appel-      H
    256                  SUPREME COURT RHORTS                   (2!XXl] 1 S.C.R.
A !ants was refused. As a consequence, respondent No. 2 executed a sale
  deed in favour of respondent No. 1, and respondent No. 1 came in
  possession of the property and since then, he continues to be in possession.
  Under such circumstances, respondent No. 1 being the lawful owner, so
  long the decn:e remains intact, is entit:ed to continue in possession over
B the property in dispute. Learned Attorney General u~ged that, in case
  respondent No. 1 is to continue in possession over the property, the interest
  of the appellants may also to be protected. It is then, learned counsd for
  the parties madt: an agreed statement that during the pendency of the
  appeal before the High Court respondent No. 1 shall not create any third
   party right in respect of the property in dispute and turther shall deposit
C the rent/incomt: received from that property in tht: High Court aftt:r
   deducting the maintenanct: charges and tdX liabilities which shall be subject
   to the decision of the appeal in the High Court. Wt: order accordingly.

         The appeal is allowed. There shall be no order as to costs. All the
                                                                                   ..
    !As are disposed of accordingly.
D
    T.N.A.                                                     Appeal allowed.


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