Holding

A decree that has attained finality cannot be varied by a revisional court; interest must be payable from the date the amount became due, not from the date of the decree.

Summary

Darshan Singh, an Accounts Clerk, was suspended in 1965 on allegations of embezzlement, later acquitted and reinstated with his suspension treated as duty. He sued the State of Punjab for full pay and allowances for the suspension period (25‑May‑1965 to 28‑Apr‑1978) and was awarded Rs 60,586.75 with interest at 12% per annum from the date the amount became due, as decreed on 9‑Dec‑1992. The executing court upheld the interest award, but the State obtained a revision from the High Court, which varied the decree by fixing interest from the date of the decree (9‑Dec‑1992) onward. The Supreme Court held that a decree that has attained finality cannot be varied by a revisional court; the interest must accrue from the date the amount became due (25‑May‑1965). Consequently, the High Court’s order was set aside and the appeal was allowed, directing payment of the sum with interest from 25‑May‑1965.

Issues considered

Whether a High Court, exercising revisional jurisdiction, can vary the terms of a decree that has attained finality, particularly the interest period.
Whether the interest on the decree should be calculated from the date of the decree or from the date the amount became due and payable.
Whether the High Court erred in directing a fresh consideration of the appellant’s crossing of the efficiency bar.

Legislation cited

Code of Civil Procedure, 1908

Subjects

decree modificationrevisional jurisdictioninterest calculationfinal decreeexecution of decreeCivil Procedure Codeefficiency barsuspension arrears

Judgment

DARSHAN SINGH A
11.

STATE OF PUNJAB

FEBRUARY 13, 2007

[DR. AR. LAKSHMANAN AND AL TAMAS KABIR, JJ.] B

• I
Code ofCivil Procedure, 1908-Modification ofdecree-Terms of decree
attained finality-High Court, in exercise of its revisional jurisdiction against
the order passed in execution, modified terms of decree-Propriety of-Held,
not proper.
c
A case of embezzlement and misappropriation of Government Funds was
filed against Appellant, an Accounts Clerk in PWD Department of the State
of Punjab and he was put under suspension on 24-5-1965. A criminal case
was also initiated against the Appellant but he was ultimately acquitted. D
Appellant was re-instated and period of his suspension was treated as on duty

r
' for all purposes. He filed suit seeking full pay and allowances for the period
25-5-1965 to 28-4-1978. Trial Court held him entitled for Rupees Sixty
Thousand with interest at the rate of 12% p.a. from the date the amount
became due till its actual realisation. The decree attained finality. Appellant
filed execution petition. Executing Court dismissed objections raised by E
Respondent-State and held Appellant entitled for interest@ 12% p.a. with
yearly rest. Respondent-State filed revision petition which the High Court
allowed holding Appellant entitled to Rupees Sixty Thousand from 9-12-1992,
i.e. the date of decree upto the date of actual payment.

{ In appeal before this Court it was contended that the terms of the decree
F
having attained finality, High Court in exercise of its revisional jurisdiction
could not have added/varied the terms of decree and that the High Court erred
in granting inter.est from 9.12.1992, the date of decree, when the decree
specifically stated that the interest is liable to be paid by Respondent from
the date the amount became due and payable to the Appellant. G

-""' Allowing the appeal, the Court

HELD: l.l. The Trial Court passed the decree dated 9.12.1992 in favour
of the Appellant holding him entitled to interest@ 12% per annum from the
531 H
532 SUPREME COURT REPORTS [2007] 2 S.C.R.

A date the amount became due and payable till realization. The decree simply
meant that the Appellant is entitled for dues and the allowances for the period
25.5.1965 to 28.4.1978, thus Appellant became entitled for the interest on
due amounts from 25.5.1965 until the date of realization. !Para 18]
[538-8-CJ

B 1.2. In this case the decree passed by the Trial Court and further leave
granted by the First Appellate Court in favour of the Appellant were approved
by all the Courts up-till this Court. This Court had dismissed the Special
Leave Petition and thus the decree passed in favour of the Appellant attained
finality. T~e High Court in exercise of its revisional jurisdiction cannot vary
C the terms of the decree in execution. The High Court has committed an
apparent error in granting interest from 9.12.1992. Thus, the Appellant is
entitled for an amount ofRs.60,586.75 along with interest@ 12% per annum
from the date the amount became due and payable, namely, from 25.5.1965.
!Para 19) 1538-F-H; 539-A-B[

D Vasudev Dhanjibhai Modi v. Rajabhai Ab~ul Rehman & Ors., 11970) l
SCC 670; C. Gangacharan v. C. Narayanah1 12000) 1 SCC 459 and
Bhawarlal Bhandari v. Universal Heavy Mechahical Lifting Enterprises, J
11999) 1 sec 558, relied on.

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 745 of2007.
E
From the Final Judgment and Order dated 8.4.2005 of the High Court of
Punjab and ~aryana at Chandigarh in C.R. No.256911996.

Satinder S. Gulati, Kamaldeep Narang and Dr. Kailash Chand for the
Appellant.
F
Kuldip Singh, R.K. Pandey, Sanjay Katya!, T.P. Mishra, M.K. Verma and ~
Arun K. Sinha 'for the Respondent.

The Judgment of the Court was delivered by

G DR. AR. LAKSHMANAN, J. I. Leave granted.

2. The present appeal is directed against the judgment and order dated
8.4.2005 passed by the High Court of Punjab and Haryana in Civil Revision
No. 2569 of 1996 whereby the High Court allowed the Civil Revision filed by
the respondent-State of Punjab. The appellant joined the PWD Department
H of State of Punjab as Clerk on 2.2.1953. He was promoted as a Sub-Divisional
DARSHAN SINGH v. STA TE OF PUNJAB [LAKSHMANAN, l.] 533

Clerk in the year 1957 and thereafter as Accounts Clerk in April 1965, A
3. A case of embezzlement and misappropriation of Government funds
was made against him and the department filed an appeal against the
Respondent and he was put under suspension vide office order No. 57 /E
dated 24.5.1965. A criminal case was initiated against the Appellant which
ultimately resulted in the acquittal of the Appellant vide judgment and order B
dated 9.8.1973 passed by the Additional Sessions Judge, Amritsar. No
departmental action was taken against the Appellant and he was merely kept
under suspension. The Appellant was reinstated vide order dated 12.4.1978
and it was ordered that period of his suspension be treated on duty for all
intents and purposes. The Appellant was given proforma promotion as C
Officiating Head Clerk w.e.f. 24.9.1972 vide office order No. 55/E dated 27.4.1978.
The Appellant retired after attaining the age of superannuation as
Superintendent Grade-IV on 28.2.1989.

4. The Appellant filed Suit No. 898 of 14.5.1990 for declaration and
mandatory injunction seeking full pay and allowances for the period 25.5.1965 D
to 28.4.1978 and also claimed that he was entitled to cross efficiency bar w.e.f.
l .~1981 and consequential relief thereof i.e. proficiency step up increments,
increase in leave encashment, pension and gratuity etc. with interest at 18%
per annum. The Appellant sought mandatory injunction for payment of the
aforementioned dues with interest. E
5. The suit of the Appellant was partly allowed by the trial court holding
him entitled for an amount of Rs.60,586.75 along with interest at 12% per
annum from the date the amount became due till its actual payment. The claim
for crossing the efficiency bar was, however, rejected by the Trial Court being
time barred. F
(
6. An appeal was filed by the Appellant which was allowed by the First
Appellate Court vi de judgment dated 17 .11.1993 and the appeal filed by the
Respondent/State was dismissed. The Appellant was held to be entitled for
consideration of crossing the efficiency bar. G
7. Two second appeals which were filed by the Respondent against the
common judgment of the Appellate Court were dismissed by the High Court
on 12.9.1994. Thereafter the Appellant filed execution petition in the Court of

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Additional Civil Judge, Amritsar on 3 I .10.1994. The Respondent/State filed its
objections. The Respondent/State thereupon filed Special Leave Petition Nos. H
~
534 SUPREME COURT REPORTS [2007) 2 S.C.R.

A 1527-1528of1995 in this Court and the same was dismissed vide order dated -~
3.2.1995. The Appellant replied to the objections of the State in the execution
proceedings. Office Order No. 100 dated 24.3 .1995 was issued by the
Respondbn,t whereby the Appellant was allowed to cross the efficiency bar.
Vide Office Order No. 103/95 dated 30.3.1995, the Appellant was also granted
one additional increment on consolidation of 8 years' service in the form of
B
proficiency step up w.e.f. 1.1.1986. The Executing Court dismissed the
objections filed by the Respondent/State and held that the Appellant is
entitled for interest at 12% per annum with yearly rest. The Civil Revision
Petition filed by the State against the order dated 15.5.1996 of the Executing ;'
'
Court was ,allowed holding that the Appellant is entitled to an amount of
c Rs.60,586.7,5 from 9.12.1992, namely, the date of decree upto the date of actual
payment.

8. Mr. Satinder S. Gulati, the learned counsel for the Appellant submitted
that in terms of the decree which has attained finality, the High Court in
exercise of its revisional jurisdiction passed an order, could not have ordered/
D
varied the.terms of the decree in view of the law laid down by this Court in
various judgments. The learned counsel further submitted that the High Court
was under an apparent error in granting interest from 9. 12 .I 992 thougli the
decree specifically stated that the interest is liable to be paid by the Respondent ...,
from the date of the amount became due and payable to the Appellant. The
E learned co,unsel also addressed on the question that the Executing Court
cannot go behind the terms of a decree passed by a Court of a competent
jurisdiction. He has further submitted that the Respondent has already held
Appellant entitled for crossing the efficiency bar and had made payment
against the same to the Appellant, but the High Court had' passed the
F impugned judgment as if the Appellant is yet to be considered for crossing
the efficiency bar.
\
9. It Wl\S submitted that the Appellant had made a representation to the
department for his reinstatement to Superintending Engineer (Construction
Cell), Amritsar which was kept under consideration for two years, thereafter
G the Appellant was reinstated vide Order No. 17/F&K dated 12.4.1978 issued
by the Chief Engineer, PWD. It was ordered by the Chief Engineer for his
reinstatement and the period of suspension was ordered to be treated on duty
"'IL.
for all intents and purposes. It was further submitted that in pursuance and
in continuation of the aforesaid order dated 12.4.1978 passed by the Chief
H Engineer, the Appellant was given proforma promotion as Officiating Head
-
DARSHAN SINGH v. STA TE OF PUNJAB [LAKSHMANAN, J.] 535

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Clerk w.e.f. 24.9.1972 on the orders issued by the Superintending Engineer, A
Amritsar, PWD dated 27.4.1978 and that the Appellant was posted as
Officiating Head Clerk in Bridge Investigating Division and where the Appellant
joined the duty on 28.4.1978. Thus, it is seen that in view of the aforementioned
facts and circumstances the whole suspension period of the Appellant was
regularized by the department as duty period for all intents and purposes,
therefore, the Appellant became entitled for whole arrears of pay and B
emoluments and the suspension period stood condoned. But the High Court
vide order dated 8.4.2005 allowed the Civil Revision filed by the Respondent
\ setting aside the order dated 15 .5 .1996 passed by the Executing Court. It is
submitted that the impugned order is apparently erroneous for the reasons
that the High Court held in it that the amount of Rs.60,586.75 is payable to c
the Appellant along with interest@ 12% per annum from 9.12.1992 till the date
of payment, instead from the date the amounts became due and payable to
the Appellant.

I0. The learned counsel for the Appellant submitted that the Respondent
did not lead any evidence to their objections but on behalf of the Appellant D
two witnesses were examined and the Respondent did not lead any evidence
·V to show that the Appellant was not entitled to the interest @ 12% per annum
'r with yearly rest as Appellant raised in the execution.

11. It was also brought to our notice that an Office Order No. I00 dated
24.3.1995 was passed by the Superintending Engineer, Central Works Circle, E
PWD allowing the Appellant to cross the efficiency bar w.e.f. 1.9.1981 at the
stage ofRs.850/- in the pay scale ofRs.620-20-700/25-850/30-1000/40-1200 and
his pay was raised from Rs.850/- to Rs.880/- per month. The Respondent vide
Office Order No. 103 dated 30.3.1995 granted the Appellant one additional
increment on consolidation of 8 years' in the form of proficiency step-up w.e.f. F
~ 1.1.1986 in the pay scale of Rs.2000-3500 raising his pay from Rs.2100 to
Rs.2150 per month. Thus, it is seen that the Respondent has already held that
the Appellant to be entitled for crossing the efficiency bar and had made the
payment to him for the same and the High Court in the impugned judgment
has said that the Respondent should consider the Appellant's case for crossing
the efficiency bar. G
.}-' 12. In support of his contention that the Executing Court cannot go
behind the terms of the decree passed by a Court of competent jurisdiction,
the learned counsel for the Appellant placed strong reliance on the judgments
in Vasudev Dhanjibhai Modi v. Rajabhai Abdul Rehman & Ors., [1970] l SCC
H
536 SUPREME COURT REPORTS [2007] 2 S.C.R.

A 670; C. Gahgacharan v. C. Narayanan reported in [2000] 1 SCC 459 and
Bhawarlal Bhandari v. Universal Heavy Mechanical Lifting Enterprises,
[ 1999] 1 sec 558 .
•
13. We shall now consider the above three judgments.

B Vasudev Dhanjibhai Modi v. Rajabhai Abdul Rehman & Ors.(supra),
this Court in para 6 held the following:-

"A court executing a decree cannot go behind the decree : between
the parties or their representatives it must take the decree according '
.I

to its tenor, and cannot entertain any objection that the decree was
c incbrrect in law or on facts. Until it is set aside by an appropriate
proceeding in appeal or revision, a decree even if it be erroneous is
still binding between the parties."

14. This Court held that the Executing Court cannot go behind the
decree unless it is shown that it was passed by a Court inherently lacking
D jurisdiction and thus was a nullity. The aforesaid decision of this Court
squarely applies to the facts of the present case. This is not a case in which
the decree on the face of it was shown to be without jurisdiction. It is not
the case of the Respondent that the Court which passed the decree was
lacking inherent jurisdiction to pass such a decree.
E 15. This Court in the judgment reported in Bhawarlal Bhandari v.
Universal Heavy Mechanical Lifting Enterprises (supra) and in C.
Gangacharan v. C. Narayanan (supra) has also taken the same view that the
Executing Court cannot go behind the decree of a Court of competent
jurisdiction except in the decrees void ab initio without jurisdiction.
F
16. Mr. Kuldip Singh, learned counsel for the Respondent, in reply to \
the arguments advanced by the learned counsel for the Appellant, submitted
that this Court had issued notice to the Respondent limited to the question
of efficiency bar and also regarding the due date from which the payments
are to be made. According to him, the High Court has decided the case after
G due consideration of all aspects on the due dates for awarding the interest
i.e. 9.12.1992 is quite justified and are well within the provisions of the settled
law. It is further submitted as follows:- -i.

"Due date from which the payments are lo be made.

H
DARSHAN SINGH v. STATE OF PUNJAB [LAKSHMANAN, J.] 537
(i) That Hon'ble High Court orders dated 8.4.2005 are in order and A
as per law.

(ii) That the Trial Court decreed the suit filed on 9.12.1992 for the
60586.75 with interest @ 12% per annum from the date, the
amount become due till the date of realization.

(iii) That the amount of Rs.60586.75 was clearly quantified by the B
Trial Court in his orders dated 9 .12.1992.

(iv) That there is no provision in the decree that the amount become
due in the year 1965 when the plaintiff was suspended or that
this am01.!nt become due on the date of his reinstatement on
12.4.1978. c
(v) That there is no provision of any specific date in the decree and
the award is clearly quantified to Rs.60586.75 paisa and was
declared on the date of decree i.e. 9.12.1992 and thus interest
become due only afkr that date.
D
17. In the light of the above background, the following substantial
questions of law of public importance arose for consideration of this Court:-
r
A. Whether in terms of the decree which has attained finality, the
High Court in exercise of its revisional jurisdiction against the
order passed in execution would have added/varied terms of E
decree?

B. Whether the High Court was under an apparent error in granting
interest from 9.12.1992 though the decree specifically stated that
the interest would be paid along with interest@ 12% per annum
from the date the amount became due and payable to the F
Appellant?

C. Whether the impugned directions by the High Court in regard to
crossing of efficiency bar by the Appellant are erroneous for the
reasons that the Respondent/State has already allowed the
Appellant to cross the efficiency bar w.e.f. 1.9.1981 by passing G
an office order No. I 00 dated 24.3.1995?

18. We have carefully considered all the orders passed by the Trial
Court, Appellate Court and the High Court and also the order passed by the
Executing Court. We have also perused the annexures and the records filed
H
~-
\

538 ' ' SUPREME COURT REPORTS [2007] 2 S.C.R.

A along with the SLP. Our attention was drawn to the relevant passages in the
judgments. Both the learned counsel argued the case at length. In our opinion,
the order of the High Court is absolutely incorrect. In the instant case, the
Respondent/State has taken the stand in their counter-affidavit before this
Court totally contrary to the stand taken before the High Court and the courts
below. The· Trial Court passed the decree dated 9.12.1992 in favour of the
B Appellant holding him entitled to interest @ 12% per annum from the date
the amount became due and payable till realization. The decree simply meant
that the Appellant is entitled for dues and the allowances for the period 'r
.('
25.5.1965 to 28.4.1978, thus Appellant became entitled for the interest on due
amounts from'25.5.1965 untill the date of realization. The State of Punjab in
c their objections to the Execution Petition of the Appellant took erroneous
ground that the Appellant became entitled for payment from the date i.e.
24.4.1978, but before this Court the State of Punjab has taken the stand in para •
5(v) of the counter-affidavit that the Appellant is entitled for interest from the
date of decree i.e. 9.12.1992. It is totally contrary to the earlier stand taken by
them. Therefore, contradictory stand taken by the State cannot at all be
D countenanced.

19. In the instant case, the Respondent/State has already held the
Appellant entitled to cross the efficiency bar w.e.f. 1.1.1981 and his pay was l
raised from Rs.850/- to Rs.880/- per month vide their office order No. 100 dated
24.3 .1985. The Respondent/State even granted one additional increment w.e.f.
E
1.1.1986 raising"his pay from Rs.2100/- to Rs.2150/- per month vide their office
order No. I 03 dated 30.3.1995. The Appellant has been paid the due amounts
by the Respondent/State according to their aforementioned office orders.
Now, before this Court for the first time the State has taken the stand in
paragraphs (vii) and (viii) that the order of the High Court for considering the
F case of the Appellant for crossing the stage of efficiency bar is justified. This \
is the case where the decree passed by the Trial Court and further leave
granted by the First Appellate Court in favour of the Appellant were approved
by all the Courts up-till this Court. This Court vide order dated 3.2.1995
dismissed the Special Leave Petition (C) Nos. 1527-1528of1995 filed against
the judgment dated 12.9.1994 in RSA Nos. 1915-1916 of 1994 and thus the
G ''
decree passed in•favour of the Appellant attained finality. In such a case, the
stand taken by the State in their counter-affidavit is really unfortunate. We
have already noticed that the High Court in exercise of its revisional jurisdiction ""'
cannot vary the terms of the decree in execution in view of the ruling by this
Court in 1970 (1) SCC 670 and 1999 (I) SCC 558 and 2000(1) SCC 459. In our >

H
DARSHANSINGHv. STATEOFPUNJAB[LAKSHMANAN,J.) · 539
opinion, the High Court has committed an apparent error in granting interest A
from 9.12.1992 though the interest is liable to be paid by the Respondent to
the Appellant. Thus, we hold that the Appellant is entitled for an amount of
Rs.60,586.75 along with interest@ 12% per annum from the date the amount
became due and payable, namely, from 25.6.1965. We have already pointed out
that the contradictory statements made and taken in the counter affidavit by B
the State.

20. In our view, the impugned order dated 8.4.2005 passed by the High
Court is totally erroneous and thus not sustainable in law. We, therefore,
direct the Respondent/State to pay the said sum of Rs.60,586.75 with simple
interest@ 12% per annum from 25.5.1965 till its realization. The entire amount C
due shall be paid within two months from this date failing which the Appellant
will be entitled for payment with 18% simple interest per annum.

21. The Civil Appeal stands allowed. However, there will be no order as
to costs.

B.B.B. Appeal allowed.

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