OM AGGARWALversusHARYANA FINANCIAL CORPORATION AND OTHERS
- Citation
- 2015 INSC 147
- Decided
- 23 February 2015
- Disposal
- Dismissed
- Bench
- RANJAN GOGOI
Holding
A civil suit filed by a defaulter challenging a recovery notice under the Haryana Public Moneys (Recovery of Dues) Act, 1979 is barred by Section 3(4) and cannot be entertained by a civil court.
Summary
The appellant, a promoter of a limited company, entered into a buy‑back agreement with Haryana Financial Corporation, which later issued a recovery notice under the Haryana Public Moneys (Recovery of Dues) Act, 1979 claiming arrears of land revenue. The appellant filed a civil suit seeking declaration that the agreement and the recovery notice were void. The corporation moved to reject the plaint under Order VII Rule 11(d) of the CPC, invoking Section 3(4) of the Act which bars civil courts from entertaining any suit relating to recovery from a defaulter. The trial court, the Additional District Judge and the High Court all dismissed the suit, holding it barred. On appeal, the Supreme Court examined the definitions of "defaulter" and "financial assistance" under the Act and applied the principle from S.K. Bhargava, concluding that the suit fell squarely within the bar of Section 3(4). The Court rejected the appellant's reliance on the Unique Butyle case, noting the statutory differences, and affirmed the dismissal of the appeal.
Issues considered
- The applicability of Section 3(4) of the Haryana Public Moneys (Recovery of Dues) Act, 1979 to a civil suit challenging a buy‑back agreement and a recovery notice.
- Whether the civil court has jurisdiction to entertain a suit filed by a defaulter against a corporation under the Act.
- The relevance of the decision in Unique Butyle Tube Industries v. U.P. Financial Corporation to the present case.
Legislation cited
- Haryana Public Moneys (Recovery of Dues) Act, 1979s. 2(b), s. 2(c), s. 2(d), s. 3(4)
Subjects
Judgment
[2015] 2 S.C.R. 505
OM AGGARWAL A
v.
HARYANA FINANCIAL CORPORATION AND
OTHERS
B
(Civil Appeal No. 4942 of 2007)
FEBRUARY 23, 2015
[RANJAN GOGOi AND
ABHAY MANOHAR SAPRE, JJ.]
c
Code of Civil Procedure, 1908 - 0. VII r. 11 (d) -
Rejection of plaint - Jurisdiction of civil court - Suit
for declaration by appellant-one of the promoter of
the limited company that the Buy Back Agreement D
executed by the appellant with respondent no. 1-State
Financial Corporation; and the recovery notice issued
by the Corporation be declared null and void -
Application u/0. VII r.11 rw s.21 by respondent no. 1
that the suit claiming the said relief was not E
maintainable - Dismissal of suit as not maintainable
by the courts below, by taking recourse to 0. VII r. 11 (d
) - Interference with - Held: Not called for - On facts,
appellant was a 'defaulter' as defined uls.2(c); the
investment made by the Corporation pursuant to an F
agreement was in the nature of the 'financial
assistance' as defined uls.2(d); demand raised by
Corporation was in relation to the amount given by
way of financial assistance u/s. 3 and the subject G
matter of the suit fell uls. 3(4)(a), (b), thus, the bar
contained in s. 3(4) in filing the civil suit by the
defaulter attracted - Haryana Public Moneys
505 H
506 SUPREME COURT REPORTS [2015] 2 S.C.R.
A (Recovery of Dues) Act, 1979 - ss. 2(b), (c), (d), 3(4).
Dismissing the appeal, the Court
HELD: 1.1 Section 3 of the Haryana Public
8 Moneys (Recovery of Dues) Act, 1979 empowers
the Corporation to make recovery of its
outstanding dues from the defaulter as arrears
of land revenue by getting the certificate of
recovery of the amount issued from the
C competent authority whereas sub-section (4) of
Section 3 in clear terms takes away the
jurisdiction of the civil court to entertain or/and
adjudicate "any case" relating to the recovery
of any sum due from the defaulter. It also takes
0 away the jurisdiction of civil court to proceed
with any pending case involving such issue. If
any such case is pending on the date of
commencement of the Act, such case shall
stand abate. [Para 23) [518-E-G]
E 1.2 Applying the principle of law laid down in
S.K. Bhargava case, it is clear by mere reading of
the plaint that firstly, the plaintiff was a 'defaulter'
as defined under section 2(c) of the Act; secondly,
the investment made by defendant No.1-
F Corporation pursuant to an agreement was in the
nature of the 'financial assistance' as defined
under Section 2 (d) of the Act; thirdly, the demand
raised by the respondent was in relation to the
amount given by way of financial assistance
G under Section 3 of the Act and lastly, the subject
matter of the suit viz., challenge to the legality of
the agreement and the demand fell under Section
3(4)(a) and (b) of the Act. In the light of the facts,
which are clearly discernable from the averments
H
OM AGGARWAL v. HARYANA FINANCIAL 507
CORPORATION
made in the plaint, the provisions of the Act get A
attracted to the case in hand which, in turn, attract
the bar contained in sub-section (4) of Section 3 in
filing the civil suit by the defaulter. The suit is,
therefore, apparently barred by virtue of bar contained
in Section 3(4) of the Act. It was thus, rightly dismissed B
by the courts below by taking recourse to Order VII
Rule 11 (d) of the Code. [Paras 25 and 26] [520-A-E]
S.K. Bhargava v. Collector, Chandigarh and others
(1998) 5 SCC 170: 1998 (2) SCR 1158 - relied on. C
'
Unique Butyle Tube Industries (P) Ltd. v. U.P.
Financial Corporation and Others (2003) 2 SCC 455:
2002 (5) Suppl. SCR 666 - held Inapplicable.
D
Case Law Reference
1998 (2) SCR 1158 referred to Para 25
2002 (5) Suppl. SCR 666 held inapplicable Para 32
E
CIVILAPPELLATE JURISDICTION: Civil Appeal No.
4942 of 2007
From the Judgment and Order dated 03.03.2005 of
the High Court of Punjab & Haryana at Chandigarh in F
Civil Revision No. 3127 of 2004.
Suresh Singh, Rohit Tandon, Ruchi Kohli for the
Appellant.
G
Birendra Kumar Choudhary, AAG, Sanjay Kumar
Visen, Amarjit Singh Bedi, Amit Dayal for the Respondents.
The Judgment of the Court was delivered by
H
508 SUPREME COURT REPORTS [2015] 2 S.C.R.
A ABHAY MANOHAR SAPRE, J. 1. This civil appeal
is filed by the appellant/plaintiff (hereinafter referred
to as "the plaintiff) against the judgment/order dated
03.03.2005 passed by the High Court of Punjab &
Haryana at Chandigarh in Civil Revision No. 3127 of
B 2004 which arises out of order dated 26.03.2004
passed by the Additional District Judge, Hisar in Civil
Appeal No. 87/2003/2004.
2. In order to appreciate the issue involved in the
C appeal, few relevant facts need to be mentioned in
brief.
3. The plaintiff is one of the promoters of a limited
company known as "Mis lndo Britain Agro Farms
D Limited Hisar" which is engaged in the manufacture
of ordinary white buttons "Mushroom" at Hisar
(Haryana).
4. Respondent No.1/defendant No.1-Haryana
E Financial Corporation (hereinafter referred to as
"defendant No.1 "), established under the State
Financial Corporation Act, 1951 is a "Corporation"
under Section 2 (b) of the Haryana Public Moneys
(Recovery of Dues) Act, 1979 (for short "the Act").
F
5. The plaintiff had taken various kinds of financial
assistance from defendant No.1 for running his
business.
6. In May 1995, defendant No.1 with a view to
G extend financial assistance to the plaintiff's Company
purchased 3 lacs equity shares of the said company
at the rate of Rs.10/- per share and, accordingly,
invested a sum of Rs.30 Lacs. This investment led
H the parties to enter into further business transactions.
OM AGGARWAL v. HARYANA FINANCIAL 509
CORPORATION [ABHAY MANOHAR SAPRE, J.)
After several rounds of negotiations and A
correspondence between the parties, the plaintiff
entered into an agreement styled as "Buy Back
· Agreement" with defendant No.1 on 16.07.1996
(Annexure P-6).
B
7. In terms of the aforesaid agreement, the
plaintiff's company was to enhance its equity share
capital by issuing further shares to the extent of
Rs.485.59 lacs whereas defendant No.1 was to
subscribe Rs. 30 lacs towards the share capital of the C
plaintiff's Company by way of financial assistance for
augmenting the business. The agreement, inter-a/ia,
provided the terms specifying therein, the manner in
which the plaintiff was to secure the investment made
by defendant No.1, right of the plaintiff to purchase/ D
buy-back the shares of defendant No.1 Corporation
at the specified rates, right of defendant No.1 to
nominate its nominee directors in the Board of
Directors of the plaintiff's Company to monitor its
affairs, right of defendant No.1 to recover their E
investment including a right to claim damages
sustained in the transaction as arrears of land revenue
from the plaintiff by taking recourse to the provisions
of the Act for making recovery in the event of any F
default committed by the plaintiff of any term of the
aforesaid agreement etc.
8. Defendant No.1, however, found that the
plaintiff has failed to ensure compliance of the terms
of the aforesaid agreement. They were, therefore, G
constrained to invoke the terms of the agreement and
got the notice issued through Tahsildar against the
plaintiff for recovery of Rs.18.03 Lacs under the Act
as arrears of land revenue on 28.02.2002 (Annexure H
510 SUPREME COURT REPORTS [2015] 2 S.C.R.
A P-14).
9. It is with the aforesaid facts of the case, which
were pleaded in the plaint, the plaintiff filed a suit for
declaration being Civil Case No. 328-C of 2002 in the
B Court of Civil Judge at Hisar (Annexure P-15) against
the defendants for a declaration that the Buy-back
agreement dated 16.07.1996 be declared null and
void and in alternative the recovery sought to be made
by defendant No.1 by issuance of notice of demand
C for recovery of Rs.18.03 lacs (Annexure P-14)
pursuant to the said agreement is also bad in law and
be set aside.
10. The reliefs claimed in the plaint reads as
o under:
"It is, therefore, prayed that a decree for
declaration to the effect that the Buy-back
Agreement dated 16.7.1996 executed by the
E plaintiff at Hisar with defendant No. 1 is
null and void ab initio and is liable to be
set-aside and in the alternative for
declaration to the effect that the recovery
of defendant No. 1 on the basis of this
F agreement has become time barred and
that the Recovery Certificate issued by the
Managing Director of the defendant No. 1
on the basis of this Agreement is null and
void ab initio and is liable to be set-aside
G with the consequential relief of permanent
injunction (prohibitory) restraining the
defendants from implementing the
Recovery Certificate against the plaintiff in
any manner including his arrest may kindly
H
OM AGGARWAL v. HARYANA FINANCIAL 511
CORPORATION [ABHAY MANOHAR SAPRE, J.]
be passed in favour of the plaintiff(s) and A
against the defendant(s) with costs.
Any other relief to which the plaintiff(s)
is/are found entitled may also be granted."
8
11. The aforesaid reliefs were founded
essentially on the allegation that the agreement in
question was executed by the plaintiff on account
of undue pressure, coercion and duress exercised
by defendant No.1 on him. The plaintiff, in para 21 c
of the plaint, also averred that he is aware of the
fact that the civil suit is barred by virtue of the
provision$ of the Act. Para 21 of the said plaint reads
as under:
D
"That the plaintiff is aware of the fact that
the jurisdiction of the civil court is barred
under Haryana Public Moneys (Recovery
of Dues) Act, 1979. But he is also aware
of the law laid down by the Hon'ble 5 E
Judges of the Apex Court of India reported
in AIR 1969 SC 78 that in case the
Statutory Authorities do not act in
accordance with the procedure prescribed
in the Statues, then the Civil Court alone F
has the jurisdiction to entertain and try
every suit. The present suit is no
exception to the law laid down by the
Hon'ble Supreme Court of India."
G
12. On receipt of the notice of the suit, the
defendants entered appearance and filed an
application under Order VII Rules 10 & 11·read with
Section 21 of the Code of Civil Procedure, 1908
(hereinafter referred to as "the Code"). Defendant H
512 SUPREME COURT REPORTS [2015] 2 S.C.R.
A No.1 contended that the suit of this nature for
claiming the aforementioned reliefs was not
maintainable by virtue of express bar contained in
Section 3(4) of the Act, which in clear terms provided
B that no Civil Court shall have jurisdiction to entertain
or adjudicate upon any case relating to the recovery
of any sum due from the defaulter and if any such
suit is pending at the commencement of the Act in
any Civil Court then it shall abate. Defendant No.1,
c therefore, contended that since the plaintiff has
challenged the agreement as also the recovery notice
issued by the Tahsildar under Section 3 of the Act in
the Civil Suit, the same was not maintainable being
barred by Section 3(4) of the Act. It was, therefore,
D liable to be dismissed under Order VII Rule 11 (d) of
the Code read with Section (3)4 of the Act.
13. The plaintiff opposed the aforesaid
application. According to him, the provisions of the
E Act were not applicable to the case in hand
notwithstanding the bar contained in Section 3(4) of
the Act for filing a civil suit in the civil court and,
therefore, the civil ·suit was maintainable.
F 14. The trial Court, by order dated 16.8.2003,
allowed the application filed by defendant No.1 and,
in consequence, dismissed the suit. It was held that
having regard to the averments made in the plaint
and the nature of the reliefs claimed in the suit, the
G bar contained in Section 3(4) of the Act was attracted
and hence, the suit was liable to be dismissed as not
maintainable.
15. Felt aggrieved, the plaintiff filed an appeal
H before the Additional District Judge, Hisar being Civil
OM AGGARWAL v. HARYANA FINANCIAL 513
CORPORATION [ABHAY MANOHAR SAPRE, J.]
Appeal No. 87/2003/2004. By order dated A
26.03.2004, the Additional District Judge dismissed
the appeal.
16. Against the said order, the plaintiff filed Civil
Revision in the High Court. The High Court, by B
impugned judgment, dismissed the revision in limine
and upheld the order of the trial court. It is against
this judgment/order the plaintiff has filed this appeal
by way of special leave.
c
17. The short question, which arises for
consideration in this appeal, is whether the courts
below were justified in dismissing the plaintiff's civil
suit as being barred by law.
D
18. Mr. Suresh Singh, learned counsel appearing
for the appellant/plaintiff, while assailing the legality
and correctness of the impugned order, contended
that the courts below committed an error in dismissing
the plaintiff's suit as barred by law. Placing reliance E
on the decision of this Court in Unique Butyle Tube
Industries (P) Ltd. vs. U.P. Financial Corporation
And Others (2003) 2 SCC 455, learned counsel
contended that the suit should have been held
maintainable for adjudication of reliefs claimed therein F
in the light of the law laid down in Unique Butyle
case (supra) wherein this Court has held that a
demand for recovery of the amount cannot be raised
by taking recourse to the provisions of the U.P. Public
Moneys (Recovery of Dues) Act, 1972. G
19. In contra, learned counsel for the defendants,
while supporting the impugned order, contended that
it does not call for any interference.
H
514 SUPREME COURT REPORTS [2015] 2 S.C.R.
A 20. Having heard the learned counsel for the
parties and on perusal of the record of the case, we
find no merit in this appeal.
21. It is apposite to take note of the provisions of
B Order VII Rule 11 of the Code and some of the
provisions of the Act, which have a bearing over the
issue involved in the present appeal.
"Order VII, Rule 11 (d) CPC
c
11. Rejection of plaint-The plaint shall be
rejected in the following cases:-
D (a) ............................ .
(b) ............................ .
(c) ............................ .
E (d) where the suit appears from the
statement in the plaint to be barred by
any law;
Section 2(b)(c)(d) and 3 of the Act, 1979:
F
Section 2(b)
"Corporation" means the Haryana
Fwancial Corporation established under the
State Financial Corporations Act, 1951, and
G includes any other Corporation owned or
controlled by the Central Government or the
State Government which the State
Government may, by notification, specify;
H
OM AGGARWAL v. HARYANA FINANCIAL 515
CORPORATION [ABHAY MANOHAR SAPRE, J.]
Section 2(c) A
"Defaulter" means a person who, either as
principal or as surety is a party-
(i) to any agreement relating to a loan,
B
advance or grant given under that
agreement or relating to credit in
respect of, or relating to hire purchase
of goods sold by the State Government
or the Corporation, by way of financial c
assistance, or
(ii) to any agreement relating to a loan,
advance or grant given under that
agreement or relating to credit in
D
respect of, or relating to hire-purchase
of goods sold by a Government
company under the State-sponsored
scheme; or
(iii) to any agreement relating to a E
guarantee given by the State
Government or a Corporation in respect
of a loan raised by an industrial
concern; or
F
(iv) to any agreement providing that any
money payable thereunder to the State
Government shall be recoverable a~
arrears of land revenue, and such
person makes any default in re-payment G
of the loan or advance or any instalment
thereof or, having become liable under
the conditions of the grant to refund the
grant or any portion thereof, makes any
H
516 SUPREME COURT REPORTS [2015) 2 S.C.R.
A default in the refund of such grant or
portion or any instalment thereof or
otherwise fails to comply with the terms
of the agreement;
B Section 2(d)
"financial assistance" means any financial
assistance:-
(i) for establishing, expanding,
c modernizing, renovating or running any
industrial undertaking; or
(ii) for the purposes of vocational training;
or
D
(iii) for the development of agriculture,
horticulture, animal husbandry or agro-
industry; or
(iv) for the purposes of any other kind
E of planned development; or
(v) for relief against distress;
Section 3
F 3. Recovery of certain dues as arrears
of land revenue - (1) Where any sum is
recoverable from a defaulter:-
(a) by the State Government, such
G officer as it may, by notification appoint
in this behalf;
(b) by a Corporation or a Government
company, the Managing Director
H
OM AGGARWAL v. HARYANA FINANCIAL 517
CORPORATION [ABHAY MANOHAR SAPRE, J.]
thereof; A
Shall determine the sum due from the
defaulter.
(2) The officer or the Managing B
Director, as the case may be, referred to
in sub-section (1 ), shall send a certificate
to Collector mentioning the sum due from
the defaulter and requesting that such c
sum together with the cost of
proceedings be recovered as if it were an
arrear of land revenue.
(3) A certificate sent under sub-section D
(2) shall be conclusive proof of the
matters stated therein and the Collector,
on receipt of such certificate, shall
proceed to recover the amount stated
E
therein as an arrear of land revenue.
(4) No Civil Court shall have
jurisdiction:-
F
(a) to entertain or adjudicate upon any
case; or
(b) to adjudicate upon or proceed with
any pending case, relating to the G
recovery of any sum due as aforesaid
from the defaulter. The proceedings
relating to the recovery of the sums due
from the defaulters, pending at the
H
518 SUPREME COURT REPORTS [2015] 2 S.C.R.
A commencement of this Act in any Civil
Court, shall abate."
22. An application for rejection of the plaint can
be filed, if the allegations made in the plaint taken to
B be correct as a whole on its face value show the suit
to be barred by any law. The question as to whether
a suit is barred by any law or not would always
depend upon the facts and circumstances of each
case. However, for deciding this question, only the
C averments made in the plaint are relevant. Since the
question of jurisdiction of the Civil Court to entertain
and try the civil suit goes to the very root of the case
and hence it can be raised at any time by the
defendant by taking recourse to the provisions of
D Order VII Rule 11 of the Code. Indeed, this principle
of law is well settled.
23. So far as the prov1s1ons of the Act are
concerned, Section 3 of the Act empowers the
E Corporation to make recovery of its outstanding dues
from the defaulter as arrears of land revenue by
getting the certificate of recovery of the amount issued
from the competent authority whereas sub-section (4)
F of Section 3 in clear terms takes away the jurisdiction
of the Civil Court to entertain or/and adjudicate "any
case" relating to the recovery of any sum due from
the defaulter. It also takes away the jurisdiction of Civil
Court to proceed with any pending case involving such
G issue. If any such case is pending on the date of
commencement of the Act, such case shall stand
abate.
24. The prov1s1ons of the Act and especially
H Section 3 thereof came to be interpreted by this Court
OM AGGARWAL v. HARYANA FINANCIAL 519
CORPORATION [ABHAY MANOHAR SAPRE, J.]
in S.K. Bhargava vs. Collector, Chandigarh and A
others ( 1998)5SCC 170 and hence its interpretation
is no more res integra. Justice B. N Kirpal, speaking
for the Court, held in para 8 as under:
"8. It is clear from the perusal of the above- E
quoted section that before a certificate can
be issued by the Managing Director under
sub-section (2) of Section 3, he must
determine the "sum due" from the defaulter
as enjoined upon him by Section 3(1)(b). It c
is difficult to appreciate the contention of
the learned counsel for the respondent
Financial Corporation that any such
determination can take place without notice
to the defaulter. The jurisdiction of the D
civil courts to go into the question as to
what is the amount due is expressly ousted
by sub-section (4) of Section 3. In its
place, the power has been given to the
Managing Director under Section 3(1 )(bl to E
determine as to what is the amount due
from the defaulter. There can be no doubt
that any such determination by the
Managing Director will result in civil
F
consequences ensuing. The determination
being final and conclusive, would have the
result of the passing of a final decree,
inasmuch as the defaulters from whom any
amount is found to be due, would become G
liable to pay the amount so determined and
the Collector will have the right to recover
the same as arrears of land revenue."
(Emphasis supplied)
H "~
520 SUPREME COURT REPORTS [2015] 2 S.C.R.
A 25. Applying the aforesaid principle of law to the
facts of the case in hand, it is clear by mere reading
of the plaint that firstly, the plaintiff was a "defaulter"
as defined under Section 2(c) of the Act; secondly,
the investment made by defendant No.1-Corporation
B pursuant to an agreement dated 16.07.1996 was in
the nature of the "financial assistance" as defined
under Section 2 (d) of the Act; thirdly, the demand
raised by the respondent was in relation to the amount
given by way of financial assistance under Section 3
C of the Act and lastly, the subject matter of the suit
viz., challenge to the legality of the agreement and
the demand fell under Section 3(4)(a) and (b) of the
Act.
D 26. In the light of the four aforementioned facts,
which are clearly discernable from the averments
made in the plaint, we are of the considered opinion
that the provisions of the Act get attracted to the case
in hand which, in turn, attract the bar contained in
E sub-section (4) of Section 3 in filing the civil suit by
the defaulter. The suit is, therefore, apparently barred
by virtue of bar contained in Section 3(4) of the Act.
It was thus rightly dismissed by the courts below by
F taking recourse to Order VII Rule 11 (d) of the Code.
27. We do not find any force in the submission
urged by the learned counsel for the plaintiff that on
the basis of law laid down in Unique Buty/e case
(supra), the suit should be held as maintainable for
G adjudication of the reliefs claimed therein on merits.
28. On perusal of the decision rendered in Unique
Butyle case (supra), it is clear that the said decision
was rendered in a writ petition filed by the defaulter
H
OM AGGARWAL v. HARYANA FINANCIAL 521
CORPORATION [ABHAY MANOHAR SAPRE, J.]
against the Corporation wherein the question involved A
was whether the proceedings for recovery initiated by
the U.P. Financial Corporation under the U. P. Public
Moneys (Recovery of Dues) Act, 1972 are
maintainable in view of Section 34(2) of the Recovery ·
of Debts Due to Banks and Financial Institutions Act B
1993.
29. This Court examined the aforesaid question
in the light of the provisions of the aforementioned
two Acts and held that the proceedings initiated under C
the U. P. Public Moneys (Recovery of Dues) Act, 1972,
are not maintainable in view of overriding effect given
to the Central Act by virtue of Section 34(2) of the
Central Act over the State Act.
D
30. It is pertinent to mention that while deciding
the question, their Lordships took note of the law laid
down in S.K. Bhargava case (supra) and held that
the provisions of U.P. Act and that of the Haryana Act
are not similar. This is what was held in para 15: E
"We may notice here that to strengthen his
arguments, learned counsel for the
appellant referred to the decision of this
Court in S.K. Bhargava vs. Collector, F
Chandigarh. The said case related to the
Haryana Public Moneys (Recovery of Dues)
Act, 1979 (in short "the Haryana Act").
With reference to certain observations in
para 8 of the said judgment, it was G
submitted that a process of adjudication is
inbuilt, even when the Managing Director
of the Corporation takes action. We notice
that Section 3 of the Haryana Act is
H
522 SUPREME COURT REPORTS [2015] 2 S.C.R.
A couched differently from Section 3 of the
U.P. Act. Reference was made in the said
case to Director of Industries Case, (1980)
2 sec 332 and held that while upholding
the validity of Section 3 of the U.P. Act, the
B Court was not called upon to deal with the
question as to whether the principles of
natural justice were implicit in the said
Section. We also do not think it necessary
to go into that question."
c
31. In the light of several distinguishing features
noticed in the case in hand and the facts of Unique
Butyle case (supra) such as the question as to
whether the suit filed in the Civil Court was barred or
o not, which is the subject matter of this case, was not
decided in Unique Butyle case. Secondly, the case
in hand arose out of Haryana Act whereas the Unique
Butyle case (supra) arose out of U.P Act and thirdly,
both Haryana Act and U.P. Act were held not identical
E in their wordings.
32. In the light of these distinguished features, no
reliance can be placed on the law laid down in Unique
Butyle case (supra) for deciding the issue involved in
F the present case. It has, in our considered opinion,
no application to the case in hand.
33. Before parting with the case, we consider it
apposite to clarify that we have not examined the
G legality and correctness of the demand on its merits
once it is held that Civil Court has no jurisdiction to
entertain the civil suit. In other words, once it is held
that the Civil Court has no jurisdiction to try the suit
on merits, the question as to whether the demand
H impugned in the suit is legal or not cannot be gone
OM AGGARWAL v. HARYANA FINANCIAL 523
CORPORATION [ABHAY MANOHAR SAPRE, J.]
into nor it was gone into. A
34. In view of foregoing discussion, we find no
merit in the appeal, which thus fails and is hereby
dismissed.
Nidhi Jain Appeal dismissE)d. B
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