SATHEESH V.K.versusTHE FEDERAL BANK LTD.
- Citation
- 2025 INSC 1140
- Decided
- 23 September 2025
- Disposal
- Dismissed
- Bench
- DIPANKAR DATTA
Holding
A second Special Leave Petition is not maintainable where the first was withdrawn without liberty to re‑approach, and no appeal lies from a dismissal of a review petition under Order XLVII Rule 7(1) CPC.
Summary
The appellant, a borrower, defaulted on a loan from The Federal Bank and the bank classified the loan as a Non‑Performing Asset, invoking SARFAESI provisions. The High Court ordered the appellant to pay Rs.2 crore immediately and the balance in twelve instalments, which the appellant challenged by a Special Leave Petition (SLP) that was later withdrawn without liberty to re‑approach. After the withdrawal, the appellant sought a review of the High Court order, which was dismissed, and then filed two civil appeals before this Court challenging the same High Court order and the dismissal of the review petition. The principal issue was whether a second SLP is maintainable when the first was withdrawn without permission to file a fresh petition, and whether an appeal lies from a dismissed review petition. The Court held that a party who withdraws an SLP without liberty to re‑approach is barred from filing another SLP against the same order, and that no appeal lies from the order dismissing a review petition under Order XLVII Rule 7(1) CPC. Consequently, the preliminary objections were upheld and both civil appeals were dismissed.
Issues considered
- Is a second Special Leave Petition maintainable when the first SLP was withdrawn without liberty to file a fresh petition?
- Does an order dismissing a review petition under Order XLVII Rule 7(1) of the CPC give rise to a right of appeal?
Legislation cited
- Code of Civil Procedure, 1908s. Order 23 Rule 1, s. Order 23 Rule 1(3), s. Order 23 Rule 1(4), s. Order XLVII Rule 7(1)
- Constitution of India
- Micro, Small and Medium Enterprises Development Act, 2006s. 9
- Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002s. 13(4), s. 2(f), s. 2(zd)
Headnote
Issue for Consideration Issue arose as regards the maintainability of the second SLP challenging the same order where the first SLP was withdrawn without leave to re-approach. Headnotes† Constitution of India – Art.136 – Maintainability of the second Special Leave Petition, when liberty – Appellant defaulted in his obligation to repay loan to the respondent-Bank – Respondent classified the loan account as ‘Non-Performing Asset’ and initiated measures u/s.13(4) of the SARFAESI Act – Appellant filed writ petition, which was disposed of by the
Subjects
Judgment
[2025] 9 S.C.R. 1255 : 2025 INSC 1140
Satheesh V.K.
v.
The Federal Bank Ltd.
(Civil Appeal No(s). 11752-11753 of 2025)
23 September 2025
[Dipankar Datta* and K.V. Viswanathan, JJ.]
Issue for Consideration
Issue arose as regards the maintainability of the second SLP
challenging the same order where the first SLP was withdrawn
without leave to re-approach.
Headnotes†
Constitution of India – Art.136 – Maintainability of the second
Special Leave Petition, when the first was withdrawn without
liberty – Appellant defaulted in his obligation to repay loan
to the respondent-Bank – Respondent classified the loan
account as ‘Non-Performing Asset’ and initiated measures
u/s.13(4) of the SARFAESI Act – Appellant filed writ petition,
which was disposed of by the High Court requiring the
appellant to pay Rs.2 crores by a stipulated date and the
remaining amount in instalments – Appellant challenged this
order in SLP before this Court and the SLP was dismissed
as withdrawn – Appellant then filed a review petition in the
High Court seeking review of the order passed by the High
Court and the same was dismissed – Consequent thereupon,
the appellant filed two civil appeals against the original High
Court order and the order dismissing the review petition –
Maintainability:
Held: It is not a permissible practice to challenge the same
order over again after withdrawing the special leave petition
without obtaining permission of the court for withdrawing it with
liberty to move for special leave again subsequently – Nature
of power exercisable by this Court u/Art.136, would apply in the
first round when a judgment and order is challenged and not
when the challenge to the same judgment and order is withdrawn
* Author
1256 [2025] 9 S.C.R.
Supreme Court Reports
in the first round and a second chance is attempted without
having obtained the permission of the Court to re-approach it –
Entertaining a special leave petition in a case of the present nature
would be contrary to public policy and can even tantamount to
sitting in appeal over the previous order of this Court which has
attained finality – Maxim interest reipublicae ut sit finis litium (it
is for the public good that there be an end to litigation) would
apply in all fours when it is found that proceedings challenging
an order were not carried forward by withdrawing the special
leave petition and the litigant has returned to the same court
after some time mounting a challenge to the self-same order
which was earlier under challenge and such challenge had
not been pursued – This is a course of action which cannot be
justified either in principle or precept – Preliminary objections to
the maintainability of the appeals upheld – Securitisation and
Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002 – s.13(4) – Code of Civil Procedure, 1908 –
Ord.XLVII r.7(1). [Paras 26, 35]
Case Law Cited
Upadhyay & Co. v. State of U.P. and Others [1998] Supp. 3 SCR
234 : (1999) 1 SCC 81 – relied on.
S. Narahari and Others v. S.R. Kumar and Others [2023] 10 SCR
1010 : (2023) 7 SCC 740 – distinguished.
N.F. Railway Vending and Catering Contractors Association
Lumding Division v. Union of India & Ors., Special Leave Petition
(C) No(s). 17501-17502/2024; Dhakeswari Cotton Mills Ltd. v.
Commissioner of Income Tax, West Bengal [1955] 1 SCR 941 : AIR
1955 SC 65; Kunhayammed and Others v. State of Kerala & Another
[2000] Supp. 1 SCR 538 : (2000) 6 SCC 359; Khoday Distilleries
Limited (Now Known as Khoday India Limited) and Others v. Sri
Mahadeshwara Sahakara Sakkare Karkhane Limited, Kollegal
(Under Liquidation) Represented by the Liquidator [2019] 3 SCR
411 : (2019) 4 SCC 376; Vasantalata Kom Vimalanand Mirjankar
Rep. by G.P.A. Holder v. Deepa Mavinkurve & Ors., Special Leave
Petition (C) Diary No. 36933/2025 – held inapplicable.
Vinod Kapoor v. State of Goa (2012) 12 SCC 383; Patel Narshi
Thakershi and Ors. v. Shri Pradyumansinghji Arjunsinghji (1971)
3 SCC 844; S. Nagaraj and Others v. State of Karnataka and
[2025] 9 S.C.R. 1257
Satheesh V.K. v. The Federal Bank Ltd.
Another [1993] Supp. 2 SCR 1 : (1993) Supp. 4 SCC 595; Lily
Thomas and Others v. Union of India & Ors. [2000] 3 SCR 1081 :
(2000) 6 SCC 224; Ramnik Vallabhdas Madhvani and Others v.
Taraben Pravinlal Madhvani [2003] Supp. 5 SCR 230 : (2004)
1 SCC 497; Union of India v. Amrit Lal Manchanda and Another
[2004] 2 SCR 422 : (2004) 3 SCC 75; M/s Pro Knits v. The Board
of Directors of Canara Bank & Ors. [2024] 8 SCR 140 : (2024)
10 SCC 292; Shri Shri Swami Samarth Construction & Finance
Solution and Another v. Board of Directors of NKGST Co-op. Bank
Ltd and Others, 2025 SCC OnLine SC 1566; Sandhya Educational
Society v. Union of India (2014) 7 SCC 701 – referred to.
List of Acts
Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002; Constitution of India;
Code of Civil Procedure, 1908.
List of Keywords
Maintainability; Second SLP; First SLP withdrawn without leave
to re-approach; Non-Performing Asset; Twelve equal monthly
instalments; Review petition; Public policy; Maxim interest
reipublicae ut sit finis litium-it is for the public good that there be
an end to litigation; Preliminary objections.
Case Arising From
CIVIL APPELLATE JURISDICTION: Civil Appeal No(s). 11752-
11753 of 2025
From the Judgment and Order dated 01.10.2024 and 05.12.2024
of the High Court of Kerala at Ernakulam in WP (C) No. 33280
and RP No. 1294 of 2024, respectively.
Appearances for Parties
Advs. for the Appellant:
M. K. S. Menon, Ms. Usha Nandini V., Shashank Menon, John
Thomas Arakal.
Advs. for the Respondent:
Aljo K. Joseph, Saket Jee, Santhosh Kumar Kolkundra, Rajesh
Kumar, Vinay Kumar Puvvala, Ms. Ankita Kutthi.
1258 [2025] 9 S.C.R.
Supreme Court Reports
Judgment / Order of the Supreme Court
Judgment
Dipankar Datta, J.
1. Appellant, Satheesh V.K., is a borrower within the meaning of section
2(f) of the Securitisation and Reconstruction of Financial Assets
and Enforcement of Security Interest Act, 20021. Undisputedly, the
appellant obtained financial assistance from the respondent-Federal
Bank, a secured creditor within the meaning of section 2(zd) of the
SARFAESI Act, by creating equitable mortgage over properties
situated in Kozhikode. However, the appellant having defaulted in
his obligation to repay the loan, the respondent classified the loan
account as ‘Non-Performing Asset’ (NPA) and initiated measures
under section 13(4) of the SARFAESI Act.
2. Aggrieved by the action taken by the respondent, the appellant invoked
the jurisdiction of the High Court of Kerala at Ernakulam under Article
226 of the Constitution by presenting a writ petition2. According to the
respondent, the total outstanding amount was Rs.7,77,41,321/-. The
order dated 1st October, 2024 passed by the High Court disposing
of the writ petition required the appellant to pay Rs.2,00,00,000/- on
or before 30th October, 2024 and the remaining amount along with
future interest in 12 (twelve) equal monthly instalments. The first
instalment was to be paid on or before 15th November, 2024 and the
remaining eleven (11) instalments were to be paid on or before 15th
day of each succeeding month. The impugned order further directed
that in case of failure to make payment of Rs.2,00,00,000/- or any of
the subsequent instalments, as directed, the respondent would be
free to proceed against the appellant under the SARFAESI Act for
realisation of the dues in accordance with law. Appellant was also
granted liberty to approach the respondent for one time settlement
after making payment of the initial sum of Rs.2,00,00,000/- on or
before 30th October, 2024.
3. The order dated 1st October, 2024 was challenged by the appellant in
a special leave petition3 before this Court. Order dated 28th November,
1 SARFAESI Act
2 Writ Petition (C) No. 33280 of 2024
3 Special Leave Petition (C) No. 28259/2024
[2025] 9 S.C.R. 1259
Satheesh V.K. v. The Federal Bank Ltd.
2024 recorded on the said special leave petition by a co-ordinate
Bench reads as follows:
ORDER
1. After arguing for some time and on our expressing reservation in
entertaining the present petition, the learned senior counsel for
the petitioner seeks permission to withdraw the present petition.
2. Permission to withdraw is granted.
3. The Special Leave Petition is dismissed as withdrawn.
4. Having been permitted to withdraw the special leave petition, the
appellant next approached the High Court with a petition4 seeking
review of the order dated 1st October, 2024. Such petition came to
be dismissed vide order dated 5th December, 2024.
5. Consequent upon such dismissal, these two civil appeals were
presented by the appellant before this Court on 12th December,
2024. The appeal5 registered prior in point of time is directed against
the order dated 1st October, 2024 of disposal of the appellant’s writ
petition, whereas the one6 subsequently registered is directed against
the dismissal of the review petition.
6. The alacrity with which the appellant moved from court to court
between 1st October, 2024 (date of disposal of his writ petition) and
12th December, 2024 (date of presenting the special leave petitions
before this Court giving rise to these appeals) without showing
semblance of an inclination to repay the dues of the respondent and
to buy time by resorting to technicalities are certainly factors which
we propose to bear in mind while deciding these appeals.
7. Mr. Aljo K. Joseph, learned counsel appearing for the respondent,
has vehemently objected to maintainability of the appeals. He has
referred to the aforesaid order dated 28th November, 2024 passed
on the appellant’s previous special leave petition and contended
that no liberty having been sought and/or granted by this Court to
present a fresh special leave petition to lay a challenge to the order
4 RP No. 1294 of 2024
5 Civil Appeal No. 11752/2025
6 Civil Appeal No. 11753/2025
1260 [2025] 9 S.C.R.
Supreme Court Reports
dated 1st October, 2024, the appellant has no right in law to approach
this Court once again after withdrawing the initial challenge. Also, in
view of Order XLVII Rule 7 (1) of the Code of Civil Procedure, 19087,
there can be no appeal against an order refusing review.
8. The objection to the maintainability of the appeal against the order
dated 1st October, 2024 was sought to be countered by Mr. Menon,
learned counsel for the appellant, by citing the decision of a co-
ordinate Bench of this Court in S. Narahari and Others v. S.R.
Kumar and Others8. It was pointed out that a reference was made for
constitution of a larger Bench to deliberate and adjudicate the issue
as to whether a second special leave petition would be maintainable
against an order which was previously challenged in a special leave
petition but the challenge had either been withdrawn or spurned. Our
attention was further drawn by Mr. Menon to orders dated 29th July,
2024 and 13th August, 2024 passed by another co-ordinate Bench
of this Court [of which one of us (Dipankar Datta) was a member]
in N.F. Railway Vending and Catering Contractors Association
Lumding Division vs. Union of India & Ors.9 where, noticing S.
Narahari (supra), the special leave petitions were adjourned till such
time the reference is decided.
9. Apart from referring to the aforesaid decisions, Mr. Menon relied on
a compilation of precedents starting from Dhakeswari Cotton Mills
Ltd. v. Commissioner of Income Tax, West Bengal10. Reliance was
placed on paragraph 8 of Dhakeswari Cotton Mills Ltd. (supra) on
the extent of powers conferred by Article 136 of the Constitution,
reading as follows:
“8. … It is not possible to define with any precision the
limitations on the exercise of the discretionary jurisdiction
vested in this Court by the constitutional provision made in
Article 136. The limitations, whatever they be, are implicit
in the nature and character of the power itself. It being an
exceptional and overriding power, naturally it has to be
exercised sparingly and with caution and only in special
and extraordinary situations. Beyond that it is not possible
7 CPC
8 (2023) 7 SCC 740
9 Special Leave Petition (C) No(s). 17501-17502/2024
10 AIR 1955 SC 65
[2025] 9 S.C.R. 1261
Satheesh V.K. v. The Federal Bank Ltd.
to fetter the exercise of this power by any set formula or
rule. All that can be said is that the Constitution having
trusted the wisdom and good sense of the Judges of this
Court in this matter, that itself is a sufficient safeguard and
guarantee that that power will only be used to advance the
cause of justice, and that its exercise will be governed by
well-established principles which govern the exercise of
overriding constitutional powers. It is, however, plain that
when the Court reaches the conclusion that a person has
been dealt with arbitrarily or that a court or tribunal within the
territory of India has not given a fair deal to a litigant, then
no technical hurdles of any kind like the finality of finding
of facts or otherwise can stand in the way of the exercise
of this power because the whole intent and purpose of this
Article is that it is the duty of this Court to see that injustice
is not perpetuated or perpetrated by decisions of courts and
tribunals because certain laws have made the decisions of
these courts or tribunals final and conclusive. …”
10. According to Mr. Menon, the power conferred by Article 136 of the
Constitution of India is an extra-ordinary power and such power must
be exercised to advance the cause of justice and not to thwart it.
11. Other decisions relied on by Mr. Menon are Patel Narshi Thakershi
and Ors. v. Shri Pradyumansinghji Arjunsinghji11, S. Nagaraj and
Others v. State of Karnataka and Another12, Lily Thomas and
Others v. Union of India & Ors.13, Kunhayammed and Others v.
State of Kerala & Another14, Ramnik Vallabhdas Madhvani
and Others v. Taraben Pravinlal Madhvani15, Union of India v.
Amrit Lal Manchanda and Another16, and Khoday Distilleries
Limited (Now Known as Khoday India Limited) and Others v. Sri
Mahadeshwara Sahakara Sakkare Karkhane Limited, Kollegal
(Under Liquidation) Represented by the Liquidator17.
11 (1971) 3 SCC 844
12 (1993) Supp. 4 SCC 595
13 (2000) 6 SCC 224
14 (2000) 6 SCC 359
15 (2004) 1 SCC 497
16 (2004) 3 SCC 75
17 (2019) 4 SCC 376
1262 [2025] 9 S.C.R.
Supreme Court Reports
12. Of these decisions, Kunhayammed (supra) and Khoday Distilleries
Limited (supra) have relevance and, therefore, we propose to
consider the same in some detail for deciding the question arising
before us at a later part of this judgment. The other decisions
not being directly related to the point under consideration are not
separately considered. Suffice to record, these decisions lay down
general principles of law, inter alia, of what is a review, that power to
review is not an inherent power and has to be statutorily conferred,
whether res judicata is applicable in a case where there is inherent
lack of jurisdiction, how to read precedents, and that law has to bend
before justice in given circumstances.
13. On merits, Mr. Menon referred to the decision in M/s Pro Knits v. The
Board of Directors of Canara Bank & Ors.18 and Shri Shri Swami
Samarth Construction & Finance Solution and Another v. Board
of Directors of NKGST Co-op. Bank Ltd and Others19 to contend
that the appellant’s company being an unit which is an MSME, it is
entitled to the benefits flowing from Notification dated 29th May, 2015
issued by the Central Government in terms of Section 9 of the Micro
Small and Medium Enterprises Development Act, 2006 and that the
respondent had acted illegally in not extending the benefit of such
notification to the appellant.
14. Since the question of examining the merits of the appellant’s claim
would arise if the objection to the maintainability were overcome,
we proceed to examine the maintainability aspect first.
15. In course of hearing, we had invited Mr. Menon’s attention to the order
of recent origin dated 1st September, 2025 of another co-ordinate
Bench in Vasantalata Kom Vimalanand Mirjankar Rep. by G.P.A.
Holder vs. Deepa Mavinkurve & Ors.20. Mr. Menon sought to
distinguish Vasantalata (supra) by referring to the opening sentence
of paragraph 7. It was submitted that this Court in Vasantalata (supra)
had dealt with a case where a special leave petition was dismissed
and not withdrawn, as in the present case; therefore, Vasantalata
(supra) has no application here.
18 (2024) 10 SCC 292
19 2025 SCC OnLine SC 1566
20 Special Leave Petition (C) Diary No. 36933/2025
[2025] 9 S.C.R. 1263
Satheesh V.K. v. The Federal Bank Ltd.
16. The question we are tasked to decide, though of frequent occurrence
now-a-days, is not res integra. It is, whether a special leave petition
(second in the series) would be maintainable against a judgment
and order which was earlier challenged before this Court but such
challenge turned out to be abortive because the special leave
petition before this Court is either (i) withdrawn unconditionally, or
(ii) dismissed on merits by a brief order not containing reasons, or
(iii) withdrawn with liberty to apply for review but without the liberty
to approach this Court once again, should the review too fail.
17. No doubt, the co-ordinate Bench in S. Narahari (supra) has referred
the issue to a larger Bench for consideration. The facts therein may
be noted now. The coordinate Bench in S. Narahari (supra) was
seized of the question as to whether, upon dismissal of a special
leave petition against the parent order as withdrawn with liberty to
file a review before the high court but without liberty to approach this
Court again against the parent order should the review fail, a fresh
special leave petition filed against both the parent order and the
review rejection order would be maintainable. The Bench pondered
whether liberty granted by this Court to approach the high court in
review automatically places the said matter in the “escalation matrix”,
and makes the remedy of a special leave petition available again.
The Bench traced the first line of cases, Vinod Kapoor v. State
of Goa21 and Sandhya Educational Society v. Union of India22
which ruled that when no liberty has been granted to approach the
Supreme Court once again, a subsequent special leave petition is
not maintainable. This was contrasted with the decision rendered
in Khoday Distilleries (supra) wherein after placing reliance on
Kunhayammed (supra), a three-Judge Bench came to the conclusion
that even after dismissal of a special leave petition, a review before
the high court is maintainable.
18. The Bench in S. Narahari (supra) while acknowledging that the
question in the matter before it was different, was of the view that the
logic employed by the larger Bench in Khoday Distilleries (supra)
caused a crack in the reasoning of the first line of cases and came
to the conclusion that Khoday Distilleries (supra) essentially ruled
21 (2012) 12 SCC 383
22 (2014) 7 SCC 701
1264 [2025] 9 S.C.R.
Supreme Court Reports
that the doctrine of merger does not apply when a special leave
petition is dismissed by way of a non-speaking order. If indeed that
be so, the Bench in S. Narahari (supra) was concerned that such
dismissal by way of a non-speaking order is not to be considered
as law declared under Article 141 of the Constitution and then the
same cannot be considered res judicata; therefore, in every such
dismissal, the remedy of filing a special leave petition would still
persist. Further, if a review is allowed to be filed after a special leave
petition is dismissed, then a fresh special leave petition cannot be
barred arbitrarily. Hence, the matter was referred to a larger Bench
to put a quietus to the issue.
19. Having noticed S. Narahari (supra), a stark dissimilarity in facts is
discernible. There, the unsuccessful petitioner at the time of dismissal
of the special leave petition as withdrawn had prayed for and was
granted leave to apply for a review. Upon the review being dismissed,
the parent order was challenged once again. Before us, there is
something very adverse to the appellant. He having sensed that the
co-ordinate Bench was not inclined to entertain the special leave
petition, did not invite an order of dismissal thereof on merits but
went away content with permission to withdraw. Neither permission
was sought to apply for review nor was any window kept open by this
Court to permit the appellant to approach it once again mounting a
challenge to the same order. This is a plain and simple case where
the law laid down in the previous century by a co-ordinate Bench
in its decision in Upadhyay & Co. v. State of U.P. and Others23
would squarely apply.
20. As noted by the co-ordinate Bench in its order dated 13th August, 2024
in N.F. Railway Vending and Catering Contractors Association
(supra), relied on by Mr. Menon, the decision in Upadhyay & Co.
(supra) was not placed for consideration of the co-ordinate Bench
in S. Narahari (supra).
21. In Upadhyay & Co. (supra), it was held thus:
“9. In the meanwhile, the petitioner challenged the order
of the Allahabad High Court dated 3-5-1996 by filing SLP
(C) No. 12673 of 1996 in this Court. But for reasons better
23 (1999) 1 SCC 81
[2025] 9 S.C.R. 1265
Satheesh V.K. v. The Federal Bank Ltd.
known to the petitioner he withdrew the SLP on 9-7-1996.
Thereafter, he filed an application before the High Court for
clarification of the order dated 3-5-1996, but the Division
Bench did not find anything to be clarified about that order
and hence dismissed the petition on 10-10-1997.
10. The present special leave petitions are filed against
the two orders of the High Court, one dated 3-5-1996 and
the other dated 10-9-1997.
11. We made a recapitulation of the events as above for
the purpose of showing that the petitioner has absolutely
no case in the present SLPs. He cannot, at any rate, now
challenge the order of the High Court dated 3-5-1996
over again having withdrawn the SLP which he filed in
challenge of the same order. It is not a permissible practice
to challenge the same order over again after withdrawing
the special leave petition without obtaining permission of
the court for withdrawing it with liberty to move for special
leave again subsequently.
12. The above principle has been incorporated as a rule
in the realm of suits. Order 23 Rule 1 of the Code of Civil
Procedure deals with withdrawal of suit or abandonment
of part of the claim. Sub-rule (3) says that the court may
in certain contingencies grant permission to withdraw from
a suit with liberty to institute a fresh suit in respect of the
subject-matter of such suit. Sub-rule (4) reads thus:
‘1. (4) Where the plaintiff—
(a) abandons any suit or part of a claim under sub-
rule (1), or
(b) withdraws from a suit or part of a claim without
the permission referred to in sub-rule (3),
he shall be liable for such costs as the court may
award and shall be precluded from instituting any
fresh suit in respect of such subject-matter or such
part of the claim.’
13. The aforesaid ban for filing a fresh suit is based on
public policy. This Court has made the said rule of public
1266 [2025] 9 S.C.R.
Supreme Court Reports
policy applicable to jurisdiction under Article 226 of the
Constitution [Sarguja Transport Service v. STAT : (1987)
1 SCC 5]. The reasoning for adopting it in writ jurisdiction
is that very often it happens, when the petitioner or his
counsel finds that the court is not likely to pass an order
admitting the writ petition after it is heard for some time,
that a request is made by the petitioner or his counsel to
permit him to withdraw it without seeking permission to
institute a fresh writ petition. A court which is unwilling to
admit the petition would not ordinarily grant liberty to file a
fresh petition while it may just agree to permit withdrawal of
the petition. When once a writ petition filed in a High Court
is withdrawn by the party concerned, he is precluded from
filing an appeal against the order passed in the writ petition
because he cannot be considered as a party aggrieved
by the order passed by the High Court. If so, he cannot
file a fresh petition for the same cause once again. The
following observations of E.S. Venkataramiah, J. (as the
learned Chief Justice then was) are to be quoted here:
‘[W]e are of the view that the principle underlying
Rule 1 of Order 23 of the Code should be extended
in the interests of administration of justice to cases
of withdrawal of writ petition also, not on the ground
of res judicata but on the ground of public policy as
explained above. It would also discourage the litigant
from indulging in bench-hunting tactics. In any event
there is no justifiable reason in such a case to permit
a petitioner to invoke the extraordinary jurisdiction of
the High Court under Article 226 of the Constitution
once again. While the withdrawal of a writ petition
filed in the High Court without permission to file a
fresh writ petition may not bar other remedies like a
suit or a petition under Article 32 of the Constitution
of India since such withdrawal does not amount to
res judicata, the remedy under Article 226 of the
Constitution of India should be deemed to have
been abandoned by the petitioner in respect of the
cause of action relied on in the writ petition when he
withdraws it without such permission.’
[2025] 9 S.C.R. 1267
Satheesh V.K. v. The Federal Bank Ltd.
14. ***
15. We have no doubt that the above rule of public policy,
for the very same reasoning, should apply to special leave
petitions filed under Article 136 of the Constitution also.
Even otherwise, the order passed by the Division Bench of
the High Court on 3-5-1998 does not warrant interference
on merits as the learned Judges of the High Court have
taken into account all the relevant facts and come to the
correct conclusion.”
(emphasis ours)
22. Upadhyay & Co. (supra), which precedes Kunhayammed (supra) in
point of time, is still the law holding the field declaring in no certain
terms that the principle flowing from Order XXIII Rule 1 of the CPC
is also applicable to special leave petitions presented before this
Court. Reading Upadhyay & Co. (supra) together with Sarguja
Transport Service (supra), which had the occasion to deal with a
subsequently filed writ petition under Article 226 of the Constitution
of India after unconditional withdrawal of the first writ petition under
the same article, the position in law seems to be this - a second
special leave petition would not be maintainable at the instance of
a party, who elects not to proceed with the challenge laid by him in
an earlier special leave petition and withdraws such petition without
obtaining leave to file a fresh special leave petition; if such party
applies for a review before the court from whose order the special
leave petition was initially carried and the review fails, then he can
neither challenge the order rejecting the review nor the order of
which review was sought.
23. That no appeal lies from an order rejecting a petition for review is
clear from the plain language of Order XLVII Rule 7(1), CPC. We need
not burden this judgment by referring to any authority on this point.
24. However, the principle underlying Order XLVII Rule 7(1), CPC may
be understood. Whenever a party aggrieved by a decree or order
seeks a review thereof based on parameters indicated in Section 114
read with Order XLVII, CPC and the application ultimately fails, the
decree or order under review does not suffer any change. It remains
intact. In such an eventuality, there is no merger of the decree or
order under review in the order of rejection of the review because
1268 [2025] 9 S.C.R.
Supreme Court Reports
such rejection does not bring about any alteration or modification of
the decree or order; rather, it results in an affirmance of the decree or
order. Since there is no question of any merger, the party aggrieved
by the rejection of the review petition has to challenge the decree
or order, as the case may be, and not the order of rejection of the
review petition. On the contrary, if the petition for review is allowed
and the suit or proceedings is placed for rehearing, Rule 7(1) permits
the party aggrieved to immediately object to the order allowing the
review or in an appeal from the decree or order finally passed or
made in the suit, i.e., after rehearing of the matter in dispute.
25. It is now time to consider the decisions relied upon by Mr. Menon.
26. The passage from the decision in Dhakeswari Cotton Mills Ltd.
(supra) referred to by Mr. Menon has no application on facts and in
the circumstances of the present case. We are inclined to the view
that the nature of power exercisable by this Court under Article 136,
as elaborately laid down there, would apply in the first round when
a judgment and order is challenged and not when the challenge to
the same judgment and order is withdrawn in the first round and a
second bite at the cherry is attempted without having obtained the
permission of the Court to re-approach it.
27. Reliance placed by Mr. Menon on the decisions in Kunhayammed
(supra) and Khoday Distilleries Limited (supra) also do not aid the
appellant’s cause for the reasons that follow.
28. In Kunhayammed (supra), the facts were these. After the special
leave petition of the State of Kerala which was directed against an
appellate judgment and order of the High Court dated 17th December,
1982 was dismissed on 18th July, 1983 by a single line order24, the
State had invoked the review jurisdiction of the High Court in January,
1982 seeking review of the said judgment and order dated 17th
December, 1982. A preliminary objection to the maintainability of the
review petition was raised before the High Court, which came to be
overruled by an order dated 14th December, 1995. The said order also
directed the review petition to be posted for hearing on merits. The
order dated 14th December, 1995 overruling the preliminary objection
was carried to this Court in a special leave petition, on which leave
24 “Special Leave Petition is dismissed on merits.”
[2025] 9 S.C.R. 1269
Satheesh V.K. v. The Federal Bank Ltd.
was granted on 16th September, 1996. By an order dated 14th March,
2000, the matter was referred to a three-Judge Bench for decision.
29. Kunhayammed (supra) is considered an authority on the doctrine of
merger. However, on the facts before the three-Judge Bench, it was
held that since the judgment and order of the High Court dated 17th
December, 1982 did not merge in the single line unreasoned order
of dismissal of the special leave petition (dated 18th July, 1983), the
petition for review was maintainable.
30. Turning to Khoday Distilleries (supra), two appeals were under
consideration. It is found that in the lead appeal, a petition for
review of the judgment and order dated 12th November, 2008 was
not entertained by the High Court of Karnataka by its order dated 9th
September, 2011 on the ground that a special leave petition against
the said judgment and order dated 12th November, 2008 stood
dismissed by a single line order25 of this Court dated 4th December,
2009. The question of law arising for decision was noted in paragraph
8, reading as follows:
“8. The question of law which needs to be determined in
the aforesaid circumstances is as to whether the review
petition is maintainable before the High Court seeking
review of a judgment against which the special leave
petition has already been dismissed by this Court.”
31. After extensively referring to and/or relying on Kunhayammed
(supra), the three-Judge Bench summed up the legal position in
paragraph 26 as under:
“26. From a cumulative reading of the various judgments,
we sum up the legal position as under:
26.1. The conclusions rendered by the three-Judge Bench
of this Court in Kunhayammed and summed up in para
44 are affirmed and reiterated.
26.2. We reiterate the conclusions relevant for these cases
as under : (Kunhayammed case, SCC p. 384)
‘(iv) An order refusing special leave to appeal may
be a non-speaking order or a speaking one. In either
25 “Delay condoned. Special leave petition is dismissed.”
1270 [2025] 9 S.C.R.
Supreme Court Reports
case it does not attract the doctrine of merger. An
order refusing special leave to appeal does not stand
substituted in place of the order under challenge.
All that it means is that the Court was not inclined
to exercise its discretion so as to allow the appeal
being filed.
(v) If the order refusing leave to appeal is a speaking
order i.e. gives reasons for refusing the grant of
leave, then the order has two implications. Firstly,
the statement of law contained in the order is a
declaration of law by the Supreme Court within the
meaning of Article 141 of the Constitution. Secondly,
other than the declaration of law, whatever is stated
in the order are the findings recorded by the Supreme
Court which would bind the parties thereto and also
the court, tribunal or authority in any proceedings
subsequent thereto by way of judicial discipline, the
Supreme Court being the Apex Court of the country.
But, this does not amount to saying that the order of
the court, tribunal or authority below has stood merged
in the order of the Supreme Court rejecting the special
leave petition or that the order of the Supreme Court
is the only order binding as res judicata in subsequent
proceedings between the parties.
(vi) Once leave to appeal has been granted and
appellate jurisdiction of the Supreme Court has been
invoked the order passed in appeal would attract the
doctrine of merger; the order may be of reversal,
modification or merely affirmation.
(vii) On an appeal having been preferred or a petition
seeking leave to appeal having been converted into
an appeal before the Supreme Court the jurisdiction
of the High Court to entertain a review petition is
lost thereafter as provided by sub-rule (1) of Order
47 Rule 1 CPC.’
26.3. Once we hold that the law laid down in Kunhayammed
is to be followed, it will not make any difference whether
[2025] 9 S.C.R. 1271
Satheesh V.K. v. The Federal Bank Ltd.
the review petition was filed before the filing of special
leave petition or was filed after the dismissal of special
leave petition. Such a situation is covered in para 37 of
Kunhayammed case6.
27. Applying the aforesaid principles, the outcome of these
appeals would be as under.
Civil appeal arising out of Special Leave Petition (Civil)
No. 490 of 2012
28. In the instant case, since special leave petition was
dismissed in limine without giving any reasons, the review
petition filed by the appellant in the High Court would be
maintainable and should have been decided on merits.
Order dated 12-11-2008 passed by the High Court is
accordingly set aside and matter is remanded back to the
High Court for deciding the review petition on merits. The
civil appeal is disposed of accordingly.”
32. In Khoday Distilleries Limited (supra), the order under appeal
was clearly in the teeth of the ratio laid down in Kunhayammed
(supra) and it was only a matter of time for such erroneous order
to be set aside.
33. Since the facts in Kunhayammed (supra) and Khoday Distilleries
Limited (supra) were different, there is evidently no consideration
of the decision in Upadhyay & Co. (supra) which clinches the issue
and assists us in drawing the conclusion we do hereunder.
34. Insofar as the order dated 13th August, 2024 passed in N.F. Railway
Vending and Catering Contractors Association Lumding Division
(supra) is concerned, the order records developments having taken
place subsequent to the order dated 29th July, 2024 which, in the
opinion of the Bench, required a further consideration. The order
dated 13th August, 2024, for such reason, recalled the earlier order
dated 29th July, 2024 and issued notice on the special leave petition
as well as on the application for stay together with interim protection.
The order dated 13th August, 2024 recalled the order dated 29th July,
2024 whereby hearing was adjourned sine die awaiting the reference
made in S. Narahari (supra). No assistance can, thus, be drawn by
the appellant from such order.
1272 [2025] 9 S.C.R.
Supreme Court Reports
35. We have no doubt that entertaining a special leave petition in a
case of the present nature would be contrary to public policy and
can even tantamount to sitting in appeal over the previous order of
this Court which has attained finality. The maxim interest reipublicae
ut sit finis litium (it is for the public good that there be an end to
litigation) would apply in all fours when it is found that proceedings
challenging an order were not carried forward by withdrawing the
special leave petition and the litigant has returned to the same
court after some time mounting a challenge to the self-same order
which was earlier under challenge and such challenge had not been
pursued. This is a course of action which cannot be justified either
in principle or precept.
36. For the foregoing reasons, the preliminary objections to the
maintainability of the appeals raised by the respondent succeed.
37. The civil appeals are, consequently, dismissed. Connected
applications, if any, stand closed.
38. If so advised, the appellant may pursue his remedy before the
appropriate forum in accordance with law.
Result of the case: Appeals dismissed.
†
Headnotes prepared by: Nidhi Jain
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