Supreme Court Allows Transfer Application in Civil Suit, Clarifying Common High Court's Jurisdiction Under CPC. Common High Court Has Power Under Section 24 CPC to Transfer Proceedings Between Civil Courts in Different States Within Its Territorial Jurisdiction, as Both Courts Are Subordinate, While Section 25 Applies Only to States with Different High Courts.

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Case Note & Summary

The dispute originated from a suit filed by the appellants in 2007 in the District Court at Dimapur, Nagaland, seeking declaration of right, title, interest, perpetual injunction, and damages. Due to alleged hostile circumstances created by private defendants, the suit was dismissed and restored multiple times, prompting the appellants to apply under section 24 of the Code of Civil Procedure, 1908 before the Gauhati High Court for transfer to the District Court at Guwahati, Assam. The Gauhati High Court, acting as the common High Court for Assam, Nagaland, Mizoram, and Arunachal Pradesh, rejected the application on 10 December 2015, relying on its prior decision in Pomi Sengupta v. Biswajit Sengupta, which in turn relied on the Supreme Court's decision in Durgesh Sharma v. Jayshree. The appellants challenged this rejection in the Supreme Court and also filed an alternative application under section 25 CPC for the same relief. The core legal issue was whether a common High Court has jurisdiction under section 24 CPC to transfer proceedings between civil courts in different States within its territorial jurisdiction, or if such inter-State transfer is exclusively reserved for the Supreme Court under section 25 CPC. The appellants contended that section 24, read with section 3 defining subordination, allows the common High Court to transfer proceedings between subordinate courts across States, emphasizing the expression 'court subordinate to it' and arguing for a harmonious construction where section 25 applies only to States with different High Courts. They cited decisions from the Gauhati High Court (Megha Jain v. Kartik Jain, which overruled Pomi Sengupta), Andhra Pradesh High Court, and Bombay High Court to support their view. The respondents, including the State of Nagaland, argued that section 25 is the sole provision for inter-State transfer and vests exclusive power in the Supreme Court, referencing Durgesh Sharma and legislative history. The Supreme Court analyzed sections 24 and 25 CPC alongside constitutional provisions (Articles 214 and 231) and principles of statutory interpretation. It held that section 24 empowers a common High Court to transfer proceedings between courts subordinate to it, even across States, as both courts fall within its territorial jurisdiction and subordination. The Court emphasized a harmonious construction, noting that section 25 applies to transfers between States with different High Courts, while section 24 covers transfers within the jurisdiction of a common High Court. This interpretation avoids inconvenience and promotes litigant convenience. Consequently, the Supreme Court set aside the Gauhati High Court's order and remitted the matter for fresh consideration of the transfer application under section 24 CPC.

Headnote

A) Civil Procedure - Transfer of Proceedings - Jurisdiction of Common High Court for Inter-State Transfer - Code of Civil Procedure, 1908, Sections 24 and 25 - Appellants sought transfer of suit from Dimapur, Nagaland to Guwahati, Assam under section 24 CPC before Gauhati High Court, which rejected application relying on precedent - Supreme Court examined whether common High Court has power for inter-State transfer under section 24 - Held that section 24 empowers common High Court to transfer proceedings between courts subordinate to it across States within its jurisdiction, as both transferor and transferee courts are subordinate, and section 25 applies only where States have different High Courts - Court emphasized harmonious construction and convenience of litigants (Paras 2-3, 6-10).

B) Constitutional Law - Common High Courts - Establishment and Jurisdiction - Constitution of India, Articles 214 and 231 - Issue involved common High Court for Assam, Nagaland, Mizoram, and Arunachal Pradesh under Article 231 - Court considered constitutional framework for common High Courts in interpreting CPC provisions - Held that common High Court's jurisdiction extends across all States it serves, supporting its power under section 24 CPC for inter-State transfers within its territorial jurisdiction (Paras 5-6).

C) Statutory Interpretation - Harmonious Construction - Consequences of Interpretation - Code of Civil Procedure, 1908, Sections 24 and 25 - Appellants argued for harmonious reading of sections 24 and 25 CPC to avoid hardship - Court applied principle that construction leading to inconvenience or absurdity should be rejected, as endorsed in D. Saibaba v Bar Council of India & Anr - Held that interpreting section 24 to allow common High Court for inter-State transfer promotes convenience and avoids friction, aligning with statutory purpose (Paras 6-7).

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Issue of Consideration

Whether a common High Court for two or more States has the power under section 24 of the Code of Civil Procedure, 1908 to transfer a suit, appeal, or other proceeding from a civil court in one State to a civil court in another State, both subordinate to it, or whether such inter-State transfer is exclusively within the jurisdiction of the Supreme Court under section 25 of the CPC.

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Final Decision

Supreme Court set aside the Gauhati High Court's order and remitted the matter for fresh consideration of the transfer application under section 24 of the Code of Civil Procedure, 1908

Law Points

  • Interpretation of sections 24 and 25 of the Code of Civil Procedure
  • 1908
  • harmonious construction of statutes
  • constitutional provisions for common High Courts
  • subordination of courts under CPC
  • principles of statutory interpretation regarding consequences of construction
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Case Details

2023 LawText (SC) (2) 6

CIVIL APPEAL NO. 1497/2023 [ARISING OUT OF SLP(C) NO. 4149/2016] WITH TRANSFER PETITION (C) NO. 307/2016

2023-02-28

Dipankar Datta

Mr. Goswami, Mr. Balgopal, Mr. Sharma

SHAH NEWAZ KHAN & ORS. 

State of Nagaland and its officers, respondents 4 and 5

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Nature of Litigation

Appeal against rejection of application for transfer of suit under section 24 of the Code of Civil Procedure, 1908

Remedy Sought

Appellants sought transfer of suit from District Court at Dimapur, Nagaland to District Court at Guwahati, Assam

Filing Reason

Alleged hostile circumstances created by private defendants made it impossible to prosecute suit at Dimapur

Previous Decisions

Gauhati High Court rejected transfer application on 10 December 2015 relying on Pomi Sengupta vs. Biswajit Sengupta, which relied on Durgesh Sharma vs. Jayshree

Issues

Whether a common High Court has power under section 24 of the Code of Civil Procedure, 1908 to transfer proceedings between civil courts in different States within its territorial jurisdiction

Submissions/Arguments

Appellants argued section 24 CPC allows common High Court to transfer between subordinate courts across States, with harmonious construction limiting section 25 to States with different High Courts Respondents argued section 25 CPC is exclusive provision for inter-State transfer, vesting power solely in Supreme Court

Ratio Decidendi

A common High Court for two or more States has the power under section 24 of the Code of Civil Procedure, 1908 to transfer a suit, appeal, or other proceeding from a civil court in one State to a civil court in another State, provided both courts are subordinate to it and within its territorial jurisdiction, as section 25 applies only to transfers between States with different High Courts.

Judgment Excerpts

Is the Supreme Court the sole repository of power in terms of section 25 of the Code of Civil Procedure to direct transfer of a suit, appeal or other proceeding from a Civil Court in one State to a Civil Court in another State? The High Court may, at any stage, direct transfer of proceedings pending before it to any court subordinate to it, or transfer proceedings pending in any court subordinate to it to itself or to any other court subordinate to it. Section 25 is the only provision in the CPC, which refers to transfer of a case from a Civil Court in one State to a Civil Court in another State.

Procedural History

Appellants instituted suit in 2007 in District Court at Dimapur, Nagaland; suit dismissed and restored multiple times; appellants applied for transfer under section 24 CPC before Gauhati High Court; application rejected on 10 December 2015; appellants appealed to Supreme Court and filed alternative application under section 25 CPC

Acts & Sections

  • Code of Civil Procedure, 1908: Sections 22, 23, 24, 25, 3
  • Constitution of India: Articles 214, 231
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