Supreme Court Dismisses Appeal Against High Court's Remand to Executing Court in Lease Renewal Dispute — Executing Court Must Determine Whether Decree Permitted Extension Beyond 2013. The High Court's exercise of revisional jurisdiction under Section 115 CPC was upheld as the Executing Court's order disposing of execution was final and no other remedy existed.

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Case Note & Summary

The appellant, M/s Bagalkot Udyog Limited, was a lessee under the respondents pursuant to a lease deed dated 19.11.1952 for 30 years ending on 31.03.1983, with a renewal clause for another 30 years from 01.04.1983 to 31.03.2013. The appellant exercised the renewal right, but the respondents refused. The appellant filed a suit for specific performance, which was decreed on 10.06.1991, directing the respondents to execute a registered lease deed for 30 years from 01.04.1983 to 31.03.2013. In execution proceedings, the respondents were proceeded ex parte, and an Advocate Commissioner was appointed to execute the lease deed. The Executing Court, on the administrative side, prepared a draft lease deed that included a further renewal clause for another 30 years from 01.04.2013 onwards, mirroring the original 1952 lease. The lease deed was registered on 17.08.2010, and the appellant got the execution petition dismissed as satisfied on 20.08.2010. The appellant then filed a fresh suit for renewal from 01.04.2013. Upon notice, the respondents filed a writ petition under Article 227 challenging the order dated 20.08.2010, which was dismissed as not maintainable since the execution petition was disposed of. The respondents then filed a revision under Section 115 CPC before the High Court of Karnataka, Dharwad Bench. The High Court, by order dated 24.04.2019, remitted the matter back to the Executing Court to examine whether it had traversed beyond the decree. The appellant appealed to the Supreme Court. The Supreme Court considered whether the High Court was right in exercising jurisdiction under Section 115 CPC. The appellant argued that the order dated 20.08.2010 could not be challenged under Section 115 as it was not a final order, and the remedy was under Order XXI Rule 106 CPC. The respondents contended that they were not challenging the ex parte order but the Executing Court's act of granting relief beyond the decree. The Supreme Court held that the High Court was within its jurisdiction to entertain the revision because no appeal lies against an order where the Executing Court allegedly travels beyond the decree, and no party should be left remedy-less. The order disposing of the execution petition was a final order. The Court clarified that the respondents' failure to challenge the ex parte order under Order XXI Rule 106 did not estop them from raising the issue of the Executing Court exceeding its jurisdiction. The Supreme Court dismissed the appeal, leaving it to the Executing Court to decide whether the decree permitted renewal beyond 31.03.2013, uninfluenced by any observations of the High Court or the Supreme Court.

Headnote

A) Civil Procedure - Executing Court's Jurisdiction - Section 115, Code of Civil Procedure, 1908 - Revision against order of Executing Court - The High Court entertained a revision petition under Section 115 CPC against the order of the Executing Court which allegedly travelled beyond the decree by including a renewal clause for another 30 years beyond 2013. The Supreme Court held that the High Court was within its jurisdiction to entertain the revision as no appeal lies against such an order and no party can be left remedy-less. The order of the Executing Court disposing of the execution petition as satisfied was a final order, and the High Court could examine whether the Executing Court exceeded the decree. (Paras 5-7)

B) Civil Procedure - Execution of Decree - Order XXI Rule 106, Code of Civil Procedure, 1908 - Remedy against ex parte proceedings - The respondents did not challenge the ex parte order under Order XXI Rule 106 CPC, and that part of the proceedings became final. However, they were not estopped from urging that the Executing Court's order was beyond the scope of the decree. The Supreme Court clarified that the respondents' failure to challenge the ex parte order did not bar them from raising the issue of the Executing Court exceeding its jurisdiction. (Paras 5-6)

C) Civil Procedure - Final Order - Section 115, Code of Civil Procedure, 1908 - Revision against order disposing of execution petition - The Supreme Court held that the order dated 20.08.2010 disposing of the execution petition as satisfied was a final order, and the fact that setting it aside would revive the execution proceedings did not make it any less final. Therefore, the High Court could entertain a revision under Section 115 CPC against such an order. (Para 6)

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Issue of Consideration

Whether the High Court was right in exercising its jurisdiction under Section 115 of the Code of Civil Procedure, 1908 to remit the matter back to the Executing Court to decide whether the order passed by it was in accordance with the decree passed by the Civil Court.

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Final Decision

The Supreme Court dismissed the appeal, holding that the High Court was within its jurisdiction to entertain the revision under Section 115 CPC. The Court clarified that the Executing Court will decide whether the decree limited the renewal up to 31.03.2013 or permitted another extension thereafter, uninfluenced by any observations of the High Court or the Supreme Court.

Law Points

  • Section 115 CPC
  • Order XXI Rule 106 CPC
  • Executing Court cannot travel beyond decree
  • Remedy against executing court order beyond decree
  • Final order under Section 115 CPC
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Case Details

2019 LawText (SC) (9) 61

Civil Appeal No. 7593 of 2019 (Arising out of SLP(C) No. 16682 of 2019)

2019-09-24

Deepak Gupta, Aniruddha Bose

C.U. Singh, Aayush Agarwala, Ila Sheel, Pramod B. Agarwala (for appellant); S.N. Bhat, Priyank Jain, Nandish Patil (for respondents)

M/s Bagalkot Udyog Limited

Shivashankargouda & Ors.

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Nature of Litigation

Civil appeal against High Court order remitting matter to Executing Court to decide whether Executing Court exceeded decree in execution of lease renewal decree.

Remedy Sought

Appellant sought to set aside High Court order remanding matter to Executing Court; respondents sought to uphold High Court order.

Filing Reason

Appellant challenged High Court's order under Section 115 CPC remitting the matter to Executing Court to examine whether the Executing Court had travelled beyond the decree by including a further renewal clause in the lease deed executed in execution.

Previous Decisions

Trial Court decreed specific performance on 10.06.1991 for renewal of lease from 01.04.1983 to 31.03.2013. Executing Court on 20.08.2010 dismissed execution as satisfied after registering lease deed with renewal clause beyond 2013. High Court dismissed writ petition under Article 227 as not maintainable. High Court in revision under Section 115 CPC remanded matter to Executing Court.

Issues

Whether the High Court was right in exercising its jurisdiction under Section 115 CPC to remit the matter back to the Executing Court to decide whether the order passed by it was in accordance with the decree. Whether the order dated 20.08.2010 disposing of the execution petition as satisfied is a final order amenable to revision under Section 115 CPC. Whether the respondents were estopped from challenging the Executing Court's order due to not challenging the ex parte order under Order XXI Rule 106 CPC.

Submissions/Arguments

Appellant: The order dated 20.08.2010 cannot be challenged under Section 115 CPC as it is not a final order; remedy lies under Order XXI Rule 106 CPC; respondents are estopped as they did not challenge ex parte order within limitation. Respondents: They are not challenging the ex parte order but the Executing Court's act of granting relief beyond the decree; the Executing Court cannot give relief more than that granted under the decree.

Ratio Decidendi

An order of the Executing Court disposing of an execution petition as satisfied is a final order, and no appeal lies against an order where the Executing Court allegedly travels beyond the decree. Therefore, a revision under Section 115 CPC is maintainable. A party who has not challenged an ex parte order under Order XXI Rule 106 CPC is not estopped from challenging the Executing Court's order on the ground that it exceeded the decree.

Judgment Excerpts

The short issue involved in this case is whether the High Court was right in remitting the matter back to the Executing Court to decide whether the order passed by it is in accordance with decree passed by the Civil Court or not. No party can be left remedy-less. We make it clear that the Executing Court will decide the issue as to whether the decree limited the renewal of the lease deed up to 31.03.2013 or the decree permitted another extension thereafter.

Procedural History

The appellant filed a suit for specific performance of a renewal clause in a lease deed, which was decreed on 10.06.1991. In execution, the respondents were proceeded ex parte, and an Advocate Commissioner executed a lease deed on 17.08.2010 that included a further renewal clause. The appellant got the execution petition dismissed as satisfied on 20.08.2010. The appellant then filed a fresh suit for renewal from 01.04.2013. The respondents filed a writ petition under Article 227 challenging the order dated 20.08.2010, which was dismissed as not maintainable. The respondents then filed a revision under Section 115 CPC before the High Court of Karnataka, Dharwad Bench, which by order dated 24.04.2019 remitted the matter to the Executing Court. The appellant appealed to the Supreme Court by way of SLP(C) No. 16682 of 2019, which was converted into Civil Appeal No. 7593 of 2019.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 115, Order XXI Rule 106
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