Archive for the ‘1962’ Category

SHRI DURGA PRASAD & ANOTHER Vs. THE BANARAS BANK LIMITED

Friday, December 21st, 1962

PETITIONER:
SHRI DURGA PRASAD & ANOTHER

Vs.

RESPONDENT:
THE BANARAS BANK LIMITED

DATE OF JUDGMENT:
21/12/1962

BENCH:
WANCHOO, K.N.
BENCH:
WANCHOO, K.N.
SINHA, BHUVNESHWAR P.(CJ)
GAJENDRAGADKAR, P.B.
GUPTA, K.C. DAS
SHAH, J.C.

CITATION:
1963 AIR 1322          1964 SCR  (1) 475
CITATOR INFO :
R        1971 SC 658     (6)
R        1972 SC1903     (14,16)
R        1973 SC1252     (17)

ACT:
Supreme      Court,  Appellate   jurisdiction   of-Certificate,
granted     by  High  Court,  if  Competent-’Court     immediately
below’–Meaning of-Constitution of India, Art. 133 (1).

HEADNOTE:
The  Official Liquidator of the respondent  Bank  advertised
for  sale,  the     two houses belonging to  the  Bank.   These
houses    were sold to the second appellant with the  sanction
of  the court.    The second appellant thereafter     transferred
the houses to the first appellant reciting in the deed    that
the  latter was the real owner and that the sale  deed    from
the  Official Liquidator was obtained benami for  him.     The
Official Liquidator moved the High Court at Allahabad for an
order declaring the sale null and void and for an order     re-
transferring the houses to the Bank.  A
476
single judge of the High Court held that the first appellant
being  at  the material time a member of  the  committee  of
inspection  and     he  having  suppressed     that  interest     was
precluded from buying the property of the Bank and  directed
the  first appellant to convey the houses  to  the  Official
Liquidator  of    the  Bank.  This order was  confirmed  by  a
Division  Bench of the High Court in appeal under cl. 10  of
the Letters Patent.  The High Court then certified the    case
under  Art.  133 (1) (a) of the Constitution ,or  appeal  to
this  Court.  It was urged at the hearing of the  appeal  on
behalf    of  the     Official Liquidator  that  the     appeal     was
incompetent, for the High Court had no jurisdiction to grant
the  certificate under art. 133 (1) (a) of the    Constitution
without certifying that the appeal involved some substantial
question of law.
Held,  that  under  Art. 133 (1)  of  the  Constitution     the
expression ‘Court immediately below’ has not the same conno-
tation    as  the expression ‘Court subordinate  to  the    High
Court’ and as the judgment of the Single judge was  affirmed
in  appeal,  the appeal to the Supreme Court  could  not  be
entertained with a certificate under Art. 133 (1) (a) unless
it was certified that it involves some substantial  question
of law.
Deoki  Nandan  v. -State of U. P., A. 1. R.  1959  All.     10,
reversed.
Toolsay     Persaud  Bhuckt v. Benayek Misser (1896) L.  R.  23
I.A. 102, Probhawati Kunwar v. Panmat Lodha, (1941) 45    Cal.
W. N. 1002, referred to.
Ladli  Prasad Jaiswal v. The Karnal Disttillery     Co.  [1964]
Vol. I S. C. R. 270, relied on.

JUDGMENT:
CIVIL APPELLATE JURTSDICTION: Civil Appeal No. 569 of 1960.
Appeal from the judgment and decree dated September 9, 1958,
of  the     Allahabad High Court in Special Appeal No.  214  of
1956.
Ranganadham  Chetty,  A. V. Rangam, A. Vedavalli and  M.  I.
Khowaja, for the appellants.
G.S. Pathak and G. C. Mathur, for the respondent.
477
1962.  December 21.  The judgment of the Court was delivered
by
SHAH  J.-The Banaras Bank Ltd-hereinafter called ‘the  Bank’
was  directed to be wound up by order of the Allahabad    High
Court.     A  committee of inspection was appointed  under  s.
178-A  of  the Indian Companies Act, 1913 to  act  with     the
Official Liquidator, and one of the members of the Committee
was  Durga Prasad the first appellant in this  appeal.     The
Official  Liquidator  advertised for sale two  houses  which
formed    part  of  the assets of the Bank.   Roshan  Lal     the
second    appellant made an offer to purchase the     two  houses
for  Rs. 18,000/-.  This offer was accepted by the  Official
Liquidator and with the sanction of the Court the two houses
were  sold  to    Roshan Lal on August 2,     1941.     Roshan     Lal
thereafter  transferred the houses to Durga Prasad  reciting
in  the     deed that the latter was “the real  owner”  of     the
houses    and that the sale deed from the Official  Liquidator
was obtained by him “benami’ for Durga Prasad.    On coming to
learn  about this conveyance, the Official Liquidator  moved
the  High Court of Allahabad for an order that the  sale  be
declared null and void and that Durga Prasad be called    upon
to  surrender the two houses and to retransfer the  same  to
the  Bank.   The  High Court held that    the  sale  deed     was
obtained by Durga Prasad who was the real purchaser, that he
had suppressed his interest in the purchase, and that  being
a  member of the committee for inspection, qua the  Bank  he
occupied  the position of a trustee and was on that  account
precluded  from. buying the property of the Bank.  The    High
Court accordingly directed Durga Prasad to covey the  houses
to  the     Official Liquidator of the Bank.   This  order     was
confirmed in appeal tinder cl. 10 of the Letters Patent by a
Division Bench of the High Court.  The High Court,  however,
certified the case under Art. 33 (1) of the
478
Constitution  for  appeal  to this Court.   The     High  Court
observed :
“It  is  not in dispute that the    judgment  of
this  Court involves directly or indirectly  a
claim  respecting property of a value  of     not
less  than  Rs. 20,006/- and, in view  of     the
decision of this Court in Shri Deoki Nandan v.
State of Uttar Pradesh (1), the applicants are
entitled    as of right to a  certificate  under
Article 133 (1) of the Constitution without an
additional  certificate  that the     case  gives
rise  to a substantial question of  law.     The
requisite certificate will accordingly issue.”
At  the hearing before this Court counsel for  the  Official
Liquidator submitted that the appeal is incompetent, for the
High  Court  had no jurisdiction to  grant  the     certificate
under    Art.  133  (1)    (a)  of     the  Constitution   without
certifying   that  the    appeal    involved  some     substantial
question of law.  In our view this contention must succeed.
In Deoki Nandan v. State of Uttar Pradesh the Allahabad High
Court held.
“The  words  ‘the     Court    immediately   below’
within  the meaning of cl. (1) of Art. 133  of
the  Constitution must be a court     other    than
the  High     Court.     A single judge     of  a    High
Court  is not a court subordinate to the    High
Court.
An  appeal  against an order of  an  appellate
Bench  of the High Court dismissing an  appeal
from  an order of a single judge of the  Court
on  its  original side  rejecting     a  petition
under  Art. 226 of the Constitution lies as  a
matter  of  right under Art. 133    (1)  of     the
Constitution,  if the claim is in     respect  of
property of a value in excess of Rs.  20,000/-
and it is not
(1)   A.1 R. 1959 All, 15.
479
necessary     that the case should give  rise  to
a substantial question of law.”
But the expression “court immediately below’ in Art. 133 (1)
has  not  the  same connotation     as  the  expression  ‘court
subordinate to the High Court.’ In Toolsey Persaud Bhuckt v.
Benayek     Misser     (1),  the Privy  Council  appears  to    have
expressed  the    view  that a single judge of  a     High  Court
trying an original proceeding was a court immediately  below
the  High Court hearing an appeal under the  Letters  Patent
from  his judgment and therefore an appeal under S.  696  of
the  Code of Civil Procedure Act XIV of 1882 (of  which     the
terms were in substance identical with the terms of Art. 133
(1)) could be certified for appeal to the Privy Council only
if a substantial question Of law was involved.    The judicial
Committee observed
“Their  Lordships     think that no    question  of
law, either as to construction of documents or
any other point, arises on the judgment of the
High  Court,  and that  there  are  concurrent
findings    of the two Courts below on the    oral
and  documentary, evidence submitted to  them.
That  being SO, the present appeal  cannot  be
entertained.
In Probhawati Kunwar v. Panmal Lodha (2), the High Court  of
Calcutta held that an appeal to the Privy Council cannot  be
certified  if  the  High Court confirms the  judgment  of  a
single    judge  trying  an  original  proceeding,  unless  it
involves  a substantial question of law.  In a    recent    case
Ladli  Prasad Jaisuul v. The Karnal Distillery Company    Ltd.
(3),  this Court held that a single Judge hearing  a  second
appeal under S. 100 of the Code of Civil Procedure, 1908  is
for  purposes of Art. 133 (1) the Court immediately below  a
Division  Bench of the High Court hearing an appeal  against
his  judgment under the Letters Patent.     It was observed  in
that case that
(1) (1896) L.R. 28 I.A. 102.
(2) (1941) 45 Cal, W..N. 1002.
(3) [1964] Vol, I s.C.R. 270.
480
the  expression ‘Court immediately below’ used in  Art.     133
(1)  (a) does not mean Court subordinate to the High  Court.
“A Court subordinate to the High Court is a Court subject to
the  superintendence  of  the High Court,  whereas  a  Court
immediately  below  is    the Court from    whose  decision     the
appeal    has been filed.” In that case  the  Attorney-General
appearing  for the respondents conceded that a single  judge
of  a High Court trying a suit or proceeding as a  court  of
original jurisdiction was a court immediately below the High
Court  hearing    an  appeal  from  his  decision-and  it     was
observed  in the judgment of this Court that the  concession
was properly made.
In  the     appeal before us, the judgment of  the     High  Court
affirms the judgment of the single judge and the High  Court
has  not certified that the decision appealed from  involves
any   substantial  question  of     law.    The  appeal   cannot
accordingly  be     entertained.    Counsel     for  the  appellant
requested  that in any event special leave to  appeal  under
Art. 136 of the Constitution be granted. But  we are  of
the view, having regard to all thecircumstances, that  this
is not a fit case for granting leave to appeal.
The appealis  therefore     dismissed.  There will     be  no
order as to costs.
Appeal dismissed.
481