Wire Netting Stores vs New India Assurance Co. Ltd. And ...
1971 Latest Caselaw 235 Del

JUDGMENT

T.V.R. Tatachari, J.

(1) This is an application filled by respondent No. I in the appsal, R.F.A.(O.S,)No. 1 of 1971, praying that the appeal be dismissed as barred by limitation.

(2) The appellant, M/s Wire Netting Store, filled a suit. No. 348 of 1967, on the original side of this Court against (1) M/s New India Assurance Co. Ltd., (2) the Union of India, and (3) the Union Bank of India Ltd. The said suit was dismissed by Parkash Narain J. on 28th July 1970. The appellant (plaintiff) filed an application on 29th July. 1970, for certified copies of the judgment and decree of the trial court. The certified copies were ready on 22nd September, 1970. The last date for filing an appeal against the said judgment and decree of the trial court was 22nd October, 1970. The appellant filed the appeal on 20th October, 1970. within time. On 20th November. 1970, the office of this court returned the papers pointing out two defects viz. (1) that the appeal memo was insufficiently stamped, and (2) that the opening sheet of the appeal should be completely filled in, and requiring the papers to be re-presented within a week, after removing the defects. The one week expired on 27th November, 1970. The appellants' counsel re-presented the appeal on 2nd December, 1970, rectifying the second defect. As regards the first defect, the learned counsel made an endorsement on the appeal memo staling that the total value of the subject matter of the appeal was Rs. 1,19,350.00 and the court fee payable thereon was Rs. 3,515.00, and requesting that "it may be indicated how and to what extent the office considers the memo of appeal to be insufficiently stamped". Thereupon, the office pointed out that the court fee was short by O.20 np. according to Schedule 1 of the Court Fees Act, and returned the appeal papers on 8th December, 1970, granting one week's time for re-presentation. It was also pointed out by the office that since the deficiency in court fee had yet to be made good, an application for condensation of delay should also be filed. The said time of one week expired on 25th December, 1970. The learned counsel for the appellant re-presented the papers on 15th January, 1971, paying the deficit court fee of O.20 Np Along with an application, C.M. No. 21 of 1971, under section 151 read with section 149 of the Code of Civil Procedure, praying that the delay in making up the deficiency may be condoned. The said miscellaneous application came up for orders before us on 18th January, 1971, and we allowed the miscellaneous application subject to just exceptions, and also admitted the regular 1st appeal. Subsequently, after the notices in the appeal were served upon the respondents, respondent No. 1 filed Civil Miscellaneous application No. 393 of 1971 on 13th May, 1971, staling that the appellant was guilty of gross negligence and there was no ground for condensation of the delay in making up the deficit court fee, and praying that the appeal be dismissed as barred by limitation.

(3) In answer to the said miscellaneous application, an affidavit of Shri Vilait Rai, Advocate, and an affidavit of Kishan Dass, a partner of the appellant firm, were filed on 26th July, 1971, on behalf of the appellant. In reply to the said affidavits, a counter statement, dated 4th August, 1971, was filed on behalf of respondent No. 1.

(4) The dates sent out above show that the appeal was filed on 20th October, 1970, within the period of limitation, but with a deficit courtfee of O.20 Np., and the deficit Court-fee was made good on 15th January 1971. The question is whether in the circumstances of the case as stated in the affidavits filed on behalf of the appellant, this Court should exercise its discretion under section 149 of the Code of Civil Procedure in favor of the appellant, and allow the said making up of the deficit Court-fee.

(5) Section 149 empowers the Court, in its discretion, to allow a party to make good the deficiency of Court-fee prescribed for any document at any stage. Section 4 of the Court fees Act lays down that no document shall be received in any proceeding unless proper Court- fee as provided in the schedules to that Act has been paid thereon. Thus, under Section 4 of the Court Fees Act, a plaint. Memorandum of Appeal etc. on which no Court-fee or insufficient Court-fee is paid, will be non est. The rigour of the section was orginally reduced by section 582-A of the Code of Civil Procedure, 1882, as regards Memorandum of Appeal and application for review of judgment, and later by section 149 of the Code of Civil Procedure, 1908, as regards every document, by empowering the Court to allow, in its discretion, a party to make up the deficiency at any stage. Sections 582-A and 149 are thus in the nature of provisos to section 4 of the Court Fees Act as observed in S. Va/id A li Vs Mahmad, .

(6) Section 582-A of the Code of 1882 was as follows :-    "IFa memorandum of appeal or application for a review of judgment has been presented within the proper period of limitation, but is written upon paper insufficiently stamped and the insufficiency of the stamp was caused by a mistake on the part or the appellant or applicant as tothe  arnaunt of the requisite stamps, the memorandum of appeal or application shall have the same effect and be as valid as if it has been properly stamped : Provided that such appeal or application shall be rejected unless the applelant or applicant supplies the requisite stamp within a reasonable time after the discovery of the mistake, to be fixed by the Court."  

(7) Section 149 of the Code of 1908 runs as follows :-    "WHEREthe whole or any part of any fee prescribed for any document by the law for the time being in force relating to Court- fees has not been paid, the Court may, in its discretion, at any stage, allow the person, by whom such fee is payable, to pay the whole or part, as the case may be, of such Court-fee: and upon such payment the document, in respect of which such fee is payable shall have the same force and effect as if such fee had been paid in the first instance."  

(8) It has to be noted that while section 582-A applied only to memorandum of appeal and application for review, section 149 is general in terms and applies to all documents on which Court-fees are payable. Also, the provision is not limited to a case of the insufficiency having been caused by a mistake, and the power of the Court has been considerably enlarged. As held by the Privy Council in Faizullah Khan Vs Mauladad Khan, Air 1929 P.C. 147, 148, (2)the Court has a discretion to allow the deficiency in Court-fee to be made good even where such deficiency is not due to a mistake, and the discretion of the Court under section 149 may be exercised after the period of limitation has expired and when so exercised, the appeal will then stand good as from the date when it was filed. Further, in Ganesh Prasad Vs Narendra Nath , the Supreme Court explained the scope of the power of the Court under section 149 as follows :-    "THEpower of the High Court to allow an amendment under S. 149, Civil Procedure Code, is clearly one under which the plea of the bar of limitation may be ignored. There are decisions of very high authority taking that view. The contention therefore that by allowing the amendment the High Court took away the present appellants' valuable right to plead the bar of limitation cannot be accepted. It was a matter of discretion for the High Court and the materials put before us indicate no reason to hold that the dis- cretion was exercised so as to violate any recognised principles' of law or that by granting leave to amend any gross injustice has been done. As pointed out by the High Court, the payment of court-fees is a matter primarily between the Government and the present respondents and that was the whole fight in respect of this contention "  

(9) Thus, the exercise of the power under section 149 is entirely in the discretion of the Court which, of course, has to be exercised in ajudicial manner on the facts and circumstances of the case before it.  

(10) Shri S.C. Singh. learned counsel for respondent No. 1, drew our attention to the following decisions. In view of the principles enunciated by the Privy Council and the Supreme Court in the decisions mentioned above, it is sufficient to notice briefly the decisions cited by the learned counsel which, it will be seen, do not lay down any different principles.  

(11) In Brijbhukhan, Tota Ram Sulaiman, Ag.C.J., referred to the prectice of some junior vakils to file appeals with insufficient court-fee stamps, knowing that they are insufficient, with a view to save limiation, and observed that such deliberate attemp- ts to get round the provisions of the Court-fees Act should not be toleated, and that if a litigant has not got sufficient money ready lo pay the whole court-fees, the appeal ought to be filed when such court-fees have been made good, accompanied with an application for extension of time, but the filing of an insufficiently stamped appeal, knowing it to be defective, should not be permitted. The learned Ag.hief Justice also noticed that the Bombay High Court held in Achut Ramchandra Pai Vs Nagappa (1913) 2nd 38 Bombay 41 (5), that an appellate court is bound to accept an insufficiently stamped memorandum of appeal and to grant time to make it good, and pointed out that the said view was not followed by the High Courts of Patna, Lahore and Madras. Finally, the learned Ag. Chief Justice held that section 149, Civil Procedure Code. no doubt gives a court power to allow deficiency to be made good in its discretion, but the concession cannot be claimed as of right, and that the High Court has full power to refuse to accept a memorandum of appeal when the court-fee paid is insufficient, as otherwise the provisions of section 4 of the Court- fees Act would be evaded indirectly. It has to be noted that after holding as stated above, the learned Ag. Chief Justice directed the appeal papers to be returned to the counsel, with liberty to file them afresh on payment of the court-fees, accompanied by an application for extention of time under section 5 of the limitation Act, provided good cause is shown for the extension, ft is, however, not clear from the judgment how section 5 of the limitation Act is attracted in the matter of exercise of discretion by the court under section 149 of the Code of Civil Procedure.

(12) In S. Wajid Ah Vs Mt. Isar Bano , a Full Bench of the High Court of Allahabad held that (1) the provisions of section 4 of the Court-fees Act do not over-ride the provisions of section 149, Civil Procedure Code, so far as the power of the High Court to extend time for making good the deficiency in court-fee is concerned: and (2) that poverty or inability to pay full court-fee at the time of filing an appeal can be regarded as a sufficient ground or the exercise of the discretion of the court in special circumstances but not otherwise.

(13) In Karora Singh Vs KartarSingh (AIR 1951 Simla 170)(7) the, appeal was filed after the expiry of the prescribed period of limitation, and the question for determination was as to whether the delay in filing the appeal could be condoned under section 5 of the Limitation Act. No question of exercise of discretion under section 149 of the Code of Civil Procedure arose in that case. Similarly, in Punjab State Vs Gopal Singh (AIR 1964 Supreme Court 154)(8), the appeal was filed after the expiry of the period of limitation, and the only question was of condensation of delay under section 5 of the Limitation Act.

(14) In Jnanadasundari Satha Vs Madhabchandra , a Division Bench of the High Court of Calcutta held that the- provisions of section 149 of the Code of Civil Procedure are intended lo apply to cases of bona fide mistakes in valuation and not to cases where a party consciously and intentionally puts insufficient court- fee on a document in an attempt to avoid the law of limitation, and that where the memorandum of appeal is deliberately insufficiently stamped to avoid limitation, it should in such cases be returned at once to the party presenting it.

(15) In Md. Yunus Vs Sugra Begum (AIR 1955 Hyderabad 156)10, it was held by a Division Bench that where court-fee is paid subsequent to the date fixed by the court for making up the deficit court-fee, the court would treat it as a fresh plaint.

(16) Jagannath Vs Ram Dularey it was held by a Division Bench that when an insufficiently stamped memorandum of appeal is presented before a court, the court has jurisdiction under section 149. Code of Civil Procedure, to grant time for making good the deficiency in court-fee, that the discretion vested in the court has, in the very nature of things, to be exercised ex parte, that the discretion must, however, be exercised in a reasonable manner, and that if it errs, its discretion cannot be questioned at a subsequent stage of the case after the deficiency has been made good in compliance with the order of the court unless at the time of making the order the court expressly reserved to the opposite party the right to object to the order. The learned Judges added that however, that may be, if the opposite party desires to be heard in the matter, he must raise the objection at the earliest possible opportunity, that the opportunity comes to him when the notice of the appeal is served upon him, and it must be at that time, after the inspection of the record, that he must raise the objection, and that if he does not raise the objection at the earliest opportunity, he cannot be allowed to raise it later on.

(17) Thus, the above decisions cited by the learned counsel do not lay down any principle which is different from the principles laid down in the decisions of the Privy Council and the Supreme Court referred' to earlier.

(18) In this connection, we may also refer to the decisions cited by Shri Rameshwar Dial, learned counsel for the appellant. In Jagat Ram Vs Misar Kharaiti Ram (AIR 1938 Lahore 361)(l2), a Full Bench of the High Court of Lahore held that the discretion conferred on the court by section 149 is normally expected to be exercised in favor of the litigant except in cases of contumacy or positive mala fide or reasons of a similar kind that the question of hona fides in this connection should be construed in the sense the word is used in the General Clauses Act and not as used in the Limitation Act, and that a thing should be presumed to be done bona fide, if it is done honestly whether it is done negligently or not for the purposes of judging whether the discretion under section 149 should or should not be exercised in favor of the litigant.

(19) In State of Punjab Vs Nand Kishore , a Division Bench of the" High Court of Punjab (I.D. Dua and R.S. Narula JJ) held that "applications under section 5 of the Limitation Act for extending the period of limitation for filing an appeal where an appellant is prevented by sufficient cause from so doing within time are treated entirely on a different footing than applications under section 149 of the Civil Procedure Code", and that "whereas each day's delay in filing an appeal beyond the period of limitation has to be explained by an appellant in cases covered by section 5 of the Limitation Act to show that the appellant was prevented by sufficient cause from filing the appeal on each of those days, no such consideration arises in applications under section 149 of the Code".

(20) The learned Judges further observed that "section 149 of the Code carves out an exception to the general rule contained in sections 4 and 6 of the Court Fees Act by giving to the Court concerned a power to permit a litigant to pay the requisite fee at any stage of the proceeding after the deficiently stamped document has been filed therein and by further providing that on deficiency being so made up within the time allowed by the court, the subsequent payment of the deficit court-fees would have the same effect as if proper and full court-fees had been paid in the first instance. If discretion under section 149 of the Code of Civil Procedure is exercised by the court a petition of appeal on which insufficient court-fee has been paid, would not become barred by time if it was within time when originally instituted provided full fee leviable on it is paid with the leave of the court even after the expiry of the period of limitation. An order under this section can be passed by the court suo motu in the peculiar circumstances of any case even without a formal application being made for the purpose".

(21) In Custodian of Evacuee Property Vs Rameshwar Dayal , I.D. Dua C.J.(ashis Lordship then was) following the Full Bench decision in Jagat Rani' s(12) case (supra), held that the discretion conferred on the court by section 149 is normally expected to be exercised in favor of the litigant except in cases of contumacy or positive mala fides or reasons of similar kind, that the court should consider the question of bona fides as defined in the General Clauses Act and not in the Limitation Act, and that a thing should be presumed lo be done bona fide if it is done honestly, whether it is done negligently or not. The learned Chief Justice further held that when the deficient court-fee stamp was actually attached with the application under section 149, it would be a more appropriate and more satisfactory exericse ofjidicial discretion to allow the deficiency to be made good so that the controversy was heard on the merits rather than to throw out the appeal on the ground of delay in paying deficit court-fee.

(22) In Union of India Vs RoshanLal (1968 Dlt 22)(15), a Division Bench (I.D. Dua C.J. and T.V.R. Tatachari J.), held that the principle under lying section 149 of the Code of Civil Procedure suggests that the question of court-fee is a question between the Revenue and the litigant and. therefore, the court has a discretion, albeit judicial discretion, lo allow the payment of the deficit court-fee keeping all the relevant facts in view.

(23) In the present case. as already stated, the appeal was filed within time on 20th October, 1970. When the office of this Court returned the papers on 20th November, 1970, it was merely stated in the endorsement by the office that the appeal was insufficiently stamped, and it was not stated clearly how much the deficiency in the court-fee was. The counsel for the appellant re-presented the papers on 2nd December, 1970, with the request that the deficiency in the court-fee may be indicated. There upon, the office returned the papers on 8th December, 1970, staling that the deficiency in the court-fee was Rs. 0.20 paise. The counsel re-presented the papers making good the deficiency on 15th January. 1971, along with an application. No. CM. 24 of 1971. under sections 149 and 151 of the Code of Civil Procedure praying for condensation of the delay in making up the deficiency. An affidavit of Krishan Dass, a partner of the appellant-firm, was filed in support of the said application. It was stated in that affidavit that the payment of the deficit court-fee was by an inadvertent mistake in looking at the Schedule in the Court-Fees Act. The value of the subject matter of the appeal, as stated in the memorandum of appeal, was Rs. 1,20,000.00. The court-fee payable thereon, according to the Schedule in the Court Fees Act, is Rs. 3,515.20 paise. A court-fee of Rs.3,515.00 was paidat the time of the filing of the memorandum of appeal omitting to paycourt-fee of Rs. 0.20 paise. In the application, C.M. No. 393 of 1971, filed by respondent No.I,, it was stated firstly that no explanation for not paying court- fee of Rs. 0.20 paise in the first instance was given by the appellant. This allegation was not correct. As already stated, it was explained in the affidavit filed in support of the application, C.M. No. 21 of 1971, that the non-apyment of the court-fee of Rs. 0.20 paise was due to an inadvertent mistake in looking at the Schedule in the Court Fees Act.

(24) It was next stated in the application, C.M. No. 393 of 1971, that there was no explanation in C.M. No. 21 of 1971 for non-payment of the said deficit court-fee when the papers were re-presented on 2nd December, 1970. It is true that no explanation was specifically given in the application. C.M. No. 21 of 1971. But, it is clear from the endorsement made by the counsel for the appellant at the time of the re-presentation of the papers on 2nd December, 1970, that the connsel was not able to know exactly from the return of the office as to how much the deficiency in the court-fee was. Apparently, as the return of the office did not clearly state the actual deficiency in the courtfee, the learned counsel for the appellant required the office to intimate by how much the court-fee paid was deficient. Shri S.C. Singh, learned counsel for respondent No. 1, suggested that the deficiency in the court- fee could have been easily found out by the coausel for the appellant by looking at the Schedule, and that there was gross negligence in not doing so. We do not think so. The return of the office was vague as it was merely stated that "the appeal is insufficiently stamped". The said words did not contain any indication that the insufficiency was in respect of the quantum of the court-fee, and the counsel cannot, therefore, be said to have been at fault in not referring to the Schedule in the Court Fees Act and verifying the quantum of the court-fee payable. The counsel could not. obviously, know what exacty the office meant and, naturally, enquired from the office as to how much the deficiency was. We are unable to find any gross negligence on the part of the counsel for the appellant, as suggested by Shri S.C. Singh.

(25) It was next stated in the application, C.M. No. 393 of 1971. that even though the papers were returned on 8th December, 1970, men- toning the actual deficiency in the court-fee, they were re-presented only on l5th January, 1971,and that there was no explanation why the deficiency could not be made good and the papers were not represented immediately after the return. As regards the said period, it was stated in the affidavit of Shri Vilait Rai, dated 26th July. 1971, and filed on behalf of the appellant, that he is an advocate and has been working in the office of Shri Rameshwar Dial, learned counsel for the appellant, and that he has been in charge of the legal work of the office of Shri Rameshwar Dial. It was further stated in the said affidavit that he collected the memorandum of appeal from the High Court office on or about 12th December. 1970, and telephoned to Shri Kishan Dass about the matter, and that Kishan Dass replied that he would be coming in a couple of days. According to the affidavit, Vilait Rai placed the papers relating to the present appeal in a steel almirah in which all the records of cases in the office are kept, and when Kishan Dass came to the office Vilait Rai went up to the almirah lo lake out the papers relating to the present appeal, but could not find them in the almirah. It is averred in the affidavit that the papers appeared to have been mis-laid or got mixed up with other papers, and Vilait Rai told Kishan Dass that he would be called again when the papers are found. It is further averred in the affidavit that Vilait Rai aswell as their clerk tried to trace the papers on more than one occasion thereafter, but without any success, that on 14th January, 1971, while the clerk was looking for and taking out some papers he came across the papers relating to the present appeal and informed Vilait Rai about it, that Vilait Rai thereupon asked Kishan Dass to come to the High Court on the next day, i.e.. 15th January, 1971, to give the necessary affidavit, that he gave the file of papers to Shri Rameshwar Dial on the same evening, that two part-time stenographers had been engaged in their office and they attend office in the morning time, that Shri Rameshwar Dial dictated the necessary application and affidavit and got the same typed in the morning of 15th January, 1971, and that the appeal papers were .re-presented in the High Court on the same day. Shri S.C.Singh argued that when the papers were not found on 12th December, 1970, a more conscientious effort should have been made to find the papers, that nothing seems to have been done till 14th January, 1971, and that the appellant as well as his counsel were grossly negligent. The criticism of Shri Singh does not appear lo bejustified. It is stated in the taffidavit of Shri Vilait Rai that he aswell as the clerk tried to trace the papers on more than one occasion after 12th December, 1970, but could not find them. We find no reason for not accepting the said averment as well as the other averments in the affidavit of Shri Vilait Rai, as there is nothing unbelievable about them.

(26) It has to be noted that a large sum of Rs. 3,515.00 was act ually paid as court-fee, and the non-payment of Rs. 0.20 paise must have been due to an inadvertant mistake in noting the court-fee from the schedule in the Court Fees Act. We are satisfied that the appellant or his counsel was not gailty of any gross negligence in making good the deficiency and re-presenting the appeal papers.

(27) Shri S.C. Singh also contended that the deficit court-fee was made good after the expiry of the period of limitation, that a valuable right has, therefore, accrued to the respondents, and that the appellant should have, therefore, filed an application under section 5 of the Limitation Act and shown sufficient cause for condensation of delay under the said section. There is no force in this contention. The appeal was filed within the period of limitation, and the only question is as to whether this court should allow the deficit Court-fee to be made good under section 149 of the Code of Civil Procedure. As pointedout by the Supreme Court in Ganesh Pershad's case (3) (supra), in a matter under section 149, the plea of bar of limitation has to be ignored and a contention that by allowing the deficit court-fee to be made good a valuable right of the respondents to plead the bar of limitation will be taken away, cannot be accepted. Further, as pointed out in the decision in State of Punjab Vs Nand Kishore (13) (supra), the question of filing an application under section 5 of the Limitation Act docs not arise, and an application, like the present one under section 149 of the Code of Civil Procedure has to be treated entirely on a fooling different from an application under section 5 of the Limitation Act.

(28) It may also be pointed out that it has been held in Lala Mata Din Vs. A. Narayanan that even in an application under section 5 of the Limitation Act, mistake of counsel would be sufficient ground for condoning delay if the mistake was bona fide and not merely a device to cover an ulterior purpose such as laches on the part of the litigant or an attempt to save limitation in an underhand way. When that is the legal position under section 5 of the Limitation Act, it cannot be more stringent in the case of exercise of discretion under section 149 of the Code of Civil Procedure. In the present case. the counsel for the appellant cannot be said to have attempted to avoid the law of limitation. On the other hand, he followed it and filed the appeal within time. The fact that he paid court-fee of Rs. 3,515.00 shows that his omission to pay further court-fee of Rs. 0.20 paisa must have been due to an inadvertent mistake in noting the court-fee mentioned in the Schedule to the Court Fees Act. Tn the circumstances, the mistake of the counsel cannot but be held to be a bona fide one. Also, on the facts of the case, it cannot be said that there were any laches on the part of the appellant. Thus, even if considerations applicable in the determination of existence of sufficient cause under section 5 of the Limitation Act are applicable to an application under section 149 of the Code of Civil Procedure (We have already pointed out they are not), the said considerations are fully satisfied in the present case.

(29) For the foregoing reasons, the application, C.M. No. 393 of 1971, is rejected. In the circumstances of the case, we make no order as to costs.