Citation : 2011 Latest Caselaw 5139 Del
Judgement Date : 19 October, 2011
* IN THE HIGH COURT OF DELHI AT NEW DELHI
Reserved on : 27.09.2011
% Date of decision : 19.10.2011
+ EFA (OS) No.27/2010
J.N.UPPAL ... ... ... ...APPELLANT
Through : Mr.Suchinto Chatterji, Advocate.
-VERSUS-
DR.HARISH UPPAL & ORS. .. ... ... RESPONDENTS
Through : Respondent No.1 in person.
None for Respondent Nos.2 to 5.
CORAM:
HON'BLE MR. JUSTICE SANJAY KISHAN KAUL
HON'BLE MS. JUSTICE RAJIV SHAKDHER
Whether the Reporters of local papers
may be allowed to see the judgment? NO
To be referred to Reporter or not? NO
Whether the judgment should be NO
reported in the Digest?
SANJAY KISHAN KAUL, J.
1. The propensity of real brothers to fight over trifle
amounts, keeping in mind the value of the properties
in question, has given rise to this first appeal arising
from an order dated 10.09.2010 in execution
proceedings.
2. The parties to the present appeal are progenies of
late Dr.D.R.Uppal and Late Smt. Padmavati. A suit
No.146/1994 was filed by R-2, daughter, seeking
partition of two properties namely 20, Todarmal
Road, New Delhi - 110 001 and 9A/50, WEA, Karol
Bagh, New Delhi - 110005.
3. The appellant, the son, also filed a Suit No.528/1994
for partition of the properties, stated to be acquired
and purchased by R-1, R-2 and R-5 (son of the pre-
deceased daughter) at Delhi, Jaipur and Shimla out
of the income accruing from the aforesaid properties.
It is the claim of the appellant that a memorandum
of family settlement in the hand writing of R-1 was
signed on 29.03.1989 recording the factum of an oral
partition of the two ancestral properties. That
information being conveyed to income tax
authorities, the appellant shifted in a portion of the
property located at 20, Todarmal Road, New Delhi -
110 001 in September, 1990. R-1 is also stated to
have filed a suit no.12/1994 against the appellant in
the court of Sub Judge for permanent injunction,
restraining the appellant from selling his portion of
the property at 20, Todarmal Road, New Delhi - 110
001. The earlier partition was, however, challenged
by R-2 in a suit. R-1 is stated to have withdrawn his
suit filed before the Sub Judge. The two suits filed in
the High Court were consolidated.
4. It appears that better sense prevailed over the
parties and to resolve the disputes, the matter was
referred to the arbitration of one Mr.A.P.Malik,
husband of one of the sisters of the parties and an
award is stated to have been passed by the
arbitrator on 25.11.2001. One of the stipulations in
the award was for R-1 to pay amount of Rs. 14 lakhs
to the appellant as per a procedure laid down in a
note dated 07.10.2001. This amount was deposited
by R-1 with sole arbitrator on 03.12.2001.
5. The appellant filed an application for withdrawal of
Suit No.528/1994 on 11.12.2001 to facilitate release
of money as the note dated 07.10.2001 envisaged
the handing over the money to the appellant on the
appellant informing the Delhi High Court suitably to
withdraw Suit No.528/1994. It may also be noticed
that the sole arbitrator vide letter dated 04.12.2001
had informed the appellant to proceed in the matter
by withdrawing Suit No.528/1994 by making an
appropriate application and "thereafter you may
collect the money from the undersigned."
6. R-1 was, however, aggrieved by certain averments
made in the application for withdrawal and filed a
reply. This resulted in a rejoinder being filed by the
appellant disputing the averments made in the reply
and a prayer being made by the appellant that he
may be permitted to withdraw IA No.11644/2001
filed on 11.12.2001 for withdrawal of Suit
No.528/1994. It may be noticed that the suits in the
meantime came to be transferred to the District
Courts and Suit No.528/1994 with its new number
was listed before the learned ADJ on 15.05.2004 for
arguments on preliminary issue framed on
27.03.2004 when the statements of parties were
recorded in terms whereof the suit was dismissed as
withdrawn. The order, however, simultaneously
observed that the existence or validity of any
arbitration award between the parties can be looked
into in a separate case which was filed by the
plaintiff therein for executing the alleged award
bearing Execution Case No.12/2004. (transferred to
the High Court and numbered as Execution Petition
No.74/2005)
7. Various proceedings inter se the parties have been
withdrawn since then albeit belatedly and the
matter compromised, but the execution petitions
were pending before the learned Single Judge on the
original side. One of the issues cropped up was the
claim of the appellant that on account of delay in
release of the sum of Rs.14 lakhs to him by R-1 (in
view of the inter se dispute the arbitrator had, in the
mean time on 21.08.2002, returned back the money
to R-1), the appellant is entitled to interest at the
rate of 18 per cent per annum. The various
objections of the parties in the execution petitions
were dealt with and all the matters were disposed of
vide an order dated 02.05.2008. One of the matters
discussed in the order dated 02.05.2008 was
Execution Petition No.74/2005 where the appellant
had prayed for payment of Rs.14 lakhs along with
interest at the rate of 18 per cent per annum. This
amount had been deposited by R-1 in court during
the proceedings which was permitted to be
withdrawn by the appellant. The claim of interest has
been discussed by the learned Single Judge in the
following terms:
" Insofar as the question of payment of interest is concerned, in view of my discussion above, I am of the opinion that fault lies with both the parties and some equitable solution is to be found out. Dr. Harish Uppal had deposited this amount with Mr.A.P.Malik immediately after the award, i.e. on 03.12.2001. Had Mr.J.N.Uppal withdrawn his suit immediately, he would have got this amount from Mr.Malik. Therefore, Mr.J.N.Uppal would not be entitled to any interest for the period this money remained with Mr.Malik.
Dr.Harish Uppal, however, was given back this money by Mr.Malik on 21.08.2002. Thereafter this money remained with Dr.Harish Uppal till he deposited the same in the Court. Therefore, I am of the opinion that Dr. Harish Uppal should pay interest to Mr.J.N.Uppal for this period @ 6% p.a. Actual interest shall be calculated and paid to Mr.J.N.Uppal within two months from today. On payment of this
amount, this execution shall stand fully satisfied.
This execution is, thus, disposed of with liberty to Mr.J.N.Uppal to seek revival in case the amount, as aforesaid, is not paid to Dr.Harish Uppal."
8. The effect of the aforesaid is that the appellant has
been held dis-entitled to interest for the initial period
when the suit had not been withdrawn but the fact
that R-1 was returned back the money by the sole
arbitrator and enjoyed the same till deposit of the
same with the Court was a factor which was taken
into account while awarding 6 per cent per annum
simple interest for that period.
9. R-1 vide a letter dated 23.06.2008 sought to tender
the amount in pursuance to the order dated
02.05.2008. R-1 stated in the letter that as per the
note dated 07.10.2001, the amount was liable to be
handed over to the appellant by the sole arbitrator
Sh.A.P.Malik after Suit No.528/1994 was withdrawn.
The suit was withdrawn only on 15.05.2004 and thus
R-1 stated in the letter that the appellant was not
entitled to receive the award amount before
15.05.2004. The interest at the rate of 6 per cent
per annum was thus payable only from 15.05.2004
to 10.05.2007 i.e. for a period of about 3 years. The
pay order dated 10.05.2007 for Rs.14 lakhs had
already been deposited in the court and a banker's
cheque towards the interest element for 3 years at
the rate of 6% per annum on the sum of Rs.14 lakhs
amounting to Rs.2,52,000/- was enclosed with the
letter. Thus, R-1 refused to pay interest from
21.08.2002 to 15.05.2004 which at the rate of
6% per annum on Rs.14 lakhs amounted to
Rs.1,44,000/-.
10. The appellant continued to remain aggrieved
about non-payment of this Rs.1,44,000/- and thus
filed EA No.354/2009 qua this amount to revive the
execution petition in view of the leave granted vide
order dated 02.05.2008. The application has,
however, been dismissed vide impugned order dated
10.09.2010. It is this order which is sought to be
assailed in the present appeal by the appellant.
11. A perusal of the impugned order shows that
the learned Single Judge recorded the history of the
case and also took note of the order passed on
02.05.2008 on account of non-payment of amount of
Rs.1,44,000/-. R-1 opposed this application and
pointed out that the decree holder had carried the
matter in appeal in EFA(OS) No.1/2009 which was
rejected on 30.03.2009 and thereafter the Supreme
Court dismissed the SLP No.5510/2010 on
16.08.2010.
12. Thus, the undisputed position which is
apparent is that the order dated 02.05.2008 has
become binding on the parties. R-1 pleaded that he
had complied with the order of the arbitrator and
deposited the amounts as directed within time. The
conduct of the appellant in seeking to challenge the
award was called into question but despite recording
all these facts, the order dated 02.05.2008 had
directed payment of interest at the rate of 6 % per
annum from 2002 onwards. Even that part of the
order stood complied with post the withdrawal of the
suit on 15.05.2004.
13. The learned Single Judge thereafter took into
consideration the note dated 07.10.2001 prescribing
the mode of deposit and release of the amount in
favour of the appellant. The amount was deposited
by R-1, but since suit was not withdrawn (the
application filed for withdrawal having been
contested and the appellant seeking to withdraw the
same), the amount was taken back by R-1 which had
been deposited with the sole arbitrator, on the
ground that the appellant had not complied with the
terms.
14. Learned Single Judge has taken a view that the
exact procedure agreed to by the parties for the
withdrawal of sum of Rs.14 lakhs was not brought to
the notice of the Court while passing the order dated
02.05.2008 and thus having regard to the facts of
the case even though the order dated 02.05.2008
directed payment of interest from 21.08.2002, it was
held that the appellant could not legitimately claim
the sum at least till 15.05.2004 and thus no further
grievance can be raised qua the non-payment of
Rs.1,44,000/-.
15. The sole plea advanced before us revolved
around the effect of the order dated 02.05.2008
which undisputedly required R-1 to pay the amount
to the appellant along with interest for certain period
and that period included the period in question on
the basis of which the amount of Rs.1,44,000/- has
been quantified. It was the plea of the learned
counsel for the appellant that the impugned order
dated 10.09.2010 amounted to going behind and
reviewing the order dated 02.05.2008 as there was
no doubt about the interpretation or effect of the
order dated 02.05.2008 which had received the
imprimatur even of the Supreme Court. The order,
thus, became final and binding between the parties.
However, the plea of R-1, appearing in person, was
that the order dated 02.05.2008 amounted to a
direction de hors the award qua the issue of interest
and, in fact, went behind the award which had been
binding inter se the parties, which was not
permissible. It was thus submitted that even if the
order dated 02.05.2008 had attained finality, the
direction qua payment of interest was without
jurisdiction and R-1 could not be compelled to pay
the amount.
16. On examination of the controversy in question,
we find that there can be no doubt about the fact
that the award is binding inter se the parties as
directed by the arbitrator. The Executing Court
cannot not go beyond the decree. The facts in this
case were, however, peculiar on account of the
nature and conduct of parties and the learned Single
Judge while passing the order dated 02.05.2008
recorded the complete historical aspect of the
dispute and finally came to the conclusion that R-1
should pay interest to the appellant at 6% per
annum for a specified period within two months of
the date of the order. It is not in dispute that R-1 did
pay interest in compliance of that order albeit for a
shorter period. R-1 took upon himself the authority
to decide as to for which period he would pay
interest and for which period he would not pay
interest. He, thus, decided not to pay interest for the
period prior to date of withdrawal of the suit
i.e.15.05.2004, which has been upheld by the
learned Single Judge.
17. We are of the view that if the principle that an
Executing Court cannot go behind a decree is well
accepted, it can also not be disputed that once the
order is passed by the Executing Court and is not
challenged by the parties or is confirmed by the
appellate court and even by the Supreme Court, the
matter cannot be looked into again as that would
imply that there can be no end to a lis inter se the
parties. While objection to jurisdiction can be raised
at any stage and even in collateral proceedings but it
is, in manner of speaking, a bullet which can be fired
once. Being spent cannot be utilized once again;
since one of the principal attributes of litigation is
finality. Once the order dated 02.05.2008 became
final, it became final in all aspects which inter alia
included the amount on which interest was to be
paid, the rate of interest and the period for which
interest had to be paid. There cannot be partial
compliance of the order. Learned Single Judge had
specifically granted liberty to the appellant to seek
revival in case the amount was not paid by R-1 as
directed in the order. It cannot be disputed that R-1
has not paid the amount as directed since interest
for certain period has not been paid which amounts
to Rs.1,44,000/- calculated on the sum of Rs.14 lakhs
at the rate of 6% per annum from 21.08.2002 to
15.05.2004.
18. We are of the considered view that the learned
Single Judge vide the impugned order dated
10.09.2010 could not have gone behind or reviewed
the order passed by the coordinate Bench presided
by a learned Single Judge who was then dealing with
the execution case while passing the order dated
02.05.2008. It cannot be said that certain aspects
were not brought to the notice of the Executing
Court while passing the order dated 02.05.2008
(which stands confirmed in appeal and by the
Supreme Court) and thus there has to be re-
examination of the controversy qua the period for
which interest stood paid. This is exactly what the
learned Single Judge seeks to do vide the impugned
order dated 10.09.2010.
19. We are fortified in our view by the observations
in Sundarjas Kanyalal Bhatija and Ors. v. Collector,
Thane, Maharashtra and Ors.; (1989) 3 SCC 396
where it has been held that a binding decision of a
coordinate bench of the same court cannot be
ignored. The exercise of discretion can only be when
there is no declared principle to be found, no rule
and no authority and in case of disagreement in
views, the matter has to be referred to a larger
bench.
20. We, thus, conclude that the impugned order
dated 10.09.2010 is not sustainable and R-1 is liable
to pay amount as per the order passed earlier on
02.05.2008.
21. The result of the aforesaid is that EA
No.354/2009 stands allowed and the Execution
Petition No.74/2005 is liable to be proceeded with for
recovery of a sum of Rs.1,44,000/- by the appellant
against R-1. However, in case R-1 pays this amount
to the appellant within one month from today, the
occasion to further proceed with the execution
petition would not arise and the order dated
02.05.2008 would stand complied with and the
decree satisfied.
22. We, in the end, express our dismay and regret
at the way the two parties are continuing to litigate,
with litigation fatigue not having set in, even over a
period of 17 years. Having re-conciled their
differences, they continue to nurture ill-will towards
each other resulting in continuous pin pricks to each
other. The value of the asset is such that it really
made no difference to either of the parties keeping
in mind the amount involved in the present dispute,
yet these proceedings are continuing on account of
obdurate stand of the parties who seem to have
developed a hobby for litigation, wasting precious
judicial time.
23. The appeal is accordingly allowed leaving the
parties to bear their own costs.
SANJAY KISHAN KAUL, J.
OCTOBER 19, 2011 RAJIV SHAKDHER, J.
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